DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 07, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | LegacyTexas Financial Group, Inc. | ||
Entity Central Index Key | 1,487,052 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 47,886,498 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,245.8 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from financial institutions | $ 59,823 | $ 53,847 |
Short-term interest-bearing deposits in other financial institutions | 229,389 | 561,792 |
Total cash and cash equivalents | 289,212 | 615,639 |
Securities available for sale, at fair value | 354,515 | 311,708 |
Securities held to maturity (fair value: December 31, 2016 — $212,981, December 31, 2015— $247,202) | 210,387 | 240,433 |
Loans held for sale, at fair value | 21,279 | 22,535 |
Loans held for investment (net of allowance for loan losses of $64,576 at December 31, 2016 and $47,093 at December 31, 2015) | 5,998,596 | 5,017,554 |
Loans held for investment - Warehouse Purchase Program | 1,055,341 | 1,043,719 |
Total loans held for investment | 7,053,937 | 6,061,273 |
Federal Home Loan Bank (FHLB) stock and other restricted securities, at cost | 43,266 | 63,075 |
Bank-owned life insurance | 56,477 | 55,231 |
Premises and equipment, net | 74,226 | 77,637 |
Goodwill | 178,559 | 180,776 |
Other assets | 80,397 | 63,633 |
Total assets | 8,362,255 | 7,691,940 |
Deposits | ||
Non-interest-bearing demand | 1,383,951 | 1,170,272 |
Interest-bearing demand | 903,314 | 819,350 |
Savings and money market | 2,710,307 | 2,209,698 |
Time | 1,367,904 | 1,027,391 |
Total deposits | 6,365,476 | 5,226,711 |
FHLB advances | 833,682 | 1,439,904 |
Repurchase agreements | 86,691 | 83,269 |
Subordinated debt | 134,032 | 84,992 |
Accrued expenses and other liabilities | 57,009 | 52,988 |
Total liabilities | 7,476,890 | 6,887,864 |
Commitments and contingent liabilities (See Note 17) | ||
Shareholders’ equity | ||
Preferred stock, $.01 par value; 10,000,000 shares authorized; 0 shares issued — December 31, 2016 and December 31, 2015 | 0 | 0 |
Common stock, $.01 par value; 90,000,000 shares authorized; shares issued 47,876,198 — December 31, 2016 and 47,645,826 shares issued — December 31, 2015 | 479 | 476 |
Additional paid-in capital | 589,408 | 576,753 |
Retained earnings | 310,641 | 240,496 |
Accumulated other comprehensive income (loss), net | (2,713) | (133) |
Unearned Employee Stock Ownership Plan (ESOP) shares; 1,245,046 shares at December 31, 2016 and 1,365,457 shares at December 31, 2015 | (12,450) | (13,516) |
Total shareholders’ equity | 885,365 | 804,076 |
Total liabilities and shareholders’ equity | $ 8,362,255 | $ 7,691,940 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Fair value of securities held to maturity | $ 212,981 | $ 247,202 |
Allowance for loan losses on loans held for investment | $ 64,576 | $ 47,093 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common Stock, shares issued (in shares) | 47,876,198 | 47,645,826 |
Unearned Employee Stock Ownership Plan (ESOP) shares (in shares) | 1,245,046 | 1,365,457 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest and dividend income | |||
Loans, including fees | $ 301,542 | $ 248,665 | $ 137,255 |
Taxable securities | 9,254 | 9,307 | 9,352 |
Nontaxable securities | 3,052 | 2,995 | 2,248 |
Interest-bearing deposits in other financial institutions | 1,878 | 631 | 249 |
FHLB and FRB stock and other | 1,626 | 1,094 | 543 |
Total interest and dividend income | 317,352 | 262,692 | 149,647 |
Interest expense | |||
Deposits | 21,034 | 13,127 | 8,212 |
FHLB advances | 7,167 | 6,552 | 7,610 |
Interest Expense, Other | 6,882 | 1,936 | 818 |
Total interest expense | 35,083 | 21,615 | 16,640 |
Net interest income | 282,269 | 241,077 | 133,007 |
Provision for credit losses | 26,900 | 25,465 | 6,721 |
Net interest income after provision for credit losses | 255,369 | 215,612 | 126,286 |
Non-interest income | |||
Service charges and other fees | 36,690 | 30,936 | 19,382 |
Net gain on sale of mortgage loans held for sale | 8,225 | 8,036 | 0 |
Bank-owned life insurance income | 1,744 | 1,699 | 628 |
Net gain on securities transactions | 56 | 203 | 0 |
Gain on sale and disposition of assets | 3,356 | 873 | 658 |
Other | 1,860 | 3,068 | 75 |
Total non-interest income | 51,931 | 44,815 | 20,743 |
Non-interest expense | |||
Salaries and employee benefits | 92,568 | 92,527 | 55,057 |
Merger and acquisition costs | 0 | 1,553 | 10,291 |
Advertising | 3,861 | 3,773 | 1,535 |
Occupancy and equipment | 15,007 | 14,860 | 7,374 |
Outside professional services | 3,872 | 3,332 | 2,291 |
Regulatory assessments | 4,948 | 4,260 | 2,713 |
Data processing | 14,974 | 11,278 | 6,862 |
Office operations | 9,901 | 10,697 | 6,584 |
Other | 11,246 | 9,275 | 5,385 |
Total non-interest expense | 156,377 | 151,555 | 98,092 |
Income before income tax expense | 150,923 | 108,872 | 48,937 |
Income tax expense | 53,102 | 37,956 | 17,659 |
Net income | $ 97,821 | $ 70,916 | $ 31,278 |
Earnings per share: | |||
Basic (in dollars per share) | $ 2.11 | $ 1.54 | $ 0.82 |
Diluted (in dollars per share) | 2.09 | 1.53 | 0.81 |
Dividends declared per share (in dollars per share) | $ 0.58 | $ 0.54 | $ 0.48 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 97,821 | $ 70,916 | $ 31,278 |
Change in unrealized gains (losses) on securities available for sale | (3,917) | (1,434) | 2,022 |
Reclassification of amount realized through sale of securities | (56) | (203) | 0 |
Tax effect | 1,393 | 574 | (709) |
Other comprehensive income (loss), net of tax | (2,580) | (1,063) | 1,313 |
Comprehensive income | $ 95,241 | $ 69,853 | $ 32,591 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net [Member] | Unearned ESOP Shares [Member] |
Balance at Dec. 31, 2013 | $ 544,460 | $ 399 | $ 377,657 | $ 183,236 | $ (383) | $ (16,449) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 31,278 | 31,278 | ||||
Other comprehensive income (loss), net of tax | 1,313 | 1,313 | ||||
Dividends declared | (19,187) | (19,187) | ||||
ESOP shares earned | 5,557 | 4,091 | 1,466 | |||
Share-based compensation expense | 3,717 | 3,717 | ||||
Net issuance of common stock under employee stock plans | 1,085 | 1 | 1,084 | |||
Balance at Dec. 31, 2014 | 568,223 | 400 | 386,549 | 195,327 | 930 | (14,983) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 70,916 | 70,916 | ||||
Other comprehensive income (loss), net of tax | (1,063) | (1,063) | ||||
Dividends declared | (25,747) | (25,747) | ||||
ESOP shares earned | 5,751 | 4,284 | 1,467 | |||
Share-based compensation expense | 5,477 | 5,477 | ||||
Net issuance of common stock under employee stock plans | 1,284 | 1 | 1,283 | |||
Share repurchase | (7,989) | (4) | (7,985) | |||
Acquisition of LegacyTexas Group, Inc. | 187,224 | 79 | 187,145 | |||
Balance at Dec. 31, 2015 | 804,076 | 476 | 576,753 | 240,496 | (133) | (13,516) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 97,821 | 97,821 | ||||
Other comprehensive income (loss), net of tax | (2,580) | (2,580) | ||||
Dividends declared | (27,676) | (27,676) | ||||
ESOP shares earned | 3,955 | 2,889 | 1,066 | |||
Share-based compensation expense | 6,014 | 6,014 | ||||
Net issuance of common stock under employee stock plans | 3,755 | 3 | 3,752 | |||
Balance at Dec. 31, 2016 | $ 885,365 | $ 479 | $ 589,408 | $ 310,641 | $ (2,713) | $ (12,450) |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.58 | $ 0.54 | $ 0.48 |
ESOP shares (in shares) | 120,411 | 184,194 | 184,194 |
Net issuance of common stock under employee stock plans (in shares) | 230,372 | 138,855 | 76,035 |
Number of shares repurchased (in shares) | 357,950 | ||
Stock issued for acquisition (in shares) | 7,850,070 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities | |||
Net income | $ 97,821 | $ 70,916 | $ 31,278 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 26,900 | 25,465 | 6,721 |
Depreciation and amortization | 7,081 | 7,196 | 4,393 |
Deferred tax expense (benefit) | (6,798) | (692) | (1,414) |
Premium amortization and accretion of securities, net | 4,359 | 4,267 | 3,416 |
Accretion related to acquired loans | (4,613) | (10,241) | (1,500) |
Net (gain) on securities transactions | (56) | (203) | 0 |
ESOP compensation expense | 3,955 | 5,751 | 5,557 |
Share-based compensation expense | 6,014 | 5,477 | 3,717 |
Net gain on loans held for sale | (8,225) | (8,036) | 0 |
Loans originated or purchased for sale | (218,288) | (222,195) | 0 |
Proceeds from sale of loans held for sale | 227,769 | 225,335 | 0 |
FHLB stock dividends | (539) | (152) | (103) |
Bank-owned life insurance income | (1,744) | (1,699) | (628) |
(Gain) loss on sale and disposition of repossessed assets, premises and equipment | (3,524) | (293) | 1,824 |
Disposition of insurance subsidiary goodwill upon sale of subsidiary operations | 2,217 | 0 | 0 |
Net change in deferred loan fees (costs) | 391 | (1,067) | 1,660 |
Net change in accrued interest receivable | (3,238) | (2,821) | (443) |
Net change in other assets | (2,947) | 8,444 | 117 |
Net change in other liabilities | 5,913 | (16,250) | (2,571) |
Net cash provided by operating activities | 132,448 | 89,202 | 52,024 |
Available for sale securities: | |||
Maturities, prepayments and calls | 2,276,913 | 2,114,641 | 2,050,002 |
Purchases | (2,334,558) | (2,148,080) | (2,001,501) |
Proceeds from sale of AFS securities | 7,700 | 36,984 | 0 |
Held to maturity securities: | |||
Maturities, prepayments and calls | 41,384 | 49,730 | 57,000 |
Purchases | (12,477) | (15,933) | (5,919) |
Originations of Warehouse Purchase Program loans | (19,966,527) | (15,511,029) | (11,913,793) |
Proceeds from pay-offs of Warehouse Purchase Program loans | 19,954,905 | 15,253,726 | 11,800,847 |
Net change in loans held for investment, excluding Warehouse Purchase Program | (1,014,500) | (1,030,016) | (583,762) |
Redemption (purchase) of FHLB and FRB stock and other | 20,348 | (14,527) | (9,098) |
Cash received in excess of cash paid for acquisition of LegacyTexas Group, Inc. | 0 | 128,598 | 0 |
Purchases of premises and equipment | (8,420) | (5,660) | (1,253) |
Proceeds from sale of assets | 15,803 | 10,121 | 621 |
Net cash (used in) investing activities | (1,019,429) | (1,131,445) | (606,856) |
Cash flows from financing activities | |||
Net change in deposits | 1,138,765 | 940,862 | 393,170 |
Proceeds from FHLB advances | 200,000 | 1,350,000 | 712,000 |
Repayments on FHLB advances | (806,222) | (773,003) | (488,189) |
Share repurchase | 0 | (7,989) | 0 |
Proceeds from borrowings | 76,861 | 73,407 | 0 |
Repayments of borrowings | (24,929) | (32,953) | 0 |
Payment of dividends | (27,676) | (25,747) | (19,187) |
Activity in employee stock plans | 3,755 | 1,284 | 1,085 |
Net cash provided by financing activities | 560,554 | 1,525,861 | 598,879 |
Net change in cash and cash equivalents | (326,427) | 483,618 | 44,047 |
Beginning cash and cash equivalents | 615,639 | 132,021 | 87,974 |
Ending cash and cash equivalents | 289,212 | 615,639 | 132,021 |
Supplemental cash flow information: | |||
Interest paid | 34,625 | 20,861 | 16,807 |
Income taxes paid | 60,854 | 36,835 | 15,941 |
Supplemental noncash disclosures: | |||
Transfers from loans to other real estate owned | 10,780 | 3,287 | 954 |
Common stock issued in consideration of LegacyTexas Group, Inc. acquisition | $ 0 | $ 187,224 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidation : The consolidated financial statements include LegacyTexas Financial Group, Inc. (the "Company"), whose business at December 31, 2016 primarily consisted of the operations of its wholly-owned subsidiary, LegacyTexas Bank (the "Bank"). In addition, the Company also offers title services through LegacyTexas Title Co., which is a wholly-owned subsidiary of the Bank. Intercompany transactions and balances are eliminated in consolidation. At December 31, 2016 , the Company provided financial services through 45 banking offices in the Dallas/Fort Worth Metroplex and surrounding counties. Its primary deposit products are demand, savings and certificate of deposit accounts, and its primary lending products are commercial real estate, commercial and industrial and consumer lending, including one- to four- family real estate loans. Most loans are secured by specific items of collateral, including business assets, commercial and residential real estate and consumer assets. Commercial loans are expected to be repaid from cash flow from operations of businesses. Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles ("US GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, valuation of other real estate owned, other-than-temporary impairment of securities, realization of deferred tax assets, and fair values of financial instruments are subject to change. Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions, federal funds purchased, Federal Home Loan Bank advances and repurchase agreements. Restrictions on Cash : The Company maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. Cash balances equaling or exceeding escrow amounts are maintained at correspondent banks. Securities : Securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available for sale and are carried at fair value. Unrealized gains and losses on securities classified as available for sale have been accounted for as accumulated other comprehensive income (loss), net of taxes. Gains and losses on the sale of securities classified as available for sale are recorded on the trade date using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayment, except for mortgage-backed securities where prepayments are anticipated. The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis and more frequently when economic, market, or security specific concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than amortized cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition. The Company conducts regular reviews of the bond agency ratings of securities and considers whether the securities were issued by or have principal and interest payments guaranteed by the federal government or its agencies. These reviews focus on the underlying rating of the issuer and also include the insurance rating of securities that have an insurance component or guarantee. The ratings and financial condition of the issuers are monitored, as well as the financial condition and ratings of the insurers and guarantors. For periods in which other-than-temporary impairment of a debt security is recognized, the credit portion of the amount is determined by subtracting the present value of the stream of estimated cash flows as calculated in a discounted cash flow model and discounted at book yield from the prior period’s ending carrying value. The non-credit portion of the amount is determined by subtracting the credit portion of the impairment from the difference between the book value and fair value of the security. The credit related portion of the impairment is charged against income and the non-credit related portion is charged to equity as a component of accumulated other comprehensive income. The Company did not recognize any other-than-temporary impairment on its securities portfolio for the years ended December 31, 2016 and 2015 . Mortgage Loans Held for Sale : The Company elects the fair value option for recording residential mortgage loans held for sale in accordance with Accounting Standards Codification ("ASC") 825, "Financial Instruments". This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, “Derivatives and Hedging.” Warehouse Purchase Program Loans : The Warehouse Purchase Program allows unaffiliated mortgage originators to close one-to-four family real estate loans in their own name and manage its cash flow needs until the loans are sold to investors. The mortgage banking company customer closes mortgage loans consistent with underwriting standards established by the Bank and approved investors and, once all pertinent documents are received, the participation interest is delivered by the Bank to the investor selected by the originator and approved by us. Although not bound by any legally binding commitment, when a purchase decision is made, we purchase a 100% participation interest in the mortgage loans originated by our mortgage banking company customers. All Warehouse Purchase Program loans are collectively evaluated for impairment and are purchased under several contractual requirements, providing safeguards to the Company. These safeguards include the requirement that our mortgage company customers have a takeout commitment or similar arrangement for each loan. To date, the Company has not experienced a loss on these loans and no allowance for loan losses has been allocated to them. Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Past due status is based on the contractual terms of the loan. Loans that are past due 30 days are considered delinquent. Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Non-mortgage consumer loans are typically charged off no later than 120 days past due. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and larger individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. For loans collateralized by real property and commercial and industrial loans, credit exposure is monitored by internally assigned grades used for classification of loans. A loan is considered “special mention” when management has determined that there is a potential weakness that deserves management's close attention. Loans rated as "special mention" are not adversely classified according to regulatory classifications and do not expose the Company to sufficient risk to warrant adverse classification. A loan is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. “Substandard” loans include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected, and the loan may or may not meet the criteria for impairment. Loans classified as “doubtful” have all of the weaknesses of those classified as “substandard”, with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” All other loans that do not fall into the above mentioned categories are considered “pass” loans. Updates to internally assigned grades are made monthly and/or upon significant developments. For other consumer loans (non-real estate), credit exposure is monitored by payment history of the loans. Non-performing other consumer loans are on nonaccrual status and are generally greater than 90 days past due. Acquired Loans : Loans acquired through the completion of a transfer, including loans acquired in a business combination, that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payment receivable are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized on the balance sheet and do not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Revolving loans, including lines of credit, are excluded from acquired credit impaired loan accounting. For acquired loans not deemed credit-impaired at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to the acquisition date, methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans; however, a provision for credit losses will be recorded only to the extent the required allowance exceeds any remaining credit discounts. Concentration of Credit Risk : Most of the Company’s business activity is with customers located within the North Texas region and a large portion of loans are secured by real estate in this area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of the North Texas area. Allowance for Loan Losses : The allowance for loan losses and related provision expense are susceptible to change if the credit quality of our loan portfolio changes, which is evidenced by many factors, including but not limited to charge-offs and non-performing loan trends. Generally, consumer real estate lending has a lower credit risk profile compared to other consumer lending (such as automobile loans). Commercial real estate and commercial and industrial lending, however, can have higher risk profiles than consumer loans due to these loans being larger in amount and non-homogeneous in structure and term. Changes in economic conditions, the mix and size of the loan portfolio, and individual borrower conditions can dramatically impact our level of allowance for loan losses in relatively short periods of time. The allowance for loan losses is maintained to cover incurred losses that are estimated in accordance with US GAAP. It is our estimate of credit losses inherent in our loan portfolio at each balance sheet date. Our methodology for analyzing the allowance for loan losses consists of general and specific components. For the general component, we stratify the loan portfolio into homogeneous groups of loans that possess similar loss potential characteristics and apply a loss ratio to these groups of loans to estimate the credit losses in the loan portfolio. We use both historical loss ratios and qualitative loss factors assigned to major loan collateral types to establish general component loss allocations, inclusive of estimated loss emergence periods. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data and external economic indicators, which are not yet reflected in the historical loss ratios, and that could impact the Company's specific loan portfolios. The Allowance for Loan Loss Committee sets and adjusts qualitative loss factors by regularly reviewing changes in underlying loan composition and the seasonality of specific portfolios. The Allowance for Loan Loss Committee also considers credit quality and trends relating to delinquency, non-performing and adversely rated loans within the Company's loan portfolio when evaluating qualitative loss factors. Additionally, the Allowance for Loan Loss Committee adjusts qualitative factors to account for the potential impact of external economic factors, including the unemployment rate, vacancy and capitalization rates and other pertinent economic data specific to our primary market area and lending portfolios. For the specific component, the allowance for loan losses includes loans where management has concerns about the borrower's ability to repay and on individually analyzed loans found to be impaired. Management evaluates current information and events regarding a borrower's ability to repay its obligations and considers a loan to be impaired when the ultimate collectability of amounts due, according to the contractual terms of the loan agreement, is in doubt. If an impaired loan is collateral-dependent, the fair value of the collateral, less the estimated cost to sell, is used to determine the amount of impairment. If an impaired loan is not collateral-dependent, the impairment amount is determined using the negative difference, if any, between the estimated discounted cash flows and the loan amount due. For impaired loans, the amount of the impairment can be adjusted, based on current data, until such time as the actual basis is established by acquisition of the collateral or until the basis is collected. Impairment losses are reflected in the allowance for loan losses through a charge to the provision for credit losses. Subsequent recoveries are credited to the allowance for loan losses. Cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. As a result, the Company does not separately identify consumer real estate loans less than $417 or individual consumer non-real estate secured loans for impairment disclosures. The Company considers these loans to be homogeneous in nature due to the smaller dollar amount and the similar underwriting criteria. A loan that has been modified is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. Modifications to loan terms may include a modification of the contractual interest rate to a below-market rate (even if the modified rate is higher than the original rate), forgiveness of accrued interest, forgiveness of a portion of principal, an extended repayment period or a deed in lieu of foreclosure or other transfer of assets other than cash to fully or partially satisfy a debt. The Company's policy is to place all TDRs on nonaccrual for a minimum period of six months . Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months and the collection of principal and interest under the revised terms is deemed probable. All TDRs are considered to be impaired loans. FHLB stock and other restricted securities: FHLB, FRB and other restricted stock is carried at cost, classified as restricted securities and periodically evaluated for impairment based on the ultimate recoverability of the par value. Both cash and stock dividends are reported as interest income. Bank-Owned Life Insurance : The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from 10 to 30 years. Furniture, fixtures and equipment are generally depreciated using the straight-line method with useful lives ranging from 3 to 7 years. The cost of leasehold improvements is amortized over the shorter of the lease term or useful life using the straight-line method. Goodwill : Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. According to ASC 350-20, "Intangibles- Goodwill and Other", goodwill shall be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. Deterioration in economic market conditions, changes in key personnel, increased estimates of the effects of recent regulatory or legislative changes, or additional regulatory or legislative changes may result in declines in projected business performance beyond management's current expectations. Such declines in business performance could cause the estimated fair value of goodwill to decline, which could result in an impairment charge to earnings in a future period related to goodwill. The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount, in accordance with ASC 350-20. During 2016, the Company changed its annual goodwill impairment testing date from December 31 to October 1. The Company believes that this new date is preferable as it provides additional time prior to the Company’s year-end to complete the annual goodwill impairment test, especially in the event of future acquisitions and growth. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the two-step test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualified method, that the fair value is more likely than not less than the carrying amount, the Company uses the two-step test. Under the two-step test, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two of the goodwill impairment test compares the implied estimated fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for that reporting unit exceeds the implied fair value of that unit's goodwill, an impairment loss is recognized in an amount equal to that excess. Additional information regarding goodwill and impairment testing can be found in Note 9 - Goodwill and Core Deposit Intangibles . Identifiable Intangibles : Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets relate to core deposits and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Foreclosed Assets : Assets acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or the fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Derivative Financial Instruments : The Company enters into the following derivative financial instruments: interest rate lock commitments, forward mortgage-backed securities trades and interest rate swaps and caps. These financial instruments are not designated as hedging instruments and are used for asset and liability management and commercial customers' financing needs. All derivatives are carried at fair value in either other assets or other liabilities. For additional information on derivative financial instruments, see Note 7 — Derivative Financial Instruments . Fair Value of Financial Instruments : In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Fair value measurements and disclosures guidance establishes a three-level fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. For additional information on fair value measurements see Note 6 - Fair Value . Repurchase/Resell Agreements: The Company sells certain securities under agreements to repurchase. The securities sold under these agreements are treated as collateralized borrowings and are recorded at amounts equal to the cash received. The contractual terms of the agreements to repurchase may require the Company to provide additional collateral if the fair value of the securities underlying the borrowings declines during the term of the agreement. Brokerage Fee Income : Acting as an agent, the Company generates brokerage income by buying and selling securities on behalf of its customers through an independent third party and earning fees on the transactions. These fees are recorded on the trade date. Advertising Expense : The Company expenses all advertising costs as they are incurred. Advertising expenses were $3,861 , $3,773 , and $1,535 in 2016, 2015, and 2014, respectively. Share-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance-based vesting conditions, compensation cost is recognized when the achievement of the performance condition is considered probable of achievement. If a performance condition is subsequently determined to be improbable of achievement, compensation cost is reversed. Retirement Plans: Employee 401(k) and profit sharing plan expense is the amount of matching contributions as determined by formula. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company did not have any material uncertain tax positions which would require accrual at December 31, 2016 or 2015 . The Company recognizes interest and/or penalties related to income tax matters in income tax expense and did not have any amounts accrued for interest and penalties for the years ended December 31, 2016 or 2015 . The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. Earnings per common share : The Company calculated earnings per common share in accordance with ASC 260, “Earnings Per Share,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has determined that its outstanding non-vested stock awards are participating securities. Accordingly, earnings per common share is computed using the two-class method prescribed under ASC 260. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 3 — Earnings Per Common Share . Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, net of taxes, which are also recognized as a separate component of equity. Employee stock ownership plan (ESOP) : The Company accounts for its ESOP in accordance with ASC 718-40, "Employee Stock Ownership Plans." Accordingly, since the Company sponsors the ESOP with an employer loan, neither the ESOP’s loan payable nor the Company’s loan receivable are reported in the Company’s consolidated balance sheet. Likewise, the Company does not recognize interest income or interest cost on the loan. Unallocated shares held by the ESOP are recorded as unearned ESOP shares in the consolidated statement of changes in shareholders’ equity. As shares are committed to be released for allocation, the Company recognizes compensation expense equal to the average market price of the shares for the period. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce principal and accrued interest payable on the ESOP loan. Dividend Restriction : Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or |
