Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 01, 2020 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Entity Registrant Name | ATLANTIC CAPITAL BANCSHARES, INC. | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37615 | |
Entity Incorporation, State or Country Code | GA | |
Entity Tax Identification Number | 20-5728270 | |
Entity Address, Address Line One | 945 East Paces Ferry Road NE, Suite 1600 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30326 | |
City Area Code | 404 | |
Local Phone Number | 995-6050 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | ACBI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 21,605,292 | |
Entity Central Index Key | 0001461755 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 33,759 | $ 45,249 |
Interest-bearing deposits in banks | 33,038 | 421,079 |
Cash and cash equivalents | 66,797 | 466,328 |
Investment securities available for sale | 271,829 | 282,461 |
Investment securities held to maturity, net of allowance for credit losses of $13 at June 30, 2020 | 185,920 | 116,972 |
Other investments | 28,811 | 27,556 |
Loans held for sale | 1,153 | 370 |
Loans held for investment | 2,184,694 | 1,873,524 |
Less: Allowance for credit losses | (31,605) | (18,535) |
Loans held for investment, net | 2,153,089 | 1,854,989 |
Premises and equipment, net | 22,494 | 22,536 |
Bank owned life insurance | 67,127 | 66,421 |
Goodwill | 19,925 | 19,925 |
Other intangibles, net | 2,731 | 3,027 |
Other real estate owned | 779 | 278 |
Other assets | 69,967 | 49,516 |
Total assets | 2,890,622 | 2,910,379 |
Deposits: | ||
Noninterest-bearing demand | 883,662 | 824,646 |
Interest-bearing checking | 449,737 | 373,727 |
Savings | 583 | 1,219 |
Money market | 879,863 | 1,173,218 |
Time | 131,353 | 44,389 |
Brokered deposits | 62,433 | 81,847 |
Total deposits | 2,407,631 | 2,499,046 |
Federal funds purchased | 6,000 | |
Federal Home Loan Bank borrowings | 50,000 | |
Long-term debt | 49,958 | 49,873 |
Other liabilities | 41,053 | 34,965 |
Total liabilities | 2,554,642 | 2,583,884 |
SHAREHOLDERS' EQUITY | ||
Preferred Stock, no par value - 10,000,000 shares authorized; no shares issued and outstanding as of June 30, 2020 and December 31, 2019 | ||
Common stock, no par value - 100,000,000 shares authorized; 21,477,631 and 21,751,026 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | 224,520 | 230,265 |
Retained earnings | 95,570 | 91,669 |
Accumulated other comprehensive income (loss) | 15,890 | 4,561 |
Total shareholders' equity | 335,980 | 326,495 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,890,622 | $ 2,910,379 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Investment securities held to maturity, net of allowance for credit losses | $ 13 | |
Preferred stock par value | $ 0 | $ 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 par value | $ 0 | $ 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 21,477,631 | 21,751,026 |
Common stock outstanding (in shares) | 21,477,631 | 21,751,026 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
INTEREST INCOME | ||||
Loans, including fees | $ 20,496,000 | $ 23,554,000 | $ 42,922,000 | $ 46,306,000 |
Investment securities | 3,041,000 | 2,339,000 | 5,773,000 | 4,970,000 |
Interest and dividends on other interest-earning assets | 260,000 | 705,000 | 1,125,000 | 1,519,000 |
Total interest income | 23,797,000 | 26,598,000 | 49,820,000 | 52,795,000 |
INTEREST EXPENSE | ||||
Interest on deposits | 1,299,000 | 5,448,000 | 5,481,000 | 10,279,000 |
Interest on Federal Home Loan Bank advances | 38,000 | 270,000 | 38,000 | 270,000 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 6,000 | 168,000 | 38,000 | 286,000 |
Interest on long-term debt | 823,000 | 823,000 | 1,652,000 | 1,647,000 |
Total interest expense | 2,166,000 | 6,709,000 | 7,209,000 | 12,482,000 |
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES | 21,631,000 | 19,889,000 | 42,611,000 | 40,313,000 |
Provision for credit losses | 8,863,000 | 698,000 | 16,937,000 | 1,512,000 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 12,768,000 | 19,191,000 | 25,674,000 | 38,801,000 |
NONINTEREST INCOME | ||||
Service charges | 1,081,000 | 870,000 | 2,313,000 | 1,664,000 |
Gain on sales of securities | 654,000 | 654,000 | ||
Gain (loss) on sales of other assets | (10,000) | 5,000 | (13,000) | |
Derivatives income (loss) | (10,000) | (233,000) | 236,000 | (344,000) |
Bank owned life insurance | 367,000 | 389,000 | 729,000 | 749,000 |
SBA lending activities | 782,000 | 1,096,000 | 1,196,000 | 2,182,000 |
Other noninterest income | 123,000 | 175,000 | 286,000 | 385,000 |
Total noninterest income | 2,343,000 | 2,941,000 | 4,765,000 | 5,277,000 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 8,466,000 | 8,529,000 | 16,942,000 | 17,742,000 |
Occupancy | 883,000 | 689,000 | 1,677,000 | 1,328,000 |
Equipment and software | 763,000 | 753,000 | 1,542,000 | 1,492,000 |
Professional services | 792,000 | 792,000 | 1,497,000 | 1,567,000 |
Communications and data processing | 670,000 | 662,000 | 1,567,000 | 1,337,000 |
Marketing and business development | 79,000 | 233,000 | 232,000 | 459,000 |
Travel, meals and entertainment | 34,000 | 186,000 | 174,000 | 352,000 |
FDIC premiums | 175,000 | 175,000 | 175,000 | 410,000 |
Other noninterest expense | 1,042,000 | 1,235,000 | 1,975,000 | 2,362,000 |
Total noninterest expense | 12,904,000 | 13,254,000 | 25,781,000 | 27,049,000 |
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 2,207,000 | 8,878,000 | 4,658,000 | 17,029,000 |
Provision for income taxes | 358,000 | 1,869,000 | 685,000 | 3,580,000 |
NET INCOME FROM CONTINUING OPERATIONS | 1,849,000 | 7,009,000 | 3,973,000 | 13,449,000 |
Income from discontinued operations | 30,107,000 | 28,690,000 | ||
Provision for income taxes | 7,964,000 | 7,610,000 | ||
Net income from discontinued operations | 22,143,000 | 21,080,000 | ||
NET INCOME | $ 1,849,000 | $ 29,152,000 | $ 3,973,000 | $ 34,529,000 |
Net income per common share - basic | ||||
Net income per common share - continuing operations | $ 0.09 | $ 0.29 | $ 0.18 | $ 0.55 |
Net income per common share - discontinued operations | 0.93 | 0.87 | ||
Net income per common share - basic | 0.09 | 1.22 | 0.18 | 1.42 |
Net income per common share diluted | ||||
Net income per common share - continuing operations | 0.09 | 0.29 | 0.18 | 0.55 |
Net income per common share - discontinued operations | 0.92 | 0.86 | ||
Net income per common share - diluted | $ 0.09 | $ 1.21 | $ 0.18 | $ 1.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Net income | $ 1,849 | $ 29,152 | $ 3,973 | $ 34,529 |
Unrealized gains on available-for-sale securities: | ||||
Unrealized holding gains arising during the period, net of tax of $329, $1,524, $1,407 and $3,642, respectively | 1,002 | 4,566 | 4,319 | 10,920 |
Reclassification adjustment for losses (gains) included in net income net of tax of ($164) and ($164), respectively | (490) | (490) | ||
Unrealized gains on available-for-sale securities, net of tax | 1,002 | 4,076 | 4,319 | 10,430 |
Cash flow hedges: | ||||
Net unrealized derivative gains on cash flow hedges, net of tax of $178, $805, $2,291, and $1,153, respectively | 542 | 2,415 | 7,010 | 3,456 |
Changes from cash flow hedges | 542 | 2,415 | 7,010 | 3,456 |
Other comprehensive income, net of tax | 1,544 | 6,491 | 11,329 | 13,886 |
Comprehensive income | $ 3,393 | $ 35,643 | $ 15,302 | $ 48,415 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Comprehensive Income | ||||
Tax portion of unrealized holding gains arising during the period | $ 329 | $ 1,524 | $ 1,407 | $ 3,642 |
Tax portion of reclassification adjustment for losses (gains) included in net income | (164) | (164) | (164) | (164) |
Tax portion of net unrealized derivative gains on cash flow hedges | $ 178 | $ 805 | $ 2,291 | $ 1,153 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning balance at Dec. 31, 2018 | $ 291,771 | $ 42,187 | $ (10,305) | $ 323,653 |
Beginning balance (in shares) at Dec. 31, 2018 | 25,290,419 | |||
Comprehensive income: | ||||
Net income | 34,529 | 34,529 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 10,430 | 10,430 | ||
Change in unrealized gains (losses) on cash flow hedges | 3,456 | 3,456 | ||
Comprehensive income | 48,415 | |||
Net issuance of restricted stock (in shares) | 4,904 | |||
Issuance of common stock for option exercises | $ 471 | 471 | ||
Issuance of common stock for option exercises (in shares) | 40,980 | |||
Issuance of common stock for long-term incentive plan | $ 655 | 655 | ||
Issuance of common stock for long-term incentive plan (in shares) | 35,678 | |||
Restricted stock activity | $ 225 | 225 | ||
Stock-based compensation | 133 | 133 | ||
Performance share compensation | 154 | 154 | ||
Stock repurchases | $ (36,618) | (36,618) | ||
Stock repurchases (in shares) | (2,078,516) | |||
Ending balance at Jun. 30, 2019 | $ 256,791 | 76,343 | 3,581 | 336,715 |
Ending balance (in shares) at Jun. 30, 2019 | 23,293,465 | |||
Beginning balance at Mar. 31, 2019 | $ 276,346 | 47,191 | (2,910) | 320,627 |
Beginning balance (in shares) at Mar. 31, 2019 | 24,466,964 | |||
Comprehensive income: | ||||
Net income | 29,152 | 29,152 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 4,076 | 4,076 | ||
Change in unrealized gains (losses) on cash flow hedges | 2,415 | 2,415 | ||
Comprehensive income | 35,643 | |||
Net issuance of restricted stock (in shares) | (54,158) | |||
Issuance of common stock for option exercises | $ 26 | 26 | ||
Issuance of common stock for option exercises (in shares) | 1,880 | |||
Restricted stock activity | $ (149) | (149) | ||
Stock-based compensation | 52 | 52 | ||
Performance share compensation | 59 | 59 | ||
Stock repurchases | $ (19,543) | (19,543) | ||
Stock repurchases (in shares) | (1,121,221) | |||
Ending balance at Jun. 30, 2019 | $ 256,791 | 76,343 | 3,581 | 336,715 |
Ending balance (in shares) at Jun. 30, 2019 | 23,293,465 | |||
Comprehensive income: | ||||
Change in accounting principle | (373) | (373) | ||
Beginning balance at Dec. 31, 2019 | $ 230,265 | 91,669 | 4,561 | $ 326,495 |
Beginning balance (in shares) at Dec. 31, 2019 | 21,751,026 | 21,751,026 | ||
Comprehensive income: | ||||
Net income | 3,973 | $ 3,973 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 4,319 | 4,319 | ||
Change in unrealized gains (losses) on cash flow hedges | 7,010 | 7,010 | ||
Comprehensive income | 15,302 | |||
Net issuance of restricted stock (in shares) | 59,258 | |||
Issuance of common stock for option exercises | $ 660 | $ 660 | ||
Issuance of common stock for option exercises (in shares) | 60,940 | 60,940 | ||
Issuance of common stock for long-term incentive plan | $ 444 | $ 444 | ||
Issuance of common stock for long-term incentive plan (in shares) | 25,265 | |||
Restricted stock activity | $ 497 | 497 | ||
Stock-based compensation | 35 | 35 | ||
Performance share compensation | 30 | 30 | ||
Stock repurchases | $ (7,411) | $ (7,411) | ||
Stock repurchases (in shares) | (418,858) | (418,858) | ||
Ending balance at Jun. 30, 2020 | $ 224,520 | 95,570 | 15,890 | $ 335,980 |
Ending balance (in shares) at Jun. 30, 2020 | 21,477,631 | 21,477,631 | ||
Beginning balance at Mar. 31, 2020 | $ 224,233 | 93,721 | 14,346 | $ 332,300 |
Beginning balance (in shares) at Mar. 31, 2020 | 21,479,986 | |||
Comprehensive income: | ||||
Net income | 1,849 | 1,849 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 1,002 | 1,002 | ||
Change in unrealized gains (losses) on cash flow hedges | 542 | 542 | ||
Comprehensive income | 3,393 | |||
Net issuance of restricted stock (in shares) | (2,355) | |||
Restricted stock activity | $ 201 | 201 | ||
Stock-based compensation | 18 | 18 | ||
Performance share compensation | 68 | 68 | ||
Ending balance at Jun. 30, 2020 | $ 224,520 | 95,570 | $ 15,890 | $ 335,980 |
Ending balance (in shares) at Jun. 30, 2020 | 21,477,631 | 21,477,631 | ||
Comprehensive income: | ||||
Change in accounting principle | $ (72) | $ (72) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
OPERATING ACTIVITIES | ||
Net income from continuing operations | $ 3,973 | $ 13,449 |
Net income from discontinued operations, net of tax | 21,080 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for credit losses | 16,937 | 1,512 |
Depreciation, amortization, and accretion | 2,486 | 1,721 |
Amortization of operating lease right-of-use assets | 1,105 | 1,216 |
Amortization of restricted stock and performance share compensation | 521 | 379 |
Stock option compensation | 35 | 133 |
(Gain) loss on sales of available-for-sale securities | (654) | |
Loss on disposition of premises and equipment, net | 13 | |
Net write downs and gains on sales of other real estate owned | (5) | |
Small Business Investment Company (SBIC) impairment | 26 | |
Net increase in cash value of bank owned life insurance | (706) | (725) |
Net (gains) on sale of branches | (34,475) | |
Origination of servicing assets | (302) | (625) |
Proceeds from sales of SBA loans | 17,938 | 35,711 |
Net (gains) on sale of SBA loans | (840) | (1,850) |
Changes in operating assets and liabilities - | ||
Net change in loans held for sale | (783) | 5,889 |
Net (increase) decrease in other assets | (15,994) | 5,440 |
Net decrease in accrued expenses and other liabilities | 3,950 | (13,730) |
Net cash provided by operating activities | 28,315 | 34,510 |
Activity in securities available-for-sale: | ||
Prepayments | 14,760 | 16,715 |
Maturities and calls | 1,035 | 280 |
Sales | 54,938 | |
Purchases | (4,432) | |
Activity in securities held to maturity: | ||
Purchases | (69,141) | |
Net change in loans held for investment | (330,214) | (96,802) |
Net change in assets held for sale - discontinued operations | (11,789) | |
(Purchases) proceeds of Federal Home Loan Bank stock, net | (3,543) | |
(Purchases) proceeds of Federal Reserve Bank stock, net | (33) | |
Proceeds from sales of other real estate owned | 88 | |
Net cash received (paid) for branch divestiture | (166,755) | |
(Purchases) of premises and equipment, net | (2,208) | (773) |
Net cash (used in) investing activities | (385,680) | (212,194) |
FINANCING ACTIVITIES | ||
Net change in deposits | (91,415) | (100,983) |
Net change in liabilities to be assumed - discontinued operations | 6,560 | |
Net change in fed funds purchased | 6,000 | 35,000 |
Proceeds from Federal Home Loan Bank advances | 275,000 | 186,000 |
Repayments of Federal Home Loan Bank advances | (225,000) | (104,000) |
Proceeds from exercise of stock options | 660 | 471 |
Repurchase of common stock | (7,411) | (36,618) |
Net cash (used in) financing activities | (42,166) | (13,570) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (399,531) | (191,254) |
CASH AND CASH EQUIVALENTS - beginning of period | 466,328 | 268,392 |
CASH AND CASH EQUIVALENTS - end of period | 66,797 | 77,138 |
SUPPLEMENTAL SCHEDULE OF CASH FLOWS | ||
Interest paid | 6,453 | 14,237 |
Income taxes paid | $ 344 | $ 95 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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. Certain prior period amounts have been reclassified to conform to the current year 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. Adoption of New Accounting Standard On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a decrease to retained earnings of $72,000, net of tax, as of January 1, 2020 for the cumulative effect of adopting ASC 326. The transition adjustment includes a $1.3 million increase related to the allowance for credit losses on unfunded commitments mostly offset by an $854,000 decrease related to the allowance for credit losses on loans as well as a $20,000 increase related to held-to-maturity securities. The Company finalized the adoption as of January 1, 2020 as detailed in the following table January 1, 2020 As Reported Impact of Pre-ASC 326 Under ASC 326 (in thousands) Adoption ASC 326 Adoption (1) Assets: Allowance for credit losses on debt securities held-to-maturity U.S. states and political divisions - tax-exempt $ - $ 13 $ 13 U.S. states and political divisions - taxable - 7 7 Total allowance for credit losses on debt securities held-to-maturity - 20 20 Allowance for credit losses on loans Loans Commercial and industrial 9,015 8,578 (437) Commercial real estate 7,504 6,868 (636) Construction and land 1,685 1,819 134 Residential mortgages 81 108 27 Home equity 63 121 58 Consumer 42 101 59 Other 145 78 (67) Mortgage warehouse - 8 8 Total allowance for credit losses on loans 18,535 17,681 (854) Liabilities: Allowance for credit losses on unfunded commitments 892 2,167 1,275 Total allowance for credit losses $ 19,427 $ 19,868 $ 441 (1) he adoption of CECL resulted in a reduction of retained earnings totaling $72,000 , net of tax. Allowance for Credit Losses on Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity securities by individual security. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers credit ratings and historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The held-to-maturity portfolio consists entirely of municipal securities. Securities are generally rated A or higher. Securities are analyzed individually to establish a CECL mark. Allowance for Credit Losses on Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, management first assesses whether it intends to sell, or is more likely than not be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, Atlantic Capital evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (“OCI”). Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is not included in the estimate of credit losses. Allowance for Credit Losses on Loans The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. The Company may also account for expected recoveries should information of an anticipated recovery become available. In the case of actual or expected recoveries, amounts may not exceed the aggregate of amounts previously charged off. Management utilizes relevant available information, from internal and external sources, relating to past events, current conditions, historical loss experience, and reasonable and supportable forecasts. The lookback period in the analysis includes historical data from June 2015 to present. Adjustments to historical loss information are made when management determines historical data are not likely reflective of the current portfolio such as limited data sets or lack of default or loss history. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Accrued interest receivable was excluded from the estimate of credit losses for loans. Collective Assessment The allowance for credit losses on loans is measured on a collective cohort basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call report code and then risk grade grouping. Risk grade is grouped within each call code by pass, special mention, substandard, and doubtful. Other loan types are separated into their own cohorts due to specific risk characteristics for that pool of loans. Examples include CD-secured fintech loans, Small Business Administration (“SBA”) purchased loans, PPP loans and TriNet loans. The Company has elected the discounted cash flows (“DCF”) methodology with probability of default (“PD”) and loss given default (“LGD”) for all call code cohorts and TriNet. CD-secured fintech loans, PPP loans and SBA purchased loans are measured with zero risk due to cash collateral and full guaranty, respectively. The PD calculation looks at the historical loan portfolio at particular points in time (each month during the lookback period) to determine the probability that loans in a certain cohort will default over the next 12 month period. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. In cohorts where the Company’s historical data are insufficient due to less than 20 loans on average in the pool or zero defaults, management uses index PDs in place of the Company’s historical PDs. Additionally, management reviews all other cohorts to determine if index PDs should be used outside of these criteria. The LGD calculation looks at actual losses (net charge-offs) experienced over the entire lookback period for each cohort of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. All defaults (non-accrual, charge-off, or greater than 90 days past due) occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event (i.e. nonaccrual or charge-off). Due to very limited charge-off history, management uses index LGDs in place of the Company’s historical LGDs. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the allowance for credit losses on loans. The calculation includes a 12-month PD forecast based on the Company’s regression model comparing peer nonperforming loan ratios to the national unemployment rate and the most recently published Wall Street Journal survey of economists’ forecast. After the forecast period, PD rates revert on a straight-line basis to long-term average rates over a 12-month period. The Company recognizes that all significant factors that affect the collectability of the loan portfolio must be considered to determine the estimated credit losses as of the evaluation date. Furthermore, the DCF methodology, in and of itself and even when selectively adjusted by comparison to market and peer data, does not provide a sufficient basis to determine the estimated credit losses. The Company adjusts the modeled historical losses by a Qualitative and Environmental factor to incorporate all significant risks to form a sufficient basis to estimate the credit losses. Individual Assessment Loans classified as Nonaccrual, Troubled Debt Restructuring (“TDR”), or Reasonably Expected TDR will be reviewed quarterly for potential individual assessment. Any loan classified as a Nonaccrual or TDR that is not determined to need individual assessment will be evaluated collectively within its respective cohort. All Reasonably Expected TDR loans will be evaluated individually to account for expected modifications in loan terms. Where the primary and/or expected source of repayment of a specific loan is believed to be the future liquidation of available collateral, impairment will generally be measured based upon expected future collateral proceeds, net of disposition expenses including sales commissions as well as other costs potentially necessary to sell the asset(s) (i.e. past due taxes, liens, etc.) Estimates of future collateral proceeds will be based upon available appraisals, reference to recent valuations of comparable properties, use of consultants or other professionals with relevant market and/or property-specific knowledge, and any other sources of information believed appropriate by management under the specific circumstances. When appraisals are ordered to support the impairment analysis of an impaired loan, the appraisal is reviewed by Atlantic Capital’s internal appraisal reviewer or a qualified third party reviewer. Where the primary and/or expected source of repayment of a specific loan is believed to be the receipt of principal and interest payments from the borrower and/or the refinancing of the loan by another creditor, impairment will generally be measured based upon the present value of expected proceeds discounted at the contractual interest rate. Expected refinancing proceeds may be estimated from review of term sheets actually received by the borrower from other creditors and/or from the Company’s knowledge of terms generally available from other banks, asset-based lenders, factoring companies and institutional lenders (Government Sponsored Entities, insurance companies, etc.) Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayment assumptions will be determined by analysis of historical behavior by loan cohort. Troubled Debt Restructurings A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. Any loan that is being considered for modification and expected to result in a TDR is identified as a Reasonably Expected TDR. Reasonably Expected TDRs are assessed in the CECL calculation utilizing their expected modified terms. The allowance for credit losses on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows when a rate modification has occurred. Allowance for Credit Losses on Unfunded Commitments Atlantic Capital estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Atlantic Capital. The allowance for credit losses on unfunded commitments is adjusted through a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate utilizes the same factors and assumptions as the allowance for credit losses on loans and is applied at the same collective cohort level. |
