Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | Live Oak Bancshares, Inc. | |
Entity Central Index Key | 1,462,120 | |
Trading Symbol | LOB | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Voting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 35,473,289 | |
Entity Nonvoting Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 4,643,530 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | [1] |
Assets | |||
Cash and due from banks | $ 392,941 | $ 295,271 | |
Certificates of deposit with other banks | 2,250 | 3,000 | |
Investment securities available-for-sale | 384,943 | 93,355 | |
Loans held for sale | 757,494 | 680,454 | |
Loans and leases held for investment | 1,534,368 | 1,343,973 | |
Allowance for loan and lease losses | (29,350) | (24,190) | |
Net loans and leases | 1,505,018 | 1,319,783 | |
Premises and equipment, net | 234,817 | 178,790 | |
Foreclosed assets | 1,725 | 1,281 | |
Servicing assets | 52,689 | 52,298 | |
Other assets | 141,092 | 134,242 | |
Total assets | 3,472,969 | 2,758,474 | |
Deposits: | |||
Noninterest-bearing | 46,192 | 57,868 | |
Interest-bearing | 2,923,044 | 2,202,395 | |
Total deposits | 2,969,236 | 2,260,263 | |
Long term borrowings | 3,385 | 26,564 | |
Other liabilities | 37,362 | 34,714 | |
Total liabilities | 3,009,983 | 2,321,541 | |
Shareholders’ equity | |||
Retained earnings | 144,791 | 120,241 | |
Accumulated other comprehensive loss | (5,016) | (1,033) | |
Total equity | 462,986 | 436,933 | |
Total liabilities and shareholders’ equity | 3,472,969 | 2,758,474 | |
Preferred Stock Undefined | |||
Shareholders’ equity | |||
Preferred stock, no par value, 1,000,000 authorized, none issued or outstanding at June 30, 2018 and December 31, 2017 | 0 | 0 | |
Class A Common Stock | |||
Shareholders’ equity | |||
Common stock | 274,043 | 268,557 | |
Class B Common Stock | |||
Shareholders’ equity | |||
Common stock | $ 49,168 | $ 49,168 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2018 | Dec. 31, 2017 | [1] |
Preferred Stock Undefined | |||
Preferred stock authorized (in shares) | 1,000,000 | 1,000,000 | |
Preferred stock issued (in shares) | 0 | 0 | |
Preferred stock outstanding (in shares) | 0 | 0 | |
Class A Common Stock | |||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock issued (in shares) | 35,442,879 | 35,252,053 | |
Common stock outstanding (in shares) | 35,442,879 | 35,252,053 | |
Class B Common Stock | |||
Common stock authorized (in shares) | 10,000,000 | 10,000,000 | |
Common stock issued (in shares) | 4,643,530 | 4,643,530 | |
Common stock outstanding (in shares) | 4,643,530 | 4,643,530 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income | ||||
Loans and fees on loans | $ 36,267 | $ 23,559 | $ 68,958 | $ 43,313 |
Investment securities, taxable | 2,530 | 316 | 3,647 | 639 |
Other interest earning assets | 2,179 | 470 | 3,394 | 812 |
Total interest income | 40,976 | 24,345 | 75,999 | 44,764 |
Interest expense | ||||
Deposits | 13,927 | 5,592 | 24,345 | 10,135 |
Borrowings | 1 | 361 | 130 | 596 |
Total interest expense | 13,928 | 5,953 | 24,475 | 10,731 |
Net interest income | 27,048 | 18,392 | 51,524 | 34,033 |
Provision for loan and lease losses | 2,087 | 1,556 | 6,479 | 3,055 |
Net interest income after provision for loan and lease losses | 24,961 | 16,836 | 45,045 | 30,978 |
Noninterest income | ||||
Loan servicing revenue | 6,965 | 6,174 | 13,863 | 12,097 |
Loan servicing asset revaluation | (3,670) | (1,164) | (8,758) | (3,173) |
Net gains on sales of loans | 23,061 | 18,176 | 47,479 | 37,128 |
Lease income | 1,920 | 9 | 3,528 | 9 |
Construction supervision fee income | 597 | 286 | 1,376 | 715 |
Title insurance income | 996 | 2,397 | 2,296 | 3,835 |
Other noninterest income | 744 | 789 | 1,585 | 1,809 |
Total noninterest income | 30,613 | 26,667 | 61,369 | 52,420 |
Noninterest expense | ||||
Salaries and employee benefits | 22,146 | 17,968 | 42,355 | 36,650 |
Travel expense | 2,041 | 2,148 | 3,884 | 3,746 |
Professional services expense | 1,119 | 1,424 | 2,417 | 3,160 |
Advertising and marketing expense | 1,868 | 1,976 | 3,530 | 3,461 |
Data processing expense | 2,906 | 1,858 | 5,743 | 3,554 |
Equipment expense | 3,368 | 1,703 | 6,445 | 2,777 |
Other loan origination and maintenance expense | 1,414 | 981 | 2,743 | 1,986 |
FDIC insurance | 1,010 | 724 | 1,582 | 1,450 |
Title insurance closing services expense | 372 | 785 | 798 | 1,190 |
Other expense | 2,704 | 2,383 | 5,666 | 5,766 |
Total noninterest expense | 40,830 | 33,300 | 78,902 | 66,285 |
Income before taxes | 14,744 | 10,203 | 27,512 | 17,113 |
Income tax expense | 491 | 408 | 806 | 1,206 |
Net income | $ 14,253 | $ 9,795 | $ 26,706 | $ 15,907 |
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.67 | $ 0.46 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.27 | $ 0.64 | $ 0.44 |
Occupancy | ||||
Noninterest expense | ||||
Occupancy expense | $ 1,882 | $ 1,350 | $ 3,739 | $ 2,545 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 14,253 | $ 9,795 | $ 26,706 | $ 15,907 |
Other comprehensive (loss) income before tax: | ||||
Net unrealized (loss) gain on investment securities arising during the period | (1,965) | 293 | (4,920) | 220 |
Reclassification adjustment for (gain) loss on sale of securities available-for-sale included in net income | 0 | 0 | 0 | 0 |
Other comprehensive (loss) income before tax | (1,965) | 293 | (4,920) | 220 |
Income tax benefit (expense) | 471 | (113) | 1,181 | (85) |
Other comprehensive (loss) income, net of tax | (1,494) | 180 | (3,739) | 135 |
Total comprehensive income | $ 12,759 | $ 9,975 | $ 22,967 | $ 16,042 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common stock | Common stockClass A Common Stock | Common stockClass B Common Stock | Retained earnings | Accumulated other comprehensive loss | |
Beginning balance (in shares) at Dec. 31, 2016 | 29,530,072 | 4,723,530 | |||||
Beginning balance at Dec. 31, 2016 | $ 222,847 | $ 199,981 | $ 23,518 | $ (652) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 15,907 | 15,907 | |||||
Other comprehensive income | 135 | 135 | |||||
Issuance of restricted stock (in shares) | 287,190 | ||||||
Issuance of restricted stock | 0 | ||||||
Withholding cash issued in lieu of restricted stock issuance | (4,828) | (4,828) | |||||
Employee stock purchase program (in shares) | 12,411 | ||||||
Employee stock purchase program | $ 241 | 241 | |||||
Stock option exercises (in shares) | 58,921 | 58,921 | |||||
Stock option exercises | $ 456 | 456 | |||||
Stock option based compensation expense | 924 | 924 | |||||
Restricted stock expense | 2,768 | 2,768 | |||||
Stock issued in acquisition of Reltco, Inc. (in shares) | 27,724 | ||||||
Stock issued in acquisition of Reltco, Inc. | 565 | 565 | |||||
Non-voting common stock converted to voting common stock-private sale (in shares) | 80,000 | 80,000 | |||||
Dividends (distributions to shareholders) | (1,384) | (1,384) | |||||
Ending balance (in shares) at Jun. 30, 2017 | 29,996,318 | 4,643,530 | |||||
Ending balance at Jun. 30, 2017 | 237,631 | 200,107 | 38,041 | (517) | |||
Beginning balance (in shares) at Dec. 31, 2017 | 35,252,053 | 4,643,530 | |||||
Beginning balance at Dec. 31, 2017 | 436,933 | [1] | 317,725 | 120,241 | (1,033) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 26,706 | 26,706 | |||||
Other comprehensive income | (3,739) | (3,739) | |||||
Issuance of restricted stock (in shares) | 39,133 | ||||||
Issuance of restricted stock | 0 | ||||||
Withholding cash issued in lieu of restricted stock issuance | (495) | (495) | |||||
Employee stock purchase program (in shares) | 7,022 | ||||||
Employee stock purchase program | $ 165 | 165 | |||||
Stock option exercises (in shares) | 144,671 | 144,671 | |||||
Stock option exercises | $ 1,252 | 1,252 | |||||
Stock option based compensation expense | 809 | 809 | |||||
Restricted stock expense | 3,755 | 3,755 | |||||
Reclassification of accumulated other comprehensive income due to tax rate change | 244 | (244) | |||||
Dividends (distributions to shareholders) | (2,400) | (2,400) | |||||
Ending balance (in shares) at Jun. 30, 2018 | 35,442,879 | 4,643,530 | |||||
Ending balance at Jun. 30, 2018 | $ 462,986 | $ 323,211 | $ 144,791 | $ (5,016) | |||
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | ||
Cash flows from operating activities | |||
Net income | $ 26,706 | $ 15,907 | |
Adjustments to reconcile net income to net cash used by operating activities: | |||
Depreciation and amortization | 7,823 | 4,062 | |
Provision for loan and lease losses | 6,479 | 3,055 | |
Amortization of premium on securities, net of accretion | 353 | 219 | |
Amortization of discount on unguaranteed loans, net | 3,501 | 1,255 | |
Deferred tax expense | 807 | 1,427 | |
Originations of loans held for sale | (621,290) | (632,414) | |
Proceeds from sales of loans held for sale | 613,911 | 466,309 | |
Net gains on sale of loans held for sale | (47,479) | (37,128) | |
Net loss on sale of foreclosed assets | 1 | 3 | |
Net increase in servicing assets | (391) | (1,681) | |
Net loss on disposal of premises and equipment | 0 | 213 | |
Stock option based compensation expense | 809 | 924 | |
Restricted stock expense | 3,755 | 2,768 | |
Stock based compensation expense excess tax benefits | 24 | 874 | |
Business combination contingent consideration fair value adjustment | (260) | 350 | |
Changes in assets and liabilities: | |||
Other assets | (7,445) | (9,463) | |
Other liabilities | 909 | 845 | |
Net cash used by operating activities | (11,787) | (182,475) | |
Cash flows from investing activities | |||
Purchases of securities available-for-sale | (316,588) | (6,403) | |
Proceeds from sales, maturities, calls, and principal paydowns of securities available-for-sale | 19,727 | 4,467 | |
Proceeds from sale/collection of foreclosed assets | 212 | 0 | |
Business combination, net of cash acquired | 0 | (7,684) | |
Maturities of certificates of deposit with other banks | 750 | 1,500 | |
Loan and lease originations and principal collections, net | (217,743) | (192,018) | |
Purchases of premises and equipment, net | (61,217) | (63,482) | |
Net cash used by investing activities | (574,859) | (263,620) | |
Cash flows from financing activities | |||
Net increase in deposits | 708,973 | 386,645 | |
Proceeds from long term borrowings | 18 | 16,900 | |
Repayment of long term borrowings | (23,197) | (670) | |
Proceeds from short term borrowings | 0 | 23,100 | |
Repayment of short term borrowings | 0 | (5,000) | |
Stock option exercises | 1,252 | 456 | |
Employee stock purchase program | 165 | 241 | |
Withholding cash issued in lieu of restricted stock | (495) | (4,828) | |
Shareholder dividend distributions | (2,400) | (1,384) | |
Net cash provided by financing activities | 684,316 | 415,460 | |
Net increase (decrease) in cash and cash equivalents | 97,670 | (30,635) | |
Cash and cash equivalents, beginning | 295,271 | [1] | 238,008 |
Cash and cash equivalents, ending | 392,941 | 207,373 | |
Supplemental disclosure of cash flow information | |||
Interest paid | 24,308 | 10,858 | |
Income tax (refunds) payments, net | (542) | 7,876 | |
Supplemental disclosures of noncash operating, investing, and financing activities | |||
Unrealized holding (losses) gains on available-for-sale securities, net of taxes | (3,739) | 135 | |
Transfers from loans and leases to foreclosed real estate and other repossessions | 346 | 495 | |
Net transfers from SBA receivable to foreclosed real estate | 311 | 0 | |
Transfer of loans held for sale to loans and leases held for investment | 19,774 | 4,149 | |
Transfer of loans and leases held for investment to loans held for sale | 51,614 | 18,410 | |
Transfers from short term borrowings to long term borrowings | 0 | 8,100 | |
Business combination: | |||
Assets acquired (excluding goodwill) | 0 | 5,766 | |
Liabilities assumed | 0 | 4,681 | |
Purchase price | 0 | 8,351 | |
Goodwill recorded | $ 0 | $ 7,266 | |
[1] | Derived from audited consolidated financial statements. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Nature of Operations Live Oak Bancshares, Inc. (the “Company” or “LOB”) is a bank holding company headquartered in Wilmington, North Carolina incorporated under the laws of North Carolina in December 2008. The Company conducts business operations primarily through its commercial bank subsidiary, Live Oak Banking Company (the “Bank”). The Bank was organized and incorporated under the laws of the State of North Carolina on February 25, 2008 and commenced operations on May 12, 2008. The Bank specializes in providing lending services to small businesses nationwide. The Bank identifies and grows lending to credit-worthy borrowers both within specific industries, also called verticals, through expertise within those industries, and more broadly to select borrowers outside of those industries. A significant portion of the loans originated by the Bank are guaranteed by the Small Business Administration (“SBA”) under the 7(a) Loan Program and the U.S. Department of Agriculture ("USDA") Rural Energy for America Program ("REAP") and Business & Industry ("B&I") loan programs. On July 28, 2015 the Company completed its initial public offering with a secondary offering completed in August of 2017. In 2010, the Bank formed Live Oak Number One, Inc., a wholly-owned subsidiary, to hold properties foreclosed on by the Bank. In addition to the Bank, the Company owns Live Oak Grove, LLC, opened in September 2015 for the purpose of providing Company employees and business visitors an on-site restaurant location; Government Loan Solutions, Inc. (“GLS”), a management and technology consulting firm that specializes in the settlement, accounting, and securitization processes for government guaranteed loans, including loans originated under the SBA 7(a) loan program and USDA-guaranteed loans; and 504 Fund Advisors, LLC (“504FA”), formed to serve as the investment adviser to the 504 Fund, a closed-end mutual fund organized to invest in SBA section 504 loans. In August 2016, the Company formed Canapi, Inc. for the purpose of investing in businesses that align with the Company's strategic initiative to be a leader in financial technology. Canapi was formerly known as Live Oak Ventures, Inc. In November 2016, the Company formed Live Oak Clean Energy Financing LLC for the purpose of providing financing to entities for renewable energy applications. On February 1, 2017, the Company completed its acquisition of Reltco Inc. and National Assurance Title, Inc. (collectively referred to as "Reltco"), two nationwide title agencies under common control based in Tampa, Florida. See Note 13. Subsequent Event for disposition of Reltco on August 1, 2018. The Company earns revenue primarily from the sale of SBA and USDA-guaranteed loans and net interest income. Income from the sale of loans is comprised of net gains on the sale of loans, revenues on the servicing of sold loans and valuation of loan servicing rights. Offsetting these revenues are the cost of funding sources, provision for loan and lease losses, any costs related to foreclosed assets and other operating costs such as salaries and employee benefits, travel, professional services, occupancy, advertising and marketing and tax expense. General In the opinion of management, all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included, and all intercompany transactions have been eliminated in consolidation. Results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018 . The consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the Securities Exchange Commission on March 8, 2018 (SEC File No. 001-37497) (the "2017 Annual Report"). A summary description of the significant accounting policies followed by the Company is set forth in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2017 Annual Report. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes in the Company's 2017 Annual Report. The preparation of financial statements in conformity with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Amounts in all tables in the Notes to Unaudited Consolidated Financial Statements have been presented in thousands, except percentage, time period, stock option, share and per share data or where otherwise indicated. Business Segments Management has determined that the Company has one significant operating segment, which is providing a lending platform for small businesses nationwide. In determining the appropriateness of segment definition, the Company considers the materiality of a potential segment, the components of the business about which financial information is available, and components for which management regularly evaluates relative to resource allocation and performance assessment. Unconsolidated Joint Venture On October 1, 2017, the Company started the digital banking joint venture between Live Oak Banking Company and First Data Corporation ("First Data"). The new company, named Apiture, combines First Data's and the Bank's digital banking platforms, products, services, and certain human resources used in the creation and delivery of technology solutions for financial institutions. The contributed assets of both the Company and First Data are considered businesses in accordance with relevant accounting standards. At closing both the Bank and First Data received equal voting interests in Apiture in exchange for their respective contributions. As a term of the closing agreements, First Data is entitled to a preference in Apiture's cash earnings from the date of closing through December 31, 2017 and all of 2018, not to exceed $ 18.0 million and $ 18.9 million , respectively. As a result of the above cash earnings preference, income (loss) is allocated utilizing the hypothetical liquidation at book value ("HLBV") method. Under the HLBV method, we allocate income or loss based on the change in each unitholders’ claim on the net assets of Apiture at period end, after adjusting for any distributions or contributions made during such period. As a result of the HLBV method there was no net income or loss attributed to the Company related its ownership interest in Apiture during the three and six months ended June 30, 2018 . As of June 30, 2018 and December 31, 2017 the Company had a $ 68.0 million equity method investment included in other assets on the consolidated balance sheet for this investment. Derivative Financial Instruments Interest Rate Futures Contracts During the fourth quarter of 2016, the Company began using exchange-traded interest rate futures contracts to manage interest rate risk that may impact expected gains arising from future secondary market loan sales. Upon entering into a futures contract, the Company is required to pledge to the counterparty an amount of cash equal to a certain percentage of the contract amount, also known as an initial margin deposit. Subsequent payments, known as variation margin, are made or received by the Company each day to settle the daily fluctuations in the fair value of the underlying contract. Investments in these derivative contracts are subject to risks that can result in a loss of all or part of an investment. Credit risk is considered low because the counterparties are futures exchanges. The Company has not designated any derivative as a hedging instrument under applicable accounting guidance. Changes in fair value of the derivative contracts is recorded as a component of "net gains on sales of loans" on the consolidated statement of income. The fair value of the derivative contracts on the balance sheet date is zero due to the daily cash settlement of contracts. Equity Warrant Assets In connection with negotiated credit facilities and certain other services, the Company may obtain equity warrant assets giving the Company the right to acquire stock in private companies in certain verticals. These assets are held for prospective investment gains and are not used to hedge any economic risks. Further, the Company does not use other derivative instruments to hedge economic risks stemming from equity warrant assets. Equity warrant assets in certain private client companies are recorded as derivatives when they contain net settlement terms and other qualifying criteria under Accounting Standards Codification 815. Equity warrant assets entitle the Company to purchase a specific number of shares of stock at a specific price within a specific time period, generally 10 years. Certain equity warrant assets contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events to prevent dilution of the Company’s implied ownership represented by the warrants. Certain warrant agreements contain net share settlement provisions, which permit the receipt of, upon exercise, a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a “cashless” exercise). These equity warrant assets are recorded at fair value and are classified as derivative assets, a component of other assets, on the consolidated balance sheet at the time they are obtained. The grant date fair values of equity warrant assets classified as derivatives received in connection with the issuance of a credit facility are deemed to be loan fees and recognized as an adjustment of loan yield through loan interest income. Similar to other loan fees, the yield adjustment related to grant date fair value of warrants is recognized over the life of that credit facility. Any changes in fair value from the grant date fair value of equity warrant assets classified as derivatives will be recognized as increases or decreases to other assets on the consolidated balance sheet and as net gains or losses on derivative instruments, in other noninterest income, a component of consolidated net income. When a portfolio company is acquired, the Company may exercise these equity warrant assets for shares or cash. The fair value of equity warrant assets classified as derivatives is reviewed quarterly using a Black-Scholes option pricing model. For those equity warrant assets that do not contain net share settlement provisions, the Company considers these to be equity investments without readily determinable market values and records the asset at cost. Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue and a cumulative effect adjustment to opening retained earnings was not necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and lease financings or investment securities. In addition, certain noninterest income streams such as fees associated with servicing rights, financial guarantees, derivatives, title insurance, and equity and cost method investments are also not in scope of the new guidance. Therefore, the recognition of these revenue streams did not change upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Other noninterest income Other noninterest income consists of other recurring revenue streams from administration of trust assets held by the Company's trust department and from services provided by GLS to its clients for settlement, accounting, and valuation for government guaranteed loan sales and holdings. Trust account administration performance obligations are generally satisfied over time and fees are recognized monthly, based on the month-end market value of assets in fiduciary accounts and the applicable fee rate. Payment is generally received after month end through a direct charge to customers' accounts. The Company does not earn performance-based incentives from trust account administration services. GLS provides services when requested by clients. Each requested service represents a specific performance obligation with a transaction price outlined by GLS' fee schedule. Revenue is recognized as the requested services are completed and payment is generally received the following month. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as trust administration fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. Reclassifications Certain reclassifications have been made to the prior period’s consolidated financial statements to place them on a comparable basis with the current year. Net income and shareholders’ equity previously reported were not affected by these reclassifications. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share are computed based on the weighted average number of shares outstanding during each period. Diluted earnings per share reflects the potential dilution that could occur, upon the exercise of stock options or upon the vesting of restricted stock grants, any of which would result in the issuance of common stock that would then be shared in the net income of the Company. Three Months Ended Six Months Ended 2018 2017 2018 2017 Basic earnings per share: Net income available to common shareholders $ 14,253 $ 9,795 $ 26,706 $ 15,907 Weighted-average basic shares outstanding 40,027,336 34,618,721 39,977,336 34,543,229 Basic earnings per share $ 0.36 $ 0.28 $ 0.67 $ 0.46 Diluted earnings per share: Net income available to common shareholders, for diluted earnings per share $ 14,253 $ 9,795 $ 26,706 $ 15,907 Total weighted-average basic shares outstanding 40,027,336 34,618,721 39,977,336 34,543,229 Add effect of dilutive stock options and restricted stock grants 1,592,311 1,323,320 1,538,997 1,228,953 Total weighted-average diluted shares outstanding 41,619,647 35,942,041 41,516,333 35,772,182 Diluted earnings per share $ 0.34 $ 0.27 $ 0.64 $ 0.44 Anti-dilutive shares — 245,583 9,102 983,174 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). This standard is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The Company's revenue is comprised of loan servicing revenue, net gains on sales of loans and net interest income on financial assets and financial liabilities, all of which are explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company's revenue streams included in non-interest income that are within the scope of the guidance are primarily related to sales of foreclosed assets, construction supervision fees, title insurance income and trust fiduciary fees. The Company adopted the standard in the first quarter of 2018 with no material impact on the consolidated financial statements. Refer to Note 1. Basis of Presentation for additional information. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. The Company adopted the standard in the first quarter of 2018 with no material impact on the consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of the loan and lease portfolio using an exit price notion. See Note 10. Fair Value of Financial Instruments for additional information. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for the Company on January 1, 2019. The impact of this standard will depend on the Company's lease portfolio at the time of the adoption and the Company is currently assessing the effect that the adoption of this standard will have on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This new guidance replaces the incurred loss impairment methodology in current standards with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016-13 on the consolidated financial statements. In that regard, a cross-functional working group has been formed, under the direction of the Company's Chief Financial Officer and Chief Credit Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. The Company is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. The Company has also selected a third-party vendor solution to assist in the application of the ASU 2016-13. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, the impact of adoption is expected to be significantly influenced by the composition, characteristics and quality of loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”). ASU 2017-05 clarifies the scope of Subtopic 610-20 and adds guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award should be accounted for as a modification. This guidance indicates modification accounting is required when the fair value, vesting conditions, or classification of the award changes. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 addresses the income tax accounting treatment of the stranded tax effects within other comprehensive income. The ASU allows for an entity to reclassify the stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018 and reclassified its stranded tax credit of $ 244 thousand within accumulated other comprehensive income to retained earnings at March 31, 2018. In February 2018, the FASB issued ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2018-03”). ASU 2018-03 amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments are effective for the Company for fiscal year 2018 with adoption as of July 1, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118” (“ASU 2018-05”). ASU 2018-05 amends Accounting Standard Codification 740 to include recent SEC guidance pursuant to the issuance of SAB 118. These amendments address situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. The amendments were effective upon issuance and do not have a material effect on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 “Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 amends Accounting Standard Codification 718 to largely align accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance existing employee guidance will generally apply to nonemployee share-based transactions, except for specific guidance on inputs into option pricing models and the attribution of cost. The amendments are effective for the Company on January 1, 2019 with early adoption permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The carrying amount of investment securities and their approximate fair values are reflected in the following table: Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 US treasury securities $ 4,961 $ — $ 9 $ 4,952 US government agencies 32,896 — 395 32,501 Residential mortgage-backed securities 351,556 14 6,133 345,437 Mutual fund 2,129 — 76 2,053 Total $ 391,542 $ 14 $ 6,613 $ 384,943 December 31, 2017 US government agencies $ 22,778 $ 3 $ 157 $ 22,624 Residential mortgage-backed securities 70,167 1 1,472 68,696 Mutual fund 2,090 — 55 2,035 Total $ 95,035 $ 4 $ 1,684 $ 93,355 There were no sales of securities during the three and six months ended June 30, 2018 and 2017 . The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total June 30, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses US treasury securities $ 4,952 $ 9 $ — $ — $ 4,952 $ 9 US government agencies 21,045 343 6,462 52 27,507 395 Residential mortgage-backed securities 292,323 4,083 41,850 2,050 334,173 6,133 Mutual fund — — 2,053 76 2,053 76 Total $ 318,320 $ 4,435 $ 50,365 $ 2,178 $ 368,685 $ 6,613 Less Than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses US government agencies $ 14,842 $ 100 $ 6,465 $ 57 $ 21,307 $ 157 Residential mortgage-backed securities 23,481 439 40,648 1,033 64,129 1,472 Mutual fund — — 2,035 55 2,035 55 Total $ 38,323 $ 539 $ 49,148 $ 1,145 $ 87,471 $ 1,684 At June 30, 2018 , there were twenty-five residential mortgage-backed securities, three US government agency securities and the 504 Fund mutual fund in unrealized loss positions for greater than 12 months and one US treasury security, forty residential mortgage-backed securities and seven US government agency securities in unrealized loss positions for less than 12 months. Unrealized losses at December 31, 2017 were comprised of twenty-three residential mortgage-backed securities, three US government agencies and the 504 mutual fund in unrealized loss positions for greater than 12 months and five US government agency securities and eight residential mortgage-backed securities in unrealized loss positions for less than 12 months. These unrealized losses are primarily the result of volatility in the market and are related to market interest rates. Since none of the unrealized losses relate to marketability of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold the securities for a sufficient period of time to recover unrealized losses, none of the securities are deemed to be other than temporarily impaired. All residential mortgage-backed securities in the Company’s portfolio at June 30, 2018 and December 31, 2017 were backed by U.S. government sponsored enterprises (“GSEs”). The following is a summary of investment securities by maturity: June 30, 2018 Available-for-Sale Amortized cost Fair value US treasury securities One to five years $ 4,961 $ 4,952 Total 4,961 4,952 US government agencies Within one year 6,323 6,300 One to five years 26,573 26,201 Total 32,896 32,501 Residential mortgage-backed securities One to five years 4,298 4,121 Five to ten years 51,439 50,648 After 10 years 295,819 290,668 Total 351,556 345,437 Total $ 389,413 $ 382,890 The table above reflects contractual maturities. Actual results will differ as the loans underlying the residential mortgage-backed securities may repay sooner than scheduled. This table excludes the 504 Fund mutual fund investment. At June 30, 2018 and December 31, 2017 , an investment security with a fair market value of $ 100 thousand was pledged to the Ohio State Treasurer to allow the Company's trust department to conduct business in the state of Ohio and investment securities with a fair market value of $ 2.5 million were pledged to the Company's trust department for uninsured trust assets held by the trust department. |