SHARE TRANSACTIONS
SHARE TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHARE TRANSACTIONS | Share Transactions On August 22, 2012 , the Company announced its intention to repurchase up to 5% of its total common shares outstanding, or approximately 1,978,871 shares. The stock repurchase program, which is open-ended, allows the Company to repurchase its shares from time to time in the open market and in negotiated transactions, depending upon market conditions. The Board of Directors of the Company also authorized management to enter into a trading plan with Sandler O'Neill & Partners, LP in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Act”), to facilitate repurchases of its common stock pursuant to the above mentioned stock repurchase program (the “Rule 10b5-1 plan”). Stock repurchases under this program were suspended in November 2013 as a result of the Company's announced acquisition of LegacyTexas Group, Inc., which automatically triggered termination of the 10b5-1 plan. At the time the stock repurchase program was suspended, 83,800 shares were repurchased during 2013 at a weighted average price per share of $18.55 . Upon completion of the acquisition of LegacyTexas Group, Inc. on January 1, 2015, the Company entered into a new trading plan with Sandler O’Neill & Partners, LP to facilitate repurchases of its common stock pursuant to the above mentioned stock repurchase program. During 2015, 357,950 shares were repurchased and retired at an average price of $22.32 . On March 1, 2016, the Company announced the resumption of the above mentioned stock repurchase program and again entered into a new 10b5-1 plan with Sandler O’Neill & Partners, LP. No shares of Company stock were repurchased under this program in 2016 , and 1,537,121 shares remain available for future repurchases under the program. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | Note 3 — Earnings Per Common Share Basic earnings per common share is computed by dividing net income (which has been adjusted for distributed and undistributed earnings to participating securities) by the weighted-average number of common shares outstanding for the period, reduced for average unallocated ESOP shares and average unvested restricted stock awards. Unvested share-based awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method described in ASC 260-10-45-60B. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock (such as stock awards and options) were exercised or converted to common stock, or resulted in the issuance of common stock that then shared in the Company’s earnings. Diluted earnings per common share is computed by dividing net income by the weighted-average number of common shares outstanding for the period increased for the dilutive effect of unexercised stock options and unvested restricted stock awards. The dilutive effect of the unexercised stock options and unvested restricted stock awards is calculated under the treasury stock method utilizing the average market value of the Company’s stock for the period. A reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation for the years ended December 31, 2016 , 2015 and 2014 is as follows: Years Ended December 31, 2016 2015 2014 Basic earnings per share: Numerator: Net income $ 97,821 $ 70,916 $ 31,278 Distributed and undistributed earnings to participating securities (497 ) (534 ) (336 ) Income available to common shareholders $ 97,324 $ 70,382 $ 30,942 Denominator: Weighted average common shares outstanding 47,721,179 47,659,389 39,979,853 Less: Average unallocated ESOP shares (1,301,356 ) (1,464,324 ) (1,648,518 ) Average unvested restricted stock awards (235,749 ) (347,781 ) (412,270 ) Average shares for basic earnings per share 46,184,074 45,847,284 37,919,065 Basic earnings per common share $ 2.11 $ 1.54 $ 0.82 Diluted earnings per share: Numerator: Income available to common shareholders $ 97,324 $ 70,382 $ 30,942 Denominator: Average shares for basic earnings per share 46,184,074 45,847,284 37,919,065 Dilutive effect of share-based compensation plan 300,893 278,163 243,029 Average shares for diluted earnings per share 46,484,967 46,125,447 38,162,094 Diluted earnings per common share $ 2.09 $ 1.53 $ 0.81 Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were therefore anti-dilutive 1,384,784 1,012,771 412,706 |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | Securities The amortized cost, related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss), and the fair value of securities available for sale were as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency residential mortgage-backed securities 1 $ 220,744 $ 635 $ 2,828 $ 218,551 Agency commercial mortgage-backed securities 1 9,422 — 75 9,347 Agency residential collateralized mortgage obligations 1 87,959 22 1,452 86,529 US government and agency securities 2,150 101 — 2,251 Municipal bonds 38,417 47 627 37,837 Total securities $ 358,692 $ 805 $ 4,982 $ 354,515 December 31, 2015 Agency residential mortgage-backed securities 1 $ 224,582 $ 841 $ 1,575 $ 223,848 Agency commercial mortgage-backed securities 1 9,483 — 66 9,417 Agency residential collateralized mortgage obligations 1 22,430 26 142 22,314 US government and agency securities 14,906 148 — 15,054 Municipal bonds 40,512 637 74 41,075 Total securities $ 311,913 $ 1,652 $ 1,857 $ 311,708 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. The amortized cost (carrying amount), unrealized gains and losses, and fair value of securities held to maturity were as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency residential mortgage-backed securities 1 $ 74,881 $ 1,147 $ 817 $ 75,211 Agency commercial mortgage-backed securities 1 28,023 836 166 28,693 Agency residential collateralized mortgage obligations 1 40,707 697 33 41,371 Municipal bonds 66,776 1,635 705 67,706 Total securities $ 210,387 $ 4,315 $ 1,721 $ 212,981 December 31, 2015 Agency residential mortgage-backed securities 1 $ 87,935 $ 1,837 $ 284 $ 89,488 Agency commercial mortgage-backed securities 1 24,848 913 64 25,697 Agency residential collateralized mortgage obligations 1 59,174 1,087 55 60,206 Municipal bonds 68,476 3,447 112 71,811 Total securities $ 240,433 $ 7,284 $ 515 $ 247,202 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. The amortized cost (carrying amount) and fair value of held to maturity debt securities and the fair value of available for sale debt securities at December 31, 2016 by contractual maturity are set forth below in the table below. Securities with contractual payments not due at a single maturity date, including mortgage backed securities and collateralized mortgage obligations, are shown separately. Held to maturity Available for sale Carrying Amount Fair Value Fair Value Due in one year or less $ 1,952 $ 1,965 $ 2,159 Due after one to five years 9,035 9,293 11,909 Due after five to ten years 48,327 49,226 17,648 Due after ten years 7,462 7,222 8,372 Agency residential mortgage-backed securities 74,881 75,211 218,551 Agency commercial mortgage-backed securities 28,023 28,693 9,347 Agency residential collateralized mortgage obligations 40,707 41,371 86,529 Total $ 210,387 $ 212,981 $ 354,515 Securities with a carrying value of $224,674 and $280,629 at December 31, 2016 and 2015 , respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law. At December 31, 2016 and 2015 , there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies or U.S. Government Sponsored Enterprises, in an amount greater than 10% of shareholders’ equity. Sales activity of securities for the years ended December 31, 2016 , 2015 and 2014 was as follows. All securities sold were classified as available for sale. December 31, 2016 2015 2014 Proceeds $ 7,700 $ 36,984 $ — Gross gains 72 278 — Gross losses 7 50 — Tax expense of securities gains/losses reclassified from accumulated other comprehensive income 23 80 — Securities with unrealized losses at December 31, 2016 and 2015 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: AFS Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency residential mortgage-backed securities 1 $ 167,503 $ 2,770 $ 7,516 $ 58 $ 175,019 $ 2,828 Agency commercial mortgage-backed securities 1 9,347 75 — — 9,347 75 Agency residential collateralized mortgage obligations 1 72,822 1,420 2,649 32 75,471 1,452 Municipal bonds 26,911 512 3,412 115 30,323 627 Total temporarily impaired $ 276,583 $ 4,777 $ 13,577 $ 205 $ 290,160 $ 4,982 December 31, 2015 Agency residential mortgage-backed securities 1 $ 158,172 $ 1,353 $ 10,474 $ 222 $ 168,646 $ 1,575 Agency commercial mortgage-backed securities 1 9,417 66 — — 9,417 66 Agency residential collateralized mortgage obligations 1 13,517 81 6,992 61 20,509 142 Municipal bonds 7,249 74 — — 7,249 74 Total temporarily impaired $ 188,355 $ 1,574 $ 17,466 $ 283 $ 205,821 $ 1,857 HTM Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency residential mortgage-backed securities 1 $ 41,375 $ 817 $ — $ — $ 41,375 $ 817 Agency commercial mortgage-backed securities 1 7,273 166 — — 7,273 166 Agency residential collateralized mortgage obligations 1 6,322 11 1,451 22 7,773 33 Municipal bonds 19,362 658 1,045 47 20,407 705 Total temporarily impaired $ 74,332 $ 1,652 $ 2,496 $ 69 $ 76,828 $ 1,721 December 31, 2015 Agency residential mortgage-backed securities 1 $ 41,935 $ 284 $ — $ — $ 41,935 $ 284 Agency commercial mortgage-backed securities 1 3,805 64 — — 3,805 64 Agency residential collateralized mortgage obligations 1 3,714 6 3,060 49 6,774 55 Municipal bonds 1,638 10 6,369 102 8,007 112 Total temporarily impaired $ 51,092 $ 364 $ 9,429 $ 151 $ 60,521 $ 515 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. As of December 31, 2016 , 241 securities had unrealized losses, 21 of which had been in an unrealized loss position for over 12 months at December 31, 2016 . The Company does not believe these unrealized losses are other-than-temporary and at December 31, 2016 had the intent and ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. All principal and interest payments are being received on time and in full. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
LOANS | Loans Loans consist of the following: December 31, 2016 December 31, 2015 Loans held for sale $ 21,279 $ 22,535 Loans held for investment: Commercial real estate $ 2,670,455 $ 2,177,543 Commercial and industrial 1,971,160 1,612,669 Construction and land 294,894 269,708 Consumer real estate 1,074,923 936,757 Other consumer 53,991 69,830 Gross loans held for investment, excluding Warehouse Purchase Program 6,065,423 5,066,507 Net of: Deferred fees and discounts, net (2,251 ) (1,860 ) Allowance for loan losses (64,576 ) (47,093 ) Net loans held for investment, excluding Warehouse Purchase Program 5,998,596 5,017,554 Warehouse Purchase Program 1,055,341 1,043,719 Total loans held for investment $ 7,053,937 $ 6,061,273 Activity in the allowance for loan losses for the years ended December 31, 2016 , 2015 and 2014 , segregated by portfolio segment and evaluation for impairment, is set forth below. The below activity does not include Warehouse Purchase Program loans, which are collectively evaluated for impairment and are purchased under several contractual requirements, providing safeguards to the Company. To date, the Company has not experienced a loss on these loans and no allowance for loan losses has been allocated to them. At December 31, 2016 , 2015 and 2014 , the allowance for loan impairment related to purchased credit impaired ("PCI") loans totaled $180 , $150 , and $180 , respectively. December 31, 2016 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2016 $ 14,123 $ 24,975 $ 3,013 $ 3,992 $ 990 $ 47,093 Charge-offs (79 ) (7,746 ) — (107 ) (927 ) (8,859 ) Recoveries 21 472 — 109 340 942 Provision expense 4,238 17,763 2,062 490 847 25,400 Ending balance - December 31, 2016 $ 18,303 $ 35,464 $ 5,075 $ 4,484 $ 1,250 $ 64,576 Allowance ending balance: Individually evaluated for impairment $ 300 $ 4,521 $ — $ 138 $ 52 $ 5,011 Collectively evaluated for impairment 18,003 30,943 5,075 4,346 1,198 59,565 Loans: Individually evaluated for impairment 5,195 86,664 11,385 3,300 75 106,619 Collectively evaluated for impairment 2,659,644 1,884,263 283,509 1,070,732 53,683 5,951,831 PCI loans 5,616 233 — 891 233 6,973 Ending balance $ 2,670,455 $ 1,971,160 $ 294,894 $ 1,074,923 $ 53,991 $ 6,065,423 December 31, 2015 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2015 $ 11,830 $ 9,068 $ 174 $ 4,069 $ 408 $ 25,549 Charge-offs (167 ) (3,129 ) — (321 ) (1,090 ) (4,707 ) Recoveries 29 246 — 85 426 786 Provision expense 2,431 18,790 2,839 159 1,246 25,465 Ending balance - December 31, 2015 $ 14,123 $ 24,975 $ 3,013 $ 3,992 $ 990 $ 47,093 Allowance ending balance: Individually evaluated for impairment $ 366 $ 1,470 $ — $ 81 $ 61 $ 1,978 Collectively evaluated for impairment 13,757 23,505 3,013 3,911 929 45,115 Loans: Individually evaluated for impairment 11,580 16,906 33 4,767 120 33,406 Collectively evaluated for impairment 2,155,351 1,595,548 269,675 931,140 69,433 5,021,147 PCI loans 10,612 215 — 850 277 11,954 Ending balance $ 2,177,543 $ 1,612,669 $ 269,708 $ 936,757 $ 69,830 $ 5,066,507 December 31, 2014 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2014 $ 10,944 $ 4,536 $ 212 $ 3,280 $ 386 $ 19,358 Charge-offs — (568 ) (51 ) (237 ) (605 ) (1,461 ) Recoveries 435 94 1 38 363 931 Provision expense 451 5,006 12 988 264 6,721 Ending balance - December 31, 2014 $ 11,830 $ 9,068 $ 174 $ 4,069 $ 408 $ 25,549 Allowance ending balance: Individually evaluated for impairment $ 826 $ 1,840 $ — $ 223 $ 6 $ 2,895 Collectively evaluated for impairment 11,004 7,228 174 3,846 402 22,654 Loans: Individually evaluated for impairment 7,405 5,929 103 5,607 284 19,328 Collectively evaluated for impairment 1,253,336 775,699 21,195 517,492 40,042 2,607,764 PCI loans 5,127 196 — 1,100 165 6,588 Ending balance $ 1,265,868 $ 781,824 $ 21,298 $ 524,199 $ 40,491 $ 2,633,680 Changes in the allowance for off-balance sheet credit losses on lending-related commitments, included in "accrued expenses and other liabilities" on the consolidated balance sheets, are summarized in the following table. Please see Note 17 - Commitments and Contingent Liabilities for more information. Year Ended December 31, 2016 Balance at beginning of period $ — Charge-offs on lending-related commitments — Provision for credit losses on lending-related commitments 1,500 Balance at end of period $ 1,500 Impaired loans at December 31, 2016 and 2015 , were as follows 1 : December 31, 2016 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial real estate $ 5,388 $ 4,429 $ 766 $ 5,195 $ 272 Commercial and industrial 87,756 73,377 13,287 86,664 4,519 Construction and land 11,384 11,385 — 11,385 — Consumer real estate 3,766 3,290 10 3,300 10 Other consumer 107 33 42 75 30 Total $ 108,401 $ 92,514 $ 14,105 $ 106,619 $ 4,831 December 31, 2015 Commercial real estate $ 11,682 $ 10,618 $ 962 $ 11,580 $ 303 Commercial and industrial 18,649 13,894 3,012 16,906 1,467 Construction and land 38 33 — 33 — Consumer real estate 5,327 4,754 13 4,767 13 Other consumer 199 49 71 120 45 Total $ 35,895 $ 29,348 $ 4,058 $ 33,406 $ 1,828 1 No Warehouse Purchase Program loans were impaired at December 31, 2016 or 2015 . Loans reported do not include PCI loans. Income on impaired loans at December 31, 2016 , 2015 and 2014 , was as follows 1 December 31, 2016 December 31, 2015 December 31, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate $ 5,240 $ 9 $ 8,178 $ 24 $ 8,128 $ 23 Commercial and industrial 28,634 1 19,595 8 6,119 11 Construction and land 901 — 84 — 54 — Consumer real estate 4,831 14 5,269 7 5,008 26 Other consumer 95 4 202 2 433 5 Total $ 39,701 $ 28 $ 33,328 $ 41 $ 19,742 $ 65 1 Loans reported do not include PCI loans. Loans past due over 90 days that were still accruing interest totaled $141 and $111 at December 31, 2016 and 2015 , which consisted entirely of PCI loans. At December 31, 2016 , no PCI loans were considered non-performing loans. No Warehouse Purchase Program loans were non-performing at December 31, 2016 or 2015 . Non-performing (nonaccrual) loans were as follows: December 31, 2016 2015 Commercial real estate $ 5,195 $ 11,418 Commercial and industrial 86,664 16,877 Construction and land 11,385 33 Consumer real estate 7,987 9,781 Other consumer 158 107 Total $ 111,389 $ 38,216 For the years ended December 31, 2016 , 2015 and 2014 , gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to $1,746 , $1,594 and $1,192 , respectively. No interest income was recorded on these loans for the years ended December 31, 2016 , 2015 and 2014 . The outstanding balances of TDRs are shown below: December 31, 2016 2015 Nonaccrual TDRs (1) $ 11,701 $ 6,207 Performing TDRs (2) 454 605 Total $ 12,155 $ 6,812 Specific reserves on TDRs $ 1,686 $ 487 Outstanding commitments to lend additional funds to borrowers with TDR loans — — 1 Nonaccrual TDR loans are included in the nonaccrual loan totals. 2 Performing TDR loans are loans that have been performing under the restructured terms for at least six months and the Company is accruing interest on these loans. The following table provides the recorded balances of loans modified as a TDR during the years ended December 31, 2016 , 2015 and 2014 . December 31, 2016 Principal Deferrals 1 Combination of Rate Reduction & Principal Deferral Other Total Commercial and industrial $ 685 $ — $ 7,090 (2) $ 7,775 Consumer real estate — 79 — 79 Other consumer 1 — — 1 Total $ 686 $ 79 $ 7,090 $ 7,855 December 31, 2015 Commercial real estate $ 100 $ — $ — $ 100 Commercial and industrial — — 191 191 Consumer real estate 209 60 36 305 Other consumer 1 — 3 4 Total $ 310 $ 60 $ 230 $ 600 December 31, 2014 Commercial and industrial $ 28 $ — $ 1,750 $ 1,778 Construction and land — — 102 102 Consumer real estate 197 262 461 920 Other consumer 11 6 — 17 Total $ 236 $ 268 $ 2,313 $ 2,817 1 Principal deferrals include Chapter 7 bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. Such loans are placed on non-accrual status. 2 Includes a $6.2 million reserve-based energy relationship; the primary modification to this relationship was suspension of required borrowing base payments. Loans modified as a TDR during the years ended December 31, 2016 , 2015 and 2014 , which experienced a subsequent payment default during the periods, are shown below. A payment default is defined as a loan that was 90 days or more past due. Years Ended December 31, 2016 2015 2014 Consumer real estate $ 31 $ 178 $ 107 Loans acquired with evidence of credit quality deterioration at acquisition, for which it was probable that the Company would not be able to collect all contractual amounts due, were accounted for as PCI loans. The carrying amount of PCI loans included in the consolidated balance sheets and the related outstanding balances at December 31, 2016 and 2015 are set forth in the table below. The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off. December 31, 2016 2015 Carrying amount 1 $ 6,793 $ 11,804 Outstanding balance 7,597 13,053 1 The carrying amounts are reported net of allowance for loan losses of $180 and $150 as of December 31, 2016 and 2015 . Changes in the accretable yield for PCI loans for the years ended December 31, 2016 and 2015 , are as follows: December 31, 2016 2015 Balance at beginning of period $ 3,356 $ 2,100 Additions — 1,907 Reclassifications (to) from nonaccretable 429 1,754 Disposals (359 ) (1,007 ) Accretion (911 ) (1,398 ) Balance at end of period $ 2,515 $ 3,356 Below is an analysis of the age of recorded investment in loans that were past due at December 31, 2016 and 2015 . No Warehouse Purchase Program loans were delinquent at December 31, 2016 or 2015 and therefore are not included in the following table. December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due Total Loans Past Due Current Loans 1 Total Loans Commercial real estate $ 1,829 $ 72 $ 766 $ 2,667 $ 2,667,788 $ 2,670,455 Commercial and industrial 20,910 495 46 21,451 1,949,709 1,971,160 Construction and land 19,517 283 — 19,800 275,094 294,894 Consumer real estate 10,487 1,916 1,199 13,602 1,061,321 1,074,923 Other consumer 1,523 31 6 1,560 52,431 53,991 Total $ 54,266 $ 2,797 $ 2,017 $ 59,080 $ 6,006,343 $ 6,065,423 December 31, 2015 Commercial real estate $ 16 $ 176 $ 10,269 $ 10,461 $ 2,167,082 $ 2,177,543 Commercial and industrial 884 670 12,255 13,809 1,598,860 1,612,669 Construction and land 623 — — 623 269,085 269,708 Consumer real estate 10,880 2,463 3,458 16,801 919,956 936,757 Other consumer 463 37 — 500 69,330 69,830 Total $ 12,866 $ 3,346 $ 25,982 $ 42,194 $ 5,024,313 $ 5,066,507 1 Includes acquired PCI loans with a total carrying value of $6,729 and $11,328 at December 31, 2016 and 2015 , respectively. The recorded investment in loans by credit quality indicators at December 31, 2016 and 2015 , was as follows. Real Estate and Commercial and Industrial Credit Exposure Credit Risk Profile by Internally Assigned Grade December 31, 2016 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Grade: 1 Pass $ 2,648,842 $ 1,712,171 $ 283,423 $ 1,062,549 Special Mention 7,972 155,110 — 2,083 Substandard 12,875 103,815 11,471 8,252 Doubtful 766 64 — 2,039 Total $ 2,670,455 $ 1,971,160 $ 294,894 $ 1,074,923 December 31, 2015 Grade: 1 Pass $ 2,135,539 $ 1,460,725 $ 269,582 $ 920,519 Special Mention 13,633 92,048 — 3,327 Substandard 27,572 59,835 93 9,606 Doubtful 799 61 33 3,305 Total $ 2,177,543 $ 1,612,669 $ 269,708 $ 936,757 1 PCI loans are included in the substandard or doubtful categories for December 31, 2016 and 2015 , respectively. These categories are generally consistent with the "substandard" and "doubtful" categories as defined by regulatory authorities. Warehouse Purchase Program Credit Exposure All Warehouse Purchase Program loans were graded pass as of December 31, 2016 and 2015 . Consumer Other Credit Exposure Credit Risk Profile Based on Payment Activity December 31, 2016 December 31, 2015 Performing $ 53,833 $ 69,723 Non-performing 158 107 Total $ 53,991 $ 69,830 |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | Note 6 - Fair Value ASC 820, “Fair Value Measurements and Disclosures”, establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Prices or valuation techniques that require inputs that are both significant and unobservable in the market. These instruments are valued using the best information available, some of which is internally developed, and reflects a reporting entity’s own assumptions about the risk premiums that market participants would generally require and the assumptions they would use. Assets and Liabilities Measured on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements Using Level 2 December 31, 2016 December 31, 2015 Assets: Agency residential mortgage-backed securities $ 218,551 $ 223,848 Agency commercial mortgage-backed securities 9,347 9,417 Agency residential collateralized mortgage obligations 86,529 22,314 US government and agency securities 2,251 15,054 Municipal bonds 37,837 41,075 Total securities available for sale $ 354,515 $ 311,708 Loans held for sale 1 $ 21,279 $ 22,535 Derivative financial instruments: Interest rate lock commitments 379 421 Forward mortgage-backed securities trades 36 15 Loan customer counterparty — 260 Financial institution counterparty 1,369 — Liabilities: Derivative financial instruments: Interest rate lock commitments — — Forward mortgage-backed securities trades 80 29 Loan customer counterparty 1,369 — Financial institution counterparty — 260 1 At December 31, 2016 and 2015 , loans held for sale had an aggregate outstanding principal balance of $20,946 and $21,851 . There were no mortgage loans held for sale that were 90 days or greater past due or on non-accrual at December 31, 2016 . The following methodologies were used to measure the fair value of financial assets and liabilities valued on a recurring basis: Securities available for sale - The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). Residential mortgage loans held for sale - Mortgage loans held for sale, which are sold on a servicing released basis, are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted to credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. Interest income on mortgage loans held for sale is recognized based on the contractual rates and reflected in interest income on loans held for sale in the consolidated income statement. The Company has no continuing involvement in any residential mortgage loans sold. Derivative instruments - The Company enters into a variety of derivative instruments as part of its hedging strategy and measures these instruments at fair value on a recurring basis in the balance sheet. The majority of these derivatives are forward mortgage-backed securities and are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilized the exchange price or dealer market price for the particular derivative contract; therefore these contracts are classified as Level 2. In addition, the Company enters into interest rate lock commitments ("IRLCs") with prospective borrowers. These commitments are carried at fair value based on the fair value of the underlying mortgage loans which are based on observable market data. The Company adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on market observable inputs. The Company also enters into certain interest rate derivative positions that are not designated as hedging instruments. The estimated fair value of these commercial loan interest rate swaps are obtained from a pricing service that provides the swaps' unwind value (Level 2 inputs). Please see Note 7 — Derivative Financial Instruments for more information. Assets and Liabilities Measured on a Non-Recurring Basis Assets measured at fair value on a non-recurring basis are summarized below. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2016 or 2015 . Fair Value Measurements Using Level 3 December 31, 2016 December 31, 2015 Assets: Impaired loans $ 9,274 $ 2,230 Foreclosed assets: Commercial real estate 10,638 4,784 Construction and land 194 1,802 Consumer real estate — 106 Other 6 — Methodologies used to measure the fair value of financial assets and liabilities valued on a non-recurring basis are shown below: Impaired loans - Impaired loans that are collateral dependent are measured for impairment using the fair value of the collateral adjusted by additional Level 3 inputs, such as discounts of market value, estimated marketing costs and estimated legal expenses. Impaired loans secured by real estate, receivables or inventory had discounts determined by management on an individual loan basis. Impaired loans that are not collateral dependent are measured for impairment by a discounted cash flow analysis using a net present value calculation that utilizes data from the loan file before and after the modification. Foreclosed assets - These assets are measured at the lower of book or fair value less costs to sell using third party appraisals, listing agreements or sale contracts, which may be adjusted by additional Level 3 inputs, such as discounts of market value, estimated marketing costs and estimated legal expenses. Management may also consider additional adjustments on specific properties due to the age of the appraisal, expected holding period, lack of comparable sales, or if the other real estate owned is a special use property. At December 31, 2016 , the Company had $92 in residential mortgage loans in the process of foreclosure. The Credit Risk Management department evaluates the valuations on impaired loans and foreclosed assets at least quarterly. The valuations on impaired loans are reviewed at least quarterly by the Allowance for Loan Loss Committee and are considered in the calculation of the allowance for loan losses. Unobservable inputs, such as discounts to collateral, are monitored and adjusted if market conditions change. Fair Value of Financial Instruments Not Recorded at Fair Value The carrying amount and fair value information of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company's consolidated balance sheets at December 31, 2016 and 2015 , were as follows: Fair Value December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 289,212 $ 289,212 $ — $ — Securities held to maturity 210,387 — 212,981 — Loans held for investment, net 5,998,596 — — 6,080,165 Loans held for investment - Warehouse Purchase Program 1,055,341 — — 1,055,219 FHLB and other restricted securities, at cost 43,266 — 43,266 — Accrued interest receivable 20,347 20,347 — — Financial liabilities Deposits $ 6,365,476 $ — $ — $ 5,989,933 FHLB advances 833,682 — — 830,930 Repurchase agreements 86,691 — — 84,265 Subordinated debt 134,032 — — 121,743 Accrued interest payable 2,111 2,111 — — December 31, 2015 Financial assets Cash and cash equivalents $ 615,639 $ 615,639 $ — $ — Securities held to maturity 240,433 — 247,202 — Loans held for investment, net 5,017,554 — — 5,083,093 Loans held for investment - Warehouse Purchase Program 1,043,719 — — 1,042,434 FHLB and other restricted securities, at cost 63,075 — 63,075 — Accrued interest receivable 17,109 17,109 — — Financial liabilities Deposits $ 5,226,711 $ — $ — $ 4,920,648 FHLB advances 1,439,904 — — 1,433,125 Repurchase agreement 83,269 — — 81,956 Subordinated debt 84,992 — — 85,771 Accrued interest payable 1,653 1,653 — — The following methods and assumptions were used to estimate the fair values of each class of financial instrument presented: Cash and cash equivalents - Due to their short term nature, the carrying amount approximates the estimated fair value. Securities held to maturity - The fair values of these securities is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). Loans held for investment (including Warehouse Purchase Program loans) - Fair value is based on discounted cash flows using current market offering rates, estimated life, and applicable credit risk. FHLB stock and other restricted securities - The fair value on these securities is their cost basis due to restrictions on transferability. Accrued interest receivable - Due to their short term nature, the carrying amount approximates the estimated fair value. Deposits - Fair value is calculated using the FHLB advance curve to discount cash flows based on the estimated life of the deposits. FHLB advances - Fair value is calculated using the FHLB advance curve to discount cash flows based on the contractual repayment schedule. Repurchase agreement - The fair value is based on discounting the estimated cash flows using the current rate at which similar borrowings would be made with similar terms and remaining maturities. Subordinated debt - The estimated fair value is based on current market rates on similar debt in the market. Accrued interest payable - Due to their short term nature, the carrying amount approximates the estimated fair value. The fair value of off-balance sheet items is based on the current fees or costs that would be charged to enter into or terminate such arrangements and are not considered significant to this presentation. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | Note 7 — Derivative Financial Instruments The following table provides the outstanding notional balances and fair values of outstanding derivative positions at December 31, 2016 and 2015 . December 31, 2016 December 31, 2015 Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 10,952 $ 379 $ — $ 12,518 $ 421 $ — Forward mortgage-backed securities trades 18,613 36 80 20,374 15 29 Commercial loan interest rate swaps and caps: Loan customer counterparty 112,294 — 1,369 24,796 $ 260 — Financial institution counterparty 112,294 1,369 — 24,796 — 260 IRLCs - The Company enters into IRLCs with prospective residential mortgage borrowers whereby the interest rate on the loan is determined prior to funding and the borrowers have locked into that interest rate. The estimated fair values of IRLCs are based on the fair value of the related mortgage loan which is based observable market data. The Company adjusts the outstanding IRLCs based on the expectation that it will be exercised and the loan will be funded. Forward mortgage-backed securities trades - To manage the price risk associated with IRLCs, the Company enters into forward sales of mortgage-backed securities in an amount similar to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, the Company enters into forward sales of mortgage-backed securities to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of mortgage-backed securities and forward sale commitments are based on quoted market values. Interest rate swaps and caps - These derivative positions relate to transactions in which we enter into an interest rate swap or cap with a customer, while at the same time entering into an offsetting interest rate swap or cap with another financial institution. An interest rate swap transaction allows our customer to effectively convert a variable rate loan to a fixed rate. In connection with each swap, we agree to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. In connection with each interest rate cap, we sell a cap to the customer and agree to pay interest if the underlying index exceeds the strike price defined in the cap agreement. Simultaneously we purchase a cap with matching terms from another financial institution which agrees to pay us if the underlying index exceeds the strike price. The commercial loan customer counterparty weighted average received and paid interest rates for interest rate swaps outstanding at December 31, 2016 and 2015 are presented in the following table. Weighted-Average Interest Rate December 31, 2016 December 31, 2015 Received Paid Received Paid Loan customer counterparty 3.12 % 2.36 % 5.01 % 3.37 % Our credit exposure on interest rate swaps is limited to the net favorable value of all swaps by each counterparty, which was approximately $118 at December 31, 2016. This credit exposure is partly mitigated as transactions with customers are generally secured by the collateral, if any, securing the underlying transaction being hedged. Our credit exposure, net of collateral pledged, relating to interest rate swaps with upstream financial institution counterparties was approximately $1,335 at December 31, 2016. A credit support annex is in place and allows the bank to call collateral from upstream financial institution counterparties. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. Our cash collateral pledged for interest rate swaps and included in our interest-bearing deposits, which totaled $1,950 and $300 at December 31, 2016 and 2015 respectively, is in excess of our credit exposure. The initial and subsequent changes in the fair value of IRLCs and the forward sales of mortgage-back securities are recorded in net gain on sale of mortgage loans. These gains and losses were not attributable to instrument-specific credit risk. For interest rate swaps and caps, because we act as an intermediary for our customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on our results of operations. Income (loss) for the years ending December 31, 2016 , 2015 and 2014 was as follows: Derivatives not designated as hedging instruments Years Ended December 31, 2016 2015 2014 IRLC's $ (43 ) $ 8 $ — Forward mortgage-backed securities trades 13 (195 ) — |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | Premises and Equipment Premises and equipment were as follows: December 31, 2016 2015 Land $ 23,636 $ 25,546 Buildings 59,298 60,807 Furniture, fixtures and equipment 19,561 18,848 Leasehold improvements 7,674 7,556 110,169 112,757 Less: accumulated depreciation (35,943 ) (35,120 ) Total $ 74,226 $ 77,637 Depreciation expense was $6,186 , $6,550 and $4,047 for 2016 , 2015 and 2014 , respectively. Operating Leases : The Company leases certain bank or loan production office properties and equipment under operating leases. Certain leases contain renewal options that may be exercised. Rent expense was $7,928 , $6,895 and $2,317 for 2016 , 2015 and 2014 , respectively. Rent commitments, before considering applicable renewal options, as of December 31, 2016 , were as follows: Balance 2017 $ 6,218 2018 5,634 2019 4,791 2020 4,424 2021 4,238 Thereafter 20,572 Total $ 45,877 The Company leases office space in certain locations to other unaffiliated tenants. Rental income of $704 was recognized during 2016 . This rental income is recorded in the consolidated statement of income as an offset to occupancy expense. Aggregate future minimum rental payments to be received under non-cancelable subleases at December 31, 2016 , were $1,087 . At December 31, 2016 , the Company had no commitments for future locations and held two parcels of land for future development. The Company sold one of these parcels of land in January 2017, resulting in a gain of $1,304 . |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLES | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLES | Note 9 - Goodwill and Core Deposit Intangibles Goodwill and other intangible assets are presented in the table below. Changes in the carrying amount of the Company's goodwill and core deposit intangibles (“CDI”) for years ended December 31, 2016 and 2015 , were as follows: Goodwill Core Deposit Intangibles Balance as of December 31, 2014 $ 29,650 $ 616 LegacyTexas Group, Inc. acquisition 151,126 880 Amortization of core deposit intangible — (466 ) Balance as of December 31, 2015 180,776 1,030 Disposition of insurance subsidiary goodwill upon the sale of subsidiary operations (2,217 ) — Amortization of core deposit intangible — (365 ) Balance as of December 31, 2016 $ 178,559 $ 665 Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill or other intangibles has occurred. CDI are amortized on an accelerated basis over their estimated lives with a weighted average amortization period of 8 years . The CDI amortization expense is reported in other non-interest expense on the Company's consolidated statements of income. The estimated aggregate future amortization expense for CDI remaining as of December 31, 2016 is as follows: Balance 2017 $ 263 2018 156 2019 101 2020 73 2021 48 Thereafter 24 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
DEPOSITS | Deposits Time deposits of $250 or more totaled $951,688 and $503,719 at December 31, 2016 and 2015 , respectively. The $ 250 FDIC insurance coverage limit applies per depositor, per insured depository institution, for each account ownership category. At December 31, 2016 and 2015 , the Company had $355,455 and $371,692 in reciprocal deposits, respectively. These consisted entirely of certificates of deposit made under the Company's participation in the Certificate of Deposit Account Registry Service® (CDARS®) and Insured Cash Sweep (ICS) money market product. Through CDARS®, the Company can provide a depositor the ability to place up to $50,000 on deposit with the Company while receiving FDIC insurance on the entire deposit by placing customer funds in excess of the FDIC deposit limits with other financial institutions in the CDARS® network. In return, these financial institutions place customer funds with the Company on a reciprocal basis. Similarly, customer funds in our ICS money market product are swept from a transaction account at the Company into money market accounts at multiple banks to allow access to FDIC insurance coverage through multiple accounts, up to $75,000 . Regulators consider reciprocal deposits to be brokered deposits. At December 31, 2016 , scheduled maturities of time deposits for the next five years with the weighted average rate at the end of the period were as follows: Balance Weighted Average Rate 2017 $ 992,786 0.73 % 2018 256,150 0.99 2019 29,019 0.98 2020 22,858 1.39 2021 and thereafter 67,091 1.65 Total $ 1,367,904 0.84 % At December 31, 2016 and 2015 , the Company's deposits included public funds totaling $1,001,820 and $708,723 , respectively. At December 31, 2016 and 2015 , overdrawn deposits of $340 and $1,177 were reclassified as unsecured consumer loans. Interest expense on deposits is summarized as follows: Years Ended December 31, 2016 2015 2014 Interest-bearing demand $ 3,974 $ 3,297 $ 1,653 Savings and money market 7,288 3,644 3,144 Time 9,772 6,186 3,415 Total $ 21,034 $ 13,127 $ 8,212 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | Borrowed Funds Borrowed funds are summarized as follows: December 31, 2016 2015 Amount Rate 1 Amount Rate 1 Federal Home Loan Bank advances $ 833,682 0.71 % $ 1,439,904 0.51 % Repurchase Agreements Credit Suisse structured repurchase agreement 25,000 3.02 25,000 3.22 Overnight repurchase agreements with depositors 61,691 0.15 58,269 0.16 Subordinated Debt Fixed to floating rate note maturing on December 1, 2025 125,000 5.58 75,000 5.50 Junior subordinated debentures 15,464 2.66 15,464 2.21 1 Rate at period-end, with the exception of the fixed to floating rate subordinated debt note, which is a weighted average rate calculated using period-end rates. Federal Home Loan Bank ("FHLB") Advances At December 31, 2016 , advances from the FHLB had interest rates ranging from 0.46% to 6.00% . At December 31, 2015 , advances from the FHLB had interest rates ranging from 0.28% to 6.00% . At December 31, 2016 , the Company had $800,000 in variable rate FHLB advances. In 2010, certain FHLB fixed-rate advances were modified. The early repayment of the debt resulted in a prepayment penalty, which is being amortized to interest expense as an adjustment to the cost of the new FHLB advances. The prepayment penalty, net of accumulated amortization, was $27 and $456 at December 31, 2016 and 2015 . The advances were collateralized by mortgage and commercial loans with FHLB collateral values of $1,877,506 and $1,461,248 under a blanket lien arrangement at December 31, 2016 and 2015 , respectively. Additionally, securities safekept at FHLB and FHLB stock are used as collateral for advances. Based on this collateral, the Company was eligible to borrow an additional $1,821,693 and $1,030,732 at December 31, 2016 and 2015 , respectively. The current agreement provided for a maximum borrowing amount of approximately $3,601,739 and $3,025,653 at December 31, 2016 and 2015 , respectively. Repurchase Agreements Repurchase agreements ("repos") which are classified as securities transactions, are not insured by the FDIC, are not guaranteed, and may lose value. A repo is an agreement between two parties whereby one party (a bank as counterparty) sells the other (as customer) a security at a specified price with a commitment to buy the security back at a fixed time and price. Repos are accounted for as collateralized borrowings and are recorded at amounts equal to cash received. Inherent in repurchase agreements is a risk that the fair value of the collateral pledged on the agreements could decline below the amount obligated under the agreements. To mitigate this risk to the customer, the Company, as the bank counterparty, marks securities sold under repos to fair value on a daily basis and provides 115% market value protection on overnight repos and 112% market value protection on its structured repo. In April 2008, the Company entered into a 10 -year term structured repurchase callable agreement for $25,000 to leverage the balance sheet and increase liquidity. The interest rate adjusts quarterly to 6.25% less the 90 day LIBOR, subject to a lifetime cap of 3.02% . At December 31, 2016 , the Company also had $61,691 in overnight repurchase agreements with depositors. Subordinated Debt In November 2015, the Company issued $75,000 of Fixed-to-Floating Rate Subordinated Notes (the “Notes”) that mature on December 1, 2025 (the “Maturity Date”). In September 2016, the Company issued an additional $50,000 of Notes that mature on the Maturity Date. The Notes, which qualify as Tier 2 capital for regulatory purposes, have an interest rate of 5.50% and 5.69% , respectively, per annum, payable semi-annually on each December 1 and June 1 through December 1, 2020. From and including December 1, 2020 through maturity or earlier redemption, the interest rate will reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 3.89% , payable on March 1, June 1, September 1, and December 1 of each year through the maturity date or earlier redemption. The Company may, at its option, beginning on December 1, 2020 and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. Any partial redemption will be made pro rata among all of the holders. The Notes were sold at an underwriting discount and the discount, as well as debt issuance costs, are netted against the subordinated debt liability on the balance sheet in accordance with ASU 2015-03. The unamortized underwriting discount and debt issuance costs totaled $2,709 at December 31, 2016. The Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Company's subsidiaries. Upon the acquisition of LegacyTexas Group, Inc., the Company acquired $15,000 ( 15,000 shares with a liquidation amount of $1 per security) of Floating Rate Cumulative Trust Preferred Securities ("TruPS") and $464 of common stock through an unconsolidated subsidiary, Legacy Capital Trust III ("Trust III"). Trust III invested the total proceeds from the sale of TruPS and common stock (totaling $15,464 ) in floating rate Junior Subordinated Debentures (the "Trust III Debentures") issued by the Company. The terms of the Trust III Debentures are such that they qualify as Tier I capital for regulatory purposes. Interest on the Trust III Debentures is payable quarterly on March 15, June 15, September 15 and December 15 of each year, at a rate equal to the three month LIBOR rate plus 1.70% ( 2.66% at December 31, 2016 ). Principal is due at maturity on December 15, 2036. The TruPS are guaranteed by the Company and are subject to redemption. The Company may redeem the Trust III Debentures, in whole or in part, on any March 15, June 15, September 15 and December 15 at an amount equal to the principal amount being redeemed plus accrued and unpaid interest to the redemption date. At December 31, 2016 and 2015 , the Trust III Debentures were reduced by a purchase accounting fair value discount of $3,723 and $3,905 , respectively. Also upon the acquisition of LegacyTexas Group, Inc., the Company acquired $15,000 of TruPS and $464 of common stock through an unconsolidated subsidiary. The subsidiary invested the total proceeds from the sale of the TruPS and common stock in floating rate Junior Subordinated Debentures issued by LegacyTexas Group, Inc. On April 7, 2015, the Company paid this debt in full. Other Borrowing Information At December 31, 2016 , borrowed funds, reported gross of purchase accounting fair value discounts, prepayment penalties and debt issuance costs, were structured to contractually pay down as follows: FHLB Advances Repurchase Agreements Subordinated Debt Total 2017 $ 615,546 $ 61,691 $ — $ 677,237 2018 212,754 25,000 — 237,754 2019 2,314 — — 2,314 2020 931 — — 931 2021 856 — — 856 Thereafter 1,308 — 140,464 141,772 $ 833,709 $ 86,691 $ 140,464 $ 1,060,864 Upon the acquisition of LegacyTexas Group, Inc., the Company assumed long-term notes totaling $8,900 . These notes were paid off during the first quarter of 2015. At December 31, 2016 and 2015 , the Company had borrowing availability representing the collateral value assigned to the securities pledged to the discount window through the FRB of $46,725 and $35,632 , respectively. Additionally, uncommitted, unsecured Fed Fund lines of credit totaling $255,000 and $285,000 were available at December 31, 2016 and 2015 , respectively, from multiple correspondent banks. |
BENEFITS
BENEFITS | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
BENEFITS | Benefits Employee Stock Ownership (“ESOP”) and 401(k) Plan : The Company offers a KSOP plan composed of an ESOP and 401(k) plan. Employees may participate under the 401(k) portion of the KSOP as of the date they first complete an hour of service with the Bank. Employees are eligible to receive a matching contribution of 100% of employee contributions up to a maximum of 5% of the employee's qualifying compensation. Matching expense for 2016 , 2015 and 2014 was $2,479 , $2,130 and $1,283 , respectively. The ESOP portion of the KSOP was established in connection with the 2006 minority stock offering. In 2006 the ESOP purchased shares of common stock financed by a term loan from the Company. This note was fully repaid in September 2016, and all shares have been allocated to participant accounts. In 2010, the ESOP purchased 1,588,587 shares of common stock with proceeds from a 30 year note in the amount of $15,886 from the Company. The Company's Board of Directors determines the amount of contribution to the ESOP annually but is required to make contributions sufficient to service the ESOP's debt. Dividends on unallocated shares held by the ESOP are applied to the ESOP note payable. Shares are released for allocation to eligible employees as the ESOP debt is repaid. Eligible employees receive an allocation of released shares at the end of the calendar year on a relative compensation basis. Employees are eligible if they meet the minimum service and eligibility requirements. The dividends paid on allocated shares are paid to employee accounts. Contributions to the ESOP were $1,468 , $2,060 , and $2,060 during 2016 , 2015 and 2014 , and expense was $3,174 , $4,914 and $4,725 for December 31, 2016 , 2015 and 2014 , respectively. Shares held by the ESOP at December 31 are categorized as follows: 2016 2015 Allocated to participants 1,643,294 1,522,883 Unearned 1,245,046 1,365,457 Total ESOP shares 2,888,340 2,888,340 Fair value of unearned shares at December 31 $ 53,612 $ 34,164 Deferred Compensation Plan : The Company has entered into certain non-qualified deferred compensation agreements with members of the executive management team, directors and certain employees. These agreements, which are subject to the rules of section 409(a) of the Internal Revenue Code, relate to the voluntary deferral of compensation received and do not have an employer contribution. The accrued liability as of December 31, 2016 and 2015 was $3,344 and $4,086 , respectively. Included in other assets is a universal life insurance policy, as well as variable and fixed annuity contracts, totaling $3,534 and $4,272 at December 31, 2016 and 2015 , respectively. The Company is the owner and beneficiary of the policy, which pays interest on the funds invested. The life insurance policy is recorded at the net cash surrender value, or the amount that can be realized. Bank-Owned Life Insurance : The Company is the sole owner of life insurance policies pertaining to certain employees and directors. The selected insured employees and directors agreed to a share of the death benefit while they remain actively employed with the Company or serve on its board. In the event of death while actively employed with the Company, the employee's or director's designated beneficiary will receive an income tax free death benefit paid. The Company also is the sole owner of other life insurance policies that do not share the death benefit with the employees. The total balance of the bank-owned life insurance policies, reported as an asset, at December 31, 2016 and 2015 totaled $56,477 and $55,231 . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | Share-based Compensation The Company has shareholder approved share-based compensation plans that are accounted for under ASC 718, Compensation - Stock Compensation , which requires companies to record compensation cost for share-based payment transactions with employees in return for employment service. Under the plans, options to purchase 3,370,040 shares of common stock and 1,348,016 restricted shares of common stock were made available. The plans allow for the Company to grant restricted stock, restricted stock units, stock options and stock appreciation rights to directors, advisory directors, officers and other employees. Shares issued in connection with stock compensation awards are issued from available authorized shares. Compensation cost charged to income for share-based compensation, which is reported in non-interest expense as salaries and employee benefits expense, is presented below: Years ended December 31, 2016 2015 2014 Restricted stock $ 3,477 $ 3,459 $ 2,561 Stock options 2,537 2,018 1,156 Income tax benefit 2,105 1,917 1,301 A summary of activity in the restricted stock portion of the Company's stock plans for 2016 , 2015 and 2014 is presented below: Time-Based Shares Performance-Based Shares Shares Weighted- Average Grant Date Fair Value 1 Shares Weighted- Average Grant Date Fair Value 2 Non-vested at January 1, 2014 381,402 $ 20.39 82,400 $ 27.45 Granted 20,000 24.69 — — Vested (103,799 ) 20.32 — — Non-vested at December 31, 2014 297,603 20.45 82,400 23.89 Granted 80,000 21.23 — — Vested (131,142 ) 19.98 (20,600 ) 23.89 Non-vested at December 31, 2015 246,461 20.98 61,800 25.02 Granted 55,180 29.29 40,200 29.29 Vested (101,465 ) 20.70 (20,600 ) 25.02 Non-vested at December 31, 2016 200,176 $ 23.79 81,400 $ 43.06 1 For restricted stock awards with time-based vesting conditions, the grant date fair value is based upon the closing stock price as quoted on the NASDAQ Stock Market on the grant date. 2 For restricted stock awards with performance-based vesting conditions, the value of the award is based upon the closing stock price as quoted on the NASDAQ Stock Market on the date of vesting. Until the final value is determined on the vesting date, the Company estimates the fair value quarterly based upon the closing stock price as quoted on the NASDAQ Stock Market near the last business day of each calendar quarter end. As of December 31, 2016 , there was $5,398 of total unrecognized compensation expense related to non-vested restricted shares awarded under the Company's stock plans. That expense is expected to be recognized over a weighted-average period of 1.40 years. The total fair value of shares vested during the years ended December 31, 2016 and 2015 , was $2,615 and $3,113 , respectively. Total restricted shares available for future issuance under the plans totaled 64,009 at December 31, 2016 with 1,409,004 shares having been issued under the plans through December 31, 2016 . Under the terms of the plans, stock options may not be granted with an exercise price less than the fair market value of the Company’s common stock on the date the option is granted and may not be exercised later than ten years after the grant date. The fair market value is the closing stock price as quoted on the NASDAQ Stock Market on the date of grant. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. The risk-free interest rate is the implied yield available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of the stock option in effect at the time of the grant. Although the contractual term of the stock options granted is ten years, the expected term of the stock is less because option restrictions do not permit recipients to sell or hedge their options and therefore, we believe, encourage exercise of the options before the end of the contractual term. The expected term of stock options is based on employees' actual vesting behavior and expected volatilities are based on historical volatilities of the Company’s common stock. Expected dividends are the estimated dividend rate over the expected term of the stock options. For awards with performance-based vesting conditions, compensation cost is recognized when the achievement of the performance condition is considered probable of achievement. If a performance condition is subsequently determined to be improbable of achievement, compensation cost is reversed. The weighted average fair value of stock options granted during 2016 , 2015 and 2014 was $7.77 , $6.82 and $7.17 , respectively. The fair value of options granted was determined using the following weighted-average assumptions as of grant date: 2016 2015 2014 Risk-free interest rate 1.37 % 1.80 % 2.16 % Expected term of stock options (years) 6.3 6.2 6.2 Expected stock price volatility 32.07 % 31.14 % 30.96 % Expected dividends 1.93 % 1.95 % 1.84 % A summary of activity in the stock option portion of the Company's share-based compensation plans as of the years ended December 31, 2016 , 2015 and 2014 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2014 1,173,618 $ 18.16 8.4 $ 10,903 Granted 328,750 26.09 10.0 — Exercised (56,035 ) 13.66 — 652 Forfeited (75,460 ) 17.63 — — Outstanding at December 31, 2014 1,370,873 20.27 8.0 5,679 Granted 633,000 25.66 10.0 — Exercised (58,855 ) 16.12 — 644 Forfeited (79,268 ) 20.89 — — Outstanding at December 31, 2015 1,865,750 22.21 7.9 6,401 Granted 392,838 29.15 10.0 — Exercised (175,192 ) 19.08 — 2,251 Forfeited (75,316 ) 25.57 — — Outstanding at December 31, 2016 2,008,080 $ 23.71 7.4 $ 38,850 Fully vested and expected to vest 1,990,524 $ 23.68 7.4 $ 38,585 Exercisable at December 31, 2016 719,156 $ 20.51 6.2 $ 16,218 As of December 31, 2016 , there was $7,091 of total unrecognized compensation expense related to non-vested stock options. That expense is expected to be recognized over a weighted-average period of 2.45 years . At December 31, 2016 , the Company applied an estimated forfeiture rate of 5% based on historical activity. The intrinsic value for stock options is calculated based on the difference between the exercise price of the underlying awards and the market price of our common stock as of the reporting date. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Income Taxes The Company's pre-tax income is subject to federal income tax and state margin tax at a combined rate of 36% for 2016 , 2015 and 2014 . Income tax expense for 2016 , 2015 and 2014 , was as follows: 2016 2015 2014 Current expense $ 59,900 $ 38,648 $ 19,073 Deferred expense (6,798 ) (692 ) (1,414 ) Total income tax expense $ 53,102 $ 37,956 $ 17,659 At December 31, 2016 and 2015 , deferred tax assets and liabilities were due to the following: December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 22,602 $ 16,483 Deferred compensation arrangements 1,261 1,536 Self-funded health insurance 241 203 Non-accrual interest 966 632 Restricted stock and stock options 3,132 2,275 Accrued expenses 1,255 715 Fair value mark on purchased loans 2,348 3,838 Net unrealized loss on securities available for sale 1,465 72 Other 2,121 811 35,391 26,565 Deferred tax liabilities: Depreciation (336 ) (1,011 ) Partnerships — CRA-purposed private equity funds (1,697 ) (1,328 ) Fair value mark on subordinated debt (1,303 ) (1,367 ) Other (2,824 ) (1,819 ) (6,160 ) (5,525 ) Net deferred tax asset $ 29,231 $ 21,040 The net deferred tax asset is recorded on the consolidated balance sheets under “other assets.” Management performed an analysis related to the Company's deferred tax asset for each of the years ended December 31, 2016 and 2015 and, based upon these analyses, no valuation allowance was deemed necessary as of December 31, 2016 or 2015 . Effective tax rates differ from the federal statutory rate of 35% in 2016 , 2015 and 2014 , applied to income before income taxes due to the following: At and for the Year Ended December 31, 2016 2015 2014 Federal statutory rate times financial statement income $ 52,823 $ 38,105 $ 17,128 Effect of: State taxes, net of federal benefit 267 37 66 Tax credit on CRA-purposed private equity fund — — (58 ) Bank-owned life insurance income (436 ) (419 ) (220 ) Municipal interest income (1,041 ) (1,025 ) (772 ) ESOP shares released 757 1,207 1,140 One-time merger expenses — — 381 Sale of LegacyTexas Insurance Services, Inc. 640 — — Other 92 51 (6 ) Total income tax expense $ 53,102 $ 37,956 $ 17,659 Effective Tax Rate 35.18 % 34.86 % 36.09 % The Company files income tax returns in the U.S. federal jurisdiction and several U.S. state jurisdictions. The Company is generally no longer subject to U.S. federal income tax examinations for tax years prior to 2013. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Related Party Transactions Loans to executive officers, directors, and their affiliates during 2016 were as follows: Balance Beginning balance $ 15,365 New loans 21 Effect of changes in composition of related parties — Repayments (49 ) Ending balance $ 15,337 None of the above loans were considered non-performing or potential problem loans. These loans are made in the ordinary course of business and on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. Deposits from executive officers, directors, and their affiliates at December 31, 2016 and 2015 were $48,761 and $44,907 , respectively. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY CAPITAL MATTERS | Regulatory Capital Matters Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off‑balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Bank and the Company are regulated by the Texas Department of Banking ("TDOB") and the Board of Governors of the Federal Reserve System ("FRB"). The ability of a subsidiary bank to pay dividends depends on its earnings and capital levels and may be limited by their regulator's directives or orders. A bank generally must obtain regulatory approval of a dividend if the total dividends declared during the current year, including the proposed dividend, exceed net income for the current year and retained net income for the prior two years. Prompt corrective action regulations provide five classifications: well-capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized, although these terms are not used to represent overall financial condition. If an institution is adequately capitalized, regulatory approval is required to accept brokered deposits. If an institution is undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2016 and 2015 , the most recent regulatory notification categorized the Bank and the Company as well-capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category. Management believes that, at December 31, 2016 , the Bank and the Company met all capital adequacy requirements to which they were subject. Actual Required for Capital Adequacy Purposes To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total risk-based capital the Company $ 910,040 11.71 % $ 621,870 8.00 % $ 777,338 10.00 % the Bank 869,523 11.19 621,840 8.00 777,300 10.00 Tier 1 risk-based capital the Company 721,600 9.28 466,403 6.00 466,403 6.00 the Bank 803,374 10.34 466,380 6.00 621,840 8.00 Common equity tier 1 risk-based capital the Company 709,858 9.13 349,802 4.50 n/a 1 n/a 1 the Bank 803,374 10.34 349,785 4.50 505,245 6.50 Tier 1 leverage the Company 721,600 8.73 330,782 4.00 n/a 1 n/a 1 the Bank 803,374 9.71 330,873 4.00 413,591 5.00 As of December 31, 2015 Total risk-based capital the Company $ 755,689 11.58 % $ 522,107 8.00 % $ 652,634 10.00 % the Bank 691,554 10.60 522,116 8.00 652,645 10.00 Tier 1 risk-based capital the Company 635,162 9.73 391,580 6.00 391,580 6.00 the Bank 644,461 9.87 391,587 6.00 522,116 8.00 Common equity tier 1 risk-based capital the Company 623,604 9.56 293,685 4.50 n/a 1 n/a 1 the Bank 644,461 9.87 293,690 4.50 424,219 6.50 Tier 1 leverage the Company 635,162 9.46 268,430 4.00 n/a 1 n/a 1 the Bank 644,461 9.61 268,273 4.00 335,341 5.00 1 Not applicable |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | Note 17 - Commitments and Contingent Liabilities In the normal course of business, the Company enters into various transactions which, in accordance with US GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit which involve, to varying degrees, elements of credit and interest rate risk. Credit losses up to the face amount of these instruments could occur, although material losses are not anticipated. The Company's credit policies applied to loan originations are also applied to these commitment requests, including obtaining collateral at the exercise of the commitment. The contractual amounts of financial instruments with off‑balance sheet risk at December 31, 2016 and 2015 , are summarized below. Please see Part II-Item 7- "Off-Balance Sheet Arrangements, Contractual Obligation and Commitments" of this Form 10-K for information related to commitment maturities. December 31, 2016 2015 Unused commitments to extend credit $ 1,642,528 $ 1,211,964 Unused capacity on Warehouse Purchase Program loans 892,659 476,281 Standby letters of credit 29,198 18,644 Total unused commitments/capacity $ 2,564,385 $ 1,706,889 Unused commitments to extend credit - The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Since many commitments expire without being drawn upon, the total contractual amount of commitments does not necessarily represent future cash requirements of the Company. Substantially all of the Company's commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. Unused capacity on Warehouse Purchase Program loans - In regard to unused capacity on Warehouse Purchase Program loans, the Company has established maximum purchase facility amounts, but reserves the right, at any time, to refuse to buy any mortgage loans offered for sale by each customer, for any reason in the Company's sole and absolute discretion. Standby letters of credit - Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In addition to the commitments above, the Company guarantees the credit card debt of certain customers to the merchant bank that issues the credit cards. These guarantees are in place for as long as the guaranteed credit card is open. At December 31, 2016 and 2015 , these credit card guarantees totaled $3,335 and $1,028 , respectively. This amount represents the maximum potential amount of future payments under the guarantee, which the Company is responsible for in the event of customer non-payment. In the third quarter of 2016, the Company established an allowance for credit losses on off-balance sheet lending-related commitments through a charge to provision for credit losses on the Company's consolidated statement of income. The establishment of this allowance for credit losses on off-balance sheet lending-related commitments was due to the expansion of the Company's lending business, as well as recent increased diversification of the types of off-balance sheet commitments offered by the Company. At December 31, 2016 , this allowance for credit losses on off-balance sheet lending-related commitments, included in "other liabilities" on the Company's consolidated balance sheets, totaled $1,500 . Because business processes and credit risks associated with unfunded credit commitments are essentially the same as for loans, the company utilizes similar processes to estimate its liability for unfunded credit commitments. In addition to the commitments above, the Company had overdraft protection available in the amounts of $85,709 and $87,077 at December 31, 2016 and 2015 , respectively. The Company, at December 31, 2016 , had FHLB letters of credit of $946,338 pledged to secure public deposits, repurchase agreements, and for other purposes required or permitted by law. At December 31, 2016 , the Company had $2,080 of unfunded commitments recorded in other liabilities in its consolidated balance sheet related to investments in community development-oriented private equity funds used for Community Reinvestment Act purposes. The total investment in these equity funds was $11,168 , with an average ownership of 5.3% . Liability for Mortgage Loan Repurchase Losses Residential mortgage loans are sold in the secondary market with standard representations and warranties regarding certain characteristics such as the quality of the loan, the absence of fraud, the eligibility of the loan for sale and the future servicing associated with the loan. The Company may be required to repurchase these loans at par, or make-whole or indemnify the purchasers for losses incurred when representations and warranties are breached. The company maintains a repurchase liability related to residential mortgage loans sold with representations and warranty provisions. This repurchase liability is reported in other liabilities on the consolidated balance sheets and reflects management’s estimate of losses based on historical repurchase and loss trends, as well as other factors that may result in anticipated losses different from historical loss trends. Adjustments to this reserve are recorded in other non-interest expense on the consolidated statements of income. The liability was $143 and $147 at December 31, 2016 and 2015 , respectively. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | Parent Company Only Condensed Financial Information Condensed financial information of the Company is as follows: CONDENSED BALANCE SHEETS December 31, 2016 2015 ASSETS Cash on deposit at subsidiary $ 16,962 $ 42,980 Investment in banking subsidiary 978,880 824,933 Receivable from banking subsidiary 10,317 7,456 ESOP note receivable and other assets 13,999 14,498 Total assets $ 1,020,158 $ 889,867 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings $ 134,032 $ 84,992 Other liabilities 761 799 Shareholders’ equity 885,365 804,076 Total liabilities and shareholders’ equity $ 1,020,158 $ 889,867 CONDENSED STATEMENTS OF INCOME December 31, 2016 2015 2014 Cash dividends from subsidiary $ — $ 24,500 $ 19,187 Excess of earnings over dividend from subsidiary 103,572 48,677 20,044 Interest income on ESOP loan 487 565 633 Interest income on subordinated debt 11 17 — Other income — 5 — 104,070 73,764 39,864 Interest expense 6,040 1,046 — Operating expenses 3,236 3,009 13,036 Earnings before income tax benefit 94,794 69,709 26,828 Income tax benefit 3,027 1,207 4,450 Net income $ 97,821 $ 70,916 $ 31,278 CONDENSED STATEMENTS OF CASH FLOWS December 31, 2016 2015 2014 Cash flows from operating activities Net income $ 97,821 $ 70,916 $ 31,278 Adjustments to reconcile net income to net cash from operating activities: Excess of earnings over dividend from subsidiary (103,572 ) (48,677 ) (20,044 ) Amortization 530 171 — Activity in share-based compensation plans 3,152 3,068 3,096 Net change in intercompany receivable — — (31,395 ) Net change in other assets (481 ) 6,931 (1,820 ) Net change in other liabilities (38 ) (14,544 ) 4,134 Net cash provided by (used in) operating activities (2,588 ) 17,865 (14,751 ) Cash flows from investing activities Capital contribution (to) from subsidiary (49,000 ) (40,000 ) 31,395 Cash and cash equivalents acquired from LegacyTexas Group, Inc. — 201 — Payments received on ESOP notes receivable 981 1,495 1,427 Net cash provided by (used in) investing activities (48,019 ) (38,304 ) 32,822 Cash flows from financing activities Proceeds from borrowings 73,439 73,407 — Repayments of borrowings (24,929 ) (24,364 ) — Share repurchase — (7,989 ) — Net issuance of common stock under employee stock plans 3,755 1,284 1,085 Payment of dividends (27,676 ) (25,747 ) (19,187 ) Net cash provided by (used in) financing activities 24,589 16,591 (18,102 ) Net change in cash and cash equivalents (26,018 ) (3,848 ) (31 ) Beginning cash and cash equivalents 42,980 46,828 46,859 Ending cash and cash equivalents $ 16,962 $ 42,980 $ 46,828 |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | Quarterly Financial Data (Unaudited) Net Interest Income Provision Securities Gains and (Losses) Earnings per Share Interest Income Interest Expense Net Income Basic Diluted 2016 First quarter $ 72,608 $ 7,257 $ 65,351 $ 8,800 $ — $ 22,082 0.48 0.48 Second quarter 77,336 7,982 69,354 6,800 65 23,217 0.50 0.50 Third quarter 82,911 9,431 73,480 3,467 (3 ) 27,217 0.59 0.58 Fourth quarter 84,497 10,413 74,084 7,833 (6 ) 25,305 0.54 0.54 2015 First quarter $ 61,618 $ 5,292 $ 56,326 $ 3,000 $ 211 $ 16,324 0.35 0.35 Second quarter 64,967 5,146 59,821 3,750 — 20,251 0.44 0.44 Third quarter 66,525 5,337 61,188 7,515 (25 ) 17,895 0.39 0.38 Fourth quarter 69,582 5,840 63,742 11,200 17 16,446 0.36 0.35 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent Events The Company evaluated events from the date of the consolidated financial statements on December 31, 2016 through the issuance of those consolidated financial statements included in this Annual Report on Form 10-K dated February 9, 2017 . |
SUMMARY OF SIGNIFICANT ACCOUN29
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Nature of Operations and Principles of Consolidation : The consolidated financial statements include LegacyTexas Financial Group, Inc. (the "Company"), whose business at December 31, 2016 primarily consisted of the operations of its wholly-owned subsidiary, LegacyTexas Bank (the "Bank"). In addition, the Company also offers title services through LegacyTexas Title Co., which is a wholly-owned subsidiary of the Bank. Intercompany transactions and balances are eliminated in consolidation. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with U.S. generally accepted accounting principles ("US GAAP"), management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, valuation of other real estate owned, other-than-temporary impairment of securities, realization of deferred tax assets, and fair values of financial instruments are subject to change. |
Cash Flows | Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities less than 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest-bearing deposits in other financial institutions, federal funds purchased, Federal Home Loan Bank advances and repurchase agreements. |
Restrictions on Cash | Restrictions on Cash : The Company maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. Cash balances equaling or exceeding escrow amounts are maintained at correspondent banks. |
Securities | Securities : Securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available for sale and are carried at fair value. Unrealized gains and losses on securities classified as available for sale have been accounted for as accumulated other comprehensive income (loss), net of taxes. Gains and losses on the sale of securities classified as available for sale are recorded on the trade date using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity. Premiums and discounts on securities are amortized using the level-yield method without anticipating prepayment, except for mortgage-backed securities where prepayments are anticipated. |
Other-than-Temporary Impairment | The Company evaluates securities for other-than-temporary impairment on at least a quarterly basis and more frequently when economic, market, or security specific concerns warrant such evaluation. Consideration is given to the length of time and the extent to which the fair value has been less than amortized cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition. The Company conducts regular reviews of the bond agency ratings of securities and considers whether the securities were issued by or have principal and interest payments guaranteed by the federal government or its agencies. These reviews focus on the underlying rating of the issuer and also include the insurance rating of securities that have an insurance component or guarantee. The ratings and financial condition of the issuers are monitored, as well as the financial condition and ratings of the insurers and guarantors. For periods in which other-than-temporary impairment of a debt security is recognized, the credit portion of the amount is determined by subtracting the present value of the stream of estimated cash flows as calculated in a discounted cash flow model and discounted at book yield from the prior period’s ending carrying value. The non-credit portion of the amount is determined by subtracting the credit portion of the impairment from the difference between the book value and fair value of the security. The credit related portion of the impairment is charged against income and the non-credit related portion is charged to equity as a component of accumulated other comprehensive income. |
Mortgage loans held for sale | Mortgage Loans Held for Sale : The Company elects the fair value option for recording residential mortgage loans held for sale in accordance with Accounting Standards Codification ("ASC") 825, "Financial Instruments". This election allows for a more effective offset of the changes in fair values of the loans and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, “Derivatives and Hedging.” |
Loans | Warehouse Purchase Program Loans : The Warehouse Purchase Program allows unaffiliated mortgage originators to close one-to-four family real estate loans in their own name and manage its cash flow needs until the loans are sold to investors. The mortgage banking company customer closes mortgage loans consistent with underwriting standards established by the Bank and approved investors and, once all pertinent documents are received, the participation interest is delivered by the Bank to the investor selected by the originator and approved by us. Although not bound by any legally binding commitment, when a purchase decision is made, we purchase a 100% participation interest in the mortgage loans originated by our mortgage banking company customers. All Warehouse Purchase Program loans are collectively evaluated for impairment and are purchased under several contractual requirements, providing safeguards to the Company. These safeguards include the requirement that our mortgage company customers have a takeout commitment or similar arrangement for each loan. To date, the Company has not experienced a loss on these loans and no allowance for loan losses has been allocated to them. Loans : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of unearned interest, purchase premiums and discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Past due status is based on the contractual terms of the loan. Loans that are past due 30 days are considered delinquent. Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Non-mortgage consumer loans are typically charged off no later than 120 days past due. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and larger individually classified impaired loans. All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. For loans collateralized by real property and commercial and industrial loans, credit exposure is monitored by internally assigned grades used for classification of loans. A loan is considered “special mention” when management has determined that there is a potential weakness that deserves management's close attention. Loans rated as "special mention" are not adversely classified according to regulatory classifications and do not expose the Company to sufficient risk to warrant adverse classification. A loan is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. “Substandard” loans include those characterized by the “distinct possibility” that the insured institution will sustain “some loss” if the deficiencies are not corrected, and the loan may or may not meet the criteria for impairment. Loans classified as “doubtful” have all of the weaknesses of those classified as “substandard”, with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” All other loans that do not fall into the above mentioned categories are considered “pass” loans. Updates to internally assigned grades are made monthly and/or upon significant developments. For other consumer loans (non-real estate), credit exposure is monitored by payment history of the loans. Non-performing other consumer loans are on nonaccrual status and are generally greater than 90 days past due. |
Acquired Loans | Acquired Loans : Loans acquired through the completion of a transfer, including loans acquired in a business combination, that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payment receivable are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized on the balance sheet and do not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Revolving loans, including lines of credit, are excluded from acquired credit impaired loan accounting. For acquired loans not deemed credit-impaired at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to the acquisition date, methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans; however, a provision for credit losses will be recorded only to the extent the required allowance exceeds any remaining credit discounts. |
Concentration of Credit Risk | Concentration of Credit Risk : Most of the Company’s business activity is with customers located within the North Texas region and a large portion of loans are secured by real estate in this area. Therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy of the North Texas area. |
Allowance for Loan Losses | Allowance for Loan Losses : The allowance for loan losses and related provision expense are susceptible to change if the credit quality of our loan portfolio changes, which is evidenced by many factors, including but not limited to charge-offs and non-performing loan trends. Generally, consumer real estate lending has a lower credit risk profile compared to other consumer lending (such as automobile loans). Commercial real estate and commercial and industrial lending, however, can have higher risk profiles than consumer loans due to these loans being larger in amount and non-homogeneous in structure and term. Changes in economic conditions, the mix and size of the loan portfolio, and individual borrower conditions can dramatically impact our level of allowance for loan losses in relatively short periods of time. The allowance for loan losses is maintained to cover incurred losses that are estimated in accordance with US GAAP. It is our estimate of credit losses inherent in our loan portfolio at each balance sheet date. Our methodology for analyzing the allowance for loan losses consists of general and specific components. For the general component, we stratify the loan portfolio into homogeneous groups of loans that possess similar loss potential characteristics and apply a loss ratio to these groups of loans to estimate the credit losses in the loan portfolio. We use both historical loss ratios and qualitative loss factors assigned to major loan collateral types to establish general component loss allocations, inclusive of estimated loss emergence periods. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data and external economic indicators, which are not yet reflected in the historical loss ratios, and that could impact the Company's specific loan portfolios. The Allowance for Loan Loss Committee sets and adjusts qualitative loss factors by regularly reviewing changes in underlying loan composition and the seasonality of specific portfolios. The Allowance for Loan Loss Committee also considers credit quality and trends relating to delinquency, non-performing and adversely rated loans within the Company's loan portfolio when evaluating qualitative loss factors. Additionally, the Allowance for Loan Loss Committee adjusts qualitative factors to account for the potential impact of external economic factors, including the unemployment rate, vacancy and capitalization rates and other pertinent economic data specific to our primary market area and lending portfolios. For the specific component, the allowance for loan losses includes loans where management has concerns about the borrower's ability to repay and on individually analyzed loans found to be impaired. Management evaluates current information and events regarding a borrower's ability to repay its obligations and considers a loan to be impaired when the ultimate collectability of amounts due, according to the contractual terms of the loan agreement, is in doubt. If an impaired loan is collateral-dependent, the fair value of the collateral, less the estimated cost to sell, is used to determine the amount of impairment. If an impaired loan is not collateral-dependent, the impairment amount is determined using the negative difference, if any, between the estimated discounted cash flows and the loan amount due. For impaired loans, the amount of the impairment can be adjusted, based on current data, until such time as the actual basis is established by acquisition of the collateral or until the basis is collected. Impairment losses are reflected in the allowance for loan losses through a charge to the provision for credit losses. Subsequent recoveries are credited to the allowance for loan losses. Cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal. Large groups of smaller-balance homogeneous loans are collectively evaluated for impairment. As a result, the Company does not separately identify consumer real estate loans less than $417 or individual consumer non-real estate secured loans for impairment disclosures. The Company considers these loans to be homogeneous in nature due to the smaller dollar amount and the similar underwriting criteria. A loan that has been modified is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. Modifications to loan terms may include a modification of the contractual interest rate to a below-market rate (even if the modified rate is higher than the original rate), forgiveness of accrued interest, forgiveness of a portion of principal, an extended repayment period or a deed in lieu of foreclosure or other transfer of assets other than cash to fully or partially satisfy a debt. The Company's policy is to place all TDRs on nonaccrual for a minimum period of six months . Loans qualify for return to accrual status once they have demonstrated performance with the restructured terms of the loan agreement for a minimum of six months and the collection of principal and interest under the revised terms is deemed probable. All TDRs are considered to be impaired loans. |
Federal Home Loan Bank stock and other restricted securities | FHLB stock and other restricted securities: FHLB, FRB and other restricted stock is carried at cost, classified as restricted securities and periodically evaluated for impairment based on the ultimate recoverability of the par value. Both cash and stock dividends are reported as interest income. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance : The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Premises and Equipment | Premises and Equipment : Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from 10 to 30 years. Furniture, fixtures and equipment are generally depreciated using the straight-line method with useful lives ranging from 3 to 7 years. The cost of leasehold improvements is amortized over the shorter of the lease term or useful life using the straight-line method. |
Goodwill | Goodwill : Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. According to ASC 350-20, "Intangibles- Goodwill and Other", goodwill shall be tested for impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount. Deterioration in economic market conditions, changes in key personnel, increased estimates of the effects of recent regulatory or legislative changes, or additional regulatory or legislative changes may result in declines in projected business performance beyond management's current expectations. Such declines in business performance could cause the estimated fair value of goodwill to decline, which could result in an impairment charge to earnings in a future period related to goodwill. The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount, in accordance with ASC 350-20. During 2016, the Company changed its annual goodwill impairment testing date from December 31 to October 1. The Company believes that this new date is preferable as it provides additional time prior to the Company’s year-end to complete the annual goodwill impairment test, especially in the event of future acquisitions and growth. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the two-step test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualified method, that the fair value is more likely than not less than the carrying amount, the Company uses the two-step test. Under the two-step test, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two of the goodwill impairment test compares the implied estimated fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for that reporting unit exceeds the implied fair value of that unit's goodwill, an impairment loss is recognized in an amount equal to that excess. Additional information regarding goodwill and impairment testing can be found in Note 9 - Goodwill and Core Deposit Intangibles |
Identifiable Intangibles | Identifiable Intangibles : Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets relate to core deposits and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Foreclosed Assets, net | Foreclosed Assets : Assets acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or the fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Derivative Financial Instruments | Derivative Financial Instruments : The Company enters into the following derivative financial instruments: interest rate lock commitments, forward mortgage-backed securities trades and interest rate swaps and caps. These financial instruments are not designated as hedging instruments and are used for asset and liability management and commercial customers' financing needs. All derivatives are carried at fair value in either other assets or other liabilities. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Fair value measurements and disclosures guidance establishes a three-level fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. |