Accounting Standards Updates an
Accounting Standards Updates and Recently Adopted Standards | 6 Months Ended |
Jun. 30, 2020 | |
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 March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, “ Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the discontinuance of London Interbank Offered Rate (“LIBOR”). ASU 2020-04 is effective as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the impact that the discontinuance of LIBOR will have on its existing contracts and consolidated financial statements. 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 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 did not elect the fair value option, and therefore, ASU 2019-05 did not impact the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “F air 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 did not have a material effect on the Company’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 was effective for the Company on January 1, 2020. The new guidance did not 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 was effective for public companies for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities 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 and this totaled $72,000 , net of tax. For more information, refer to Note 1 of the Consolidated Financial Statements. Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Finally, it clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company is evaluating this ASU to determine any potential impact to 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. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jun. 30, 2020 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | NOTE 3 – ACQUISITIONS AND DIVESTITURES Discontinued Operations On April 5, 2019, the Bank completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches and the mortgage business (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 six months ended June 30, 2019 are included in discontinued operations. The following table presents results of the discontinued operations for the three and six months ended June 30, 2019: Components of Net Income from Discontinued Operations For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2019 June 30, 2019 Net interest income (loss) $ (39) $ 3,086 Service charges 46 527 Mortgage income — 288 Gain on sale of branches 34,475 34,475 Other income (22) (1) Total noninterest income 34,499 35,289 Salaries and employee benefits 330 2,757 Occupancy 71 410 Equipment and software 8 131 Amortization of intangibles — 247 Communications and data processing 197 586 Divestiture expense 3,646 5,095 Other noninterest expense 101 459 Total noninterest expense 4,353 9,685 Net income before provision for income taxes 30,107 28,690 Provision for income taxes 7,964 7,610 Net income from discontinued operations $ 22,143 $ 21,080 There were no assets or liabilities related to discontinued operations on the Consolidated Balance Sheets as of June 30, 2020 and December 31, 2019. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | NOTE 4 – BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements 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 in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements at June 30, 2020 and December 31, 2019. 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 June 30, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 Total $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 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 $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Total $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 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 $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Securities | |
Securities | NOTE 5 – SECURITIES The following table presents the amortized cost, fair value, and allowance for credit losses on securities available-for-sale and held-to-maturity at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) June 30, 2020 Available-For-Sale U.S. states and political divisions $ 80,744 $ 2,411 $ (13) $ 83,142 Trust preferred securities 4,821 — (446) 4,375 Corporate debt securities 19,541 294 (152) 19,683 Residential mortgage-backed securities 157,813 6,832 (16) 164,629 Total available-for-sale 262,919 9,537 (627) 271,829 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 185,933 8,795 (66) 194,662 (13) 185,920 Total held-to-maturity 185,933 8,795 (66) 194,662 (13) 185,920 Total securities $ 448,852 $ 18,332 $ (693) $ 466,491 Gross Gross December 31, 2019 Amortized Unrealized Unrealized Available-For-Sale Cost Gains Losses Fair Value U.S. states and political divisions $ 81,865 $ 863 $ (243) $ 82,485 Trust preferred securities 4,808 — (120) 4,688 Corporate debt securities 19,557 363 — 19,920 Residential mortgage-backed securities 173,047 2,797 (476) 175,368 Total available-for-sale 279,277 4,023 (839) 282,461 Held-to-Maturity U.S. states and political divisions 116,972 104 (1,785) 115,291 Total held-to-maturity 116,972 104 (1,785) 115,291 Total securities $ 396,249 $ 4,127 $ (2,624) $ 397,752 The following table presents the activity in the allowance for credit losses on securities held-to-maturity by major security type for the three and six months ended June 30, 2020. For the Three Months Ended June 30, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ 10 $ 4 $ 14 Provision for credit losses (1) — (1) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Six Months Ended June 30, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ — $ — $ — Impact of adopting ASU 2016-13 13 7 20 Provision for credit losses (4) (3) (7) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 Management measures expected credit losses on held-to-maturity debt securities on an individual basis. Accrued interest receivable on held-to-maturity debt securities totaled $2.0 million at June 30, 2020 and $796,000 at December 31, 2019, and is recorded in Other Assets on the Consolidated Balance Sheets and is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on available-for-sale debt securities totaled $1.1 million at June 30, 2020, and is recorded in Other Assets on the Consolidated Balance Sheets and is not included in the estimate of credit losses. Atlantic Capital monitors the credit quality of debt securities held-to-maturity quarterly through the use of credit rating, material event notices, and changes in market value. The following table summarizes the amortized cost of debt securities held-to-maturity at June 30, 2020, aggregated by credit quality indicator. Held-to-Maturity U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total June 30, 2020 (in thousands) Aa1 $ 32,321 $ 7,748 $ 40,069 Aa2 32,173 20,871 53,044 Aa3 19,452 4,047 23,499 Aaa 48,550 20,771 69,321 Total $ 132,496 $ 53,437 $ 185,933 As of June 30, 2020, there were no debt The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at June 30, 2020. 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) Within 1 year $ 6,030 $ 6,182 $ — $ — Over 1 year through 5 years 4,536 4,712 — — 5 years to 10 years 36,260 36,564 318 319 Over 10 years 58,280 59,742 185,615 194,343 105,106 107,200 185,933 194,662 Residential mortgage-backed securities 157,813 164,629 — — Total $ 262,919 $ 271,829 $ 185,933 $ 194,662 The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of June 30, 2020 and December 31, 2019. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2020 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 1,977 $ (13) $ — $ — $ 1,977 $ (13) Trust preferred securities — — 4,375 (446) 4,375 (446) Corporate debt securities 9,848 (152) — — 9,848 (152) Residential mortgage-backed securities — — 1,972 (16) 1,972 (16) Total available-for-sale 11,825 (165) 6,347 (462) 18,172 (627) Held-to-Maturity U.S. states and political divisions 16,333 (66) — — 16,333 (66) Total held-to-maturity 16,333 (66) — — 16,333 (66) Total securities $ 28,158 $ (231) $ 6,347 $ (462) $ 34,505 $ (693) December 31, 2019 Available-for-Sale U.S. states and political divisions $ 20,019 $ (190) $ 4,090 $ (53) $ 24,109 $ (243) Trust preferred securities — — 4,687 (120) 4,687 (120) Residential mortgage-backed securities 10,751 (78) 30,292 (398) 41,043 (476) Total available-for-sale 30,770 (268) 39,069 (571) 69,839 (839) Held-to-Maturity U.S. states and political divisions 96,854 (1,785) — — 96,854 (1,785) Total held-to-maturity 96,854 (1,785) — — 96,854 (1,785) Total securities $ 127,624 $ (2,053) $ 39,069 $ (571) $ 166,693 $ (2,624) At June 30, 2020, there were six available-for-sale securities and eight held-to-maturity securities that were in an unrealized loss position. At December 31, 2019, there were 77 available-for-sale securities and 35 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 June 30, 2020 and December 31, 2019 were attributable to changes in market interest rates. No credit impairment was recorded for those securities in an unrealized loss position for the three and six months of 2020 or 2019. 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 six months ended June 30, 2020 and 2019. Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Proceeds from sales $ — $ 54,938 $ — $ 54,938 Gross realized gains — $ 1,122 $ — $ 1,122 Gross realized losses — (468) — (468) Net gains on sales of securities $ — $ 654 $ — $ 654 Investment securities with a carrying value of $31.2 million and $32.3 million were pledged to secure public funds and other borrowings at June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020 and December 31, 2019, Atlantic Capital had investments with a carrying value of $5.1 million and $4.7 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 first six months of 2020, the Company did not record any impairment on these SBICs. For the same period in 2019, the Company recorded impairment in the amount of $26,000 on these SBICs. The impairment 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 | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 6 – LOANS AND ALLOWANCE FOR CREDIT LOSSES The composition of the loan portfolio as of June 30, 2020 and December 31, 2019, is summarized below. June 30, 2020 December 31, 2019 (in thousands) Loans held for sale Loans held for sale 1,153 370 Total loans held for sale $ 1,153 $ 370 Loans held for investment Commercial loans: Commercial and industrial $ 973,818 $ 705,115 Commercial real estate 900,321 916,328 Construction and land 128,991 127,540 Mortgage warehouse participations — 13,941 Total commercial loans 2,003,130 1,762,924 Residential: Residential mortgages 32,327 31,315 Home equity 23,689 25,002 Total residential loans 56,016 56,317 Consumer 113,149 37,765 Other 22,160 19,552 Total loans 2,194,455 1,876,558 Less net deferred fees and other unearned income (9,761) (3,034) Less allowance for credit losses on loans (31,605) (18,535) Loans held for investment, net $ 2,153,089 $ 1,854,989 At June 30, 2020 and December 31, 2019, loans with a carrying value of $358.9 million and $729.6 million, respectively, were pledged as collateral to secure Federal Home Loan Bank of Atlanta (“FHLB”) advances and the Federal Reserve discount window. The fair value adjustments on purchased loans outside the scope of ASC 310-30 are accreted to interest income over the life of the loans. At June 30, 2020, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310-30 was $313,000 compared to $279,000 at December 31, 2019. The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. It is comprised of specific allowance for individually assessed loans and a general allowance for loans that are collectively assessed in pools with similar risk characteristics. The allowance is regularly evaluated to maintain a level adequate to absorb expected losses inherent in the loan portfolio. Refer to Note 1, “Accounting Policies and Basis of Presentation” to the Consolidated Financial Statements for additional information. Accrued interest receivable totaled $9.3 million at June 30, 2020, was reported in Other Assets on the Consolidated Balance Sheets and was excluded from the estimate of credit losses for loans. The following table presents the balance and activity in the allowance for credit losses on loans by portfolio segment for the three months ended June 30, 2020 and 2019. For the Three Months Ended June 30, 2020 2019 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance, prior to adoption of ASC 326 $ 23,830 $ 415 $ 651 $ 24,896 $ 17,397 $ 447 $ 263 $ 18,107 Provision for loan losses 8,482 138 (398) 8,222 1,055 (283) (74) 698 Loans charged-off (1,479) (36) — (1,515) (635) — — (635) Recoveries 1 — 1 2 — — 16 16 Total ending allowance balance $ 30,834 $ 517 $ 254 $ 31,605 $ 17,817 $ 164 $ 205 $ 18,186 For the Six Months Ended June 30, 2020 2019 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance, prior to adoption of ASC 326 $ 18,203 $ 145 $ 187 $ 18,535 $ 17,322 $ 292 $ 237 $ 17,851 Impact of adopting ASC 326 (947) 8 85 (854) — — — — Provision for loan losses 15,134 524 (27) 15,631 1,662 (127) (23) 1,512 Loans charged-off (1,575) (161) — (1,736) (1,184) (9) (37) (1,230) Recoveries 19 1 9 29 17 8 28 53 Total ending allowance balance $ 30,834 $ 517 $ 254 $ 31,605 $ 17,817 $ 164 $ 205 $ 18,186 A charge-off is recognized when the amount of the loss is quantifiable and timing is known. A collateral based loan charge-off is measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. Atlantic Capital’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal. Troubled Debt Restructurings TDRs are made to provide relief to customers experiencing liquidity challenges or other circumstances that could affect their ability to meet their debt obligations. Typical modifications include short-term deferral of interest or modification of payment terms. Nonperforming TDRs do not accrue interest and are included as nonperforming assets (“NPAs”) within nonaccrual loans (“NPLs”). TDRs which are accruing interest based on the restructured terms are considered performing. As of June 30, 2020 and December 31, 2019, the Company had a recorded investment in TDRs of $14.6 million and $13.2 million, respectively. The Company allocated $793,000 in allowance for those loans at June 30, 2020 and had no commitments to lend additional funds on loans modified as TDRs as of June 30, 2020. The Company had commitments to lend additional funds of $4,000 on loans modified as TDRs as of December 31, 2019. Loans, by portfolio class, modified as TDRs during the three and six months ended June 30, 2020 and 2019 are as follows: Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Three Months Ended June 30, 2020 Commercial and industrial — $ — $ — Total — $ — $ — Six Months Ended June 30, 2020 Commercial and industrial 1 $ 67 $ 67 Commercial real estate 1 1,945 1,945 Total 2 $ 2,012 $ 2,012 Three Months Ended June 30, 2019 Commercial and industrial 3 $ 382 $ 382 Total 3 $ 382 $ 382 Six Months Ended June 30, 2019 Commercial and industrial 6 $ 1,235 $ 1,235 Commercial real estate 2 926 926 Total 8 $ 2,161 $ 2,161 The Company did not forgive any principal on TDRs during the three and six months ended June 30, 2020 and 2019. During the three and six months ended June 30, 2020, two commercial loans totaling $320,000, which were previously modified as TDRs, had a payment default within twelve months following the modification. These TDRs that subsequently defaulted decreased the allowance for credit losses by $20,000 due to a paydown and did not result in any charge-offs during the three and six months ended June 30, 2020. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. Section 4013 “Temporary Relief From Troubled Debt Restructurings,” of the Coronavirus Aid, Relief, and Economic Security Act, passed by Congress and signed into law on March 27, 2020, allows financial institutions the option to temporarily suspend certain requirements under U.S. GAAP related to TDRs for a limited period of time during the COVID-19 pandemic. On April 7, 2020, the Federal Financial Institutions Examination Council provided additional guidance in its Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus (Revised). This guidance received concurrence from the FASB and clarified that loan modifications made under the following criteria are generally not considered TDRs if: ● the modification is in response to the National Emergency; ● the borrower was current on payments at the time the modification program is implemented; and ● the modification is short-term (e.g., six months). 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 (Fair Isaac Corporation (FICO) scores), rating agency information, loan-to-value ratios, collateral, collection experience, and other internal metrics. The likelihood of default of a credit transaction is graded in the Obligor Rating and is determined through credit analysis. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include loans with commitments less than $1 million, well-collateralized term loans and loans to individuals with limited exposure or complexity. Atlantic Capital uses the following definitions for risk ratings: Pass: Special Mention: Substandard: Doubtful: As of June 30, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Total (in thousands) June 30, 2020 Commercial - commercial and industrial: Risk rating Pass $ 322,442 $ 160,555 $ 112,710 $ 50,353 $ 38,884 $ 18,496 $ 188,250 $ 891,690 Special mention — 5,405 23,277 1,519 — 349 30,546 61,096 Substandard — 1,929 4,943 2,214 1,059 6,505 4,344 20,994 Doubtful — 342 — — — (304) — 38 Total commercial - commercial and industrial $ 322,442 $ 168,231 $ 140,930 $ 54,086 $ 39,943 $ 25,046 $ 223,140 $ 973,818 Commercial - commercial real estate: Risk rating Pass $ 48,120 $ 169,996 $ 141,651 $ 106,354 $ 139,914 $ 228,636 $ 8,977 $ 843,648 Special mention — 2,879 5,521 1,099 10,533 4,221 — 24,253 Substandard — 11,532 1,591 3,003 — 16,244 50 32,420 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 48,120 $ 184,407 $ 148,763 $ 110,456 $ 150,447 $ 249,101 $ 9,027 $ 900,321 Commercial - construction and land: Risk rating Pass $ 34,958 $ 52,732 $ 24,113 $ — $ 4,407 $ 1,982 $ 1,845 $ 120,037 Special mention — 8,954 — — — — — 8,954 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 34,958 $ 61,686 $ 24,113 $ — $ 4,407 $ 1,982 $ 1,845 $ 128,991 Residential - mortgages: Risk rating Pass $ 2,972 $ 3,241 $ 15,687 $ 1,977 $ 5,256 $ 232 $ 227 $ 29,592 Special mention 697 — 862 768 — — — 2,327 Substandard — — 179 — 26 203 — 408 Doubtful — — — — — — — — Total residential - mortgage loans $ 3,669 $ 3,241 $ 16,728 $ 2,745 $ 5,282 $ 435 $ 227 $ 32,327 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 23,689 $ 23,689 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 23,689 $ 23,689 Consumer: Risk rating Pass $ 250 $ 2,283 $ 53 $ 64 $ 70 $ 106,865 $ 3,564 $ 113,149 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 250 $ 2,283 $ 53 $ 64 $ 70 $ 106,865 $ 3,564 $ 113,149 Consumer - other: Risk rating Pass $ — $ — $ 4,794 $ 2,112 $ 232 $ 784 $ 6,982 $ 14,904 Special mention — 6,798 — — — — — 6,798 Substandard — — — 458 — — — 458 Doubtful — — — — — — — — Total consumer - other loans $ — $ 6,798 $ 4,794 $ 2,570 $ 232 $ 784 $ 6,982 $ 22,160 Total: Pass $ 408,742 $ 388,807 $ 299,008 $ 160,860 $ 188,763 $ 356,995 $ 233,534 $ 2,036,709 Special Mention 697 24,036 29,660 3,386 10,533 4,570 30,546 103,428 Substandard — 13,461 6,713 5,675 1,085 22,952 4,394 54,280 Doubtful — 342 — — — (304) — 38 Total $ 409,439 $ 426,646 $ 335,381 $ 169,921 $ 200,381 $ 384,213 $ 268,474 $ 2,194,455 As of December 31, 2019, the risk category of loans by class of loans is as follows. Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2019 Commercial and industrial $ 648,895 $ 40,179 $ 10,051 $ 5,990 $ - $ 705,115 Commercial real estate 891,078 5,483 19,504 263 - 916,328 Construction and land 127,540 - - - - 127,540 Residential mortgages 30,941 - 119 151 104 31,315 Home equity 24,302 - - 700 - 25,002 Mortgage warehouse 13,941 - - - - 13,941 Consumer/Other 56,336 500 481 - - 57,317 Total Loans $ 1,793,033 $ 46,162 $ 30,155 $ 7,104 $ 104 $ 1,876,558 The following table presents the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of June 30, 2020: Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 3,177 $ 2,481 $ 5,658 $ — Commercial real estate 157 — 157 — Total commercial loans 3,334 2,481 5,815 — Residential mortgages 115 — 115 335 Total loans $ 3,449 $ 2,481 $ 5,930 $ 335 The gross additional interest income that would have been earned during the three and six months ended June 30, 2020 had performing TDRs performed in accordance with the original terms is immaterial. Atlantic Capital recognized interest income on nonaccrual loans of $51,000 and $82,000 during the three and six months ended June 30, 2020. During the three and six months ended June 30, 2019, Atlantic Capital recognized interest income on nonaccrual loans totaling $105,000 and $168,000, respectively. The following table presents the amortized cost basis of collateral dependent impaired loans by class of loans as of June 30, 2020: Real Business SBA Property Equipment Assets Guaranty-75% Total Commercial loans: Commercial and industrial $ 2,424 $ 544 $ 192 $ 1,476 $ 4,636 Commercial real estate 48 109 — — 157 Total commercial loans 2,472 653 192 1,476 4,793 Residential mortgages 115 — — — 115 Total loans $ 2,587 $ 653 $ 192 $ 1,476 $ 4,908 Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of June 30, 2020 and December 31, 2019 by class of loans. As of June 30, 2020 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 828 $ 284 $ — $ 5,658 $ 6,770 $ 967,048 $ 973,818 Commercial real estate — 364 — 157 521 899,800 900,321 Construction and land — — — — — 128,991 128,991 Residential mortgages 2,063 — 335 115 2,513 29,814 32,327 Home equity — — — — — 23,689 23,689 Consumer 2,453 923 — — 3,376 131,933 135,309 Total Loans $ 5,344 $ 1,571 $ 335 $ 5,930 $ 13,180 $ 2,181,275 $ 2,194,455 As of December 31, 2019 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 4,069 $ 30 $ — $ 5,990 $ 10,089 $ 695,026 $ 705,115 Commercial real estate 1,194 — 85 262 1,541 914,787 916,328 Construction and land — — — — — 127,540 127,540 Residential mortgages 707 — — 256 963 30,352 31,315 Home equity — — — 700 700 24,302 25,002 Mortgage warehouse — — — — — 13,941 13,941 Consumer 136 — — — 136 57,181 57,317 Total Loans $ 6,106 $ 30 $ 85 $ 7,208 $ 13,429 $ 1,863,129 $ 1,876,558 The following table presents loans purchased and/or sold during the three and six months ended June 30, 2020 by portfolio class: Three Months Ended June 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ - $ - $ - $ - SBA Sales 10,205 1,334 - 11,539 Total Loans $ 10,205 $ 1,334 $ — $ 11,539 Six Months Ended June 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ - $ - $ - $ - SBA Sales 16,169 1,492 277 17,938 Total Loans $ 16,169 $ 1,492 $ 277 $ 17,938 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 7 – GOODWILL AND INTANGIBLE ASSETS Atlantic Capital tests goodwill for impairment annually in the fourth quarter. In assessing the possibility that the Company's fair value has been reduced below its carrying amount due to the occurrence of events or circumstances between annual impairment testing dates, Atlantic Capital considers all available evidence, including (i) downward revisions to internal forecasts or decreases in market multiples (and the magnitude thereof), if any, and (ii) declines in market capitalization below book value (and the magnitude and duration of those declines), if any. Atlantic Capital considered the declining market conditions generated by the COVID-19 pandemic during the first six months of 2020 and performed an interim impairment test as of May 31, 2020, which incorporated a combination of income and market valuation approaches and indicated that no impairment existed surrounding goodwill. Atlantic Capital continued to assess events and circumstances through the balance sheet date and through the date of the filing of this Quarterly Report on Form 10-Q that could potentially indicate goodwill impairment including analyzing the impacts from the COVID-19 pandemic. The Company conducted its annual impairment testing as of October 1, 2019, utilizing a qualitative assessment. Based on these assessments, management concluded that the 2019 annual qualitative impairment assessment indicated that it is more likely than not that the estimated fair value exceeded the carrying value (including goodwill). Therefore, a step one quantitative analysis was not required. The following table presents activity for goodwill and other intangible assets: For the Three Months Ended June 30, For the Six Months Ended June 30, Goodwill Core Deposit Intangible Total Goodwill Core Deposit Intangible Total (in thousands) 2020 Balance, beginning of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 Amortization — — — — — — Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 2019 Balance, beginning of period $ 21,690 $ 1,158 $ 22,848 $ 21,690 $ 1,405 $ 23,095 Amortization — — — — (247) (247) Impairment, due to Branch Sale (1,765) (1,158) (2,923) (1,765) (1,158) (2,923) Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 On January 1, 2020, the Company adopted 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This guidance simplified goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined. Now, entities must compare the fair value of a reporting unit to its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value. |
Servicing Assets
Servicing Assets | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019, the balance of SBA loans sold and serviced by Atlantic Capital totaled $181.5 million and $185.5 million, respectively. Changes in the balance of servicing assets for the three and six months ended June 30, 2020 and 2019 are presented in the following table . Three Months Ended June 30, Six Months Ended June 30, SBA Loan Servicing Assets 2020 2019 2020 2019 (in thousands) (in thousands) Beginning carrying value, net $ 2,523 $ 2,677 $ 2,731 $ 2,539 Additions 197 327 302 625 Amortization (217) (278) (530) (438) Ending carrying value $ 2,503 $ 2,726 $ 2,503 $ 2,726 At June 30, 2020 and December 31, 2019, 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 June 30, 2020 December 31, 2019 (dollars in thousands) Fair value of retained servicing assets $ 2,654 $ 2,842 Weighted average life 3.29 years 3.77 years Prepayment speed: 17.49 % 14.87 % Decline in fair value due to a 10% adverse change $ (97) $ (150) Decline in fair value due to a 20% adverse change $ (202) $ (254) Weighted average discount rate 12.78 % 13.66 % Decline in fair value due to a 100 bps adverse change $ (39) $ (98) Decline in fair value due to a 200 bps adverse change $ (93) $ (156) 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 TriNet servicing rights are initially recorded at fair value. Subsequently, Atlantic Capital accounts for TriNet servicing rights using the amortization method and they are included in other intangibles, net. Changes in the balance of TriNet servicing assets for the three and six months ended June 30, 2020 and 2019 are presented in the following table. Three Months Ended June 30, Six Months Ended June 30, TriNet Servicing Assets 2020 2019 2020 2019 (in thousands) (in thousands) Beginning carrying value, net $ 262 $ 406 $ 296 $ 444 Amortization (34) (37) (68) (75) Ending carrying value $ 228 $ 369 $ 228 $ 369 At June 30, 2020 and December 31, 2019, 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 June 30, 2020 December 31, 2019 (dollars in thousands) Fair value of retained servicing assets $ 379 $ 414 Weighted average life 5.10 years 5.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (4) $ (5) Decline in fair value due to a 20% adverse change $ (8) $ (10) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (8) $ (9) Decline in fair value due to a 200 bps adverse change $ (15) $ (18) 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) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, 2020 June 30, 2020 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 $ 19,057 $ (4,711) $ 14,346 $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 1,331 (329) 1,002 5,726 (1,407) 4,319 Unrealized net gains (losses) on derivatives 720 (178) 542 9,301 (2,291) 7,010 Accumulated other comprehensive income (loss) end of period $ 21,108 $ (5,218) $ 15,890 $ 21,108 $ (5,218) $ 15,890 For the Three Months Ended For the Six Months Ended June 30, 2019 June 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 $ (3,882) $ 972 $ (2,910) $ (13,743) $ 3,438 $ (10,305) Unrealized net gains (losses) on investment securities available-for-sale 6,090 (1,524) 4,566 14,562 (3,642) 10,920 Reclassification adjustment for net realized losses on investment securities available-for-sale (654) 164 (490) (654) 164 (490) Unrealized net gains (losses) on derivatives 3,220 (805) 2,415 4,609 (1,153) 3,456 Accumulated other comprehensive income (loss) end of period $ 4,774 $ (1,193) $ 3,581 $ 4,774 $ (1,193) $ 3,581 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 and 2019. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands, except share and per share amounts) Net income from continuing operations $ 1,849 $ 7,009 $ 3,973 $ 13,449 Net income from discontinued operations — 22,143 — 21,080 Net income available to common shareholders $ 1,849 $ 29,152 $ 3,973 $ 34,529 Weighted average shares outstanding Basic (1) 21,472,462 23,888,381 21,580,855 24,369,106 Effect of dilutive securities: Stock options and performance share awards 62,578 152,425 107,857 158,286 Diluted 21,535,040 24,040,806 21,688,712 24,527,392 Net income per common share - basic Net income per common share - continuing operations $ 0.09 $ 0.29 $ 0.18 $ 0.55 Net income per common share - discontinued operations — 0.93 — 0.87 Net income per common share - basic $ 0.09 $ 1.22 $ 0.18 $ 1.42 Net income per common share - diluted Net income per common share - continuing operations $ 0.09 $ 0.29 $ 0.18 $ 0.55 Net income per common share - discontinued operations — 0.92 — 0.86 Net income per common share - diluted $ 0.09 $ 1.21 $ 0.18 $ 1.41 (1) Unvested restricted shares are participating securities and included in basic share calculations. Stock options outstanding of 109,446 at June 30, 2020 and 150 at June 30, 2019 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. Atlantic Capital had 21,477,631 shares of common stock issued and outstanding at June 30, 2020. At December 31, 2019, 21,751,026 shares of common stock were issued and outstanding The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. No dividends were paid by the Bank to Atlantic Capital during the three months ended June 30, 2020. For the six months ended June 30, 2020, the Bank paid dividends totaling $12.5 million. For the three and six months ended June 30, 2019, the Bank paid dividends totaling $26.5 million to Atlantic Capital. 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. During the first quarter of 2020, the Company completed the $85.0 million stock repurchase program authorized by the Board of Directors on November 14, 2018. On March 4, 2020, the Board of Directors authorized a new stock repurchase program pursuant to which the Company may purchase up to $25 million of its issued and outstanding common stock. The repurchase program commenced immediately with respect to $15 million of stock, and the remaining $10 million is subject to regulatory approval of a dividend from the Bank to Atlantic Capital. The timing and amounts of any repurchases will 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 will be adopted in accordance with Rule 10b-18 or Rule 10b5-1 under the Securities Exchange Act of 1934. Any repurchased shares will constitute authorized but unissued shares. During the first six months of 2020, the Company repurchased 418,858 shares totaling $7.4 million, of which 114,592 shares totaling $1.6 million were purchased under the new stock buyback program with the remaining shares purchased under the previous program. The Company paused repurchases in March 2020 as part of its holding company liquidity planning in response to the COVID-19 pandemic. |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives and Hedging | |
Derivatives and Hedging | NOTE 11 – DERIVATIVES AND HEDGING Risk Management Atlantic Capital’s objectives in using interest rate derivatives are to stabilize 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 June 30, 2020, 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 June 30, 2020 and December 31, 2019, Atlantic Capital had interest rate swaps designated as cash flow hedges with aggregate notional amounts of $125.0 million and $175.0 million, respectively. No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and six months ended June 30, 2020 and 2019. 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 $1.7 million 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 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 June 30, 2020 and December 31, 2019, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $71.7 million and $89.5 million, respectively. Atlantic Capital acquired a loan level hedging program, which 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 June 30, 2020 and December 31, 2019, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $146.5 million and $149.1 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. In accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At June 30, 2020 and December 31, 2019, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $13.9 million and $13.6 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 June 30, 2020 and December 31, 2019, Atlantic Capital had credit risk participation agreements with a notional amount of $6.7 million and $7.7 million, respectively. The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of June 30, 2020 and December 31, 2019: Derivatives designated as hedging instruments under ASC 815 June 30, 2020 December 31, 2019 (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 $ 12,790 $ 125,000 $ 3,578 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ 50,000 $ 8 Derivatives not designated as hedging instruments under ASC 815 June 30, 2020 December 31, 2019 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 35,861 $ 2,366 $ 44,763 $ 1,025 Zero premium collar Other assets 73,265 10,521 74,562 4,253 $ 109,126 $ 12,887 $ 119,325 $ 5,278 Dealer offsets to customer swap positions Other liabilities $ 35,861 $ 2,400 $ 44,763 $ 1,090 Dealer offset to zero premium collar Other liabilities 73,265 10,601 74,562 4,545 Credit risk participation Other liabilities 6,719 11 7,657 4 $ 115,845 $ 13,012 $ 126,982 $ 5,639 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 six months ended June 30, 2020 and 2019. 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest rate products Other income $ 12 $ (231) $ (242) $ (341) Other contracts Other income (2) (2) 6 (3) Total $ 10 $ (233) $ (236) $ (344) The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and six months ended June 30, 2020 and 2019: Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, Six Months Ended June 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (Effective Portion) (Effective Portion) (in thousands) 2020 2019 Location 2020 2019 2020 2019 Location 2020 2019 Interest rate swaps $ 3,669 $ 1,823 Interest income $ (510) $ (8) $ 9,268 $ 3,091 Interest income $ (652) $ (129) |
Other Borrowings and Long Term
Other Borrowings and Long Term Debt | 6 Months Ended |
Jun. 30, 2020 | |
Other Borrowings and Long Term Debt | |
Other Borrowings and Long Term Debt | NOTE 12 – OTHER BORROWINGS AND LONG TERM DEBT Federal Home Loan Bank borrowings as of June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Balance Interest Rate Balance Interest Rate (in thousands) FHLB short-term borrowings: Fixed rate advance maturing July 14, 2020 $ 50,000 0.27 % $ — — % Total $ 50,000 $ — Interest expense for FHLB borrowings totaled $38,000 for the three and six months ended June 30, 2020. Interest expense for FHLB borrowings for the three and six months ended June 30, 2019 was $270,000. At June 30, 2020, the Company had available line of credit commitments with the FHLB totaling $815.8 million, with $50.0 million outstanding FHLB advances. However, based on actual collateral pledged, $140.2 million was available. At June 30, 2020, the Company had an available line of credit based on the collateral available of $218.7 million with the Federal Reserve Bank of Atlanta (“FRB”). Interest expense on federal funds purchased for the three and six months ended June 30, 2020 totaled $6,000 and $38,000, respectively, and $168,000 and $286,000, for the three and six months ended June 30, 2019, respectively. On September 28, 2015, Atlantic Capital issued subordinated notes (the “Notes”) totaling $50.0 million in aggregate principal amount and callable at par on September 30, 2020. 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 and qualify as Tier 2 regulatory capital. Subordinated debt is summarized as follows: June 30, 2020 December 31, 2019 (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 42 127 Subordinated debt, net $ 49,958 $ 49,873 All subordinated debt outstanding at June 30, 2020 matures after more than five years. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
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, employees, and independent contractors of Atlantic Capital and its affiliates. The Compensation Committee has the authority to grant the following: an incentive or nonqualified option; a stock appreciation right (“SAR”), which includes a related SAR or a freestanding SAR; a restricted award (including a restricted stock award or a restricted stock unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; an other stock-based award; a cash bonus award; a dividend equivalent award; or any other award granted under the plan At June 30, 2020, approximately 3,111,000 additional awards could be granted under the plan. Through June 30, 2020, incentive stock options, nonqualified stock options, restricted stock awards, performance share awards, and other stock-based awards have been granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years . The Company accounts for stock options in accordance with FASB ASC 718, Stock Compensation , which requires the Company to recognize the costs of its employee stock option awards in its Consolidated Statements of Operations. According to ASC 718, the total cost of the Company’s share-based awards is equal to their grant date fair value and is recognized as expense on a straight-line basis over the vesting period of the awards. Total stock-based compensation expense recognized by the Company for the three and six months ended June 30, 2020 for stock option grants was $17,000 and $35,000 , respectively, and $52,000 and $133,000 for the three and six months ended June 30, 2019, respectively. Unrecognized stock-based compensation expense related to stock option grants at June 30, 2020 and 2019 was $24,000 and $95,000 , respectively. At June 30, 2020 and 2019, the weighted average period over which this unrecognized expense is expected to be recognized was 0.3 years and 1. years, respectively. The weighted average remaining contractual life of options outstanding at June 30, 2020 was 2.1 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 six months ended June 30, 2019. No stock options were granted/modified during the six months ended June 30, 2020. For the six months ended June 30, 2019 Risk‑free interest rate 2.27 % Expected term in years 1.73-1.82 Expected stock price volatility 26.8 % Dividend yield — % The following table represents stock option activity for the six months ended June 30, 2020: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2019 318,980 $ 11.47 Granted/modified (1) — — Exercised (60,940) 10.82 Forfeited (1) — — Expired (94) 102.12 Outstanding, June 30, 2020 257,946 $ 11.59 2.06 $ 284 Exercisable, June 30, 2020 247,946 $ 11.45 1.93 $ 284 (1) During the six months ended June 30, 2020, the Company did not modify any options. The total fair value of option shares vested for the six months ended June 30, 2020 and 2019 was $0 and $137,000 , respectively. In 2019 and 2020, the Company granted performance share awards under Atlantic Capital’s 2015 Stock Incentive Plan to members of executive management to evidence awards granted under the Long Term Incentive Plan. The Company also granted restricted stock awards to certain employees in 2019 and 2020 under the 2015 Stock Incentive Plan. 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 are 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 awards and performance share awards that are expected to vest is amortized into expense over the vesting period. Restricted stock awards may cliff vest over 1 - 3 years or vest on a pro-rata basis, generally over 3 years . The market value at the date of award is amortized by charges to compensation expense over the vesting period. Compensation expense related to restricted stock and performance shares for the three and six months ended June 30, 2020 was $632,000 and $1.0 million, respectively, and $216,000 and $707,000 for the three and six months ended June 30, 2019, respectively. Unrecognized compensation expense associated with restricted stock was $2.9 million as of June 30, 2020 and $2.4 million as of June 30, 2019. At June 30, 2020 and June 30, 2019, the weighted average period over which this unrecognized expense is to be recognized was 2.17 years and 2.17 years, respectively. During the three and six months ended June 30, 2020, there were 18,717 and 142,550 restricted stock and performance share awards granted at a weighted average grant price of $11.38 and $18.13 per share, respectively. During the three and six months ended June 30, 2019, there were 25,743 and 130,093 restricted stock and performance share awards granted at a weighted average grant price of $17.54 and $19.54 per share, respectively. The Company did not modify any options during the six months ended June 30, 2020. During the six months ended June 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 termination of service. The total incremental cost resulting from the modifications was $31,000 for the six months ended June 30, 2019. The following table represents restricted stock and performance share award activity for the six months ended June 30, 2020: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2019 292,877 $ 19.00 Granted/modified (1) 142,550 18.13 Vested (98,991) 17.60 Forfeited (5,661) 18.67 Outstanding, June 30, 2020 330,775 $ 19.05 (1) During the six months ended June 30, 2020, the Company did not modify any restricted stock awards. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
