Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 26, 2019 | Jun. 30, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Veritex Holdings, Inc. | ||
Entity Central Index Key | 1,501,570 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 733,310 | ||
Entity Common Stock, Shares Outstanding | 54,538,601 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 84,449 | $ 149,044 |
Investment securities | 262,695 | 228,117 |
Loans held for sale | 1,258 | 841 |
Loans held for investment | 2,555,494 | 2,233,490 |
Allowance for loan losses | (19,255) | (12,808) |
Total loans held for investment, net | 2,536,239 | 2,220,682 |
Accrued interest receivable | 8,828 | 7,676 |
Bank-owned life insurance | 22,064 | 21,476 |
Bank premises, furniture and equipment, net | 78,409 | 75,251 |
Non-marketable equity securities | 22,822 | 13,732 |
Investment in unconsolidated subsidiary | 352 | 352 |
Other real estate owned | 0 | 449 |
Intangible assets, net of accumulated amortization of $7,528 and $3,468, respectively | 15,896 | 20,441 |
Goodwill | 161,447 | 159,452 |
Other assets | 14,091 | 14,518 |
Branch assets held for sale | 0 | 33,552 |
Total assets | 3,208,550 | 2,945,583 |
Deposits: | ||
Noninterest-bearing deposits | 626,283 | 612,830 |
Interest-bearing transaction and savings deposits | 1,313,161 | 1,200,487 |
Certificates and other time deposits | 682,984 | 465,313 |
Total deposits | 2,622,428 | 2,278,630 |
Accounts payable and accrued expenses | 5,413 | 5,098 |
Accrued interest payable and other liabilities | 5,361 | 5,446 |
Advances from Federal Home Loan Bank | 28,019 | 71,164 |
Subordinated debentures and subordinated notes | 16,691 | 16,689 |
Other borrowings | 0 | 15,000 |
Branch liabilities held for sale | 0 | 64,627 |
Total liabilities | 2,677,912 | 2,456,654 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized at December 31, 2018 and December 31, 2017, no shares issued and outstanding | 0 | 0 |
Common stock, $0.01 par value; 75,000,000 shares authorized at December 31, 2018 and December 31, 2017; 24,253,894 and 24,109,515 shares issued and outstanding at December 31, 2018 and December 31, 2017, (excluding 10,000 shares held in treasury) | 243 | 241 |
Additional paid-in capital | 449,427 | 445,517 |
Retained earnings | 83,968 | 44,627 |
Unallocated Employee Stock Ownership Plan shares; 9,771 shares at December 31, 2017 | 0 | (106) |
Accumulated other comprehensive loss | (2,930) | (1,280) |
Treasury stock, 10,000 shares at cost | (70) | (70) |
Total stockholders’ equity | 530,638 | 488,929 |
Total liabilities and stockholders’ equity | $ 3,208,550 | $ 2,945,583 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Accumulated amortization | $ 7,528 | $ 3,468 |
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 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 24,253,894 | 24,109,515 |
Common stock, shares outstanding (in shares) | 24,253,894 | 24,109,515 |
Unallocated Employee Stock Ownership Plan shares (in shares) | 0 | 9,771 |
Treasury stock, shares (in shares) | 10,000 | 10,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans, including fees | $ 134,460,000 | $ 73,795,000 | $ 44,681,000 |
Securities | 6,605,000 | 3,462,000 | 1,409,000 |
Deposits in financial institutions and fed funds sold | 3,149,000 | 2,287,000 | 503,000 |
Other investments | 20,000 | 8,000 | 2,000 |
Total interest income | 144,234,000 | 79,552,000 | 46,595,000 |
Interest expense: | |||
Transaction and savings deposits | 17,599,000 | 8,981,000 | 3,577,000 |
Certificates and other time deposits | 9,714,000 | 897,000 | 1,411,000 |
Subordinated debentures and subordinated notes | 1,701,000 | 531,000 | 0 |
Other borrowed funds | 1,031,000 | 635,000 | 652,000 |
Total interest expense | 30,045,000 | 11,044,000 | 5,640,000 |
Net interest income | 114,189,000 | 68,508,000 | 40,955,000 |
Provision for loan losses | 6,603,000 | 5,114,000 | 2,050,000 |
Net interest income after provision for loan losses | 107,586,000 | 63,394,000 | 38,905,000 |
Noninterest income: | |||
Service charges and fees on deposit accounts | 3,420,000 | 2,502,000 | 1,846,000 |
Loan fees | 1,332,000 | 657,000 | 320,000 |
(Loss) gain on sales of investment securities | (64,000) | 222,000 | 15,000 |
Gain on sales of loans and other assets owned | 3,056,000 | 3,141,000 | 3,288,000 |
Rental income | 1,654,000 | 139,000 | 0 |
Other | 2,512,000 | 915,000 | 1,034,000 |
Total noninterest income | 11,910,000 | 7,576,000 | 6,503,000 |
Noninterest expense: | |||
Salaries and employee benefits | 31,138,000 | 20,828,000 | 14,332,000 |
Occupancy and equipment | 10,679,000 | 5,618,000 | 3,667,000 |
Professional fees | 6,132,000 | 2,981,000 | 2,804,000 |
Data processing and software expense | 3,020,000 | 2,217,000 | 1,158,000 |
FDIC assessment fees | 1,150,000 | 1,177,000 | 661,000 |
Marketing | 1,783,000 | 1,293,000 | 983,000 |
Amortization of intangibles | 3,467,000 | 964,000 | 380,000 |
Telephone and communications | 1,299,000 | 720,000 | 402,000 |
Merger and acquisition expense | 5,220,000 | 2,691,000 | 0 |
Other | 5,371,000 | 4,300,000 | 2,003,000 |
Total noninterest expense | 69,259,000 | 42,789,000 | 26,390,000 |
Income before income tax expense | 50,237,000 | 28,181,000 | 19,018,000 |
Income tax expense | 10,896,000 | 13,029,000 | 6,467,000 |
Net income | 39,341,000 | 15,152,000 | 12,551,000 |
Preferred stock dividends | 0 | 42,000 | 0 |
Net income allocated to common stockholders | $ 39,341,000 | $ 15,110,000 | $ 12,551,000 |
Basic earnings per share (in USD per share) | $ 1.63 | $ 0.82 | $ 1.16 |
Diluted earnings per share (in USD per share) | $ 1.60 | $ 0.80 | $ 1.13 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 39,341 | $ 15,152 | $ 12,551 |
Other comprehensive (loss) income: | |||
Unrealized (losses) gains on securities available for sale arising during the period, net | (2,153) | 493 | (1,661) |
Reclassification adjustment for net (loss) gain included in net income | (64) | 222 | 15 |
Other comprehensive (losses) income before tax | (2,089) | 271 | (1,676) |
Income tax (benefit) expense | (439) | 76 | (570) |
Other comprehensive (loss) income, net of tax | (1,650) | 195 | (1,106) |
Comprehensive income | $ 37,691 | $ 15,347 | $ 11,445 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated Employee Stock Ownership Plan Shares | Treasury Stock | Sovereign Bank | Sovereign BankPreferred Stock | Sovereign BankAdditional Paid-In Capital | Liberty acquisition | Liberty acquisitionCommon Stock | Liberty acquisitionAdditional Paid-In Capital |
Stockholders' equity, beginning balance at Dec. 31, 2015 | $ 132,046 | $ 0 | $ 107 | $ 115,721 | $ 16,739 | $ (142) | $ (309) | $ (70) | ||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2015 | 10,712,472 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Restricted stock units vested, net (in shares) | 38,106 | |||||||||||||
Restricted stock units vested, net | (175) | (175) | ||||||||||||
Stock issued for acquisition of bank, net of offering cost (in shares) | 4,444,750 | |||||||||||||
Stock issued for acquisition of bank, net of offering cost | 94,518 | $ 45 | 94,473 | |||||||||||
Stock based compensation | 983 | 983 | ||||||||||||
Excess tax benefit from stock compensation | 162 | 162 | ||||||||||||
ESOP Shares Allocated | 109 | 9 | 100 | |||||||||||
Net income | 12,551 | 12,551 | ||||||||||||
Other comprehensive income (loss) | (1,106) | (1,106) | ||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2016 | 239,088 | 0 | $ 152 | 211,173 | 29,290 | (1,248) | (209) | (70) | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2016 | 15,195,328 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Restricted stock units vested, net (in shares) | 43,602 | |||||||||||||
Restricted stock units vested, net | (312) | (312) | ||||||||||||
Exercise of employee stock options (in shares) | 17,949 | |||||||||||||
Exercise of employee stock options | 169 | 169 | ||||||||||||
Stock issued for acquisition of bank, net of offering cost (in shares) | 5,117,642 | 1,449,944 | ||||||||||||
Stock issued for acquisition of bank, net of offering cost | 135,947 | $ 51 | 135,896 | $ 40,003 | $ 14 | $ 39,989 | ||||||||
Sale of common stock in public offering, net of offering costs of $288 (in shares) | 2,285,050 | |||||||||||||
Sale of common stock in public offering, net of offering costs of $288 | 56,681 | $ 24 | 56,657 | |||||||||||
Issuance of preferred stock, series D in connection with the acquisition of Sovereign Bancshares, Inc. | $ 49,000 | $ 24,500 | $ 24,500 | |||||||||||
Redemption of preferred stock | (49,000) | (24,500) | (24,500) | |||||||||||
Stock based compensation | 1,939 | 1,939 | ||||||||||||
ESOP Shares Allocated | 109 | 6 | 103 | |||||||||||
Preferred stock dividends | (42) | (42) | ||||||||||||
Net income | 15,152 | 15,152 | ||||||||||||
Reclassification of certain deferred tax effects - ASU 2018-01 | 227 | (227) | ||||||||||||
Other comprehensive income (loss) | 195 | 195 | ||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2017 | $ 488,929 | 0 | $ 241 | 445,517 | 44,627 | (1,280) | (106) | (70) | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2017 | 24,109,515 | 24,109,515 | ||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||
Restricted stock units vested, net (in shares) | 105,765 | |||||||||||||
Restricted stock units vested, net | $ (593) | $ 2 | (595) | |||||||||||
Exercise of employee stock options (in shares) | 38,614 | |||||||||||||
Exercise of employee stock options | 454 | 454 | ||||||||||||
Stock based compensation | 4,048 | 4,048 | ||||||||||||
ESOP Shares Allocated | 109 | 3 | 106 | |||||||||||
Net income | 39,341 | 39,341 | ||||||||||||
Other comprehensive income (loss) | (1,650) | (1,650) | ||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2018 | $ 530,638 | $ 0 | $ 243 | $ 449,427 | $ 83,968 | $ (2,930) | $ 0 | $ (70) | ||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2018 | 24,253,894 | 24,253,894 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Offering costs | $ 489 | ||
Shares paid for cashless exercise | 4,391 | ||
Sovereign Bancshares, Inc. | |||
Offering costs | $ 438 | ||
Liberty Bancshares, Inc. | |||
Offering costs | 334 | ||
Public Offering | |||
Offering costs | $ 288 | ||
Restricted stock units | |||
Shares withheld to cover tax withholdings (in shares) | 20,082 | 11,601 | 10,384 |
Employee Stock Option | |||
Shares withheld to cover tax withholdings (in shares) | 1,691 | 1,095 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 39,341 | $ 15,152 | $ 12,551 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 7,077 | 2,836 | 1,704 |
Provision for loan losses | 6,603 | 5,114 | 2,050 |
Accretion of loan purchase discount | (8,135) | (3,783) | (425) |
Stock-based compensation expense | 4,048 | 1,939 | 983 |
Excess tax benefit from stock compensation | (248) | (268) | (162) |
Deferred tax expense (benefit) | 2,707 | 5,143 | (1,366) |
Net amortization of premiums on investment securities | 1,931 | 1,771 | 1,025 |
Change in cash surrender value of bank-owned life insurance | (588) | (589) | (618) |
Net loss (gain) on sales of investment securities | 64 | (222) | (15) |
Gain on sales of loans held for sale | (708) | (942) | (1,598) |
Gain on sales of SBA loans | (2,348) | (1,940) | (1,690) |
Net gain on sales of other real estate owned | 0 | (259) | 0 |
Amortization of subordinated note discount and debt issuance costs | 2 | 45 | 8 |
Originations of loans held for sale | (35,936) | (48,567) | (70,773) |
Proceeds from sale of loans held for sale | 36,227 | 53,876 | 69,801 |
Write down on real estate owned | 156 | 37 | 114 |
Gain on sale of branches | (349) | 0 | 0 |
Increase in accrued interest receivable and other assets | (425) | (1,204) | (1,728) |
Increase (decrease) in accounts payable, accrued expenses, accrued interest payable and other liabilities | 969 | (1,477) | 999 |
Net cash provided by operating activities | 50,388 | 26,662 | 10,860 |
Cash flows from investing activities: | |||
Net proceeds from sale of branch assets and liabilities held for sale | (31,810) | 0 | 0 |
Purchases of securities available for sale | (811,055) | (839,963) | (357,187) |
Sales of securities available for sale | 40,822 | 159,869 | 8,378 |
Proceeds from maturities, calls and pay downs of investment securities | 731,572 | 773,702 | 319,377 |
Purchases (sales) of non-marketable equity securities, net | (9,090) | 2,481 | (3,199) |
Net loans originated | (344,737) | (229,402) | (190,184) |
Proceeds from sale of SBA loans | 29,010 | 30,355 | 20,574 |
Net additions to bank premises and equipment | (5,013) | (40,571) | (1,075) |
Net intangible assets and lease obligations related to the purchase of our corporate building | 0 | (4,181) | 0 |
Proceeds from sales of other real estate owned and repossessed assets | 291 | 1,920 | 0 |
Net cash used in investing activities | (400,010) | (124,855) | (203,316) |
Cash flows from financing activities: | |||
Net change in deposits | 344,101 | 18,065 | 251,220 |
Net (decrease) increase in advances from Federal Home Loan Bank | (43,145) | (47,142) | 9,862 |
Net proceeds from sale of common stock in public offering | 0 | 56,681 | 94,518 |
Net change in other borrowings | (15,000) | 10,375 | 0 |
Redemption of preferred stock | 0 | (24,500) | 0 |
Dividends paid on preferred stock | 0 | (227) | 0 |
Proceeds from exercise of employee stock options | 454 | 175 | 0 |
Payments to tax authorities for stock-based compensation | (593) | (318) | (175) |
Excess tax benefit from stock compensation | 0 | 0 | 162 |
Proceeds from payments on ESOP Loan | 109 | 109 | 109 |
Offering costs paid in connection with acquisitions | (899) | (772) | 0 |
Net cash provided by financing activities | 285,027 | 12,446 | 355,696 |
Net (decrease) increase in cash and cash equivalents | (64,595) | (85,747) | 163,240 |
Cash and cash equivalents at beginning of year | 149,044 | 234,791 | 71,551 |
Cash and cash equivalents at end of year | 84,449 | 149,044 | 234,791 |
Sovereign Bancshares, Inc. | |||
Cash flows from investing activities: | |||
Cash paid in excess of cash received for the acquisitions | 0 | (11,440) | 0 |
Liberty Bancshares, Inc. | |||
Cash flows from investing activities: | |||
Cash paid in excess of cash received for the acquisitions | $ 0 | $ 32,375 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidated Financial Statements The consolidated financial statements include Veritex Holdings, Inc. (“Veritex” or the “Company”), whose business at December 31, 2018 primarily consisted of the operations of its wholly owned subsidiary, Veritex Community Bank (the “Bank”). The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices of the banking industry. Intercompany transactions and balances are eliminated in consolidation. Veritex is a Texas state banking organization with corporate offices in Dallas, Texas, and as of December 31, 2018 operated twenty branches and one mortgage office located in the Dallas-Fort Worth metroplex and one branch in the Houston metropolitan area. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking and the Board of Governors of the Federal Reserve System are the primary regulators of the Company and the Bank, and they perform periodic examinations to ensure regulatory compliance. Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. Reclassifications Some items in the prior year financial statements were reclassified to conform to current presentation including reclassifying $2,691 from professional fees to merger and acquisition expense on the consolidated statements of income for the year ended December 31, 2017. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. 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. Restrictions on Cash The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. The reserve balances required as of December 31, 2018 and 2017 were approximately $64.8 million and $64.3 million , respectively. Investment 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. Management determines the appropriate classification of securities at the time of purchase. Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Credit related declines in the fair value of securities available for sale below their cost that are deemed to be other than temporary are reflected in earnings as realized losses, with the remaining unrealized loss recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended December 31, 2018 , 2017 and 2016 there were no other-than-temporary impairment losses reflected in earnings as realized losses. Loans Held for Sale Loans held for sale consist of certain mortgage loans originated and intended for sale in the secondary market and are carried at the lower of cost or estimated fair value on an individual loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. Loans and Allowance for Loan Losses Loans, excluding certain purchased loans that have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the origination of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally no later than when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management’s periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance. The Company’s calculation of the general reserve considers historical loss rates for the last three years adjusted for qualitative factors based on general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company’s adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Due to the growth of the Bank over the past several years, a portion of its lending relationships and the loans in its portfolio are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios is impacted by delinquency status and debt service coverage generated by the borrowers’ business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process the Company refers to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is recorded, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Company policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows or the loan’s observable market price. At December 31, 2018 and 2017 , all significant impaired loans have been determined to be collateral dependent and the allowance for loan loss has been measured utilizing the estimated fair value of the collateral. From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis whether a specific valuation allowance is required. A specific valuation allowance is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry. The Company utilizes methodical credit standards and analyses to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. Certain Acquired Loans As part of business acquisitions, the Company evaluated each of the acquired loans under ASC 310-30 to determine whether (i) there was evidence of credit deterioration since origination, and (ii) it was probable that the Company would not collect all contractually required payments receivable. The Company determined the best indicator of such evidence was an individual loan’s payment status and/or whether a loan was determined to be classified based on a review of each individual loan. Therefore, generally each individual loan that should have been or was on non-accrual at the acquisition date and each individual loan that was deemed impaired was included subject to ASC 310-30 accounting. Each of these loans was recorded at the discounted expected cash flows of the individual loan. Loans that were evaluated under ASC 310-30, and for which the timing and amount of cash flows can be reasonably estimated, were accounted for in accordance with ASC 310-30-35. The Company applies the interest method for these loans under this subtopic and excludes the loans from non-accrual. If, at acquisition, the Company identified loans for which it could not reasonably estimate cash flows or, if subsequent to acquisition, such cash flows could not be estimated, such loans would be included in non-accrual and accounted for under the cost recovery method. These acquired loans are accounted for individually and recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, any related allowance for loan loss is reversed, with the remaining yield being recognized prospectively through interest income. Accretion of purchase discounts on purchased credit impaired (“PCI”) loans is based on estimated future cash flows, regardless of contractual maturities, that include undiscounted expected principal and interest payments and use credit risk, interest rate risk and prepayment risk models to incorporate management’s best estimate of current key assumptions such as default rates, loss severity and payment speeds. Accretion of purchase discounts on acquired non-impaired loans is recognized on a level-yield basis based on contractual maturity of individual loans per ASC 310-20. Loans to which ASC 310-30 accounting is applied are deemed PCI loans. Revolving loans, including lines of credit, are excluded from PCI loan accounting. For acquired loans not deemed to be PCI loans 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 loan losses will be recorded only to the extent the required allowance exceeds any remaining purchase discounts. Transfers of Financial Assets Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank Premises and Equipment Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred. Non-Marketable Equity Securities The Bank is a member of its regional Federal Reserve Bank (“FRB”) and of the Federal Home Loan Bank system (“FHLB”). FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Other non-marketable equity securities are carried at their cost, which approximates fair value. Other Real Estate Owned Other real estate owned represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge 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. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the accompanying consolidated statements of income. Goodwill and Intangible Assets Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on December 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the goodwill impairment test, and the Company may resume performing the qualitative assessment in any subsequent period. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the first step of the two-step goodwill impairment test. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value, including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consist of core deposit intangibles, intangible assets related to operating leases with favorable market terms acquired in business combinations, and in-place lease intangibles associated with the purchase of our corporate office. Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years Operating lease intangible Lease term In-place lease intangible Lease term All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to goodwill and intangible assets were recorded during the years ended December 31, 2018 , 2017 and 2016 . Servicing Assets The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, Servicing Assets and Liabilities . The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives. Branch Assets and Liabilities Held for Sale The Company reports long-lived assets, including other assets and liabilities, as part of a disposal group, as held for sale when management has approved or received approval to sell the assets and liabilities, the Company is committed to a formal plan, the assets and liabilities are available for immediate sale, the assets and liabilities are being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. Assets and liabilities held for sale are recorded at the lower of their carrying amount or estimated fair value less costs to sell. If the carrying amount of the assets and liabilities exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets held for sale after they are classified as held for sale. Marketing Expense The Company expenses all marketing costs as they are incurred. Marketing expenses were $1,783 , $1,293 and $983 in 2018 , 2017 and 2016 , respectively. Income Taxes The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis. The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2018 and 2017 , management has determined there are no material uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of income. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2018 , 2017 and 2016 . With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2015. Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. Stock Based Compensation Compensation cost is recognized for stock options and other equity awards (performance and non-performance based) 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. The market price of the Company’s common stock on the date of grant is used to estimate fair value for other equity awards. A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a performance condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. Treasury Stock Treasury stock is stated at cost, which is determined by the first-in, first-out method. Comprehensive Income Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of chang |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | Supplemental Statement of Cash Flows Other supplemental cash flow information is presented below: Year Ended December 31, 2018 2017 2016 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 29,178 $ 10,680 $ 5,607 Cash paid for income taxes 6,525 9,761 8,250 Supplemental Disclosures of Non-Cash Flow Information: Net issuance of common stock for vesting of restricted stock units $ 595 $ 312 $ 175 Net foreclosure of other real estate owned and repossessed assets 8 1,037 283 Transfers to assets held for sale — 33,552 — Transfers to liabilities held for sale — 64,627 — Year Ended December 31, 2018 2017 2016 Noncash assets acquired (1) Investment securities $ — $ 220,444 $ — Loans (4,050 ) 1,060,436 — Accrued interest receivable — 4,293 — Bank premises, furniture and equipment 1,162 24,424 — Non-marketable equity securities — 8,847 — Other real estate owned — 448 — Intangible assets (956 ) 16,722 — Goodwill 1,995 134,797 — Other assets 1,806 484,097 — Total assets $ (43 ) $ 1,954,508 $ — Noncash liabilities assumed (1) Deposits $ 303 $ 1,205,217 $ — Accounts payable and accrued expenses (2) — 7,571 — Accrued interest payable and other liabilities (260 ) 948 — Advances from FHLB — 84,625 Other borrowings — 8,609 — Total liabilities $ 43 $ 1,306,970 $ — Non-cash equity assumed Preferred stock - series D — 24,500 — Total equity — 24,500 — 5,117,642 shares of common stock exchanged in connection with the Sovereign acquisition — 136,385 — 1,449,944 shares of common stock exchanged in connection with the Liberty acquisition $ — $ 40,337 $ — (1) Represents adjustments to estimates recorded for acquisitions of Sovereign Bancshares, Inc. (“Sovereign”) and Liberty Bancshares, Inc. (“Liberty”). Refer to Note 24, Business Combinations for further discussion. (2) Accounts payable and accrued expenses includes accrued preferred stock dividends of $185 for the year ended December 31, 2017. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to 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. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures because the Company’s primary sources of revenues are derived from interest income on financial assets that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption. However, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the Company’s other deferred tax assets. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of its loan portfolio prospectively using an exit price notion. See Note 16, Fair Value Disclosures, for further information regarding the valuation of these loans. Recent Accounting Pronouncements ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , (“ASU 2017-04”) eliminates the second step in the goodwill impairment test described above. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform the second step of the goodwill impairment test. For public companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in the process of evaluating the impact of this pronouncement on the consolidated financial statements, which is not expected to be significant. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019 and interim periods therein, with early adoption permitted on January 1, 2019. The Company expects ASU 2016-13 to have a significant impact on the Company’s accounting policies, internal controls over financial reporting and footnote disclosures. The Company has assessed its data and system needs and has begun designing its financial models to estimate expected credit losses in accordance with the standard. Further development, testing and evaluation of those models is required to determine the impact that adoption of this standard will have on the financial condition and results of operations of the Company. ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) is intended to improve the reporting of leasing transactions by increasing transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-11, “Targeted Improvements.” The new standard was adopted by the Company on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company has elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and will not restate comparative periods. The Company expects that the adoption of ASU 2016-02 will result in the recognition of right-of use-assets and corresponding lease liabilities totaling $7,500 to $9,500 as of the date of adoption. The initial balance sheet gross up upon adoption is primarily related to operating leases of certain real estate properties. The Company has no material leasing arrangements for which it is the lessor of property or equipment. The Company has made an accounting policy election not to apply the recognition requirements in the new standard to short-term leases. The Company has elected to apply the package of practical expedients as both the lessor and lessee allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The Company has also elected to use the practical expedient to make an accounting policy election for leases of certain underlying assets to include both lease and nonlease components as a single component and account for that single component as a lease. Adoption of ASU 2016-02 is not expected to materially change the Company’s recognition of lease expense in future periods. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt and equity securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses recognized in accumulated other comprehensive loss, and fair value of securities are as follows: December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 9,096 $ — $ 118 $ 8,978 Corporate bonds 26,518 84 134 26,468 Municipal securities 40,275 10 338 39,947 Mortgage-backed securities 97,117 101 2,167 95,051 Collateralized mortgage obligations 92,906 197 1,344 91,759 Asset-backed securities 492 — — 492 $ 266,404 $ 392 $ 4,101 $ 262,695 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 10,829 $ 9 $ 18 $ 10,820 Corporate bonds 17,500 330 — 17,830 Municipal securities 55,499 189 211 55,477 Mortgage-backed securities 91,734 58 1,068 90,724 Collateralized mortgage obligations 53,559 9 925 52,643 Asset-backed securities 616 7 — 623 $ 229,737 $ 602 $ 2,222 $ 228,117 The following tables disclose the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: December 31, 2018 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 5,671 $ 68 $ 3,306 $ 50 $ 8,977 $ 118 Corporate bonds 6,689 134 — — 6,689 134 Municipal securities 16,043 92 10,428 246 26,471 338 Mortgage-backed securities 24,277 279 59,637 1,888 83,914 2,167 Collateralized mortgage obligations 18,765 71 42,536 1,273 61,301 1,344 $ 71,445 $ 644 $ 115,907 $ 3,457 $ 187,352 $ 4,101 December 31, 2017 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 3,470 $ 4 $ 629 $ 14 $ 4,099 $ 18 Municipal securities 14,593 79 7,092 132 21,685 211 Mortgage-backed securities 52,075 513 29,485 555 81,560 1,068 Collateralized mortgage obligations 31,581 395 20,305 530 51,886 925 $ 101,719 $ 991 $ 57,511 $ 1,231 $ 159,230 $ 2,222 The number of investment positions in an unrealized loss position totaled 142 and 118 at December 31, 2018 and December 31, 2017 , respectively. The Company does not believe these unrealized losses are “other than temporary.” In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost and the Company’s financial condition and near-term prospects. Additionally, (i) management does not have the intent to sell more than an insignificant amount of investment securities prior to recovery and/or maturity, (ii) it is more likely than not that the Company will not have to sell these securities prior to recovery and/or maturity and (iii) the length of time and extent that fair value has been less than cost is not indicative of recoverability. The unrealized losses noted are interest rate related due to the level of interest rates at December 31, 2018 compared to the time of purchase. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns regarding these securities. The Company sold certain securities in January 2019 due to a one-time rebalancing activity and recorded an insignificant loss. The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the tables below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The term of mortgage-backed, collateralized mortgage obligations and asset-backed securities thus approximates the term of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. December 31, 2018 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,963 $ 2,966 Due from one year to five years 34,933 34,854 Due from five years to ten years 19,682 19,468 Due after ten years 18,311 18,105 75,889 75,393 Mortgage-backed securities 97,117 95,051 Collateralized mortgage obligations 92,906 91,759 Asset-backed securities 492 492 $ 266,404 $ 262,695 December 31, 2017 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,328 $ 2,330 Due from one year to five years 29,654 29,991 Due from five years to ten years 34,480 34,474 Due after ten years 17,366 17,332 83,828 84,127 Mortgage-backed securities 91,734 90,724 Collateralized mortgage obligations 53,559 52,643 Asset-backed securities 616 623 $ 229,737 $ 228,117 Proceeds from sales of investment securities available for sale and gross realized gains and losses for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, 2018 2017 2016 Proceeds from sales $ 40,822 $ 159,869 $ 8,378 Gross realized gains 335 398 43 Gross realized losses 399 176 40 As further explained in Note 11, Advances from the Federal Home Loan Bank, there was a blanket floating lien on all securities to secure FHLB advances as of December 31, 2018 and December 31, 2017 . |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Real estate: Construction and land $ 324,863 $ 277,825 Farmland 10,528 9,385 1 - 4 family residential 297,917 236,542 Multi-family residential 51,285 106,275 Commercial real estate 1,103,032 909,292 Commercial 760,772 684,551 Consumer 7,112 9,648 2,555,509 2,233,518 Deferred loan fees (15 ) (28 ) Allowance for loan losses (19,255 ) (12,808 ) $ 2,536,239 $ 2,220,682 Included in the net loan portfolio as of December 31, 2018 and 2017 is an accretable discount related to purchased performing and PCI loans acquired in connection with a business combination in the approximate amounts of $22,309 and $12,135 , respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in the net loan portfolio as of December 31, 2018 and 2017 is a discount on retained loans from sale of originated Small Business Administration (“SBA”) loans of $2,398 and $1,189 , respectively. The majority of the loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Management believes the allowance for loan losses was adequate to cover estimated losses on loans as of December 31, 2018 and 2017 . Non-Accrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Non-accrual loans, aggregated by class of loans, as of December 31, 2018 and 2017 , were as follows: December 31, 2018 2017 Real estate: Construction and land $ 2,399 $ — Farmland — — 1 - 4 family residential — — Multi-family residential — — Commercial real estate 2,575 61 Commercial 19,769 398 Consumer 2 6 $ 24,745 $ 465 At December 31, 2018 , non-accrual loans included PCI loans of $16,902 for which discount accretion has been suspended because the extent and timing of future cash flows from these PCI loans can no longer be reasonably estimated. There were no PCI loans classified as non-accrual at December 31, 2017 . During the year ended December 31, 2018 , interest income not recognized on non-accrual loans, excluding PCI loans, was $724 . During the year ended December 31, 2017 , interest income not recognized on non-accrual loans was minimal. An age analysis of past due loans, aggregated by class of loans, as of December 31, 2018 and 2017 is as follows: December 31, 2018 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Loans Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 305 $ — $ — $ 305 $ 324,558 $ — $ 324,863 $ — Farmland — — — — 10,528 — 10,528 — 1 - 4 family residential 131 266 — 397 297,435 85 297,917 — Multi-family residential — — — — 51,285 — 51,285 — Commercial real estate 3,465 — — 3,465 1,082,559 17,008 1,103,032 — Commercial 816 828 — 1,644 735,391 23,737 760,772 — Consumer 10 — — 10 7,102 — 7,112 — $ 4,727 $ 1,094 $ — $ 5,821 $ 2,508,858 $ 40,830 $ 2,555,509 $ — (1) Loans 90 days past due and still accruing excludes $527 of PCI loans as of December 31, 2018. December 31, 2017 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current (1) PCI Total Loans Total 90 Days Past Due and Still Accruing (2) Real estate: Construction and land $ 320 $ — $ — $ 320 $ 277,505 $ — $ 277,825 $ — Farmland 104 — — 104 9,232 49 9,385 — 1 - 4 family residential 1,274 139 — 1,413 235,030 99 236,542 — Multi-family residential — — — — 106,275 — 106,275 — Commercial real estate 1,830 — — 1,830 890,145 17,317 909,292 — Commercial 1,849 389 389 2,627 651,777 30,147 684,551 — Consumer 39 51 18 108 9,540 — 9,648 18 $ 5,416 $ 579 $ 407 $ 6,402 $ 2,179,504 $ 47,612 $ 2,233,518 $ 18 (1) To conform to the current period presentation, $15,123 of loans were reclassified from 1-4 family residential to multi-family residential within the total current column. Additionally, PCI loan balances were reclassified from the total current column to the PCI column. (2) Loans 90 days past due and still accruing excludes $3,300 of PCI loans as of December 31, 2017. No loans were 90 days past due and still accruing as of December 31, 2018 . Loans 90 days past due and still accruing interest were $18 as of December 31, 2017 . These loans are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the loans fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing. Impaired Loans Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. All troubled debt restructurings (“TDRs”) are considered impaired loans. Impaired loans are measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans, including TDRs, at December 31, 2018 and 2017 are summarized in the following tables. December 31, 2018 (1) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment YTD Real estate: Construction and land $ 2,016 $ 2,016 $ — $ 2,016 $ — $ 2,262 Farmland — — — — — — 1 - 4 family residential 542 542 — 542 — 565 Multi-family residential — — — — — — Commercial real estate 2,939 2,939 — 2,939 — 3,032 Commercial 3,228 644 2,584 3,228 368 3,351 Consumer 66 66 — 66 — 79 Total $ 8,791 $ 6,207 $ 2,584 $ 8,791 $ 368 $ 9,289 (1) Loans reported exclude PCI loans. December 31, 2017 (1) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 161 161 — 161 — 163 Multi-family residential — — — — — — Commercial real estate 434 434 — 434 — 445 Commercial 398 282 116 398 12 499 Consumer 75 75 — 75 — 87 Total $ 1,068 $ 952 $ 116 $ 1,068 $ 12 $ 1,194 (1) Loans reported exclude PCI loans. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Troubled Debt Restructuring Modifications of terms for the Company’s loans and their inclusion as TDRs are based on individual facts and circumstances. Loan modifications that are included as TDRs may involve a reduction of the stated interest rate of the loan, an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk, or deferral of principal payments, regardless of the period of the modification. The recorded investment in TDRs was $1,171 and $618 as of December 31, 2018 and 2017 , respectively. There were three new TDRs during the years ended December 31, 2018 and 2016, and no new TDRs during the year ended December 31, 2017 . The terms of certain loans modified as TDRs during the year ended December 31, 2018 and December 31, 2016 are summarized in the following tables: During the year ended December 31, 2018 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 3 $ 628 $ — $ 612 $ — $ — Total 3 $ 628 $ — $ 612 $ — $ — During the year ended December 31, 2016 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 2 $ 175 $ — $ — $ 169 $ — Consumer 1 81 — — 81 — Total 3 $ 256 $ — $ — $ 250 $ — All TDRs are measured individually for impairment. Of the three new TDR loans during the year ended December 31, 2018 , one was past due and two were performing as agreed to in the modified terms. A specific allowance for loan loss of $56 was recorded for one of three TDR loans as of December 31, 2018 . Two of the three TDR loans were on non-accrual status as of December 31, 2018. Interest income recorded during 2018 , 2017 and 2016 on TDR loans and interest income that would have been recorded had the terms of the loan not been modified was minimal. There were no loans modified as a TDR loan for which there was a payment default during the year ended December 31, 2018 or December 31, 2017 . A default for purposes of this disclosure is a TDR loan as to which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. The Company has not committed to lend additional amounts to customers with outstanding loans that were classified as TDRs as of December 31, 2018 and 2017 . Credit Quality Indicators From a credit risk standpoint, the Company classifies its loans in one of the following categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged off. Loans not rated special mention, substandard, doubtful or loss are classified as pass loans. The classification of each loan reflects a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairment. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in creditworthiness; however, such concerns are generally not so pronounced that the Company expects to experience significant loss in the short term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses existing in the applicable collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and in which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist that could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual. Credits classified as PCI are those that, at the applicable acquisition date, had the characteristics of substandard loans and it was probable, at acquisition, that all contractually required principal and interest payments would not be collected. The Company evaluates these loans quarterly on a projected cash flow basis. The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2018 and 2017 : December 31, 2018 Pass Special Mention Substandard Doubtful PCI Total Real estate: Construction and land $ 320,987 $ 1,860 $ 2,016 $ — $ — $ 324,863 Farmland 10,528 — — — — 10,528 1 - 4 family residential 296,870 236 726 — 85 297,917 Multi-family residential 51,285 — — — — 51,285 Commercial real estate 1,065,982 7,056 12,986 — 17,008 1,103,032 Commercial 720,583 8,900 7,552 — 23,737 760,772 Consumer 6,950 — 162 — — 7,112 Total $ 2,473,185 $ 18,052 $ 23,442 $ — $ 40,830 $ 2,555,509 December 31, 2017 Pass (1) Special Mention Substandard Doubtful PCI Total Real estate: Construction and land $ 277,186 $ 639 $ — $ — $ — $ 277,825 Farmland 9,336 — — — 49 9,385 1 - 4 family residential 235,781 462 200 — 99 236,542 Multi-family residential 106,275 — — — — 106,275 Commercial real estate 882,523 8,771 681 — 17,317 909,292 Commercial 634,796 18,337 1,155 116 30,147 684,551 Consumer 9,540 — 108 — — 9,648 Total $ 2,155,437 $ 28,209 $ 2,144 $ 116 $ 47,612 $ 2,233,518 (1) To conform to the current period presentation, $15,123 was reclassified from 1-4 family residential to multi-family residential within the pass column. There were no reclassifications between internal rating categories. An analysis of the allowance for loan losses for the years ended December 31, 2018 , 2017 and 2016 is as follows: For the For the For the Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Balance at beginning of year $ 12,808 $ 8,524 $ 6,772 Provision charged to earnings 6,603 5,114 2,050 Charge-offs (197 ) (839 ) (333 ) Recoveries 41 9 35 Net charge-offs (156 ) (830 ) (298 ) Balance at end of year $ 19,255 $ 12,808 $ 8,524 The allowance for loan losses as a percentage of total loans was 0.75% , 0.57% and 0.86% as of December 31, 2018 , 2017 and 2016 , respectively. The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. There were no allowance for loan losses related to PCI loans at December 31, 2017 and 2016. December 31, 2018 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Provision (recapture) charged to earnings 929 502 2,053 3,100 19 6,603 Charge-offs — — — (175 ) (22 ) (197 ) Recoveries — — — 41 — 41 Net charge-offs (recoveries) — — — (134 ) (22 ) (156 ) Balance at end of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Period-end amount allocated to: Specific reserves $ — $ — $ — $ 368 $ — $ 368 PCI reserves — — — 1,302 — 1,302 General reserves 2,244 1,975 6,463 6,884 19 17,585 Total $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 December 31, 2017 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Provision (recapture) charged to earnings (100 ) 368 1,407 3,452 (13 ) 5,114 Charge-offs — (11 ) — (828 ) — (839 ) Recoveries — — — 9 — 9 Net charge-offs (recoveries) — (11 ) — (819 ) — (830 ) Balance at end of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 12 $ — $ 12 General reserves 1,315 1,473 4,410 5,576 22 12,796 Total $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 December 31, 2016 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 311 (8 ) 814 913 20 2,050 Charge-offs — — — (314 ) (19 ) (333 ) Recoveries — — — 32 3 35 Net charge-offs (recoveries) — — — (282 ) (16 ) (298 ) Balance at end of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 246 $ 4 $ 250 General reserves 1,415 1,116 3,003 2,709 31 8,274 Total $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 The Company’s recorded investment in loans as of December 31, 2018 and 2017 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: December 31, 2018 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ 2,016 $ 542 $ 2,939 $ 3,228 $ 66 $ 8,791 Loans collectively evaluated for impairment 333,375 348,575 1,083,085 733,807 7,046 2,505,888 PCI loans — 85 17,008 23,737 — 40,830 Total $ 335,391 $ 349,202 $ 1,103,032 $ 760,772 $ 7,112 $ 2,555,509 December 31, 2017 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 161 $ 434 $ 398 $ 75 $ 1,068 Loans collectively evaluated for impairment 287,161 342,557 891,541 654,006 9,573 2,184,838 PCI loans 49 99 17,317 30,147 — 47,612 Total $ 287,210 $ 342,817 $ 909,292 $ 684,551 $ 9,648 $ 2,233,518 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, 2018 and 2017 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, 2018 December 31, 2017 Carrying amount $ 39,528 $ 47,612 Outstanding balance 49,902 63,940 Changes in the accretable yield for PCI loans for the years ended December 31, 2018 and December 31, 2017 are included in table below. There was no accretable yield balance for PCI loans for the year ended December 31, 2016. Year Ended December 31, 2018 Year Ended Balance at beginning of period $ 2,723 $ — Purchase accounting adjustments 1,459 3,927 Reclassifications from nonaccretable 19,162 — Accretion (4,597 ) (1,204 ) Balance at year-end $ 18,747 $ 2,723 Servicing Assets The Company was servicing loans of approximately $71,159 and $74,737 as of December 31, 2018 and 2017 , respectively. A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2018 2017 Balance at beginning of year $ 1,215 $ 601 Servicing assets acquired through acquisition — 313 Increase from loan sales 470 522 Amortization charged as a reduction to income (381 ) (193 ) Transfer of servicing assets to held for sale — (28 ) Balance at year-end $ 1,304 $ 1,215 The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2018 . Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of December 31, 2018 and 2017 , there were no valuation allowances recorded. The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at December 31, 2018 and 2017 . During the fiscal years ended December 31, 2018 , 2017 and 2016 , the Bank sold $26,662 , $27,747 and $18,704 , respectively, of SBA loans resulting in a gain of $2,348 , $1,940 and $1,690 , respectively. The gain on sale of SBA loans is recorded in gain on sales of loans in the accompanying consolidated statements of income. |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Building and improvements $ 37,526 $ 35,239 Site improvements 672 140 Tenant improvements 744 744 Leasehold improvements 4,456 5,132 Land 33,393 33,002 Furniture, fixtures and equipment 9,426 7,588 Construction in Progress 2,182 456 88,399 82,301 Less accumulated depreciation 9,990 7,050 $ 78,409 $ 75,251 The Company recorded depreciation expense of approximately $3,017 , $1,566 and $1,111 for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Non-marketable Equity Securitie
Non-marketable Equity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Non-marketable Equity Securities. | |
Non-marketable Equity Securities | Non-marketable Equity Securities Investments in non-marketable equity securities in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 FRB of Dallas stock $ 12,324 $ 3,482 FHLB of Dallas stock 2,957 6,431 Other non-marketable equity securities 7,541 3,819 $ 22,822 $ 13,732 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 December 31, 2017 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 8.7 years $ 17,007 $ 2,694 $ 14,313 Servicing asset 6.8 years 1,621 406 1,215 Other intangible assets 3.3 years 5,281 368 4,913 $ 23,909 $ 3,468 $ 20,441 For the years ended December 31, 2018 , 2017 and 2016 , amortization expense related to intangible assets of approximately $4,060 , $1,270 and $595 , respectively, is included within amortization of intangibles, occupancy and equipment and other income within the consolidated statements of income. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2018 was as follows: Year Amount 2019 $ 2,961 2020 2,744 2021 2,169 2022 1,959 2023 1,789 Thereafter 4,274 $ 15,896 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Balance as of December 31, 2017 $ 159,452 $ 26,865 Sovereign acquisition 2,210 109,091 Liberty acquisition (215 ) 23,496 Balance as of December 31, 2018 $ 161,447 $ 159,452 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Noninterest-bearing demand accounts $ 626,283 $ 612,830 Interest-bearing demand accounts 146,969 187,516 Savings accounts 33,147 52,822 Limited access money market accounts 1,133,045 960,149 Certificates of deposit, greater than $100 392,935 419,888 Certificates of deposit, less than $100 290,049 45,425 Total $ 2,622,428 $ 2,278,630 As of December 31, 2018 , the scheduled maturities of certificates of deposit were as follows: Year Amount 2019 $ 576,466 2020 71,686 2021 28,777 2022 3,526 2023 2,529 Total $ 682,984 The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $153 and $203 as of December 31, 2018 and 2017 , respectively. Brokered deposits at December 31, 2018 and 2017 totaled approximately $234,190 and $88,195 , respectively. |
Advances from the Federal Home
Advances from the Federal Home Loan Bank ("FHLB") | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Advances from the Federal Home Loan Bank (FHLB) | Advances from the Federal Home Loan Bank (“FHLB”) Advances from the FHLB totaled $28,019 and $71,164 at December 31, 2018 and 2017 , respectively. As of December 31, 2018 , the advances were collateralized by a blanket floating lien on certain securities and loans, had a weighted average rate of 2.36% and mature on various dates in 2019 and 2022. The Company had the availability to borrow additional funds of approximately $1,022,090 as of December 31, 2018 . Contractual maturities of FHLB advances at December 31, 2018 were as follows: 2019 $ 25,000 2022 3,019 Total $ 28,019 |
Other Credit Extensions
Other Credit Extensions | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Other Credit Extensions | Other Credit Extensions As of December 31, 2018 and 2017 , the Company maintained two credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $75,000 and $55,000 , respectively. There were no borrowings under these credit facilities as of December 31, 2018 and 2017 . As of December 31, 2018 and 2017 , the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $404,981 and $338,592 , respectively. Approximately $524,016 and $423,062 of commercial loans were pledged as collateral at December 31, 2018 and 2017 , respectively. There were no borrowings under this line of credit as of December 31, 2018 and 2017 . |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2018 2017 Junior subordinated debentures $ 11,702 $ 11,702 Subordinated notes (1) 4,989 4,987 Federal funds purchased — 15,000 (1) Subordinated notes are net of discount of $11 and $13 as of December 31, 2018 and 2017 , respectively. Junior Subordinated Debentures In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated. The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities. The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85% . So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2018 and 2017 was 4.64% and 3.44% , respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances. In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed $8,609 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “SovDallas Trust Securities”), issued by SovDallas Capital Trust I (“SovDallas Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the SovDallas Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if SovDallas Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the SovDallas Trust. The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.0% . Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2018 and 2017 was 6.40% and 5.34% . The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. The Parkway Trust Securities and SovDallas Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. Subordinated Notes During 2013 the Company issued, in the aggregate principal amount of $5,000 , subordinated promissory notes (the “Notes”) in a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6.0% per annum, and unpaid principal and interest due at the stated maturity on December 31, 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed, in whole or in part, on any interest payment date that occurs on or after December 23, 2018, subject to approval of the Federal Reserve. In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000 shares of common stock of the Company at an exercise price of $11.00 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and is recorded as additional paid-in capital, and the related debt discount is being accreted into interest expense. Federal Funds Purchased Federal funds purchased are unsecured overnight borrowings from other financial institutions. At December 31, 2018 , the Company had no federal funds purchased. At December 31, 2017, the Company had $15,000 in federal funds purchased carried at a rate of 2.00% , which matured and was paid off on January 1, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is summarized as follows: Year Ended December 31, 2018 2017 2016 Income tax expense (benefit): Current $ 8,189 $ 7,886 $ 7,833 Deferred 2,707 5,143 (1,366 ) $ 10,896 $ 13,029 $ 6,467 The table below reconciles income tax expense for the years ended December 31, 2018 , 2017 and 2016 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2018 2017 2016 Federal incomes tax expense rate at 21% for December 31, 2018 and 35% for December 31, 2017 and 2016 $ 10,550 $ 9,863 $ 6,656 Bank-owned life insurance (124 ) (206 ) (216 ) Non-deductible dues and memberships 104 132 59 Non-deductible meals and entertainment 108 80 49 Non-deductible transaction costs 727 202 — Tax exempt interest income (169 ) (178 ) — Excess tax benefit from stock compensation (248 ) (268 ) — Deferred tax asset re-measurement due to the Tax Act 34 3,051 — Other (86 ) 353 (81 ) Total income tax expense $ 10,896 $ 13,029 $ 6,467 Effective tax rate 21.7 % 46.2 % 34.0 % Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act. As a result of the new law, and as detailed in the table above, we recognized a provisional net tax expense totaling $3,051 in 2017 and an additional net tax expense resulting from a finalization of those calculations totaling $34 in 2018. Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2018 2017 Deferred tax assets: Organizational costs $ 52 $ 64 Allowance for loan losses 3,985 2,592 Capital loss carryforward 57 57 FHLB Borrowing 21 28 Deferred rent expenses 511 302 Restricted stock 264 201 Stock options 652 334 Accrued bonuses 372 22 Loan discounts 2,176 4,805 Deferred compensation 193 115 Other real estate owned — 219 Net unrealized gain on securities available for sale 779 340 Other 130 137 Total deferred tax assets 9,192 9,216 Deferred tax liabilities: Core deposit intangibles 2,187 3,034 Partnership investments 487 497 Bank premises and equipment 1,959 912 Prepaid expenses 342 — Other 67 163 Total deferred tax liabilities 5,042 4,606 Net deferred tax asset $ 4,150 $ 4,610 Included within other assets in the accompanying consolidated balance sheet as of December 31, 2018 is a current tax receivable of $4,982 and a deferred tax asset of $4,150 . Included in the accompanying consolidated balance sheet as of December 31, 2017 is a current tax receivable of $7,085 , a net deferred tax asset of $4,937 in other assets and a deferred tax liability of $327 in branch liabilities held for sale. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. Lessee: Operating Leases The Company leases several of its banking facilities and equipment under operating leases expiring in various years through 2026 and sublets one operating lease that expires in 2025. Certain of the operating leases have rent escalation clauses based on pre-determined annual rate increases and provide for renewal options at their fair value at the time of renewal. As of December 31, 2018 , future minimum rental payments, exclusive of taxes and other charges, under non-cancelable operating leases for each of the next five years were: Year Ending December 31, Future Minimum Rentals Payments 2019 $ 1,913 2020 1,696 2021 1,294 2022 1,138 2023 962 Thereafter 1,794 Total $ 8,797 Rental expense was approximately $2,832 , $2,298 and $1,432 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Sublease rental income was approximately $192 , $139 and $58 for the years ended December 31, 2018 , 2017 and 2016 , respectively. As part of the Sovereign acquisition and the Company’s evaluation of acquired facilities owned or leased for ongoing economic benefit, a decision was made to discontinue using two acquired leases during the fourth quarter of 2017 that expire between 2026 and 2029. In accordance with accounting for exit and disposal activities, the Company recognized a liability in 2017 for lease exit costs incurred when it no longer derived economic benefits from the related leases. In January 2018, the Company entered into an assignment agreement to assign one of the two branch leases the Company had ceased using in 2017 to a third party. As a result of the lease assignment, the Company reversed $669 of the cease-use liability during the year ended December 31, 2018. A cease-use liability of $652 and $1,407 is included in accrued interest payable and other liabilities in the consolidated balance sheets as of December 31, 2018 and 2017, respectively. An analysis of the cease-use liability for the years ended December 31, 2018 and 2017 is as follows: Year Ended December 31, 2018 2017 Beginning Balance $ 1,407 $ — Additions — 1,524 Payments (86 ) (117 ) Reversal upon lease assignment (669 ) — Ending Balance $ 652 $ 1,407 Lessor: Operating Leases The Company has multiple operating leases with various tenants for partial use of our owned corporate building space, which was purchased by the Company during the year ended December 31, 2017. The rest of the building is used by the Company for corporate offices. These operating leases expire in various years through 2023. As of December 31, 2018 , future minimum payments receivable under non-cancelable operating leases for each of the next five years were: Year Ending December 31, Future Minimum Rental Payments 2019 $ 2,097 2020 1,908 2021 1,113 2022 646 2023 163 Total $ 5,927 Rental income was approximately $1,654 and $139 for the years ended December 31, 2018 and 2017 , respectively. No rental income was recognized for the year ended December 31, 2016 . The below table summarizes the costs, accumulated amortization/depreciation and net carrying amount of the corporate building asset and liability components as they are presented on the consolidated balance sheets as of December 31, 2018 and 2017. 2018 2017 Cost Accumulated Amortization/ Depreciation Net Carrying Amount Cost Accumulated Amortization/ Depreciation Net Carrying Amount Bank premises, furniture and equipment: Building and improvements $ 19,903 $ (535 ) $ 19,368 $ 19,872 $ (33 ) $ 19,839 Site and tenant improvements 884 (308 ) 576 884 (32 ) 852 Land 16,781 — 16,781 16,781 — 16,781 37,568 (843 ) 36,725 37,537 (65 ) 37,472 Intangible assets: Intangible lease assets 4,765 (2,113 ) 2,652 4,765 (241 ) 4,524 Accrued interest payable and other liabilities: Intangible lease obligations 584 (168 ) 416 584 (19 ) 565 Total $ 41,749 $ (2,788 ) $ 38,961 $ 41,718 $ (287 ) $ 41,431 Qualified Affordable Housing Investment Starting in 2017, the Company began investing in certain qualified housing projects. At December 31, 2018 and 2017, the balance of the investment for qualified affordable housing projects was $3,663 and $1,982 , respectively. This balance is reflected in non-marketable equity securities on the consolidated balance sheets. The total unfunded commitment related to the investment in a qualified housing project totaled $2,510 and $1,765 at December 31, 2018 and 2017, respectively, which is reflected in accrued interest payable and other liabilities on the consolidated balance sheets. The Company expects to fulfill this commitment during the year ending 2034. As of December 31, 2018 , the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2019 $ 1,303 2020 825 2021 129 2022 22 2023 21 Thereafter 145 Total $ 2,445 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government agencies, corporate bonds, municipal securities, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities. Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. In general, fair value is 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. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Assets and liabilities measured at fair value on a recurring basis include the following: Investment Securities Available for Sale: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2018 and 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2018 Investment securities available for sale $ — $ 262,695 $ — $ 262,695 As of December 31, 2017 Investment securities available for sale $ — $ 228,117 $ — $ 228,117 There were no liabilities measured at fair value on a recurring basis as of December 31, 2018 and 2017 . There were no transfers between Level 2 and Level 3 during the years ended December 31, 2018 and 2017 . Certain assets and liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets measured at fair value on a non-recurring basis include impaired loans and other real estate owned. Impaired loans and other real estate owned that are collateral dependent are measured for impairment using the fair value of the collateral adjusted by additional Level 3 inputs, such as estimated costs to sell. Impaired loans and other real estate owned secured by real estate, receivables or inventory had discounts determined by management on an individual loan basis. Impaired loans and other real estate owned 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. As such, the fair value of impaired loans and other real estate owned are considered a Level 3 in the fair value hierarchy. Appraisals for impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value. The Company records other real estate owned at fair value less estimated costs to sell at the date of foreclosure. After foreclosure, other real estate owned is carried at the lower of the initial carrying amount (fair value less estimated costs to sell or lease) and the value determined by subsequent appraisals or internal valuations of the other real estate owned. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2018 Assets: Impaired loans $ — $ — $ 2,584 $ 2,584 As of December 31, 2017 Assets: Impaired loans $ — $ — $ 116 $ 116 Other real estate owned $ — $ — $ 449 $ 449 At December 31, 2018 , impaired loans had a carrying value of $2,584 , with $368 specific allowance for loan loss allocated. At December 31, 2017 , impaired loans had a carrying value of $116 , with $12 specific allowance for loan loss allocated. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 . Fair Value of Financial Instruments The Company is required under current authoritative guidance to disclose the estimated fair value of its financial instrument assets and liabilities, including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined in such guidance. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop an estimate of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates their fair value. Loans and loans held for sale: The fair value of loans, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset. Loans held for sale approximate their carrying value and are considered Level 2 financial assets. Accrued interest: The carrying amounts of accrued interest approximate their fair values due to short-term maturity. Bank-owned life insurance: The carrying amounts of bank-owned life insurance policies approximate their fair value. Servicing Assets: The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2018 and December 31, 2017 . Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At December 31, 2018 and December 31, 2017 , no valuation allowance was recorded. Non-marketable equity securities: The fair value of restricted securities, such as stock in the FHLB of Dallas, FRB of Dallas and other non-marketable equity securities is their cost basis due to restrictions placed on the securities’ transferability. As a result, the fair value of these non-marketable equity securities was not practicable to determine. Branch assets held for sale : This includes loans, accrued interest, bank premises, furniture and equipment, intangible assets and the cash balances related to branches that were held for sale. The carrying amount of cash and cash equivalents, accrued interest and intangible assets approximates their fair value. The fair value of the bank premises, furniture and equipment is determined based on third party appraisals of similar properties. The fair value of the loans held for sale are estimated using a discounted cash flow analysis that applies interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate certificates of deposit (“CDs”) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits. Advances from Federal Home Loan Bank: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Junior subordinated debentures, subordinated notes and other borrowings: The fair values are based upon prevailing rates on similar debt in the marketplace. Branch liabilities held for sale : This includes deposits and accrued interest related to branches that were held for sale. The carrying amount of accrued interest approximates its fair value. The fair values disclosed for demand deposits are, by definition, equal to the amounts payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate CDs approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits. Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements. The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of December 31, 2018 and 2017 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 84,449 $ — $ 84,449 $ — Loans held for sale 1,258 — 1,258 — Loans 2,555,494 — — 2,553,376 Accrued interest receivable 8,828 — 8,828 — Bank-owned life insurance 22,064 — 22,064 — Servicing asset 834 — 834 — Non-marketable equity securities 22,822 — 22,822 — Financial liabilities: Deposits $ 2,622,428 $ — $ 2,506,379 $ — Advances from FHLB 28,019 — 28,063 — Accrued interest payable 1,135 — 1,135 — Subordinated debentures and subordinated notes 16,691 — 16,691 — December 31, 2017 Financial assets: Cash and cash equivalents $ 149,044 $ — $ 149,044 $ — Loans held for sale 841 — 841 — Loans 2,220,682 — — 2,234,094 Accrued interest receivable 7,676 — 7,676 — Bank-owned life insurance 21,476 — 21,476 — Servicing asset 1,243 — 1,243 — Non-marketable equity securities 13,732 — 13,732 — Financial instruments assets held for sale 31,828 — 5,515 26,313 Financial liabilities: Deposits $ 2,278,630 $ — $ 2,164,498 $ — Advances from FHLB 71,164 — 70,110 — Accrued interest payable 445 — 445 — Subordinated debentures and subordinated notes 16,689 — 16,689 — Financial instruments liabilities held for sale 64,300 — 64,300 — |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table sets forth the approximate amounts of these financial instruments as of December 31, 2018 and 2017 : December 31, 2018 2017 Commitments to extend credit $ 962,436 $ 606,451 Standby and commercial letters of credit 5,431 9,299 $ 967,867 $ 615,750 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis and 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. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit. Although the maximum exposure to loss is the amount of such commitments, management currently anticipates no material losses from such activities. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Contribution Plan The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. No matching contributions to the Plan were made for the years ending December 31, 2018 and 2017 and the Plan was amended in December 2018 to start contributing matching contributions by the Company effective January 1, 2019. ESOP Effective January 1, 2012, the Company adopted the ESOP, which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants. Prior to January 1, 2019, the Company made contributions to each eligible participant’s account each year, generally based on the participant’s 401(k) contribution made during the year. Shares were then released from the suspense account and allocated to each participant’s account, based on the amount of the contribution and the fair value of the shares. Compensation expense for these amounts was measured based upon the expected amount of the Company’s discretionary contribution determined on an annual basis and accrued ratably over the year. Shares were committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability was based upon fair value of the shares and became outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, was shown as a reduction of stockholders’ equity. To the extent that the fair value of the ESOP shares differed from the cost of such shares, the difference is charged or credited to stockholders’ equity as additional paid in capital. On January 3, 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the common stock of the Company. This note was fully repaid in December 2018, and all shares have been allocated to participant accounts. The ESOP debt was secured by shares of the Company. The loan was repaid from contributions made by the Company to the ESOP. As the debt was repaid, shares were released from collateral and allocated to participants’ accounts. For the year ended December 31, 2018 and 2017 , the Company received a $109 debt payment from the ESOP and released 9,771 and 9,012 shares from collateral (and, as noted above, such shares were also released from the suspense account). The released shares were allocated to participants’ accounts. The Company issued 9,147 shares to the ESOP in June of 2015 to settle in full the 401(k) matching liability that was accrued prior to the origination of the $500 loan to the ESOP in January 2014. Compensation expense attributed to the ESOP contributions recorded in the accompanying consolidated statements of income for years ended December 31, 2018 , 2017 and 2016 was approximately $863 , $240 and $204 , respectively. The following is a summary of the ESOP shares as of December 31, 2018 and December 31, 2017 . December 31, 2018 2017 Allocated shares 63,040 53,269 Unearned shares — 9,771 Total ESOP shares 63,040 63,040 Fair value of unearned shares $ — $ 256 |
Stock and Incentive Plans
Stock and Incentive Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock and Incentive Plans | Stock and Incentive Plans 2010 Stock Option and Equity Incentive Plan In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 Incentive Plan”), which the Company’s shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the 2010 Incentive Plan is 1,000,000 . The 2010 Incentive Plan is administered by the Board of Directors of the Company (the “Board”) and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan. The Board authorized grants of equity awards under the 2010 Incentive Plan consisting of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are or were performance-based stock options. Options were generally granted with an exercise price equal to the market price of the Company’s stock as of the date of the grant. In general, the terms of awards varied depending on whether a participant was a shareholder owning more than 10% of the total combined voting power of all classes of Company stock (a “controlling participant”). Options granted to non-controlling participants generally vested after 5 years of continuous service, with 10 -year contractual terms, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms varied for controlling participants. Restricted share awards generally vested after 4 years of continuous service. The terms of the 2010 Incentive Plan provide that all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control. During the years ending December 31, 2018 , 2017 and 2016 , the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan. Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2018 , 2017 and 2016 , approximately $27 , $63 and $125 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income. A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2018 , 2017 and 2016 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Underlying Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 and 2016 325,500 $ 10.15 4.56 years Forfeited (3,000 ) 10.00 Exercised (17,500 ) 10.00 $ 308 Outstanding at December 31, 2017 305,000 $ 10.16 3.59 years Exercised (30,000 ) 10.61 323 Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years $ 3,098 Options exercisable at December 31, 2018 272,000 $ 10.09 2.36 years $ 3,070 As of December 31, 2018 , 2017 and 2016 , there was approximately $2 , $8 , and $21 , respectively, of unrecognized compensation expense related to non-performance-based stock options. The unrecognized compensation expense as of December 31, 2018 is minimal and will be recognized during 2019. A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2018 , 2017 , and 2016 and changes during the years is presented below: 2010 Incentive Plan Nonperformance-based restricted stock units Shares Weighted Average Exercise Outstanding at December 31, 2015 39,750 $ 11.34 Vested into shares (12,000 ) 10.00 Outstanding at December 31, 2016 27,750 $ 11.92 Forfeited (2,500 ) 10.85 Vested into shares (1,000 ) 10.85 Outstanding at December 31, 2017 24,250 $ 13.19 Forfeited (500 ) 10.85 Vested into shares (23,750 ) 12.14 Outstanding at December 31, 2018 — $ — As of December 31, 2018 , there was no remaining unrecognized compensation expense related to non-vested restricted stock units. As of December 31, 2017 and 2016 , there was $15 and $90 , respectively, of total unrecognized compensation expense related to non-vested restricted stock units. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2018 , 2017 and 2016 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2018 2017 2016 Nonperformance-based stock options exercised 803 488 — Nonperformance-based restricted stock units vested 713 26 194 2014 Omnibus Plan In September 2014, the Company adopted an omnibus incentive plan (the “2014 Omnibus Plan”). The purpose of the 2014 Omnibus Plan is to attract and retain outstanding individuals to serve as officers, employees, directors, consultants and other service providers, in order to increase shareholder value and advance the Company’s growth and success. The 2014 Omnibus Plan is administered by the Compensation Committee of the Board and allows the Committee to grant incentive awards in the form of stock options, stock appreciation rights, performance shares, performance units, restricted stock, restricted stock units, cash-based awards, and other types of awards permitted under the plan. The maximum number of shares of the Company’s common stock that may be issued pursuant to grants or options under the 2014 Omnibus Plan is 1,000,000 . The Board has approved a proposal, to be presented to the shareholders of the Company at the Company’s 2019 annual meeting, to authorize an increase in the aggregate number of shares that are available for grant under the 2014 Omnibus Plan to a number of shares to be determined by the Company's officers and specified in the proposal to shareholders. During the year ended December 31, 2018 , the Company awarded 60,650 non-performance restricted stock units, 40,269 performance-based restricted stock units and 137,576 non-performance-based stock options under the 2014 Omnibus Plan. During the year ended December 31, 2017 , the Company awarded 121,125 non-performance based restricted stock units, 26,398 performance based restricted stock units, and 212,983 non-performance-based stock options under the 2014 Omnibus Plan. During the year ended December 31, 2016 , the Company awarded 25,060 non-performance based restricted stock units, 34,190 performance based restricted stock units and 76,286 non-performance-based stock options under the 2014 Omnibus Plan. The non-performance based options and non-performance based restricted stock units generally vest equally over three or five years from the date of grant. The performance-based restricted stock units include a market condition based on the Company’s total shareholder return relative to a market index that determines the number of restricted stock units that may vest equally over a three year period from the grant date. The market condition is determined at the end of the calendar year in which the performance-based restricted stock units are granted. The non-performance restricted stock units fully vest over the requisite service period generally ranging from one to five years. Stock-based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). Compensation expense for option and restricted stock unit awards granted under the 2014 Omnibus Plan for the year ended December 31, 2018 , 2017 and 2016 was $4,021 , $1,876 and $857 , respectively. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants: For the Year Ended December 31, 2018 2017 2016 Dividend yield — % — % — % Expected life 5.0 to 7.5 years 6.13 to 7.5 years 5.0 to 6.5 years Expected volatility 27.87% to 37.55% 30.56% to 33.19% 33.37% to 37.55% Risk-free interest rate 1.06% to 2.94% 1.96% to 2.32% 1.06% to 2.01% The expected life is based on the expected amount of time that options granted are expected to be outstanding. The dividend yield assumption is based on the Company’s history. The expected volatility is based on historical volatility of the Company as well as the volatility of certain comparable public company peers. The risk-free interest rates are based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. A summary of the status of the Company’s options under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 changes during the year then ended, is as follows: 2014 Omnibus Plan Nonperformance-based stock options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 52,080 $ 14.35 9.12 years Granted 76,286 15.98 Outstanding at December 31, 2016 128,366 $ 15.32 8.69 years Granted 212,983 26.97 Forfeited (9,082 ) $ 19.45 Exercised (1,544 ) 15.00 Outstanding at December 31, 2017 330,723 $ 22.71 8.86 years Granted 137,576 28.04 Forfeited (4,083 ) 27.59 Exercised (14,696 ) 15.29 $ 89 Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years $ (1,409 ) Options exercisable at end of period 129,115 $ 20.04 7.36 years $ 173 Weighted average fair value of options granted during the period $ 9.78 As of December 31, 2018 , 2017 and 2016 there was $2,103 , $1,958 and $425 of total unrecognized compensation expense related to stock options awarded under the 2014 Omnibus Plan, respectively. A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 , and changes during the year then ended is as follows: 2014 Omnibus Plan Nonperformance-based restricted stock units Shares Weighted Outstanding at December 31, 2015 70,919 $ 13.29 Granted 25,060 15.83 Vested into shares (28,023 ) 14.35 Outstanding at December 31, 2016 67,956 $ 13.79 Granted 121,125 27.19 Vested into shares (34,342 ) 19.74 Forfeited (4,017 ) 21.36 Outstanding at December 31, 2017 150,722 $ 13.29 Granted 60,650 29.27 Vested into shares (73,988 ) 24.44 Forfeited (3,929 ) 26.29 Outstanding at December 31, 2018 133,455 $ 19.67 A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a performance condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit. A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 , and changes during the years then ended is as follows: 2014 Omnibus Plan Performance-based restricted stock units Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 25,474 $ 8.72 Granted 34,190 9.52 Vested into shares (8,467 ) 14.17 Outstanding at December 31, 2016 51,197 $ 13.30 Granted 26,398 24.43 Vested into shares (19,861 ) 15.34 Forfeited (4,140 ) 17.91 Outstanding at December 31, 2017 53,594 $ 17.68 Granted 40,269 27.59 Vested into shares (28,109 ) 18.69 Forfeited (1,766 ) 27.59 Outstanding at December 31, 2018 63,988 $ 21.28 As of December 31, 2018 , 2017 , and 2016 there was $3,430 , $3,592 and $1,089 of total unrecognized compensation expense related to restricted stock units awarded under the 2014 Omnibus Plan, respectively. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2018 2017 2016 Nonperformance-based stock options exercised 383 41 — Nonperformance-based restricted stock units vested 2,128 568 505 Performance-based restricted stock units vested 745 530 137 |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the Dallas-Fort Worth metroplex and Houston metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Commercial and standby letters of credit were granted primarily to commercial borrowers. The contractual amounts of credit related financial instruments such as commitments to extend credit, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are 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. The aggregate amounts of such loans were approximately $70,220 and $44,134 as of December 31, 2018 and 2017 , respectively. During the year ended December 31, 2018 , new advances of approximately $45,801 were made to related parties with approximately $19,715 principal payments received. During the year ended December 31, 2017 , new advances of approximately $34,903 were made to related parties with approximately $18,065 principal payments received. There were $15,730 and $7,191 in unfunded commitments to related parties as of December 31, 2018 and 2017 , respectively. At December 31, 2018 , there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2018 and 2017 totaled approximately $30,977 and $16,023 , respectively. As disclosed in Note 13, Borrowed Funds, the Company issued $5,000 in subordinated notes to certain entities controlled by an affiliate of the Company. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Preferred Stock | Preferred Stock In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed 24,500 shares of Sovereign’s Senior Non-Cumulative Perpetual Preferred Stock, Series C, no par value (the “Sovereign SBLF Preferred Stock”), issued and outstanding immediately prior to the consummation of the acquisition. At the time of the consummation of the acquisition, each share of Sovereign SBLF Preferred Stock was converted into one share of Senior Non-Cumulative Perpetual, Series D Preferred Stock of the Company (“Veritex Series D Preferred Stock”). On August 8, 2017, the Company redeemed all 24,500 shares of the Veritex Series D Preferred Stock at its liquidation value of $1,000 per share plus accrued dividends for a total redemption amount of $24,727 . The Company assumed $185 of accrued dividends in connection with the acquisition of Sovereign on August 1, 2017 out of the $227 in dividends paid in the year ended December 31, 2017. The redemption was approved by the Company’s primary federal regulator and was funded with the Company’s surplus capital. The redemption terminated the Company’s participation in the Small Business Lend Fund (“SBLF”) program. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained Earnings Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels. The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the “Basel III Capital Rules”). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other categories of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015, with certain transition provisions to be fully phased in by January 1, 2019. The Basel III Capital Rules also call for a capital conservation buffer that is added to each of the required capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to satisfy the buffer requirement will result in limits on capital distributions and discretionary bonus payments. In 2018, the buffer requirement was 1.875%, and the fully phased-in requirement of 2.5% will be effective January 1, 2019. The Basel III Capital Rules establish quantitative measures to ensure capital adequacy. The Bank must maintain minimum ratios (set forth in the table below) of total Tier 1, and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2018 and December 31, 2017 that the Bank met all capital adequacy requirements to which it was subject. Starting in January 2016, implementation of the capital conservation buffer became effective for the Company beginning at the 0.625% level and increasing 0.625% each year thereafter, until it reached 2.50% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. As of December 31, 2018 and December 31, 2017 , the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized”, the Company and the Bank must maintain minimum total risk‑based, CET1, Tier 1 risk‑based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since December 31, 2018 that management believes have changed the Company’s category. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 Total capital (to risk-weighted assets) Company $ 394,419 12.98 % $ 243,093 8.0 % n/a n/a Bank 353,640 11.64 243,052 8.0 $ 303,814 10.0 % Tier 1 capital (to risk-weighted assets) Company 370,175 12.18 182,352 6.0 n/a n/a Bank 334,385 11.01 182,226 6.0 242,968 8.0 Common equity tier 1 (to risk-weighted assets) Company 358,473 11.80 136,706 4.5 n/a n/a Bank 334,385 11.01 136,670 4.5 197,412 6.5 Tier 1 capital (to average assets) Company 370,175 12.04 122,982 4.0 n/a n/a Bank 334,385 10.87 123,049 4.0 153,811 5.0 As of December 31, 2017 Total capital (to risk-weighted assets) Company $ 342,521 13.16 % $ 208,219 8.0 % n/a n/a Bank 296,207 11.37 208,413 8.0 $ 260,516 10.0 % Tier 1 capital (to risk-weighted assets) Company 324,726 12.48 156,118 6.0 n/a n/a Bank 283,399 10.88 156,286 6.0 208,382 8.0 Common equity tier 1 (to risk-weighted assets) Company 313,024 12.03 117,091 4.5 n/a n/a Bank 283,399 10.88 117,215 4.5 169,310 6.5 Tier 1 capital (to average assets) Company 324,726 12.92 100,534 4.0 n/a n/a Bank 283,399 11.28 100,496 4.0 125,620 5.0 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations All acquisitions were accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of the acquired entities were recorded at their estimated fair values at the acquisition date. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market willing participants at the measurement date. The Company determines the estimated fair values after review and consideration of relevant information, including discounted cash flows, quoted market prices, third party valuations, and estimates made by management. The excess of the purchase price over the estimated fair value of the net assets for tax-free acquisitions is recorded as goodwill, none of which is deductible for tax purposes. Acquisition-related costs are recognized separately from the acquisition and are expensed as incurred. The results of operations for each acquisition have been included in the Company’s consolidated financial results beginning on the respective acquisition date. Sovereign Bancshares, Inc. On August 1, 2017, the Company acquired Sovereign, a Texas corporation and the parent company of Sovereign Bank. The Company issued 5,117,642 shares of its common stock and paid $ 56,215 in cash to Sovereign in consideration for the acquisition. Additionally, under the terms of the merger agreement, each share of Sovereign SBLF Preferred Stock issued and outstanding immediately prior to the effective time was converted into one share of Veritex Series D Preferred Stock. See Note 22, Preferred Stock for additional information. The business combination was accounted for under the acquisition method of accounting. Under this method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for Sovereign exceeded the fair value of the net assets acquired, goodwill of $ 111,301 was recorded related to the acquisition. This goodwill resulted from the combination of expected operational synergies and increased market share in the Dallas-Fort Worth metroplex and Houston metropolitan area. Goodwill is not tax deductible. Fair Value The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of August 1, 2017, showing the estimated fair value as reported at December 31, 2017, the measurement period adjustments and the fair value determined to be final as of March 31, 2018. Estimate at December 31, 2017 Adjustments Final Fair Value Assets Cash and cash equivalents $ 44,775 $ — $ 44,775 Investment securities 166,307 — 166,307 Loans 752,450 (4,622 ) 747,828 Accrued interest receivable 3,102 — 3,102 Bank premises, furniture and equipment 17,805 474 18,279 Non-marketable equity securities 6,751 — 6,751 Other real estate owned 282 — 282 Intangible assets 8,454 749 9,203 Goodwill 109,091 2,210 111,301 Other assets 13,148 1,189 14,337 Total Assets $ 1,122,165 $ — $ 1,122,165 Liabilities Deposits $ 809,366 $ — $ 809,366 Accounts payable and accrued expenses 6,284 — 6,284 Accrued interest payable and other liabilities 806 — 806 Advances from Federal Home Loan Bank 80,000 — 80,000 Junior subordinated debentures 8,609 — 8,609 Total liabilities $ 905,065 $ — $ 905,065 Preferred stock - series D 24,500 — 24,500 Total stockholders’ equity 24,500 — 24,500 Consideration Market value of common stock issued $ 136,385 $ — $ 136,385 Cash paid 56,215 — 56,215 Total fair value of consideration $ 192,600 $ — $ 192,600 Acquisition-related Expenses For the year ended December 31, 2018 , the Company incurred no pre-tax merger and acquisition expenses related to the Sovereign acquisition. For the year ended December 31, 2017, the Company incurred $ 1,731 of pre-tax merger and acquisition expenses related to the Sovereign acquisition. Merger and acquisition expenses are included in merger and acquisition expenses in the consolidated statements of income. Acquired Loans and Purchased Credit Impaired Loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No allowance for credit losses was carried over from Sovereign. The Company has identified certain acquired loans as PCI. PCI loan identification considers payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may indicate deterioration of credit quality since origination. The following table discloses the fair value and contractual value of loans acquired from Sovereign on August 1, 2017: PCI Loans Other Acquired Loans Total Acquired Loans Real Estate $ 17,708 $ 518,261 $ 535,969 Commercial 29,877 180,730 210,607 Consumer — 1,252 1,252 Total fair value $ 47,585 $ 700,243 $ 747,828 Contractual principal balance $ 67,985 $ 707,071 $ 775,056 The following table presents additional information about PCI loans acquired from Sovereign on August 1, 2017: PCI Loans Contractually required principal and interest $ 85,125 Non-accretable difference 33,064 Cash flows expected to be collected 52,061 Accretable difference 4,476 Fair value of PCI loans $ 47,585 Intangible Assets The following table discloses the fair value of intangible assets acquired from Sovereign on August 1, 2017: Gross Intangible Asset Core deposit intangibles (1) $ 8,452 Servicing asset (2) 317 Intangible lease assets (3) 434 $ 9,203 (1) The Company estimated a useful life of 7.7 years for core deposit intangibles. (2) The Company estimated a weighted-average useful life of 6.1 years for servicing asset which will be amortized on a straight line basis. (3) The Company estimated a weighted-average useful life of 5.0 years for intangible lease assets which will be amortized on a straight line basis. Advances from Federal Home Loan Bank The Company assumed from Sovereign $80,000 in advances from the FHLB as of August 1, 2017 that matured in full from August 1, 2017 to December 31, 2017. Redemption of Veritex Series D Preferred Stock On August 8, 2017, the Company redeemed all 24,500 shares of the Veritex Series D Preferred Stock at its liquidation value of $1,000 per share plus accrued dividends for a total redemption amount of $24,727 . The Company assumed $185 of accrued dividends in connection with the acquisition of Sovereign on August 1, 2017 out of the $227 in dividends paid in the year ended December 31, 2017. The redemption was approved by the Company’s primary federal regulator and was funded with the Company’s surplus capital. The redemption terminated the Company’s participation in the SBLF program. Liberty Bancshares, Inc. On December 1, 2017, the Company acquired Liberty, a Texas corporation and the parent company of Liberty Bank. The Company issued 1,449,944 shares of its common stock and paid $ 25,009 in cash to Liberty in consideration for the acquisition. The business combination was accounted for under the acquisition method of accounting. As the consideration paid for Liberty exceeded the fair value of the net assets acquired, goodwill of $23,281 was recorded related to the acquisition. This goodwill resulted from the combination of expected operational synergies and increased market share in Tarrant County. Goodwill is not tax deductible. Fair Value The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of December 1, 2017, showing the estimated fair value as reported at December 31, 2017, the measurement period adjustments and the fair value determined to be final as of June 30, 2018. Estimate at December 31, 2017 Adjustments Final Fair Value Assets Cash and cash equivalents $ 57,384 $ — $ 57,384 Investment securities 54,137 — 54,137 Loans 312,608 572 313,180 Accrued interest receivable 1,191 — 1,191 Bank premises, furniture and equipment 6,145 688 6,833 Non-marketable equity securities 2,096 — 2,096 Other real estate owned 166 — 166 Intangible assets 7,519 (1,705 ) 5,814 Goodwill 23,496 (215 ) 23,281 Other assets 2,509 617 3,126 Total assets $ 467,251 $ (43 ) $ 467,208 Liabilities Deposits $ 395,851 $ (303 ) $ 395,548 Accounts payable and accrued expenses 1,287 260 1,547 Accrued interest payable and other liabilities 142 — 142 Subordinated notes (1) 4,625 — 4,625 Total liabilities $ 401,905 $ (43 ) $ 401,862 Consideration Market value of common stock issued $ 40,337 $ — $ 40,337 Cash paid $ 25,009 $ — $ 25,009 Total fair value of consideration $ 65,346 $ — $ 65,346 (1) The subordinated note was paid off in full on December 1, 2017, subsequent to closing. Acquisition-related Expenses For the year ended December 31, 2018 , the Company incurred $335 of pre-tax merger and acquisition expenses related to the Liberty acquisition. The Company incurred $960 of acquisition expenses related to the Liberty acquisition in 2017. Merger and acquisition expenses are included in merger and acquisition expenses in the consolidated statements of income. Acquired Loans and Purchased Credit Impaired Loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No allowance for credit losses was carried over from Liberty. The Company has identified certain acquired loans as PCI. PCI loan identification considers payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may indicate deterioration of credit quality since origination. Accretion of purchase discounts on PCI loans is based on estimated future cash flows, regardless of contractual maturities, that include undiscounted expected principal and interest payments and use credit risk, interest rate and prepayment risk models to incorporate management’s best estimate of current key assumptions such as default rates, loss severity and payment speeds. Accretion of purchase discounts on acquired non-impaired loans will be recognized on a level-yield basis based on contractual maturity of individual loans per ASC 310-20. The following table discloses the fair value and contractual value of loans acquired from Liberty on December 1, 2017: PCI Loans Other Acquired Loans Total Acquired Loans Real Estate $ 868 $ 257,578 $ 258,446 Commercial 307 49,695 50,002 Consumer — 4,732 4,732 Total fair value 1,175 312,005 313,180 Contractual principal balance $ 1,748 $ 316,119 $ 317,867 The following table presents additional information about PCI loans acquired from Liberty on December 1, 2017: PCI Loans Contractually required principal and interest $ 2,316 Non-accretable difference 711 Cash flows expected to be collected $ 1,605 Accretable difference 430 Fair value of PCI loans $ 1,175 Intangible Assets The acquisition also resulted in a core deposit intangible of $5,814 , which will be amortized on a straight line basis over the estimated life of 10.0 years. Pro Forma Information (unaudited) The following table presents unaudited supplemental pro forma financial information for the years ended December 31, 2017 and 2016 as if the Sovereign and Liberty acquisitions had occurred on January 1, 2016. The pro forma information includes adjustments for interest income on loans acquired, depreciation expense on property acquired, amortization of intangibles arising from the transaction, merger and acquisition costs incurred by the Company in 2017 to be reflected as incurred in 2016, merger and acquisition costs incurred by Sovereign and Liberty prior to the acquisition close date and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been completed on the assumed date. Year Ended December 31, 2017 2016 Net interest income $ 102,440 $ 98,701 Net income available to common stockholders 22,270 26,984 Basic earnings per share $ 0.98 $ 1.55 Diluted earnings per share 0.96 1.53 The following net interest income and net income available to common stockholders for the Sovereign and Liberty transactions are included in the Company’s operating results for the year ended December 31, 2017. Year Ended December 31, 2017 Net interest income $ 14,825 Net income available to common stockholders 4,615 |