Repurchase/Resell Agreements | Repurchase/Resell Agreements: The Company sells certain securities under agreements to repurchase. The securities sold under these agreements are treated as collateralized borrowings and are recorded at amounts equal to the cash received. The contractual terms of the agreements to repurchase may require the Company to provide additional collateral if the fair value of the securities underlying the borrowings declines during the term of the agreement. |
Brokerage Fee Income | Brokerage Fee Income : Acting as an agent, the Company generates brokerage income by buying and selling securities on behalf of its customers through an independent third party and earning fees on the transactions. These fees are recorded on the trade date. |
Advertising Expense | Advertising Expense : The Company expenses all advertising costs as they are incurred. |
Share-Based Compensation | Share-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with time-based vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For awards with performance-based vesting conditions, compensation cost is recognized when the achievement of the performance condition is considered probable of achievement. If a performance condition is subsequently determined to be improbable of achievement, compensation cost is reversed. |
Retirement Plans | Retirement Plans: Employee 401(k) and profit sharing plan expense is the amount of matching contributions as determined by formula. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. |
Income Taxes | Income Taxes : Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company did not have any material uncertain tax positions which would require accrual at December 31, 2016 or 2015 . The Company recognizes interest and/or penalties related to income tax matters in income tax expense and did not have any amounts accrued for interest and penalties for the years ended December 31, 2016 or 2015 . The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit has been allocated to subsidiaries on a separate return basis. |
Earnings per common share | Earnings per common share : The Company calculated earnings per common share in accordance with ASC 260, “Earnings Per Share,” which provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. The Company has determined that its outstanding non-vested stock awards are participating securities. Accordingly, earnings per common share is computed using the two-class method prescribed under ASC 260. Under the two-class method, basic earnings per common share is computed by dividing net earnings allocated to common stock by the weighted-average number of common shares outstanding during the applicable period, excluding outstanding participating securities. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the dilutive effect of stock compensation using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 3 — Earnings Per Common Share . |
Comprehensive Income (Loss) | Comprehensive Income (Loss) : Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, net of taxes, which are also recognized as a separate component of equity. |
Employee stock ownership plan (ESOP) | Employee stock ownership plan (ESOP) : The Company accounts for its ESOP in accordance with ASC 718-40, "Employee Stock Ownership Plans." Accordingly, since the Company sponsors the ESOP with an employer loan, neither the ESOP’s loan payable nor the Company’s loan receivable are reported in the Company’s consolidated balance sheet. Likewise, the Company does not recognize interest income or interest cost on the loan. Unallocated shares held by the ESOP are recorded as unearned ESOP shares in the consolidated statement of changes in shareholders’ equity. As shares are committed to be released for allocation, the Company recognizes compensation expense equal to the average market price of the shares for the period. Dividends on allocated ESOP shares reduce retained earnings; dividends on unearned ESOP shares reduce principal and accrued interest payable on the ESOP loan. |
Dividend Restriction | Dividend Restriction : Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the Company or by the Company to shareholders. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. |
Operating Segments | Operating Segments: The Company has determined that all of its banking operations comprise one segment under ASC 280, Segment Reporting , since all offer similar products and services, operate with similar processes, and have similar customers. Additionally, the Company has determined that the Bank's title and insurance subsidiaries do not meet the materiality threshold to require segment disclosure under ASC 280. In 2016, the Bank sold the operations of LegacyTexas Insurance Services, Inc. |
Loan Commitments And Related Financial Instruments | Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Reclassifications | Reclassifications : Some items in the prior year financial statements were reclassified to conform to the current presentation. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards : In June 2014, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2014-12, A ccounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could Be Achieved after the Requisite Service Period . This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments were effective for annual periods, and interim periods within those years, beginning after December 15, 2015. The adoption of this ASU did not impact the Company's financial statements. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This ASU defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related disclosures in the notes to financial statements. This ASU was effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Management does not have substantial doubt about the Company's ability to continue as a going concern within one year after the date of these financial statements; therefore, no additional disclosure on this topic is required. In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . This ASU simplifies income statement presentation by eliminating the need to determine whether to classify an item as an extraordinary item and retains current presentation and disclosure requirements for an event or transaction that is of an unusual nature or of a type that indicates infrequency of occurrence. Transactions that meet both criteria would now also follow such presentation and disclosure requirements. The ASU was effective in annual periods, and interim periods within those annual periods, beginning after December 15, 2015 and did not impact the Company's current disclosures. In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis . This ASU affects all reporting entities that have variable interests in other legal entities and, in some cases, consolidation conclusions will change. In other cases, reporting entities will need to provide additional disclosures about entities that currently are not considered variable interest entities but will be considered variable interest entities under the new guidance if they have a variable interest in those entities. Reporting entities will need to re-evaluate their consolidation conclusions and potentially revise their documentation. The ASU was effective in annual and interim periods beginning after December 15, 2015. The adoption of this ASU did not impact the Company's consolidation analysis. In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share . This ASU eliminates the current requirement to categorize within the fair value hierarchy investments whose fair values are measured at net asset value ("NAV"). Instead, entities will be required to disclose the fair values of such investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table and the amounts reported on the balance sheet. The ASU was effective in annual and interim periods beginning after December 15, 2015. The Company does not currently have any investments measured at NAV within its fair value hierarchy and this ASU did not have an impact on the Company's statement of income or financial condition. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments . To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, this ASU eliminates the requirement to retrospectively account for those adjustments. The ASU requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments were effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The adoption of this ASU did not impact the Company's financial statements. Effect of Newly Issued But Not Yet Effective Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers . This ASU states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU affects entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date," which deferred the effective date of ASU 2014-09 for public entities to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Our revenue is comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. ASU 2014-09 could require us to change how we recognize certain recurring revenue streams; however, we do not expect these changes to have a significant impact on our financial statements. We continue to evaluate the impact of ASU 2014-09 on components of non-interest income. We expect to adopt the standard in the first quarter of 2018 with a cumulative effect adjustment to opening retained earnings, if such adjustment is deemed to be significant. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurements of Financial Assets and Financial Liabilities . This ASU requires that all equity investments be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). This ASU also requires that an entity 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. In addition, this ASU eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities and the requirement to disclose the method(s) 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 for public business entities. For public business entities, this ASU is effective for annual periods beginning after December 15, 2017, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. For public business entities, this ASU is effective for annual periods beginning after December 15, 2018, and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. The Company is evaluating the impact of this ASU on its financial statements and disclosures. In March 2016, the FASB issued ASU 2016-05, Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships . This ASU clarifies that a change in the counterparty of a derivative contract (i.e., a novation) in a hedge accounting relationship does not, in and of itself, require dedesignation of the hedge accounting relationship. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements and disclosures. In March 2016, the FASB issued ASU 2016-06, Contingent Put and Call Options in Debt Instruments . This ASU clarifies the requirements for assessing whether contingent call (put) options that can accelerate the payment of principal on debt instruments are clearly and closely related to their debt hosts. An entity performing the assessment under this ASU is required to assess the embedded call (put) options solely in accordance with the four-step decision sequence. The amendments apply to all entities that are issuers of or investors in debt instruments (or hybrid financial instruments that are determined to have a debt host) with embedded call (put) options. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements and disclosures. In March 2016, the FASB issued ASU 2016-07, Simplifying the Transition to the Equity Method of Accounting . This ASU eliminates the requirement for an investor to retrospectively apply the equity method when an investment that it had accounted for by another method qualifies for use of the equity method. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments. This ASU removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current US GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. This revised guidance will remove all recognition thresholds and will require companies to recognize an allowance for lifetime expected credit losses. Credit losses will be immediately recognized through net income; the amount recognized will be based on the current estimate of contractual cash flows not expected to be collected over the financial asset’s contractual term. ASU 2016-13 also amends the credit loss measurement guidance for available for sale debt securities. For public business entities, this ASU is effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2019. The Company is evaluating the impact of this ASU on its financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments . This ASU is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, and distributions received from equity method investments. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements. In October 2016, the FASB issued ASU 2016-16, Intra-Entity Transfers of Assets other than Inventory . This ASU e liminates the exception for all intra-entity sales of assets other than inventory. As a result, a reporting entity would recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods therein. The adoption of this ASU is not expected to have a significant impact on the Company's financial statements. |
EARNINGS PER COMMON SHARE - (Ta
EARNINGS PER COMMON SHARE - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Common Share | A reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation for the years ended December 31, 2016 , 2015 and 2014 is as follows: Years Ended December 31, 2016 2015 2014 Basic earnings per share: Numerator: Net income $ 97,821 $ 70,916 $ 31,278 Distributed and undistributed earnings to participating securities (497 ) (534 ) (336 ) Income available to common shareholders $ 97,324 $ 70,382 $ 30,942 Denominator: Weighted average common shares outstanding 47,721,179 47,659,389 39,979,853 Less: Average unallocated ESOP shares (1,301,356 ) (1,464,324 ) (1,648,518 ) Average unvested restricted stock awards (235,749 ) (347,781 ) (412,270 ) Average shares for basic earnings per share 46,184,074 45,847,284 37,919,065 Basic earnings per common share $ 2.11 $ 1.54 $ 0.82 Diluted earnings per share: Numerator: Income available to common shareholders $ 97,324 $ 70,382 $ 30,942 Denominator: Average shares for basic earnings per share 46,184,074 45,847,284 37,919,065 Dilutive effect of share-based compensation plan 300,893 278,163 243,029 Average shares for diluted earnings per share 46,484,967 46,125,447 38,162,094 Diluted earnings per common share $ 2.09 $ 1.53 $ 0.81 Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were therefore anti-dilutive 1,384,784 1,012,771 412,706 |
SECURITIES - (Tables)
SECURITIES - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value of Available-for-Sale Securities and Related Gross Unrealized Gains and Losses | The amortized cost, related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss), and the fair value of securities available for sale were as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency residential mortgage-backed securities 1 $ 220,744 $ 635 $ 2,828 $ 218,551 Agency commercial mortgage-backed securities 1 9,422 — 75 9,347 Agency residential collateralized mortgage obligations 1 87,959 22 1,452 86,529 US government and agency securities 2,150 101 — 2,251 Municipal bonds 38,417 47 627 37,837 Total securities $ 358,692 $ 805 $ 4,982 $ 354,515 December 31, 2015 Agency residential mortgage-backed securities 1 $ 224,582 $ 841 $ 1,575 $ 223,848 Agency commercial mortgage-backed securities 1 9,483 — 66 9,417 Agency residential collateralized mortgage obligations 1 22,430 26 142 22,314 US government and agency securities 14,906 148 — 15,054 Municipal bonds 40,512 637 74 41,075 Total securities $ 311,913 $ 1,652 $ 1,857 $ 311,708 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Carrying Amount, Unrecognized Gains and Losses, and Fair Value of Securities Held to Maturity | The amortized cost (carrying amount), unrealized gains and losses, and fair value of securities held to maturity were as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Agency residential mortgage-backed securities 1 $ 74,881 $ 1,147 $ 817 $ 75,211 Agency commercial mortgage-backed securities 1 28,023 836 166 28,693 Agency residential collateralized mortgage obligations 1 40,707 697 33 41,371 Municipal bonds 66,776 1,635 705 67,706 Total securities $ 210,387 $ 4,315 $ 1,721 $ 212,981 December 31, 2015 Agency residential mortgage-backed securities 1 $ 87,935 $ 1,837 $ 284 $ 89,488 Agency commercial mortgage-backed securities 1 24,848 913 64 25,697 Agency residential collateralized mortgage obligations 1 59,174 1,087 55 60,206 Municipal bonds 68,476 3,447 112 71,811 Total securities $ 240,433 $ 7,284 $ 515 $ 247,202 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Carrying Amount and Fair Value of Held to Maturity Debt Securities and Fair Value of Available-for-Sale Debt Securities | The amortized cost (carrying amount) and fair value of held to maturity debt securities and the fair value of available for sale debt securities at December 31, 2016 by contractual maturity are set forth below in the table below. Securities with contractual payments not due at a single maturity date, including mortgage backed securities and collateralized mortgage obligations, are shown separately. Held to maturity Available for sale Carrying Amount Fair Value Fair Value Due in one year or less $ 1,952 $ 1,965 $ 2,159 Due after one to five years 9,035 9,293 11,909 Due after five to ten years 48,327 49,226 17,648 Due after ten years 7,462 7,222 8,372 Agency residential mortgage-backed securities 74,881 75,211 218,551 Agency commercial mortgage-backed securities 28,023 28,693 9,347 Agency residential collateralized mortgage obligations 40,707 41,371 86,529 Total $ 210,387 $ 212,981 $ 354,515 |
Summarized Sales Activity | Sales activity of securities for the years ended December 31, 2016 , 2015 and 2014 was as follows. All securities sold were classified as available for sale. December 31, 2016 2015 2014 Proceeds $ 7,700 $ 36,984 $ — Gross gains 72 278 — Gross losses 7 50 — Tax expense of securities gains/losses reclassified from accumulated other comprehensive income 23 80 — |
Securities with Unrealized Losses Aggregated by Investment and Length of Time that Individual Securities have been in Continuous Unrealized Loss Position Category | Securities with unrealized losses at December 31, 2016 and 2015 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows: AFS Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency residential mortgage-backed securities 1 $ 167,503 $ 2,770 $ 7,516 $ 58 $ 175,019 $ 2,828 Agency commercial mortgage-backed securities 1 9,347 75 — — 9,347 75 Agency residential collateralized mortgage obligations 1 72,822 1,420 2,649 32 75,471 1,452 Municipal bonds 26,911 512 3,412 115 30,323 627 Total temporarily impaired $ 276,583 $ 4,777 $ 13,577 $ 205 $ 290,160 $ 4,982 December 31, 2015 Agency residential mortgage-backed securities 1 $ 158,172 $ 1,353 $ 10,474 $ 222 $ 168,646 $ 1,575 Agency commercial mortgage-backed securities 1 9,417 66 — — 9,417 66 Agency residential collateralized mortgage obligations 1 13,517 81 6,992 61 20,509 142 Municipal bonds 7,249 74 — — 7,249 74 Total temporarily impaired $ 188,355 $ 1,574 $ 17,466 $ 283 $ 205,821 $ 1,857 HTM Less than 12 Months 12 Months or More Total December 31, 2016 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Agency residential mortgage-backed securities 1 $ 41,375 $ 817 $ — $ — $ 41,375 $ 817 Agency commercial mortgage-backed securities 1 7,273 166 — — 7,273 166 Agency residential collateralized mortgage obligations 1 6,322 11 1,451 22 7,773 33 Municipal bonds 19,362 658 1,045 47 20,407 705 Total temporarily impaired $ 74,332 $ 1,652 $ 2,496 $ 69 $ 76,828 $ 1,721 December 31, 2015 Agency residential mortgage-backed securities 1 $ 41,935 $ 284 $ — $ — $ 41,935 $ 284 Agency commercial mortgage-backed securities 1 3,805 64 — — 3,805 64 Agency residential collateralized mortgage obligations 1 3,714 6 3,060 49 6,774 55 Municipal bonds 1,638 10 6,369 102 8,007 112 Total temporarily impaired $ 51,092 $ 364 $ 9,429 $ 151 $ 60,521 $ 515 1 Mortgage-backed securities and collateralized mortgage obligations are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
LOANS - (Tables)
LOANS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans | Loans consist of the following: December 31, 2016 December 31, 2015 Loans held for sale $ 21,279 $ 22,535 Loans held for investment: Commercial real estate $ 2,670,455 $ 2,177,543 Commercial and industrial 1,971,160 1,612,669 Construction and land 294,894 269,708 Consumer real estate 1,074,923 936,757 Other consumer 53,991 69,830 Gross loans held for investment, excluding Warehouse Purchase Program 6,065,423 5,066,507 Net of: Deferred fees and discounts, net (2,251 ) (1,860 ) Allowance for loan losses (64,576 ) (47,093 ) Net loans held for investment, excluding Warehouse Purchase Program 5,998,596 5,017,554 Warehouse Purchase Program 1,055,341 1,043,719 Total loans held for investment $ 7,053,937 $ 6,061,273 |
Allowance for Loan Losses | Activity in the allowance for loan losses for the years ended December 31, 2016 , 2015 and 2014 , segregated by portfolio segment and evaluation for impairment, is set forth below. The below activity does not include Warehouse Purchase Program loans, which are collectively evaluated for impairment and are purchased under several contractual requirements, providing safeguards to the Company. To date, the Company has not experienced a loss on these loans and no allowance for loan losses has been allocated to them. At December 31, 2016 , 2015 and 2014 , the allowance for loan impairment related to purchased credit impaired ("PCI") loans totaled $180 , $150 , and $180 , respectively. December 31, 2016 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2016 $ 14,123 $ 24,975 $ 3,013 $ 3,992 $ 990 $ 47,093 Charge-offs (79 ) (7,746 ) — (107 ) (927 ) (8,859 ) Recoveries 21 472 — 109 340 942 Provision expense 4,238 17,763 2,062 490 847 25,400 Ending balance - December 31, 2016 $ 18,303 $ 35,464 $ 5,075 $ 4,484 $ 1,250 $ 64,576 Allowance ending balance: Individually evaluated for impairment $ 300 $ 4,521 $ — $ 138 $ 52 $ 5,011 Collectively evaluated for impairment 18,003 30,943 5,075 4,346 1,198 59,565 Loans: Individually evaluated for impairment 5,195 86,664 11,385 3,300 75 106,619 Collectively evaluated for impairment 2,659,644 1,884,263 283,509 1,070,732 53,683 5,951,831 PCI loans 5,616 233 — 891 233 6,973 Ending balance $ 2,670,455 $ 1,971,160 $ 294,894 $ 1,074,923 $ 53,991 $ 6,065,423 December 31, 2015 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2015 $ 11,830 $ 9,068 $ 174 $ 4,069 $ 408 $ 25,549 Charge-offs (167 ) (3,129 ) — (321 ) (1,090 ) (4,707 ) Recoveries 29 246 — 85 426 786 Provision expense 2,431 18,790 2,839 159 1,246 25,465 Ending balance - December 31, 2015 $ 14,123 $ 24,975 $ 3,013 $ 3,992 $ 990 $ 47,093 Allowance ending balance: Individually evaluated for impairment $ 366 $ 1,470 $ — $ 81 $ 61 $ 1,978 Collectively evaluated for impairment 13,757 23,505 3,013 3,911 929 45,115 Loans: Individually evaluated for impairment 11,580 16,906 33 4,767 120 33,406 Collectively evaluated for impairment 2,155,351 1,595,548 269,675 931,140 69,433 5,021,147 PCI loans 10,612 215 — 850 277 11,954 Ending balance $ 2,177,543 $ 1,612,669 $ 269,708 $ 936,757 $ 69,830 $ 5,066,507 December 31, 2014 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Other Consumer Total Allowance for loan losses: Beginning balance - January 1, 2014 $ 10,944 $ 4,536 $ 212 $ 3,280 $ 386 $ 19,358 Charge-offs — (568 ) (51 ) (237 ) (605 ) (1,461 ) Recoveries 435 94 1 38 363 931 Provision expense 451 5,006 12 988 264 6,721 Ending balance - December 31, 2014 $ 11,830 $ 9,068 $ 174 $ 4,069 $ 408 $ 25,549 Allowance ending balance: Individually evaluated for impairment $ 826 $ 1,840 $ — $ 223 $ 6 $ 2,895 Collectively evaluated for impairment 11,004 7,228 174 3,846 402 22,654 Loans: Individually evaluated for impairment 7,405 5,929 103 5,607 284 19,328 Collectively evaluated for impairment 1,253,336 775,699 21,195 517,492 40,042 2,607,764 PCI loans 5,127 196 — 1,100 165 6,588 Ending balance $ 1,265,868 $ 781,824 $ 21,298 $ 524,199 $ 40,491 $ 2,633,680 Changes in the allowance for off-balance sheet credit losses on lending-related commitments, included in "accrued expenses and other liabilities" on the consolidated balance sheets, are summarized in the following table. Please see Note 17 - Commitments and Contingent Liabilities for more information. Year Ended December 31, 2016 Balance at beginning of period $ — Charge-offs on lending-related commitments — Provision for credit losses on lending-related commitments 1,500 Balance at end of period $ 1,500 |
Impaired Loans | The carrying amount of PCI loans included in the consolidated balance sheets and the related outstanding balances at December 31, 2016 and 2015 are set forth in the table below. The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off. December 31, 2016 2015 Carrying amount 1 $ 6,793 $ 11,804 Outstanding balance 7,597 13,053 1 The carrying amounts are reported net of allowance for loan losses of $180 and $150 as of December 31, 2016 and 2015 . Impaired loans at December 31, 2016 and 2015 , were as follows 1 : December 31, 2016 Unpaid Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Commercial real estate $ 5,388 $ 4,429 $ 766 $ 5,195 $ 272 Commercial and industrial 87,756 73,377 13,287 86,664 4,519 Construction and land 11,384 11,385 — 11,385 — Consumer real estate 3,766 3,290 10 3,300 10 Other consumer 107 33 42 75 30 Total $ 108,401 $ 92,514 $ 14,105 $ 106,619 $ 4,831 December 31, 2015 Commercial real estate $ 11,682 $ 10,618 $ 962 $ 11,580 $ 303 Commercial and industrial 18,649 13,894 3,012 16,906 1,467 Construction and land 38 33 — 33 — Consumer real estate 5,327 4,754 13 4,767 13 Other consumer 199 49 71 120 45 Total $ 35,895 $ 29,348 $ 4,058 $ 33,406 $ 1,828 1 No Warehouse Purchase Program loans were impaired at December 31, 2016 or 2015 . Loans reported do not include PCI loans. Income on impaired loans at December 31, 2016 , 2015 and 2014 , was as follows 1 December 31, 2016 December 31, 2015 December 31, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Commercial real estate $ 5,240 $ 9 $ 8,178 $ 24 $ 8,128 $ 23 Commercial and industrial 28,634 1 19,595 8 6,119 11 Construction and land 901 — 84 — 54 — Consumer real estate 4,831 14 5,269 7 5,008 26 Other consumer 95 4 202 2 433 5 Total $ 39,701 $ 28 $ 33,328 $ 41 $ 19,742 $ 65 1 Loans reported do not include PCI loans Changes in the accretable yield for PCI loans for the years ended December 31, 2016 and 2015 , are as follows: December 31, 2016 2015 Balance at beginning of period $ 3,356 $ 2,100 Additions — 1,907 Reclassifications (to) from nonaccretable 429 1,754 Disposals (359 ) (1,007 ) Accretion (911 ) (1,398 ) Balance at end of period $ 2,515 $ 3,356 |
Non-Performing (Nonaccrual) Loans | Non-performing (nonaccrual) loans were as follows: December 31, 2016 2015 Commercial real estate $ 5,195 $ 11,418 Commercial and industrial 86,664 16,877 Construction and land 11,385 33 Consumer real estate 7,987 9,781 Other consumer 158 107 Total $ 111,389 $ 38,216 |
Summary of Outstanding Balances of Troubled Debt Restructuring | The outstanding balances of TDRs are shown below: December 31, 2016 2015 Nonaccrual TDRs (1) $ 11,701 $ 6,207 Performing TDRs (2) 454 605 Total $ 12,155 $ 6,812 Specific reserves on TDRs $ 1,686 $ 487 Outstanding commitments to lend additional funds to borrowers with TDR loans — — 1 Nonaccrual TDR loans are included in the nonaccrual loan totals. 2 Performing TDR loans are loans that have been performing under the restructured terms for at least six months and the Company is accruing interest on these loans. The following table provides the recorded balances of loans modified as a TDR during the years ended December 31, 2016 , 2015 and 2014 . December 31, 2016 Principal Deferrals 1 Combination of Rate Reduction & Principal Deferral Other Total Commercial and industrial $ 685 $ — $ 7,090 (2) $ 7,775 Consumer real estate — 79 — 79 Other consumer 1 — — 1 Total $ 686 $ 79 $ 7,090 $ 7,855 December 31, 2015 Commercial real estate $ 100 $ — $ — $ 100 Commercial and industrial — — 191 191 Consumer real estate 209 60 36 305 Other consumer 1 — 3 4 Total $ 310 $ 60 $ 230 $ 600 December 31, 2014 Commercial and industrial $ 28 $ — $ 1,750 $ 1,778 Construction and land — — 102 102 Consumer real estate 197 262 461 920 Other consumer 11 6 — 17 Total $ 236 $ 268 $ 2,313 $ 2,817 1 Principal deferrals include Chapter 7 bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. Such loans are placed on non-accrual status. 2 Includes a $6.2 million reserve-based energy relationship; the primary modification to this relationship was suspension of required borrowing base payments. Loans modified as a TDR during the years ended December 31, 2016 , 2015 and 2014 , which experienced a subsequent payment default during the periods, are shown below. A payment default is defined as a loan that was 90 days or more past due. Years Ended December 31, 2016 2015 2014 Consumer real estate $ 31 $ 178 $ 107 |