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 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 six months ended June 30, 2020 and 2019. 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 June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 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 $ — $ 83,142 $ — $ 83,142 Trust preferred securities — 4,375 — 4,375 Corporate debt securities — 19,683 — 19,683 Mortgage-backed securities — 164,629 — 164,629 Total securities available-for-sale $ — $ 271,829 $ — $ 271,829 Interest rate derivative assets $ — $ 25,677 $ — $ 25,677 Interest rate derivative liabilities $ — $ 13,012 $ — $ 13,012 Fair Value Measurements at December 31, 2019 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. states and political subdivisions $ — $ 82,485 $ — $ 82,485 Trust preferred securities — 4,688 — 4,688 Corporate debt securities — 19,920 — 19,920 Mortgage-backed securities — 175,368 — 175,368 Total securities available-for-sale $ — $ 282,461 $ — $ 282,461 Interest rate derivative assets $ — $ 8,856 $ — $ 8,856 Interest rate derivative liabilities $ — $ 5,647 $ — $ 5,647 For the six months ended June 30, 2020 and twelve months ended December 31, 2019, there was no 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 June 30, 2020 and December 31, 2019. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value June 30, 2020 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,680 $ 4,680 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,288 $ 4,288 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, Federal Reserve Bank stock, 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 June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 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 $ 33,759 $ 33,759 $ — $ — Interest-bearing deposits in banks 33,038 33,038 — — Total securities available-for-sale 271,829 — 271,829 — Total securities held-to-maturity 185,920 — 194,662 — FHLB stock 4,744 — — 4,744 Federal Reserve Bank stock 10,029 — — 10,029 Loans held for investment, net 2,184,694 — — 2,211,005 Derivative assets 25,677 — 25,677 — Financial liabilities: Deposits $ 2,407,631 $ — $ 2,373,838 $ — Federal funds purchased 6,000 6,000 — — Subordinated debt 49,958 — 50,153 — FHLB advances 50,000 — 50,004 — Derivative financial instruments 13,012 — 13,012 — Fair Value Measurements at December 31, 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 $ 45,249 $ 45,249 $ — $ — Interest-bearing deposits in banks 421,079 421,079 — — Total securities available-for-sale 282,461 — 282,461 — Total securities held-to-maturity 116,972 — 115,291 — FHLB stock 2,680 — — 2,680 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,873,524 — — 1,890,258 Loans held for sale 370 — 370 — Derivative assets 8,856 — 8,856 — Financial liabilities: Deposits $ 2,499,046 $ — $ 2,421,957 $ — Subordinated debt 49,873 — 50,081 — Derivative financial instruments 5,647 — 5,647 — |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019 was as follows: June 30, 2020 December 31, 2019 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 739,648 $ 735,905 Standby letters of credit 9,973 8,053 $ 749,621 $ 743,958 Minimum lease payments $ 18,993 $ 20,055 The Company also had commitments related to investments in SBICs totaling $2.0 million and $2.4 million at June 30, 2020 and December 31, 2019, 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 | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Revenue Recognition | NOTE 16 – REVENUE RECOGNITION 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 six months ended June 30, 2020 and 2019: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Deposit account analysis fees and charges $ 997 $ 676 $ 1,931 $ 1,222 ATM fees 16 (8) 36 39 NSF fees 7 8 25 22 Wire fees 15 102 148 212 Foreign exchange fees 43 92 169 165 Other 3 — 4 4 Total service charges - continuing operations 1,081 870 2,313 1,664 Service charges - discontinued operations — 46 — 527 Total service charges $ 1,081 $ 916 $ 2,313 $ 2,191 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. 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 June 30, 2020 and December 31, 2019, the Company did not have any significant contract balances. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
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) 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 June 30, 2020, operating lease ROU assets and liabilities were $10.8 million and $15.8 million, respectively, compared to $11.9 million and $16.9 million, respectively, as of December 31, 2019. 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. Rent expense for the three and six months ended June 30, 2020 was $598,000 and $1.2 million, respectively. For the three and six months ended June 30, 2019, rent expense was $473,000 and $1.2 million, respectively, which was included in occupancy expense in the Consolidated Statements of Income. The table below summarizes the Company’s net lease cost: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) Operating lease cost $ 592 $ 461 $ 1,186 $ 1,126 Short-term lease cost 6 12 15 26 Sublease income (92) (42) (182) (116) Net lease cost $ 506 $ 431 $ 1,019 $ 1,036 The tables below summarize other information related to the Company’s operating leases: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 565 $ 522 $ 1,125 $ 1,043 Right-of-use assets obtained in exchange for new finance lease liabilities — 716 — 15,207 As of June 30, 2020 2019 Weighted-average remaining lease term - operating leases 8.7 years 9.2 years Weighted-average discount rate - operating leases 3.04 % 3.30 % The table below summarizes the maturity of remaining lease liabilities: June 30, 2020 (in thousands) Twelve Months Ended: June 30, 2021 $ 2,027 June 30, 2022 2,351 June 30, 2023 2,244 June 30, 2024 1,995 March 31, 2025 1,893 Thereafter 8,483 Total future minimum lease payments 18,993 Less: Interest (3,146) Present value of net future minimum lease payments $ 15,847 |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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. Certain prior period amounts have been reclassified to conform to the current year 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. |
Adoption of New Accounting Standard | Adoption of New Accounting Standard On January 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance-sheet credit exposures. Results for reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a decrease to retained earnings of $72,000, net of tax, as of January 1, 2020 for the cumulative effect of adopting ASC 326. The transition adjustment includes a $1.3 million increase related to the allowance for credit losses on unfunded commitments mostly offset by an $854,000 decrease related to the allowance for credit losses on loans as well as a $20,000 increase related to held-to-maturity securities. The Company finalized the adoption as of January 1, 2020 as detailed in the following table January 1, 2020 As Reported Impact of Pre-ASC 326 Under ASC 326 (in thousands) Adoption ASC 326 Adoption (1) Assets: Allowance for credit losses on debt securities held-to-maturity U.S. states and political divisions - tax-exempt $ - $ 13 $ 13 U.S. states and political divisions - taxable - 7 7 Total allowance for credit losses on debt securities held-to-maturity - 20 20 Allowance for credit losses on loans Loans Commercial and industrial 9,015 8,578 (437) Commercial real estate 7,504 6,868 (636) Construction and land 1,685 1,819 134 Residential mortgages 81 108 27 Home equity 63 121 58 Consumer 42 101 59 Other 145 78 (67) Mortgage warehouse - 8 8 Total allowance for credit losses on loans 18,535 17,681 (854) Liabilities: Allowance for credit losses on unfunded commitments 892 2,167 1,275 Total allowance for credit losses $ 19,427 $ 19,868 $ 441 (1) he adoption of CECL resulted in a reduction of retained earnings totaling $72,000 , net of tax. |
Allowance for Credit Losses-Held-to-Maturity Securities | Allowance for Credit Losses on Held-to-Maturity Securities Management measures expected credit losses on held-to-maturity securities by individual security. Accrued interest receivable on held-to-maturity debt securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers credit ratings and historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The held-to-maturity portfolio consists entirely of municipal securities. Securities are generally rated A or higher. Securities are analyzed individually to establish a CECL mark. |
Allowance for Credit Losses on Available-for-Sale Securities | Allowance for Credit Losses on Available-for-Sale Securities For available-for-sale securities in an unrealized loss position, management first assesses whether it intends to sell, or is more likely than not be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, Atlantic Capital evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income (“OCI”). Changes in the allowance for credit losses are recorded as a provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is not included in the estimate of credit losses. |
Allowance for Credit Losses on Loans | Allowance for Credit Losses on Loans The allowance for credit losses on loans is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed and recoveries are credited to the allowance when received. The Company may also account for expected recoveries should information of an anticipated recovery become available. In the case of actual or expected recoveries, amounts may not exceed the aggregate of amounts previously charged off. Management utilizes relevant available information, from internal and external sources, relating to past events, current conditions, historical loss experience, and reasonable and supportable forecasts. The lookback period in the analysis includes historical data from June 2015 to present. Adjustments to historical loss information are made when management determines historical data are not likely reflective of the current portfolio such as limited data sets or lack of default or loss history. Management may selectively apply external market data to subjectively adjust the Company’s own loss history including index or peer data. Accrued interest receivable was excluded from the estimate of credit losses for loans. |
Collective Assessment | Collective Assessment The allowance for credit losses on loans is measured on a collective cohort basis when similar risk characteristics exist. Generally, collectively assessed loans are grouped by call report code and then risk grade grouping. Risk grade is grouped within each call code by pass, special mention, substandard, and doubtful. Other loan types are separated into their own cohorts due to specific risk characteristics for that pool of loans. Examples include CD-secured fintech loans, Small Business Administration (“SBA”) purchased loans, PPP loans and TriNet loans. The Company has elected the discounted cash flows (“DCF”) methodology with probability of default (“PD”) and loss given default (“LGD”) for all call code cohorts and TriNet. CD-secured fintech loans, PPP loans and SBA purchased loans are measured with zero risk due to cash collateral and full guaranty, respectively. The PD calculation looks at the historical loan portfolio at particular points in time (each month during the lookback period) to determine the probability that loans in a certain cohort will default over the next 12 month period. A default is defined as a loan that has moved to past due 90 days and greater, nonaccrual status, or experienced a charge-off during the period. In cohorts where the Company’s historical data are insufficient due to less than 20 loans on average in the pool or zero defaults, management uses index PDs in place of the Company’s historical PDs. Additionally, management reviews all other cohorts to determine if index PDs should be used outside of these criteria. The LGD calculation looks at actual losses (net charge-offs) experienced over the entire lookback period for each cohort of loans. The aggregate loss amount is divided by the exposure at default to determine an LGD rate. All defaults (non-accrual, charge-off, or greater than 90 days past due) occurring during the lookback period are included in the denominator, whether a loss occurred or not and exposure at default is determined by the loan balance immediately preceding the default event (i.e. nonaccrual or charge-off). Due to very limited charge-off history, management uses index LGDs in place of the Company’s historical LGDs. The Company utilizes reasonable and supportable forecasts of future economic conditions when estimating the allowance for credit losses on loans. The calculation includes a 12-month PD forecast based on the Company’s regression model comparing peer nonperforming loan ratios to the national unemployment rate and the most recently published Wall Street Journal survey of economists’ forecast. After the forecast period, PD rates revert on a straight-line basis to long-term average rates over a 12-month period. The Company recognizes that all significant factors that affect the collectability of the loan portfolio must be considered to determine the estimated credit losses as of the evaluation date. Furthermore, the DCF methodology, in and of itself and even when selectively adjusted by comparison to market and peer data, does not provide a sufficient basis to determine the estimated credit losses. The Company adjusts the modeled historical losses by a Qualitative and Environmental factor to incorporate all significant risks to form a sufficient basis to estimate the credit losses. |
Individual Assessment | Individual Assessment Loans classified as Nonaccrual, Troubled Debt Restructuring (“TDR”), or Reasonably Expected TDR will be reviewed quarterly for potential individual assessment. Any loan classified as a Nonaccrual or TDR that is not determined to need individual assessment will be evaluated collectively within its respective cohort. All Reasonably Expected TDR loans will be evaluated individually to account for expected modifications in loan terms. Where the primary and/or expected source of repayment of a specific loan is believed to be the future liquidation of available collateral, impairment will generally be measured based upon expected future collateral proceeds, net of disposition expenses including sales commissions as well as other costs potentially necessary to sell the asset(s) (i.e. past due taxes, liens, etc.) Estimates of future collateral proceeds will be based upon available appraisals, reference to recent valuations of comparable properties, use of consultants or other professionals with relevant market and/or property-specific knowledge, and any other sources of information believed appropriate by management under the specific circumstances. When appraisals are ordered to support the impairment analysis of an impaired loan, the appraisal is reviewed by Atlantic Capital’s internal appraisal reviewer or a qualified third party reviewer. Where the primary and/or expected source of repayment of a specific loan is believed to be the receipt of principal and interest payments from the borrower and/or the refinancing of the loan by another creditor, impairment will generally be measured based upon the present value of expected proceeds discounted at the contractual interest rate. Expected refinancing proceeds may be estimated from review of term sheets actually received by the borrower from other creditors and/or from the Company’s knowledge of terms generally available from other banks, asset-based lenders, factoring companies and institutional lenders (Government Sponsored Entities, insurance companies, etc.) |
Determining the Contractual Term | Determining the Contractual Term Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: management has a reasonable expectation at the reporting date that a TDR will be executed with an individual borrower or the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company. Prepayment assumptions will be determined by analysis of historical behavior by loan cohort. |
Troubled Debt Restructurings (TDRs) | Troubled Debt Restructurings A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR. Any loan that is being considered for modification and expected to result in a TDR is identified as a Reasonably Expected TDR. Reasonably Expected TDRs are assessed in the CECL calculation utilizing their expected modified terms. The allowance for credit losses on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows when a rate modification has occurred. |
Allowance for Credit Losses on Unfunded Commitments | Allowance for Credit Losses on Unfunded Commitments Atlantic Capital estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by Atlantic Capital. The allowance for credit losses on unfunded commitments is adjusted through a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate utilizes the same factors and assumptions as the allowance for credit losses on loans and is applied at the same collective cohort level. |
Accounting Standards Updates _2
Accounting Standards Updates and Recently Adopted Standards (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Standards Updates and Recently Adopted Standards | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The Company finalized the adoption as of January 1, 2020 as detailed in the following table January 1, 2020 As Reported Impact of Pre-ASC 326 Under ASC 326 (in thousands) Adoption ASC 326 Adoption (1) Assets: Allowance for credit losses on debt securities held-to-maturity U.S. states and political divisions - tax-exempt $ - $ 13 $ 13 U.S. states and political divisions - taxable - 7 7 Total allowance for credit losses on debt securities held-to-maturity - 20 20 Allowance for credit losses on loans Loans Commercial and industrial 9,015 8,578 (437) Commercial real estate 7,504 6,868 (636) Construction and land 1,685 1,819 134 Residential mortgages 81 108 27 Home equity 63 121 58 Consumer 42 101 59 Other 145 78 (67) Mortgage warehouse - 8 8 Total allowance for credit losses on loans 18,535 17,681 (854) Liabilities: Allowance for credit losses on unfunded commitments 892 2,167 1,275 Total allowance for credit losses $ 19,427 $ 19,868 $ 441 (1) he adoption of CECL resulted in a reduction of retained earnings totaling $72,000 , net of tax. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Acquisitions and Divestitures | |
Disposal Groups, Including Discontinued Operations | The following table presents results of the discontinued operations for the three and six months ended June 30, 2019: Components of Net Income from Discontinued Operations For the Three Months Ended For the Six Months Ended (in thousands) June 30, 2019 June 30, 2019 Net interest income (loss) $ (39) $ 3,086 Service charges 46 527 Mortgage income — 288 Gain on sale of branches 34,475 34,475 Other income (22) (1) Total noninterest income 34,499 35,289 Salaries and employee benefits 330 2,757 Occupancy 71 410 Equipment and software 8 131 Amortization of intangibles — 247 Communications and data processing 197 586 Divestiture expense 3,646 5,095 Other noninterest expense 101 459 Total noninterest expense 4,353 9,685 Net income before provision for income taxes 30,107 28,690 Provision for income taxes 7,964 7,610 Net income from discontinued operations $ 22,143 $ 21,080 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Offsetting | |
Offsetting Assets | The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements at June 30, 2020 and December 31, 2019. 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 June 30, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 Total $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 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 $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Total $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 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 $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — |
Offsetting Liabilities | The following table presents a summary of amounts outstanding in derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements at June 30, 2020 and December 31, 2019. 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 June 30, 2020 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 Total $ 25,677 $ — $ 25,677 $ — $ — $ 25,677 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 $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Total $ 13,012 $ — $ 13,012 $ (13,012) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 Total $ 8,856 $ — $ 8,856 $ — $ — $ 8,856 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 $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — Total $ 5,647 $ — $ 5,647 $ (5,647) $ — $ — |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Securities | |