Branch Assets and Liabilities H
Branch Assets and Liabilities Held For Sale | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Branch Assets and Liabilities Held For Sale | Branch Assets and Liabilities Held for Sale On October 23, 2017, the Company entered into a Purchase and Assumption Agreement to sell certain assets and liabilities associated with two branch locations in the Austin metropolitan market. On January 1, 2018, the Company completed the sale of these assets and liabilities to Horizon Bank, SSB (“Horizon”), resulting in a $33,557 cash settlement payment to Horizon during the three months ended March 31, 2018, which included the repayment of a $1,000 deposit liability recorded within other liabilities as of December 31, 2017, and the recognition of a $355 gain on the sale reported in other non-interest income for the year ended December 31, 2018. The completion of this sale resulted in the Company exiting the Austin metropolitan market. In the fourth quarter of 2017, the Company ceased using one of its Dallas, Texas branch buildings. The associated building and improvements were included in branch assets held for sale as of December 31, 2017. On August 6, 2018, the Company completed the sale of the branch location to Texas Trust Credit Union, resulting in a $1,747 cash settlement during the three months ended September 30, 2018, which included the recognition of a loss of $6 on the sale reported in other non-interest expenses. The following table presents the assets and liabilities held for sale as of December 31, 2018 and 2017. December 31, 2018 2017 Assets Cash and cash equivalents $ — $ 334 Loans — 26,313 Accrued interest receivable — 63 Bank premises, furniture and equipment — 5,118 Intangible assets — 1,724 Total assets $ — $ 33,552 Liabilities Deposits $ — $ 64,282 Accounts payable and accrued expenses — 2 Deferred tax liability — 327 Accrued interest payable and other liabilities — 16 Total liabilities $ — $ 64,627 |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto. Balance Sheet December 31, 2018 2017 Assets Cash and cash equivalents $ 40,474 $ 46,724 Investment in subsidiaries 506,902 459,654 Other assets 940 2,267 Total assets $ 548,316 $ 508,645 Liabilities and Stockholders’ Equity Other liabilities $ 987 $ 3,027 Other borrowings 16,691 16,689 Total liabilities 17,678 19,716 Stockholders’ equity Preferred stock — — Common stock 243 241 Additional paid-in capital 449,427 445,517 Retained earnings 83,968 44,627 Unallocated employee stock ownership plan shares — (106 ) Accumulated other comprehensive income (2,930 ) (1,280 ) Treasury stock (70 ) (70 ) Total stockholders’ equity 530,638 488,929 Total liabilities and stockholders’ equity $ 548,316 $ 508,645 Statements of Income Year Ended December 31, 2018 2017 2016 Interest income: Other $ 20 $ 8 $ 2 Interest expense: Interest on borrowings 974 598 388 Net interest expense (954 ) (590 ) (386 ) Noninterest expense: Salaries and employee benefits 853 712 161 Merger and acquisition expense 4,415 2,256 828 Other — — 1 Total noninterest expense 5,268 2,968 990 Loss before income tax benefit and equity in undistributed income of subsidiaries (6,222 ) (3,558 ) (1,376 ) Income tax benefit (713 ) (730 ) (480 ) Loss before equity in undistributed income of subsidiaries (5,509 ) (2,828 ) (896 ) Equity in undistributed income of bank 44,850 17,980 13,447 Net income $ 39,341 $ 15,152 $ 12,551 Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net income $ 39,341 $ 15,152 $ 12,551 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt costs 2 45 8 Equity in undistributed net income of Bank (44,850 ) (17,980 ) (13,447 ) Decrease (increase) in other assets 2,226 3,523 (155 ) (Decrease) increase in other liabilities (2,635 ) 1,353 270 Net cash (used in) provided by operating activities (5,916 ) 2,093 (773 ) Cash flows from investing activities: Net cash paid in Sovereign acquisition — (55,949 ) — Net cash paid in Liberty acquisition — (24,812 ) — Capital investment in subsidiary — — (10,000 ) Net cash used in investing activities — (80,761 ) (10,000 ) Cash flows from financing activities: Net proceeds from sale of common stock in public offering 2 56,681 94,518 Redemption of preferred stock — (24,500 ) — Net change in other borrowings — (4,625 ) — Proceeds from exercise of employee stock options 454 175 — Proceeds from payments on ESOP loan 109 109 109 Offering costs paid in connection with acquisition (899 ) (772 ) — Dividends paid on preferred stock — (42 ) — Net cash (used in) provided by financing activities (334 ) 27,026 94,627 Net (decrease) increase in cash and cash equivalents (6,250 ) (51,642 ) 83,854 Cash and cash equivalents at beginning of year 46,724 98,366 14,512 Cash and cash equivalents at end of year $ 40,474 $ 46,724 $ 98,366 |
Summary of Quarterly Financial
Summary of Quarterly Financial Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Statements (Unaudited) | Summary of Quarterly Financial Statements (Unaudited) The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, which are necessary for the fair presentation of the results of operations, for the periods presented. 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 37,774 $ 37,818 $ 34,555 $ 34,087 Interest Expense 9,487 8,642 6,931 4,985 Net interest income 28,287 29,176 27,624 29,102 Provision for loan losses 1,364 3,057 1,504 678 Noninterest income 4,027 2,510 2,592 2,781 Noninterest expense 17,538 18,246 16,169 17,306 Provision for income taxes 3,587 1,448 2,350 3,511 Net income available to common stockholders $ 9,825 $ 8,935 $ 10,193 $ 10,388 Earnings per share: Basic $ 0.41 $ 0.37 $ 0.42 $ 0.43 Diluted 0.40 0.36 0.42 0.42 2017 Fourth Quarter (1) Third Quarter (1) Second Quarter First Quarter Interest Income $ 29,897 $ 22,279 $ 14,307 $ 13,069 Interest Expense 4,147 3,150 1,931 1,816 Net interest income 25,750 19,129 12,376 11,253 Provision for loan losses 2,529 752 943 890 Noninterest income 2,298 1,977 1,766 1,535 Noninterest expense 15,035 12,522 7,782 7,450 Provision for income taxes 7,227 2,650 1,802 1,350 Net income 3,257 5,182 3,615 3,098 Less income available to common stockholders — 42 — — Net income available to common stockholders $ 3,257 $ 5,140 $ 3,615 $ 3,098 Earnings per share: Basic $ 0.14 $ 0.26 $ 0.24 $ 0.20 Diluted 0.14 0.25 0.23 0.20 (1) These results include the addition of Sovereign upon acquisition during the third quarter. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Green Bancorp, Inc. Merger On January 1, 2019 (“close date”), the Company completed its acquisition of Green Bancorp, Inc. (“Green”), the parent holding company of Green Bank, N.A, a nationally chartered commercial bank headquartered in Houston, Texas with 21 full-service branches in the Houston, Dallas and other markets. Under the terms of the definitive agreement for the acquisition, each outstanding share of Green’s common stock and Green’s outstanding restricted stock units that accelerated vested at maximum levels at the close date was converted into the right to receive 0.79 shares of the Company’s common stock, with cash paid in lieu of fractional shares of the Company’s common stock. In addition, Green’s options that accelerated vested at maximum levels on the close date were exchanged for an option to purchase Veritex common stock at the same 0.79 conversion rate. This resulted in approximately 29,533 shares of the Company’s common stock being issued in respect of outstanding shares of Green common stock, approximately 523 shares of the Company’s common stock being issued for Green’s restricted stock units, approximately 1,085 of options to purchase Green common stock exchanged for options to purchase the Company’s common stock, a cash payment of approximately $116 in respect of Green’s outstanding stock appreciation right awards and a cash payment of approximately $10 in lieu of fractional shares. Additionally, certain executive officers of Green have entered into employment agreements with Veritex, which provide for certain compensatory arrangements and severance entitlements upon an involuntary termination following the closing date. The Company’s primary reason for the transaction was to further solidify its market share in the Texas market. During 2018, the Company incurred approximately $4,865 of merger and acquisition expenses related to the transaction. Merger and acquisition expenses are included in merger and acquisition expenses in the consolidated statements of income. The majority of the merger and acquisition expenses for this transaction are expected to be recorded after the financial statements for the periods covered by this report. Additional disclosures required by ASC 805 have been omitted from this report because the information required for the disclosures, including the purchase price accounting fair value adjustments, are not available due to the close proximity of the closing of the transaction with the date the accompanying consolidated financial statements were issued. In addition, the consummation of the Green acquisition constituted a change in control of the Company under certain of its compensation and incentive plans. All unvested stock options, restricted stock units and other equity awards under the Company’s 2010 Incentive Plan and the 2014 Omnibus Plan fully vested on January 1, 2019 and each participant under the Company’s ESOP became fully vested in his or her account. Declaration of Dividend On January 28, 2019, the Company's Board of Directors declared the initiation of a regular quarterly cash dividend of $0.125 per share of its outstanding common stock. The dividend was paid on February 21, 2019 to shareholders of record as of February 7, 2019. The timing, declaration, amount and payment of any future cash dividends are at the discretion of the Company’s board of directors and will depend on various factors that the Company’s board of directors may deem relevant. Stock Buyback Program On January 28, 2019, the Company's Board of Directors authorized a stock buyback program (the "Stock Buyback Program") pursuant to which the Company may, from time to time, purchase up to $50,000 of its outstanding common stock. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the SEC. The Stock Buyback Program expires on December 31, 2019 and does not obligate the Company to purchase any shares. The Stock Buyback Program may be terminated or amended by the Company’s Board of Directors at any time prior to its expiration. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Codification | Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. |
Segment Reporting | Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. |
Reclassifications | Reclassifications Some items in the prior year financial statements were reclassified to conform to current presentation including reclassifying $2,691 from professional fees to merger and acquisition expense on the consolidated statements of income for the year ended December 31, 2017. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. 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. |
Restrictions on cash | Restrictions on Cash The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. |
Investment Securities | Investment 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. Management determines the appropriate classification of securities at the time of purchase. Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are derived from the amortized cost of the security sold. Credit related declines in the fair value of securities available for sale below their cost that are deemed to be other than temporary are reflected in earnings as realized losses, with the remaining unrealized loss recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. |
Loans Held for Sale | Loans Held for Sale Loans held for sale consist of certain mortgage loans originated and intended for sale in the secondary market and are carried at the lower of cost or estimated fair value on an individual loan basis. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans, excluding certain purchased loans that have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the origination of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally no later than when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management’s periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance. The Company’s calculation of the general reserve considers historical loss rates for the last three years adjusted for qualitative factors based on general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company’s adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Due to the growth of the Bank over the past several years, a portion of its lending relationships and the loans in its portfolio are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios is impacted by delinquency status and debt service coverage generated by the borrowers’ business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process the Company refers to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is recorded, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Company policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows or the loan’s observable market price. At December 31, 2018 and 2017 , all significant impaired loans have been determined to be collateral dependent and the allowance for loan loss has been measured utilizing the estimated fair value of the collateral. From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis whether a specific valuation allowance is required. A specific valuation allowance is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry. The Company utilizes methodical credit standards and analyses to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. |
Certain Acquired Loans | Certain Acquired Loans As part of business acquisitions, the Company evaluated each of the acquired loans under ASC 310-30 to determine whether (i) there was evidence of credit deterioration since origination, and (ii) it was probable that the Company would not collect all contractually required payments receivable. The Company determined the best indicator of such evidence was an individual loan’s payment status and/or whether a loan was determined to be classified based on a review of each individual loan. Therefore, generally each individual loan that should have been or was on non-accrual at the acquisition date and each individual loan that was deemed impaired was included subject to ASC 310-30 accounting. Each of these loans was recorded at the discounted expected cash flows of the individual loan. Loans that were evaluated under ASC 310-30, and for which the timing and amount of cash flows can be reasonably estimated, were accounted for in accordance with ASC 310-30-35. The Company applies the interest method for these loans under this subtopic and excludes the loans from non-accrual. If, at acquisition, the Company identified loans for which it could not reasonably estimate cash flows or, if subsequent to acquisition, such cash flows could not be estimated, such loans would be included in non-accrual and accounted for under the cost recovery method. These acquired loans are accounted for individually and recorded at the allocated fair value, such that there is no carryover of the seller’s allowance for loan losses. The Company estimates the amount and timing of expected cash flows for each purchased loan, and the expected cash flows in excess of the allocated fair value are recorded as interest income over the remaining life of the loan (accretable yield). The excess of the loan’s contractual principal and interest over expected cash flows is not recorded (non-accretable difference). Over the life of the loan, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded through the allowance for loan losses. If the present value of expected cash flows is greater than the carrying amount, any related allowance for loan loss is reversed, with the remaining yield being recognized prospectively through interest income. Accretion of purchase discounts on purchased credit impaired (“PCI”) loans is based on estimated future cash flows, regardless of contractual maturities, that include undiscounted expected principal and interest payments and use credit risk, interest rate risk and prepayment risk models to incorporate management’s best estimate of current key assumptions such as default rates, loss severity and payment speeds. Accretion of purchase discounts on acquired non-impaired loans is recognized on a level-yield basis based on contractual maturity of individual loans per ASC 310-20. Loans to which ASC 310-30 accounting is applied are deemed PCI loans. Revolving loans, including lines of credit, are excluded from PCI loan accounting. For acquired loans not deemed to be PCI loans 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 loan losses will be recorded only to the extent the required allowance exceeds any remaining purchase discounts. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Bank Premises and Equipment | Bank Premises and Equipment Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred. |