Analysis of Age of Recorded Investment in Loans | Below is an analysis of the age of recorded investment in loans that were past due at December 31, 2016 and 2015 . No Warehouse Purchase Program loans were delinquent at December 31, 2016 or 2015 and therefore are not included in the following table. December 31, 2016 30-59 Days Past Due 60-89 Days Past Due 90 Days and Greater Past Due Total Loans Past Due Current Loans 1 Total Loans Commercial real estate $ 1,829 $ 72 $ 766 $ 2,667 $ 2,667,788 $ 2,670,455 Commercial and industrial 20,910 495 46 21,451 1,949,709 1,971,160 Construction and land 19,517 283 — 19,800 275,094 294,894 Consumer real estate 10,487 1,916 1,199 13,602 1,061,321 1,074,923 Other consumer 1,523 31 6 1,560 52,431 53,991 Total $ 54,266 $ 2,797 $ 2,017 $ 59,080 $ 6,006,343 $ 6,065,423 December 31, 2015 Commercial real estate $ 16 $ 176 $ 10,269 $ 10,461 $ 2,167,082 $ 2,177,543 Commercial and industrial 884 670 12,255 13,809 1,598,860 1,612,669 Construction and land 623 — — 623 269,085 269,708 Consumer real estate 10,880 2,463 3,458 16,801 919,956 936,757 Other consumer 463 37 — 500 69,330 69,830 Total $ 12,866 $ 3,346 $ 25,982 $ 42,194 $ 5,024,313 $ 5,066,507 1 Includes acquired PCI loans with a total carrying value of $6,729 and $11,328 at December 31, 2016 and 2015 , respectively. |
Real Estate and Commercial and Industrial Credit Exposure Credit Risk Profile by Internally Assigned Grade | The recorded investment in loans by credit quality indicators at December 31, 2016 and 2015 , was as follows. Real Estate and Commercial and Industrial Credit Exposure Credit Risk Profile by Internally Assigned Grade December 31, 2016 Commercial Real Estate Commercial and Industrial Construction and Land Consumer Real Estate Grade: 1 Pass $ 2,648,842 $ 1,712,171 $ 283,423 $ 1,062,549 Special Mention 7,972 155,110 — 2,083 Substandard 12,875 103,815 11,471 8,252 Doubtful 766 64 — 2,039 Total $ 2,670,455 $ 1,971,160 $ 294,894 $ 1,074,923 December 31, 2015 Grade: 1 Pass $ 2,135,539 $ 1,460,725 $ 269,582 $ 920,519 Special Mention 13,633 92,048 — 3,327 Substandard 27,572 59,835 93 9,606 Doubtful 799 61 33 3,305 Total $ 2,177,543 $ 1,612,669 $ 269,708 $ 936,757 1 PCI loans are included in the substandard or doubtful categories for December 31, 2016 and 2015 , respectively. These categories are generally consistent with the "substandard" and "doubtful" categories as defined by regulatory authorities. |
Consumer Credit Exposure Credit Risk Profile Based on Payment Activity | Credit Risk Profile Based on Payment Activity December 31, 2016 December 31, 2015 Performing $ 53,833 $ 69,723 Non-performing 158 107 Total $ 53,991 $ 69,830 |
FAIR VALUE - (Tables)
FAIR VALUE - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below. Fair Value Measurements Using Level 2 December 31, 2016 December 31, 2015 Assets: Agency residential mortgage-backed securities $ 218,551 $ 223,848 Agency commercial mortgage-backed securities 9,347 9,417 Agency residential collateralized mortgage obligations 86,529 22,314 US government and agency securities 2,251 15,054 Municipal bonds 37,837 41,075 Total securities available for sale $ 354,515 $ 311,708 Loans held for sale 1 $ 21,279 $ 22,535 Derivative financial instruments: Interest rate lock commitments 379 421 Forward mortgage-backed securities trades 36 15 Loan customer counterparty — 260 Financial institution counterparty 1,369 — Liabilities: Derivative financial instruments: Interest rate lock commitments — — Forward mortgage-backed securities trades 80 29 Loan customer counterparty 1,369 — Financial institution counterparty — 260 1 At December 31, 2016 and 2015 , loans held for sale had an aggregate outstanding principal balance of $20,946 and $21,851 . There were no mortgage loans held for sale that were 90 days or greater past due or on non-accrual at December 31, 2016 . |
Summary of Fair Value Measured on Nonrecurring Basis | Assets measured at fair value on a non-recurring basis are summarized below. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2016 or 2015 . Fair Value Measurements Using Level 3 December 31, 2016 December 31, 2015 Assets: Impaired loans $ 9,274 $ 2,230 Foreclosed assets: Commercial real estate 10,638 4,784 Construction and land 194 1,802 Consumer real estate — 106 Other 6 — |
Fair Value, by Balance Sheet Grouping | The carrying amount and fair value information of financial instruments not recorded at fair value in their entirety on a recurring basis on the Company's consolidated balance sheets at December 31, 2016 and 2015 , were as follows: Fair Value December 31, 2016 Carrying Amount Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents $ 289,212 $ 289,212 $ — $ — Securities held to maturity 210,387 — 212,981 — Loans held for investment, net 5,998,596 — — 6,080,165 Loans held for investment - Warehouse Purchase Program 1,055,341 — — 1,055,219 FHLB and other restricted securities, at cost 43,266 — 43,266 — Accrued interest receivable 20,347 20,347 — — Financial liabilities Deposits $ 6,365,476 $ — $ — $ 5,989,933 FHLB advances 833,682 — — 830,930 Repurchase agreements 86,691 — — 84,265 Subordinated debt 134,032 — — 121,743 Accrued interest payable 2,111 2,111 — — December 31, 2015 Financial assets Cash and cash equivalents $ 615,639 $ 615,639 $ — $ — Securities held to maturity 240,433 — 247,202 — Loans held for investment, net 5,017,554 — — 5,083,093 Loans held for investment - Warehouse Purchase Program 1,043,719 — — 1,042,434 FHLB and other restricted securities, at cost 63,075 — 63,075 — Accrued interest receivable 17,109 17,109 — — Financial liabilities Deposits $ 5,226,711 $ — $ — $ 4,920,648 FHLB advances 1,439,904 — — 1,433,125 Repurchase agreement 83,269 — — 81,956 Subordinated debt 84,992 — — 85,771 Accrued interest payable 1,653 1,653 — — |
DERIVATIVE FINANCIAL INSTRUME34
DERIVATIVE FINANCIAL INSTRUMENTS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table provides the outstanding notional balances and fair values of outstanding derivative positions at December 31, 2016 and 2015 . December 31, 2016 December 31, 2015 Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value IRLCs $ 10,952 $ 379 $ — $ 12,518 $ 421 $ — Forward mortgage-backed securities trades 18,613 36 80 20,374 15 29 Commercial loan interest rate swaps and caps: Loan customer counterparty 112,294 — 1,369 24,796 $ 260 — Financial institution counterparty 112,294 1,369 — 24,796 — 260 The commercial loan customer counterparty weighted average received and paid interest rates for interest rate swaps outstanding at December 31, 2016 and 2015 are presented in the following table. Weighted-Average Interest Rate December 31, 2016 December 31, 2015 Received Paid Received Paid Loan customer counterparty 3.12 % 2.36 % 5.01 % 3.37 % Income (loss) for the years ending December 31, 2016 , 2015 and 2014 was as follows: Derivatives not designated as hedging instruments Years Ended December 31, 2016 2015 2014 IRLC's $ (43 ) $ 8 $ — Forward mortgage-backed securities trades 13 (195 ) — |
PREMISES AND EQUIPMENT - (Table
PREMISES AND EQUIPMENT - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment were as follows: December 31, 2016 2015 Land $ 23,636 $ 25,546 Buildings 59,298 60,807 Furniture, fixtures and equipment 19,561 18,848 Leasehold improvements 7,674 7,556 110,169 112,757 Less: accumulated depreciation (35,943 ) (35,120 ) Total $ 74,226 $ 77,637 |
Schedule of future minimum rental payments for operating leases | Rent commitments, before considering applicable renewal options, as of December 31, 2016 , were as follows: Balance 2017 $ 6,218 2018 5,634 2019 4,791 2020 4,424 2021 4,238 Thereafter 20,572 Total $ 45,877 |
GOODWILL AND CORE DEPOSIT INT36
GOODWILL AND CORE DEPOSIT INTANGIBLES - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes In Carrying Amount of Company's Goodwill and Core Deposit Intangibles (Cdi) | Changes in the carrying amount of the Company's goodwill and core deposit intangibles (“CDI”) for years ended December 31, 2016 and 2015 , were as follows: Goodwill Core Deposit Intangibles Balance as of December 31, 2014 $ 29,650 $ 616 LegacyTexas Group, Inc. acquisition 151,126 880 Amortization of core deposit intangible — (466 ) Balance as of December 31, 2015 180,776 1,030 Disposition of insurance subsidiary goodwill upon the sale of subsidiary operations (2,217 ) — Amortization of core deposit intangible — (365 ) Balance as of December 31, 2016 $ 178,559 $ 665 |
Estimated Aggregate Future Amortization Expense for Intangible Assets Remaining | The estimated aggregate future amortization expense for CDI remaining as of December 31, 2016 is as follows: Balance 2017 $ 263 2018 156 2019 101 2020 73 2021 48 Thereafter 24 |
DEPOSITS - (Tables)
DEPOSITS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Scheduled Maturity of Time Deposits | At December 31, 2016 , scheduled maturities of time deposits for the next five years with the weighted average rate at the end of the period were as follows: Balance Weighted Average Rate 2017 $ 992,786 0.73 % 2018 256,150 0.99 2019 29,019 0.98 2020 22,858 1.39 2021 and thereafter 67,091 1.65 Total $ 1,367,904 0.84 % |
Interest Expense on Deposits | Interest expense on deposits is summarized as follows: Years Ended December 31, 2016 2015 2014 Interest-bearing demand $ 3,974 $ 3,297 $ 1,653 Savings and money market 7,288 3,644 3,144 Time 9,772 6,186 3,415 Total $ 21,034 $ 13,127 $ 8,212 |
BORROWED FUNDS - (Tables)
BORROWED FUNDS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments] | Borrowed funds are summarized as follows: December 31, 2016 2015 Amount Rate 1 Amount Rate 1 Federal Home Loan Bank advances $ 833,682 0.71 % $ 1,439,904 0.51 % Repurchase Agreements Credit Suisse structured repurchase agreement 25,000 3.02 25,000 3.22 Overnight repurchase agreements with depositors 61,691 0.15 58,269 0.16 Subordinated Debt Fixed to floating rate note maturing on December 1, 2025 125,000 5.58 75,000 5.50 Junior subordinated debentures 15,464 2.66 15,464 2.21 1 Rate at period-end, with the exception of the fixed to floating rate subordinated debt note, which is a weighted average rate calculated using period-end rates. |
Debt Pay Down Schedule | At December 31, 2016 , borrowed funds, reported gross of purchase accounting fair value discounts, prepayment penalties and debt issuance costs, were structured to contractually pay down as follows: FHLB Advances Repurchase Agreements Subordinated Debt Total 2017 $ 615,546 $ 61,691 $ — $ 677,237 2018 212,754 25,000 — 237,754 2019 2,314 — — 2,314 2020 931 — — 931 2021 856 — — 856 Thereafter 1,308 — 140,464 141,772 $ 833,709 $ 86,691 $ 140,464 $ 1,060,864 |
BENEFITS (Tables)
BENEFITS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Stock Ownership Plan (ESOP) Disclosures | Shares held by the ESOP at December 31 are categorized as follows: 2016 2015 Allocated to participants 1,643,294 1,522,883 Unearned 1,245,046 1,365,457 Total ESOP shares 2,888,340 2,888,340 Fair value of unearned shares at December 31 $ 53,612 $ 34,164 |
SHARE-BASED COMPENSATION - (Tab
SHARE-BASED COMPENSATION - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Compensation cost charged to income for share-based compensation, which is reported in non-interest expense as salaries and employee benefits expense, is presented below: Years ended December 31, 2016 2015 2014 Restricted stock $ 3,477 $ 3,459 $ 2,561 Stock options 2,537 2,018 1,156 Income tax benefit 2,105 1,917 1,301 |
Nonvested Shares for the Company's Stock Plans | A summary of activity in the restricted stock portion of the Company's stock plans for 2016 , 2015 and 2014 is presented below: Time-Based Shares Performance-Based Shares Shares Weighted- Average Grant Date Fair Value 1 Shares Weighted- Average Grant Date Fair Value 2 Non-vested at January 1, 2014 381,402 $ 20.39 82,400 $ 27.45 Granted 20,000 24.69 — — Vested (103,799 ) 20.32 — — Non-vested at December 31, 2014 297,603 20.45 82,400 23.89 Granted 80,000 21.23 — — Vested (131,142 ) 19.98 (20,600 ) 23.89 Non-vested at December 31, 2015 246,461 20.98 61,800 25.02 Granted 55,180 29.29 40,200 29.29 Vested (101,465 ) 20.70 (20,600 ) 25.02 Non-vested at December 31, 2016 200,176 $ 23.79 81,400 $ 43.06 1 For restricted stock awards with time-based vesting conditions, the grant date fair value is based upon the closing stock price as quoted on the NASDAQ Stock Market on the grant date. 2 For restricted stock awards with performance-based vesting conditions, the value of the award is based upon the closing stock price as quoted on the NASDAQ Stock Market on the date of vesting. Until the final value is determined on the vesting date, the Company estimates the fair value quarterly based upon the closing stock price as quoted on the NASDAQ Stock Market near the last business day of each calendar quarter end. |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options granted was determined using the following weighted-average assumptions as of grant date: 2016 2015 2014 Risk-free interest rate 1.37 % 1.80 % 2.16 % Expected term of stock options (years) 6.3 6.2 6.2 Expected stock price volatility 32.07 % 31.14 % 30.96 % Expected dividends 1.93 % 1.95 % 1.84 % |
Summary of Activity under Stock Option Portion of Equity Incentive Plan | A summary of activity in the stock option portion of the Company's share-based compensation plans as of the years ended December 31, 2016 , 2015 and 2014 is presented below: Options Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2014 1,173,618 $ 18.16 8.4 $ 10,903 Granted 328,750 26.09 10.0 — Exercised (56,035 ) 13.66 — 652 Forfeited (75,460 ) 17.63 — — Outstanding at December 31, 2014 1,370,873 20.27 8.0 5,679 Granted 633,000 25.66 10.0 — Exercised (58,855 ) 16.12 — 644 Forfeited (79,268 ) 20.89 — — Outstanding at December 31, 2015 1,865,750 22.21 7.9 6,401 Granted 392,838 29.15 10.0 — Exercised (175,192 ) 19.08 — 2,251 Forfeited (75,316 ) 25.57 — — Outstanding at December 31, 2016 2,008,080 $ 23.71 7.4 $ 38,850 Fully vested and expected to vest 1,990,524 $ 23.68 7.4 $ 38,585 Exercisable at December 31, 2016 719,156 $ 20.51 6.2 $ 16,218 |
INCOME TAXES - (Tables)
INCOME TAXES - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense (Benefit) | Income tax expense for 2016 , 2015 and 2014 , was as follows: 2016 2015 2014 Current expense $ 59,900 $ 38,648 $ 19,073 Deferred expense (6,798 ) (692 ) (1,414 ) Total income tax expense $ 53,102 $ 37,956 $ 17,659 |
Summary of Deferred Tax Assets and Liabilities | At December 31, 2016 and 2015 , deferred tax assets and liabilities were due to the following: December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 22,602 $ 16,483 Deferred compensation arrangements 1,261 1,536 Self-funded health insurance 241 203 Non-accrual interest 966 632 Restricted stock and stock options 3,132 2,275 Accrued expenses 1,255 715 Fair value mark on purchased loans 2,348 3,838 Net unrealized loss on securities available for sale 1,465 72 Other 2,121 811 35,391 26,565 Deferred tax liabilities: Depreciation (336 ) (1,011 ) Partnerships — CRA-purposed private equity funds (1,697 ) (1,328 ) Fair value mark on subordinated debt (1,303 ) (1,367 ) Other (2,824 ) (1,819 ) (6,160 ) (5,525 ) Net deferred tax asset $ 29,231 $ 21,040 |
Income Tax Rate Reconciliation | Effective tax rates differ from the federal statutory rate of 35% in 2016 , 2015 and 2014 , applied to income before income taxes due to the following: At and for the Year Ended December 31, 2016 2015 2014 Federal statutory rate times financial statement income $ 52,823 $ 38,105 $ 17,128 Effect of: State taxes, net of federal benefit 267 37 66 Tax credit on CRA-purposed private equity fund — — (58 ) Bank-owned life insurance income (436 ) (419 ) (220 ) Municipal interest income (1,041 ) (1,025 ) (772 ) ESOP shares released 757 1,207 1,140 One-time merger expenses — — 381 Sale of LegacyTexas Insurance Services, Inc. 640 — — Other 92 51 (6 ) Total income tax expense $ 53,102 $ 37,956 $ 17,659 Effective Tax Rate 35.18 % 34.86 % 36.09 % |
RELATED PARTY TRANSACTIONS - (T
RELATED PARTY TRANSACTIONS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Loans to executive officers, directors, and their affiliates during 2016 were as follows: Balance Beginning balance $ 15,365 New loans 21 Effect of changes in composition of related parties — Repayments (49 ) Ending balance $ 15,337 |
REGULATORY CAPITAL MATTERS - (T
REGULATORY CAPITAL MATTERS - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual Required for Capital Adequacy Purposes To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio As of December 31, 2016 Total risk-based capital the Company $ 910,040 11.71 % $ 621,870 8.00 % $ 777,338 10.00 % the Bank 869,523 11.19 621,840 8.00 777,300 10.00 Tier 1 risk-based capital the Company 721,600 9.28 466,403 6.00 466,403 6.00 the Bank 803,374 10.34 466,380 6.00 621,840 8.00 Common equity tier 1 risk-based capital the Company 709,858 9.13 349,802 4.50 n/a 1 n/a 1 the Bank 803,374 10.34 349,785 4.50 505,245 6.50 Tier 1 leverage the Company 721,600 8.73 330,782 4.00 n/a 1 n/a 1 the Bank 803,374 9.71 330,873 4.00 413,591 5.00 As of December 31, 2015 Total risk-based capital the Company $ 755,689 11.58 % $ 522,107 8.00 % $ 652,634 10.00 % the Bank 691,554 10.60 522,116 8.00 652,645 10.00 Tier 1 risk-based capital the Company 635,162 9.73 391,580 6.00 391,580 6.00 the Bank 644,461 9.87 391,587 6.00 522,116 8.00 Common equity tier 1 risk-based capital the Company 623,604 9.56 293,685 4.50 n/a 1 n/a 1 the Bank 644,461 9.87 293,690 4.50 424,219 6.50 Tier 1 leverage the Company 635,162 9.46 268,430 4.00 n/a 1 n/a 1 the Bank 644,461 9.61 268,273 4.00 335,341 5.00 1 Not applicable |
COMMITMENTS AND CONTINGENT LI44
COMMITMENTS AND CONTINGENT LIABILITIES - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | The contractual amounts of financial instruments with off‑balance sheet risk at December 31, 2016 and 2015 , are summarized below. Please see Part II-Item 7- "Off-Balance Sheet Arrangements, Contractual Obligation and Commitments" of this Form 10-K for information related to commitment maturities. December 31, 2016 2015 Unused commitments to extend credit $ 1,642,528 $ 1,211,964 Unused capacity on Warehouse Purchase Program loans 892,659 476,281 Standby letters of credit 29,198 18,644 Total unused commitments/capacity $ 2,564,385 $ 1,706,889 |
PARENT COMPANY ONLY CONDENSED45
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | Condensed financial information of the Company is as follows: CONDENSED BALANCE SHEETS December 31, 2016 2015 ASSETS Cash on deposit at subsidiary $ 16,962 $ 42,980 Investment in banking subsidiary 978,880 824,933 Receivable from banking subsidiary 10,317 7,456 ESOP note receivable and other assets 13,999 14,498 Total assets $ 1,020,158 $ 889,867 LIABILITIES AND SHAREHOLDERS’ EQUITY Borrowings $ 134,032 $ 84,992 Other liabilities 761 799 Shareholders’ equity 885,365 804,076 Total liabilities and shareholders’ equity $ 1,020,158 $ 889,867 |
Schedule of Condensed Income Statement | CONDENSED STATEMENTS OF INCOME December 31, 2016 2015 2014 Cash dividends from subsidiary $ — $ 24,500 $ 19,187 Excess of earnings over dividend from subsidiary 103,572 48,677 20,044 Interest income on ESOP loan 487 565 633 Interest income on subordinated debt 11 17 — Other income — 5 — 104,070 73,764 39,864 Interest expense 6,040 1,046 — Operating expenses 3,236 3,009 13,036 Earnings before income tax benefit 94,794 69,709 26,828 Income tax benefit 3,027 1,207 4,450 Net income $ 97,821 $ 70,916 $ 31,278 |
Schedule of Condensed Cash Flow Statement | CONDENSED STATEMENTS OF CASH FLOWS December 31, 2016 2015 2014 Cash flows from operating activities Net income $ 97,821 $ 70,916 $ 31,278 Adjustments to reconcile net income to net cash from operating activities: Excess of earnings over dividend from subsidiary (103,572 ) (48,677 ) (20,044 ) Amortization 530 171 — Activity in share-based compensation plans 3,152 3,068 3,096 Net change in intercompany receivable — — (31,395 ) Net change in other assets (481 ) 6,931 (1,820 ) Net change in other liabilities (38 ) (14,544 ) 4,134 Net cash provided by (used in) operating activities (2,588 ) 17,865 (14,751 ) Cash flows from investing activities Capital contribution (to) from subsidiary (49,000 ) (40,000 ) 31,395 Cash and cash equivalents acquired from LegacyTexas Group, Inc. — 201 — Payments received on ESOP notes receivable 981 1,495 1,427 Net cash provided by (used in) investing activities (48,019 ) (38,304 ) 32,822 Cash flows from financing activities Proceeds from borrowings 73,439 73,407 — Repayments of borrowings (24,929 ) (24,364 ) — Share repurchase — (7,989 ) — Net issuance of common stock under employee stock plans 3,755 1,284 1,085 Payment of dividends (27,676 ) (25,747 ) (19,187 ) Net cash provided by (used in) financing activities 24,589 16,591 (18,102 ) Net change in cash and cash equivalents (26,018 ) (3,848 ) (31 ) Beginning cash and cash equivalents 42,980 46,828 46,859 Ending cash and cash equivalents $ 16,962 $ 42,980 $ 46,828 |
QUARTERLY FINANCIAL DATA (Una46
QUARTERLY FINANCIAL DATA (Unaudited) - (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Net Interest Income Provision Securities Gains and (Losses) Earnings per Share Interest Income Interest Expense Net Income Basic Diluted 2016 First quarter $ 72,608 $ 7,257 $ 65,351 $ 8,800 $ — $ 22,082 0.48 0.48 Second quarter 77,336 7,982 69,354 6,800 65 23,217 0.50 0.50 Third quarter 82,911 9,431 73,480 3,467 (3 ) 27,217 0.59 0.58 Fourth quarter 84,497 10,413 74,084 7,833 (6 ) 25,305 0.54 0.54 2015 First quarter $ 61,618 $ 5,292 $ 56,326 $ 3,000 $ 211 $ 16,324 0.35 0.35 Second quarter 64,967 5,146 59,821 3,750 — 20,251 0.44 0.44 Third quarter 66,525 5,337 61,188 7,515 (25 ) 17,895 0.39 0.38 Fourth quarter 69,582 5,840 63,742 11,200 17 16,446 0.36 0.35 |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)segmentloan_production_office | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | |||
Number of segments | segment | 1 | ||
Number of full-service branches | loan_production_office | 45 | ||
Days past due to be considered delinquent | 30 days | ||
Days delinquent for interest on loan to be discontinued | 90 days | ||
Days delinquent for a consumer loan to be typically charged off | 120 days | ||
Consumer loans, nonperforming, period Before placed into nonaccrual status | 90 days | ||
Troubled debt restructuring non accrual period | 6 months | ||
Performance period for troubled debt restructuring loans to return to accrual status | 6 months | ||
Advertising expense | $ 3,861 | $ 3,773 | $ 1,535 |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 10 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 30 years | ||
Furniture, fixtures and equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 3 years | ||
Furniture, fixtures and equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful lives | 7 years | ||
Residential Portfolio Segment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Threshold for not being measured on an individual basis, unpaid principal for impaired financing receivable | $ 417 |
SHARE TRANSACTIONS - (Details)
SHARE TRANSACTIONS - (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | Aug. 22, 2012 | |
Stockholders' Equity Note [Abstract] | ||||
Percentage of shares authorized to be repurchased | 5.00% | |||
Repurchase authorized (in shares) | 1,978,871 | |||
Average price of stock retired (in dollars per share) | $ 22.32 | $ 18.55 | ||
Stock repurchased and retired during period (in shares) | 0 | 357,950 | 83,800 | |
Remaining available for purchase (shares) | 1,537,121 |
EARNINGS PER COMMON SHARE - Rec
EARNINGS PER COMMON SHARE - Reconciliation of Numerator and Denominator of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income | $ 97,821 | $ 70,916 | $ 31,278 | ||||||||
Distributed and undistributed earnings to participating securities | (497) | (534) | (336) | ||||||||
Income available to common shareholders | $ 97,324 | $ 70,382 | $ 30,942 | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding (in shares) | 47,721,179 | 47,659,389 | 39,979,853 | ||||||||
Less: Average unallocated ESOP shares (in shares) | (1,301,356) | (1,464,324) | (1,648,518) | ||||||||
Average unvested restricted stock awards (in shares) | (235,749) | (347,781) | (412,270) | ||||||||
Average shares for basic earnings per share (in shares) | 46,184,074 | 45,847,284 | 37,919,065 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.59 | $ 0.50 | $ 0.48 | $ 0.36 | $ 0.39 | $ 0.44 | $ 0.35 | $ 2.11 | $ 1.54 | $ 0.82 |
Numerator: | |||||||||||
Income available to common shareholders | $ 97,324 | $ 70,382 | $ 30,942 | ||||||||
Denominator: | |||||||||||
Average shares for basic earnings per share (in shares) | 46,184,074 | 45,847,284 | 37,919,065 | ||||||||
Dilutive effect of share-based compensation plan (in shares) | 300,893 | 278,163 | 243,029 | ||||||||
Average shares for diluted earnings per share (in shares) | 46,484,967 | 46,125,447 | 38,162,094 | ||||||||
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 0.58 | $ 0.50 | $ 0.48 | $ 0.35 | $ 0.38 | $ 0.44 | $ 0.35 | $ 2.09 | $ 1.53 | $ 0.81 |
Share awards excluded in the computation of diluted earnings per share because the exercise price was greater than the common stock average market price and were therefore anti-dilutive (in shares) | 1,384,784 | 1,012,771 | 412,706 |
SECURITIES - Fair Value of Avai
SECURITIES - Fair Value of Available-for-Sale Securities and Related Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 358,692 | $ 311,913 |
Gross Unrealized Gains | 805 | 1,652 |
Gross Unrealized Losses | 4,982 | 1,857 |
Fair Value | 354,515 | 311,708 |
Agency Residential Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 220,744 | 224,582 |
Gross Unrealized Gains | 635 | 841 |
Gross Unrealized Losses | 2,828 | 1,575 |
Fair Value | 218,551 | 223,848 |
Agency Commercial Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,422 | 9,483 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 75 | 66 |
Fair Value | 9,347 | 9,417 |
Agency Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 87,959 | 22,430 |
Gross Unrealized Gains | 22 | 26 |
Gross Unrealized Losses | 1,452 | 142 |
Fair Value | 86,529 | 22,314 |
US government and agency securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,150 | 14,906 |
Gross Unrealized Gains | 101 | 148 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,251 | 15,054 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 38,417 | 40,512 |
Gross Unrealized Gains | 47 | 637 |
Gross Unrealized Losses | 627 | 74 |
Fair Value | $ 37,837 | $ 41,075 |
SECURITIES - Carrying Amount, U
SECURITIES - Carrying Amount, Unrecognized Gains and Losses, and Fair Value of Securities Held to Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 210,387 | $ 240,433 |
Gross Unrealized Gains | 4,315 | 7,284 |
Gross Unrealized Losses | 1,721 | 515 |
Fair Value | 212,981 | 247,202 |
Agency Residential Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 74,881 | 87,935 |
Gross Unrealized Gains | 1,147 | 1,837 |
Gross Unrealized Losses | 817 | 284 |
Fair Value | 75,211 | 89,488 |
Agency Commercial Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 28,023 | 24,848 |
Gross Unrealized Gains | 836 | 913 |
Gross Unrealized Losses | 166 | 64 |
Fair Value | 28,693 | 25,697 |
Agency Collateralized Mortgage Backed Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 40,707 | 59,174 |
Gross Unrealized Gains | 697 | 1,087 |
Gross Unrealized Losses | 33 | 55 |
Fair Value | 41,371 | 60,206 |
Municipal Bonds [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 66,776 | 68,476 |
Gross Unrealized Gains | 1,635 | 3,447 |
Gross Unrealized Losses | 705 | 112 |
Fair Value | $ 67,706 | $ 71,811 |
SECURITIES - Carrying Amount an
SECURITIES - Carrying Amount and Fair Value of Held to Maturity Debt Securities and Fair Value of Available-for-Sale Debt Securities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Available For Sale And Held To Maturity Securities [Line Items] | |
Held to maturity, Carrying Amount, Due in one year or less | $ 1,952 |
Held to maturity, Carrying Amount, Due from one to five years | 9,035 |
Held to maturity, Carrying Amount, Due from five to ten years | 48,327 |
Held to maturity, Carrying Amount, Due after ten years | 7,462 |
Held to maturity, Carrying Amount | 210,387 |
Held to maturity, Fair Value, Due in one year or less | 1,965 |
Held to maturity, Fair Value, Due from one to five years | 9,293 |
Held to maturity, Fair Value, Due from five to ten years | 49,226 |
Held to maturity, Fair Value, Due after ten years | 7,222 |
Fair value of securities held to maturity | 212,981 |
Available for sale, Fair Value, Due in one year or less | 2,159 |
Available for sale, Fair Value, Due from one to five years | 11,909 |
Available for sale, Fair Value, Due from five to ten years | 17,648 |
Available for sale, Fair Value, Due after ten years | 8,372 |
Securities available for sale, at fair value | 354,515 |
Agency Residential Mortgage Backed Securities [Member] | |
Available For Sale And Held To Maturity Securities [Line Items] | |
Held to maturity, Carrying Amount | 74,881 |
Fair value of securities held to maturity | 75,211 |
Securities available for sale, at fair value | 218,551 |
Agency Commercial Mortgage Backed Securities [Member] | |
Available For Sale And Held To Maturity Securities [Line Items] | |
Held to maturity, Carrying Amount | 28,023 |
Fair value of securities held to maturity | 28,693 |
Securities available for sale, at fair value | 9,347 |
Agency Collateralized Mortgage Backed Securities [Member] | |
Available For Sale And Held To Maturity Securities [Line Items] | |
Held to maturity, Carrying Amount | 40,707 |
Fair value of securities held to maturity | 41,371 |
Securities available for sale, at fair value | $ 86,529 |
SECURITIES - Summarized Sales A
SECURITIES - Summarized Sales Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds | $ 7,700 | $ 36,984 | $ 0 |
Gross gains | 72 | 278 | 0 |
Gross losses | 7 | 50 | 0 |
Tax expense of securities gains/losses reclassified from accumulated other comprehensive income | $ 23 | $ 80 | $ 0 |
SECURITIES - Securities with Un
SECURITIES - Securities with Unrealized Losses Aggregated by Investment and Length of Time that Individual Securities Have Been in Continuous Unrealized Loss Position Category (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 276,583 | $ 188,355 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 4,777 | 1,574 |
Fair Value, 12 Months or More | 13,577 | 17,466 |