Schedule of Securities Available-For-Sale and Held-to-Maturity Reconciliation | The following table presents the amortized cost, fair value, and allowance for credit losses on securities available-for-sale and held-to-maturity at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses: Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) June 30, 2020 Available-For-Sale U.S. states and political divisions $ 80,744 $ 2,411 $ (13) $ 83,142 Trust preferred securities 4,821 — (446) 4,375 Corporate debt securities 19,541 294 (152) 19,683 Residential mortgage-backed securities 157,813 6,832 (16) 164,629 Total available-for-sale 262,919 9,537 (627) 271,829 Gross Gross Allowance Net Amortized Unrecognized Unrecognized for Credit Carrying Cost Gains Losses Fair Value Losses Value Held-to-Maturity U.S. states and political divisions 185,933 8,795 (66) 194,662 (13) 185,920 Total held-to-maturity 185,933 8,795 (66) 194,662 (13) 185,920 Total securities $ 448,852 $ 18,332 $ (693) $ 466,491 Gross Gross December 31, 2019 Amortized Unrealized Unrealized Available-For-Sale Cost Gains Losses Fair Value U.S. states and political divisions $ 81,865 $ 863 $ (243) $ 82,485 Trust preferred securities 4,808 — (120) 4,688 Corporate debt securities 19,557 363 — 19,920 Residential mortgage-backed securities 173,047 2,797 (476) 175,368 Total available-for-sale 279,277 4,023 (839) 282,461 Held-to-Maturity U.S. states and political divisions 116,972 104 (1,785) 115,291 Total held-to-maturity 116,972 104 (1,785) 115,291 Total securities $ 396,249 $ 4,127 $ (2,624) $ 397,752 |
Schedule of allowance for credit losses | The following table presents the activity in the allowance for credit losses on securities held-to-maturity by major security type for the three and six months ended June 30, 2020. For the Three Months Ended June 30, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ 10 $ 4 $ 14 Provision for credit losses (1) — (1) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 For the Six Months Ended June 30, 2020 U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total (in thousands) Allowance for credit losses on securities held-to-maturity: Beginning balance $ — $ — $ — Impact of adopting ASU 2016-13 13 7 20 Provision for credit losses (4) (3) (7) Securities charged-off — — — Recoveries — — — Total ending allowance balance $ 9 $ 4 $ 13 |
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 June 30, 2020. 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) Within 1 year $ 6,030 $ 6,182 $ — $ — Over 1 year through 5 years 4,536 4,712 — — 5 years to 10 years 36,260 36,564 318 319 Over 10 years 58,280 59,742 185,615 194,343 105,106 107,200 185,933 194,662 Residential mortgage-backed securities 157,813 164,629 — — Total $ 262,919 $ 271,829 $ 185,933 $ 194,662 |
Schedule of amortized cost of debt securities held-to-maturity | Held-to-Maturity U.S. States and U.S. States and Political Subdivisions Political Subdivisions Tax-exempt Taxable Total June 30, 2020 (in thousands) Aa1 $ 32,321 $ 7,748 $ 40,069 Aa2 32,173 20,871 53,044 Aa3 19,452 4,047 23,499 Aaa 48,550 20,771 69,321 Total $ 132,496 $ 53,437 $ 185,933 |
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 June 30, 2020 and December 31, 2019. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized June 30, 2020 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 1,977 $ (13) $ — $ — $ 1,977 $ (13) Trust preferred securities — — 4,375 (446) 4,375 (446) Corporate debt securities 9,848 (152) — — 9,848 (152) Residential mortgage-backed securities — — 1,972 (16) 1,972 (16) Total available-for-sale 11,825 (165) 6,347 (462) 18,172 (627) Held-to-Maturity U.S. states and political divisions 16,333 (66) — — 16,333 (66) Total held-to-maturity 16,333 (66) — — 16,333 (66) Total securities $ 28,158 $ (231) $ 6,347 $ (462) $ 34,505 $ (693) December 31, 2019 Available-for-Sale U.S. states and political divisions $ 20,019 $ (190) $ 4,090 $ (53) $ 24,109 $ (243) Trust preferred securities — — 4,687 (120) 4,687 (120) Residential mortgage-backed securities 10,751 (78) 30,292 (398) 41,043 (476) Total available-for-sale 30,770 (268) 39,069 (571) 69,839 (839) Held-to-Maturity U.S. states and political divisions 96,854 (1,785) — — 96,854 (1,785) Total held-to-maturity 96,854 (1,785) — — 96,854 (1,785) Total securities $ 127,624 $ (2,053) $ 39,069 $ (571) $ 166,693 $ (2,624) |
Schedule of Realized Gain (Loss) on Securities | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Proceeds from sales $ — $ 54,938 $ — $ 54,938 Gross realized gains — $ 1,122 $ — $ 1,122 Gross realized losses — (468) — (468) Net gains on sales of securities $ — $ 654 $ — $ 654 |
Loans and Allowance for credit
Loans and Allowance for credit losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of June 30, 2020 and December 31, 2019, is summarized below. June 30, 2020 December 31, 2019 (in thousands) Loans held for sale Loans held for sale 1,153 370 Total loans held for sale $ 1,153 $ 370 Loans held for investment Commercial loans: Commercial and industrial $ 973,818 $ 705,115 Commercial real estate 900,321 916,328 Construction and land 128,991 127,540 Mortgage warehouse participations — 13,941 Total commercial loans 2,003,130 1,762,924 Residential: Residential mortgages 32,327 31,315 Home equity 23,689 25,002 Total residential loans 56,016 56,317 Consumer 113,149 37,765 Other 22,160 19,552 Total loans 2,194,455 1,876,558 Less net deferred fees and other unearned income (9,761) (3,034) Less allowance for credit losses on loans (31,605) (18,535) Loans held for investment, net $ 2,153,089 $ 1,854,989 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the balance and activity in the allowance for credit losses on loans by portfolio segment for the three months ended June 30, 2020 and 2019. For the Three Months Ended June 30, 2020 2019 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance, prior to adoption of ASC 326 $ 23,830 $ 415 $ 651 $ 24,896 $ 17,397 $ 447 $ 263 $ 18,107 Provision for loan losses 8,482 138 (398) 8,222 1,055 (283) (74) 698 Loans charged-off (1,479) (36) — (1,515) (635) — — (635) Recoveries 1 — 1 2 — — 16 16 Total ending allowance balance $ 30,834 $ 517 $ 254 $ 31,605 $ 17,817 $ 164 $ 205 $ 18,186 For the Six Months Ended June 30, 2020 2019 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for credit losses on loans Beginning balance, prior to adoption of ASC 326 $ 18,203 $ 145 $ 187 $ 18,535 $ 17,322 $ 292 $ 237 $ 17,851 Impact of adopting ASC 326 (947) 8 85 (854) — — — — Provision for loan losses 15,134 524 (27) 15,631 1,662 (127) (23) 1,512 Loans charged-off (1,575) (161) — (1,736) (1,184) (9) (37) (1,230) Recoveries 19 1 9 29 17 8 28 53 Total ending allowance balance $ 30,834 $ 517 $ 254 $ 31,605 $ 17,817 $ 164 $ 205 $ 18,186 |
Troubled Debt Restructurings on Financing Receivables | Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Three Months Ended June 30, 2020 Commercial and industrial — $ — $ — Total — $ — $ — Six Months Ended June 30, 2020 Commercial and industrial 1 $ 67 $ 67 Commercial real estate 1 1,945 1,945 Total 2 $ 2,012 $ 2,012 Three Months Ended June 30, 2019 Commercial and industrial 3 $ 382 $ 382 Total 3 $ 382 $ 382 Six Months Ended June 30, 2019 Commercial and industrial 6 $ 1,235 $ 1,235 Commercial real estate 2 926 926 Total 8 $ 2,161 $ 2,161 |
Schedule of Financing Receivable Credit Quality Indicators | As of June 30, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized 2020 2019 2018 2017 2016 Prior Cost Basis Total (in thousands) June 30, 2020 Commercial - commercial and industrial: Risk rating Pass $ 322,442 $ 160,555 $ 112,710 $ 50,353 $ 38,884 $ 18,496 $ 188,250 $ 891,690 Special mention — 5,405 23,277 1,519 — 349 30,546 61,096 Substandard — 1,929 4,943 2,214 1,059 6,505 4,344 20,994 Doubtful — 342 — — — (304) — 38 Total commercial - commercial and industrial $ 322,442 $ 168,231 $ 140,930 $ 54,086 $ 39,943 $ 25,046 $ 223,140 $ 973,818 Commercial - commercial real estate: Risk rating Pass $ 48,120 $ 169,996 $ 141,651 $ 106,354 $ 139,914 $ 228,636 $ 8,977 $ 843,648 Special mention — 2,879 5,521 1,099 10,533 4,221 — 24,253 Substandard — 11,532 1,591 3,003 — 16,244 50 32,420 Doubtful — — — — — — — — Total commercial - commercial real estate loans $ 48,120 $ 184,407 $ 148,763 $ 110,456 $ 150,447 $ 249,101 $ 9,027 $ 900,321 Commercial - construction and land: Risk rating Pass $ 34,958 $ 52,732 $ 24,113 $ — $ 4,407 $ 1,982 $ 1,845 $ 120,037 Special mention — 8,954 — — — — — 8,954 Substandard — — — — — — — — Doubtful — — — — — — — — Total commercial - construction and land loans $ 34,958 $ 61,686 $ 24,113 $ — $ 4,407 $ 1,982 $ 1,845 $ 128,991 Residential - mortgages: Risk rating Pass $ 2,972 $ 3,241 $ 15,687 $ 1,977 $ 5,256 $ 232 $ 227 $ 29,592 Special mention 697 — 862 768 — — — 2,327 Substandard — — 179 — 26 203 — 408 Doubtful — — — — — — — — Total residential - mortgage loans $ 3,669 $ 3,241 $ 16,728 $ 2,745 $ 5,282 $ 435 $ 227 $ 32,327 Residential - home equity: Risk rating Pass $ — $ — $ — $ — $ — $ — $ 23,689 $ 23,689 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total residential - home equity loans $ — $ — $ — $ — $ — $ — $ 23,689 $ 23,689 Consumer: Risk rating Pass $ 250 $ 2,283 $ 53 $ 64 $ 70 $ 106,865 $ 3,564 $ 113,149 Special mention — — — — — — — — Substandard — — — — — — — — Doubtful — — — — — — — — Total consumer loans $ 250 $ 2,283 $ 53 $ 64 $ 70 $ 106,865 $ 3,564 $ 113,149 Consumer - other: Risk rating Pass $ — $ — $ 4,794 $ 2,112 $ 232 $ 784 $ 6,982 $ 14,904 Special mention — 6,798 — — — — — 6,798 Substandard — — — 458 — — — 458 Doubtful — — — — — — — — Total consumer - other loans $ — $ 6,798 $ 4,794 $ 2,570 $ 232 $ 784 $ 6,982 $ 22,160 Total: Pass $ 408,742 $ 388,807 $ 299,008 $ 160,860 $ 188,763 $ 356,995 $ 233,534 $ 2,036,709 Special Mention 697 24,036 29,660 3,386 10,533 4,570 30,546 103,428 Substandard — 13,461 6,713 5,675 1,085 22,952 4,394 54,280 Doubtful — 342 — — — (304) — 38 Total $ 409,439 $ 426,646 $ 335,381 $ 169,921 $ 200,381 $ 384,213 $ 268,474 $ 2,194,455 As of December 31, 2019, the risk category of loans by class of loans is as follows. Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2019 Commercial and industrial $ 648,895 $ 40,179 $ 10,051 $ 5,990 $ - $ 705,115 Commercial real estate 891,078 5,483 19,504 263 - 916,328 Construction and land 127,540 - - - - 127,540 Residential mortgages 30,941 - 119 151 104 31,315 Home equity 24,302 - - 700 - 25,002 Mortgage warehouse 13,941 - - - - 13,941 Consumer/Other 56,336 500 481 - - 57,317 Total Loans $ 1,793,033 $ 46,162 $ 30,155 $ 7,104 $ 104 $ 1,876,558 |
Schedule of Past Due Financing Receivables | As of June 30, 2020 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 828 $ 284 $ — $ 5,658 $ 6,770 $ 967,048 $ 973,818 Commercial real estate — 364 — 157 521 899,800 900,321 Construction and land — — — — — 128,991 128,991 Residential mortgages 2,063 — 335 115 2,513 29,814 32,327 Home equity — — — — — 23,689 23,689 Consumer 2,453 923 — — 3,376 131,933 135,309 Total Loans $ 5,344 $ 1,571 $ 335 $ 5,930 $ 13,180 $ 2,181,275 $ 2,194,455 As of December 31, 2019 30 - 59 60 - 89 Greater Than Days Days 89 Days Total Past Due Loans Not Past Due Past Due Past Due Nonaccruing and Nonaccruing Past Due Total (in thousands) Loans by Classification Commercial and industrial $ 4,069 $ 30 $ — $ 5,990 $ 10,089 $ 695,026 $ 705,115 Commercial real estate 1,194 — 85 262 1,541 914,787 916,328 Construction and land — — — — — 127,540 127,540 Residential mortgages 707 — — 256 963 30,352 31,315 Home equity — — — 700 700 24,302 25,002 Mortgage warehouse — — — — — 13,941 13,941 Consumer 136 — — — 136 57,181 57,317 Total Loans $ 6,106 $ 30 $ 85 $ 7,208 $ 13,429 $ 1,863,129 $ 1,876,558 |
Schedule of amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing | Nonaccrual Nonaccrual Loans Past With No With Due Over Allowance for Allowance for Total 89 Days Credit Losses Credit Losses Nonaccrual Still Accruing Commercial loans: Commercial and industrial $ 3,177 $ 2,481 $ 5,658 $ — Commercial real estate 157 — 157 — Total commercial loans 3,334 2,481 5,815 — Residential mortgages 115 — 115 335 Total loans $ 3,449 $ 2,481 $ 5,930 $ 335 |
Schedule of amortized cost basis of collateral dependent impaired loans by class of loans | Real Business SBA Property Equipment Assets Guaranty-75% Total Commercial loans: Commercial and industrial $ 2,424 $ 544 $ 192 $ 1,476 $ 4,636 Commercial real estate 48 109 — — 157 Total commercial loans 2,472 653 192 1,476 4,793 Residential mortgages 115 — — — 115 Total loans $ 2,587 $ 653 $ 192 $ 1,476 $ 4,908 |
Schedule Of Small Business Application Loans | Three Months Ended June 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ - $ - $ - $ - SBA Sales 10,205 1,334 - 11,539 Total Loans $ 10,205 $ 1,334 $ — $ 11,539 Six Months Ended June 30, 2020 Commercial and Commercial Residential Industrial Real Estate Mortgages Total (in thousands) Repurchases of SBA participations $ - $ - $ - $ - SBA Sales 16,169 1,492 277 17,938 Total Loans $ 16,169 $ 1,492 $ 277 $ 17,938 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets | |
Schedule of Intangible Assets and Goodwill | For the Three Months Ended June 30, For the Six Months Ended June 30, Goodwill Core Deposit Intangible Total Goodwill Core Deposit Intangible Total (in thousands) 2020 Balance, beginning of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 Amortization — — — — — — Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 2019 Balance, beginning of period $ 21,690 $ 1,158 $ 22,848 $ 21,690 $ 1,405 $ 23,095 Amortization — — — — (247) (247) Impairment, due to Branch Sale (1,765) (1,158) (2,923) (1,765) (1,158) (2,923) Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Servicing Assets | |
Changes in the Balance of Servicing Assets | Changes in the balance of servicing assets for the three and six months ended June 30, 2020 and 2019 are presented in the following table . Three Months Ended June 30, Six Months Ended June 30, SBA Loan Servicing Assets 2020 2019 2020 2019 (in thousands) (in thousands) Beginning carrying value, net $ 2,523 $ 2,677 $ 2,731 $ 2,539 Additions 197 327 302 625 Amortization (217) (278) (530) (438) Ending carrying value $ 2,503 $ 2,726 $ 2,503 $ 2,726 Changes in the balance of TriNet servicing assets for the three and six months ended June 30, 2020 and 2019 are presented in the following table. Three Months Ended June 30, Six Months Ended June 30, TriNet Servicing Assets 2020 2019 2020 2019 (in thousands) (in thousands) Beginning carrying value, net $ 262 $ 406 $ 296 $ 444 Amortization (34) (37) (68) (75) Ending carrying value $ 228 $ 369 $ 228 $ 369 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At June 30, 2020 and December 31, 2019, 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 June 30, 2020 December 31, 2019 (dollars in thousands) Fair value of retained servicing assets $ 2,654 $ 2,842 Weighted average life 3.29 years 3.77 years Prepayment speed: 17.49 % 14.87 % Decline in fair value due to a 10% adverse change $ (97) $ (150) Decline in fair value due to a 20% adverse change $ (202) $ (254) Weighted average discount rate 12.78 % 13.66 % Decline in fair value due to a 100 bps adverse change $ (39) $ (98) Decline in fair value due to a 200 bps adverse change $ (93) $ (156) At June 30, 2020 and December 31, 2019, 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 June 30, 2020 December 31, 2019 (dollars in thousands) Fair value of retained servicing assets $ 379 $ 414 Weighted average life 5.10 years 5.58 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (4) $ (5) Decline in fair value due to a 20% adverse change $ (8) $ (10) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (8) $ (9) Decline in fair value due to a 200 bps adverse change $ (15) $ (18) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Accumulated Other Comprehensive Income (Loss) | For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2020 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 $ 19,057 $ (4,711) $ 14,346 $ 6,081 $ (1,520) $ 4,561 Unrealized net gains (losses) on investment securities available-for-sale 1,331 (329) 1,002 5,726 (1,407) 4,319 Unrealized net gains (losses) on derivatives 720 (178) 542 9,301 (2,291) 7,010 Accumulated other comprehensive income (loss) end of period $ 21,108 $ (5,218) $ 15,890 $ 21,108 $ (5,218) $ 15,890 For the Three Months Ended For the Six Months Ended June 30, 2019 June 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 $ (3,882) $ 972 $ (2,910) $ (13,743) $ 3,438 $ (10,305) Unrealized net gains (losses) on investment securities available-for-sale 6,090 (1,524) 4,566 14,562 (3,642) 10,920 Reclassification adjustment for net realized losses on investment securities available-for-sale (654) 164 (490) (654) 164 (490) Unrealized net gains (losses) on derivatives 3,220 (805) 2,415 4,609 (1,153) 3,456 Accumulated other comprehensive income (loss) end of period $ 4,774 $ (1,193) $ 3,581 $ 4,774 $ (1,193) $ 3,581 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 and 2019. Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands, except share and per share amounts) Net income from continuing operations $ 1,849 $ 7,009 $ 3,973 $ 13,449 Net income from discontinued operations — 22,143 — 21,080 Net income available to common shareholders $ 1,849 $ 29,152 $ 3,973 $ 34,529 Weighted average shares outstanding Basic (1) 21,472,462 23,888,381 21,580,855 24,369,106 Effect of dilutive securities: Stock options and performance share awards 62,578 152,425 107,857 158,286 Diluted 21,535,040 24,040,806 21,688,712 24,527,392 Net income per common share - basic Net income per common share - continuing operations $ 0.09 $ 0.29 $ 0.18 $ 0.55 Net income per common share - discontinued operations — 0.93 — 0.87 Net income per common share - basic $ 0.09 $ 1.22 $ 0.18 $ 1.42 Net income per common share - diluted Net income per common share - continuing operations $ 0.09 $ 0.29 $ 0.18 $ 0.55 Net income per common share - discontinued operations — 0.92 — 0.86 Net income per common share - diluted $ 0.09 $ 1.21 $ 0.18 $ 1.41 (1) Unvested restricted shares are participating securities and included in basic share calculations. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019: Derivatives designated as hedging instruments under ASC 815 June 30, 2020 December 31, 2019 (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 $ 12,790 $ 125,000 $ 3,578 Cash flow hedge of LIBOR based loans Other liabilities $ — $ — $ 50,000 $ 8 Derivatives not designated as hedging instruments under ASC 815 June 30, 2020 December 31, 2019 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 35,861 $ 2,366 $ 44,763 $ 1,025 Zero premium collar Other assets 73,265 10,521 74,562 4,253 $ 109,126 $ 12,887 $ 119,325 $ 5,278 Dealer offsets to customer swap positions Other liabilities $ 35,861 $ 2,400 $ 44,763 $ 1,090 Dealer offset to zero premium collar Other liabilities 73,265 10,601 74,562 4,545 Credit risk participation Other liabilities 6,719 11 7,657 4 $ 115,845 $ 13,012 $ 126,982 $ 5,639 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 six months ended June 30, 2020 and 2019. 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest rate products Other income $ 12 $ (231) $ (242) $ (341) Other contracts Other income (2) (2) 6 (3) Total $ 10 $ (233) $ (236) $ (344) The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and six months ended June 30, 2020 and 2019: Derivatives in Cash Flow Hedging Relationships Three Months Ended June 30, Six Months Ended June 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified from (Loss) Recognized in Gain or (Loss) Reclassified from OCI on Derivatives Accumulated OCI in Income OCI on Derivatives Accumulated OCI in Income (Effective Portion) (Effective Portion) (Effective Portion) (Effective Portion) (in thousands) 2020 2019 Location 2020 2019 2020 2019 Location 2020 2019 Interest rate swaps $ 3,669 $ 1,823 Interest income $ (510) $ (8) $ 9,268 $ 3,091 Interest income $ (652) $ (129) |
Other Borrowings and Long Ter_2
Other Borrowings and Long Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Borrowings and Long Term Debt | |
Schedule of Long-term Debt Instruments and Borrowings | Federal Home Loan Bank borrowings as of June 30, 2020 and December 31, 2019 are as follows: June 30, 2020 December 31, 2019 Balance Interest Rate Balance Interest Rate (in thousands) FHLB short-term borrowings: Fixed rate advance maturing July 14, 2020 $ 50,000 0.27 % $ — — % Total $ 50,000 $ — Subordinated debt is summarized as follows: June 30, 2020 December 31, 2019 (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 42 127 Subordinated debt, net $ 49,958 $ 49,873 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-Based Compensation | |
Schedule of Share-based Compensation, Fair Value of Options Assumptions | For the six months ended June 30, 2019 Risk‑free interest rate 2.27 % Expected term in years 1.73-1.82 Expected stock price volatility 26.8 % Dividend yield — % |
Schedule of Share-based Compensation, Stock Options and Warrants Activity | The following table represents stock option activity for the six months ended June 30, 2020: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2019 318,980 $ 11.47 Granted/modified (1) — — Exercised (60,940) 10.82 Forfeited (1) — — Expired (94) 102.12 Outstanding, June 30, 2020 257,946 $ 11.59 2.06 $ 284 Exercisable, June 30, 2020 247,946 $ 11.45 1.93 $ 284 (1) During the six months ended June 30, 2020, the Company did not modify any options. |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock and performance share award activity for the six months ended June 30, 2020: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2019 292,877 $ 19.00 Granted/modified (1) 142,550 18.13 Vested (98,991) 17.60 Forfeited (5,661) 18.67 Outstanding, June 30, 2020 330,775 $ 19.05 (1) During the six months ended June 30, 2020, the Company did not modify any restricted stock awards. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 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 $ — $ 83,142 $ — $ 83,142 Trust preferred securities — 4,375 — 4,375 Corporate debt securities — 19,683 — 19,683 Mortgage-backed securities — 164,629 — 164,629 Total securities available-for-sale $ — $ 271,829 $ — $ 271,829 Interest rate derivative assets $ — $ 25,677 $ — $ 25,677 Interest rate derivative liabilities $ — $ 13,012 $ — $ 13,012 Fair Value Measurements at December 31, 2019 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. states and political subdivisions $ — $ 82,485 $ — $ 82,485 Trust preferred securities — 4,688 — 4,688 Corporate debt securities — 19,920 — 19,920 Mortgage-backed securities — 175,368 — 175,368 Total securities available-for-sale $ — $ 282,461 $ — $ 282,461 Interest rate derivative assets $ — $ 8,856 $ — $ 8,856 Interest rate derivative liabilities $ — $ 5,647 $ — $ 5,647 |