Loans and Leases Held for Inves
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses | Loans and Leases Held for Investment and Allowance for Loan and Lease Losses Loan and Lease Portfolio Segments The following describes the risk characteristics relevant to each of the portfolio segments. Each loan and lease category is assigned a risk grade during the origination and closing process based on criteria described later in this section. Commercial and Industrial Commercial and industrial loans (C&I) receive similar underwriting treatment as commercial real estate loans in that the repayment source is analyzed to determine its ability to meet cash flow coverage requirements as set forth by Bank policies. Repayment of the Bank’s C&I loans generally comes from the generation of cash flow as the result of the borrower’s business operations. This business cycle itself brings a certain level of risk to the portfolio. In some instances, these loans may carry a higher degree of risk due to a variety of reasons – illiquid collateral, specialized equipment, highly depreciable assets, uncollectable accounts receivable, revolving balances, or simply being unsecured. As a result of these characteristics, the SBA guarantee on these loans is an important factor in mitigating risk. Construction and Development Construction and development loans are for the purpose of acquisition and development of land to be improved through the construction of commercial buildings. Such loans are usually paid off through the conversion to permanent financing for the long-term benefit of the borrower’s ongoing operations. At the completion of the project, if the loan is converted to permanent financing or if scheduled loan amortization begins, it is then reclassified to the “Commercial Real Estate” segment. Underwriting of construction and development loans typically includes analysis of not only the borrower’s financial condition and ability to meet the required debt obligations, but also the general market conditions associated with the area and type of project being funded. Commercial Real Estate Commercial real estate loans are extensions of credit secured by owner occupied and non-owner occupied collateral. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Such repayment of commercial real estate loans is commonly derived from the successful ongoing operations of the business occupying the property. These typically include small businesses and professional practices. Commercial Land Commercial land loans are extensions of credit secured by farmland. Such loans are often for land improvements related to agricultural endeavors that may include construction of new specialized facilities. These loans are usually repaid through the conversion to permanent financing, or if scheduled loans amortization begins, for the long-term benefit of the borrower’s ongoing operations. Underwriting generally involves intensive analysis of the financial strength of the borrower and guarantor, liquidation value of the subject collateral, the associated unguaranteed exposure, and any available secondary sources of repayment, with the greatest emphasis given to a borrower’s capacity to meet cash flow coverage requirements as set forth by Bank policies. Each of the loan types referenced in the sections above is further segmented into verticals in which the Bank chooses to operate. The Bank chooses to finance businesses operating in specific industries because of certain similarities. The similarities range from historical default and loss characteristics to business operations. However, there are differences that create the necessity to underwrite these loans according to varying criteria and guidelines. When underwriting a loan, the Bank considers numerous factors such as cash flow coverage, the credit scores of the guarantors, revenue growth, practice ownership experience and debt service capacity. Minimum guidelines have been set with regard to these various factors and deviations from those guidelines require compensating strengths when considering a proposed loan. Loans and leases consist of the following: June 30, December 31, Commercial & Industrial Agriculture $ 5,813 $ 3,274 Death Care Management 15,720 13,495 Healthcare 44,524 43,301 Independent Pharmacies 102,995 99,920 Registered Investment Advisors 96,473 93,770 Veterinary Industry 49,156 46,387 Other Industries 217,551 184,903 Total 532,232 485,050 Construction & Development Agriculture 34,971 34,188 Death Care Management 7,542 6,119 Healthcare 61,114 49,770 Independent Pharmacies 2,186 1,496 Registered Investment Advisors 1,286 376 Veterinary Industry 18,198 13,184 Other Industries 74,450 58,120 Total 199,747 163,253 Commercial Real Estate Agriculture 49,009 46,717 Death Care Management 66,671 67,381 Healthcare 152,025 126,631 Independent Pharmacies 19,368 19,028 Registered Investment Advisors 11,040 11,789 Veterinary Industry 122,593 113,932 Other Industries 194,266 134,172 Total 614,972 519,650 Commercial Land Agriculture 193,613 178,897 Total 193,613 178,897 Total Loans and Leases 1 1,540,564 1,346,850 Net Deferred Costs 8,470 8,545 Discount on SBA 7(a) and USDA Unguaranteed 2 (14,666 ) (11,422 ) Loans and Leases, Net of Unearned $ 1,534,368 $ 1,343,973 1 Total loans and leases include $ 141.5 million and $ 99.7 million of U.S. government guaranteed loans as of June 30, 2018 and December 31, 2017 , respectively. 2 The Company measures the carrying value of the retained portion of loans sold at fair value under ASC Subtopic 825-10. The value of these retained loan balances is discounted based on the estimates derived from comparable unguaranteed loan sales. Credit Risk Profile The Bank uses internal loan and lease reviews to assess the performance of individual loans and leases by industry segment. An independent review of the loan and lease portfolio is performed annually by an external firm. The goal of the Bank’s annual review of select borrowers' financial performance is to validate the adequacy of the risk grade assigned. The Bank uses a grading system to rank the quality of each loan and lease. The grade is periodically evaluated and adjusted as performance dictates. Loan and lease grades 1 through 4 are passing grades and grade 5 is special mention. Collectively, grades 6 through 8 represent classified loans and leases in the Bank’s portfolio. The following guidelines govern the assignment of these risk grades: Exceptional (1 Rated): These loans and leases are of the highest quality, with strong, well-documented sources of repayment. Debt service coverage (“DSC”) is over 1.75 X based on historical results. Secondary source of repayment is strong, with a loan to value (“LTV”) of 65% or less if secured solely by commercial real estate (“CRE”). Discounted collateral coverage from all sources should exceed 125% . Guarantors have credit scores above 740 . Quality (2 Rated): These loans and leases are of good quality, with good, well-documented sources of repayment. DSC is over 1.25 X based on historical or pro-forma results. Secondary source of repayment is good, with a LTV of 75% or less if secured solely by CRE. Discounted collateral coverage should exceed 100% . Guarantors have credit scores above 700 . Acceptable (3 rated): These loans and leases are of acceptable quality, with acceptable sources of repayment. DSC of over 1.00 X based on historical or pro-forma results. Companies that do not meet these credit metrics must be evaluated to determine if they should be graded below this level. Acceptable (4 rated): These loans and leases are considered very weak pass. These loans and leases are riskier than a 3-rated credit, but due to various mitigating factors are not considered a Special mention or worse. The mitigating factors must clearly be identified to offset further downgrade. Examples of loans and leases that may be put in this category include start-up loans and leases and loans and leases with less than 1 :1 cash flow coverage with other sources of repayment. Special mention (5 rated): These loans and leases are considered as emerging problems, with potentially unsatisfactory characteristics. These loans and leases require greater management attention. A loan or lease may be put into this category if the Bank is unable to obtain financial reporting from a company to fully evaluate its position. Substandard (6 rated): Loans and leases graded Substandard are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. They typically have unsatisfactory characteristics causing more than acceptable levels of risk, and have one or more well-defined weaknesses that could jeopardize the repayment of the debt. Doubtful (7 rated): Loans and leases graded Doubtful have inherent weaknesses that make collection or liquidation in full questionable. Loans and leases graded Doubtful must be placed on non-accrual status. Loss (8 rated): Loss rated loans and leases are considered uncollectible and of such little value that their continuance as an active Bank asset is not warranted. The asset should be charged off, even though partial recovery may be possible in the future. The following tables summarize the risk grades of each category: Risk Grades 1 - 4 Risk Grade 5 Risk Grades 6 - 8 Total June 30, 2018 Commercial & Industrial Agriculture $ 5,596 $ 217 $ — $ 5,813 Death Care Management 15,517 197 6 15,720 Healthcare 36,461 3,256 4,807 44,524 Independent Pharmacies 88,684 6,554 7,757 102,995 Registered Investment Advisors 92,254 1,420 2,799 96,473 Veterinary Industry 44,754 1,649 2,753 49,156 Other Industries 203,813 12,366 1,372 217,551 Total 487,079 25,659 19,494 532,232 Construction & Development Agriculture 32,431 — 2,540 34,971 Death Care Management 7,542 — — 7,542 Healthcare 56,542 2,534 2,038 61,114 Independent Pharmacies 2,186 — — 2,186 Registered Investment Advisors 1,286 — — 1,286 Veterinary Industry 17,012 1,186 — 18,198 Other Industries 72,558 1,892 — 74,450 Total 189,557 5,612 4,578 199,747 Commercial Real Estate Agriculture 49,009 — — 49,009 Death Care Management 59,696 3,862 3,113 66,671 Healthcare 129,714 9,378 12,933 152,025 Independent Pharmacies 13,603 2,930 2,835 19,368 Registered Investment Advisors 10,908 132 — 11,040 Veterinary Industry 103,055 3,655 15,883 122,593 Other Industries 192,441 1,825 — 194,266 Total 558,426 21,782 34,764 614,972 Commercial Land Agriculture 183,117 5,371 5,125 193,613 Total 183,117 5,371 5,125 193,613 Total 1 $ 1,418,179 $ 58,424 $ 63,961 $ 1,540,564 Risk Grades 1 - 4 Risk Grade 5 Risk Grades 6 - 8 Total December 31, 2017 Commercial & Industrial Agriculture $ 3,052 $ 222 $ — $ 3,274 Death Care Management 13,371 117 7 13,495 Healthcare 36,530 2,246 4,525 43,301 Independent Pharmacies 86,152 5,541 8,227 99,920 Registered Investment Advisors 90,911 2,134 725 93,770 Veterinary Industry 42,313 1,704 2,370 46,387 Other Industries 184,540 363 — 184,903 Total 456,869 12,327 15,854 485,050 Construction & Development Agriculture 31,738 2,450 — 34,188 Death Care Management 6,119 — — 6,119 Healthcare 47,813 699 1,258 49,770 Independent Pharmacies 1,496 — — 1,496 Registered Investment Advisors 376 — — 376 Veterinary Industry 13,184 — — 13,184 Other Industries 58,120 — — 58,120 Total 158,846 3,149 1,258 163,253 Commercial Real Estate Agriculture 46,717 — — 46,717 Death Care Management 60,671 3,881 2,829 67,381 Healthcare 112,321 9,992 4,318 126,631 Independent Pharmacies 15,641 1,825 1,562 19,028 Registered Investment Advisors 11,649 140 — 11,789 Veterinary Industry 97,065 2,948 13,919 113,932 Other Industries 133,493 679 — 134,172 Total 477,557 19,465 22,628 519,650 Commercial Land Agriculture 176,811 2,086 — 178,897 Total 176,811 2,086 — 178,897 Total 1 $ 1,270,083 $ 37,027 $ 39,740 $ 1,346,850 1 Total loans and leases include $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , segregated by risk grade as follows: Risk Grades 1 – 4 = $ 84.8 million , Risk Grade 5 = $ 12.0 million , Risk Grades 6 – 8 = $ 44.7 million . As of December 31, 2017 , total loans and leases include $ 99.7 million of U.S. government guaranteed loans, segregated by risk grade as follows: Risk Grades 1 – 4 = $ 65.0 million , Risk Grade 5 = $ 6.7 million , Risk Grades 6 – 8 = $ 28.0 million . Past Due Loans and Leases Loans and leases are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans and leases less than 30 days past due and accruing are included within current loans and leases shown below. The following tables show an age analysis of past due loans and leases as of the dates presented. Less Than 30 Days Past Due & Not Accruing 30-89 Days Past Due & Accruing 30-89 Days Past Due & Not Accruing Greater Than 90 Days Past Due Total Not Current Total Loans and Leases 90 June 30, 2018 Commercial & Industrial Agriculture $ — $ — $ — $ — $ — $ 5,813 $ 5,813 $ — Death Care Management — — — — — 15,720 15,720 — Healthcare — 49 757 2,287 3,093 41,431 44,524 — Independent Pharmacies 338 — — 7,308 7,646 95,349 102,995 — Registered Investment Advisors — 577 2,102 — 2,679 93,794 96,473 — Veterinary Industry 170 126 620 1,072 1,988 47,168 49,156 — Other Industries 596 615 — — 1,211 216,340 217,551 — Total 1,104 1,367 3,479 10,667 16,617 515,615 532,232 — Construction & Development Agriculture — — — 2,539 2,539 32,432 34,971 — Death Care Management — — — — — 7,542 7,542 — Healthcare — — — — — 61,114 61,114 — Independent Pharmacies — — — — — 2,186 2,186 — Registered Investment Advisors — — — — — 1,286 1,286 — Veterinary Industry — 1,186 — — 1,186 17,012 18,198 — Other Industries — 37 — — 37 74,413 74,450 — Total — 1,223 — 2,539 3,762 195,985 199,747 — Commercial Real Estate Agriculture — — — — — 49,009 49,009 — Death Care Management 158 1,447 — 1,358 2,963 63,708 66,671 — Healthcare 2,334 — 37 6,596 8,967 143,058 152,025 — Independent Pharmacies 2,835 — — — 2,835 16,533 19,368 — Registered Investment Advisors — — — — — 11,040 11,040 — Veterinary Industry 1,867 3,185 2,506 5,500 13,058 109,535 122,593 — Other Industries — — — — — 194,266 194,266 — Total 7,194 4,632 2,543 13,454 27,823 587,149 614,972 — Commercial Land Agriculture 5,125 — — — 5,125 188,488 193,613 — Total 5,125 — — — 5,125 188,488 193,613 — Total 1 $ 13,423 $ 7,222 $ 6,022 $ 26,660 $ 53,327 $ 1,487,237 $ 1,540,564 $ — Less Than 30 Days Past Due & Not Accruing 30-89 Days Past Due & Accruing 30-89 Days Past Due & Not Accruing Greater Than 90 Days Past Due Total Not Current Total Loans and Leases 90 December 31, 2017 Commercial & Industrial Agriculture $ — $ — $ — $ — $ — $ 3,274 $ 3,274 $ — Death Care Management — — — — — 13,495 13,495 — Healthcare 788 131 14 3,004 3,937 39,364 43,301 — Independent Pharmacies 236 2,930 1,349 3,376 7,891 92,029 99,920 — Registered Investment Advisors — 321 — — 321 93,449 93,770 — Veterinary Industry 212 594 508 797 2,111 44,276 46,387 — Other Industries — — — — — 184,903 184,903 — Total 1,236 3,976 1,871 7,177 14,260 470,790 485,050 — Construction & Development Agriculture — — — — — 34,188 34,188 — Death Care Management — — — — — 6,119 6,119 — Healthcare — — — — — 49,770 49,770 — Independent Pharmacies — — — — — 1,496 1,496 — Registered Investment Advisors — — — — — 376 376 — Veterinary Industry — — — — — 13,184 13,184 — Other Industries — — — — — 58,120 58,120 — Total — — — — — 163,253 163,253 — Commercial Real Estate Agriculture — — — — — 46,717 46,717 — Death Care Management — — 168 1,391 1,559 65,822 67,381 — Healthcare 40 54 1,916 1,550 3,560 123,071 126,631 — Independent Pharmacies — — — 1,562 1,562 17,466 19,028 — Registered Investment Advisors — — — — — 11,789 11,789 — Veterinary Industry 1,804 3,226 — 4,765 9,795 104,137 113,932 — Other Industries — — — — — 134,172 134,172 — Total 1,844 3,280 2,084 9,268 16,476 503,174 519,650 — Commercial Land Agriculture — — — — — 178,897 178,897 — Total — — — — — 178,897 178,897 — Total 1 $ 3,080 $ 7,256 $ 3,955 $ 16,445 $ 30,736 $ 1,316,114 $ 1,346,850 $ — 1 Total loans and leases include $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , of which $ 21.7 million is greater than 90 days past due, $ 9.2 million is 30-89 days past due and $ 110.6 million is included in current loans and leases as presented above. As of December 31, 2017 , total loans and leases include $ 99.7 million of U.S. government guaranteed loans, of which $ 15.0 million is greater than 90 days past due, $ 7.4 million is 30-89 days past due and $ 77.3 million is included in current loans and leases as presented above. Nonaccrual Loans and Leases Loans and leases that become 90 days delinquent, or in cases where there is evidence that the borrower’s ability to make the required payments is impaired, are placed in nonaccrual status and interest accrual is discontinued. If interest on nonaccrual loans and leases had been accrued in accordance with the original terms, interest income would have increased by approximately $ 588 thousand and $ 306 thousand for the three months ended June 30, 2018 and 2017 , respectively, and for the six months ended June 30, 2018 and 2017 interest income would have increased approximately $ 1.0 million and $ 582 thousand , respectively. All nonaccrual loans and leases are included in the held for investment portfolio. Nonaccrual loans and leases as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Loan and Lease Balance Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Healthcare $ 3,044 $ 2,735 $ 309 Independent Pharmacies 7,646 6,919 727 Registered Investment Advisors 2,102 1,577 525 Veterinary Industry 1,862 1,827 35 Other Industries 596 — 596 Total 15,250 13,058 2,192 Construction & Development Agriculture 2,539 1,904 635 Total 2,539 1,904 635 Commercial Real Estate Death Care Management 1,516 1,210 306 Healthcare 8,967 6,080 2,887 Independent Pharmacies 2,835 2,126 709 Veterinary Industry 9,873 8,531 1,342 Total 23,191 17,947 5,244 Commercial Land Agriculture 5,125 1,730 3,395 Total 5,125 1,730 3,395 Total $ 46,105 $ 34,639 $ 11,466 December 31, 2017 Loan and Lease Balance Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Healthcare $ 3,806 $ 3,235 $ 571 Independent Pharmacies 4,961 3,906 1,055 Veterinary Industry 1,517 1,478 39 Total 10,284 8,619 1,665 Commercial Real Estate Death Care Management 1,559 1,237 322 Healthcare 3,506 2,719 787 Independent Pharmacies 1,562 1,562 — Veterinary Industry 6,569 5,733 836 Total 13,196 11,251 1,945 Total $ 23,480 $ 19,870 $ 3,610 Allowance for Loan and Lease Loss Methodology The methodology and the estimation process for calculating the Allowance for Loan and Lease Losses (“ALLL”) is described below: Estimated credit losses should meet the criteria for accrual of a loss contingency, i.e., a provision to the ALLL, set forth in GAAP. The Company’s methodology for determining the ALLL is based on the requirements of GAAP, the Interagency Policy Statement on the Allowance for Loan and Lease Losses and other regulatory and accounting pronouncements. The ALLL is determined by the sum of three separate components: (i) the impaired loan and lease component, which addresses specific reserves for impaired loans and leases; (ii) the general reserve component, which addresses reserves for pools of homogeneous loans and leases; and (iii) an unallocated reserve component (if any) based on management’s judgment and experience. The loan and lease pools and impaired loans and leases are mutually exclusive; any loan or lease that is impaired is excluded from its homogenous pool for purposes of that pool’s reserve calculation, regardless of the level of impairment. The ALLL policy for pooled loans and leases is governed in accordance with banking regulatory guidance for homogenous pools of non-impaired loans and leases that have similar risk characteristics. The Company follows a consistent and structured approach for assessing the need for reserves within each individual loan and lease pool. Loans and leases are considered impaired when, based on current information and events, it is probable that the creditor will be unable to collect all interest and principal payments due according to the originally contracted, or reasonably modified, terms of the loan or lease agreement. The Company has determined that loans and leases that meet the criteria defined below must be reviewed quarterly to determine if they are impaired. • All commercial loans and leases classified substandard or worse. • Any other delinquent loan or lease that is in a nonaccrual status, or any loan or lease that is delinquent more than 89 days and still accruing interest. • Any loan or lease which has been modified such that it meets the definition of a Troubled Debt Restructuring (TDR). The Company’s policy for impaired loan and lease accounting subjects all loans and leases to impairment recognition; however, loan and lease relationships with unguaranteed credit exposure of less than $100,000 are generally not evaluated on an individual basis for impairment and instead are evaluated collectively using a methodology based on historical specific reserves on similar sized loans and leases. Any loan or lease not meeting the above criteria and determined to be impaired is subjected to an impairment analysis, which is a calculation of the probable loss on the loan or lease. This portion is the loan's or lease’s “impairment,” and is established as a specific reserve against the loan or lease, or charged against the ALLL. Individual specific reserve amounts imply probability of loss and may not be carried in the reserve indefinitely. When the amount of the actual loss becomes reasonably quantifiable, the amount of the loss is charged off against the ALLL, whether or not all liquidation and recovery efforts have been completed. If the total amount of the individual specific reserve that will eventually be charged off cannot yet be sufficiently quantified but some portion of the impairment can be viewed as a confirmed loss, then the confirmed loss portion should be charged off against the ALLL and the individual specific reserve reduced by a corresponding amount. For impaired loans or leases, the reserve amount is calculated on a loan or lease-specific basis. The Company utilizes two methods of analyzing impaired loans and leases not guaranteed by the SBA: • The Fair Market Value of Collateral method utilizes the value at which the collateral could be sold considering the appraised value, appraisal discount rate, prior liens and selling costs. The amount of the reserve is the deficit of the estimated collateral value compared to the loan or lease balance. • The Present Value of Future Cash Flows method takes into account the amount and timing of cash flows and the effective interest rate used to discount the cash flows. The following table details activity in the allowance for loan and lease losses by portfolio segment allowance for the periods presented: Three months ended Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total June 30, 2018 Beginning Balance $ 2,428 $ 11,244 $ 12,201 $ 2,177 $ 28,050 Charge offs — (419 ) (549 ) — (968 ) Recoveries — 29 152 — 181 Provision (201 ) 554 1,573 161 2,087 Ending Balance $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 June 30, 2017 Beginning Balance $ 1,884 $ 6,226 $ 7,846 $ 2,239 $ 18,195 Charge offs — (19 ) (178 ) — (197 ) Recoveries — 4 2 — 6 Provision (281 ) 1,283 681 (127 ) 1,556 Ending Balance $ 1,603 $ 7,494 $ 8,351 $ 2,112 $ 19,560 Six months ended Construction & Commercial Commercial Commercial Total June 30, 2018 Beginning Balance $ 2,030 $ 9,180 $ 10,751 $ 2,229 $ 24,190 Charge offs — (419 ) (1,221 ) — (1,640 ) Recoveries — 33 288 — 321 Provision 197 2,614 3,559 109 6,479 Ending Balance $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 June 30, 2017 Beginning Balance $ 1,693 $ 5,897 $ 8,413 $ 2,206 $ 18,209 Charge offs — (287 ) (1,411 ) (35 ) (1,733 ) Recoveries — 13 16 — 29 Provision (90 ) 1,871 1,333 (59 ) 3,055 Ending Balance $ 1,603 $ 7,494 $ 8,351 $ 2,112 $ 19,560 The following tables detail the recorded allowance for loan and lease losses and the investment in loans and leases related to each portfolio segment, disaggregated on the basis of impairment evaluation methodology: June 30, 2018 Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total Allowance for Loan and Lease Losses: Loans and leases individually evaluated for impairment $ 365 $ 2,601 $ 2,597 $ 1,355 $ 6,918 Loans and leases collectively evaluated for impairment 2 1,862 8,807 10,780 983 22,432 Total allowance for loan and lease losses $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 Loans and leases receivable 1 : Loans and leases individually evaluated for impairment $ 4,557 $ 28,966 $ 10,836 $ 5,116 $ 49,475 Loans and leases collectively evaluated for impairment 2 195,190 586,006 521,396 188,497 1,491,089 Total loans and leases receivable $ 199,747 $ 614,972 $ 532,232 $ 193,613 $ 1,540,564 December 31, 2017 Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total Allowance for Loan and Lease Losses: Loans and leases individually evaluated for impairment $ 157 $ 1,502 $ 1,126 $ — $ 2,785 Loans and leases collectively evaluated for impairment 2 1,873 7,678 9,625 2,229 21,405 Total allowance for loan and lease losses $ 2,030 $ 9,180 $ 10,751 $ 2,229 $ 24,190 Loans and leases receivable 1 : Loans and leases individually evaluated for impairment $ 1,237 $ 17,105 $ 8,672 $ — $ 27,014 Loans and leases collectively evaluated for impairment 2 162,016 502,545 476,378 178,897 1,319,836 Total loans and leases receivable $ 163,253 $ 519,650 $ 485,050 $ 178,897 $ 1,346,850 1 Loans and leases receivable includes $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , of which $ 45.2 million are impaired. As of December 31, 2017 , loans and leases receivable includes $ 99.7 million of U.S. government guaranteed loans, of which $ 28.1 million are considered impaired. 