Available for Sale Securities Continuous Unrealized Loss Position 12 months or Longer Aggregate Losses Accumulated in Investments | 205 | 283 |
Fair Value, Total | 290,160 | 205,821 |
Available for Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated in Investments | 4,982 | 1,857 |
Fair Value, Less than 12 Months | 74,332 | 51,092 |
Held To Maturity Securities Continuous Unrealized Loss Position Less Than 12 Months Accumulated Loss | 1,652 | 364 |
Fair Value, 12 Months or More | 2,496 | 9,429 |
Held To Maturity Securities Continuous Unrealized Loss Position 12 Months Or Longer Accumulated Loss | 69 | 151 |
Fair Value, Total | 76,828 | 60,521 |
Held to Maturity Securities Accumulated Unrecognized Holding Loss | 1,721 | 515 |
Agency Residential Mortgage Backed Securities [Member] | ||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 167,503 | 158,172 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 2,770 | 1,353 |
Fair Value, 12 Months or More | 7,516 | 10,474 |
Available for Sale Securities Continuous Unrealized Loss Position 12 months or Longer Aggregate Losses Accumulated in Investments | 58 | 222 |
Fair Value, Total | 175,019 | 168,646 |
Available for Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated in Investments | 2,828 | 1,575 |
Fair Value, Less than 12 Months | 41,375 | 41,935 |
Held To Maturity Securities Continuous Unrealized Loss Position Less Than 12 Months Accumulated Loss | 817 | 284 |
Fair Value, 12 Months or More | 0 | 0 |
Held To Maturity Securities Continuous Unrealized Loss Position 12 Months Or Longer Accumulated Loss | 0 | 0 |
Fair Value, Total | 41,375 | 41,935 |
Held to Maturity Securities Accumulated Unrecognized Holding Loss | 817 | 284 |
Agency Commercial Mortgage Backed Securities [Member] | ||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 9,347 | 9,417 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 75 | 66 |
Fair Value, 12 Months or More | 0 | 0 |
Available for Sale Securities Continuous Unrealized Loss Position 12 months or Longer Aggregate Losses Accumulated in Investments | 0 | 0 |
Fair Value, Total | 9,347 | 9,417 |
Available for Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated in Investments | 75 | 66 |
Fair Value, Less than 12 Months | 7,273 | 3,805 |
Held To Maturity Securities Continuous Unrealized Loss Position Less Than 12 Months Accumulated Loss | 166 | 64 |
Fair Value, 12 Months or More | 0 | 0 |
Held To Maturity Securities Continuous Unrealized Loss Position 12 Months Or Longer Accumulated Loss | 0 | 0 |
Fair Value, Total | 7,273 | 3,805 |
Held to Maturity Securities Accumulated Unrecognized Holding Loss | 166 | 64 |
Agency Collateralized Mortgage Backed Securities [Member] | ||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 72,822 | 13,517 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 1,420 | 81 |
Fair Value, 12 Months or More | 2,649 | 6,992 |
Available for Sale Securities Continuous Unrealized Loss Position 12 months or Longer Aggregate Losses Accumulated in Investments | 32 | 61 |
Fair Value, Total | 75,471 | 20,509 |
Available for Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated in Investments | 1,452 | 142 |
Fair Value, Less than 12 Months | 6,322 | 3,714 |
Held To Maturity Securities Continuous Unrealized Loss Position Less Than 12 Months Accumulated Loss | 11 | 6 |
Fair Value, 12 Months or More | 1,451 | 3,060 |
Held To Maturity Securities Continuous Unrealized Loss Position 12 Months Or Longer Accumulated Loss | 22 | 49 |
Fair Value, Total | 7,773 | 6,774 |
Held to Maturity Securities Accumulated Unrecognized Holding Loss | 33 | 55 |
Municipal Bonds [Member] | ||
Available For Sale And Held To Maturity Securities [Line Items] | ||
Fair Value, Less than 12 months | 26,911 | 7,249 |
Available For Sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregate Losses Accumulated In Investments | 512 | 74 |
Fair Value, 12 Months or More | 3,412 | 0 |
Available for Sale Securities Continuous Unrealized Loss Position 12 months or Longer Aggregate Losses Accumulated in Investments | 115 | 0 |
Fair Value, Total | 30,323 | 7,249 |
Available for Sale Securities Continuous Unrealized Loss Position Aggregate Losses Accumulated in Investments | 627 | 74 |
Fair Value, Less than 12 Months | 19,362 | 1,638 |
Held To Maturity Securities Continuous Unrealized Loss Position Less Than 12 Months Accumulated Loss | 658 | 10 |
Fair Value, 12 Months or More | 1,045 | 6,369 |
Held To Maturity Securities Continuous Unrealized Loss Position 12 Months Or Longer Accumulated Loss | 47 | 102 |
Fair Value, Total | 20,407 | 8,007 |
Held to Maturity Securities Accumulated Unrecognized Holding Loss | $ 705 | $ 112 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) $ in Thousands | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Held-to-maturity securities pledged as collateral | $ | $ 224,674 | $ 280,629 |
Number of securities in unrealized loss position | 241 | |
Number of securities in unrealized loss position for more than one year | 21 |
LOANS - Narrative (Details)
LOANS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Receivables [Abstract] | |||
Portion of allowance for loan losses allocated to PCI loans | $ 180 | $ 150 | $ 180 |
Loans past due over 90 days and still accruing | $ 141 | 111 | |
Number of PCI loans that are considered non-performing | Contract | 0 | ||
Interest that would have been recognized on non-accrual loans if performing | $ 1,746 | $ 1,594 | $ 1,192 |
Troubled debt restructuring, default payment | 90 days |
LOANS - Loans (Details)
LOANS - Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans held for sale | $ 21,279 | $ 22,535 | ||
Other consumer | 53,991 | 69,830 | ||
Total | 6,065,423 | 5,066,507 | ||
Deferred fees and discounts, net | (2,251) | (1,860) | ||
Allowance for loan losses | (64,576) | (47,093) | $ (25,549) | $ (19,358) |
Net loans held for investment, excluding Warehouse Purchase Program | 5,998,596 | 5,017,554 | ||
Warehouse Purchase Program | 1,055,341 | 1,043,719 | ||
Total loans held for investment | 7,053,937 | 6,061,273 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial real estate | 2,670,455 | 2,177,543 | 1,265,868 | |
Allowance for loan losses | (18,303) | (14,123) | (11,830) | (10,944) |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial and industrial | 1,971,160 | 1,612,669 | 781,824 | |
Allowance for loan losses | (35,464) | (24,975) | (9,068) | (4,536) |
Construction and Land [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Construction and land | 294,894 | 269,708 | 21,298 | |
Allowance for loan losses | (5,075) | (3,013) | (174) | (212) |
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer real estate | 1,074,923 | 936,757 | 524,199 | |
Allowance for loan losses | (4,484) | (3,992) | (4,069) | (3,280) |
Other consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Other consumer | 53,991 | 69,830 | 40,491 | |
Allowance for loan losses | $ (1,250) | $ (990) | $ (408) | $ (386) |
LOANS - Allowance for loan loss
LOANS - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | $ 47,093 | $ 25,549 | $ 47,093 | $ 25,549 | $ 19,358 | ||||||
Charge-offs | (8,859) | (4,707) | (1,461) | ||||||||
Recoveries | 942 | 786 | 931 | ||||||||
Provision expense | $ 7,833 | $ 3,467 | $ 6,800 | 8,800 | $ 11,200 | $ 7,515 | $ 3,750 | 3,000 | 25,400 | 25,465 | 6,721 |
Ending balance | 64,576 | 47,093 | 64,576 | 47,093 | 25,549 | ||||||
Allowance: Individually evaluated for impairment | 5,011 | 1,978 | 5,011 | 1,978 | 2,895 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 59,565 | 45,115 | 59,565 | 45,115 | 22,654 | ||||||
Loans: Individually evaluated for impairment | 106,619 | 33,406 | 106,619 | 33,406 | 19,328 | ||||||
Loans: Collectively evaluated for impairment | 5,951,831 | 5,021,147 | 5,951,831 | 5,021,147 | 2,607,764 | ||||||
PCI loans | 6,973 | 11,954 | 6,973 | 11,954 | 6,588 | ||||||
Other consumer | 53,991 | 69,830 | 53,991 | 69,830 | |||||||
Ending balance | 6,065,423 | 5,066,507 | 6,065,423 | 5,066,507 | 2,633,680 | ||||||
Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | 14,123 | 11,830 | 14,123 | 11,830 | 10,944 | ||||||
Charge-offs | (79) | (167) | 0 | ||||||||
Recoveries | 21 | 29 | 435 | ||||||||
Provision expense | 4,238 | 2,431 | 451 | ||||||||
Ending balance | 18,303 | 14,123 | 18,303 | 14,123 | 11,830 | ||||||
Allowance: Individually evaluated for impairment | 300 | 366 | 300 | 366 | 826 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 18,003 | 13,757 | 18,003 | 13,757 | 11,004 | ||||||
Loans: Individually evaluated for impairment | 5,195 | 11,580 | 5,195 | 11,580 | 7,405 | ||||||
Loans: Collectively evaluated for impairment | 2,659,644 | 2,155,351 | 2,659,644 | 2,155,351 | 1,253,336 | ||||||
PCI loans | 5,616 | 10,612 | 5,616 | 10,612 | 5,127 | ||||||
Commercial real estate | 2,670,455 | 2,177,543 | 2,670,455 | 2,177,543 | 1,265,868 | ||||||
Commercial and Industrial [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | 24,975 | 9,068 | 24,975 | 9,068 | 4,536 | ||||||
Charge-offs | (7,746) | (3,129) | (568) | ||||||||
Recoveries | 472 | 246 | 94 | ||||||||
Provision expense | 17,763 | 18,790 | 5,006 | ||||||||
Ending balance | 35,464 | 24,975 | 35,464 | 24,975 | 9,068 | ||||||
Allowance: Individually evaluated for impairment | 4,521 | 1,470 | 4,521 | 1,470 | 1,840 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 30,943 | 23,505 | 30,943 | 23,505 | 7,228 | ||||||
Loans: Individually evaluated for impairment | 86,664 | 16,906 | 86,664 | 16,906 | 5,929 | ||||||
Loans: Collectively evaluated for impairment | 1,884,263 | 1,595,548 | 1,884,263 | 1,595,548 | 775,699 | ||||||
PCI loans | 233 | 215 | 233 | 215 | 196 | ||||||
Commercial and industrial | 1,971,160 | 1,612,669 | 1,971,160 | 1,612,669 | 781,824 | ||||||
Construction and Land [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | 3,013 | 174 | 3,013 | 174 | 212 | ||||||
Charge-offs | 0 | 0 | (51) | ||||||||
Recoveries | 0 | 0 | 1 | ||||||||
Provision expense | 2,062 | 2,839 | 12 | ||||||||
Ending balance | 5,075 | 3,013 | 5,075 | 3,013 | 174 | ||||||
Allowance: Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,075 | 3,013 | 5,075 | 3,013 | 174 | ||||||
Loans: Individually evaluated for impairment | 11,385 | 33 | 11,385 | 33 | 103 | ||||||
Loans: Collectively evaluated for impairment | 283,509 | 269,675 | 283,509 | 269,675 | 21,195 | ||||||
PCI loans | 0 | 0 | 0 | 0 | 0 | ||||||
Construction and land | 294,894 | 269,708 | 294,894 | 269,708 | 21,298 | ||||||
Consumer Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | 3,992 | 4,069 | 3,992 | 4,069 | 3,280 | ||||||
Charge-offs | (107) | (321) | (237) | ||||||||
Recoveries | 109 | 85 | 38 | ||||||||
Provision expense | 490 | 159 | 988 | ||||||||
Ending balance | 4,484 | 3,992 | 4,484 | 3,992 | 4,069 | ||||||
Allowance: Individually evaluated for impairment | 138 | 81 | 138 | 81 | 223 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,346 | 3,911 | 4,346 | 3,911 | 3,846 | ||||||
Loans: Individually evaluated for impairment | 3,300 | 4,767 | 3,300 | 4,767 | 5,607 | ||||||
Loans: Collectively evaluated for impairment | 1,070,732 | 931,140 | 1,070,732 | 931,140 | 517,492 | ||||||
PCI loans | 891 | 850 | 891 | 850 | 1,100 | ||||||
Consumer real estate | 1,074,923 | 936,757 | 1,074,923 | 936,757 | 524,199 | ||||||
Other consumer [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||||||||||
Beginning balance | $ 990 | $ 408 | 990 | 408 | 386 | ||||||
Charge-offs | (927) | (1,090) | (605) | ||||||||
Recoveries | 340 | 426 | 363 | ||||||||
Provision expense | 847 | 1,246 | 264 | ||||||||
Ending balance | 1,250 | 990 | 1,250 | 990 | 408 | ||||||
Allowance: Individually evaluated for impairment | 52 | 61 | 52 | 61 | 6 | ||||||
Allowance for Credit Losses, Collectively Evaluated for Impairment | 1,198 | 929 | 1,198 | 929 | 402 | ||||||
Loans: Individually evaluated for impairment | 75 | 120 | 75 | 120 | 284 | ||||||
Loans: Collectively evaluated for impairment | 53,683 | 69,433 | 53,683 | 69,433 | 40,042 | ||||||
PCI loans | 233 | 277 | 233 | 277 | 165 | ||||||
Other consumer | $ 53,991 | $ 69,830 | $ 53,991 | $ 69,830 | $ 40,491 |
LOANS - Off-Balance Sheet (Deta
LOANS - Off-Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Charge-offs on lending-related commitments | $ 8,859 | $ 4,707 | $ 1,461 |
Other Liabilities [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Charge-offs on lending-related commitments | 0 | ||
Provision for credit losses on lending-related commitments | 1,500 | ||
Balance at end of period | $ 1,500 | $ 0 |
LOANS - Impaired Loans (Details
LOANS - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $ 108,401 | $ 35,895 | |
Recorded Investment With No Allowance | 92,514 | 29,348 | |
Recorded Investment With Allowance | 14,105 | 4,058 | |
Total Recorded Investment | 106,619 | 33,406 | |
Related Allowance | 4,831 | 1,828 | |
Average Recorded Investment | 39,701 | 33,328 | $ 19,742 |
Interest Income Recognized | 28 | 41 | 65 |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 5,388 | 11,682 | |
Recorded Investment With No Allowance | 4,429 | 10,618 | |
Recorded Investment With Allowance | 766 | 962 | |
Total Recorded Investment | 5,195 | 11,580 | |
Related Allowance | 272 | 303 | |
Average Recorded Investment | 5,240 | 8,178 | 8,128 |
Interest Income Recognized | 9 | 24 | 23 |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 87,756 | 18,649 | |
Recorded Investment With No Allowance | 73,377 | 13,894 | |
Recorded Investment With Allowance | 13,287 | 3,012 | |
Total Recorded Investment | 86,664 | 16,906 | |
Related Allowance | 4,519 | 1,467 | |
Average Recorded Investment | 28,634 | 19,595 | 6,119 |
Interest Income Recognized | 1 | 8 | 11 |
Construction and Land [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 11,384 | 38 | |
Recorded Investment With No Allowance | 11,385 | 33 | |
Recorded Investment With Allowance | 0 | 0 | |
Total Recorded Investment | 11,385 | 33 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | 901 | 84 | 54 |
Interest Income Recognized | 0 | 0 | 0 |
Consumer Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,766 | 5,327 | |
Recorded Investment With No Allowance | 3,290 | 4,754 | |
Recorded Investment With Allowance | 10 | 13 | |
Total Recorded Investment | 3,300 | 4,767 | |
Related Allowance | 10 | 13 | |
Average Recorded Investment | 4,831 | 5,269 | 5,008 |
Interest Income Recognized | 14 | 7 | 26 |
Other consumer [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 107 | 199 | |
Recorded Investment With No Allowance | 33 | 49 | |
Recorded Investment With Allowance | 42 | 71 | |
Total Recorded Investment | 75 | 120 | |
Related Allowance | 30 | 45 | |
Average Recorded Investment | 95 | 202 | 433 |
Interest Income Recognized | $ 4 | $ 2 | $ 5 |
LOANS - Non-Performing (nonaccr
LOANS - Non-Performing (nonaccrual) loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | $ 111,389 | $ 38,216 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | 5,195 | 11,418 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | 86,664 | 16,877 |
Construction and Land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | 11,385 | 33 |
Consumer Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | 7,987 | 9,781 |
Other consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-performing | $ 158 | $ 107 |
LOANS - Summary of Outstanding
LOANS - Summary of Outstanding Balances of Troubled Debt Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
TDRs | $ 12,155 | $ 6,812 |
Specific reserves on TDRs | 1,686 | 487 |
Outstanding commitments to lend additional funds to borrowers with TDR loans | $ 0 | 0 |
Troubled debt restructuring non accrual period | 6 months | |
Nonaccrual TDRs [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
TDRs | $ 11,701 | 6,207 |
Performing TDRs [Member] | ||
Troubled Debt Restructuring, Debtor, Current Period [Line Items] | ||
TDRs | $ 454 | $ 605 |
LOANS - Information on Loans Mo
LOANS - Information on Loans Modified as Troubled Debt Restructuring by Category (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | $ 7,855 | $ 600 | $ 2,817 |
Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 686 | 310 | 236 |
Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 79 | 60 | 268 |
Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 7,090 | 230 | 2,313 |
Commercial Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 100 | ||
Commercial Real Estate [Member] | Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 100 | ||
Commercial Real Estate [Member] | Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | ||
Commercial Real Estate [Member] | Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | ||
Commercial and Industrial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 7,775 | 191 | 1,778 |
Commercial and Industrial [Member] | Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 685 | 0 | 28 |
Commercial and Industrial [Member] | Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | 0 | 0 |
Commercial and Industrial [Member] | Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 7,090 | 191 | 1,750 |
Commercial and Industrial [Member] | Reserve Based Energy Relationship [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 6,200 | ||
Construction and Land [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 102 | ||
Construction and Land [Member] | Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | ||
Construction and Land [Member] | Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | ||
Construction and Land [Member] | Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 102 | ||
Consumer Real Estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 79 | 305 | 920 |
Financing receivable, modifications, subsequent default, recorded investment | 31 | 178 | 107 |
Consumer Real Estate [Member] | Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | 209 | 197 |
Consumer Real Estate [Member] | Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 79 | 60 | 262 |
Consumer Real Estate [Member] | Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | 36 | 461 |
Other consumer [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 1 | 4 | 17 |
Other consumer [Member] | Principal Deferrals [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 1 | 1 | 11 |
Other consumer [Member] | Combination of Rate Reduction and Principal Deferral [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | 0 | 0 | 6 |
Other consumer [Member] | Other [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Loans modified as a TDR | $ 0 | $ 3 | $ 0 |
LOANS - Carrying Amount of Acqu
LOANS - Carrying Amount of Acquired PCI Loans Included in the Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | |||
Carrying amount | $ 6,793 | $ 11,804 | |
Outstanding balance | 7,597 | 13,053 | |
Portion of allowance for loan losses allocated to PCI loans | $ 180 | $ 150 | $ 180 |
LOANS - Changes in the Accretab
LOANS - Changes in the Accretable Yield for Acquired PCI Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 3,356 | $ 2,100 |
Additions | 0 | 1,907 |
Reclassifications (to) from nonaccretable | 429 | 1,754 |
Disposals | (359) | (1,007) |
Accretion | (911) | (1,398) |
Balance at end of period | $ 2,515 | $ 3,356 |
LOANS - Analysis of Age of Reco
LOANS - Analysis of Age of Recorded Investment in Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | $ 59,080 | $ 42,194 | |
Current Loans | 6,006,343 | 5,024,313 | |
Other consumer | 53,991 | 69,830 | |
Total | 6,065,423 | 5,066,507 | |
Carrying value, Current portion PCI loans | 6,729 | 11,328 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 54,266 | 12,866 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 2,797 | 3,346 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 2,017 | 25,982 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 2,667 | 10,461 | |
Current Loans | 2,667,788 | 2,167,082 | |
Commercial real estate | 2,670,455 | 2,177,543 | $ 1,265,868 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 1,829 | 16 | |
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 72 | 176 | |
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 766 | 10,269 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 21,451 | 13,809 | |
Current Loans | 1,949,709 | 1,598,860 | |
Commercial and industrial | 1,971,160 | 1,612,669 | 781,824 |
Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 20,910 | 884 | |
Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 495 | 670 | |
Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 46 | 12,255 | |
Construction and Land [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 19,800 | 623 | |
Current Loans | 275,094 | 269,085 | |
Construction and land | 294,894 | 269,708 | 21,298 |
Construction and Land [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 19,517 | 623 | |
Construction and Land [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 283 | 0 | |
Construction and Land [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 0 | 0 | |
Consumer Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 13,602 | 16,801 | |
Current Loans | 1,061,321 | 919,956 | |
Consumer real estate | 1,074,923 | 936,757 | 524,199 |
Consumer Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 10,487 | 10,880 | |
Consumer Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 1,916 | 2,463 | |
Consumer Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 1,199 | 3,458 | |
Other consumer [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 1,560 | 500 | |
Current Loans | 52,431 | 69,330 | |
Other consumer | 53,991 | 69,830 | $ 40,491 |
Other consumer [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 1,523 | 463 | |
Other consumer [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | 31 | 37 | |
Other consumer [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Past Due | $ 6 | $ 0 |
LOANS - Real Estate and Commerc
LOANS - Real Estate and Commercial and Industrial Credit Exposure Credit Risk Profile by Internally Assigned Grade (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial Real Estate | $ 2,670,455 | $ 2,177,543 | $ 1,265,868 |
Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial Real Estate | 2,648,842 | 2,135,539 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial Real Estate | 7,972 | 13,633 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial Real Estate | 12,875 | 27,572 | |
Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial Real Estate | 766 | 799 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial and Industrial | 1,971,160 | 1,612,669 | 781,824 |
Commercial and Industrial [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial and Industrial | 1,712,171 | 1,460,725 | |
Commercial and Industrial [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial and Industrial | 155,110 | 92,048 | |
Commercial and Industrial [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial and Industrial | 103,815 | 59,835 | |
Commercial and Industrial [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Commercial and Industrial | 64 | 61 | |
Construction and Land [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction and Land | 294,894 | 269,708 | 21,298 |
Construction and Land [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction and Land | 283,423 | 269,582 | |
Construction and Land [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction and Land | 0 | 0 | |
Construction and Land [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction and Land | 11,471 | 93 | |
Construction and Land [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Construction and Land | 0 | 33 | |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Consumer Real Estate | 1,074,923 | 936,757 | $ 524,199 |
Consumer Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Consumer Real Estate | 1,062,549 | 920,519 | |
Consumer Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Consumer Real Estate | 2,083 | 3,327 | |
Consumer Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Consumer Real Estate | 8,252 | 9,606 | |
Consumer Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Consumer Real Estate | $ 2,039 | $ 3,305 |
LOANS - Consumer Credit Exposur
LOANS - Consumer Credit Exposure Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | |||
Non-performing | $ 111,389 | $ 38,216 | |
Total | 53,991 | 69,830 | |
Other consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Non-performing | 158 | 107 | |
Total | 53,991 | 69,830 | $ 40,491 |
Performing Financing Receivable [Member] | Other Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | $ 53,833 | $ 69,723 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Fair Value Disclosures [Abstract] | |
Mortgage loans on real estate, pending foreclosures | $ 92 |
FAIR VALUE - Summary of Fair Va
FAIR VALUE - Summary of Fair Value Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 354,515 | $ 311,708 |
Loans held for sale | 21,279 | 22,535 |
Outstanding principal | 20,946 | 21,851 |
Interest Rate Lock Commitments [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 379 | 421 |
Derivative liability | 0 | 0 |
Forward Mortgage Backed Securities Trades [Member] | Not Designated as Hedging Instrument [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 36 | 15 |
Derivative liability | 80 | 29 |
Financial Institution Counterparty [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 1,369 | 0 |
Derivative liability | 0 | 260 |
Agency Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 218,551 | 223,848 |
Agency Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,347 | 9,417 |
Agency Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,529 | 22,314 |
US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,251 | 15,054 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 37,837 | 41,075 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 354,515 | 311,708 |
Loans held for sale | 21,279 | 22,535 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Loan Customer Counterparty [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Commercial Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 260 |
Derivative liability | 1,369 | 0 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Residential Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 218,551 | 223,848 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Commercial Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 9,347 | 9,417 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Agency Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 86,529 | 22,314 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,251 | 15,054 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 37,837 | $ 41,075 |
FAIR VALUE - Summary of Fair 71
FAIR VALUE - Summary of Fair Value Measured on Nonrecurring Basis (Details) - Fair Value, Inputs, Level 3 [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 9,274 | $ 2,230 |
Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 10,638 | 4,784 |
Construction and Land [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 194 | 1,802 |
Consumer Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | 0 | 106 |
Other Portfolio Segment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets | $ 6 | $ 0 |
FAIR VALUE - Carrying Amount an
FAIR VALUE - Carrying Amount and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 289,212 | $ 615,639 | $ 132,021 | $ 87,974 |
Securities held to maturity | 210,387 | 240,433 | ||
Securities held to maturity | 212,981 | 247,202 | ||
Loans held for investment, net | 5,998,596 | 5,017,554 | ||
Loans held for investment - Warehouse Purchase Program | 1,055,341 | 1,043,719 | ||
Federal Home Loan Bank (FHLB) stock and other restricted securities, at cost | 43,266 | 63,075 | ||
Accrued interest receivable | 20,347 | 17,109 | ||
Deposits | 6,365,476 | 5,226,711 | ||
FHLB advances | 833,682 | 1,439,904 | ||
Repurchase agreements | 86,691 | 83,269 | ||
Subordinated debt | 134,032 | 84,992 | ||
Accrued interest payable | 2,111 | 1,653 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 289,212 | 615,639 | ||
Accrued interest receivable | 20,347 | 17,109 | ||
Accrued interest payable | 2,111 | 1,653 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Securities held to maturity | 212,981 | 247,202 | ||
Federal Home Loan Bank (FHLB) stock and other restricted securities, at cost | 43,266 | 63,075 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans held for investment, net | 6,080,165 | 5,083,093 | ||
Loans held for investment - Warehouse Purchase Program | 1,055,219 | 1,042,434 | ||
Deposits | 5,989,933 | 4,920,648 | ||
FHLB advances | 830,930 | 1,433,125 | ||
Repurchase agreements | 84,265 | 81,956 | ||
Subordinated debt | $ 121,743 | $ 85,771 |
DERIVATIVE FINANCIAL INSTRUME73
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Outstanding Notional Balances and Fair Values of Outstanding Positions (Details) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Asset, Outstanding Notional Balance | $ 10,952 | $ 12,518 |
Asset, Fair Value | 379 | 421 |
Liability, Fair Value | 0 | 0 |
Forward Mortgage Backed Securities Trades [Member] | ||
Derivative [Line Items] | ||
Asset, Outstanding Notional Balance | 18,613 | 20,374 |
Asset, Fair Value | 36 | 15 |
Liability, Fair Value | 80 | 29 |
Loan Customer Counterparty [Member] | Commercial Loan [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Asset, Outstanding Notional Balance | 112,294 | 24,796 |
Financial Institution Counterparty [Member] | Commercial Loan [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Asset, Fair Value | 1,369 | 0 |
Liability, Outstanding Notional Balance | 112,294 | 24,796 |
Liability, Fair Value | 0 | 260 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Loan Customer Counterparty [Member] | Commercial Loan [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Asset, Fair Value | 0 | 260 |
Liability, Fair Value | $ 1,369 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME74
DERIVATIVE FINANCIAL INSTRUMENTS - Schedule of Notional Amounts of Outstanding Derivative Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative, collateral pledged | $ 1,950 | $ 300 | |
Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Credit exposure | 118 | ||