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 June 30, 2020 and December 31, 2019. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value June 30, 2020 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,680 $ 4,680 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,288 $ 4,288 |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the estimated fair values of Atlantic Capital’s financial instruments at June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, 2020 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 $ 33,759 $ 33,759 $ — $ — Interest-bearing deposits in banks 33,038 33,038 — — Total securities available-for-sale 271,829 — 271,829 — Total securities held-to-maturity 185,920 — 194,662 — FHLB stock 4,744 — — 4,744 Federal Reserve Bank stock 10,029 — — 10,029 Loans held for investment, net 2,184,694 — — 2,211,005 Derivative assets 25,677 — 25,677 — Financial liabilities: Deposits $ 2,407,631 $ — $ 2,373,838 $ — Federal funds purchased 6,000 6,000 — — Subordinated debt 49,958 — 50,153 — FHLB advances 50,000 — 50,004 — Derivative financial instruments 13,012 — 13,012 — Fair Value Measurements at December 31, 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 $ 45,249 $ 45,249 $ — $ — Interest-bearing deposits in banks 421,079 421,079 — — Total securities available-for-sale 282,461 — 282,461 — Total securities held-to-maturity 116,972 — 115,291 — FHLB stock 2,680 — — 2,680 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,873,524 — — 1,890,258 Loans held for sale 370 — 370 — Derivative assets 8,856 — 8,856 — Financial liabilities: Deposits $ 2,499,046 $ — $ 2,421,957 $ — Subordinated debt 49,873 — 50,081 — Derivative financial instruments 5,647 — 5,647 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019 was as follows: June 30, 2020 December 31, 2019 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 739,648 $ 735,905 Standby letters of credit 9,973 8,053 $ 749,621 $ 743,958 Minimum lease payments $ 18,993 $ 20,055 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue Recognition | |
Disaggregation of Revenue | The following table presents service charges by type of service provided for the three and six months ended June 30, 2020 and 2019: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 (in thousands) Deposit account analysis fees and charges $ 997 $ 676 $ 1,931 $ 1,222 ATM fees 16 (8) 36 39 NSF fees 7 8 25 22 Wire fees 15 102 148 212 Foreign exchange fees 43 92 169 165 Other 3 — 4 4 Total service charges - continuing operations 1,081 870 2,313 1,664 Service charges - discontinued operations — 46 — 527 Total service charges $ 1,081 $ 916 $ 2,313 $ 2,191 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases | |
Lease Cost and Other Information Related to Leases | Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) Operating lease cost $ 592 $ 461 $ 1,186 $ 1,126 Short-term lease cost 6 12 15 26 Sublease income (92) (42) (182) (116) Net lease cost $ 506 $ 431 $ 1,019 $ 1,036 The tables below summarize other information related to the Company’s operating leases: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 565 $ 522 $ 1,125 $ 1,043 Right-of-use assets obtained in exchange for new finance lease liabilities — 716 — 15,207 As of June 30, 2020 2019 Weighted-average remaining lease term - operating leases 8.7 years 9.2 years Weighted-average discount rate - operating leases 3.04 % 3.30 % |
Schedule of Maturity of Lease Liabilities | June 30, 2020 (in thousands) Twelve Months Ended: June 30, 2021 $ 2,027 June 30, 2022 2,351 June 30, 2023 2,244 June 30, 2024 1,995 March 31, 2025 1,893 Thereafter 8,483 Total future minimum lease payments 18,993 Less: Interest (3,146) Present value of net future minimum lease payments $ 15,847 |
Accounting Policies and Basis_3
Accounting Policies and Basis of Presentation (Details) | 6 Months Ended | ||||||
Jun. 30, 2020USD ($)item | Mar. 31, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Retained earnings | $ 95,570,000 | $ 91,669,000 | |||||
Allowance for credit losses on unfunded commitments | $ 2,167,000 | ||||||
Allowance for credit losses on loans | 31,605,000 | $ 24,896,000 | 17,681,000 | $ 18,535,000 | $ 18,186,000 | $ 18,107,000 | $ 17,851,000 |
Allowance for credit losses on debt securities held-to-maturity | $ 13,000 | 20,000 | |||||
Number Of Average Loans In Pool | item | 20 | ||||||
Allowance for credit losses, accrued interest receivable on available for sale securities | $ 1,100,000 | ||||||
ASU 2016-13 | Previously Reported | |||||||
Allowance for credit losses on unfunded commitments | 892,000 | ||||||
Allowance for credit losses on loans | 18,535,000 | ||||||
ASU 2016-13 | Restatement Adjustment | |||||||
Retained earnings | $ (72,000,000) | (72,000,000) | |||||
Allowance for credit losses on unfunded commitments | 1,275,000 | ||||||
Allowance for credit losses on loans | (854,000) | ||||||
Allowance for credit losses on debt securities held-to-maturity | $ 20,000 |
Accounting Standards Updates _3
Accounting Standards Updates and Recently Adopted Standards (Details) - USD ($) | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | $ 13,000 | $ 20,000 | |||||
Allowance for credit losses on loans | 31,605,000 | $ 24,896,000 | 17,681,000 | $ 18,535,000 | $ 18,186,000 | $ 18,107,000 | $ 17,851,000 |
Allowance for credit losses on unfunded commitments | 2,167,000 | ||||||
Total | 19,868,000 | ||||||
Retained earnings | 95,570,000 | 91,669,000 | |||||
U.S. states and political divisions | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 13,000 | 14,000 | |||||
U.S. states and political divisions - tax-exempt | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 9,000 | 13,000 | 10,000 | ||||
U.S. states and political divisions - taxable | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 4,000 | 7,000 | $ 4,000 | ||||
Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 18,535,000 | ||||||
Allowance for credit losses on unfunded commitments | 892,000 | ||||||
Total | 19,427,000 | ||||||
Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 20,000 | ||||||
Allowance for credit losses on loans | (854,000) | ||||||
Allowance for credit losses on unfunded commitments | 1,275,000 | ||||||
Total | 441,000 | ||||||
Retained earnings | $ (72,000,000) | (72,000,000) | |||||
Restatement Adjustment | ASU 2016-13 | U.S. states and political divisions - tax-exempt | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 13,000 | ||||||
Restatement Adjustment | ASU 2016-13 | U.S. states and political divisions - taxable | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on debt securities held-to-maturity | 7,000 | ||||||
Commercial and industrial | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 8,578,000 | ||||||
Commercial and industrial | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 9,015,000 | ||||||
Commercial and industrial | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | (437,000) | ||||||
Commercial real estate | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 6,868,000 | ||||||
Commercial real estate | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 7,504,000 | ||||||
Commercial real estate | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | (636,000) | ||||||
Construction and land | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 1,819,000 | ||||||
Construction and land | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 1,685,000 | ||||||
Construction and land | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 134,000 | ||||||
Residential mortgages | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 108,000 | ||||||
Residential mortgages | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 81,000 | ||||||
Residential mortgages | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 27,000 | ||||||
Home equity | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 121,000 | ||||||
Home equity | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 63,000 | ||||||
Home equity | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 58,000 | ||||||
Consumer | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 101,000 | ||||||
Consumer | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 42,000 | ||||||
Consumer | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 59,000 | ||||||
Other | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 78,000 | ||||||
Other | Previously Reported | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 145,000 | ||||||
Other | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | (67,000) | ||||||
Mortgage warehouse | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | 8,000 | ||||||
Mortgage warehouse | Restatement Adjustment | ASU 2016-13 | |||||||
Item Effected [Line Items] | |||||||
Allowance for credit losses on loans | $ 8,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) $ in Thousands | Apr. 05, 2019USD ($)item | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Assets related to discontinued operations | $ 0 | $ 0 | |
Liabilities related to discontinued operations | $ 0 | $ 0 | |
Branch Sale | 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 | $ 598,000 | ||
Amount of loans purchased by buyer | $ 385,000 | ||
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 | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net income before provision for income taxes | $ 30,107 | $ 28,690 |
Provision for income taxes | 7,964 | 7,610 |
Net income from discontinued operations | 22,143 | 21,080 |
Branch Sale | Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net interest income (loss) | (39) | 3,086 |
Service charges | 46 | 527 |
Mortgage income | 288 | |
Gain on sale of branches | 34,475 | 34,475 |
Other income | (22) | (1) |
Total noninterest income | 34,499 | 35,289 |
Salaries and employee benefits | 330 | 2,757 |
Occupancy | 71 | 410 |
Equipment and software | 8 | 131 |
Amortization of intangibles | 247 | |
Communications and data processing | 197 | 586 |
Divestiture expense | 3,646 | 5,095 |
Other noninterest expense | 101 | 459 |
Total noninterest expense | 4,353 | 9,685 |
Net income before provision for income taxes | 30,107 | 28,690 |
Provision for income taxes | 7,964 | 7,610 |
Net income from discontinued operations | $ 22,143 | $ 21,080 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivatives, Assets | ||
Gross Amounts of Recognized Assets | $ 25,677 | $ 8,856 |
Net Asset Balance | 25,677 | 8,856 |
Net Amount | 25,677 | 8,856 |
Total, Assets | ||
Gross Amounts of Recognized Assets | 25,677 | 8,856 |
Net Asset Balance | 25,677 | 8,856 |
Net Amount | 25,677 | 8,856 |
Derivatives, Liabilities | ||
Gross Amounts of Recognized Liabilities | 13,012 | 5,647 |
Net Liability Balance | 13,012 | 5,647 |
Financial Instruments | (13,012) | (5,647) |
Total, Liabilities | ||
Gross Amounts of Recognized Liabilities | 13,012 | 5,647 |
Net Liability Balance | 13,012 | 5,647 |
Financial Instruments | $ (13,012) | $ (5,647) |
Securities - Available-For-Sale
Securities - Available-For-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Available-For-Sale | |||
Amortized Cost | $ 262,919 | $ 279,277 | |
Gross Unrealized Gains | 9,537 | 4,023 | |
Gross Unrealized Losses | (627) | (839) | |
Fair Value | 271,829 | 282,461 | |
Held-to-Maturity | |||
Amortized Cost | 185,933 | 116,972 | |
Gross Unrealized Gains | 8,795 | 104 | |
Gross Unrealized Losses | (66) | (1,785) | |
Fair Value | 194,662 | 115,291 | |
Allowance for credit losses on debt securities held-to-maturity | (13) | $ (20) | |
Investment securities held to maturity, net of allowance for credit losses of $13 at June 30, 2020 | 185,920 | 116,972 | |
Total securities | |||
Amortized Cost | 448,852 | 396,249 | |
Gross Unrealized Gains | 18,332 | 4,127 | |
Gross Unrealized Losses | (693) | (2,624) | |
Fair Value | 466,491 | 397,752 | |
U.S. states and political divisions | |||
Available-For-Sale | |||
Amortized Cost | 80,744 | 81,865 | |
Gross Unrealized Gains | 2,411 | 863 | |
Gross Unrealized Losses | (13) | (243) | |
Fair Value | 83,142 | 82,485 | |
Held-to-Maturity | |||
Amortized Cost | 185,933 | 116,972 | |
Gross Unrealized Gains | 8,795 | 104 | |
Gross Unrealized Losses | (66) | (1,785) | |
Fair Value | 194,662 | 115,291 | |
Allowance for credit losses on debt securities held-to-maturity | (13) | (14) | |
Investment securities held to maturity, net of allowance for credit losses of $13 at June 30, 2020 | 185,920 | ||
Trust preferred securities | |||
Available-For-Sale | |||
Amortized Cost | 4,821 | 4,808 | |
Gross Unrealized Losses | (446) | (120) | |
Fair Value | 4,375 | 4,688 | |
Corporate debt securities | |||
Available-For-Sale | |||
Amortized Cost | 19,541 | 19,557 | |
Gross Unrealized Gains | 294 | 363 | |
Gross Unrealized Losses | (152) | ||
Fair Value | 19,683 | 19,920 | |
Residential mortgage-backed securities | |||
Available-For-Sale | |||
Amortized Cost | 157,813 | 173,047 | |
Gross Unrealized Gains | 6,832 | 2,797 | |
Gross Unrealized Losses | (16) | (476) | |
Fair Value | $ 164,629 | $ 175,368 |
Securities - Allowance for cred
Securities - Allowance for credit losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Allowance for credit losses: | ||
Ending Balance | $ 13 | $ 13 |
U.S. states and political divisions | ||
Allowance for credit losses: | ||
Beginning Balance | 14 | |
Provision for credit losses | (1) | (7) |
Ending Balance | 13 | 13 |
U.S. states and political divisions - tax-exempt | ||
Allowance for credit losses: | ||
Beginning Balance | 10 | |
Provision for credit losses | (1) | (4) |
Ending Balance | 9 | 9 |
U.S. states and political divisions - taxable | ||
Allowance for credit losses: | ||
Beginning Balance | 4 | |
Provision for credit losses | (3) | |
Ending Balance | $ 4 | 4 |
ASU 2016-13 | U.S. states and political divisions | ||
Allowance for credit losses: | ||
Impact of adopting ASU 2016-13 | 20 | |
ASU 2016-13 | U.S. states and political divisions - tax-exempt | ||
Allowance for credit losses: | ||
Impact of adopting ASU 2016-13 | 13 | |
ASU 2016-13 | U.S. states and political divisions - taxable | ||
Allowance for credit losses: | ||
Impact of adopting ASU 2016-13 | $ 7 |
Securities - Amortized cost of
Securities - Amortized cost of debt securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | $ 185,933 | $ 116,972 |
Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 40,069 | |
Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 53,044 | |
Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 23,499 | |
Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 69,321 | |
U.S. states and political divisions | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 185,933 | $ 116,972 |
U.S. states and political divisions - tax-exempt | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 132,496 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 32,321 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 32,173 | |
U.S. states and political divisions - tax-exempt | Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 19,452 | |
U.S. states and political divisions - tax-exempt | Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 48,550 | |
U.S. states and political divisions - taxable | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 53,437 | |
U.S. states and political divisions - taxable | Moody's, Aa1 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 7,748 | |
U.S. states and political divisions - taxable | Moody's, Aa2 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 20,871 | |
U.S. states and political divisions - taxable | Moody's, Aa3 Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | 4,047 | |
U.S. states and political divisions - taxable | Moody's, Aaa Rating [Member] | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Total securities held to maturity | $ 20,771 |
Securities - Contractual Maturi
Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-For-Sale, Amortized Cost | ||
Within 1 year | $ 6,030 | |
Over 1 year through 5 years | 4,536 | |
5 years to 10 years | 36,260 | |
Over 10 years | 58,280 | |
Amortized cost of securities with single maturity date | 105,106 | |
Residential mortgage-backed securities | 157,813 | |
Amortized Cost | 262,919 | $ 279,277 |
Available-For-Sale, Fair Value | ||
Within 1 year | 6,182 | |
Over 1 year through 5 years | 4,712 | |
5 years to 10 years | 36,564 | |
Over 10 years | 59,742 | |
Fair value of securities with single maturity date | 107,200 | |
Residential mortgage-backed securities | 164,629 | |
Fair Value | 271,829 | 282,461 |
Held-to-Maturity, Amortized Cost | ||
5 years to 10 years | 318 | |
Over 10 years | 185,615 | |
Amortized cost of securities with single maturity date | 185,933 | |
Amortized Cost | 185,933 | 116,972 |
Held-to-Maturity, Fair Value | ||
5 years to 10 years | 319 | |
Over 10 years | 194,343 | |
Fair value of securities with single maturity date | 194,662 | |
Fair Value | $ 194,662 | $ 115,291 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-Sale, Fair Value | ||
Less than 12 months | $ 11,825 | $ 30,770 |
12 months or greater, fair value | 6,347 | 39,069 |
Totals | 18,172 | 69,839 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (165) | (268) |
12 months or greater | (462) | (571) |
Totals | (627) | (839) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 16,333 | 96,854 |
Totals | 16,333 | 96,854 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (66) | (1,785) |
Totals | (66) | (1,785) |
Total securities - Fair Value | ||
Less than 12 months | 28,158 | 127,624 |
12 months or greater | 6,347 | 39,069 |
Totals | 34,505 | 166,693 |
Total securities - Unrealized losses | ||
Less than 12 months | (231) | (2,053) |
12 months or greater | (462) | (571) |
Totals | (693) | (2,624) |
U.S. states and political divisions | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 1,977 | 20,019 |
12 months or greater, fair value | 4,090 | |
Totals | 1,977 | 24,109 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (13) | (190) |
12 months or greater | (53) | |
Totals | (13) | (243) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 16,333 | 96,854 |
Totals | 16,333 | 96,854 |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (66) | (1,785) |
Totals | (66) | (1,785) |
Trust preferred securities | ||
Available-for-Sale, Fair Value | ||
12 months or greater, fair value | 4,375 | 4,687 |
Totals | 4,375 | 4,687 |
Available-for-Sale, Unrealized Losses | ||
12 months or greater | (446) | (120) |
Totals | (446) | (120) |
Corporate debt securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 9,848 | |
Totals | 9,848 | |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (152) | |
Totals | (152) | |
Residential mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 10,751 | |
12 months or greater, fair value | 1,972 | 30,292 |
Totals | 1,972 | 41,043 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (78) | |
12 months or greater | (16) | (398) |
Totals | $ (16) | $ (476) |
Securities - Narrative (Details
Securities - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | |
Securities | |||||
Number of available-for-sale securities in unrealized loss position | security | 6 | 6 | 77 | ||
Number of held for maturity securities in unrealized loss position | security | 8 | 8 | 35 | ||
Carrying value of investment securities pledged to secure public funds and other borrowings | $ 31,200 | $ 32,300 | $ 31,200 | $ 32,300 | |
Investment securities available for sale | 271,829 | 271,829 | $ 282,461 | ||
Interest Receivable | 2,000 | 2,000 | 796 | ||
Debt securities classified as non-accrual | 0 | 0 | |||
Debt securities classified as past due over 89 days and still accruing | 0 | 0 | |||
Proceeds from sales | 54,938 | 54,938 | |||
Impairment of securities in unrealized loss position | 0 | $ 0 | 0 | 0 | |
Impairments on SBICs | 26 | ||||
SBIC Investments | |||||
Securities | |||||
Investment securities available for sale | $ 5,100 | 5,100 | $ 4,700 | ||
Impairments on SBICs | $ 0 | $ 26 |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Securities | ||
Proceeds from sales | $ 54,938 | $ 54,938 |
Gross realized gains | 1,122 | 1,122 |
Gross realized losses | (468) | (468) |
Net gains (losses) on sales of securities | $ 654 | $ 654 |
Loans and Allowance for credi_2
Loans and Allowance for credit losses - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for sale - continuing operations | $ 1,153 | $ 370 | |||||
Total loans held for sale | 1,153 | 370 | |||||
Loans held for investment | 2,194,455 | 1,876,558 | |||||
Less net deferred fees and other unearned income | (9,761) | (3,034) | |||||
Less allowance for credit losses on loans | (31,605) | $ (24,896) | $ (17,681) | (18,535) | $ (18,186) | $ (18,107) | $ (17,851) |
Loans held for investment, net | 2,153,089 | 1,854,989 | |||||
Commercial real estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for credit losses on loans | (6,868) | ||||||
Construction and land | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for credit losses on loans | (1,819) | ||||||
Mortgage warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for credit losses on loans | (8) | ||||||
Residential mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for credit losses on loans | (108) | ||||||
Home equity | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Less allowance for credit losses on loans | (121) | ||||||
Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 22,160 | 19,552 | |||||
Less allowance for credit losses on loans | $ (78) | ||||||
Commercial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 2,003,130 | 1,762,924 | |||||
Less allowance for credit losses on loans | (30,834) | (23,830) | (18,203) | (17,817) | (17,397) | (17,322) | |
Commercial | Commercial and industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 973,818 | 705,115 | |||||
Commercial | Commercial real estate | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 900,321 | 916,328 | |||||
Commercial | Construction and land | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 128,991 | 127,540 | |||||
Commercial | Mortgage warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 13,941 | ||||||
Residential | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 56,016 | 56,317 | |||||
Less allowance for credit losses on loans | (517) | (415) | (145) | (164) | (447) | (292) | |
Residential | Mortgage warehouse | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 13,941 | ||||||