2 Included in loans and leases collectively evaluated for impairment are impaired loans and leases with individual unguaranteed exposure of less than $100 thousand. As of June 30, 2018 , these balances totaled $ 15.7 million , of which $ 14.4 million are guaranteed by the U.S. government and $ 1.3 million are unguaranteed. As of December 31, 2017 , these balances totaled $ 14.8 million , of which $ 13.2 million are guaranteed by the U.S. government and $ 1.6 million are unguaranteed. The allowance for loan and lease losses associated with these loans and leases totaled $ 510 thousand and $ 279 thousand as of June 30, 2018 and December 31, 2017 , respectively. Loans and leases classified as impaired as of the dates presented are summarized in the following tables. June 30, 2018 Recorded Investment Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Death Care Management $ 6 $ — $ 6 Healthcare 4,836 3,468 1,368 Independent Pharmacies 8,054 6,918 1,136 Registered Investment Advisors 2,807 1,577 1,230 Veterinary Industry 2,900 2,328 572 Other Industries 1,371 163 1,208 Total 19,974 14,454 5,520 Construction & Development Agriculture 2,534 1,905 629 Healthcare 2,023 1,528 495 Total 4,557 3,433 1,124 Commercial Real Estate Death Care Management 3,137 2,296 841 Healthcare 13,573 9,241 4,332 Independent Pharmacies 2,834 2,126 708 Veterinary Industry 15,947 11,916 4,031 Total 35,491 25,579 9,912 Commercial Land Agriculture 5,116 1,730 3,386 Total 5,116 1,730 3,386 Total $ 65,138 $ 45,196 $ 19,942 December 31, 2017 Recorded Investment Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Death Care Management $ 7 $ — $ 7 Healthcare 4,551 3,235 1,316 Independent Pharmacies 8,571 6,356 2,215 Registered Investment Advisors 733 — 733 Veterinary Industry 2,762 2,001 761 Total 16,624 11,592 5,032 Construction & Development Healthcare 1,237 944 293 Total 1,237 944 293 Commercial Real Estate Death Care Management 2,831 1,237 1,594 Healthcare 4,315 2,967 1,348 Independent Pharmacies 1,562 1,562 — Veterinary Industry 15,266 9,768 5,498 Total 23,974 15,534 8,440 Commercial Land Agriculture — — — Total — — — Total $ 41,835 $ 28,070 $ 13,765 The following table presents evaluated balances of loans and leases classified as impaired at the dates presented that carried an associated reserve as compared to those with no reserve. The recorded investment includes accrued interest and net deferred loan and lease fees or costs. June 30, 2018 Recorded Investment With a Recorded Allowance With No Recorded Allowance Total Unpaid Principal Balance Related Allowance Recorded Commercial & Industrial Death Care Management $ 6 $ — $ 6 $ 6 $ 1 Healthcare 4,081 755 4,836 5,221 378 Independent Pharmacies 7,639 415 8,054 9,183 400 Registered Investment Advisors 2,807 — 2,807 2,799 1,012 Veterinary Industry 2,900 — 2,900 3,279 194 Other Industries 1,371 — 1,371 1,372 757 Total 18,804 1,170 19,974 21,860 2,742 Construction & Development Agriculture 2,534 — 2,534 2,539 17 Healthcare 2,023 — 2,023 2,038 348 Total 4,557 — 4,557 4,577 365 Commercial Real Estate Death Care Management 2,980 157 3,137 3,248 160 Healthcare 13,202 371 13,573 13,566 1,242 Independent Pharmacies 2,834 — 2,834 2,835 288 Veterinary Industry 15,947 — 15,947 16,956 1,276 Total 34,963 528 35,491 36,605 2,966 Commercial Land Agriculture 5,116 — 5,116 5,125 1,355 Total 5,116 — 5,116 5,125 1,355 Total Impaired Loans and Leases $ 63,440 $ 1,698 $ 65,138 $ 68,167 $ 7,428 December 31, 2017 Recorded Investment With a Recorded Allowance With No Recorded Allowance Total Unpaid Principal Balance Related Allowance Recorded Commercial & Industrial Death Care Management $ — $ 7 $ 7 $ 7 $ — Healthcare 3,521 1,030 4,551 5,643 165 Independent Pharmacies 8,154 417 8,571 9,078 521 Registered Investment Advisors 662 71 733 725 504 Veterinary Industry 2,505 257 2,762 3,113 182 Total 14,842 1,782 16,624 18,566 1,372 Construction & Development Healthcare 1,237 — 1,237 1,258 157 Total 1,237 — 1,237 1,258 157 Commercial Real Estate Death Care Management 2,221 610 2,831 2,964 260 Healthcare 3,717 598 4,315 4,332 192 Independent Pharmacies 1,562 — 1,562 1,933 8 Veterinary Industry 13,711 1,555 15,266 16,584 1,075 Total 21,211 2,763 23,974 25,813 1,535 Commercial Land Agriculture — — — 58 — Total — — — 58 — Total Impaired Loans and Leases $ 37,290 $ 4,545 $ 41,835 $ 45,695 $ 3,064 The following table presents the average recorded investment of impaired loans and leases for each period presented and interest income recognized during the period in which the loans and leases were considered impaired. Three months ended Three months ended Average Interest Average Interest Commercial & Industrial Death Care Management $ 7 $ — $ 111 $ 2 Healthcare 5,094 19 6,708 19 Independent Pharmacies 7,978 7 5,647 23 Registered Investment Advisors 2,818 12 2,100 15 Veterinary Industry 2,930 18 2,448 10 Other Industries 1,373 5 — — Total 20,200 61 17,014 69 Construction & Development Agriculture 2,526 — — — Healthcare 1,799 28 — — Total 4,325 28 — — Commercial Real Estate Death Care Management 3,122 27 2,536 14 Healthcare 12,852 64 1,808 12 Independent Pharmacies 2,836 1 2,169 — Veterinary Industry 16,135 98 14,777 133 Total 34,945 190 21,290 159 Commercial Land Agriculture 5,138 25 196 — Total 5,138 25 196 — Total $ 64,608 $ 304 $ 38,500 $ 228 Six months ended Six months ended Average Interest Average Interest Commercial & Industrial Death Care Management $ 7 $ — $ 1,776 $ 3 Healthcare 5,188 31 5,054 41 Independent Pharmacies 8,038 27 5,050 37 Registered Investment Advisors 2,825 24 1,740 30 Veterinary Industry 2,917 38 8,663 21 Other Industries 1,373 5 — — Total 20,348 125 22,283 132 Construction & Development Agriculture 2,509 5 — — Healthcare 1,579 51 — — Total 4,088 56 — — Commercial Real Estate Death Care Management 3,133 64 6,637 19 Healthcare 12,486 80 1,642 24 Independent Pharmacies 2,836 1 1,176 — Veterinary Industry 16,159 235 6,663 238 Total 34,614 380 16,118 281 Commercial Land Agriculture 5,138 25 466 — Total 5,138 25 466 — Total $ 64,188 $ 586 $ 38,867 $ 413 During the six months ended June 30, 2018 , there was one construction and development healthcare loan modified to extend the interest only period. The TDR had a pre-modification and post-modification recorded investment of $ 612 thousand . There were no TDRs modified during the three months en |
Equipment Leasing
Equipment Leasing | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Equipment Leasing | Equipment Leasing The Company purchases new equipment for the purpose of leasing such equipment to customers within its verticals. Equipment purchased to fulfill commitments to commercial renewable energy projects is rented out under operating leases while leases of equipment outside of the renewable energy vertical are generally direct financing leases. Accordingly, leased assets under operating leases are included in premises and equipment while leased assets under direct financing leases are included in loans and leases held for investment. Direct Financing Leases Interest income on direct financing leases is recognized when earned. Unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment. The term of each lease is generally 3 - 7 years which is consistent with the useful life of the equipment with no residual value. The gross lease payments receivable and the net investment included in accounts receivable for such leases are as follows: As of June 30, 2018 December 31, 2017 Gross direct finance lease payments receivable $ 4,880 $ 2,399 Less – unearned interest (795 ) (373 ) Net investment in direct financing leases $ 4,085 $ 2,026 Future minimum lease payments under finance leases are as follows: As of June 30, 2018 Amount 2018 $ 487 2019 1,009 2020 998 2021 916 2022 733 Thereafter 737 Total $ 4,880 Interest income of $ 73 thousand and $ 7 thousand was recognized in the three months ended June 30, 2018 and 2017. Interest income of $ 120 thousand and $ 7 thousand was recognized in the six months ended June 30, 2018 and 2017. Operating Leases The term of each operating lease is generally 10 to 15 years. The Company retains ownership of the equipment and associated tax benefits such as investment tax credits and accelerated depreciation. At the end of the lease term, the lessee has the option to renew the lease for two additional terms or purchase the equipment at the then current fair market value. Rental revenue from operating leases is recognized over a straight-line basis over the term of the lease. Rental equipment is recorded at cost and depreciated to an estimated residual value on a straight-line basis over the estimated useful life. The useful lives generally range from 20 to 25 years and residual values generally range from 20% to 40% , however, they are subject to periodic evaluation. Changes in useful lives or residual values will impact depreciation expense and any gain or loss from the sale of used equipment. The estimated useful lives and residual values of the Company's leasing equipment are based on industry disposal experience and the Company's expectations for future sale prices. If the Company decides to sell or otherwise dispose of rental equipment, it is carried at the lower of cost or fair value less costs to sell or dispose. Repair and maintenance costs that do not extend the lives of the rental equipment are charged to direct operating expenses at the time the costs are incurred. As of June 30, 2018 , the Company had a net investment of $ 129.7 million in assets included in premises and equipment that are subject to operating leases. Of the net investment, the gross balance of the assets was $ 135.6 million and accumulated depreciation was $ 5.9 million as of June 30, 2018 . Depreciation expense recognized on these assets for the three and six months ended June 30, 2018 was $ 2.0 million and $ 3.7 million , respectively. Depreciation expense recognized for the three and six months ended June 30, 2017 was $ 297 thousand . A maturity analysis of future minimum lease payments under non-cancelable operating leases is as follows: As of June 30, 2018 Amount 2018 $ 3,200 2019 7,486 2020 7,536 2021 7,572 2022 7,599 Thereafter 49,337 Total $ 82,730 |
Servicing Assets
Servicing Assets | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Servicing Assets | Servicing Assets Loans serviced for others are not included in the accompanying balance sheet. The unpaid principal balances of loans serviced for others requiring recognition of a servicing asset were $ 2.58 billion and $ 2.44 billion at June 30, 2018 and December 31, 2017 , respectively. The unpaid principal balance for all loans serviced for others was $ 2.67 billion and $ 2.54 billion at June 30, 2018 and December 31, 2017 , respectively. The following summarizes the activity pertaining to servicing rights: Three Months Ended Six Months Ended 2018 2017 2018 2017 Balance at beginning of period $ 53,120 $ 53,584 $ 52,298 $ 51,994 Additions, net 4,202 2,503 9,076 5,885 Fair value changes: Due to changes in valuation inputs or assumptions (552 ) 365 (553 ) 861 Decay due to increases in principal paydowns or runoff (4,081 ) (2,777 ) (8,132 ) (5,065 ) Balance at end of period $ 52,689 $ 53,675 $ 52,689 $ 53,675 The fair value of servicing rights was determined using discount rates ranging from 10.1% to 15.4% on June 30, 2018 and 9.0% to 13.2% on June 30, 2017 . The fair value of servicing rights was determined using prepayment speeds ranging from 3.1% to 23.3% on June 30, 2018 and 3.1% to 10.2% on June 30, 2017 , depending on the stratification of the specific right. Changes to fair value are reported in loan servicing asset revaluation within the consolidated statements of income. The fair value of servicing rights is highly sensitive to changes in underlying assumptions. Changes in prepayment speed assumptions have the most significant impact on the fair value of servicing rights. Generally, as interest rates rise on variable rate loans, loan prepayments increase due to an increase in refinance activity, which results in a decrease in the fair value of servicing assets. Measurement of fair value is limited to the conditions existing and the assumptions used as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Total outstanding short and long term borrowings consisted of the following: June 30, December 31, Short term borrowings On October 20, 2017, the Company entered into a revolving line of credit of $20 million with an unaffiliated commercial bank. The note is unsecured and accrues interest at LIBOR plus 1.750% for a term of 12 months. Payments are interest only with all principal and accrued interest due on October 19, 2018. The terms of this loan require the Company to maintain minimum capital and debt service coverage ratios. No advances have been made to this line of credit and there is $20 million of available credit remaining at June 30, 2018. $ — $ — On September 18, 2014, the Company entered into a note payable revolving line of credit of $8.1 million with an unaffiliated commercial bank. On April 18, 2017, the Company renewed and increased the revolving line of credit to $25 million. The note is unsecured and accrues interest at Prime minus 0.50% for a term of 24 months. Payments are interest only with all principal and accrued interest due on April 30, 2019. The terms of this loan require the Company to maintain minimum capital, liquidity and Texas ratios. This line of credit was paid in full on August 25, 2017, and there is $25 million of available credit remaining at June 30, 2018. — — Total short term borrowings $ — $ — June 30, December 31, Long term borrowings On September 11, 2014, the Company financed the construction of an additional building located on the Company’s Tiburon Drive main campus with a $24 million construction line of credit with an unaffiliated commercial bank, secured by both properties at its Tiburon Drive main facility location. Payments were interest only through September 11, 2016 at a fixed rate of 3.95% for a term of 84 months. Monthly principal and interest payments of $146 thousand began in October 2016 with all principal and accrued interest due on September 11, 2021. This note was repaid in full on January 31, 2018. $ — $ 22,990 On February 23, 2015, the Company transferred two related party loans to an unaffiliated commercial bank in exchange for $4.7 million. The exchange price equated to the unpaid principal balance plus accrued but uncollected interest at the time of transfer. The terms of the transfer agreement with the unaffiliated commercial bank identified the transaction as a secured borrowing for accounting purposes. Interest accrues at prime plus 1% with monthly principal and interest payments over a term of 60 months. The interest rate at June 30, 2018 is 5.75%. The maturity date is October 5, 2019. The pledged collateral is classified in other assets with a fair value of $3.4 million at June 30, 2018. Underlying loans carry a risk grade of 3 and are current with no delinquencies. 3,368 3,574 In October 2017, the Company entered into a capital lease of $19 thousand with an unaffiliated equipment lease company, secured by fitness equipment which is included in premises and equipment on the consolidated balance sheet. Payments are principal and interest due monthly starting December 15, 2017 over a term of 60 months. At the end of the lease term there is a $1.00 bargain purchase option. 17 — Total long term borrowings $ 3,385 $ 26,564 The Company may purchase federal funds through unsecured federal funds lines of credit with various correspondent banks, which totaled $72.5 million and $47.5 million as of June 30, 2018 and December 31, 2017 , respectively. These lines are intended for short-term borrowings and are subject to restrictions limiting the frequency and terms of advances. These lines of credit are payable on demand and bear interest based upon the daily federal funds rate. The Company had no outstanding balances on the lines of credit as of June 30, 2018 and December 31, 2017 . The Company has entered into a repurchase agreement with a third party for $5 million as of June 30, 2018 and December 31, 2017 . At the time the Company enters into a transaction with the third party, the Company must transfer securities or other assets against the funds received. The terms of the agreement are set at market conditions at the time the Company enters into such transaction. The Company had no outstanding balance on the repurchase agreement as of June 30, 2018 and December 31, 2017 . The Company may borrow funds through the Federal Reserve Bank’s discount window. These borrowings are secured by a blanket floating lien on qualifying loans with a balance of $370.3 million and $348.5 million as of June 30, 2018 and December 31, 2017 , respectively. At June 30, 2018 and December 31, 2017 , the Company had approximately $204.1 million and $189.1 million , respectively, in borrowing capacity available under these arrangements with no outstanding balance as of June 30, 2018 and December 31, 2017 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate is lower than the U.S. statutory rate primarily because of the anticipated effect of investment tax credits during 2018. The Company's effective tax rate in the future will depend on the actual investment tax credits earned as a part of its financing renewable energy applications. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair Value Hierarchy There are three levels of inputs in the fair value hierarchy that may be used to measure fair value. Financial instruments are considered Level 1 when valuation can be based on quoted prices in active markets for identical assets or liabilities. Level 2 financial instruments are valued using quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or models using inputs that are observable or can be corroborated by observable market data of substantially the full term of the assets or liabilities. Financial instruments are considered Level 3 when their values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable and when determination of the fair value requires significant management judgment or estimation. Financial Instruments Measured at Fair Value The following sections provide a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the fair value hierarchy: Investment securities: Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, discounted cash flow or at net asset value per share. Level 2 securities would include U.S. government agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset backed mutual fund and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Impaired loans : Impairment of a loan is based on the fair value of the collateral of the loan for collateral-dependent loans. Fair value of the loan’s collateral, when the loan is dependent on collateral, is determined by appraisals or independent valuation which is then adjusted for the cost related to liquidation of the collateral. For non-collateral dependent loans, impairment is determined by the present value of expected future cash flows. Impaired loans classified as Level 3 are based on management’s judgment and estimation. Servicing assets: Servicing rights do not trade in an active, open market with readily observable prices. While sales of servicing rights do occur, the precise terms and conditions typically are not readily available. Accordingly, the Company estimates the fair value of servicing rights using discounted cash flow models incorporating numerous assumptions from the perspective of a market participant including servicing income, servicing costs, market discount rates and prepayment speeds. Due to the nature of the valuation inputs, servicing rights are classified within Level 3 of the valuation hierarchy. Foreclosed assets: Foreclosed real estate is adjusted to fair value less selling costs upon transfer of the loans to foreclosed real estate. Subsequently, foreclosed real estate is carried at the lower of carrying value or fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Given the lack of observable market prices for identical properties and market discounts applied to appraised values, the Company generally classifies foreclosed assets as nonrecurring Level 3. Equity warrant assets: Fair value measurements of equity warrant assets of private companies are priced based on a Black-Scholes option pricing model to estimate the asset value by using stated strike prices, option expiration dates, risk-free interest rates and option volatility assumptions. Option volatility assumptions used in the Black-Scholes model are based on public companies that operate in similar industries as the companies in our private company portfolio. Option expiration dates are modified to account for estimates to actual life relative to stated expiration. Values are further adjusted for a general lack of liquidity due to the private nature of the associated underlying company. The Company classifies equity warrant assets within Level 3 of the valuation hierarchy. Contingent consideration liability: Contingent consideration associated with the acquisition of Reltco will be adjusted to fair value quarterly until settled. The assumptions used to measure fair value are based on internal metrics that are unobservable and therefore the contingent consideration liability is classified within Level 3 of the valuation hierarchy. Recurring Fair Value The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. June 30, 2018 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US treasury securities $ 4,952 $ — $ 4,952 $ — US government agencies 32,501 — 32,501 — Residential mortgage-backed securities 345,437 — 345,437 — Mutual fund 2,053 — 2,053 — Servicing assets 1 52,689 — — 52,689 Equity warrant assets 399 — — 399 Total assets at fair value $ 438,031 $ — $ 384,943 $ 53,088 Contingent consideration liability 2 $ 1,640 $ — $ — $ 1,640 Total liabilities at fair value $ 1,640 $ — $ — $ 1,640 December 31, 2017 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 22,624 $ — $ 22,624 $ — Residential mortgage-backed securities 68,696 — 68,696 — Mutual fund 2,035 — 2,035 — Servicing assets 1 52,298 — — 52,298 Total assets at fair value $ 145,653 $ — $ 93,355 $ 52,298 Contingent consideration liability 2 $ 1,900 $ — $ — $ 1,900 Total liabilities at fair value $ 1,900 $ — $ — $ 1,900 1 See Note 7 for a rollforward of recurring Level 3 fair values for servicing assets and various assumptions used in the fair value measurement. 2 Activity for the contingent consideration liability during the six months ended June 30, 2018 consisted of a $ 260 thousand negative fair value adjustment. There was no activity for the contingent consideration liability during the three months ended June 30, 2018 . During the three months ended June 30, 2017 , the Company recorded a $ 150 thousand positive fair value adjustment. During the six months ended June 30, 2017 , $ 4.3 million of contingent consideration was recorded upon the acquisition of Reltco as well as $ 350 thousand positive fair value adjustments. Non-recurring Fair Value The tables below present the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. June 30, 2018 Total Level 1 Level 2 Level 3 Impaired loans and leases $ 56,012 $ — $ — $ 56,012 Foreclosed assets 1,725 — — 1,725 Total assets at fair value $ 57,737 $ — $ — $ 57,737 December 31, 2017 Total Level 1 Level 2 Level 3 Impaired loans and leases $ 34,493 $ — $ — $ 34,493 Foreclosed assets 1,281 — — 1,281 Total assets at fair value $ 35,774 $ — $ — $ 35,774 Level 3 Analysis For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2018 and December 31, 2017 the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2018 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Impaired loans and leases $ 56,012 Discounted appraisals Appraisal adjustments (1) Interest rate & repayment term 10% to 48% Weighted average discount rate 6.93% Foreclosed assets $ 1,725 Discounted appraisals Appraisal adjustments (1) 9% to 37% Equity warrant assets $ 399 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 20.10% Contingent consideration liability $ 1,640 Monte Carlo simulation Volatility 25.00% December 31, 2017 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Impaired loans and leases $ 34,493 Discounted appraisals Appraisal adjustments (1) Interest rate & repayment term 10% to 25% Weighted average discount rate 6.26% Foreclosed assets $ 1,281 Discounted appraisals Appraisal adjustments (1) 10% to 37% Contingent consideration liability $ 1,900 Monte Carlo simulation Volatility 25.00% (1) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments. Estimated Fair Value of Other Financial Instruments GAAP also requires disclosure of the fair value of financial instruments carried at book value on the consolidated balance sheet. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: June 30, 2018 Carrying Amount Quoted Price In Active Markets for Identical Assets /Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 392,941 $ 392,941 $ — $ — $ 392,941 Certificates of deposit with other banks 2,250 2,243 — — 2,243 Investment securities, available-for-sale 384,943 — 384,943 — 384,943 Loans held for sale (1) 757,494 — — 772,006 772,006 Loans and leases, net of allowance for loan and lease losses (1) 1,505,018 — — 1,500,415 1,500,415 Servicing assets 52,689 — — 52,689 52,689 Accrued interest receivable 13,807 13,807 — — 13,807 Financial liabilities Deposits 2,969,236 — 2,910,479 — 2,910,479 Accrued interest payable 534 534 — — 534 Long term borrowings 3,385 — — 3,399 3,399 December 31, 2017 Carrying Amount Quoted Price In Active Markets for Identical Assets /Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 295,271 $ 295,271 $ — $ — $ 295,271 Certificates of deposit with other banks 3,000 2,993 — — 2,993 Investment securities, available-for-sale 93,355 — 93,355 — 93,355 Loans held for sale (1) 680,454 — — 706,972 706,972 Loans and leases, net of allowance for loan and lease losses (1) 1,319,783 — — 1,319,615 1,319,615 Servicing assets 52,298 — — 52,298 52,298 Accrued interest receivable 10,160 10,160 — — 10,160 Financial liabilities Deposits 2,260,263 — 2,232,370 — 2,232,370 Accrued interest payable 367 367 — — 367 Long term borrowings 26,564 — — 27,390 27,390 (1) In accordance with the adoption of ASU 2016-01, as of June 30, 2018 , the fair value of loans and leases were measured using an exit price notion. As of December 31, 2017, the fair value of loans and leases were measured using an entry price notion. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation In the normal course of business the Company is involved in various legal proceedings. Management believes that the outcome of such proceedings will not materially affect the financial position, results of operations or cash flows of the Company. Financial Instruments with Off-balance-sheet Risk The Company is 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 standby letters of credit. These instruments involve, to varying degrees, credit risk in excess of the amount recognized in the balance sheet. The Company’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. The Company uses the same credit policies in making commitments and conditional obligations as for on-balance-sheet instruments. A summary of the Company’s commitments is as follows: June 30, December 31, Commitments to extend credit $ 1,349,217 $ 1,701,137 Standby letters of credit 2,636 2,298 Solar purchase commitments 49,844 106,921 Airplane purchase agreement commitments 19,450 25,450 Total unfunded off-balance-sheet credit risk $ 1,421,147 $ 1,835,806 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate and income-producing commercial properties. In 2012, the Company began issuing commitment letters after approval of the loan by the Credit Department. Commitment letters generally expire ninety days after issuance. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Collateral held varies as specified above and is required in instances which the Company deems necessary. Solar purchase commitments are to purchase solar assets to fulfill leasing obligations. As of June 30, 2018 and December 31, 2017 , the Company had unfunded commitments to provide capital contributions for on-balance sheet investments in the amount of $3.3 million and $ 3.5 million , respectively. Concentrations of Credit Risk Although the Company is not subject to any geographic concentrations, a substantial amount of the Company’s loans, leases, and commitments to extend credit have been granted to customers in the agriculture, healthcare and veterinary verticals. The concentrations of credit by type of loan are set forth in Note 5 . The distribution of commitments to extend credit approximates the distribution of loans outstanding. The Company does not have a significant number of credits to any single borrower or group of related borrowers whereby their retained unguaranteed exposure exceeds $ 7.5 million , except for nine relationships that have a retained unguaranteed exposure of $ 109.3 million of which $ 100.3 million of the unguaranteed exposure has been disbursed. Additionally, the Company has future minimum lease payments due under non-cancelable operating leases totaling $82.7 million , of which $62.1 million is due from four relationships. The Company from time-to-time may have cash and cash equivalents on deposit with financial institutions that exceed federally-insured limits. |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Plans | Stock Plans On March 20, 2015, the Company adopted the 2015 Omnibus Stock Incentive Plan which replaced the previously existing Amended Incentive Stock Option Plan and Nonstatutory Stock Option Plan. Subsequently on May 24, 2016, the 2015 Omnibus Stock Incentive Plan was amended to authorize awards covering a maximum of 7,000,000 common voting shares and has an expiration date of March 20, 2025 . On May 15, 2018, the Amended and Restated 2015 Omnibus Stock Incentive Plan was amended to authorize awards covering a maximum of 8,750,000 common voting shares. Options or restricted shares granted under the Amended and Restated 2015 Omnibus Stock Incentive Plan (the "Plan") expire no more than 10 years from the date of grant. Exercise prices under the Plan are set by the Board of Directors at the date of grant, but shall not be less than 100% of fair market value of the related stock at the date of the grant. Options or restricted shares vest over a minimum of three years from the date of the grant. Stock Options Compensation cost relating to share-based payment transactions are recognized in the financial statements with measurement based upon the fair value of the equity or liability instruments issued. For the three months ended June 30, 2018 and 2017 , the Company recognized $ 347 thousand and $ 468 thousand in compensation expense for stock options, respectively. For the six months ended June 30, 2018 and 2017 , the Company recognized $ 780 thousand and $ 882 thousand in compensation expense for stock options, respectively. Stock option activity under the Plan during the six month periods ended June 30, 2018 and 2017 is summarized below. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2017 3,058,459 $ 11.30 Exercised 144,671 8.66 Forfeited 134,623 14.11 Granted — — Outstanding at June 30, 2018 2,779,165 $ 11.30 6.54 years $ 53,786,948 Exercisable at June 30, 2018 727,697 $ 9.83 6.27 years $ 15,148,795 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2016 3,478,208 $ 11.51 Exercised 58,921 7.73 Forfeited 195,468 14.38 Granted — — Outstanding at June 30, 2017 3,223,819 $ 11.41 7.56 years $ 41,246,695 Exercisable at June 30, 2017 596,021 $ 9.06 7.18 years $ 9,021,234 The following is a summary of non-vested stock option activity for the Company for the six months ended June 30, 2018 and 2017 . Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 2,364,999 $ 4.65 Granted — — Vested (178,908 ) 2.95 Forfeited (134,623 ) 6.26 Non-vested at June 30, 2018 2,051,468 4.79 Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2016 3,016,100 $ 4.78 Granted — — Vested (192,834 ) 2.12 Forfeited (195,468 ) 6.17 Non-vested at June 30, 2017 2,627,798 4.87 The total intrinsic value of options exercised at June 30, 2018 and 2017 was $ 2.9 million and $ 867 thousand , respectively. At June 30, 2018 , unrecognized compensation costs relating to stock options amounted to $ 7.2 million which will be recognized over a weighted average period of 2.42 years. The weighted average fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The expected volatility is based on historical volatility. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on historical exercise experience. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. There were no stock options granted during the three and six months ended June 30, 2018 or 2017 . Restricted Stock Restricted stock awards are authorized in the form of restricted stock awards or units ("RSU"s) and restricted stock awards or units with a market price condition ("Market RSU"s). RSUs have a restriction based on the passage of time and may also have a restriction based on a non-market-related performance criteria. The fair value of the RSUs is based on the closing price on the date of the grant. Market RSUs also have a restriction based on the passage of time and non-market-related performance criteria, but also have a restriction based on market price criteria related to the Company’s share price closing at or above a specified price ranging from $34.00 to $48.00 per share for at least twenty (20) consecutive trading days at any time prior to expiration date. The amount of Market RSUs earned will not exceed 100% of the Market RSUs awarded. The fair value of the Market RSUs and the implied service period is calculated using the Monte Carlo simulation method. RSU stock activity under the Plan during the first six months of 2018 is summarized below. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 181,814 $ 20.03 Granted 152,422 28.01 Vested (56,799 ) 26.54 Forfeited (11,320 ) 23.36 Non-vested at June 30, 2018 266,117 23.07 For the three months ended June 30, 2018 and 2017 , the Company recognized $ 921 thousand and $167 thousand in compensation expense for RSUs, respectively. For the six months ended June 30, 2018 and 2017 , the Company recognized $ 1.8 million and $ 326 thousand in compensation expense for RSUs, respectively. At June 30, 2018 , unrecognized compensation costs relating to RSUs amounted to $ 5.3 million which will be recognized over a weighted average period of 4.78 years. Market RSU stock activity under the Plan during the first six months of 2018 is summarized below. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 2,532,808 $ 8.78 Granted 75,000 17.51 Vested — — Forfeited (216,019 ) 9.06 Non-vested at June 30, 2018 2,391,789 9.03 The compensation expense for Market RSUs is measured based on their grant date fair value as calculated using the Monte Carlo simulation and is recognized on a straight-line basis over the average vesting period. The Monte Carlo simulation used 100,000 simulation paths to assess the expected date of achieving the market price criteria. Related to the 75,000 Market RSUs granted on May 14, 2018, the share price simulation was based on the Cox, Ross & Rubinstein option pricing methodology for a period of 7.0 years. The implied term of the restricted stock was 3.3 years. The Monte Carlo Simulation used various assumptions that included a risk free rate of return of 2.96% , expected volatility of 27.00% and a dividend yield of 0.42% . For the three months ended June 30, 2018 and 2017 , the Company recognized $ 947 thousand and $ 1.2 million in compensation expense for Market RSUs, respectively. For the six months ended June 30, 2018 and 2017 , the Company recognized $ 1.9 million and $ 2.4 million in compensation expense for Market RSUs, respectively. At June 30, 2018 , unrecognized compensation costs relating to Market RSUs amounted to $ 13.5 million which will be recognized over a weighted average period of 2.56 years. Employee Stock Purchase Plan The Company adopted an Employee Stock Purchase Plan on October 8, 2014. On May 24, 2016, the plan was amended and the Amended and Restated Employee Stock Purchase Plan (the "ESPP") became effective within the meaning of Section 423 of the Internal Revenue Code of 1986, as amended. Under the ESPP, eligible employees are able to purchase available shares with post-tax dollars as of the grant date. In order for employees to be eligible to participate in the ESPP they must be employed or on an authorized leave of absence from the Company or any subsidiary immediately prior to the grant date. ESPP stock purchases cannot exceed $ 25 thousand in fair market value per employee per calendar year. Options to purchase shares under the ESPP are granted at a 15% discount to fair market value. There was no expense recognized in relation to the ESPP for the three months ended June 30, 2018 and 2017 . For the six months ended June 30, 2018 and 2017 the Company recognized $ 29 thousand and $ 43 thousand expense, respectively. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Subsequent Event | Subsequent Event On August 1, 2018, the Company financed the sale of its entire interest in Reltco, Inc. and National Assurance Title, Inc. for $ 3.0 million . Finalization of Reltco's financial records as of August 1, 2018, is still in process. Accordingly, accounting for the financial impact of this divestiture is still in process. Based on initial estimates, the Company anticipates this sale to result in a net cost of approximately $ 2.5 million . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General In the opinion of management, all adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included, and all intercompany transactions have been eliminated in consolidation. Results of operations for the six months ended June 30, 2018 are not necessarily indicative of the results of operations that may be expected for the year ending December 31, 2018 . The consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 , filed with the Securities Exchange Commission on March 8, 2018 (SEC File No. 001-37497) (the "2017 Annual Report"). A summary description of the significant accounting policies followed by the Company is set forth in Note 1 of the Notes to Consolidated Financial Statements in the Company’s 2017 Annual Report. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes in the Company's 2017 Annual Report. The preparation of financial statements in conformity with United States generally accepted accounting principles, or GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Amounts in all tables in the Notes to Unaudited Consolidated Financial Statements have been presented in thousands, except percentage, time period, stock option, share and per share data or where otherwise indicated. |
Business Segments | Business Segments Management has determined that the Company has one significant operating segment, which is providing a lending platform for small businesses nationwide. In determining the appropriateness of segment definition, the Company considers the materiality of a potential segment, the components of the business about which financial information is available, and components for which management regularly evaluates relative to resource allocation and performance assessment. |
Unconsolidated Joint Venture | Unconsolidated Joint Venture On October 1, 2017, the Company started the digital banking joint venture between Live Oak Banking Company and First Data Corporation ("First Data"). The new company, named Apiture, combines First Data's and the Bank's digital banking platforms, products, services, and certain human resources used in the creation and delivery of technology solutions for financial institutions. The contributed assets of both the Company and First Data are considered businesses in accordance with relevant accounting standards. At closing both the Bank and First Data received equal voting interests in Apiture in exchange for their respective contributions. As a term of the closing agreements, First Data is entitled to a preference in Apiture's cash earnings from the date of closing through December 31, 2017 and all of 2018, not to exceed $ 18.0 million and $ 18.9 million , respectively. As a result of the above cash earnings preference, income (loss) is allocated utilizing the hypothetical liquidation at book value ("HLBV") method. Under the HLBV method, we allocate income or loss based on the change in each unitholders’ claim on the net assets of Apiture at period end, after adjusting for any distributions or contributions made during such period. As a result of the HLBV method there was no net income or loss attributed to the Company related its ownership interest in Apiture during the three and six months ended June 30, 2018 . |
Derivative Financial Instruments | Derivative Financial Instruments Interest Rate Futures Contracts During the fourth quarter of 2016, the Company began using exchange-traded interest rate futures contracts to manage interest rate risk that may impact expected gains arising from future secondary market loan sales. Upon entering into a futures contract, the Company is required to pledge to the counterparty an amount of cash equal to a certain percentage of the contract amount, also known as an initial margin deposit. Subsequent payments, known as variation margin, are made or received by the Company each day to settle the daily fluctuations in the fair value of the underlying contract. Investments in these derivative contracts are subject to risks that can result in a loss of all or part of an investment. Credit risk is considered low because the counterparties are futures exchanges. The Company has not designated any derivative as a hedging instrument under applicable accounting guidance. Changes in fair value of the derivative contracts is recorded as a component of "net gains on sales of loans" on the consolidated statement of income. The fair value of the derivative contracts on the balance sheet date is zero due to the daily cash settlement of contracts. Equity Warrant Assets In connection with negotiated credit facilities and certain other services, the Company may obtain equity warrant assets giving the Company the right to acquire stock in private companies in certain verticals. These assets are held for prospective investment gains and are not used to hedge any economic risks. Further, the Company does not use other derivative instruments to hedge economic risks stemming from equity warrant assets. Equity warrant assets in certain private client companies are recorded as derivatives when they contain net settlement terms and other qualifying criteria under Accounting Standards Codification 815. Equity warrant assets entitle the Company to purchase a specific number of shares of stock at a specific price within a specific time period, generally 10 years. Certain equity warrant assets contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events to prevent dilution of the Company’s implied ownership represented by the warrants. Certain warrant agreements contain net share settlement provisions, which permit the receipt of, upon exercise, a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a “cashless” exercise). These equity warrant assets are recorded at fair value and are classified as derivative assets, a component of other assets, on the consolidated balance sheet at the time they are obtained. The grant date fair values of equity warrant assets classified as derivatives received in connection with the issuance of a credit facility are deemed to be loan fees and recognized as an adjustment of loan yield through loan interest income. Similar to other loan fees, the yield adjustment related to grant date fair value of warrants is recognized over the life of that credit facility. Any changes in fair value from the grant date fair value of equity warrant assets classified as derivatives will be recognized as increases or decreases to other assets on the consolidated balance sheet and as net gains or losses on derivative instruments, in other noninterest income, a component of consolidated net income. When a portfolio company is acquired, the Company may exercise these equity warrant assets for shares or cash. The fair value of equity warrant assets classified as derivatives is reviewed quarterly using a Black-Scholes option pricing model. For those equity warrant assets that do not contain net share settlement provisions, the Company considers these to be equity investments without readily determinable market values and records the asset at cost. |
Revenue Recognition | Revenue Recognition On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. The implementation of the new standard did not have a material impact on the measurement or recognition of revenue and a cumulative effect adjustment to opening retained earnings was not necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and lease financings or investment securities. In addition, certain noninterest income streams such as fees associated with servicing rights, financial guarantees, derivatives, title insurance, and equity and cost method investments are also not in scope of the new guidance. Therefore, the recognition of these revenue streams did not change upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Other noninterest income Other noninterest income consists of other recurring revenue streams from administration of trust assets held by the Company's trust department and from services provided by GLS to its clients for settlement, accounting, and valuation for government guaranteed loan sales and holdings. Trust account administration performance obligations are generally satisfied over time and fees are recognized monthly, based on the month-end market value of assets in fiduciary accounts and the applicable fee rate. Payment is generally received after month end through a direct charge to customers' accounts. The Company does not earn performance-based incentives from trust account administration services. GLS provides services when requested by clients. Each requested service represents a specific performance obligation with a transaction price outlined by GLS' fee schedule. Revenue is recognized as the requested services are completed and payment is generally received the following month. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as trust administration fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017 , the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior period’s consolidated financial statements to place them on a comparable basis with the current year. Net income and shareholders’ equity previously reported were not affected by these reclassifications. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). This standard is intended to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP. The Company's revenue is comprised of loan servicing revenue, net gains on sales of loans and net interest income on financial assets and financial liabilities, all of which are explicitly excluded from the scope of ASU 2014-09, and non-interest income. The Company's revenue streams included in non-interest income that are within the scope of the guidance are primarily related to sales of foreclosed assets, construction supervision fees, title insurance income and trust fiduciary fees. The Company adopted the standard in the first quarter of 2018 with no material impact on the consolidated financial statements. Refer to Note 1. Basis of Presentation for additional information. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. The Company adopted the standard in the first quarter of 2018 with no material impact on the consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of the loan and lease portfolio using an exit price notion. See Note 10. Fair Value of Financial Instruments for additional information. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for the Company on January 1, 2019. The impact of this standard will depend on the Company's lease portfolio at the time of the adoption and the Company is currently assessing the effect that the adoption of this standard will have on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). This new guidance replaces the incurred loss impairment methodology in current standards with an expected credit loss methodology and requires consideration of a broader range of information to determine credit loss estimates. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective for the Company on January 1, 2020. The Company is currently evaluating the potential impact of ASU 2016-13 on the consolidated financial statements. In that regard, a cross-functional working group has been formed, under the direction of the Company's Chief Financial Officer and Chief Credit Officer. The working group is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others. The Company is currently developing an implementation plan to include assessment of processes, portfolio segmentation, model development, system requirements and the identification of data and resource needs, among other things. The Company has also selected a third-party vendor solution to assist in the application of the ASU 2016-13. While the Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, the impact of adoption is expected to be significantly influenced by the composition, characteristics and quality of loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business” (“ASU 2017-01”). ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In February 2017, the FASB issued ASU No. 2017-05, “Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20) - Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” (“ASU 2017-05”). ASU 2017-05 clarifies the scope of Subtopic 610-20 and adds guidance on nonfinancial asset derecognition as well as the accounting for partial sales of nonfinancial assets. The amendments conform the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 clarifies when changes to the terms or conditions of a share-based payment award should be accounted for as a modification. This guidance indicates modification accounting is required when the fair value, vesting conditions, or classification of the award changes. The Company adopted the standard in the first quarter of 2018 with no effect on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 addresses the income tax accounting treatment of the stranded tax effects within other comprehensive income. The ASU allows for an entity to reclassify the stranded tax effects resulting from the Tax Cuts and Jobs Act from accumulated other comprehensive income to retained earnings. ASU 2018-02 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company early adopted ASU 2018-02 in the first quarter of 2018 and reclassified its stranded tax credit of $ 244 thousand within accumulated other comprehensive income to retained earnings at March 31, 2018. In February 2018, the FASB issued ASU No. 2018-03, “Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2018-03”). ASU 2018-03 amendments clarify certain aspects of the guidance issued in ASU 2016-01. The amendments are effective for the Company for fiscal year 2018 with adoption as of July 1, 2018. The Company does not expect these amendments to have a material effect on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118” (“ASU 2018-05”). ASU 2018-05 amends Accounting Standard Codification 740 to include recent SEC guidance pursuant to the issuance of SAB 118. These amendments address situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. The amendments were effective upon issuance and do not have a material effect on the Company's consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07 “Compensation - Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting” (“ASU 2018-07”). ASU 2018-07 amends Accounting Standard Codification 718 to largely align accounting for share-based payment awards issued to employees and nonemployees. Under the new guidance existing employee guidance will generally apply to nonemployee share-based transactions, except for specific guidance on inputs into option pricing models and the attribution of cost. The amendments are effective for the Company on January 1, 2019 with early adoption permitted. The Company does not expect these amendments to have a material effect on its consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | Three Months Ended Six Months Ended 2018 2017 2018 2017 Basic earnings per share: Net income available to common shareholders $ 14,253 $ 9,795 $ 26,706 $ 15,907 Weighted-average basic shares outstanding 40,027,336 34,618,721 39,977,336 34,543,229 Basic earnings per share $ 0.36 $ 0.28 $ 0.67 $ 0.46 Diluted earnings per share: Net income available to common shareholders, for diluted earnings per share $ 14,253 $ 9,795 $ 26,706 $ 15,907 Total weighted-average basic shares outstanding 40,027,336 34,618,721 39,977,336 34,543,229 Add effect of dilutive stock options and restricted stock grants 1,592,311 1,323,320 1,538,997 1,228,953 Total weighted-average diluted shares outstanding 41,619,647 35,942,041 41,516,333 35,772,182 Diluted earnings per share $ 0.34 $ 0.27 $ 0.64 $ 0.44 Anti-dilutive shares — 245,583 9,102 983,174 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying Amount and Fair Value of Investment Securities | The carrying amount of investment securities and their approximate fair values are reflected in the following table: Amortized Cost Unrealized Gains Unrealized Losses Fair Value June 30, 2018 US treasury securities $ 4,961 $ — $ 9 $ 4,952 US government agencies 32,896 — 395 32,501 Residential mortgage-backed securities 351,556 14 6,133 345,437 Mutual fund 2,129 — 76 2,053 Total $ 391,542 $ 14 $ 6,613 $ 384,943 December 31, 2017 US government agencies $ 22,778 $ 3 $ 157 $ 22,624 Residential mortgage-backed securities 70,167 1 1,472 68,696 Mutual fund 2,090 — 55 2,035 Total $ 95,035 $ 4 $ 1,684 $ 93,355 |
Gross Unrealized Losses and Fair Value of Securities in a Continuous Unrealized Loss Position | The following tables show gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position. Less Than 12 Months 12 Months or More Total June 30, 2018 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses US treasury securities $ 4,952 $ 9 $ — $ — $ 4,952 $ 9 US government agencies 21,045 343 6,462 52 27,507 395 Residential mortgage-backed securities 292,323 4,083 41,850 2,050 334,173 6,133 Mutual fund — — 2,053 76 2,053 76 Total $ 318,320 $ 4,435 $ 50,365 $ 2,178 $ 368,685 $ 6,613 Less Than 12 Months 12 Months or More Total December 31, 2017 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses US government agencies $ 14,842 $ 100 $ 6,465 $ 57 $ 21,307 $ 157 Residential mortgage-backed securities 23,481 439 40,648 1,033 64,129 1,472 Mutual fund — — 2,035 55 2,035 55 Total $ 38,323 $ 539 $ 49,148 $ 1,145 $ 87,471 $ 1,684 |
Summary of Investment Securities by Maturity | The following is a summary of investment securities by maturity: June 30, 2018 Available-for-Sale Amortized cost Fair value US treasury securities One to five years $ 4,961 $ 4,952 Total 4,961 4,952 US government agencies Within one year 6,323 6,300 One to five years 26,573 26,201 Total 32,896 32,501 Residential mortgage-backed securities One to five years 4,298 4,121 Five to ten years 51,439 50,648 After 10 years 295,819 290,668 Total 351,556 345,437 Total $ 389,413 $ 382,890 |
Loans and Leases Held for Inv24
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Composition of Loans and Leases | Loans and leases consist of the following: June 30, December 31, Commercial & Industrial Agriculture $ 5,813 $ 3,274 Death Care Management 15,720 13,495 Healthcare 44,524 43,301 Independent Pharmacies 102,995 99,920 Registered Investment Advisors 96,473 93,770 Veterinary Industry 49,156 46,387 Other Industries 217,551 184,903 Total 532,232 485,050 Construction & Development Agriculture 34,971 34,188 Death Care Management 7,542 6,119 Healthcare 61,114 49,770 Independent Pharmacies 2,186 1,496 Registered Investment Advisors 1,286 376 Veterinary Industry 18,198 13,184 Other Industries 74,450 58,120 Total 199,747 163,253 Commercial Real Estate Agriculture 49,009 46,717 Death Care Management 66,671 67,381 Healthcare 152,025 126,631 Independent Pharmacies 19,368 19,028 Registered Investment Advisors 11,040 11,789 Veterinary Industry 122,593 113,932 Other Industries 194,266 134,172 Total 614,972 519,650 Commercial Land Agriculture 193,613 178,897 Total 193,613 178,897 Total Loans and Leases 1 1,540,564 1,346,850 Net Deferred Costs 8,470 8,545 Discount on SBA 7(a) and USDA Unguaranteed 2 (14,666 ) (11,422 ) Loans and Leases, Net of Unearned $ 1,534,368 $ 1,343,973 1 Total loans and leases include $ 141.5 million and $ 99.7 million of U.S. government guaranteed loans as of June 30, 2018 and December 31, 2017 , respectively. 2 The Company measures the carrying value of the retained portion of loans sold at fair value under ASC Subtopic 825-10. The value of these retained loan balances is discounted based on the estimates derived from comparable unguaranteed loan sales. |
Summary of Risk Grades of Each Category of Loans | The following tables summarize the risk grades of each category: Risk Grades 1 - 4 Risk Grade 5 Risk Grades 6 - 8 Total June 30, 2018 Commercial & Industrial Agriculture $ 5,596 $ 217 $ — $ 5,813 Death Care Management 15,517 197 6 15,720 Healthcare 36,461 3,256 4,807 44,524 Independent Pharmacies 88,684 6,554 7,757 102,995 Registered Investment Advisors 92,254 1,420 2,799 96,473 Veterinary Industry 44,754 1,649 2,753 49,156 Other Industries 203,813 12,366 1,372 217,551 Total 487,079 25,659 19,494 532,232 Construction & Development Agriculture 32,431 — 2,540 34,971 Death Care Management 7,542 — — 7,542 Healthcare 56,542 2,534 2,038 61,114 Independent Pharmacies 2,186 — — 2,186 Registered Investment Advisors 1,286 — — 1,286 Veterinary Industry 17,012 1,186 — 18,198 Other Industries 72,558 1,892 — 74,450 Total 189,557 5,612 4,578 199,747 Commercial Real Estate Agriculture 49,009 — — 49,009 Death Care Management 59,696 3,862 3,113 66,671 Healthcare 129,714 9,378 12,933 152,025 Independent Pharmacies 13,603 2,930 2,835 19,368 Registered Investment Advisors 10,908 132 — 11,040 Veterinary Industry 103,055 3,655 15,883 122,593 Other Industries 192,441 1,825 — 194,266 Total 558,426 21,782 34,764 614,972 Commercial Land Agriculture 183,117 5,371 5,125 193,613 Total 183,117 5,371 5,125 193,613 Total 1 $ 1,418,179 $ 58,424 $ 63,961 $ 1,540,564 Risk Grades 1 - 4 Risk Grade 5 Risk Grades 6 - 8 Total December 31, 2017 Commercial & Industrial Agriculture $ 3,052 $ 222 $ — $ 3,274 Death Care Management 13,371 117 7 13,495 Healthcare 36,530 2,246 4,525 43,301 Independent Pharmacies 86,152 5,541 8,227 99,920 Registered Investment Advisors 90,911 2,134 725 93,770 Veterinary Industry 42,313 1,704 2,370 46,387 Other Industries 184,540 363 — 184,903 Total 456,869 12,327 15,854 485,050 Construction & Development Agriculture 31,738 2,450 — 34,188 Death Care Management 6,119 — — 6,119 Healthcare 47,813 699 1,258 49,770 Independent Pharmacies 1,496 — — 1,496 Registered Investment Advisors 376 — — 376 Veterinary Industry 13,184 — — 13,184 Other Industries 58,120 — — 58,120 Total 158,846 3,149 1,258 163,253 Commercial Real Estate Agriculture 46,717 — — 46,717 Death Care Management 60,671 3,881 2,829 67,381 Healthcare 112,321 9,992 4,318 126,631 Independent Pharmacies 15,641 1,825 1,562 19,028 Registered Investment Advisors 11,649 140 — 11,789 Veterinary Industry 97,065 2,948 13,919 113,932 Other Industries 133,493 679 — 134,172 Total 477,557 19,465 22,628 519,650 Commercial Land Agriculture 176,811 2,086 — 178,897 Total 176,811 2,086 — 178,897 Total 1 $ 1,270,083 $ 37,027 $ 39,740 $ 1,346,850 1 Total loans and leases include $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , segregated by risk grade as follows: Risk Grades 1 – 4 = $ 84.8 million , Risk Grade 5 = $ 12.0 million , Risk Grades 6 – 8 = $ 44.7 million . As of December 31, 2017 , total loans and leases include $ 99.7 million of U.S. government guaranteed loans, segregated by risk grade as follows: Risk Grades 1 – 4 = $ 65.0 million , Risk Grade 5 = $ 6.7 million , Risk Grades 6 – 8 = $ 28.0 million . |