Interest Rate Lock Commitments [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain/loss | (43) | 8 | $ 0 |
Forward Mortgage Backed Securities Trades [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain/loss | 13 | $ (195) | $ 0 |
Financial Institution Counterparty [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Credit exposure | $ 1,335 | ||
Loan Customer Counterparty [Member] | Commercial Loan [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Commercial loan/lease interest rate swaps. Weighted-Average Interest Rate Received | 3.12% | 5.01% | |
Commercial loan/lease interest rate swaps. Weighted-Average Interest Rate Paid | 2.36% | 3.37% |
PREMISES AND EQUIPMENT - (Detai
PREMISES AND EQUIPMENT - (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 110,169 | $ 112,757 |
Less: accumulated depreciation | (35,943) | (35,120) |
Total | 74,226 | 77,637 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Land | 23,636 | 25,546 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Buildings | 59,298 | 60,807 |
Furniture, fixtures and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, fixtures and equipment | 19,561 | 18,848 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $ 7,674 | $ 7,556 |
PREMISES AND EQUIPMENT - Rent C
PREMISES AND EQUIPMENT - Rent Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Property, Plant and Equipment [Abstract] | |
2,017 | $ 6,218 |
2,018 | 5,634 |
2,019 | 4,791 |
2,020 | 4,424 |
2,021 | 4,238 |
Thereafter | 20,572 |
Total | $ 45,877 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2017USD ($) | Dec. 31, 2016USD ($)Parcel_of_land | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation | $ 6,186 | $ 6,550 | $ 4,047 | |
Rent expense | 7,928 | $ 6,895 | $ 2,317 | |
Rental income | 704 | |||
Rent payments receivable in the future | $ 1,087 | |||
Number of parcels held for development | Parcel_of_land | 2 | |||
Subsequent Event [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain on sale of land | $ 1,304 |
GOODWILL AND CORE DEPOSIT INT78
GOODWILL AND CORE DEPOSIT INTANGIBLES - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill, Balance at beginning of the period | $ 180,776 | $ 29,650 |
LegacyTexas Group, Inc. acquisition | 151,126 | |
Disposition of insurance subsidiary goodwill upon the sale of subsidiary operations | (2,217) | |
Goodwill, Balance at end of the period | 178,559 | 180,776 |
Core Depoit Intangible [Roll Forward] | ||
Core Deposit Intangible, Balance at beginning of period | 1,030 | 616 |
LegacyTexas Group, Inc. acquisition | 880 | |
Amortization of core deposit intangible | (365) | (466) |
Core Deposit Intangible, Balance at end of period | $ 665 | $ 1,030 |
GOODWILL AND CORE DEPOSIT INT79
GOODWILL AND CORE DEPOSIT INTANGIBLES - Estimated Aggregate Future Amortization Expense for Intangible Assets Remaining (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 263 |
2,018 | 156 |
2,019 | 101 |
2,020 | 73 |
2,021 | 48 |
Thereafter | $ 24 |
GOODWILL AND CORE DEPOSIT INT80
GOODWILL AND CORE DEPOSIT INTANGIBLES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Core Deposits [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of core deposit intangibles | 8 years |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
FDIC insured amount | $ 250,000 | |
Time deposits, $250,000 or more | 951,688,000 | $ 503,719,000 |
Brokered deposits | 355,455,000 | 371,692,000 |
Deposits of public funds | 1,001,820,000 | 708,723,000 |
Unsecured customer loans | 340,000 | $ 1,177,000 |
Certificates of Deposit [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
FDIC insured amount | 50,000,000 | |
Money Market Funds [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
FDIC insured amount | $ 75,000,000 |
DEPOSITS - Scheduled Maturity o
DEPOSITS - Scheduled Maturity of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 992,786 | |
2,018 | 256,150 | |
2,019 | 29,019 | |
2,020 | 22,858 | |
2021 and thereafter | 67,091 | |
Time Deposit Maturities, Total | $ 1,367,904 | $ 1,027,391 |
Weighted Average Rate of Time Deposits [Abstract] | ||
2,017 | 0.73% | |
2,018 | 0.99% | |
2,019 | 0.98% | |
2,020 | 1.39% | |
2021 and thereafter | 1.65% | |
Weighted Average Interest Rate, Maturities, Total | 0.84% |
DEPOSITS - Interest Expense on
DEPOSITS - Interest Expense on Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Banking and Thrift [Abstract] | |||
Interest-bearing demand | $ 3,974 | $ 3,297 | $ 1,653 |
Savings and money market | 7,288 | 3,644 | 3,144 |
Time | 9,772 | 6,186 | 3,415 |
Total | $ 21,034 | $ 13,127 | $ 8,212 |
BORROWED FUNDS - Schedule of De
BORROWED FUNDS - Schedule of Debt (Details) - USD ($) | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Nov. 30, 2015 |
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances | $ 833,682,000 | $ 1,439,904,000 | ||
Repurchase agreements | 86,691,000 | 83,269,000 | ||
CREDIT SUISSE (US) [Member] | ||||
Debt Instrument [Line Items] | ||||
Repurchase agreements | 25,000,000 | 25,000,000 | ||
Maturity Overnight [Member] | ||||
Debt Instrument [Line Items] | ||||
Repurchase agreements | 61,691,000 | 58,269,000 | ||
Legacy Capital Trust III [Member] | ||||
Debt Instrument [Line Items] | ||||
Junior Subordinated Notes | $ 15,464,000 | $ 15,464,000 | ||
Federal Home Loan Bank Advances [Member] | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances, rate | 0.71% | 0.51% | ||
Federal Home Loan Bank Advances [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Federal Home Loan Bank advances, rate | 6.00% | 6.00% | ||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, rate | 5.58% | 5.69% | 5.50% | 5.50% |
Subordinated debt | $ 125,000,000 | $ 50,000,000 | $ 75,000,000 | $ 75,000,000 |
Repurchase Agreements [Member] | Maturity Overnight [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, rate | 0.15% | 0.16% | ||
Repurchase Agreements [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt, rate | 3.02% | 3.22% | ||
London Interbank Offered Rate (LIBOR) [Member] | Trust III Debentures [Member] | Junior Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Subordinated debt, rate | 2.66% | 2.21% |
BORROWED FUNDS - FHLB Advances
BORROWED FUNDS - FHLB Advances (Details) - Federal Home Loan Bank Advances [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, interest rate, minimum | 0.71% | 0.51% |
Variable rate federal home loan bank advances outstanding | $ 800,000 | |
Restructuring prepayment penalty | 27 | $ 456 |
Credit available based on collateralized values | 1,821,693 | 1,030,732 |
Maximum borrowing capacity | 3,601,739 | 3,025,653 |
Mortgage and Commercial Loans With Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, collateral pledges | $ 1,877,506 | $ 1,461,248 |
Minimum [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, interest rate, minimum | 0.46% | 0.28% |
Maximum [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Federal home loan bank, interest rate, minimum | 6.00% | 6.00% |
BORROWED FUNDS - Repurchase Agr
BORROWED FUNDS - Repurchase Agreement (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | ||
Repurchase agreements | $ 86,691 | $ 83,269 |
Repurchase Agreements [Member] | ||
Investment Holdings [Line Items] | ||
Term of repurchase agreement | 10 years | |
Variable rate on repurchase agreement | 6.25% | |
Maturity Overnight [Member] | ||
Investment Holdings [Line Items] | ||
Assets sold under agreements to repurchase, market value protection percentage | 115.00% | |
Repurchase agreements | $ 61,691 | $ 58,269 |
Maturity Overnight [Member] | Repurchase Agreements [Member] | ||
Investment Holdings [Line Items] | ||
Interest rate maximum on repurchase agreement | 0.15% | 0.16% |
CREDIT SUISSE (US) [Member] | ||
Investment Holdings [Line Items] | ||
Assets sold under agreements to repurchase, market value protection percentage | 112.00% | |
Repurchase agreements | $ 25,000 | $ 25,000 |
Maximum [Member] | Repurchase Agreements [Member] | ||
Investment Holdings [Line Items] | ||
Interest rate maximum on repurchase agreement | 3.02% | 3.22% |
BORROWED FUNDS - Subordinated D
BORROWED FUNDS - Subordinated Debt and Other Borrowings (Details) - USD ($) | Jan. 01, 2015 | Nov. 30, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||
Trust preferred securities, purchase accounting adjustments | $ 3,723,000 | $ 3,905,000 | |||
Long-term debt | 1,060,864,000 | ||||
Borrowing capacity | 255,000,000 | 285,000,000 | |||
Federal Reserve Bank [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 46,725,000 | 35,632,000 | |||
Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt face amount | $ 75,000,000 | $ 125,000,000 | $ 50,000,000 | $ 75,000,000 | |
Debt, rate | 5.50% | 5.58% | 5.69% | 5.50% | |
Redemption price | 100.00% | ||||
Unamortized discount | $ 2,709,000 | ||||
Long-term debt | $ 140,464,000 | ||||
Notes Payable, Other Payables [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 8,900,000 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.89% | ||||
Trust III Debentures [Member] | London Interbank Offered Rate (LIBOR) [Member] | Junior Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.70% | ||||
Long-term debt, percentage bearing variable interest, percentage rate | 2.66% | 2.21% | |||
Legacy Capital Trust III [Member] | |||||
Debt Instrument [Line Items] | |||||
Trust preferred securities, value | $ 15,000,000 | ||||
Trust preferred securities purchased (in shares) | 15,000 | ||||
Trust preferred securities, liquidation amount (in dollars per share) | $ 1,000 | ||||
Common stock, value | $ 464,000 | ||||
Junior Subordinated Notes | $ 15,464,000 | $ 15,464,000 | |||
Legacy Capital Trust II [Member] | |||||
Debt Instrument [Line Items] | |||||
Trust preferred securities, value | 15,000,000 | ||||
Common stock, value | $ 464,000 |
BORROWED FUNDS - Pay Down Sched
BORROWED FUNDS - Pay Down Schedule (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Long-term Debt [Line Items] | |
2,017 | $ 677,237 |
2,018 | 237,754 |
2,019 | 2,314 |
2,020 | 931 |
2,021 | 856 |
Thereafter | 141,772 |
Total, Balance | 1,060,864 |
Federal Home Loan Bank Advances [Member] | |
Long-term Debt [Line Items] | |
2,017 | 615,546 |
2,018 | 212,754 |
2,019 | 2,314 |
2,020 | 931 |
2,021 | 856 |
Thereafter | 1,308 |
Total, Balance | 833,709 |
Repurchase Agreements [Member] | |
Long-term Debt [Line Items] | |
2,017 | 61,691 |
2,018 | 25,000 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 0 |
Total, Balance | 86,691 |
Subordinated Debt [Member] | |
Long-term Debt [Line Items] | |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Thereafter | 140,464 |
Total, Balance | $ 140,464 |
BENEFITS - KSOP 401K (Details)
BENEFITS - KSOP 401K (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Employee stock ownership plan (ESOP), cash contributions | $ 1,468 | $ 2,060 | ||
ESOP compensation expense | 3,955 | 5,751 | $ 5,557 | |
Employee Stock Ownership Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Recourse provision minimum | 30 years | |||
Net proceeds from long-term debt | $ 15,886 | |||
ESOP compensation expense | $ 3,174 | 4,914 | 4,725 | |
Common Stock [Member] | Employee Stock Ownership Plan [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
Contributed to ESOP (in shares) | 1,588,587 | |||
KSOP with 401k Match [Member] | ||||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ||||
401(k) plan, employer matching percentage of qualifying contributions | 100.00% | |||
401(k) plan, employer matching contribution of qualifying compensation percent | 5.00% | |||
401(k) plan, cost recognized | $ 2,479 | $ 2,130 | $ 1,283 |
BENEFITS - Deferred Compensatio
BENEFITS - Deferred Compensation Plan and Bank-Owned Life Insurance (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 80,397 | $ 63,633 |
Bank-owned life insurance | 56,477 | 55,231 |
Non Qualified Deferred Comp [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Deferred compensation accrued liability | 3,344 | 4,086 |
Non Qualified Deferred Comp [Member] | Life Insurance, Variable Annuity Contracts, and Fixed Annuity Contracts [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other assets | $ 3,534 | $ 4,272 |
BENEFITS - ESOP table (Details)
BENEFITS - ESOP table (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Allocated to participants | 1,643,294 | 1,522,883 |
Unearned | 1,245,046 | 1,365,457 |
Total ESOP shares | 2,888,340 | 2,888,340 |
Fair value of unearned shares at December 31 (in USD) | $ 53,612 | $ 34,164 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Contractual term | 10 years | 10 years | 10 years |
Options, grants in period, weighted average grant date fair value (in dollars per share) | $ 7.77 | $ 6.82 | $ 7.17 |
Options, expected forfeiture rate | 5.00% | ||
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense related to non-vested shares | $ 5,398 | ||
Weighted-average period | 1 year 4 months 24 days | ||
Vested, weighted-average grant date fair value | $ 2,615 | $ 3,113 | |
Total restricted shares available for future issuance (in shares) | 64,009 | ||
Total shares issued under the plan (in shares) | 1,409,004 | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation expense related to non-vested shares | $ 7,091 | ||
Weighted-average period | 2 years 5 months 13 days | ||
Contractual term | 10 years | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 3,370,040 | ||
Restricted stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized (in shares) | 1,348,016 |
SHARE-BASED COMPENSATION - Comp
SHARE-BASED COMPENSATION - Compensation Cost Charged to Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation cost charged to income for: | |||
Income tax benefit | $ 2,105 | $ 1,917 | $ 1,301 |
Restricted stock [Member] | |||
Compensation cost charged to income for: | |||
Compensation cost | 3,477 | 3,459 | 2,561 |
Stock options [Member] | |||
Compensation cost charged to income for: | |||
Compensation cost | $ 2,537 | $ 2,018 | $ 1,156 |
SHARE-BASED COMPENSATION - Chan
SHARE-BASED COMPENSATION - Changes in the Nonvested Shares for the Company's Stock Plans (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Time-Vested Restricted Stock [Member] | |||
Shares | |||
Non-vested Shares, Beginning (in shares) | 246,461 | 297,603 | 381,402 |
Granted | 55,180 | 80,000 | 20,000 |
Vested | (101,465) | (131,142) | (103,799) |
Non-vested Shares, Ending (in shares) | 200,176 | 246,461 | 297,603 |
Weighted-average grant date fair value ($ per share) | |||
Non-vested Shares, Beginning, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 20.98 | $ 20.45 | $ 20.39 |
Granted | 29.29 | 21.23 | 24.69 |
Vested | 20.70 | 19.98 | 20.32 |
Non-vested Shares, Ending, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 23.79 | $ 20.98 | $ 20.45 |
Performance-Based Restricted Stock [Member] | |||
Shares | |||
Non-vested Shares, Beginning (in shares) | 61,800 | 82,400 | 82,400 |
Granted | 40,200 | 0 | 0 |
Vested | (20,600) | (20,600) | 0 |
Non-vested Shares, Ending (in shares) | 81,400 | 61,800 | 82,400 |
Weighted-average grant date fair value ($ per share) | |||
Non-vested Shares, Beginning, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 25.02 | $ 23.89 | $ 27.45 |
Granted | 29.29 | 0 | 0 |
Vested | 25.02 | 23.89 | 0 |
Non-vested Shares, Ending, Weighted-Average Grant Date Fair Value (in dollars per share) | $ 43.06 | $ 25.02 | $ 23.89 |
SHARE-BASED COMPENSATION - Unde
SHARE-BASED COMPENSATION - Underlying Assumptions for Fair Value Calculations (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate | 1.37% | 1.80% | 2.16% |
Expected term of stock options (years) | 6 years 3 months 16 days | 6 years 2 months 28 days | 6 years 2 months 28 days |
Expected stock price volatility | 32.07% | 31.14% | 30.96% |
Expected dividends | 1.93% | 1.95% | 1.84% |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Activity in the Stock Option Portion of the Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | ||||
Beginning (shares) | 1,865,750 | 1,370,873 | 1,173,618 | |
Granted (shares) | 392,838 | 633,000 | 328,750 | |
Exercised (shares) | (175,192) | (58,855) | (56,035) | |
Forfeited (shares) | (75,316) | (79,268) | (75,460) | |
Ending (shares) | 2,008,080 | 1,865,750 | 1,370,873 | 1,173,618 |
Fully vested and expected to vest (shares) | 1,990,524 | |||
Exercisable (shares) | 719,156 | |||
Weighted- Average Exercise Price ($ per share) | ||||
Beginning ($ per share) | $ 22.21 | $ 20.27 | $ 18.16 | |
Granted ($ per share) | 29.15 | 25.66 | 26.09 | |
Exercised ($ per share) | 19.08 | 16.12 | 13.66 | |
Forfeited ($ per share) | 25.57 | 20.89 | 17.63 | |
Ending ($ per share) | 23.71 | $ 22.21 | $ 20.27 | $ 18.16 |
Fully vested and expected to vest ($ per share) | 23.68 | |||
Exercisable ($ per share) | $ 20.51 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||||
Weighted-Average Remaining Contractual Term, Outstanding | 7 years 4 months 24 days | 7 years 10 months 8 days | 8 years 8 days | 8 years 5 months 1 day |
Weighted-Average Remaining Contractual Term, Granted | 10 years | 10 years | 10 years | |
Weighted-Average Remaining Contractual Term, Fully vested and expected to vest | 7 years 4 months 19 days | |||
Weighted-Average Remaining Contractual Term, Exercisable | 6 years 2 months | |||
Aggregate Intrinsic Value, Outstanding Balance, Beginning | $ 6,401 | $ 5,679 | $ 10,903 | |
Aggregate Intrinsic Value, Exercised | 2,251 | 644 | 652 | |
Aggregate Intrinsic Value, Outstanding Balance, Ending | 38,850 | $ 6,401 | $ 5,679 | $ 10,903 |
Aggregate Intrinsic Value, Fully vested and expected to vest | 38,585 | |||
Aggregate Intrinsic Value, Exercisable | $ 16,218 |
INCOME TAXES - Expense (Detail
INCOME TAXES - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current expense | $ 59,900 | $ 38,648 | $ 19,073 |
Deferred expense | (6,798) | (692) | (1,414) |
Total income tax expense | $ 53,102 | $ 37,956 | $ 17,659 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 22,602 | $ 16,483 |
Deferred compensation arrangements | 1,261 | 1,536 |
Self-funded health insurance | 241 | 203 |
Non-accrual interest | 966 | 632 |
Restricted stock and stock options | 3,132 | 2,275 |
Accrued expenses | 1,255 | 715 |
Fair value mark on purchased loans | 2,348 | 3,838 |
Net unrealized loss on securities available for sale | 1,465 | 72 |
Other | 2,121 | 811 |
Total | 35,391 | 26,565 |
Deferred tax liabilities: | ||
Depreciation | (336) | (1,011) |
Partnerships — CRA-purposed private equity funds | (1,697) | (1,328) |
Fair value mark on subordinated debt | (1,303) | (1,367) |
Other | (2,824) | (1,819) |
Deferred Tax Liabilities, Gross | (6,160) | (5,525) |
Net deferred tax asset | $ 29,231 | $ 21,040 |
INCOME TAXES - Effective Tax Ra
INCOME TAXES - Effective Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate times financial statement income | $ 52,823 | $ 38,105 | $ 17,128 |
Effect of: | |||
State taxes, net of federal benefit | 267 | 37 | 66 |
Tax credit on CRA-purposed private equity fund | 0 | 0 | (58) |
Bank-owned life insurance income | (436) | (419) | (220) |
Municipal interest income | (1,041) | (1,025) | (772) |
ESOP shares released | 757 | 1,207 | 1,140 |
One-time merger expenses | 0 | 0 | 381 |
Sale of LegacyTexas Insurance Services, Inc. | 640 | 0 | 0 |
Other | 92 | 51 | (6) |
Total income tax expense | $ 53,102 | $ 37,956 | $ 17,659 |
Effective Tax Rate | 35.18% | 34.86% | 36.09% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Federal income tax and state margin tax | 36.00% |
Federal statutory rate | 35.00% |
RELATED PARTY TRANSACTIONS - Lo
RELATED PARTY TRANSACTIONS - Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Loans, Related Parties [Roll Forward] | |
Beginning balance | $ 15,365 |
New loans | 21 |
Effect of changes in composition of related parties | 0 |
Repayments | (49) |
Ending balance | $ 15,337 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transactions [Abstract] | ||
Related party deposits | $ 48,761 | $ 44,907 |
REGULATORY CAPITAL MATTERS - Le
REGULATORY CAPITAL MATTERS - Levels and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
the Company [Member] | ||
Total risk-based capital | ||
Actual, Amount | $ 910,040 | $ 755,689 |
Actual, Ratio | 11.71% | 11.58% |
Required for Capital Adequacy Purposes, Amount | $ 621,870 | $ 522,107 |
Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
To Be Well-Capitalized, Amount | $ 777,338 | $ 652,634 |
To Be Well-Capitalized, Ratio | 10.00% | 10.00% |
Tier 1 risk-based capital | ||
Actual, Amount | $ 721,600 | $ 635,162 |
Actual, Ratio | 9.28% | 9.73% |
Required for Capital Adequacy Purposes, Amount | $ 466,403 | $ 391,580 |
Required for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
To Be Well-Capitalized, Amount | $ 466,403 | $ 391,580 |
To Be Well-Capitalized, Ratio | 6.00% | 6.00% |
Common equity tier 1 risk-based capital | ||
Actual, Amount | $ 709,858 | $ 623,604 |
Actual, Ratio | 9.13% | 9.56% |
Required for Capital Adequacy Purposes, Amount | $ 349,802 | $ 293,685 |
Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier 1 leverage | ||
Actual, Amount | $ 721,600 | $ 635,162 |
Actual, Ratio | 8.73% | 9.46% |
Required for Capital Adequacy Purposes, Amount | $ 330,782 | $ 268,430 |
Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
the Bank [Member] | ||
Total risk-based capital | ||
Actual, Amount | $ 869,523 | $ 691,554 |
Actual, Ratio | 11.19% | 10.60% |
Required for Capital Adequacy Purposes, Amount | $ 621,840 | $ 522,116 |
Required for Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
To Be Well-Capitalized, Amount | $ 777,300 | $ 652,645 |
To Be Well-Capitalized, Ratio | 10.00% | 10.00% |
Tier 1 risk-based capital | ||
Actual, Amount | $ 803,374 | $ 644,461 |
Actual, Ratio | 10.34% | 9.87% |
Required for Capital Adequacy Purposes, Amount | $ 466,380 | $ 391,587 |
Required for Capital Adequacy Purposes, Ratio | 6.00% | 6.00% |
To Be Well-Capitalized, Amount | $ 621,840 | $ 522,116 |
To Be Well-Capitalized, Ratio | 8.00% | 8.00% |
Common equity tier 1 risk-based capital | ||
Actual, Amount | $ 803,374 | $ 644,461 |
Actual, Ratio | 10.34% | 9.87% |
Required for Capital Adequacy Purposes, Amount | $ 349,785 | $ 293,690 |
Required for Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
To Be Well-Capitalized, Amount | $ 505,245 | $ 424,219 |
To Be Well-Capitalized, Ratio | 6.50% | 6.50% |
Tier 1 leverage | ||
Actual, Amount | $ 803,374 | $ 644,461 |
Actual, Ratio | 9.71% | 9.61% |
Required for Capital Adequacy Purposes, Amount | $ 330,873 | $ 268,273 |
Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
To Be Well-Capitalized, Amount | $ 413,591 | $ 335,341 |
To Be Well-Capitalized, Ratio | 5.00% | 5.00% |
COMMITMENTS AND CONTINGENT L104
COMMITMENTS AND CONTINGENT LIABILITIES - Table (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Unused Capacity on Warehouse Purchase Program Loans [Member] | ||
Other Commitments [Line Items] | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 892,659 | $ 476,281 |
Commitments [Member] | ||
Other Commitments [Line Items] | ||
Total unused commitments/capacity | 2,564,385 | 1,706,889 |
Commitments to Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Fair value disclosure, off-balance sheet risks, amount, liability | 1,642,528 | 1,211,964 |
Unused lines of Credit [Member] | Standby letters of credit [Member] | ||
Other Commitments [Line Items] | ||
Fair value disclosure, off-balance sheet risks, amount, liability | $ 29,198 | $ 18,644 |
COMMITMENTS AND CONTINGENT L105
COMMITMENTS AND CONTINGENT LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Commitments [Line Items] | ||
Overdraft protection | $ 85,709 | $ 87,077 |
Unfunded commitments | 2,080 | |
Investment in Community Reinvestment Act private equity funds | $ 11,168 | |
Investment in Community Reinvestment Act private equity funds, ownership | 5.30% | |
Other Liabilities [Member] | ||
Other Commitments [Line Items] | ||
Mortgage repurchase liability | $ 143 | 147 |
Federal Home Loan Bank Certificates and Obligations (FHLB) [Member] | ||
Other Commitments [Line Items] | ||
Letters of credit pledged as collateral | 946,338 | |
Financial Guarantee [Member] | ||
Other Commitments [Line Items] | ||
Credit card guarantees | 3,335 | $ 1,028 |
Reserve for Off-balance Sheet Activities [Member] | Other Liabilities [Member] | ||
Other Commitments [Line Items] | ||
Valuation reserves | $ 1,500 |
PARENT COMPANY ONLY CONDENSE106
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash on deposit at subsidiary | $ 59,823 | $ 53,847 |
Total assets | 8,362,255 | 7,691,940 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Long-term Debt | 1,060,864 | |
Other liabilities | 57,009 | 52,988 |
Total liabilities and shareholders’ equity | 8,362,255 | 7,691,940 |
the Company [Member] | ||
ASSETS | ||
Cash on deposit at subsidiary | 16,962 | 42,980 |
Investment in banking subsidiary | 978,880 | 824,933 |
Receivable from banking subsidiary | 10,317 | 7,456 |
ESOP note receivable and other assets | 13,999 | 14,498 |
Total assets | 1,020,158 | 889,867 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Long-term Debt | 134,032 | 84,992 |
Other liabilities | 761 | 799 |
Shareholders’ equity | 885,365 | 804,076 |
Total liabilities and shareholders’ equity | $ 1,020,158 | $ 889,867 |
PARENT COMPANY ONLY CONDENSE107
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 10,413 | $ 9,431 | $ 7,982 | $ 7,257 | $ 5,840 | $ 5,337 | $ 5,146 | $ 5,292 | $ 35,083 | $ 21,615 | $ 16,640 |
Income before income tax expense | 150,923 | 108,872 | 48,937 | ||||||||
Income tax benefit | (53,102) | (37,956) | (17,659) | ||||||||
Net income | 97,821 | 70,916 | 31,278 | ||||||||
Parent Company [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Cash dividends from subsidiary | 0 | 24,500 | 19,187 | ||||||||
Excess of earnings over dividend from subsidiary | 103,572 | 48,677 | 20,044 | ||||||||
Interest income on ESOP loan | 487 | 565 | 633 | ||||||||
Interest income on subordinated debt | 11 | 17 | 0 | ||||||||
Other income | 0 | 5 | 0 | ||||||||
Income (Loss) from Subsidiaries, before Tax | 104,070 | 73,764 | 39,864 | ||||||||
Interest expense | 6,040 | 1,046 | 0 | ||||||||
Operating expenses | 3,236 | 3,009 | 13,036 | ||||||||
Income before income tax expense | 94,794 | 69,709 | 26,828 | ||||||||
Income tax benefit | 3,027 | 1,207 | 4,450 | ||||||||
Net income | $ 97,821 | $ 70,916 | $ 31,278 |
PARENT COMPANY ONLY CONDENSE108
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net income | $ 97,821 | $ 70,916 | $ 31,278 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Net change in other assets | (2,947) | 8,444 | 117 |
Net change in other liabilities | 5,913 | (16,250) | (2,571) |
Net cash provided by operating activities | 132,448 | 89,202 | 52,024 |
Cash flows from investing activities | |||
Cash received in excess of cash paid for acquisition of LegacyTexas Group, Inc. | 0 | 128,598 | 0 |
Net cash (used in) investing activities | (1,019,429) | (1,131,445) | (606,856) |
Cash flows from financing activities | |||
Repayments of borrowings | (24,929) | (32,953) | 0 |
Share repurchase | 0 | (7,989) | 0 |
Payment of dividends | (27,676) | (25,747) | (19,187) |
Net cash provided by financing activities | 560,554 | 1,525,861 | 598,879 |
Net change in cash and cash equivalents | (326,427) | 483,618 | 44,047 |
Beginning cash and cash equivalents | 615,639 | 132,021 | 87,974 |
Ending cash and cash equivalents | 289,212 | 615,639 | 132,021 |
the Company [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net income | 97,821 | 70,916 | 31,278 |
Adjustments to reconcile net income to net cash from operating activities: | |||
Excess of earnings over dividend from subsidiary | (103,572) | (48,677) | (20,044) |
Amortization | 530 | 171 | 0 |
Activity in share-based compensation plans | 3,152 | 3,068 | 3,096 |
Net change in intercompany receivable | 0 | 0 | (31,395) |
Net change in other assets | (481) | 6,931 | (1,820) |
Net change in other liabilities | (38) | (14,544) | 4,134 |
Net cash provided by operating activities | (2,588) | 17,865 | (14,751) |
Cash flows from investing activities | |||
Capital contribution (to) from subsidiary | (49,000) | (40,000) | 31,395 |
Cash received in excess of cash paid for acquisition of LegacyTexas Group, Inc. | 0 | 201 | 0 |
Payments received on ESOP notes receivable | 981 | 1,495 | 1,427 |
Net cash (used in) investing activities | (48,019) | (38,304) | 32,822 |
Cash flows from financing activities | |||
Proceeds from borrowings | 73,439 | 73,407 | 0 |
Repayments of borrowings | (24,929) | (24,364) | 0 |
Share repurchase | 0 | (7,989) | 0 |
Net issuance of common stock under employee stock plans | 3,755 | 1,284 | 1,085 |
Payment of dividends | (27,676) | (25,747) | (19,187) |
Net cash provided by financing activities | 24,589 | 16,591 | (18,102) |
Net change in cash and cash equivalents | (26,018) | (3,848) | (31) |
Beginning cash and cash equivalents | 42,980 | 46,828 | 46,859 |
Ending cash and cash equivalents | $ 16,962 | $ 42,980 | $ 46,828 |
QUARTERLY FINANCIAL DATA (Un109
QUARTERLY FINANCIAL DATA (Unaudited) - (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 84,497 | $ 82,911 | $ 77,336 | $ 72,608 | $ 69,582 | $ 66,525 | $ 64,967 | $ 61,618 | $ 317,352 | $ 262,692 | $ 149,647 |
Interest Expense | 10,413 | 9,431 | 7,982 | 7,257 | 5,840 | 5,337 | 5,146 | 5,292 | 35,083 | 21,615 | 16,640 |
Net interest income | 74,084 | 73,480 | 69,354 | 65,351 | 63,742 | 61,188 | 59,821 | 56,326 | 282,269 | 241,077 | 133,007 |
Provision for Credit Losses | 7,833 | 3,467 | 6,800 | 8,800 | 11,200 | 7,515 | 3,750 | 3,000 | 25,400 | 25,465 | 6,721 |
Securities Gains and (Losses) | (6) | (3) | 65 | 0 | 17 | (25) | 0 | 211 | |||
Net income | $ 25,305 | $ 27,217 | $ 23,217 | $ 22,082 | $ 16,446 | $ 17,895 | $ 20,251 | $ 16,324 | $ 97,821 | $ 70,916 | $ 31,278 |
Basic earnings per common share (in dollars per share) | $ 0.54 | $ 0.59 | $ 0.50 | $ 0.48 | $ 0.36 | $ 0.39 | $ 0.44 | $ 0.35 | $ 2.11 | $ 1.54 | $ 0.82 |
Diluted earnings per common share (in dollars per share) | $ 0.54 | $ 0.58 | $ 0.50 | $ 0.48 | $ 0.35 | $ 0.38 | $ 0.44 | $ 0.35 | $ 2.09 | $ 1.53 | $ 0.81 |