Residential | Residential mortgages | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 32,327 | 31,315 | |||||
Residential | Home equity | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 23,689 | 25,002 | |||||
Consumer | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | 113,149 | 37,765 | |||||
Less allowance for credit losses on loans | (254) | $ (651) | (187) | $ (205) | $ (263) | $ (237) | |
Consumer | Other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Loans held for investment | $ 22,160 | $ 57,317 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral | $ 358,900,000 | $ 358,900,000 | $ 729,600,000 | ||
Remaining accretable fair value discount | 313,000 | 313,000 | 279,000 | ||
Recorded investment in TDRs | 14,600,000 | 14,600,000 | 13,200,000 | ||
Allowance for loans | 793,000 | 793,000 | |||
Accrued interest | 2,000,000 | $ 2,000,000 | 796,000 | ||
Number of loans | loan | 3 | 2 | 8 | ||
Interest income on nonaccrual loans | 51,000 | $ 105,000 | $ 82,000 | $ 168,000 | |
Other assets | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Accrued interest | 9,300,000 | 9,300,000 | |||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Recorded investment in TDRs | $ 320,000 | $ 320,000 | |||
Number of loans modified under TDR | loan | 2 | 2 | |||
Interest income on nonaccrual loans | $ 2,481,000 | ||||
Commercial | Commercial real estate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Commitments to lend additional funds | $ 0 | $ 0 | $ 4,000 | ||
Commercial | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | loan | 3 | 1 | 6 | ||
Interest income on nonaccrual loans | $ 2,481,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance, prior to adoption of ASC 326 | $ 24,896 | $ 18,107 | $ 18,535 | $ 17,851 |
Provision for credit losses | 8,222 | 698 | 15,631 | 1,512 |
Loans charged-off | (1,515) | (635) | (1,736) | (1,230) |
Recoveries | 2 | 16 | 29 | 53 |
Total ending allowance balance | 31,605 | 18,186 | 31,605 | 18,186 |
Restatement Adjustment | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Impact of adoption of ASC 326 | (854) | |||
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance, prior to adoption of ASC 326 | 23,830 | 17,397 | 18,203 | 17,322 |
Provision for credit losses | 8,482 | 1,055 | 15,134 | 1,662 |
Loans charged-off | (1,479) | (635) | (1,575) | (1,184) |
Recoveries | 1 | 19 | 17 | |
Total ending allowance balance | 30,834 | 17,817 | 30,834 | 17,817 |
Commercial | Restatement Adjustment | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Impact of adoption of ASC 326 | (947) | |||
Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance, prior to adoption of ASC 326 | 415 | 447 | 145 | 292 |
Provision for credit losses | 138 | (283) | 524 | (127) |
Loans charged-off | (36) | (161) | (9) | |
Recoveries | 1 | 8 | ||
Total ending allowance balance | 517 | 164 | 517 | 164 |
Residential | Restatement Adjustment | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Impact of adoption of ASC 326 | 8 | |||
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance, prior to adoption of ASC 326 | 651 | 263 | 187 | 237 |
Provision for credit losses | (398) | (74) | (27) | (23) |
Loans charged-off | (37) | |||
Recoveries | 1 | 16 | 9 | 28 |
Total ending allowance balance | $ 254 | $ 205 | 254 | $ 205 |
Consumer | Restatement Adjustment | ASU 2016-13 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Impact of adoption of ASC 326 | $ 85 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 3 | 2 | 8 | |
Pre-Modification Outstanding Recorded Investment | $ 382 | $ 2,012 | $ 2,161 | |
Post-Modification Outstanding Recorded Investment | $ 382 | 2,012 | $ 2,161 | |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Decrease in allowance for credit losses as a result of the TDRs that subsequently defaulted | $ 20 | $ 20 | ||
Commercial | Commercial and industrial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 3 | 1 | 6 | |
Pre-Modification Outstanding Recorded Investment | $ 382 | $ 67 | $ 1,235 | |
Post-Modification Outstanding Recorded Investment | $ 382 | $ 67 | $ 1,235 | |
Commercial | Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Loans | loan | 1 | 2 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,945 | $ 926 | ||
Post-Modification Outstanding Recorded Investment | $ 1,945 | $ 926 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Risk Category of Loan by Class of Loan (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Impaired [Line Items] | ||
2020 | $ 409,439 | |
2019 | 426,646 | |
2018 | 335,381 | |
2017 | 169,921 | |
2016 | 200,381 | |
Prior | 384,213 | |
Revolving Loans Amortized Cost Basis | 268,474 | |
Total | 2,194,455 | $ 1,876,558 |
Accruing Current | 2,181,275 | 1,863,129 |
Financing Receivable, Nonaccrual | 5,930 | 7,208 |
Financing Receivable, before Allowance for Credit Loss | 2,194,455 | 1,876,558 |
Other | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 22,160 | 19,552 |
Pass | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 408,742 | |
2019 | 388,807 | |
2018 | 299,008 | |
2017 | 160,860 | |
2016 | 188,763 | |
Prior | 356,995 | |
Revolving Loans Amortized Cost Basis | 233,534 | |
Total | 2,036,709 | 1,793,033 |
Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 697 | |
2019 | 24,036 | |
2018 | 29,660 | |
2017 | 3,386 | |
2016 | 10,533 | |
Prior | 4,570 | |
Revolving Loans Amortized Cost Basis | 30,546 | |
Total | 103,428 | 46,162 |
Substandard | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 13,461 | |
2018 | 6,713 | |
2017 | 5,675 | |
2016 | 1,085 | |
Prior | 22,952 | |
Revolving Loans Amortized Cost Basis | 4,394 | |
Total | 54,280 | |
Substandard | Accruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 30,155 | |
Substandard | Nonaccruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 7,104 | |
Doubtful Nonaccruing | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 342 | |
Prior | (304) | |
Total | 38 | 104 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 2,003,130 | 1,762,924 |
Financing Receivable, Nonaccrual | 5,930 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 322,442 | |
2019 | 168,231 | |
2018 | 140,930 | |
2017 | 54,086 | |
2016 | 39,943 | |
Prior | 25,046 | |
Revolving Loans Amortized Cost Basis | 223,140 | |
Total | 973,818 | 705,115 |
Accruing Current | 967,048 | 695,026 |
Financing Receivable, Nonaccrual | 5,658 | 5,990 |
Financing Receivable, before Allowance for Credit Loss | 973,818 | 705,115 |
Commercial | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 48,120 | |
2019 | 184,407 | |
2018 | 148,763 | |
2017 | 110,456 | |
2016 | 150,447 | |
Prior | 249,101 | |
Revolving Loans Amortized Cost Basis | 9,027 | |
Total | 900,321 | 916,328 |
Accruing Current | 899,800 | 914,787 |
Financing Receivable, Nonaccrual | 157 | 262 |
Financing Receivable, before Allowance for Credit Loss | 900,321 | 916,328 |
Commercial | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 34,958 | |
2019 | 61,686 | |
2018 | 24,113 | |
2016 | 4,407 | |
Prior | 1,982 | |
Revolving Loans Amortized Cost Basis | 1,845 | |
Total | 128,991 | 127,540 |
Accruing Current | 128,991 | 127,540 |
Financing Receivable, Nonaccrual | 5,815 | |
Financing Receivable, before Allowance for Credit Loss | 128,991 | 127,540 |
Commercial | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing Receivable, Nonaccrual | 115 | |
Commercial | Mortgage warehouse | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 13,941 | |
Accruing Current | 13,941 | |
Financing Receivable, before Allowance for Credit Loss | 13,941 | |
Commercial | Pass | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 322,442 | |
2019 | 160,555 | |
2018 | 112,710 | |
2017 | 50,353 | |
2016 | 38,884 | |
Prior | 18,496 | |
Revolving Loans Amortized Cost Basis | 188,250 | |
Total | 891,690 | 648,895 |
Commercial | Pass | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 48,120 | |
2019 | 169,996 | |
2018 | 141,651 | |
2017 | 106,354 | |
2016 | 139,914 | |
Prior | 228,636 | |
Revolving Loans Amortized Cost Basis | 8,977 | |
Total | 843,648 | 891,078 |
Commercial | Pass | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 34,958 | |
2019 | 52,732 | |
2018 | 24,113 | |
2016 | 4,407 | |
Prior | 1,982 | |
Revolving Loans Amortized Cost Basis | 1,845 | |
Total | 120,037 | 127,540 |
Commercial | Special Mention | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 5,405 | |
2018 | 23,277 | |
2017 | 1,519 | |
Prior | 349 | |
Revolving Loans Amortized Cost Basis | 30,546 | |
Total | 61,096 | 40,179 |
Commercial | Special Mention | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 2,879 | |
2018 | 5,521 | |
2017 | 1,099 | |
2016 | 10,533 | |
Prior | 4,221 | |
Total | 24,253 | 5,483 |
Commercial | Special Mention | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 8,954 | |
Total | 8,954 | |
Commercial | Substandard | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 1,929 | |
2018 | 4,943 | |
2017 | 2,214 | |
2016 | 1,059 | |
Prior | 6,505 | |
Revolving Loans Amortized Cost Basis | 4,344 | |
Total | 20,994 | |
Commercial | Substandard | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 11,532 | |
2018 | 1,591 | |
2017 | 3,003 | |
Prior | 16,244 | |
Revolving Loans Amortized Cost Basis | 50 | |
Total | 32,420 | |
Commercial | Substandard | Accruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 10,051 | |
Commercial | Substandard | Accruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 19,504 | |
Commercial | Substandard | Nonaccruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 5,990 | |
Commercial | Substandard | Nonaccruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 263 | |
Commercial | Doubtful Nonaccruing | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 342 | |
Prior | (304) | |
Total | 38 | |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 56,016 | 56,317 |
Residential | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 3,669 | |
2019 | 3,241 | |
2018 | 16,728 | |
2017 | 2,745 | |
2016 | 5,282 | |
Prior | 435 | |
Revolving Loans Amortized Cost Basis | 227 | |
Total | 32,327 | 31,315 |
Accruing Current | 29,814 | 30,352 |
Financing Receivable, Nonaccrual | 115 | 256 |
Financing Receivable, before Allowance for Credit Loss | 32,327 | 31,315 |
Residential | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Revolving Loans Amortized Cost Basis | 23,689 | |
Total | 23,689 | 25,002 |
Accruing Current | 23,689 | 24,302 |
Financing Receivable, Nonaccrual | 700 | |
Financing Receivable, before Allowance for Credit Loss | 23,689 | 25,002 |
Residential | Mortgage warehouse | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 13,941 | |
Residential | Pass | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 2,972 | |
2019 | 3,241 | |
2018 | 15,687 | |
2017 | 1,977 | |
2016 | 5,256 | |
Prior | 232 | |
Revolving Loans Amortized Cost Basis | 227 | |
Total | 29,592 | 30,941 |
Residential | Pass | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Revolving Loans Amortized Cost Basis | 23,689 | |
Total | 23,689 | 24,302 |
Residential | Pass | Mortgage warehouse | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 13,941 | |
Residential | Special Mention | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 697 | |
2018 | 862 | |
2017 | 768 | |
Total | 2,327 | |
Residential | Substandard | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
2018 | 179 | |
2016 | 26 | |
Prior | 203 | |
Total | 408 | |
Residential | Substandard | Accruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 119 | |
Residential | Substandard | Nonaccruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 151 | |
Residential | Substandard | Nonaccruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 700 | |
Residential | Doubtful Nonaccruing | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Total | 104 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 250 | |
2019 | 2,283 | |
2018 | 53 | |
2017 | 64 | |
2016 | 70 | |
Prior | 106,865 | |
Revolving Loans Amortized Cost Basis | 3,564 | |
Total | 113,149 | 37,765 |
Consumer | Other | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 6,798 | |
2018 | 4,794 | |
2017 | 2,570 | |
2016 | 232 | |
Prior | 784 | |
Revolving Loans Amortized Cost Basis | 6,982 | |
Total | 22,160 | 57,317 |
Accruing Current | 131,933 | 57,181 |
Financing Receivable, before Allowance for Credit Loss | 135,309 | 57,317 |
Consumer | Pass | ||
Financing Receivable, Impaired [Line Items] | ||
2020 | 250 | |
2019 | 2,283 | |
2018 | 53 | |
2017 | 64 | |
2016 | 70 | |
Prior | 106,865 | |
Revolving Loans Amortized Cost Basis | 3,564 | |
Total | 113,149 | |
Consumer | Pass | Other | ||
Financing Receivable, Impaired [Line Items] | ||
2018 | 4,794 | |
2017 | 2,112 | |
2016 | 232 | |
Prior | 784 | |
Revolving Loans Amortized Cost Basis | 6,982 | |
Total | 14,904 | 56,336 |
Consumer | Special Mention | Other | ||
Financing Receivable, Impaired [Line Items] | ||
2019 | 6,798 | |
Total | 6,798 | 500 |
Consumer | Substandard | Other | ||
Financing Receivable, Impaired [Line Items] | ||
2017 | 458 | |
Total | $ 458 | |
Consumer | Substandard | Accruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Total | $ 481 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with Allowance for Credit Losses | $ 51,000 | $ 105,000 | $ 82,000 | $ 168,000 | |
Nonaccruing | 5,930,000 | 5,930,000 | $ 7,208,000 | ||
Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with no Allowance for Credit Losses | 3,449,000 | 3,449,000 | |||
Nonaccrual with Allowance for Credit Losses | 2,481,000 | ||||
Nonaccruing | 5,930,000 | 5,930,000 | |||
Loans Past Due Over 89 Days Still Accruing | 335,000 | 335,000 | |||
Commercial and industrial | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with no Allowance for Credit Losses | 3,177,000 | 3,177,000 | |||
Nonaccrual with Allowance for Credit Losses | 2,481,000 | ||||
Nonaccruing | 5,658,000 | 5,658,000 | 5,990,000 | ||
Commercial real estate | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with no Allowance for Credit Losses | 157,000 | 157,000 | |||
Nonaccruing | 157,000 | 157,000 | $ 262,000 | ||
Construction and land | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with no Allowance for Credit Losses | 3,334,000 | 3,334,000 | |||
Nonaccrual with Allowance for Credit Losses | 2,481,000 | ||||
Nonaccruing | 5,815,000 | 5,815,000 | |||
Residential mortgages | Commercial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Nonaccrual with no Allowance for Credit Losses | 115,000 | 115,000 | |||
Nonaccruing | 115,000 | 115,000 | |||
Loans Past Due Over 89 Days Still Accruing | $ 335,000 | $ 335,000 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Collateral dependent impaired loans (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | $ 4,908 |
Real property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 2,587 |
Equipment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 653 |
Business assets | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 192 |
SBA Guaranty-75% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 1,476 |
Commercial and industrial | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 4,636 |
Commercial and industrial | Real property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 2,424 |
Commercial and industrial | Equipment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 544 |
Commercial and industrial | Business assets | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 192 |
Commercial and industrial | SBA Guaranty-75% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 1,476 |
Commercial real estate | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 157 |
Commercial real estate | Real property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 48 |
Commercial real estate | Equipment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 109 |
Construction and land | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 4,793 |
Construction and land | Real property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 2,472 |
Construction and land | Equipment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 653 |
Construction and land | Business assets | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 192 |
Construction and land | SBA Guaranty-75% | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 1,476 |
Residential mortgages | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | 115 |
Residential mortgages | Real property | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total | $ 115 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | $ 5,930 | $ 7,208 |
Total Past Due and Accruing | 13,180 | 13,429 |
Not Past Due | 2,181,275 | 1,863,129 |
Total | 2,194,455 | 1,876,558 |
Financial Receivable 30 to 59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 5,344 | 6,106 |
Financial Receivable 60 to 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 1,571 | 30 |
Financing Receivables Greater Than 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 335 | 85 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 5,930 | |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 5,658 | 5,990 |
Total Past Due and Accruing | 6,770 | 10,089 |
Not Past Due | 967,048 | 695,026 |
Total | 973,818 | 705,115 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 157 | 262 |
Total Past Due and Accruing | 521 | 1,541 |
Not Past Due | 899,800 | 914,787 |
Total | 900,321 | 916,328 |
Commercial | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 5,815 | |
Total Past Due and Accruing | 0 | |
Not Past Due | 128,991 | 127,540 |
Total | 128,991 | 127,540 |
Commercial | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 115 | |
Commercial | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Accruing | 0 | |
Not Past Due | 13,941 | |
Total | 13,941 | |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 828 | 4,069 |
Commercial | Financial Receivable 30 to 59 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 1,194 | |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 284 | 30 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 364 | 0 |
Commercial | Financial Receivable 60 to 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Commercial | Financial Receivable 60 to 89 Days Past Due | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 85 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Commercial | Financing Receivables Greater Than 89 Days Past Due | Mortgage warehouse | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Residential | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 115 | 256 |
Total Past Due and Accruing | 2,513 | 963 |
Not Past Due | 29,814 | 30,352 |
Total | 32,327 | 31,315 |
Residential | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Nonaccruing | 700 | |
Total Past Due and Accruing | 700 | |
Not Past Due | 23,689 | 24,302 |
Total | 23,689 | 25,002 |
Residential | Financial Receivable 30 to 59 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 2,063 | 707 |
Residential | Financial Receivable 60 to 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Residential | Financial Receivable 60 to 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Residential | Financing Receivables Greater Than 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 335 | 0 |
Residential | Financing Receivables Greater Than 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 0 | |
Consumer | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due and Accruing | 3,376 | 136 |
Not Past Due | 131,933 | 57,181 |
Total | 135,309 | 57,317 |
Consumer | Financial Receivable 30 to 59 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | 2,453 | 136 |
Consumer | Financial Receivable 60 to 89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | $ 923 | 0 |
Consumer | Financing Receivables Greater Than 89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Past due | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Purchase and Sale of loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
SBA Sales | $ 11,539 | $ 17,938 |
Total Loans | 11,539 | 17,938 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
SBA Sales | 10,205 | 16,169 |
Total Loans | 10,205 | 16,169 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
SBA Sales | 1,334 | 1,492 |
Total Loans | $ 1,334 | 1,492 |
Residential mortgages | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
SBA Sales | 277 | |
Total Loans | $ 277 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Goodwill and Intangible Assets | ||
Goodwill impairment | $ 1,765 | $ 1,765 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill | ||||
Balance, beginning of period | $ 19,925 | $ 21,690 | $ 19,925 | $ 21,690 |
Amortization | ||||
Impairment, due to Branch Sale | (1,765) | (1,765) | ||
Balance, end of period | 19,925 | 19,925 | 19,925 | 19,925 |
Core Deposit Intangible | ||||
Amortization | (247) | |||
Total | ||||
Balance, beginning of period | 19,925 | 22,848 | 19,925 | 23,095 |
Amortization | (247) | |||
Goodwill and core deposit intangible, Impairment | (2,923) | (2,923) | ||
Balance, end of period | 19,925 | 19,925 | 19,925 | 19,925 |
Core Deposit Intangible | ||||
Core Deposit Intangible | ||||
Balance, beginning of period | ||||
Amortization | (247) | |||
Impairment, due to Branch Sale | (1,158) | (1,158) | ||
Balance, end of period | 1,158 | 1,405 | ||
Total | ||||
Amortization | $ (247) |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Servicing Assets | ||
Loans sold and serviced | $ 181.5 | $ 185.5 |
Servicing Assets - Changes in t
Servicing Assets - Changes in the Balance of Servicing Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
TriNet Servicing Assets | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | $ 262 | $ 406 | $ 296 | $ 444 |
Amortization | (34) | (37) | (68) | (75) |
Ending carrying value | 228 | 369 | 228 | 369 |
SBA Loan Servicing Assets | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | 2,523 | 2,677 | 2,731 | 2,539 |
Additions | 197 | 327 | 302 | 625 |
Amortization | (217) | (278) | (530) | (438) |
Ending carrying value | $ 2,503 | $ 2,726 | $ 2,503 | $ 2,726 |
Servicing Assets - Sensitivity
Servicing Assets - Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
TriNet Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 379 | $ 414 |