Non-Marketable Equity Securities | Non-Marketable Equity Securities The Bank is a member of its regional Federal Reserve Bank (“FRB”) and of the Federal Home Loan Bank system (“FHLB”). FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Other non-marketable equity securities are carried at their cost, which approximates fair value. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge 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. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the accompanying consolidated statements of income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on December 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the goodwill impairment test, and the Company may resume performing the qualitative assessment in any subsequent period. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the first step of the two-step goodwill impairment test. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value, including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consist of core deposit intangibles, intangible assets related to operating leases with favorable market terms acquired in business combinations, and in-place lease intangibles associated with the purchase of our corporate office. Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years Operating lease intangible Lease term In-place lease intangible Lease term All indefinite lived intangible assets are tested annually for potential impairment or when triggering events occur. Intangible assets with definite lives are tested for impairment when a triggering event occurs. |
Servicing Assets | Servicing Assets The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, Servicing Assets and Liabilities . The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives. |
Branch Assets and Liabilities Held For Sale | Branch Assets and Liabilities Held for Sale The Company reports long-lived assets, including other assets and liabilities, as part of a disposal group, as held for sale when management has approved or received approval to sell the assets and liabilities, the Company is committed to a formal plan, the assets and liabilities are available for immediate sale, the assets and liabilities are being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. Assets and liabilities held for sale are recorded at the lower of their carrying amount or estimated fair value less costs to sell. If the carrying amount of the assets and liabilities exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets held for sale after they are classified as held for sale. |
Marketing Expense | Marketing Expense The Company expenses all marketing costs as they are incurred. |
Income Taxes | Income Taxes The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis. The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2018 and 2017 , management has determined there are no material uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of income. The Company did not record any interest or penalties related to income tax for the years ended December 31, 2018 , 2017 and 2016 . With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2015. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
Revenue from Contracts with Customer | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options and other equity awards (performance and non-performance based) 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. The market price of the Company’s common stock on the date of grant is used to estimate fair value for other equity awards. A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a performance condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Treasury Stock | Treasury Stock Treasury stock is stated at cost, which is determined by the first-in, first-out method. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of securities available for sale, net of tax. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Effective January 1, 2012, the Company adopted the Veritex Community Bank Employee Stock Ownership Plan (“ESOP”), which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants. Prior to January 1, 2019, the Company made contributions to each eligible participant’s account each year, generally based on the participant’s 401(k) contribution made during that year. Shares were then released from the suspense accounts and allocated to each participant’s account based on the amount of the contribution and the fair value of the shares. Compensation expense for these amounts were measured based upon the expected amount of the Company’s discretionary contribution determined on an annual basis and accrued ratably over the year. Shares were committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability was based upon fair value of the shares and became outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, was shown as a reduction of stockholders’ equity. To the extent that the fair value of the ESOP shares differed from the cost of such shares, the difference was charged or credited to stockholders’ equity as additional paid in capital. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. |
Earnings Per Share | Earnings Per Share Earnings per share (“EPS”) are based upon the weighted-average number of shares outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adoption of New Accounting Standards In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which requires an entity to 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. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018. Adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial statements and related disclosures because the Company’s primary sources of revenues are derived from interest income on financial assets that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption. However, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which amends certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the Company’s other deferred tax assets. The adoption of ASU 2016-01 on January 1, 2018 did not have a material impact on the Company’s consolidated financial statements. In accordance with (iv) above, the Company measured the fair value of its loan portfolio prospectively using an exit price notion. See Note 16, Fair Value Disclosures, for further information regarding the valuation of these loans. Recent Accounting Pronouncements ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , (“ASU 2017-04”) eliminates the second step in the goodwill impairment test described above. In addition, the amendment eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform the second step of the goodwill impairment test. For public companies, ASU 2017-04 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is in the process of evaluating the impact of this pronouncement on the consolidated financial statements, which is not expected to be significant. ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current GAAP, however Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. ASU 2016-13 affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public business entities, ASU 2016-13 is effective for financial statements issued for fiscal years beginning after December 15, 2019 and interim periods therein, with early adoption permitted on January 1, 2019. The Company expects ASU 2016-13 to have a significant impact on the Company’s accounting policies, internal controls over financial reporting and footnote disclosures. The Company has assessed its data and system needs and has begun designing its financial models to estimate expected credit losses in accordance with the standard. Further development, testing and evaluation of those models is required to determine the impact that adoption of this standard will have on the financial condition and results of operations of the Company. ASU 2016-02, Leases (Topic 842) (“ASU 2016-02”) is intended to improve the reporting of leasing transactions by increasing transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-11, “Targeted Improvements.” The new standard was adopted by the Company on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption. The Company has elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and will not restate comparative periods. The Company expects that the adoption of ASU 2016-02 will result in the recognition of right-of use-assets and corresponding lease liabilities totaling $7,500 to $9,500 as of the date of adoption. The initial balance sheet gross up upon adoption is primarily related to operating leases of certain real estate properties. The Company has no material leasing arrangements for which it is the lessor of property or equipment. The Company has made an accounting policy election not to apply the recognition requirements in the new standard to short-term leases. The Company has elected to apply the package of practical expedients as both the lessor and lessee allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The Company has also elected to use the practical expedient to make an accounting policy election for leases of certain underlying assets to include both lease and nonlease components as a single component and account for that single component as a lease. Adoption of ASU 2016-02 is not expected to materially change the Company’s recognition of lease expense in future periods. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Lives of the Respective Assets | Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years Operating lease intangible Lease term In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 December 31, 2017 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 8.7 years $ 17,007 $ 2,694 $ 14,313 Servicing asset 6.8 years 1,621 406 1,215 Other intangible assets 3.3 years 5,281 368 4,913 $ 23,909 $ 3,468 $ 20,441 |
Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS | The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2018 , 2017 and 2016 . Year Ended December 31, 2018 2017 2016 Earnings (numerator) Net income $ 39,341 $ 15,152 $ 12,551 Less: preferred stock dividends — 42 — Net income allocated to common stockholders $ 39,341 $ 15,110 $ 12,551 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 24,169 18,404 10,849 Dilutive effect of employee stock-based awards 421 406 209 Adjusted weighted average shares outstanding 24,590 18,810 11,058 Earnings per share: Basic $ 1.63 $ 0.82 $ 1.16 Diluted $ 1.60 $ 0.80 $ 1.13 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Year Ended December 31, 2018 2017 2016 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 29,178 $ 10,680 $ 5,607 Cash paid for income taxes 6,525 9,761 8,250 Supplemental Disclosures of Non-Cash Flow Information: Net issuance of common stock for vesting of restricted stock units $ 595 $ 312 $ 175 Net foreclosure of other real estate owned and repossessed assets 8 1,037 283 Transfers to assets held for sale — 33,552 — Transfers to liabilities held for sale — 64,627 — |
Schedule of Supplemental Noncash Investing Activities | Year Ended December 31, 2018 2017 2016 Noncash assets acquired (1) Investment securities $ — $ 220,444 $ — Loans (4,050 ) 1,060,436 — Accrued interest receivable — 4,293 — Bank premises, furniture and equipment 1,162 24,424 — Non-marketable equity securities — 8,847 — Other real estate owned — 448 — Intangible assets (956 ) 16,722 — Goodwill 1,995 134,797 — Other assets 1,806 484,097 — Total assets $ (43 ) $ 1,954,508 $ — Noncash liabilities assumed (1) Deposits $ 303 $ 1,205,217 $ — Accounts payable and accrued expenses (2) — 7,571 — Accrued interest payable and other liabilities (260 ) 948 — Advances from FHLB — 84,625 Other borrowings — 8,609 — Total liabilities $ 43 $ 1,306,970 $ — Non-cash equity assumed Preferred stock - series D — 24,500 — Total equity — 24,500 — 5,117,642 shares of common stock exchanged in connection with the Sovereign acquisition — 136,385 — 1,449,944 shares of common stock exchanged in connection with the Liberty acquisition $ — $ 40,337 $ — (1) Represents adjustments to estimates recorded for acquisitions of Sovereign Bancshares, Inc. (“Sovereign”) and Liberty Bancshares, Inc. (“Liberty”). Refer to Note 24, Business Combinations for further discussion. (2) Accounts payable and accrued expenses includes accrued preferred stock dividends of $185 for the year ended December 31, 2017. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Carrying Amount and Approximate Fair Values of Available-For-Sale Securities | The amortized cost, related gross unrealized gains and losses recognized in accumulated other comprehensive loss, and fair value of securities are as follows: December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 9,096 $ — $ 118 $ 8,978 Corporate bonds 26,518 84 134 26,468 Municipal securities 40,275 10 338 39,947 Mortgage-backed securities 97,117 101 2,167 95,051 Collateralized mortgage obligations 92,906 197 1,344 91,759 Asset-backed securities 492 — — 492 $ 266,404 $ 392 $ 4,101 $ 262,695 December 31, 2017 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 10,829 $ 9 $ 18 $ 10,820 Corporate bonds 17,500 330 — 17,830 Municipal securities 55,499 189 211 55,477 Mortgage-backed securities 91,734 58 1,068 90,724 Collateralized mortgage obligations 53,559 9 925 52,643 Asset-backed securities 616 7 — 623 $ 229,737 $ 602 $ 2,222 $ 228,117 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | The following tables disclose the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: December 31, 2018 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 5,671 $ 68 $ 3,306 $ 50 $ 8,977 $ 118 Corporate bonds 6,689 134 — — 6,689 134 Municipal securities 16,043 92 10,428 246 26,471 338 Mortgage-backed securities 24,277 279 59,637 1,888 83,914 2,167 Collateralized mortgage obligations 18,765 71 42,536 1,273 61,301 1,344 $ 71,445 $ 644 $ 115,907 $ 3,457 $ 187,352 $ 4,101 December 31, 2017 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 3,470 $ 4 $ 629 $ 14 $ 4,099 $ 18 Municipal securities 14,593 79 7,092 132 21,685 211 Mortgage-backed securities 52,075 513 29,485 555 81,560 1,068 Collateralized mortgage obligations 31,581 395 20,305 530 51,886 925 $ 101,719 $ 991 $ 57,511 $ 1,231 $ 159,230 $ 2,222 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available-For-Sale, by Contractual Maturity | Therefore, these securities are not included in the maturity categories below. December 31, 2018 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,963 $ 2,966 Due from one year to five years 34,933 34,854 Due from five years to ten years 19,682 19,468 Due after ten years 18,311 18,105 75,889 75,393 Mortgage-backed securities 97,117 95,051 Collateralized mortgage obligations 92,906 91,759 Asset-backed securities 492 492 $ 266,404 $ 262,695 December 31, 2017 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,328 $ 2,330 Due from one year to five years 29,654 29,991 Due from five years to ten years 34,480 34,474 Due after ten years 17,366 17,332 83,828 84,127 Mortgage-backed securities 91,734 90,724 Collateralized mortgage obligations 53,559 52,643 Asset-backed securities 616 623 $ 229,737 $ 228,117 |
Schedule of Proceeds From Sales of Investment Securities Available-For-Sale and Gross Gains and Losses | Proceeds from sales of investment securities available for sale and gross realized gains and losses for the years ended December 31, 2018 , 2017 and 2016 were as follows: December 31, 2018 2017 2016 Proceeds from sales $ 40,822 $ 159,869 $ 8,378 Gross realized gains 335 398 43 Gross realized losses 399 176 40 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans | Loans in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Real estate: Construction and land $ 324,863 $ 277,825 Farmland 10,528 9,385 1 - 4 family residential 297,917 236,542 Multi-family residential 51,285 106,275 Commercial real estate 1,103,032 909,292 Commercial 760,772 684,551 Consumer 7,112 9,648 2,555,509 2,233,518 Deferred loan fees (15 ) (28 ) Allowance for loan losses (19,255 ) (12,808 ) $ 2,536,239 $ 2,220,682 December 31, 2018 December 31, 2017 Carrying amount $ 39,528 $ 47,612 Outstanding balance 49,902 63,940 Changes in the accretable yield for PCI loans for the years ended December 31, 2018 and December 31, 2017 are included in table below. There was no accretable yield balance for PCI loans for the year ended December 31, 2016. Year Ended December 31, 2018 Year Ended Balance at beginning of period $ 2,723 $ — Purchase accounting adjustments 1,459 3,927 Reclassifications from nonaccretable 19,162 — Accretion (4,597 ) (1,204 ) Balance at year-end $ 18,747 $ 2,723 |
Schedule of Non-Accrual Loans, Excluding Purchased Credit Impaired Loans, Aggregated By Class of Loans | Non-accrual loans, aggregated by class of loans, as of December 31, 2018 and 2017 , were as follows: December 31, 2018 2017 Real estate: Construction and land $ 2,399 $ — Farmland — — 1 - 4 family residential — — Multi-family residential — — Commercial real estate 2,575 61 Commercial 19,769 398 Consumer 2 6 $ 24,745 $ 465 |
Schedule of Age Analysis of Past Due Loans, Excluding Purchased Credit Impaired Loans, Aggregated by Class of Loans | An age analysis of past due loans, aggregated by class of loans, as of December 31, 2018 and 2017 is as follows: December 31, 2018 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Loans Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 305 $ — $ — $ 305 $ 324,558 $ — $ 324,863 $ — Farmland — — — — 10,528 — 10,528 — 1 - 4 family residential 131 266 — 397 297,435 85 297,917 — Multi-family residential — — — — 51,285 — 51,285 — Commercial real estate 3,465 — — 3,465 1,082,559 17,008 1,103,032 — Commercial 816 828 — 1,644 735,391 23,737 760,772 — Consumer 10 — — 10 7,102 — 7,112 — $ 4,727 $ 1,094 $ — $ 5,821 $ 2,508,858 $ 40,830 $ 2,555,509 $ — (1) Loans 90 days past due and still accruing excludes $527 of PCI loans as of December 31, 2018. December 31, 2017 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current (1) PCI Total Loans Total 90 Days Past Due and Still Accruing (2) Real estate: Construction and land $ 320 $ — $ — $ 320 $ 277,505 $ — $ 277,825 $ — Farmland 104 — — 104 9,232 49 9,385 — 1 - 4 family residential 1,274 139 — 1,413 235,030 99 236,542 — Multi-family residential — — — — 106,275 — 106,275 — Commercial real estate 1,830 — — 1,830 890,145 17,317 909,292 — Commercial 1,849 389 389 2,627 651,777 30,147 684,551 — Consumer 39 51 18 108 9,540 — 9,648 18 $ 5,416 $ 579 $ 407 $ 6,402 $ 2,179,504 $ 47,612 $ 2,233,518 $ 18 (1) To conform to the current period presentation, $15,123 of loans were reclassified from 1-4 family residential to multi-family residential within the total current column. Additionally, PCI loan balances were reclassified from the total current column to the PCI column. (2) Loans 90 days past due and still accruing excludes $3,300 of PCI loans as of December 31, 2017. |