Age Analysis of Past Due Loans and Leases | The following tables show an age analysis of past due loans and leases as of the dates presented. Less Than 30 Days Past Due & Not Accruing 30-89 Days Past Due & Accruing 30-89 Days Past Due & Not Accruing Greater Than 90 Days Past Due Total Not Current Total Loans and Leases 90 June 30, 2018 Commercial & Industrial Agriculture $ — $ — $ — $ — $ — $ 5,813 $ 5,813 $ — Death Care Management — — — — — 15,720 15,720 — Healthcare — 49 757 2,287 3,093 41,431 44,524 — Independent Pharmacies 338 — — 7,308 7,646 95,349 102,995 — Registered Investment Advisors — 577 2,102 — 2,679 93,794 96,473 — Veterinary Industry 170 126 620 1,072 1,988 47,168 49,156 — Other Industries 596 615 — — 1,211 216,340 217,551 — Total 1,104 1,367 3,479 10,667 16,617 515,615 532,232 — Construction & Development Agriculture — — — 2,539 2,539 32,432 34,971 — Death Care Management — — — — — 7,542 7,542 — Healthcare — — — — — 61,114 61,114 — Independent Pharmacies — — — — — 2,186 2,186 — Registered Investment Advisors — — — — — 1,286 1,286 — Veterinary Industry — 1,186 — — 1,186 17,012 18,198 — Other Industries — 37 — — 37 74,413 74,450 — Total — 1,223 — 2,539 3,762 195,985 199,747 — Commercial Real Estate Agriculture — — — — — 49,009 49,009 — Death Care Management 158 1,447 — 1,358 2,963 63,708 66,671 — Healthcare 2,334 — 37 6,596 8,967 143,058 152,025 — Independent Pharmacies 2,835 — — — 2,835 16,533 19,368 — Registered Investment Advisors — — — — — 11,040 11,040 — Veterinary Industry 1,867 3,185 2,506 5,500 13,058 109,535 122,593 — Other Industries — — — — — 194,266 194,266 — Total 7,194 4,632 2,543 13,454 27,823 587,149 614,972 — Commercial Land Agriculture 5,125 — — — 5,125 188,488 193,613 — Total 5,125 — — — 5,125 188,488 193,613 — Total 1 $ 13,423 $ 7,222 $ 6,022 $ 26,660 $ 53,327 $ 1,487,237 $ 1,540,564 $ — Less Than 30 Days Past Due & Not Accruing 30-89 Days Past Due & Accruing 30-89 Days Past Due & Not Accruing Greater Than 90 Days Past Due Total Not Current Total Loans and Leases 90 December 31, 2017 Commercial & Industrial Agriculture $ — $ — $ — $ — $ — $ 3,274 $ 3,274 $ — Death Care Management — — — — — 13,495 13,495 — Healthcare 788 131 14 3,004 3,937 39,364 43,301 — Independent Pharmacies 236 2,930 1,349 3,376 7,891 92,029 99,920 — Registered Investment Advisors — 321 — — 321 93,449 93,770 — Veterinary Industry 212 594 508 797 2,111 44,276 46,387 — Other Industries — — — — — 184,903 184,903 — Total 1,236 3,976 1,871 7,177 14,260 470,790 485,050 — Construction & Development Agriculture — — — — — 34,188 34,188 — Death Care Management — — — — — 6,119 6,119 — Healthcare — — — — — 49,770 49,770 — Independent Pharmacies — — — — — 1,496 1,496 — Registered Investment Advisors — — — — — 376 376 — Veterinary Industry — — — — — 13,184 13,184 — Other Industries — — — — — 58,120 58,120 — Total — — — — — 163,253 163,253 — Commercial Real Estate Agriculture — — — — — 46,717 46,717 — Death Care Management — — 168 1,391 1,559 65,822 67,381 — Healthcare 40 54 1,916 1,550 3,560 123,071 126,631 — Independent Pharmacies — — — 1,562 1,562 17,466 19,028 — Registered Investment Advisors — — — — — 11,789 11,789 — Veterinary Industry 1,804 3,226 — 4,765 9,795 104,137 113,932 — Other Industries — — — — — 134,172 134,172 — Total 1,844 3,280 2,084 9,268 16,476 503,174 519,650 — Commercial Land Agriculture — — — — — 178,897 178,897 — Total — — — — — 178,897 178,897 — Total 1 $ 3,080 $ 7,256 $ 3,955 $ 16,445 $ 30,736 $ 1,316,114 $ 1,346,850 $ — 1 Total loans and leases include $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , of which $ 21.7 million is greater than 90 days past due, $ 9.2 million is 30-89 days past due and $ 110.6 million is included in current loans and leases as presented above. As of December 31, 2017 , total loans and leases include $ 99.7 million of U.S. government guaranteed loans, of which $ 15.0 million is greater than 90 days past due, $ 7.4 million is 30-89 days past due and $ 77.3 million is included in current loans and leases as presented above. |
Nonaccrual Loans and Leases | Nonaccrual loans and leases as of June 30, 2018 and December 31, 2017 are as follows: June 30, 2018 Loan and Lease Balance Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Healthcare $ 3,044 $ 2,735 $ 309 Independent Pharmacies 7,646 6,919 727 Registered Investment Advisors 2,102 1,577 525 Veterinary Industry 1,862 1,827 35 Other Industries 596 — 596 Total 15,250 13,058 2,192 Construction & Development Agriculture 2,539 1,904 635 Total 2,539 1,904 635 Commercial Real Estate Death Care Management 1,516 1,210 306 Healthcare 8,967 6,080 2,887 Independent Pharmacies 2,835 2,126 709 Veterinary Industry 9,873 8,531 1,342 Total 23,191 17,947 5,244 Commercial Land Agriculture 5,125 1,730 3,395 Total 5,125 1,730 3,395 Total $ 46,105 $ 34,639 $ 11,466 December 31, 2017 Loan and Lease Balance Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Healthcare $ 3,806 $ 3,235 $ 571 Independent Pharmacies 4,961 3,906 1,055 Veterinary Industry 1,517 1,478 39 Total 10,284 8,619 1,665 Commercial Real Estate Death Care Management 1,559 1,237 322 Healthcare 3,506 2,719 787 Independent Pharmacies 1,562 1,562 — Veterinary Industry 6,569 5,733 836 Total 13,196 11,251 1,945 Total $ 23,480 $ 19,870 $ 3,610 |
Activity in the Allowance for Loan and Lease Losses by Portfolio Segment | The following table details activity in the allowance for loan and lease losses by portfolio segment allowance for the periods presented: Three months ended Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total June 30, 2018 Beginning Balance $ 2,428 $ 11,244 $ 12,201 $ 2,177 $ 28,050 Charge offs — (419 ) (549 ) — (968 ) Recoveries — 29 152 — 181 Provision (201 ) 554 1,573 161 2,087 Ending Balance $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 June 30, 2017 Beginning Balance $ 1,884 $ 6,226 $ 7,846 $ 2,239 $ 18,195 Charge offs — (19 ) (178 ) — (197 ) Recoveries — 4 2 — 6 Provision (281 ) 1,283 681 (127 ) 1,556 Ending Balance $ 1,603 $ 7,494 $ 8,351 $ 2,112 $ 19,560 Six months ended Construction & Commercial Commercial Commercial Total June 30, 2018 Beginning Balance $ 2,030 $ 9,180 $ 10,751 $ 2,229 $ 24,190 Charge offs — (419 ) (1,221 ) — (1,640 ) Recoveries — 33 288 — 321 Provision 197 2,614 3,559 109 6,479 Ending Balance $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 June 30, 2017 Beginning Balance $ 1,693 $ 5,897 $ 8,413 $ 2,206 $ 18,209 Charge offs — (287 ) (1,411 ) (35 ) (1,733 ) Recoveries — 13 16 — 29 Provision (90 ) 1,871 1,333 (59 ) 3,055 Ending Balance $ 1,603 $ 7,494 $ 8,351 $ 2,112 $ 19,560 The following tables detail the recorded allowance for loan and lease losses and the investment in loans and leases related to each portfolio segment, disaggregated on the basis of impairment evaluation methodology: June 30, 2018 Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total Allowance for Loan and Lease Losses: Loans and leases individually evaluated for impairment $ 365 $ 2,601 $ 2,597 $ 1,355 $ 6,918 Loans and leases collectively evaluated for impairment 2 1,862 8,807 10,780 983 22,432 Total allowance for loan and lease losses $ 2,227 $ 11,408 $ 13,377 $ 2,338 $ 29,350 Loans and leases receivable 1 : Loans and leases individually evaluated for impairment $ 4,557 $ 28,966 $ 10,836 $ 5,116 $ 49,475 Loans and leases collectively evaluated for impairment 2 195,190 586,006 521,396 188,497 1,491,089 Total loans and leases receivable $ 199,747 $ 614,972 $ 532,232 $ 193,613 $ 1,540,564 December 31, 2017 Construction & Development Commercial Real Estate Commercial & Industrial Commercial Land Total Allowance for Loan and Lease Losses: Loans and leases individually evaluated for impairment $ 157 $ 1,502 $ 1,126 $ — $ 2,785 Loans and leases collectively evaluated for impairment 2 1,873 7,678 9,625 2,229 21,405 Total allowance for loan and lease losses $ 2,030 $ 9,180 $ 10,751 $ 2,229 $ 24,190 Loans and leases receivable 1 : Loans and leases individually evaluated for impairment $ 1,237 $ 17,105 $ 8,672 $ — $ 27,014 Loans and leases collectively evaluated for impairment 2 162,016 502,545 476,378 178,897 1,319,836 Total loans and leases receivable $ 163,253 $ 519,650 $ 485,050 $ 178,897 $ 1,346,850 1 Loans and leases receivable includes $ 141.5 million of U.S. government guaranteed loans as of June 30, 2018 , of which $ 45.2 million are impaired. As of December 31, 2017 , loans and leases receivable includes $ 99.7 million of U.S. government guaranteed loans, of which $ 28.1 million are considered impaired. 2 Included in loans and leases collectively evaluated for impairment are impaired loans and leases with individual unguaranteed exposure of less than $100 thousand. As of June 30, 2018 , these balances totaled $ 15.7 million , of which $ 14.4 million are guaranteed by the U.S. government and $ 1.3 million are unguaranteed. As of December 31, 2017 , these balances totaled $ 14.8 million , of which $ 13.2 million are guaranteed by the U.S. government and $ 1.6 million are unguaranteed. The allowance for loan and lease losses associated with these loans and leases totaled $ 510 thousand and $ 279 thousand as of June 30, 2018 and December 31, 2017 , respectively. |
Impaired Loans and Leases | Loans and leases classified as impaired as of the dates presented are summarized in the following tables. June 30, 2018 Recorded Investment Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Death Care Management $ 6 $ — $ 6 Healthcare 4,836 3,468 1,368 Independent Pharmacies 8,054 6,918 1,136 Registered Investment Advisors 2,807 1,577 1,230 Veterinary Industry 2,900 2,328 572 Other Industries 1,371 163 1,208 Total 19,974 14,454 5,520 Construction & Development Agriculture 2,534 1,905 629 Healthcare 2,023 1,528 495 Total 4,557 3,433 1,124 Commercial Real Estate Death Care Management 3,137 2,296 841 Healthcare 13,573 9,241 4,332 Independent Pharmacies 2,834 2,126 708 Veterinary Industry 15,947 11,916 4,031 Total 35,491 25,579 9,912 Commercial Land Agriculture 5,116 1,730 3,386 Total 5,116 1,730 3,386 Total $ 65,138 $ 45,196 $ 19,942 December 31, 2017 Recorded Investment Guaranteed Balance Unguaranteed Exposure Commercial & Industrial Death Care Management $ 7 $ — $ 7 Healthcare 4,551 3,235 1,316 Independent Pharmacies 8,571 6,356 2,215 Registered Investment Advisors 733 — 733 Veterinary Industry 2,762 2,001 761 Total 16,624 11,592 5,032 Construction & Development Healthcare 1,237 944 293 Total 1,237 944 293 Commercial Real Estate Death Care Management 2,831 1,237 1,594 Healthcare 4,315 2,967 1,348 Independent Pharmacies 1,562 1,562 — Veterinary Industry 15,266 9,768 5,498 Total 23,974 15,534 8,440 Commercial Land Agriculture — — — Total — — — Total $ 41,835 $ 28,070 $ 13,765 The following table presents evaluated balances of loans and leases classified as impaired at the dates presented that carried an associated reserve as compared to those with no reserve. The recorded investment includes accrued interest and net deferred loan and lease fees or costs. June 30, 2018 Recorded Investment With a Recorded Allowance With No Recorded Allowance Total Unpaid Principal Balance Related Allowance Recorded Commercial & Industrial Death Care Management $ 6 $ — $ 6 $ 6 $ 1 Healthcare 4,081 755 4,836 5,221 378 Independent Pharmacies 7,639 415 8,054 9,183 400 Registered Investment Advisors 2,807 — 2,807 2,799 1,012 Veterinary Industry 2,900 — 2,900 3,279 194 Other Industries 1,371 — 1,371 1,372 757 Total 18,804 1,170 19,974 21,860 2,742 Construction & Development Agriculture 2,534 — 2,534 2,539 17 Healthcare 2,023 — 2,023 2,038 348 Total 4,557 — 4,557 4,577 365 Commercial Real Estate Death Care Management 2,980 157 3,137 3,248 160 Healthcare 13,202 371 13,573 13,566 1,242 Independent Pharmacies 2,834 — 2,834 2,835 288 Veterinary Industry 15,947 — 15,947 16,956 1,276 Total 34,963 528 35,491 36,605 2,966 Commercial Land Agriculture 5,116 — 5,116 5,125 1,355 Total 5,116 — 5,116 5,125 1,355 Total Impaired Loans and Leases $ 63,440 $ 1,698 $ 65,138 $ 68,167 $ 7,428 December 31, 2017 Recorded Investment With a Recorded Allowance With No Recorded Allowance Total Unpaid Principal Balance Related Allowance Recorded Commercial & Industrial Death Care Management $ — $ 7 $ 7 $ 7 $ — Healthcare 3,521 1,030 4,551 5,643 165 Independent Pharmacies 8,154 417 8,571 9,078 521 Registered Investment Advisors 662 71 733 725 504 Veterinary Industry 2,505 257 2,762 3,113 182 Total 14,842 1,782 16,624 18,566 1,372 Construction & Development Healthcare 1,237 — 1,237 1,258 157 Total 1,237 — 1,237 1,258 157 Commercial Real Estate Death Care Management 2,221 610 2,831 2,964 260 Healthcare 3,717 598 4,315 4,332 192 Independent Pharmacies 1,562 — 1,562 1,933 8 Veterinary Industry 13,711 1,555 15,266 16,584 1,075 Total 21,211 2,763 23,974 25,813 1,535 Commercial Land Agriculture — — — 58 — Total — — — 58 — Total Impaired Loans and Leases $ 37,290 $ 4,545 $ 41,835 $ 45,695 $ 3,064 The following table presents the average recorded investment of impaired loans and leases for each period presented and interest income recognized during the period in which the loans and leases were considered impaired. Three months ended Three months ended Average Interest Average Interest Commercial & Industrial Death Care Management $ 7 $ — $ 111 $ 2 Healthcare 5,094 19 6,708 19 Independent Pharmacies 7,978 7 5,647 23 Registered Investment Advisors 2,818 12 2,100 15 Veterinary Industry 2,930 18 2,448 10 Other Industries 1,373 5 — — Total 20,200 61 17,014 69 Construction & Development Agriculture 2,526 — — — Healthcare 1,799 28 — — Total 4,325 28 — — Commercial Real Estate Death Care Management 3,122 27 2,536 14 Healthcare 12,852 64 1,808 12 Independent Pharmacies 2,836 1 2,169 — Veterinary Industry 16,135 98 14,777 133 Total 34,945 190 21,290 159 Commercial Land Agriculture 5,138 25 196 — Total 5,138 25 196 — Total $ 64,608 $ 304 $ 38,500 $ 228 Six months ended Six months ended Average Interest Average Interest Commercial & Industrial Death Care Management $ 7 $ — $ 1,776 $ 3 Healthcare 5,188 31 5,054 41 Independent Pharmacies 8,038 27 5,050 37 Registered Investment Advisors 2,825 24 1,740 30 Veterinary Industry 2,917 38 8,663 21 Other Industries 1,373 5 — — Total 20,348 125 22,283 132 Construction & Development Agriculture 2,509 5 — — Healthcare 1,579 51 — — Total 4,088 56 — — Commercial Real Estate Death Care Management 3,133 64 6,637 19 Healthcare 12,486 80 1,642 24 Independent Pharmacies 2,836 1 1,176 — Veterinary Industry 16,159 235 6,663 238 Total 34,614 380 16,118 281 Commercial Land Agriculture 5,138 25 466 — Total 5,138 25 466 — Total $ 64,188 $ 586 $ 38,867 $ 413 |
Equipment Leasing (Tables)
Equipment Leasing (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Leases [Abstract] | |
Net Lease Investment | The gross lease payments receivable and the net investment included in accounts receivable for such leases are as follows: As of June 30, 2018 December 31, 2017 Gross direct finance lease payments receivable $ 4,880 $ 2,399 Less – unearned interest (795 ) (373 ) Net investment in direct financing leases $ 4,085 $ 2,026 |
Future Minimum Capital Lease Payments | Future minimum lease payments under finance leases are as follows: As of June 30, 2018 Amount 2018 $ 487 2019 1,009 2020 998 2021 916 2022 733 Thereafter 737 Total $ 4,880 |
Future Minimum Operating Lease Payments | A maturity analysis of future minimum lease payments under non-cancelable operating leases is as follows: As of June 30, 2018 Amount 2018 $ 3,200 2019 7,486 2020 7,536 2021 7,572 2022 7,599 Thereafter 49,337 Total $ 82,730 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Transfers and Servicing [Abstract] | |
Summary of Activity Pertaining to Servicing Rights | The following summarizes the activity pertaining to servicing rights: Three Months Ended Six Months Ended 2018 2017 2018 2017 Balance at beginning of period $ 53,120 $ 53,584 $ 52,298 $ 51,994 Additions, net 4,202 2,503 9,076 5,885 Fair value changes: Due to changes in valuation inputs or assumptions (552 ) 365 (553 ) 861 Decay due to increases in principal paydowns or runoff (4,081 ) (2,777 ) (8,132 ) (5,065 ) Balance at end of period $ 52,689 $ 53,675 $ 52,689 $ 53,675 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Total Outstanding Short and Long-Term Borrowings | Total outstanding short and long term borrowings consisted of the following: June 30, December 31, Short term borrowings On October 20, 2017, the Company entered into a revolving line of credit of $20 million with an unaffiliated commercial bank. The note is unsecured and accrues interest at LIBOR plus 1.750% for a term of 12 months. Payments are interest only with all principal and accrued interest due on October 19, 2018. The terms of this loan require the Company to maintain minimum capital and debt service coverage ratios. No advances have been made to this line of credit and there is $20 million of available credit remaining at June 30, 2018. $ — $ — On September 18, 2014, the Company entered into a note payable revolving line of credit of $8.1 million with an unaffiliated commercial bank. On April 18, 2017, the Company renewed and increased the revolving line of credit to $25 million. The note is unsecured and accrues interest at Prime minus 0.50% for a term of 24 months. Payments are interest only with all principal and accrued interest due on April 30, 2019. The terms of this loan require the Company to maintain minimum capital, liquidity and Texas ratios. This line of credit was paid in full on August 25, 2017, and there is $25 million of available credit remaining at June 30, 2018. — — Total short term borrowings $ — $ — June 30, December 31, Long term borrowings On September 11, 2014, the Company financed the construction of an additional building located on the Company’s Tiburon Drive main campus with a $24 million construction line of credit with an unaffiliated commercial bank, secured by both properties at its Tiburon Drive main facility location. Payments were interest only through September 11, 2016 at a fixed rate of 3.95% for a term of 84 months. Monthly principal and interest payments of $146 thousand began in October 2016 with all principal and accrued interest due on September 11, 2021. This note was repaid in full on January 31, 2018. $ — $ 22,990 On February 23, 2015, the Company transferred two related party loans to an unaffiliated commercial bank in exchange for $4.7 million. The exchange price equated to the unpaid principal balance plus accrued but uncollected interest at the time of transfer. The terms of the transfer agreement with the unaffiliated commercial bank identified the transaction as a secured borrowing for accounting purposes. Interest accrues at prime plus 1% with monthly principal and interest payments over a term of 60 months. The interest rate at June 30, 2018 is 5.75%. The maturity date is October 5, 2019. The pledged collateral is classified in other assets with a fair value of $3.4 million at June 30, 2018. Underlying loans carry a risk grade of 3 and are current with no delinquencies. 3,368 3,574 In October 2017, the Company entered into a capital lease of $19 thousand with an unaffiliated equipment lease company, secured by fitness equipment which is included in premises and equipment on the consolidated balance sheet. Payments are principal and interest due monthly starting December 15, 2017 over a term of 60 months. At the end of the lease term there is a $1.00 bargain purchase option. 17 — Total long term borrowings $ 3,385 $ 26,564 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Record Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. June 30, 2018 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US treasury securities $ 4,952 $ — $ 4,952 $ — US government agencies 32,501 — 32,501 — Residential mortgage-backed securities 345,437 — 345,437 — Mutual fund 2,053 — 2,053 — Servicing assets 1 52,689 — — 52,689 Equity warrant assets 399 — — 399 Total assets at fair value $ 438,031 $ — $ 384,943 $ 53,088 Contingent consideration liability 2 $ 1,640 $ — $ — $ 1,640 Total liabilities at fair value $ 1,640 $ — $ — $ 1,640 December 31, 2017 Total Level 1 Level 2 Level 3 Investment securities available-for-sale US government agencies $ 22,624 $ — $ 22,624 $ — Residential mortgage-backed securities 68,696 — 68,696 — Mutual fund 2,035 — 2,035 — Servicing assets 1 52,298 — — 52,298 Total assets at fair value $ 145,653 $ — $ 93,355 $ 52,298 Contingent consideration liability 2 $ 1,900 $ — $ — $ 1,900 Total liabilities at fair value $ 1,900 $ — $ — $ 1,900 1 See Note 7 for a rollforward of recurring Level 3 fair values for servicing assets and various assumptions used in the fair value measurement. 2 Activity for the contingent consideration liability during the six months ended June 30, 2018 consisted of a $ 260 thousand negative fair value adjustment. There was no activity for the contingent consideration liability during the three months ended June 30, 2018 . During the three months ended June 30, 2017 , the Company recorded a $ 150 thousand positive fair value adjustment. During the six months ended June 30, 2017 , $ 4.3 million of contingent consideration was recorded upon the acquisition of Reltco as well as $ 350 thousand positive fair value adjustments. |
Recorded Amount of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis | The tables below present the recorded amount of assets and liabilities measured at fair value on a non-recurring basis. June 30, 2018 Total Level 1 Level 2 Level 3 Impaired loans and leases $ 56,012 $ — $ — $ 56,012 Foreclosed assets 1,725 — — 1,725 Total assets at fair value $ 57,737 $ — $ — $ 57,737 December 31, 2017 Total Level 1 Level 2 Level 3 Impaired loans and leases $ 34,493 $ — $ — $ 34,493 Foreclosed assets 1,281 — — 1,281 Total assets at fair value $ 35,774 $ — $ — $ 35,774 |
Analysis of Level 3 Valuation Techniques | For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of June 30, 2018 and December 31, 2017 the significant unobservable inputs used in the fair value measurements were as follows: June 30, 2018 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Impaired loans and leases $ 56,012 Discounted appraisals Appraisal adjustments (1) Interest rate & repayment term 10% to 48% Weighted average discount rate 6.93% Foreclosed assets $ 1,725 Discounted appraisals Appraisal adjustments (1) 9% to 37% Equity warrant assets $ 399 Black-Scholes option pricing model Volatility Risk-free interest rate Marketability discount Remaining life 20.10% Contingent consideration liability $ 1,640 Monte Carlo simulation Volatility 25.00% December 31, 2017 Level 3 Assets with Significant Unobservable Inputs Fair Value Valuation Technique Significant Unobservable Inputs Range Impaired loans and leases $ 34,493 Discounted appraisals Appraisal adjustments (1) Interest rate & repayment term 10% to 25% Weighted average discount rate 6.26% Foreclosed assets $ 1,281 Discounted appraisals Appraisal adjustments (1) 10% to 37% Contingent consideration liability $ 1,900 Monte Carlo simulation Volatility 25.00% (1) Appraisals may be adjusted by management for customized discounting criteria, estimated sales costs, and proprietary qualitative adjustments. |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of the Company’s financial instruments are as follows: June 30, 2018 Carrying Amount Quoted Price In Active Markets for Identical Assets /Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 392,941 $ 392,941 $ — $ — $ 392,941 Certificates of deposit with other banks 2,250 2,243 — — 2,243 Investment securities, available-for-sale 384,943 — 384,943 — 384,943 Loans held for sale (1) 757,494 — — 772,006 772,006 Loans and leases, net of allowance for loan and lease losses (1) 1,505,018 — — 1,500,415 1,500,415 Servicing assets 52,689 — — 52,689 52,689 Accrued interest receivable 13,807 13,807 — — 13,807 Financial liabilities Deposits 2,969,236 — 2,910,479 — 2,910,479 Accrued interest payable 534 534 — — 534 Long term borrowings 3,385 — — 3,399 3,399 December 31, 2017 Carrying Amount Quoted Price In Active Markets for Identical Assets /Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair Value Financial assets Cash and due from banks $ 295,271 $ 295,271 $ — $ — $ 295,271 Certificates of deposit with other banks 3,000 2,993 — — 2,993 Investment securities, available-for-sale 93,355 — 93,355 — 93,355 Loans held for sale (1) 680,454 — — 706,972 706,972 Loans and leases, net of allowance for loan and lease losses (1) 1,319,783 — — 1,319,615 1,319,615 Servicing assets 52,298 — — 52,298 52,298 Accrued interest receivable 10,160 10,160 — — 10,160 Financial liabilities Deposits 2,260,263 — 2,232,370 — 2,232,370 Accrued interest payable 367 367 — — 367 Long term borrowings 26,564 — — 27,390 27,390 (1) In accordance with the adoption of ASU 2016-01, as of June 30, 2018 , the fair value of loans and leases were measured using an exit price notion. As of December 31, 2017, the fair value of loans and leases were measured using an entry price notion. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitments | A summary of the Company’s commitments is as follows: June 30, December 31, Commitments to extend credit $ 1,349,217 $ 1,701,137 Standby letters of credit 2,636 2,298 Solar purchase commitments 49,844 106,921 Airplane purchase agreement commitments 19,450 25,450 Total unfunded off-balance-sheet credit risk $ 1,421,147 $ 1,835,806 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity | Stock option activity under the Plan during the six month periods ended June 30, 2018 and 2017 is summarized below. Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2017 3,058,459 $ 11.30 Exercised 144,671 8.66 Forfeited 134,623 14.11 Granted — — Outstanding at June 30, 2018 2,779,165 $ 11.30 6.54 years $ 53,786,948 Exercisable at June 30, 2018 727,697 $ 9.83 6.27 years $ 15,148,795 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2016 3,478,208 $ 11.51 Exercised 58,921 7.73 Forfeited 195,468 14.38 Granted — — Outstanding at June 30, 2017 3,223,819 $ 11.41 7.56 years $ 41,246,695 Exercisable at June 30, 2017 596,021 $ 9.06 7.18 years $ 9,021,234 |
Summary of Non-vested Stock Option Activity | The following is a summary of non-vested stock option activity for the Company for the six months ended June 30, 2018 and 2017 . Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 2,364,999 $ 4.65 Granted — — Vested (178,908 ) 2.95 Forfeited (134,623 ) 6.26 Non-vested at June 30, 2018 2,051,468 4.79 Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2016 3,016,100 $ 4.78 Granted — — Vested (192,834 ) 2.12 Forfeited (195,468 ) 6.17 Non-vested at June 30, 2017 2,627,798 4.87 |
Restricted Stock Unit Activity | RSU stock activity under the Plan during the first six months of 2018 is summarized below. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 181,814 $ 20.03 Granted 152,422 28.01 Vested (56,799 ) 26.54 Forfeited (11,320 ) 23.36 Non-vested at June 30, 2018 266,117 23.07 Market RSU stock activity under the Plan during the first six months of 2018 is summarized below. Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2017 2,532,808 $ 8.78 Granted 75,000 17.51 Vested — — Forfeited (216,019 ) 9.06 Non-vested at June 30, 2018 2,391,789 9.03 |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) $ in Millions | Feb. 01, 2017business | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Dec. 31, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Number of businesses acquired | business | 2 | |||
Number of significant operation segments | Segment | 1 | |||
Term of warrant | 10 years | |||
Apiture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 68 | $ 68 | ||
First Data | Apiture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash earnings preference, maximum amount | $ 18 | |||
Scenario, Forecast | First Data | Apiture | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash earnings preference, maximum amount | $ 18.9 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Reclassification of accumulated other comprehensive income due to tax rate change | $ 244 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Basic earnings per share: | ||||
Net income available to common shareholders | $ 14,253 | $ 9,795 | $ 26,706 | $ 15,907 |
Weighted-average basic shares outstanding (in shares) | 40,027,336 | 34,618,721 | 39,977,336 | 34,543,229 |
Basic earnings per share (in dollars per share) | $ 0.36 | $ 0.28 | $ 0.67 | $ 0.46 |
Diluted earnings per share: | ||||
Net income available to common shareholders, for diluted earnings per share | $ 14,253 | $ 9,795 | $ 26,706 | $ 15,907 |
Total weighted-average basic shares outstanding (in shares) | 40,027,336 | 34,618,721 | 39,977,336 | 34,543,229 |
Add effect of dilutive stock options and restricted stock grants (in shares) | 1,592,311 | 1,323,320 | 1,538,997 | 1,228,953 |
Total weighted-average diluted shares outstanding (in shares) | 41,619,647 | 35,942,041 | 41,516,333 | 35,772,182 |
Diluted earnings per share (in dollars per share) | $ 0.34 | $ 0.27 | $ 0.64 | $ 0.44 |
Anti-dilutive shares (in shares) | 0 | 245,583 | 9,102 | 983,174 |
Investment Securities - Carryin
Investment Securities - Carrying Amount and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 391,542 | $ 95,035 | |
Unrealized Gains | 14 | 4 | |
Unrealized Losses | 6,613 | 1,684 | |
Investment securities available-for-sale | 384,943 | 93,355 | [1] |
US treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 4,961 | ||
Unrealized Gains | 0 | ||
Unrealized Losses | 9 | ||
Investment securities available-for-sale | 4,952 | ||
US government agencies | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 32,896 | 22,778 | |
Unrealized Gains | 0 | 3 | |
Unrealized Losses | 395 | 157 | |
Investment securities available-for-sale | 32,501 | 22,624 | |
Residential mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 351,556 | 70,167 | |
Unrealized Gains | 14 | 1 | |
Unrealized Losses | 6,133 | 1,472 | |
Investment securities available-for-sale | 345,437 | 68,696 | |
Mutual fund | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 2,129 | 2,090 | |
Unrealized Gains | 0 | 0 | |
Unrealized Losses | 76 | 55 | |
Investment securities available-for-sale | $ 2,053 | $ 2,035 | |
[1] | Derived from audited consolidated financial statements. |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value of Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | $ 318,320 | $ 38,323 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 4,435 | 539 |
Securities in unrealized loss position, 12 months or more, fair value | 50,365 | 49,148 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 2,178 | 1,145 |
Securities in unrealized loss position, fair value | 368,685 | 87,471 |
Securities in unrealized loss position, unrealized losses | 6,613 | 1,684 |
US treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 4,952 | |
Securities in unrealized loss position, less than 12 months, unrealized losses | 9 | |
Securities in unrealized loss position, 12 months or more, fair value | 0 | |
Securities in unrealized loss position, 12 months or more, unrealized losses | 0 | |
Securities in unrealized loss position, fair value | 4,952 | |
Securities in unrealized loss position, unrealized losses | 9 | |
US government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 21,045 | 14,842 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 343 | 100 |
Securities in unrealized loss position, 12 months or more, fair value | 6,462 | 6,465 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 52 | 57 |
Securities in unrealized loss position, fair value | 27,507 | 21,307 |
Securities in unrealized loss position, unrealized losses | 395 | 157 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 292,323 | 23,481 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 4,083 | 439 |
Securities in unrealized loss position, 12 months or more, fair value | 41,850 | 40,648 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 2,050 | 1,033 |
Securities in unrealized loss position, fair value | 334,173 | 64,129 |
Securities in unrealized loss position, unrealized losses | 6,133 | 1,472 |
Mutual fund | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in unrealized loss position, less than 12 months, fair value | 0 | 0 |
Securities in unrealized loss position, less than 12 months, unrealized losses | 0 | 0 |
Securities in unrealized loss position, 12 months or more, fair value | 2,053 | 2,035 |
Securities in unrealized loss position, 12 months or more, unrealized losses | 76 | 55 |
Securities in unrealized loss position, fair value | 2,053 | 2,035 |
Securities in unrealized loss position, unrealized losses | $ 76 | $ 55 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | |
Debt Securities, Available-for-sale [Line Items] | ||
Other than temporary impairment losses | $ | $ 0 | |
Collateral Pledged | Ohio State Treasurer | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, restricted | $ | 100,000 | $ 100,000 |
Collateral Pledged | Trust Department | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities, available-for-sale, restricted | $ | $ 2,500,000 | $ 2,500,000 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss portions for longer than 12 months | 25 | 23 |
Number of securities in unrealized loss positions for less than 12 months | 40 | 8 |
US government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss portions for longer than 12 months | 3 | 3 |
Number of securities in unrealized loss positions for less than 12 months | 7 | 5 |
US treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of securities in unrealized loss positions for less than 12 months | 1 |
Investment Securities - Summary
Investment Securities - Summary of Investment Securities by Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |||
Amortized Cost | $ 391,542 | $ 95,035 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
Total, fair value | 384,943 | 93,355 | [1] |
US treasury securities | |||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |||
One to five years, amortized cost | 4,961 | ||
Amortized Cost | 4,961 | ||
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
One to five years, fair value | 4,952 | ||
Total, fair value | 4,952 | ||
US government agencies | |||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |||
Within one year, amortized cost | 6,323 | ||
One to five years, amortized cost | 26,573 | ||
Amortized Cost | 32,896 | 22,778 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
Within one year, fair value | 6,300 | ||
One to five years, fair value | 26,201 | ||
Total, fair value | 32,501 | 22,624 | |
Residential mortgage-backed securities | |||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |||
One to five years, amortized cost | 4,298 | ||
Five to ten years, amortized cost | 51,439 | ||
After 10 years, amortized cost | 295,819 | ||
Amortized Cost | 351,556 | 70,167 | |
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
One to five years, fair value | 4,121 | ||
Five to ten years, fair value | 50,648 | ||
After 10 years, fair value | 290,668 | ||
Total, fair value | 345,437 | $ 68,696 | |
Excluding Mutual Fund | |||
Debt Securities, Available-for-sale, Maturity, Amortized Cost, Rolling Maturity [Abstract] | |||
Amortized Cost | 389,413 | ||
Debt Securities, Available-for-sale, Maturity, Fair Value, Rolling Maturity [Abstract] | |||
Total, fair value | $ 382,890 | ||
[1] | Derived from audited consolidated financial statements. |
Loans and Leases Held for Inv38
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Composition of Loans and Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | $ 1,540,564 | $ 1,346,850 | |
Net Deferred Costs | 8,470 | 8,545 | |
Discount on SBA 7(a) and USDA Unguaranteed | (14,666) | (11,422) | |
Loans and Leases, Net of Unearned | 1,534,368 | 1,343,973 | [1] |
Loans Insured or Guaranteed by US Government Authorities | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 141,500 | 99,700 | |
Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 532,232 | 485,050 | |
Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 199,747 | 163,253 | |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 614,972 | 519,650 | |
Commercial Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 193,613 | 178,897 | |
Agriculture | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 5,813 | 3,274 | |
Agriculture | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 34,971 | 34,188 | |
Agriculture | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 49,009 | 46,717 | |
Agriculture | Commercial Land | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 193,613 | 178,897 | |
Death Care Management | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 15,720 | 13,495 | |
Death Care Management | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 7,542 | 6,119 | |
Death Care Management | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 66,671 | 67,381 | |
Healthcare | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 44,524 | 43,301 | |
Healthcare | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 61,114 | 49,770 | |
Healthcare | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 152,025 | 126,631 | |
Independent Pharmacies | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 102,995 | 99,920 | |
Independent Pharmacies | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 2,186 | 1,496 | |
Independent Pharmacies | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 19,368 | 19,028 | |
Registered Investment Advisors | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 96,473 | 93,770 | |
Registered Investment Advisors | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 1,286 | 376 | |
Registered Investment Advisors | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 11,040 | 11,789 | |
Veterinary Industry | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 49,156 | 46,387 | |
Veterinary Industry | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 18,198 | 13,184 | |
Veterinary Industry | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 122,593 | 113,932 | |
Other Industries | Commercial & Industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 217,551 | 184,903 | |
Other Industries | Construction & Development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | 74,450 | 58,120 | |
Other Industries | Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans and Leases | $ 194,266 | $ 134,172 | |
[1] | Derived from audited consolidated financial statements. |
Loans and Leases Held for Inv39
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Credit Risk Profile (Details) | 6 Months Ended |
Jun. 30, 2018Score | |
Minimum | Loans (1 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Debt service coverage | 1.75 |
Discounted collateral coverage | 125.00% |
Credit score | 740 |
Minimum | Loans (2 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Debt service coverage | 1.25 |
Discounted collateral coverage | 100.00% |
Credit score | 700 |
Minimum | Loans (3 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Debt service coverage | 1 |
Maximum | Loans (1 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan-to-value ratio | 65.00% |
Maximum | Loans (2 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Loan-to-value ratio | 75.00% |
Maximum | Loans (4 Rated) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Cash flow coverage | 1 |
Loans and Leases Held for Inv40
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Summary of Risk Grades of Each Category of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | $ 1,540,564 | $ 1,346,850 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 141,500 | 99,700 |
Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,418,179 | 1,270,083 |
Risk Grades 1 - 4 | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 84,800 | 65,000 |
Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 58,424 | 37,027 |
Risk Grade 5 | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 12,000 | 6,700 |
Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 63,961 | 39,740 |
Risk Grades 6 - 8 | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 44,700 | 28,000 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 532,232 | 485,050 |
Commercial & Industrial | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 487,079 | 456,869 |
Commercial & Industrial | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 25,659 | 12,327 |
Commercial & Industrial | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 19,494 | 15,854 |
Commercial & Industrial | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,813 | 3,274 |
Commercial & Industrial | Agriculture | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,596 | 3,052 |
Commercial & Industrial | Agriculture | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 217 | 222 |
Commercial & Industrial | Agriculture | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial & Industrial | Death Care Management | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 15,720 | 13,495 |
Commercial & Industrial | Death Care Management | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 15,517 | 13,371 |
Commercial & Industrial | Death Care Management | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 197 | 117 |
Commercial & Industrial | Death Care Management | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 6 | 7 |
Commercial & Industrial | Healthcare | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 44,524 | 43,301 |
Commercial & Industrial | Healthcare | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 36,461 | 36,530 |
Commercial & Industrial | Healthcare | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 3,256 | 2,246 |
Commercial & Industrial | Healthcare | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 4,807 | 4,525 |
Commercial & Industrial | Independent Pharmacies | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 102,995 | 99,920 |
Commercial & Industrial | Independent Pharmacies | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 88,684 | 86,152 |
Commercial & Industrial | Independent Pharmacies | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 6,554 | 5,541 |
Commercial & Industrial | Independent Pharmacies | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 7,757 | 8,227 |
Commercial & Industrial | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 96,473 | 93,770 |
Commercial & Industrial | Registered Investment Advisors | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 92,254 | 90,911 |
Commercial & Industrial | Registered Investment Advisors | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,420 | 2,134 |
Commercial & Industrial | Registered Investment Advisors | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,799 | 725 |
Commercial & Industrial | Veterinary Industry | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 49,156 | 46,387 |
Commercial & Industrial | Veterinary Industry | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 44,754 | 42,313 |
Commercial & Industrial | Veterinary Industry | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,649 | 1,704 |
Commercial & Industrial | Veterinary Industry | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,753 | 2,370 |
Commercial & Industrial | Other Industries | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 217,551 | 184,903 |
Commercial & Industrial | Other Industries | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 203,813 | 184,540 |
Commercial & Industrial | Other Industries | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 12,366 | 363 |
Commercial & Industrial | Other Industries | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,372 | 0 |
Construction & Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 199,747 | 163,253 |
Construction & Development | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 189,557 | 158,846 |
Construction & Development | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,612 | 3,149 |
Construction & Development | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 4,578 | 1,258 |
Construction & Development | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 34,971 | 34,188 |
Construction & Development | Agriculture | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 32,431 | 31,738 |
Construction & Development | Agriculture | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 2,450 |
Construction & Development | Agriculture | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,540 | 0 |
Construction & Development | Death Care Management | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 7,542 | 6,119 |
Construction & Development | Death Care Management | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 7,542 | 6,119 |
Construction & Development | Death Care Management | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Death Care Management | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Healthcare | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 61,114 | 49,770 |
Construction & Development | Healthcare | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 56,542 | 47,813 |
Construction & Development | Healthcare | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,534 | 699 |
Construction & Development | Healthcare | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,038 | 1,258 |
Construction & Development | Independent Pharmacies | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,186 | 1,496 |
Construction & Development | Independent Pharmacies | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,186 | 1,496 |
Construction & Development | Independent Pharmacies | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Independent Pharmacies | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,286 | 376 |
Construction & Development | Registered Investment Advisors | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,286 | 376 |
Construction & Development | Registered Investment Advisors | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Registered Investment Advisors | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Veterinary Industry | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 18,198 | 13,184 |
Construction & Development | Veterinary Industry | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 17,012 | 13,184 |
Construction & Development | Veterinary Industry | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,186 | 0 |
Construction & Development | Veterinary Industry | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Construction & Development | Other Industries | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 74,450 | 58,120 |
Construction & Development | Other Industries | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 72,558 | 58,120 |
Construction & Development | Other Industries | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,892 | 0 |
Construction & Development | Other Industries | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 614,972 | 519,650 |
Commercial Real Estate | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 558,426 | 477,557 |
Commercial Real Estate | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 21,782 | 19,465 |
Commercial Real Estate | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 34,764 | 22,628 |
Commercial Real Estate | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 49,009 | 46,717 |
Commercial Real Estate | Agriculture | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 49,009 | 46,717 |
Commercial Real Estate | Agriculture | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial Real Estate | Agriculture | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial Real Estate | Death Care Management | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 66,671 | 67,381 |
Commercial Real Estate | Death Care Management | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 59,696 | 60,671 |
Commercial Real Estate | Death Care Management | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 3,862 | 3,881 |
Commercial Real Estate | Death Care Management | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 3,113 | 2,829 |
Commercial Real Estate | Healthcare | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 152,025 | 126,631 |
Commercial Real Estate | Healthcare | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 129,714 | 112,321 |
Commercial Real Estate | Healthcare | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 9,378 | 9,992 |
Commercial Real Estate | Healthcare | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 12,933 | 4,318 |
Commercial Real Estate | Independent Pharmacies | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 19,368 | 19,028 |
Commercial Real Estate | Independent Pharmacies | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 13,603 | 15,641 |
Commercial Real Estate | Independent Pharmacies | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,930 | 1,825 |
Commercial Real Estate | Independent Pharmacies | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 2,835 | 1,562 |
Commercial Real Estate | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 11,040 | 11,789 |
Commercial Real Estate | Registered Investment Advisors | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 10,908 | 11,649 |
Commercial Real Estate | Registered Investment Advisors | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 132 | 140 |
Commercial Real Estate | Registered Investment Advisors | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial Real Estate | Veterinary Industry | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 122,593 | 113,932 |
Commercial Real Estate | Veterinary Industry | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 103,055 | 97,065 |
Commercial Real Estate | Veterinary Industry | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 3,655 | 2,948 |
Commercial Real Estate | Veterinary Industry | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 15,883 | 13,919 |
Commercial Real Estate | Other Industries | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 194,266 | 134,172 |
Commercial Real Estate | Other Industries | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 192,441 | 133,493 |
Commercial Real Estate | Other Industries | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 1,825 | 679 |
Commercial Real Estate | Other Industries | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 0 | 0 |
Commercial Land | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 193,613 | 178,897 |
Commercial Land | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 183,117 | 176,811 |
Commercial Land | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,371 | 2,086 |
Commercial Land | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,125 | 0 |
Commercial Land | Agriculture | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 193,613 | 178,897 |
Commercial Land | Agriculture | Risk Grades 1 - 4 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 183,117 | 176,811 |
Commercial Land | Agriculture | Risk Grade 5 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | 5,371 | 2,086 |
Commercial Land | Agriculture | Risk Grades 6 - 8 | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans and leases | $ 5,125 | $ 0 |
Loans and Leases Held for Inv41
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Age Analysis of Past Due Loans and Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | $ 53,327 | $ 30,736 |
Current | 1,487,237 | 1,316,114 |
Total loans and leases receivable | 1,540,564 | 1,346,850 |
90 days or more past due & still accruing | 0 | 0 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 110,600 | 77,300 |
Total loans and leases receivable | 141,500 | 99,700 |
Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 13,423 | 3,080 |
30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 7,222 | 7,256 |
30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 6,022 | 3,955 |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 26,660 | 16,445 |
Greater Than 90 Days Past Due | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 21,700 | 15,000 |
Financing Receivables 30 To 89 Days Past Due | Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 9,200 | 7,400 |
Commercial & Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 16,617 | 14,260 |
Current | 515,615 | 470,790 |
Total loans and leases receivable | 532,232 | 485,050 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,104 | 1,236 |
Commercial & Industrial | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,367 | 3,976 |
Commercial & Industrial | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 3,479 | 1,871 |
Commercial & Industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 10,667 | 7,177 |
Commercial & Industrial | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 5,813 | 3,274 |
Total loans and leases receivable | 5,813 | 3,274 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Agriculture | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Agriculture | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Agriculture | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Agriculture | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Death Care Management | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 15,720 | 13,495 |
Total loans and leases receivable | 15,720 | 13,495 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Death Care Management | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Death Care Management | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Death Care Management | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Death Care Management | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 3,093 | 3,937 |
Current | 41,431 | 39,364 |
Total loans and leases receivable | 44,524 | 43,301 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Healthcare | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 788 |
Commercial & Industrial | Healthcare | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 49 | 131 |
Commercial & Industrial | Healthcare | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 757 | 14 |
Commercial & Industrial | Healthcare | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,287 | 3,004 |
Commercial & Industrial | Independent Pharmacies | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 7,646 | 7,891 |
Current | 95,349 | 92,029 |
Total loans and leases receivable | 102,995 | 99,920 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Independent Pharmacies | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 338 | 236 |
Commercial & Industrial | Independent Pharmacies | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 2,930 |
Commercial & Industrial | Independent Pharmacies | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 1,349 |
Commercial & Industrial | Independent Pharmacies | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 7,308 | 3,376 |
Commercial & Industrial | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,679 | 321 |
Current | 93,794 | 93,449 |
Total loans and leases receivable | 96,473 | 93,770 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Registered Investment Advisors | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Registered Investment Advisors | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 577 | 321 |
Commercial & Industrial | Registered Investment Advisors | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,102 | 0 |
Commercial & Industrial | Registered Investment Advisors | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Veterinary Industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,988 | 2,111 |
Current | 47,168 | 44,276 |
Total loans and leases receivable | 49,156 | 46,387 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Veterinary Industry | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 170 | 212 |
Commercial & Industrial | Veterinary Industry | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 126 | 594 |
Commercial & Industrial | Veterinary Industry | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 620 | 508 |
Commercial & Industrial | Veterinary Industry | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,072 | 797 |
Commercial & Industrial | Other Industries | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,211 | 0 |
Current | 216,340 | 184,903 |
Total loans and leases receivable | 217,551 | 184,903 |
90 days or more past due & still accruing | 0 | 0 |
Commercial & Industrial | Other Industries | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 596 | 0 |
Commercial & Industrial | Other Industries | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 615 | 0 |
Commercial & Industrial | Other Industries | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial & Industrial | Other Industries | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 3,762 | 0 |
Current | 195,985 | 163,253 |
Total loans and leases receivable | 199,747 | 163,253 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,223 | 0 |
Construction & Development | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,539 | 0 |
Construction & Development | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,539 | 0 |
Current | 32,432 | 34,188 |
Total loans and leases receivable | 34,971 | 34,188 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Agriculture | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Agriculture | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Agriculture | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Agriculture | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,539 | 0 |
Construction & Development | Death Care Management | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 7,542 | 6,119 |
Total loans and leases receivable | 7,542 | 6,119 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Death Care Management | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Death Care Management | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Death Care Management | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Death Care Management | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 61,114 | 49,770 |
Total loans and leases receivable | 61,114 | 49,770 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Healthcare | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Healthcare | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Healthcare | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Healthcare | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Independent Pharmacies | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 2,186 | 1,496 |
Total loans and leases receivable | 2,186 | 1,496 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Independent Pharmacies | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Independent Pharmacies | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Independent Pharmacies | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Independent Pharmacies | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 1,286 | 376 |