Weighted average life | 5 years 1 month 6 days | 5 years 6 months 29 days |
Prepayment speed (as a percent) | 5.00% | 5.00% |
Decline in fair value due to a 10% adverse change | $ (4) | $ (5) |
Decline in fair value due to a 20% adverse change | $ (8) | $ (10) |
Weighted average discount rate | 8.00% | 8.00% |
Decline in fair value due to a 100 bps adverse change | $ (8) | $ (9) |
Decline in fair value due to a 200 bps adverse change | (15) | (18) |
SBA Loan Servicing Assets | ||
Loan Servicing Assets | ||
Fair value of retained servicing assets | $ 2,654 | $ 2,842 |
Weighted average life | 3 years 3 months 14 days | 3 years 9 months 7 days |
Prepayment speed (as a percent) | 17.49% | 14.87% |
Decline in fair value due to a 10% adverse change | $ (97) | $ (150) |
Decline in fair value due to a 20% adverse change | $ (202) | $ (254) |
Weighted average discount rate | 12.78% | 13.66% |
Decline in fair value due to a 100 bps adverse change | $ (39) | $ (98) |
Decline in fair value due to a 200 bps adverse change | $ (93) | $ (156) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Pre-Tax Amount | ||||
Reclassification adjustment for net realized (gains) losses on investment securities available-for-sale | $ (654) | $ (654) | ||
Income Tax (Expense) Benefit | ||||
Reclassification adjustment for net realized losses on investment securities available-for-sale | 164 | 164 | ||
After-Tax Amount | ||||
Beginning balance | $ 332,300 | 320,627 | $ 326,495 | 323,653 |
Reclassification adjustment for net realized losses on investment securities available-for-sale | (490) | (490) | ||
Other comprehensive income, net of tax | 1,544 | 6,491 | 11,329 | 13,886 |
Ending balance | 335,980 | 336,715 | 335,980 | 336,715 |
Accumulated Other Comprehensive Income (Loss) | ||||
Pre-Tax Amount | ||||
Beginning balance | 19,057 | (3,882) | 6,081 | (13,743) |
Ending balance | 21,108 | 4,774 | 21,108 | 4,774 |
Income Tax (Expense) Benefit | ||||
Beginning balance | (4,711) | 972 | (1,520) | 3,438 |
Ending balance | (5,218) | (1,193) | (5,218) | (1,193) |
After-Tax Amount | ||||
Beginning balance | 14,346 | (2,910) | 4,561 | (10,305) |
Ending balance | 15,890 | 3,581 | 15,890 | 3,581 |
Accumulated Net Investment Gain (Loss) from Available-for-Sale Securities | ||||
Pre-Tax Amount | ||||
Unrealized net gains (losses) on investment securities available-for-sale | 1,331 | 6,090 | 5,726 | 14,562 |
Income Tax (Expense) Benefit | ||||
Unrealized net gains (losses) on investment securities available-for-sale | (329) | (1,524) | (1,407) | (3,642) |
After-Tax Amount | ||||
Unrealized net gains (losses) on investment securities available-for-sale | 1,002 | 4,566 | 4,319 | 10,920 |
Derivatives | ||||
Pre-Tax Amount | ||||
Unrealized net gains (losses) on derivatives | 720 | 3,220 | 9,301 | 4,609 |
Income Tax (Expense) Benefit | ||||
Unrealized net gains (losses) on derivatives | (178) | (805) | (2,291) | (1,153) |
After-Tax Amount | ||||
Other comprehensive income, net of tax | $ 542 | $ 2,415 | $ 7,010 | $ 3,456 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Common Share | ||||
Net income from continuing operations | $ 1,849 | $ 7,009 | $ 3,973 | $ 13,449 |
Net income from discontinued operations | 22,143 | 21,080 | ||
Net income available to common shareholders | $ 1,849 | $ 29,152 | $ 3,973 | $ 34,529 |
Weighted average shares outstanding | ||||
Basic (in shares) | 21,472,462 | 23,888,381 | 21,580,855 | 24,369,106 |
Effect of dilutive securities: | ||||
Stock options and performance share awards (in shares) | 62,578 | 152,425 | 107,857 | 158,286 |
Diluted (in shares) | 21,535,040 | 24,040,806 | 21,688,712 | 24,527,392 |
Net income per common share - basic | ||||
Net income per common share - continuing operations | $ 0.09 | $ 0.29 | $ 0.18 | $ 0.55 |
Net income per common share - discontinued operations | 0.93 | 0.87 | ||
Net income per common share - basic | 0.09 | 1.22 | 0.18 | 1.42 |
Net income per common share diluted | ||||
Net income per common share - continuing operations | 0.09 | 0.29 | 0.18 | 0.55 |
Net income per common share - discontinued operations | 0.92 | 0.86 | ||
Net income per common share - diluted | $ 0.09 | $ 1.21 | $ 0.18 | $ 1.41 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 04, 2020 | Dec. 31, 2019 | Mar. 24, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Antidilutive securities excluded (in shares) | 109,446 | 150 | ||||||
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 | ||||
Preferred stock outstanding (in shares) | 0 | 0 | 0 | |||||
Preferred stock par value | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Common stock par value | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||
Common stock issued (in shares) | 21,477,631 | 21,477,631 | 21,751,026 | |||||
Common stock outstanding (in shares) | 21,477,631 | 21,477,631 | 21,751,026 | |||||
Dividends paid | $ 0 | $ 26,500 | $ 12,500 | $ 26,500 | ||||
Authorized amount under stock repurchase program | $ 85,000 | $ 25,000 | ||||||
Authorized amount available under the stock repurchase program at commencement of the program | 15,000 | |||||||
Amount of authorized stock repurchases under the stock repurchase program subject to regulatory approval | $ 10,000 | |||||||
Stock repurchased | $ 19,543 | $ 7,411 | $ 36,618 | |||||
Stock repurchased (in shares) | 418,858 | |||||||
Stock repurchased program | $ 7,400 | |||||||
Buy Back Program | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Stock repurchased (in shares) | 114,592 | |||||||
Stock repurchased program | $ 1,600 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||||
Notional Amount | $ 6,700,000 | $ 6,700,000 | $ 7,700,000 | ||
Expected reclassification to loan interest income | 1,700,000 | 1,700,000 | |||
Collateral posted | 13,900,000 | 13,900,000 | 13,600,000 | ||
Derivatives not designated as hedging instruments under ASC 815 | Other assets | |||||
Derivative [Line Items] | |||||
Notional Amount | 109,126,000 | 109,126,000 | 119,325,000 | ||
Swap | Derivatives designated as hedging instruments under ASC 815 | |||||
Derivative [Line Items] | |||||
Notional Amount | 146,500,000 | 146,500,000 | 149,100,000 | ||
Swap | Derivatives not designated as hedging instruments under ASC 815 | |||||
Derivative [Line Items] | |||||
Notional Amount | 71,700,000 | 71,700,000 | 89,500,000 | ||
Swap | Derivatives not designated as hedging instruments under ASC 815 | Other assets | |||||
Derivative [Line Items] | |||||
Notional Amount | 35,861,000 | 35,861,000 | 44,763,000 | ||
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 | 125,000,000 | 125,000,000 | 175,000,000 | ||
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 | $ 125,000,000 |
Derivatives and Hedging (Deriva
Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Notional Amount | $ 6,700 | $ 7,700 |
Derivatives designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 146,500 | 149,100 |
Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 125,000 | 175,000 |
Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 71,700 | 89,500 |
Other assets | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 125,000 | 125,000 |
Fair Value | 12,790 | 3,578 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 109,126 | 119,325 |
Fair Value | 12,887 | 5,278 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 35,861 | 44,763 |
Fair Value | 2,366 | 1,025 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 73,265 | 74,562 |
Fair Value | 10,521 | 4,253 |
Other liabilities | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 50,000 | |
Fair Value | 8 | |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 115,845 | 126,982 |
Fair Value | 13,012 | 5,639 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 35,861 | 44,763 |
Fair Value | 2,400 | 1,090 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offset to zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 73,265 | 74,562 |
Fair Value | 10,601 | 4,545 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Credit risk participation | ||
Derivative [Line Items] | ||
Notional Amount | 6,719 | 7,657 |
Fair Value | $ 11 | $ 4 |
Derivatives and Hedging (Impact
Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | $ 654 | $ 654 | ||
Cash Flow Hedging | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 3,669 | 1,823 | $ 9,268 | 3,091 |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | (510) | (8) | (652) | (129) |
Derivatives not designated as hedging instruments under ASC 815 | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | 10 | (233) | (236) | (344) |
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 OCI on Derivatives (Effective Portion) | 12 | (231) | (242) | (341) |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Other contracts | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ (2) | $ (2) | $ 6 | $ (3) |
Other Borrowings and Long Ter_3
Other Borrowings and Long Term Debt - FHLB Borrowings (Details) - FHLB short-term borrowings $ in Thousands | Jun. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
FHLB advances | $ 50,000 |
Fixed rate advance maturing July 14, 2020 | |
Debt Instrument [Line Items] | |
FHLB advances | $ 50,000 |
Interest Rate | 0.27% |
Other Borrowings and Long Ter_4
Other Borrowings and Long Term Debt - Narrative (Details) - USD ($) | Sep. 28, 2015 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Other Borrowings and Long-Term Debt | ||||||
Interest expense for FHLB borrowings | $ 38,000 | $ 270,000 | $ 38,000 | $ 270,000 | ||
FHLB Advances | 50,000,000 | 50,000,000 | ||||
Available line of credit commitments | 815,800,000 | 815,800,000 | ||||
Available line of credit based on collateral available | 140,200,000 | 140,200,000 | ||||
Interest expense, federal funds purchased | 6,000 | $ 168,000 | 38,000 | $ 286,000 | ||
Subordinated Debt | ||||||
Other Borrowings and Long-Term Debt | ||||||
Aggregate principal amount | 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||
Subordinated Debt | Minimum | ||||||
Other Borrowings and Long-Term Debt | ||||||
Debt instrument term | 5 years | |||||
Subordinated Note After September 30, 2020 Due September 2025 | Subordinated Debt | ||||||
Other Borrowings and Long-Term Debt | ||||||
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 | ||||||
Other Borrowings and Long-Term Debt | ||||||
Available line of credit based on collateral available | $ 218,700,000 | $ 218,700,000 | ||||
FHLB short-term borrowings | ||||||
Other Borrowings and Long-Term Debt | ||||||
FHLB advances | $ 50,000,000 | $ 50,000,000 |
Other Borrowings and Long Ter_5
Other Borrowings and Long Term Debt - Subordinated Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Subordinated debt, net | $ 49,958 | $ 49,873 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Principal amount | 50,000 | 50,000 |
Less debt issuance costs | 42 | 127 |
Subordinated debt, net | $ 49,958 | $ 49,873 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term (in years) | 2 years 21 days | |||
Fair value of vested option shares | $ 0 | $ 137,000 | ||
Restricted stock awards granted (in shares) | 0 | |||
Total incremental cost resulting from modifications | 31,000 | |||
Restricted stock and performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 632,000 | $ 216,000 | $ 1,000,000 | 707,000 |
Unrecognized compensation cost | $ 2,900,000 | $ 2,400,000 | $ 2,900,000 | $ 2,400,000 |
Weighted-average period of recognition | 2 years 2 months 1 day | 2 years 2 months 1 day | ||
Restricted stock awards granted (in shares) | 18,717 | 25,743 | 142,550 | 130,093 |
Granted/modified (dollars per share) | $ 11.38 | $ 17.54 | $ 18.13 | $ 19.54 |
Stock options and warrants | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 17,000 | $ 52,000 | $ 35,000 | $ 133,000 |
Unrecognized compensation cost | $ 24,000 | $ 95,000 | $ 24,000 | $ 95,000 |
Weighted-average period of recognition | 3 months 18 days | 1 year 4 months 24 days | ||
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted stock awards granted (in shares) | 142,550 | |||
Granted/modified (dollars per share) | $ 18.13 | |||
Options modified during period (in shares) | 4,719 | |||
Restricted stock awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 1 year | |||
Restricted stock awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average remaining contractual term (in years) | 2 years 1 month 6 days | |||
Options modified during period (in shares) | 12,500 | |||
2015 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | 4,525,000 | 4,525,000 | ||
Additional awards available to be granted (in shares) | 3,111,000 | |||
Award vesting period | 3 years | |||
Expiration period | 10 years |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Options Assumptions (Details) - Employee Stock Option | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 2.27% |
Expected stock price volatility | 26.80% |
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 25 days |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option and Warrant Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | shares | 318,980 |
Exercised (in shares) | shares | (60,940) |
Expired (in shares) | shares | (94) |
Outstanding, End of period (in shares) | shares | 257,946 |
Exercisable (in shares) | shares | 247,946 |
Weighted Average Exercise Price | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 11.47 |
Exercised (dollars per share) | $ / shares | 10.82 |
Expired (dollars per share) | $ / shares | 102.12 |
Outstanding, End of period (dollars per share) | $ / shares | 11.59 |
Exercisable (dollars per share) | $ / shares | $ 11.45 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted average remaining contractual term (in years) | 2 years 21 days |
Exercisable, Weighted average remaining contractual term (in years) | 1 year 11 months 4 days |
Outstanding, Aggregate intrinsic value | $ | $ 284 |
Exercisable, Aggregate intrinsic value | $ | $ 284 |
Employee Stock Option | |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted average remaining contractual term (in years) | 2 years 1 month 6 days |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Shares | |
Granted/modified (in shares) | 0 |
Restricted stock awards | |
Shares | |
Outstanding, Beginning of period (in shares) | 292,877 |
Granted/modified (in shares) | 142,550 |
Vested (in shares) | (98,991) |
Forfeited (in shares) | (5,661) |
Outstanding, End of period (in shares) | 330,775 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 19 |
Granted/modified (dollars per share) | $ / shares | 18.13 |
Vested (dollars per share) | $ / shares | 17.60 |
Forfeited (dollars per share) | $ / shares | 18.67 |
Outstanding, Ending of period (dollars per share) | $ / shares | $ 19.05 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 271,829 | $ 282,461 |
Interest rate derivative assets | 25,677 | 8,856 |
Interest rate derivative liabilities | 13,012 | 5,647 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 271,829 | 282,461 |
Interest rate derivative assets | 25,677 | 8,856 |
Interest rate derivative liabilities | 13,012 | 5,647 |
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 | 271,829 | 282,461 |
Interest rate derivative assets | 25,677 | 8,856 |
Interest rate derivative liabilities | 13,012 | 5,647 |
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. 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 | 83,142 | 82,485 |
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 | 83,142 | 82,485 |
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 | 4,375 | 4,688 |
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 | 4,375 | 4,688 |
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 | 19,683 | 19,920 |
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 | 19,683 | 19,920 |
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 | 164,629 | 175,368 |
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 | $ 164,629 | $ 175,368 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Nonrecurring (Details) - Impaired Loans - Fair Value - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,680 | $ 4,288 |
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 | |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,680 | $ 4,288 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Cash and due from banks | $ 33,759 | $ 45,249 |
Interest bearing deposits in banks | 33,038 | 421,079 |
Total securities available-for-sale | 271,829 | 282,461 |
Total securities held to maturity | 185,933 | 116,972 |
Loans held for investment, net | 2,153,089 | 1,854,989 |
Derivative assets | 25,677 | 8,856 |
Financial liabilities | ||
Subordinated debt | 49,958 | 49,873 |
Derivative financial instruments | 13,012 | 5,647 |
Fair value, measurements, recurring | Carrying Value | ||
Financial assets | ||
Cash and due from banks | 33,759 | 45,249 |
Interest bearing deposits in banks | 33,038 | 421,079 |
Total securities available-for-sale | 271,829 | 282,461 |
Total securities held to maturity | 185,920 | 116,972 |
FHLB stock | 4,744 | 2,680 |
Federal Reserve Bank stock | 10,029 | 9,998 |
Loans held for investment, net | 2,184,694 | 1,873,524 |
Derivative assets | 25,677 | 8,856 |
Financial liabilities | ||
Deposits | 2,407,631 | 2,499,046 |
Federal funds purchased | 6,000 | |
FHLB advances | 50,000 | |
Subordinated debt | 49,958 | 49,873 |
Loans held for sale | 370 | |
Derivative financial instruments | 13,012 | 5,647 |
Fair value, measurements, recurring | Fair Value | ||
Financial assets | ||
Total securities available-for-sale | 271,829 | 282,461 |
Derivative assets | 25,677 | 8,856 |
Financial liabilities | ||
Derivative financial instruments | 13,012 | 5,647 |
Fair value, measurements, recurring | Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Financial assets | ||
Cash and due from banks | 33,759 | 45,249 |
Interest bearing deposits in banks | 33,038 | 421,079 |
Total securities available-for-sale | 0 | |
Total securities held to maturity | 0 | |
FHLB stock | 0 | |
Federal Reserve Bank stock | 0 | |
Loans held for investment, net | 0 | |
Derivative assets | 0 | |
Financial liabilities | ||
Deposits | 0 | |
Federal funds purchased | 6,000 | |
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 | |
Total securities available-for-sale | 271,829 | 282,461 |
Total securities held to maturity | 194,662 | 115,291 |
FHLB stock | 0 | |
Federal Reserve Bank stock | 0 | |
Loans held for investment, net | 0 | |
Derivative assets | 25,677 | 8,856 |
Financial liabilities | ||
Deposits | 2,373,838 | 2,421,957 |
FHLB advances | 50,004 | |
Subordinated debt | 50,153 | 50,081 |
Loans held for sale | 370 | |
Derivative financial instruments | 13,012 | 5,647 |
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 | |
Total securities available-for-sale | 0 | |
Total securities held to maturity | 0 | |
FHLB stock | 4,744 | 2,680 |
Federal Reserve Bank stock | 10,029 | 9,998 |
Loans held for investment, net | $ 2,211,005 | 1,890,258 |
Derivative assets | 0 | |
Financial liabilities | ||
Deposits | 0 | |
Subordinated debt | 0 | |
Loans held for sale | 0 | |
Derivative financial instruments | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | $ 749,621 | $ 743,958 |
Minimum lease payments | 18,993 | 20,055 |
Commitments to extend credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 739,648 | 735,905 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 9,973 | 8,053 |
SBIC Investments | ||
Loss Contingencies [Line Items] | ||
Commitments related to investments in SBICs | $ 2,000 | $ 2,400 |
Letter of Credit | ||
Loss Contingencies [Line Items] | ||
Credit facility, expiration period (less than) | 1 year |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Deposit account analysis fees and charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 997 | $ 676 | $ 1,931 | $ 1,222 |
ATM fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 16 | (8) | 36 | 39 |
NSF fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 7 | 8 | 25 | 22 |
Wire fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 15 | 102 | 148 | 212 |
Foreign exchange fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 43 | 92 | 169 | 165 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 3 | 4 | 4 | |
Total service charges | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | 1,081 | 916 | 2,313 | 2,191 |
Service charges - continuing operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 1,081 | 870 | $ 2,313 | 1,664 |
Service charges - discontinued operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customer | $ 46 | $ 527 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease ROU assets | $ 10,800,000 | $ 10,800,000 | $ 11,900,000 | ||
Operating lease liabilities | 15,847,000 | 15,847,000 | $ 16,900,000 | ||
Rent expense | $ 598,000 | $ 473,000 | $ 1,200,000 | $ 1,200,000 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Contract terms | 1 year | 1 year | |||
Contract renewal terms | 5 years | 5 years | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Contract terms | 12 years | 12 years | |||
Contract renewal terms | 10 years | 10 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases | ||||
Operating lease cost | $ 592 | $ 461 | $ 1,186 | $ 1,126 |
Short-term lease cost | 6 | 12 | 15 | 26 |
Sublease income | (92) | (42) | (182) | (116) |
Net lease cost | $ 506 | $ 431 | $ 1,019 | $ 1,036 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases | ||||
Operating cash paid for amounts included in the measurement of lease liabilities | $ 565 | $ 522 | $ 1,125 | $ 1,043 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 716 | $ 15,207 | ||
Weighted-average remaining lease term - operating leases | 8 years 8 months 12 days | 9 years 2 months 12 days | 8 years 8 months 12 days | 9 years 2 months 12 days |
Weighted-average discount rate - operating leases | 3.04% | 3.30% | 3.04% | 3.30% |
Leases - Maturity of Remaining
Leases - Maturity of Remaining Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Maturity of remaining lease liabilities: | ||
June 30, 2021 | $ 2,027 | |
June 30, 2022 | 2,351 | |
June 30, 2023 | 2,244 | |
June 30, 2024 | 1,995 | |
June 30, 2025 | 1,893 | |
Thereafter | 8,483 | |
Total future minimum lease payments | 18,993 | $ 20,055 |
Less: Interest | (3,146) | |
Present value of net future minimum lease payments | $ 15,847 | $ 16,900 |