Total loans and leases receivable | 1,286 | 376 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Registered Investment Advisors | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Registered Investment Advisors | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Registered Investment Advisors | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Registered Investment Advisors | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Veterinary Industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,186 | 0 |
Current | 17,012 | 13,184 |
Total loans and leases receivable | 18,198 | 13,184 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Veterinary Industry | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Veterinary Industry | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,186 | 0 |
Construction & Development | Veterinary Industry | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Veterinary Industry | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Other Industries | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 37 | 0 |
Current | 74,413 | 58,120 |
Total loans and leases receivable | 74,450 | 58,120 |
90 days or more past due & still accruing | 0 | 0 |
Construction & Development | Other Industries | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Other Industries | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 37 | 0 |
Construction & Development | Other Industries | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Construction & Development | Other Industries | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 27,823 | 16,476 |
Current | 587,149 | 503,174 |
Total loans and leases receivable | 614,972 | 519,650 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 7,194 | 1,844 |
Commercial Real Estate | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 4,632 | 3,280 |
Commercial Real Estate | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,543 | 2,084 |
Commercial Real Estate | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 13,454 | 9,268 |
Commercial Real Estate | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 49,009 | 46,717 |
Total loans and leases receivable | 49,009 | 46,717 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Agriculture | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Agriculture | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Agriculture | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Agriculture | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Death Care Management | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,963 | 1,559 |
Current | 63,708 | 65,822 |
Total loans and leases receivable | 66,671 | 67,381 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Death Care Management | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 158 | 0 |
Commercial Real Estate | Death Care Management | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,447 | 0 |
Commercial Real Estate | Death Care Management | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 168 |
Commercial Real Estate | Death Care Management | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,358 | 1,391 |
Commercial Real Estate | Healthcare | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 8,967 | 3,560 |
Current | 143,058 | 123,071 |
Total loans and leases receivable | 152,025 | 126,631 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Healthcare | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,334 | 40 |
Commercial Real Estate | Healthcare | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 54 |
Commercial Real Estate | Healthcare | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 37 | 1,916 |
Commercial Real Estate | Healthcare | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 6,596 | 1,550 |
Commercial Real Estate | Independent Pharmacies | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,835 | 1,562 |
Current | 16,533 | 17,466 |
Total loans and leases receivable | 19,368 | 19,028 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Independent Pharmacies | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,835 | 0 |
Commercial Real Estate | Independent Pharmacies | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Independent Pharmacies | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Independent Pharmacies | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 1,562 |
Commercial Real Estate | Registered Investment Advisors | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 11,040 | 11,789 |
Total loans and leases receivable | 11,040 | 11,789 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Registered Investment Advisors | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Registered Investment Advisors | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Registered Investment Advisors | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Registered Investment Advisors | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Veterinary Industry | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 13,058 | 9,795 |
Current | 109,535 | 104,137 |
Total loans and leases receivable | 122,593 | 113,932 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Veterinary Industry | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 1,867 | 1,804 |
Commercial Real Estate | Veterinary Industry | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 3,185 | 3,226 |
Commercial Real Estate | Veterinary Industry | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 2,506 | 0 |
Commercial Real Estate | Veterinary Industry | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 5,500 | 4,765 |
Commercial Real Estate | Other Industries | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Current | 194,266 | 134,172 |
Total loans and leases receivable | 194,266 | 134,172 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Real Estate | Other Industries | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Other Industries | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Other Industries | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Real Estate | Other Industries | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 5,125 | 0 |
Current | 188,488 | 178,897 |
Total loans and leases receivable | 193,613 | 178,897 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Land | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 5,125 | 0 |
Commercial Land | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 5,125 | 0 |
Current | 188,488 | 178,897 |
Total loans and leases receivable | 193,613 | 178,897 |
90 days or more past due & still accruing | 0 | 0 |
Commercial Land | Agriculture | Less Than 30 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 5,125 | 0 |
Commercial Land | Agriculture | 30-89 Days Past Due & Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | Agriculture | 30-89 Days Past Due & Not Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | 0 | 0 |
Commercial Land | Agriculture | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total not accruing & past due | $ 0 | $ 0 |
Loans and Leases Held for Inv42
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Nonaccrual Loans and Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Theoretical increase in interest if interest on nonaccrual loans had been accrued in accordance with original terms | $ 588 | $ 306 | $ 1,000 | $ 582 | |
Nonaccrual loans and leases balance | 46,105 | 46,105 | $ 23,480 | ||
Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 34,639 | 34,639 | 19,870 | ||
Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 11,466 | 11,466 | 3,610 | ||
Commercial & Industrial | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 15,250 | 15,250 | 10,284 | ||
Commercial & Industrial | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 13,058 | 13,058 | 8,619 | ||
Commercial & Industrial | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,192 | 2,192 | 1,665 | ||
Commercial & Industrial | Healthcare | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 3,044 | 3,044 | 3,806 | ||
Commercial & Industrial | Healthcare | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,735 | 2,735 | 3,235 | ||
Commercial & Industrial | Healthcare | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 309 | 309 | 571 | ||
Commercial & Industrial | Independent Pharmacies | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 7,646 | 7,646 | 4,961 | ||
Commercial & Industrial | Independent Pharmacies | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 6,919 | 6,919 | 3,906 | ||
Commercial & Industrial | Independent Pharmacies | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 727 | 727 | 1,055 | ||
Commercial & Industrial | Registered Investment Advisors | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,102 | 2,102 | |||
Commercial & Industrial | Registered Investment Advisors | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,577 | 1,577 | |||
Commercial & Industrial | Registered Investment Advisors | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 525 | 525 | |||
Commercial & Industrial | Veterinary Industry | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,862 | 1,862 | 1,517 | ||
Commercial & Industrial | Veterinary Industry | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,827 | 1,827 | 1,478 | ||
Commercial & Industrial | Veterinary Industry | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 35 | 35 | 39 | ||
Commercial & Industrial | Other Industries | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 596 | 596 | |||
Commercial & Industrial | Other Industries | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 0 | 0 | |||
Commercial & Industrial | Other Industries | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 596 | 596 | |||
Construction & Development | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,539 | 2,539 | |||
Construction & Development | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,904 | 1,904 | |||
Construction & Development | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 635 | 635 | |||
Construction & Development | Agriculture | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,539 | 2,539 | |||
Construction & Development | Agriculture | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,904 | 1,904 | |||
Construction & Development | Agriculture | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 635 | 635 | |||
Commercial Real Estate | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 23,191 | 23,191 | 13,196 | ||
Commercial Real Estate | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 17,947 | 17,947 | 11,251 | ||
Commercial Real Estate | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 5,244 | 5,244 | 1,945 | ||
Commercial Real Estate | Death Care Management | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,516 | 1,516 | 1,559 | ||
Commercial Real Estate | Death Care Management | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,210 | 1,210 | 1,237 | ||
Commercial Real Estate | Death Care Management | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 306 | 306 | 322 | ||
Commercial Real Estate | Healthcare | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 8,967 | 8,967 | 3,506 | ||
Commercial Real Estate | Healthcare | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 6,080 | 6,080 | 2,719 | ||
Commercial Real Estate | Healthcare | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,887 | 2,887 | 787 | ||
Commercial Real Estate | Independent Pharmacies | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,835 | 2,835 | 1,562 | ||
Commercial Real Estate | Independent Pharmacies | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 2,126 | 2,126 | 1,562 | ||
Commercial Real Estate | Independent Pharmacies | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 709 | 709 | 0 | ||
Commercial Real Estate | Veterinary Industry | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 9,873 | 9,873 | 6,569 | ||
Commercial Real Estate | Veterinary Industry | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 8,531 | 8,531 | 5,733 | ||
Commercial Real Estate | Veterinary Industry | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,342 | 1,342 | $ 836 | ||
Commercial Land | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 5,125 | 5,125 | |||
Commercial Land | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,730 | 1,730 | |||
Commercial Land | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 3,395 | 3,395 | |||
Commercial Land | Agriculture | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 5,125 | 5,125 | |||
Commercial Land | Agriculture | Guaranteed Balance | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | 1,730 | 1,730 | |||
Commercial Land | Agriculture | Unguaranteed Exposure | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Nonaccrual loans and leases balance | $ 3,395 | $ 3,395 |
Loans and Leases Held for Inv43
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Allowance for Loan and Lease Loss Methodology (Details) | Jun. 30, 2018USD ($) |
Receivables [Abstract] | |
Credit exposure threshold | $ 100,000 |
Loans and Leases Held for Inv44
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Activity in the Allowance for Loan and Lease Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Allowance for Loan Losses: | |||||
Allowance for Loan Losses, Beginning Balance | $ 28,050 | $ 18,195 | $ 24,190 | [1] | $ 18,209 |
Charge offs | (968) | (197) | (1,640) | (1,733) | |
Recoveries | 181 | 6 | 321 | 29 | |
Provision | 2,087 | 1,556 | 6,479 | 3,055 | |
Allowance for Loan Losses, Ending Balance | 29,350 | 19,560 | 29,350 | 19,560 | |
Construction & Development | |||||
Allowance for Loan Losses: | |||||
Allowance for Loan Losses, Beginning Balance | 2,428 | 1,884 | 2,030 | 1,693 | |
Charge offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | (201) | (281) | 197 | (90) | |
Allowance for Loan Losses, Ending Balance | 2,227 | 1,603 | 2,227 | 1,603 | |
Commercial Real Estate | |||||
Allowance for Loan Losses: | |||||
Allowance for Loan Losses, Beginning Balance | 11,244 | 6,226 | 9,180 | 5,897 | |
Charge offs | (419) | (19) | (419) | (287) | |
Recoveries | 29 | 4 | 33 | 13 | |
Provision | 554 | 1,283 | 2,614 | 1,871 | |
Allowance for Loan Losses, Ending Balance | 11,408 | 7,494 | 11,408 | 7,494 | |
Commercial & Industrial | |||||
Allowance for Loan Losses: | |||||
Allowance for Loan Losses, Beginning Balance | 12,201 | 7,846 | 10,751 | 8,413 | |
Charge offs | (549) | (178) | (1,221) | (1,411) | |
Recoveries | 152 | 2 | 288 | 16 | |
Provision | 1,573 | 681 | 3,559 | 1,333 | |
Allowance for Loan Losses, Ending Balance | 13,377 | 8,351 | 13,377 | 8,351 | |
Commercial Land | |||||
Allowance for Loan Losses: | |||||
Allowance for Loan Losses, Beginning Balance | 2,177 | 2,239 | 2,229 | 2,206 | |
Charge offs | 0 | 0 | 0 | (35) | |
Recoveries | 0 | 0 | 0 | 0 | |
Provision | 161 | (127) | 109 | (59) | |
Allowance for Loan Losses, Ending Balance | $ 2,338 | $ 2,112 | $ 2,338 | $ 2,112 | |
[1] | Derived from audited consolidated financial statements. |
Loans and Leases Held for Inv45
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Recorded Allowance for Loan Loans Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Allowance for Loan and Lease Losses: | |||||||
Loans and leases individually evaluated for impairment | $ 6,918 | $ 2,785 | |||||
Loans and leases collectively evaluated for impairment | 22,432 | 21,405 | |||||
Total allowance for loan and lease losses | 29,350 | $ 28,050 | 24,190 | [1] | $ 19,560 | $ 18,195 | $ 18,209 |
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 49,475 | 27,014 | |||||
Loans and leases collectively evaluated for impairment | 1,491,089 | 1,319,836 | |||||
Total loans and leases receivable | 1,540,564 | 1,346,850 | |||||
Loans collectively evaluated for Impairment, unguaranteed credit exposure Less Than $100,000 | 15,700 | 14,800 | |||||
Loans collectively evaluated for impairment, unguaranteed credit exposure less than $100,000, allowance | 510 | 279 | |||||
Loans Insured or Guaranteed by US Government Authorities | |||||||
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 45,200 | 28,100 | |||||
Total loans and leases receivable | 141,500 | 99,700 | |||||
Loans collectively evaluated for Impairment, unguaranteed credit exposure Less Than $100,000 | 14,400 | 13,200 | |||||
Unguaranteed Exposure | |||||||
Loans and Leases Receivable : | |||||||
Loans collectively evaluated for Impairment, unguaranteed credit exposure Less Than $100,000 | 1,300 | 1,600 | |||||
Construction & Development | |||||||
Allowance for Loan and Lease Losses: | |||||||
Loans and leases individually evaluated for impairment | 365 | 157 | |||||
Loans and leases collectively evaluated for impairment | 1,862 | 1,873 | |||||
Total allowance for loan and lease losses | 2,227 | 2,428 | 2,030 | 1,603 | 1,884 | 1,693 | |
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 4,557 | 1,237 | |||||
Loans and leases collectively evaluated for impairment | 195,190 | 162,016 | |||||
Total loans and leases receivable | 199,747 | 163,253 | |||||
Commercial Real Estate | |||||||
Allowance for Loan and Lease Losses: | |||||||
Loans and leases individually evaluated for impairment | 2,601 | 1,502 | |||||
Loans and leases collectively evaluated for impairment | 8,807 | 7,678 | |||||
Total allowance for loan and lease losses | 11,408 | 11,244 | 9,180 | 7,494 | 6,226 | 5,897 | |
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 28,966 | 17,105 | |||||
Loans and leases collectively evaluated for impairment | 586,006 | 502,545 | |||||
Total loans and leases receivable | 614,972 | 519,650 | |||||
Commercial & Industrial | |||||||
Allowance for Loan and Lease Losses: | |||||||
Loans and leases individually evaluated for impairment | 2,597 | 1,126 | |||||
Loans and leases collectively evaluated for impairment | 10,780 | 9,625 | |||||
Total allowance for loan and lease losses | 13,377 | 12,201 | 10,751 | 8,351 | 7,846 | 8,413 | |
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 10,836 | 8,672 | |||||
Loans and leases collectively evaluated for impairment | 521,396 | 476,378 | |||||
Total loans and leases receivable | 532,232 | 485,050 | |||||
Commercial Land | |||||||
Allowance for Loan and Lease Losses: | |||||||
Loans and leases individually evaluated for impairment | 1,355 | 0 | |||||
Loans and leases collectively evaluated for impairment | 983 | 2,229 | |||||
Total allowance for loan and lease losses | 2,338 | $ 2,177 | 2,229 | $ 2,112 | $ 2,239 | $ 2,206 | |
Loans and Leases Receivable : | |||||||
Loans and leases individually evaluated for impairment | 5,116 | 0 | |||||
Loans and leases collectively evaluated for impairment | 188,497 | 178,897 | |||||
Total loans and leases receivable | $ 193,613 | $ 178,897 | |||||
[1] | Derived from audited consolidated financial statements. |
Loans and Leases Held for Inv46
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Loans and Leases Classified as Impaired (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | $ 65,138 | $ 41,835 |
Commercial & Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 19,974 | 16,624 |
Commercial & Industrial | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 6 | 7 |
Commercial & Industrial | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 4,836 | 4,551 |
Commercial & Industrial | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 8,054 | 8,571 |
Commercial & Industrial | Registered Investment Advisors | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,807 | 733 |
Commercial & Industrial | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,900 | 2,762 |
Commercial & Industrial | Other Industries | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,371 | |
Construction & Development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 4,557 | 1,237 |
Construction & Development | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,534 | |
Construction & Development | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,023 | 1,237 |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 35,491 | 23,974 |
Commercial Real Estate | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 3,137 | 2,831 |
Commercial Real Estate | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 13,573 | 4,315 |
Commercial Real Estate | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,834 | 1,562 |
Commercial Real Estate | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 15,947 | 15,266 |
Commercial Land | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 5,116 | 0 |
Commercial Land | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 5,116 | 0 |
Loans Insured or Guaranteed by US Government Authorities | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 45,196 | 28,070 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 14,454 | 11,592 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 0 | 0 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 3,468 | 3,235 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 6,918 | 6,356 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Registered Investment Advisors | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,577 | 0 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,328 | 2,001 |
Loans Insured or Guaranteed by US Government Authorities | Commercial & Industrial | Other Industries | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 163 | |
Loans Insured or Guaranteed by US Government Authorities | Construction & Development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 3,433 | 944 |
Loans Insured or Guaranteed by US Government Authorities | Construction & Development | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,905 | |
Loans Insured or Guaranteed by US Government Authorities | Construction & Development | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,528 | 944 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 25,579 | 15,534 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Real Estate | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,296 | 1,237 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Real Estate | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 9,241 | 2,967 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Real Estate | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 2,126 | 1,562 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Real Estate | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 11,916 | 9,768 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Land | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,730 | 0 |
Loans Insured or Guaranteed by US Government Authorities | Commercial Land | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,730 | 0 |
Unguaranteed Exposure | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 19,942 | 13,765 |
Unguaranteed Exposure | Commercial & Industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 5,520 | 5,032 |
Unguaranteed Exposure | Commercial & Industrial | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 6 | 7 |
Unguaranteed Exposure | Commercial & Industrial | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,368 | 1,316 |
Unguaranteed Exposure | Commercial & Industrial | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,136 | 2,215 |
Unguaranteed Exposure | Commercial & Industrial | Registered Investment Advisors | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,230 | 733 |
Unguaranteed Exposure | Commercial & Industrial | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 572 | 761 |
Unguaranteed Exposure | Commercial & Industrial | Other Industries | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,208 | |
Unguaranteed Exposure | Construction & Development | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 1,124 | 293 |
Unguaranteed Exposure | Construction & Development | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 629 | |
Unguaranteed Exposure | Construction & Development | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 495 | 293 |
Unguaranteed Exposure | Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 9,912 | 8,440 |
Unguaranteed Exposure | Commercial Real Estate | Death Care Management | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 841 | 1,594 |
Unguaranteed Exposure | Commercial Real Estate | Healthcare | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 4,332 | 1,348 |
Unguaranteed Exposure | Commercial Real Estate | Independent Pharmacies | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 708 | 0 |
Unguaranteed Exposure | Commercial Real Estate | Veterinary Industry | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 4,031 | 5,498 |
Unguaranteed Exposure | Commercial Land | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | 3,386 | 0 |
Unguaranteed Exposure | Commercial Land | Agriculture | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans | $ 3,386 | $ 0 |
Loans and Leases Held for Inv47
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Impaired Loans and Leases With Associated Reserves and No Associated Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | $ 63,440 | $ 63,440 | $ 37,290 | ||
Recorded Investment, With No Recorded Allowance | 1,698 | 1,698 | 4,545 | ||
Recorded Investment, Total | 65,138 | 65,138 | 41,835 | ||
Loans, Unpaid Principal Balance | 68,167 | 68,167 | 45,695 | ||
Loans, Related Allowance Recorded | 7,428 | 7,428 | 3,064 | ||
Loans, Average Balance | 64,608 | $ 38,500 | 64,188 | $ 38,867 | |
Loans, Interest Income Recognized | 304 | 228 | 586 | 413 | |
Commercial & Industrial | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 18,804 | 18,804 | 14,842 | ||
Recorded Investment, With No Recorded Allowance | 1,170 | 1,170 | 1,782 | ||
Recorded Investment, Total | 19,974 | 19,974 | 16,624 | ||
Loans, Unpaid Principal Balance | 21,860 | 21,860 | 18,566 | ||
Loans, Related Allowance Recorded | 2,742 | 2,742 | 1,372 | ||
Loans, Average Balance | 20,200 | 17,014 | 20,348 | 22,283 | |
Loans, Interest Income Recognized | 61 | 69 | 125 | 132 | |
Commercial & Industrial | Death Care Management | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 6 | 6 | 0 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 7 | ||
Recorded Investment, Total | 6 | 6 | 7 | ||
Loans, Unpaid Principal Balance | 6 | 6 | 7 | ||
Loans, Related Allowance Recorded | 1 | 1 | 0 | ||
Loans, Average Balance | 7 | 111 | 7 | 1,776 | |
Loans, Interest Income Recognized | 0 | 2 | 0 | 3 | |
Commercial & Industrial | Healthcare | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 4,081 | 4,081 | 3,521 | ||
Recorded Investment, With No Recorded Allowance | 755 | 755 | 1,030 | ||
Recorded Investment, Total | 4,836 | 4,836 | 4,551 | ||
Loans, Unpaid Principal Balance | 5,221 | 5,221 | 5,643 | ||
Loans, Related Allowance Recorded | 378 | 378 | 165 | ||
Loans, Average Balance | 5,094 | 6,708 | 5,188 | 5,054 | |
Loans, Interest Income Recognized | 19 | 19 | 31 | 41 | |
Commercial & Industrial | Independent Pharmacies | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 7,639 | 7,639 | 8,154 | ||
Recorded Investment, With No Recorded Allowance | 415 | 415 | 417 | ||
Recorded Investment, Total | 8,054 | 8,054 | 8,571 | ||
Loans, Unpaid Principal Balance | 9,183 | 9,183 | 9,078 | ||
Loans, Related Allowance Recorded | 400 | 400 | 521 | ||
Loans, Average Balance | 7,978 | 5,647 | 8,038 | 5,050 | |
Loans, Interest Income Recognized | 7 | 23 | 27 | 37 | |
Commercial & Industrial | Registered Investment Advisors | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,807 | 2,807 | 662 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 71 | ||
Recorded Investment, Total | 2,807 | 2,807 | 733 | ||
Loans, Unpaid Principal Balance | 2,799 | 2,799 | 725 | ||
Loans, Related Allowance Recorded | 1,012 | 1,012 | 504 | ||
Loans, Average Balance | 2,818 | 2,100 | 2,825 | 1,740 | |
Loans, Interest Income Recognized | 12 | 15 | 24 | 30 | |
Commercial & Industrial | Veterinary Industry | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,900 | 2,900 | 2,505 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 257 | ||
Recorded Investment, Total | 2,900 | 2,900 | 2,762 | ||
Loans, Unpaid Principal Balance | 3,279 | 3,279 | 3,113 | ||
Loans, Related Allowance Recorded | 194 | 194 | 182 | ||
Loans, Average Balance | 2,930 | 2,448 | 2,917 | 8,663 | |
Loans, Interest Income Recognized | 18 | 10 | 38 | 21 | |
Commercial & Industrial | Other Industries | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 1,371 | 1,371 | |||
Recorded Investment, With No Recorded Allowance | 0 | 0 | |||
Recorded Investment, Total | 1,371 | 1,371 | |||
Loans, Unpaid Principal Balance | 1,372 | 1,372 | |||
Loans, Related Allowance Recorded | 757 | 757 | |||
Loans, Average Balance | 1,373 | 0 | 1,373 | 0 | |
Loans, Interest Income Recognized | 5 | 0 | 5 | 0 | |
Construction & Development | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 4,557 | 4,557 | 1,237 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 0 | ||
Recorded Investment, Total | 4,557 | 4,557 | 1,237 | ||
Loans, Unpaid Principal Balance | 4,577 | 4,577 | 1,258 | ||
Loans, Related Allowance Recorded | 365 | 365 | 157 | ||
Loans, Average Balance | 4,325 | 0 | 4,088 | 0 | |
Loans, Interest Income Recognized | 28 | 0 | 56 | 0 | |
Construction & Development | Agriculture | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,534 | 2,534 | |||
Recorded Investment, With No Recorded Allowance | 0 | 0 | |||
Recorded Investment, Total | 2,534 | 2,534 | |||
Loans, Unpaid Principal Balance | 2,539 | 2,539 | |||
Loans, Related Allowance Recorded | 17 | 17 | |||
Loans, Average Balance | 2,526 | 0 | 2,509 | 0 | |
Loans, Interest Income Recognized | 0 | 0 | 5 | 0 | |
Construction & Development | Healthcare | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,023 | 2,023 | 1,237 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 0 | ||
Recorded Investment, Total | 2,023 | 2,023 | 1,237 | ||
Loans, Unpaid Principal Balance | 2,038 | 2,038 | 1,258 | ||
Loans, Related Allowance Recorded | 348 | 348 | 157 | ||
Loans, Average Balance | 1,799 | 0 | 1,579 | 0 | |
Loans, Interest Income Recognized | 28 | 0 | 51 | 0 | |
Commercial Real Estate | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 34,963 | 34,963 | 21,211 | ||
Recorded Investment, With No Recorded Allowance | 528 | 528 | 2,763 | ||
Recorded Investment, Total | 35,491 | 35,491 | 23,974 | ||
Loans, Unpaid Principal Balance | 36,605 | 36,605 | 25,813 | ||
Loans, Related Allowance Recorded | 2,966 | 2,966 | 1,535 | ||
Loans, Average Balance | 34,945 | 21,290 | 34,614 | 16,118 | |
Loans, Interest Income Recognized | 190 | 159 | 380 | 281 | |
Commercial Real Estate | Death Care Management | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,980 | 2,980 | 2,221 | ||
Recorded Investment, With No Recorded Allowance | 157 | 157 | 610 | ||
Recorded Investment, Total | 3,137 | 3,137 | 2,831 | ||
Loans, Unpaid Principal Balance | 3,248 | 3,248 | 2,964 | ||
Loans, Related Allowance Recorded | 160 | 160 | 260 | ||
Loans, Average Balance | 3,122 | 2,536 | 3,133 | 6,637 | |
Loans, Interest Income Recognized | 27 | 14 | 64 | 19 | |
Commercial Real Estate | Healthcare | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 13,202 | 13,202 | 3,717 | ||
Recorded Investment, With No Recorded Allowance | 371 | 371 | 598 | ||
Recorded Investment, Total | 13,573 | 13,573 | 4,315 | ||
Loans, Unpaid Principal Balance | 13,566 | 13,566 | 4,332 | ||
Loans, Related Allowance Recorded | 1,242 | 1,242 | 192 | ||
Loans, Average Balance | 12,852 | 1,808 | 12,486 | 1,642 | |
Loans, Interest Income Recognized | 64 | 12 | 80 | 24 | |
Commercial Real Estate | Independent Pharmacies | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 2,834 | 2,834 | 1,562 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 0 | ||
Recorded Investment, Total | 2,834 | 2,834 | 1,562 | ||
Loans, Unpaid Principal Balance | 2,835 | 2,835 | 1,933 | ||
Loans, Related Allowance Recorded | 288 | 288 | 8 | ||
Loans, Average Balance | 2,836 | 2,169 | 2,836 | 1,176 | |
Loans, Interest Income Recognized | 1 | 0 | 1 | 0 | |
Commercial Real Estate | Veterinary Industry | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 15,947 | 15,947 | 13,711 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 1,555 | ||
Recorded Investment, Total | 15,947 | 15,947 | 15,266 | ||
Loans, Unpaid Principal Balance | 16,956 | 16,956 | 16,584 | ||
Loans, Related Allowance Recorded | 1,276 | 1,276 | 1,075 | ||
Loans, Average Balance | 16,135 | 14,777 | 16,159 | 6,663 | |
Loans, Interest Income Recognized | 98 | 133 | 235 | 238 | |
Commercial Land | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 5,116 | 5,116 | 0 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 0 | ||
Recorded Investment, Total | 5,116 | 5,116 | 0 | ||
Loans, Unpaid Principal Balance | 5,125 | 5,125 | 58 | ||
Loans, Related Allowance Recorded | 1,355 | 1,355 | 0 | ||
Loans, Average Balance | 5,138 | 196 | 5,138 | 466 | |
Loans, Interest Income Recognized | 25 | 0 | 25 | 0 | |
Commercial Land | Agriculture | |||||
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment, With a Recorded Allowance | 5,116 | 5,116 | 0 | ||
Recorded Investment, With No Recorded Allowance | 0 | 0 | 0 | ||
Recorded Investment, Total | 5,116 | 5,116 | 0 | ||
Loans, Unpaid Principal Balance | 5,125 | 5,125 | 58 | ||
Loans, Related Allowance Recorded | 1,355 | 1,355 | $ 0 | ||
Loans, Average Balance | 5,138 | 196 | 5,138 | 466 | |
Loans, Interest Income Recognized | $ 25 | $ 0 | $ 25 | $ 0 |
Loans and Leases Held for Inv48
Loans and Leases Held for Investment and Allowance for Loan and Lease Losses - Recorded Investment in TDR Loans Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018SecurityLoan | Jun. 30, 2017USD ($)SecurityLoan | Jun. 30, 2018USD ($)SecurityLoan | Jun. 30, 2017USD ($)SecurityLoan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | SecurityLoan | 0 | 1 | 1 | 1 |
Pre-modification recorded investment | $ 262 | $ 612 | $ 262 | |
Post-modification recorded investment | $ 262 | $ 612 | $ 262 | |
Number of restructurings | SecurityLoan | 1 | |||
Commercial & Industrial | Healthcare | ||||
Financing Receivable, Modifications [Line Items] | ||||
Recorded investment | $ 107 |
Equipment Leasing - Additional
Equipment Leasing - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)term | Jun. 30, 2017USD ($) | |
Lessor, Lease, Description [Line Items] | ||||
Direct financing lease, interest income | $ 73 | $ 7 | $ 120 | $ 7 |
Number of additional terms | term | 2 | |||
Premises and equipment, net | 129,700 | $ 129,700 | ||
Premises and equipment, gross | 135,600 | 135,600 | ||
Premises and equipment, accumulated depreciation | 5,900 | 5,900 | ||
Premises and equipment, depreciation expense | $ 2,000 | $ 297 | $ 3,700 | $ 297 |
Minimum | ||||
Lessor, Lease, Description [Line Items] | ||||
Lessor, term of contract | 3 years | |||
Term of contract | 10 years | 10 years | ||
Useful life | 20 years | |||
Residual value (as a percent) | 20.00% | 20.00% | ||
Maximum | ||||
Lessor, Lease, Description [Line Items] | ||||
Lessor, term of contract | 7 years | |||
Term of contract | 15 years | 15 years | ||
Useful life | 25 years | |||
Residual value (as a percent) | 40.00% | 40.00% |
Equipment Leasing - Direct Fina
Equipment Leasing - Direct Financing Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
Gross direct finance lease payments receivable | $ 4,880 | $ 2,399 |
Less – unearned interest | (795) | (373) |
Net Investment in Direct Financing and Sales Type Leases | $ 4,085 | $ 2,026 |
Equipment Leasing - Finance Lea
Equipment Leasing - Finance Lease Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Leases [Abstract] | ||
2,018 | $ 487 | |
2,019 | 1,009 | |
2,020 | 998 | |
2,021 | 916 | |
2,022 | 733 | |
Thereafter | 737 | |
Total | $ 4,880 | $ 2,399 |
Equipment Leasing - Operating L
Equipment Leasing - Operating Lease Maturity (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Future Minimum Lease Payments Under Non-cancelable Operating Leases | |
2,018 | $ 3,200 |
2,019 | 7,486 |
2,020 | 7,536 |
2,021 | 7,572 |
2,022 | 7,599 |
Thereafter | 49,337 |
Total | $ 82,730 |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Servicing Assets at Fair Value [Line Items] | |||
Unpaid principal balance of loans serviced for others requiring recognition of a servicing asset | $ 2,580 | $ 2,440 | |
Unpaid principal balances of loan serviced for others | $ 2,670 | $ 2,540 | |
Minimum | |||
Servicing Assets at Fair Value [Line Items] | |||
Fair value of servicing rights, discount rate | 10.10% | 9.00% | |
Fair value of servicing rights, prepayment rate | 3.10% | 3.10% | |
Maximum | |||
Servicing Assets at Fair Value [Line Items] | |||
Fair value of servicing rights, discount rate | 15.40% | 13.20% | |
Fair value of servicing rights, prepayment rate | 23.30% | 10.20% |
Servicing Assets - Summary of A
Servicing Assets - Summary of Activity Pertaining to Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Servicing Asset at Fair Value, Amount [Roll Forward] | |||||
Balance at beginning of period | $ 53,120 | $ 53,584 | $ 52,298 | [1] | $ 51,994 |
Additions, net | 4,202 | 2,503 | 9,076 | 5,885 | |
Fair value changes: | |||||
Due to changes in valuation inputs or assumptions | (552) | 365 | (553) | 861 | |
Decay due to increases in principal paydowns or runoff | (4,081) | (2,777) | (8,132) | (5,065) | |
Balance at end of period | $ 52,689 | $ 53,675 | $ 52,689 | $ 53,675 | |
[1] | Derived from audited consolidated financial statements. |
Borrowings - Total Short Term B
Borrowings - Total Short Term Borrowings (Details) - USD ($) | Oct. 20, 2017 | Apr. 18, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 18, 2014 |
Short-term Debt [Line Items] | |||||
Short term borrowings | $ 0 | $ 0 | |||
Revolving Line of Credit with Unaffiliated Commercial Bank | Line of Credit | |||||
Short-term Debt [Line Items] | |||||
Short term borrowings | 0 | 0 | |||
Line of credit, maximum borrowing capacity | $ 20,000,000 | ||||
Debt instrument term | 12 months | ||||
Remaining available credit facility | 20,000,000 | ||||
Revolving Line of Credit with Unaffiliated Commercial Bank | Line of Credit | LIBOR | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Note Payable Revolving Line of Credit with Unaffiliated Commercial Bank | Line of Credit | |||||
Short-term Debt [Line Items] | |||||
Short term borrowings | 0 | $ 0 | |||
Line of credit, maximum borrowing capacity | $ 25,000,000 | $ 8,100,000 | |||
Debt instrument term | 24 months | ||||
Remaining available credit facility | $ 25,000,000 | ||||
Note Payable Revolving Line of Credit with Unaffiliated Commercial Bank | Line of Credit | Prime Rate | |||||
Short-term Debt [Line Items] | |||||
Basis spread on variable rate | 0.50% |
Borrowings - Total Long Term Bo
Borrowings - Total Long Term Borrowings (Details) | Feb. 23, 2015USD ($)SecurityLoan | Sep. 11, 2014USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2017USD ($) | |
Long term borrowings | ||||||
Long term borrowings | $ 3,385,000 | $ 26,564,000 | [1] | |||
Construction Line of Credit for Main Campus Construction | Line of Credit | ||||||
Long term borrowings | ||||||
Long term borrowings | 0 | 22,990,000 | ||||
Line of credit, maximum borrowing capacity | $ 24,000,000 | |||||
Debt instrument, fixed interest rate | 3.95% | |||||
Debt instrument term | 84 months | |||||
Line of credit facility, periodic payment | $ 146,000 | |||||
Related Party Loans Transfered to Unaffiliated Commercial Bank | Notes Payable to Banks | ||||||
Long term borrowings | ||||||
Long term borrowings | $ 3,368,000 | 3,574,000 | ||||
Debt instrument term | 60 months | |||||
Number of related party loans transferred | SecurityLoan | 2 | |||||
Debt instrument, face amount | $ 4,700,000 | |||||
Debt instrument, interest rate effective percentage | 5.75% | |||||
Collateral amount | $ 3,400,000 | |||||
Related Party Loans Transfered to Unaffiliated Commercial Bank | Notes Payable to Banks | Prime Rate | ||||||
Long term borrowings | ||||||
Basis spread on variable rate | (1.00%) | |||||
Capital Lease with Unaffiliated Lease Company | Capital Lease Obligations | ||||||
Long term borrowings | ||||||
Capital lease obligation | $ 17,000 | $ 0 | ||||
Capital lease obligations, noncurrent | $ 19,000 | |||||
Term of contract | 60 months | |||||
Option to purchase equipment, amount | $ 1 | |||||
[1] | Derived from audited consolidated financial statements. |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short term borrowings | $ 0 | $ 0 |
Repurchased agreements, borrowing capacity | 5,000,000 | 5,000,000 |
Repurchases agreements, outstanding balance | 0 | 0 |
Federal Funds Purchased | ||
Debt Instrument [Line Items] | ||
Line of credit, maximum borrowing capacity | 72,500,000 | 47,500,000 |
Short term borrowings | 0 | 0 |
Federal Reserve Bank Advances | Federal Reserve Bank | ||
Debt Instrument [Line Items] | ||
Short term borrowings | 0 | 0 |
Collateral amount | 370,300,000 | 348,500,000 |
Remaining available credit facility | $ 204,100,000 | $ 189,100,000 |
Fair Value of Financial Instr58
Fair Value of Financial Instruments - Recorded Amount of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | $ 53,675 | $ 52,689 | $ 53,675 | $ 53,120 | $ 52,298 | [1] | $ 53,584 | $ 51,994 |
Business combination contingent consideration fair value adjustment | $ 150 | (260) | 350 | |||||
Contingent consideration, liability | $ 4,300 | |||||||
Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Contingent consideration liability | 1,640 | 1,900 | ||||||
Recurring | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | 52,689 | 52,298 | ||||||
Equity warrant assets | 399 | |||||||
Total assets at fair value | 438,031 | 145,653 | ||||||
Contingent consideration liability | 1,640 | 1,900 | ||||||
Total liabilities at fair value | 1,640 | 1,900 | ||||||
Recurring | US treasury securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 4,952 | |||||||
Recurring | US government agencies | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 32,501 | 22,624 | ||||||
Recurring | Residential mortgage-backed securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 345,437 | 68,696 | ||||||
Recurring | Mutual Fund | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 2,053 | 2,035 | ||||||
Recurring | Level 1 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | 0 | 0 | ||||||
Equity warrant assets | 0 | |||||||
Total assets at fair value | 0 | 0 | ||||||
Contingent consideration liability | 0 | 0 | ||||||
Total liabilities at fair value | 0 | 0 | ||||||
Recurring | Level 1 | US treasury securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | |||||||
Recurring | Level 1 | US government agencies | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | 0 | ||||||
Recurring | Level 1 | Residential mortgage-backed securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | 0 | ||||||
Recurring | Level 1 | Mutual Fund | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | 0 | ||||||
Recurring | Level 2 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | 0 | 0 | ||||||
Equity warrant assets | 0 | |||||||
Total assets at fair value | 384,943 | 93,355 | ||||||
Contingent consideration liability | 0 | 0 | ||||||
Total liabilities at fair value | 0 | 0 | ||||||
Recurring | Level 2 | US treasury securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 4,952 | |||||||
Recurring | Level 2 | US government agencies | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 32,501 | 22,624 | ||||||
Recurring | Level 2 | Residential mortgage-backed securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 345,437 | 68,696 | ||||||
Recurring | Level 2 | Mutual Fund | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 2,053 | 2,035 | ||||||
Recurring | Level 3 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Servicing assets | 52,689 | 52,298 | ||||||
Equity warrant assets | 399 | |||||||
Total assets at fair value | 53,088 | 52,298 | ||||||
Contingent consideration liability | 1,640 | 1,900 | ||||||
Total liabilities at fair value | 1,640 | 1,900 | ||||||
Recurring | Level 3 | US treasury securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | |||||||
Recurring | Level 3 | US government agencies | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | 0 | ||||||
Recurring | Level 3 | Residential mortgage-backed securities | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | 0 | 0 | ||||||
Recurring | Level 3 | Mutual Fund | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Investment securities available-for-sale | $ 0 | $ 0 | ||||||
[1] | Derived from audited consolidated financial statements. |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Recorded Amount of Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Details) - Non-recurring Fair Value - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | $ 56,012 | $ 34,493 |
Foreclosed assets | 1,725 | 1,281 |
Total assets at fair value | 57,737 | 35,774 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total assets at fair value | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | 56,012 | 34,493 |
Foreclosed assets | 1,725 | 1,281 |
Total assets at fair value | $ 57,737 | $ 35,774 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments - Analysis of Level 3 Valuation Techniques (Details) - Level 3 $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, fair value | $ 1,640 | $ 1,900 |
Impaired Loans and Leases | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, fair value | $ 56,012 | $ 34,493 |
Impaired Loans and Leases | Discounted appraisals Discounted expected cash flows | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 0.10 | 0.10 |
Impaired Loans and Leases | Discounted appraisals Discounted expected cash flows | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 0.48 | 0.25 |
Impaired Loans and Leases | Discounted appraisals | Weighted Average | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 0.0693 | 0.0626 |
Foreclosed Assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, fair value | $ 1,725 | $ 1,281 |
Foreclosed Assets | Discounted appraisals Discounted expected cash flows | Minimum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed assets, measurement input | 0.09 | 0.10 |
Foreclosed Assets | Discounted appraisals Discounted expected cash flows | Maximum | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Foreclosed assets, measurement input | 0.37 | 0.37 |
Equity Warrant Assets | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset, fair value | $ 399 | |
Equity Warrant Assets | Discounted appraisals Discounted expected cash flows | Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.2010 | |
Equity Warrant Assets | Discounted appraisals Discounted expected cash flows | Risk Free Interest Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.0285 | |
Equity Warrant Assets | Discounted appraisals Discounted expected cash flows | Discount Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, measurement input | 0.20 | |
Equity Warrant Assets | Discounted appraisals Discounted expected cash flows | Expected Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants, term | 9 years | |
Contingent Consideration Liability | Discounted appraisals Discounted expected cash flows | Price Volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 0.2500 | 0.2500 |
Contingent Consideration Liability | Discounted appraisals Discounted expected cash flows | Risk Free Interest Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 0.0209 | 0.0143 |
Contingent Consideration Liability | Discounted appraisals Discounted expected cash flows | Expected Term | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, term | 2 years 9 months | 3 years |
Contingent Consideration Liability | Discounted appraisals Discounted expected cash flows | Expected Dividend Rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Contingent consideration liability, measurement input | 0.0043 | 0.0051 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Financial assets | |||||||
Investment securities, available-for-sale | $ 384,943 | $ 93,355 | [1] | ||||
Servicing assets | 52,689 | $ 53,120 | 52,298 | [1] | $ 53,675 | $ 53,584 | $ 51,994 |
Carrying Amount | |||||||
Financial assets | |||||||
Cash and due from banks | 392,941 | 295,271 | |||||
Certificates of deposit with other banks | 2,250 | 3,000 | |||||
Investment securities, available-for-sale | 384,943 | 93,355 | |||||
Loans held for sale | 757,494 | 680,454 | |||||
Loans and leases, net of allowance for loan and lease losses | 1,505,018 | 1,319,783 | |||||
Servicing assets | 52,689 | 52,298 | |||||
Accrued interest receivable | 13,807 | 10,160 | |||||
Financial liabilities | |||||||
Deposits | 2,969,236 | 2,260,263 | |||||
Accrued interest payable | 534 | 367 | |||||
Long term borrowings | 3,385 | 26,564 | |||||
Total Fair Value | |||||||
Financial assets | |||||||
Cash and due from banks | 392,941 | 295,271 | |||||
Certificates of deposit with other banks | 2,243 | 2,993 | |||||
Investment securities, available-for-sale | 384,943 | 93,355 | |||||
Loans held for sale | 772,006 | 706,972 | |||||
Loans and leases, net of allowance for loan and lease losses | 1,500,415 | 1,319,615 | |||||
Servicing assets | 52,689 | 52,298 | |||||
Accrued interest receivable | 13,807 | 10,160 | |||||
Financial liabilities | |||||||
Deposits | 2,910,479 | 2,232,370 | |||||
Accrued interest payable | 534 | 367 | |||||
Long term borrowings | 3,399 | 27,390 | |||||
Total Fair Value | Level 1 | |||||||
Financial assets | |||||||
Cash and due from banks | 392,941 | 295,271 | |||||
Certificates of deposit with other banks | 2,243 | 2,993 | |||||
Investment securities, available-for-sale | 0 | 0 | |||||
Loans held for sale | 0 | 0 | |||||
Loans and leases, net of allowance for loan and lease losses | 0 | 0 | |||||
Servicing assets | 0 | 0 | |||||
Accrued interest receivable | 13,807 | 10,160 | |||||
Financial liabilities | |||||||
Deposits | 0 | 0 | |||||
Accrued interest payable | 534 | 367 | |||||
Long term borrowings | 0 | 0 | |||||
Total Fair Value | Level 2 | |||||||
Financial assets | |||||||
Cash and due from banks | 0 | 0 | |||||
Certificates of deposit with other banks | 0 | 0 | |||||
Investment securities, available-for-sale | 384,943 | 93,355 | |||||
Loans held for sale | 0 | 0 | |||||
Loans and leases, net of allowance for loan and lease losses | 0 | 0 | |||||
Servicing assets | 0 | 0 | |||||
Accrued interest receivable | 0 | 0 | |||||
Financial liabilities | |||||||
Deposits | 2,910,479 | 2,232,370 | |||||
Accrued interest payable | 0 | 0 | |||||
Long term borrowings | 0 | 0 | |||||
Total Fair Value | Level 3 | |||||||
Financial assets | |||||||
Cash and due from banks | 0 | 0 | |||||
Certificates of deposit with other banks | 0 | 0 | |||||
Investment securities, available-for-sale | 0 | 0 | |||||
Loans held for sale | 772,006 | 706,972 | |||||
Loans and leases, net of allowance for loan and lease losses | 1,500,415 | 1,319,615 | |||||
Servicing assets | 52,689 | 52,298 | |||||
Accrued interest receivable | 0 | 0 | |||||
Financial liabilities | |||||||
Deposits | 0 | 0 | |||||
Accrued interest payable | 0 | 0 | |||||
Long term borrowings | $ 3,399 | $ 27,390 | |||||
[1] | Derived from audited consolidated financial statements. |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total unfunded off-balance-sheet credit risk | $ 1,421,147 | $ 1,835,806 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total unfunded off-balance-sheet credit risk | 1,349,217 | 1,701,137 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total unfunded off-balance-sheet credit risk | 2,636 | 2,298 |
Solar purchase commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total unfunded off-balance-sheet credit risk | 49,844 | 106,921 |
Airplane purchase agreement commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total unfunded off-balance-sheet credit risk | $ 19,450 | $ 25,450 |
Commitments and Contingencies63
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($)Customer | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Commitment letters expiration period (in days) | 90 days | ||
Commitments for on-balance sheet instruments | $ 3,300,000 | $ 3,300,000 | $ 3,500,000 |
Maximum retained credit exposure | 7,500,000 | ||
Future minimum lease payments under non-cancelable operating leases | 82,700,000 | $ 82,700,000 | |
Nine Relationships | |||
Concentration Risk [Line Items] | |||
Number of relationships that have retained unguaranteed exposure | Customer | 9 | ||
Retained credit exposure | $ 109,300,000 | ||
Retained exposure, amount disbursed | 100,300,000 | ||
Four Relationships | |||
Concentration Risk [Line Items] | |||
Future minimum lease payments under non-cancelable operating leases | $ 62,100,000 | $ 62,100,000 |
Stock Plans - Narrative (Detail
Stock Plans - Narrative (Details) - USD ($) | May 15, 2018 | May 14, 2018 | May 24, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 809,000 | $ 924,000 | |||||
Intrinsic value of options exercised | $ 2,900,000 | $ 867,000 | |||||
Stock options granted (in shares) | 0 | 0 | 0 | 0 | |||
Stock Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Compensation expense | $ 347,000 | $ 468,000 | $ 780,000 | $ 882,000 | |||
Unrecognized compensation costs, stock options | 7,200,000 | $ 7,200,000 | |||||
Unrecognized compensation costs period recognized | 2 years 5 months 1 day | ||||||
Market Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs period recognized | 2 years 6 months 22 days | ||||||
Minimum required consecutive trading days that common stock must close at or above required share price (in days) | 20 days | ||||||
Performance awards units earned as a percent of units awarded | 100.00% | ||||||
Granted (in shares) | 75,000 | 75,000 | |||||
Measurement period | 7 years | ||||||
Expected term | 3 years 3 months 18 days | ||||||
Risk free interest rate | 2.96% | ||||||
Expected volatility rate | 27.00% | ||||||
Expected dividend rate | 0.42% | ||||||
Share-based compensation expense | 947,000 | 1,200,000 | $ 1,900,000 | 2,400,000 | |||
Unrecognized compensation costs | 13,500,000 | $ 13,500,000 | |||||
Market Restricted Stock | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price threshold for performance criteria (in dollars per share) | $ 34 | ||||||
Market Restricted Stock | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share price threshold for performance criteria (in dollars per share) | $ 48 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation costs period recognized | 4 years 9 months 11 days | ||||||
Granted (in shares) | 152,422 | ||||||
Share-based compensation expense | 921,000 | $ 167,000 | $ 1,800,000 | 326,000 | |||
Unrecognized compensation costs | $ 5,300,000 | 5,300,000 | |||||
2015 Omnibus Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common voting shares authorized (in shares) | 8,750,000 | 7,000,000 | |||||
Options or restricted shares of expiration period (in years) | 10 years | ||||||
Percentage of fair market value of common stock | 100.00% | ||||||
Option vesting period (in years) | 3 years | ||||||
Employee Stock Purchase Plan | Employee Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | 29,000 | $ 43,000 | |||||
Maximum annual purchase per employee | $ 25,000 | ||||||
Purchase date discount | 15.00% |
Stock Plans - Stock Option Acti
Stock Plans - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Shares, outstanding, beginning balance (in shares) | 3,058,459 | 3,478,208 | ||
Shares, exercised (in shares) | 144,671 | 58,921 | ||
Shares, forfeited (in shares) | 134,623 | 195,468 | ||
Shares, granted (in shares) | 0 | 0 | 0 | 0 |
Shares, outstanding, ending balance (in shares) | 2,779,165 | 3,223,819 | 2,779,165 | 3,223,819 |
Shares, exercisable (in shares) | 727,697 | 596,021 | 727,697 | 596,021 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Weighted average exercise price, outstanding, beginning balance (in dollars per share) | $ 11.30 | $ 11.51 | ||
Weighted average exercise price, exercised (in dollars per share) | 8.66 | 7.73 | ||
Weighted average exercise price, forfeited (in dollars per share) | 14.11 | 14.38 | ||
Weighted average exercise price, granted (in dollars per share) | 0 | 0 | ||
Weighted average exercise price, outstanding, ending balance (in dollars per share) | $ 11.30 | $ 11.41 | 11.30 | 11.41 |
Weighted average exercise price, exercisable (in dollars per share) | $ 9.83 | $ 9.06 | $ 9.83 | $ 9.06 |
Weighted average remaining contractual term, outstanding | 6 years 6 months 15 days | 7 years 6 months 22 days | ||
Weighted average remaining contractual term, exercisable | 6 years 3 months 7 days | 7 years 2 months 5 days | ||
Aggregate intrinsic value, outstanding | $ 53,786,948 | $ 41,246,695 | $ 53,786,948 | $ 41,246,695 |
Aggregate intrinsic value, exercisable | $ 15,148,795 | $ 9,021,234 | $ 15,148,795 | $ 9,021,234 |
Stock Plans - Summary of Non-ve
Stock Plans - Summary of Non-vested Stock Option Activity (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | ||||
Shares, non-vested, beginning balance (in shares) | 2,364,999 | 3,016,100 | ||
Shares, granted (in shares) | 0 | 0 | 0 | 0 |
Shares, vested (in shares) | (178,908) | (192,834) | ||
Shares, forfeited (in shares) | (134,623) | (195,468) | ||
Shares, non-vested, ending balance (in shares) | 2,051,468 | 2,627,798 | 2,051,468 | 2,627,798 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Weighted average grant date fair value, non-vested, beginning balance (in dollars per share) | $ 4.65 | $ 4.78 | ||
Weighted average grant date fair value, granted (in dollars per share) | 0 | 0 | ||
Weighted average grant date fair value, vested (in dollars per share) | 2.95 | 2.12 | ||
Weighted average grant date fair value, forfeited (in dollars per share) | 6.26 | 6.17 | ||
Weighted average grant date fair value, non-vested, ending balance (in dollars per share) | $ 4.79 | $ 4.87 | $ 4.79 | $ 4.87 |
Stock Plans - Restricted Stock
Stock Plans - Restricted Stock Unit Activity (Details) - $ / shares | May 14, 2018 | Jun. 30, 2018 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, outstanding, beginning balance (in shares) | 181,814 | |
Granted (in shares) | 152,422 | |
Vested (in shares) | (56,799) | |
Forfeited (in shares) | (11,320) | |
Shares, outstanding, ending balance (in shares) | 266,117 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ 20.03 | |
Shares granted, weighted average grant date fair value (in dollars per share) | 28.01 | |
Shares vested, weighted average grant date fair value (in dollars per share) | 26.54 | |
Shares forfeited, weighted average grant date fair value (in dollars per share) | 23.36 | |
Shares outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ 23.07 | |
Market Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Shares, outstanding, beginning balance (in shares) | 2,532,808 | |
Granted (in shares) | 75,000 | 75,000 |
Vested (in shares) | 0 | |
Forfeited (in shares) | (216,019) | |
Shares, outstanding, ending balance (in shares) | 2,391,789 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Shares outstanding, weighted average grant date fair value, beginning balance (in dollars per share) | $ 8.78 | |
Shares granted, weighted average grant date fair value (in dollars per share) | 17.51 | |
Shares vested, weighted average grant date fair value (in dollars per share) | 0 | |
Shares forfeited, weighted average grant date fair value (in dollars per share) | 9.06 | |
Shares outstanding, weighted average grant date fair value, ending balance (in dollars per share) | $ 9.03 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Aug. 01, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Proceeds from divestiture of businesses | $ 3 |
Divestiture of business, cost of transaction | $ 2.5 |