Summary of Impaired Loans, Including Purchased Credit Impaired Loans and Troubled Debt Restructurings | Impaired loans, including TDRs, at December 31, 2018 and 2017 are summarized in the following tables. December 31, 2018 (1) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment YTD Real estate: Construction and land $ 2,016 $ 2,016 $ — $ 2,016 $ — $ 2,262 Farmland — — — — — — 1 - 4 family residential 542 542 — 542 — 565 Multi-family residential — — — — — — Commercial real estate 2,939 2,939 — 2,939 — 3,032 Commercial 3,228 644 2,584 3,228 368 3,351 Consumer 66 66 — 66 — 79 Total $ 8,791 $ 6,207 $ 2,584 $ 8,791 $ 368 $ 9,289 (1) Loans reported exclude PCI loans. December 31, 2017 (1) Unpaid Contractual Principal Balance Recorded Investment with No Allowance Recorded Investment with Allowance Total Recorded Investment Related Allowance Average Recorded Investment YTD Real estate: Construction and land $ — $ — $ — $ — $ — $ — Farmland — — — — — — 1 - 4 family residential 161 161 — 161 — 163 Multi-family residential — — — — — — Commercial real estate 434 434 — 434 — 445 Commercial 398 282 116 398 12 499 Consumer 75 75 — 75 — 87 Total $ 1,068 $ 952 $ 116 $ 1,068 $ 12 $ 1,194 (1) Loans reported exclude PCI loans. |
Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings | The terms of certain loans modified as TDRs during the year ended December 31, 2018 and December 31, 2016 are summarized in the following tables: During the year ended December 31, 2018 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 3 $ 628 $ — $ 612 $ — $ — Total 3 $ 628 $ — $ 612 $ — $ — During the year ended December 31, 2016 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 2 $ 175 $ — $ — $ 169 $ — Consumer 1 81 — — 81 — Total 3 $ 256 $ — $ — $ 250 $ — |
Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans | The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2018 and 2017 : December 31, 2018 Pass Special Mention Substandard Doubtful PCI Total Real estate: Construction and land $ 320,987 $ 1,860 $ 2,016 $ — $ — $ 324,863 Farmland 10,528 — — — — 10,528 1 - 4 family residential 296,870 236 726 — 85 297,917 Multi-family residential 51,285 — — — — 51,285 Commercial real estate 1,065,982 7,056 12,986 — 17,008 1,103,032 Commercial 720,583 8,900 7,552 — 23,737 760,772 Consumer 6,950 — 162 — — 7,112 Total $ 2,473,185 $ 18,052 $ 23,442 $ — $ 40,830 $ 2,555,509 December 31, 2017 Pass (1) Special Mention Substandard Doubtful PCI Total Real estate: Construction and land $ 277,186 $ 639 $ — $ — $ — $ 277,825 Farmland 9,336 — — — 49 9,385 1 - 4 family residential 235,781 462 200 — 99 236,542 Multi-family residential 106,275 — — — — 106,275 Commercial real estate 882,523 8,771 681 — 17,317 909,292 Commercial 634,796 18,337 1,155 116 30,147 684,551 Consumer 9,540 — 108 — — 9,648 Total $ 2,155,437 $ 28,209 $ 2,144 $ 116 $ 47,612 $ 2,233,518 (1) To conform to the current period presentation, $15,123 was reclassified from 1-4 family residential to multi-family residential within the pass column. There were no reclassifications between internal rating categories. |
Schedule of Analysis of the Allowance for Loan Losses | An analysis of the allowance for loan losses for the years ended December 31, 2018 , 2017 and 2016 is as follows: For the For the For the Year Ended Year Ended Year Ended December 31, 2018 December 31, 2017 December 31, 2016 Balance at beginning of year $ 12,808 $ 8,524 $ 6,772 Provision charged to earnings 6,603 5,114 2,050 Charge-offs (197 ) (839 ) (333 ) Recoveries 41 9 35 Net charge-offs (156 ) (830 ) (298 ) Balance at end of year $ 19,255 $ 12,808 $ 8,524 |
Summary of Activity in the Allowance for Loan Losses By Class of Loans | The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. There were no allowance for loan losses related to PCI loans at December 31, 2017 and 2016. December 31, 2018 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Provision (recapture) charged to earnings 929 502 2,053 3,100 19 6,603 Charge-offs — — — (175 ) (22 ) (197 ) Recoveries — — — 41 — 41 Net charge-offs (recoveries) — — — (134 ) (22 ) (156 ) Balance at end of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Period-end amount allocated to: Specific reserves $ — $ — $ — $ 368 $ — $ 368 PCI reserves — — — 1,302 — 1,302 General reserves 2,244 1,975 6,463 6,884 19 17,585 Total $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 December 31, 2017 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Provision (recapture) charged to earnings (100 ) 368 1,407 3,452 (13 ) 5,114 Charge-offs — (11 ) — (828 ) — (839 ) Recoveries — — — 9 — 9 Net charge-offs (recoveries) — (11 ) — (819 ) — (830 ) Balance at end of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 12 $ — $ 12 General reserves 1,315 1,473 4,410 5,576 22 12,796 Total $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 December 31, 2016 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,104 $ 1,124 $ 2,189 $ 2,324 $ 31 $ 6,772 Provision (recapture) charged to earnings 311 (8 ) 814 913 20 2,050 Charge-offs — — — (314 ) (19 ) (333 ) Recoveries — — — 32 3 35 Net charge-offs (recoveries) — — — (282 ) (16 ) (298 ) Balance at end of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 246 $ 4 $ 250 General reserves 1,415 1,116 3,003 2,709 31 8,274 Total $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 |
Schedule of Recorded Investment in Loans Related to the Balance in the Allowance for Loan Losses on the Basis of the Company's Impairment Methodology | The Company’s recorded investment in loans as of December 31, 2018 and 2017 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: December 31, 2018 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ 2,016 $ 542 $ 2,939 $ 3,228 $ 66 $ 8,791 Loans collectively evaluated for impairment 333,375 348,575 1,083,085 733,807 7,046 2,505,888 PCI loans — 85 17,008 23,737 — 40,830 Total $ 335,391 $ 349,202 $ 1,103,032 $ 760,772 $ 7,112 $ 2,555,509 December 31, 2017 Real Estate Construction, Land and Farmland Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ — $ 161 $ 434 $ 398 $ 75 $ 1,068 Loans collectively evaluated for impairment 287,161 342,557 891,541 654,006 9,573 2,184,838 PCI loans 49 99 17,317 30,147 — 47,612 Total $ 287,210 $ 342,817 $ 909,292 $ 684,551 $ 9,648 $ 2,233,518 |
Schedule of Summary of Changes in Servicing Assets | A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2018 2017 Balance at beginning of year $ 1,215 $ 601 Servicing assets acquired through acquisition — 313 Increase from loan sales 470 522 Amortization charged as a reduction to income (381 ) (193 ) Transfer of servicing assets to held for sale — (28 ) Balance at year-end $ 1,304 $ 1,215 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Bank Premises and Equipment | Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Building and improvements $ 37,526 $ 35,239 Site improvements 672 140 Tenant improvements 744 744 Leasehold improvements 4,456 5,132 Land 33,393 33,002 Furniture, fixtures and equipment 9,426 7,588 Construction in Progress 2,182 456 88,399 82,301 Less accumulated depreciation 9,990 7,050 $ 78,409 $ 75,251 |
Non-marketable Equity Securit_2
Non-marketable Equity Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Non-marketable Equity Securities. | |
Schedule of investments in non-marketable equity | Investments in non-marketable equity securities in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 FRB of Dallas stock $ 12,324 $ 3,482 FHLB of Dallas stock 2,957 6,431 Other non-marketable equity securities 7,541 3,819 $ 22,822 $ 13,732 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years Operating lease intangible Lease term In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 December 31, 2017 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 8.7 years $ 17,007 $ 2,694 $ 14,313 Servicing asset 6.8 years 1,621 406 1,215 Other intangible assets 3.3 years 5,281 368 4,913 $ 23,909 $ 3,468 $ 20,441 |
Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2018 was as follows: Year Amount 2019 $ 2,961 2020 2,744 2021 2,169 2022 1,959 2023 1,789 Thereafter 4,274 $ 15,896 The below table summarizes the costs, accumulated amortization/depreciation and net carrying amount of the corporate building asset and liability components as they are presented on the consolidated balance sheets as of December 31, 2018 and 2017. 2018 2017 Cost Accumulated Amortization/ Depreciation Net Carrying Amount Cost Accumulated Amortization/ Depreciation Net Carrying Amount Bank premises, furniture and equipment: Building and improvements $ 19,903 $ (535 ) $ 19,368 $ 19,872 $ (33 ) $ 19,839 Site and tenant improvements 884 (308 ) 576 884 (32 ) 852 Land 16,781 — 16,781 16,781 — 16,781 37,568 (843 ) 36,725 37,537 (65 ) 37,472 Intangible assets: Intangible lease assets 4,765 (2,113 ) 2,652 4,765 (241 ) 4,524 Accrued interest payable and other liabilities: Intangible lease obligations 584 (168 ) 416 584 (19 ) 565 Total $ 41,749 $ (2,788 ) $ 38,961 $ 41,718 $ (287 ) $ 41,431 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Balance as of December 31, 2017 $ 159,452 $ 26,865 Sovereign acquisition 2,210 109,091 Liberty acquisition (215 ) 23,496 Balance as of December 31, 2018 $ 161,447 $ 159,452 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule Summarized of the Deposits | Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2018 2017 Noninterest-bearing demand accounts $ 626,283 $ 612,830 Interest-bearing demand accounts 146,969 187,516 Savings accounts 33,147 52,822 Limited access money market accounts 1,133,045 960,149 Certificates of deposit, greater than $100 392,935 419,888 Certificates of deposit, less than $100 290,049 45,425 Total $ 2,622,428 $ 2,278,630 |
Scheduled Maturities of Certificate of Deposits | As of December 31, 2018 , the scheduled maturities of certificates of deposit were as follows: Year Amount 2019 $ 576,466 2020 71,686 2021 28,777 2022 3,526 2023 2,529 Total $ 682,984 |
Advances from the Federal Hom_2
Advances from the Federal Home Loan Bank ("FHLB") (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at December 31, 2018 were as follows: 2019 $ 25,000 2022 3,019 Total $ 28,019 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Junior Subordinated Debentures and Subordinated Notes | Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2018 2017 Junior subordinated debentures $ 11,702 $ 11,702 Subordinated notes (1) 4,989 4,987 Federal funds purchased — 15,000 (1) Subordinated notes are net of discount of $11 and $13 as of December 31, 2018 and 2017 , respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The provision for income taxes is summarized as follows: Year Ended December 31, 2018 2017 2016 Income tax expense (benefit): Current $ 8,189 $ 7,886 $ 7,833 Deferred 2,707 5,143 (1,366 ) $ 10,896 $ 13,029 $ 6,467 |
Schedule of Income Tax Expense and the Effective Tax Rates | The table below reconciles income tax expense for the years ended December 31, 2018 , 2017 and 2016 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2018 2017 2016 Federal incomes tax expense rate at 21% for December 31, 2018 and 35% for December 31, 2017 and 2016 $ 10,550 $ 9,863 $ 6,656 Bank-owned life insurance (124 ) (206 ) (216 ) Non-deductible dues and memberships 104 132 59 Non-deductible meals and entertainment 108 80 49 Non-deductible transaction costs 727 202 — Tax exempt interest income (169 ) (178 ) — Excess tax benefit from stock compensation (248 ) (268 ) — Deferred tax asset re-measurement due to the Tax Act 34 3,051 — Other (86 ) 353 (81 ) Total income tax expense $ 10,896 $ 13,029 $ 6,467 Effective tax rate 21.7 % 46.2 % 34.0 % |
Schedule of Significant Components of the Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2018 2017 Deferred tax assets: Organizational costs $ 52 $ 64 Allowance for loan losses 3,985 2,592 Capital loss carryforward 57 57 FHLB Borrowing 21 28 Deferred rent expenses 511 302 Restricted stock 264 201 Stock options 652 334 Accrued bonuses 372 22 Loan discounts 2,176 4,805 Deferred compensation 193 115 Other real estate owned — 219 Net unrealized gain on securities available for sale 779 340 Other 130 137 Total deferred tax assets 9,192 9,216 Deferred tax liabilities: Core deposit intangibles 2,187 3,034 Partnership investments 487 497 Bank premises and equipment 1,959 912 Prepaid expenses 342 — Other 67 163 Total deferred tax liabilities 5,042 4,606 Net deferred tax asset $ 4,150 $ 4,610 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of minimum future rental payments under non-cancelable operating leases | As of December 31, 2018 , future minimum payments receivable under non-cancelable operating leases for each of the next five years were: Year Ending December 31, Future Minimum Rental Payments 2019 $ 2,097 2020 1,908 2021 1,113 2022 646 2023 163 Total $ 5,927 As of December 31, 2018 , future minimum rental payments, exclusive of taxes and other charges, under non-cancelable operating leases for each of the next five years were: Year Ending December 31, Future Minimum Rentals Payments 2019 $ 1,913 2020 1,696 2021 1,294 2022 1,138 2023 962 Thereafter 1,794 Total $ 8,797 |
Schedule of loss contingencies | cease-use liability for the years ended December 31, 2018 and 2017 is as follows: Year Ended December 31, 2018 2017 Beginning Balance $ 1,407 $ — Additions — 1,524 Payments (86 ) (117 ) Reversal upon lease assignment (669 ) — Ending Balance $ 652 $ 1,407 |
Schedule of cost, amortization, depreciation, and carrying amount | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2018 was as follows: Year Amount 2019 $ 2,961 2020 2,744 2021 2,169 2022 1,959 2023 1,789 Thereafter 4,274 $ 15,896 The below table summarizes the costs, accumulated amortization/depreciation and net carrying amount of the corporate building asset and liability components as they are presented on the consolidated balance sheets as of December 31, 2018 and 2017. 2018 2017 Cost Accumulated Amortization/ Depreciation Net Carrying Amount Cost Accumulated Amortization/ Depreciation Net Carrying Amount Bank premises, furniture and equipment: Building and improvements $ 19,903 $ (535 ) $ 19,368 $ 19,872 $ (33 ) $ 19,839 Site and tenant improvements 884 (308 ) 576 884 (32 ) 852 Land 16,781 — 16,781 16,781 — 16,781 37,568 (843 ) 36,725 37,537 (65 ) 37,472 Intangible assets: Intangible lease assets 4,765 (2,113 ) 2,652 4,765 (241 ) 4,524 Accrued interest payable and other liabilities: Intangible lease obligations 584 (168 ) 416 584 (19 ) 565 Total $ 41,749 $ (2,788 ) $ 38,961 $ 41,718 $ (287 ) $ 41,431 |
Schedule of other commitments | As of December 31, 2018 , the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2019 $ 1,303 2020 825 2021 129 2022 22 2023 21 Thereafter 145 Total $ 2,445 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2018 and 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2018 Investment securities available for sale $ — $ 262,695 $ — $ 262,695 As of December 31, 2017 Investment securities available for sale $ — $ 228,117 $ — $ 228,117 |
Schedule of Assets Measured at Fair Value on a Non-recurring Basis | The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2018 and 2017 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2018 Assets: Impaired loans $ — $ — $ 2,584 $ 2,584 As of December 31, 2017 Assets: Impaired loans $ — $ — $ 116 $ 116 Other real estate owned $ — $ — $ 449 $ 449 |
Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments | The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of December 31, 2018 and 2017 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 84,449 $ — $ 84,449 $ — Loans held for sale 1,258 — 1,258 — Loans 2,555,494 — — 2,553,376 Accrued interest receivable 8,828 — 8,828 — Bank-owned life insurance 22,064 — 22,064 — Servicing asset 834 — 834 — Non-marketable equity securities 22,822 — 22,822 — Financial liabilities: Deposits $ 2,622,428 $ — $ 2,506,379 $ — Advances from FHLB 28,019 — 28,063 — Accrued interest payable 1,135 — 1,135 — Subordinated debentures and subordinated notes 16,691 — 16,691 — December 31, 2017 Financial assets: Cash and cash equivalents $ 149,044 $ — $ 149,044 $ — Loans held for sale 841 — 841 — Loans 2,220,682 — — 2,234,094 Accrued interest receivable 7,676 — 7,676 — Bank-owned life insurance 21,476 — 21,476 — Servicing asset 1,243 — 1,243 — Non-marketable equity securities 13,732 — 13,732 — Financial instruments assets held for sale 31,828 — 5,515 26,313 Financial liabilities: Deposits $ 2,278,630 $ — $ 2,164,498 $ — Advances from FHLB 71,164 — 70,110 — Accrued interest payable 445 — 445 — Subordinated debentures and subordinated notes 16,689 — 16,689 — Financial instruments liabilities held for sale 64,300 — 64,300 — |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Approximate Amounts of Financial Instruments with Off-balance Sheet Risk | The following table sets forth the approximate amounts of these financial instruments as of December 31, 2018 and 2017 : December 31, 2018 2017 Commitments to extend credit $ 962,436 $ 606,451 Standby and commercial letters of credit 5,431 9,299 $ 967,867 $ 615,750 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Summary of ESOP Shares | The following is a summary of the ESOP shares as of December 31, 2018 and December 31, 2017 . December 31, 2018 2017 Allocated shares 63,040 53,269 Unearned shares — 9,771 Total ESOP shares 63,040 63,040 Fair value of unearned shares $ — $ 256 |
Stock and Incentive Plans (Tabl
Stock and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of option activity | December 31, 2018 , 2017 and 2016 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Underlying Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 and 2016 325,500 $ 10.15 4.56 years Forfeited (3,000 ) 10.00 Exercised (17,500 ) 10.00 $ 308 Outstanding at December 31, 2017 305,000 $ 10.16 3.59 years Exercised (30,000 ) 10.61 323 Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years $ 3,098 Options exercisable at December 31, 2018 272,000 $ 10.09 2.36 years $ 3,070 A summary of the status of the Company’s options under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 changes during the year then ended, is as follows: 2014 Omnibus Plan Nonperformance-based stock options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 52,080 $ 14.35 9.12 years Granted 76,286 15.98 Outstanding at December 31, 2016 128,366 $ 15.32 8.69 years Granted 212,983 26.97 Forfeited (9,082 ) $ 19.45 Exercised (1,544 ) 15.00 Outstanding at December 31, 2017 330,723 $ 22.71 8.86 years Granted 137,576 28.04 Forfeited (4,083 ) 27.59 Exercised (14,696 ) 15.29 $ 89 Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years $ (1,409 ) Options exercisable at end of period 129,115 $ 20.04 7.36 years $ 173 Weighted average fair value of options granted during the period $ 9.78 |
Summary of status of the Company's restricted shares or restricted stock units | A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2018 , 2017 , and 2016 and changes during the years is presented below: 2010 Incentive Plan Nonperformance-based restricted stock units Shares Weighted Average Exercise Outstanding at December 31, 2015 39,750 $ 11.34 Vested into shares (12,000 ) 10.00 Outstanding at December 31, 2016 27,750 $ 11.92 Forfeited (2,500 ) 10.85 Vested into shares (1,000 ) 10.85 Outstanding at December 31, 2017 24,250 $ 13.19 Forfeited (500 ) 10.85 Vested into shares (23,750 ) 12.14 Outstanding at December 31, 2018 — $ — A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 , and changes during the year then ended is as follows: 2014 Omnibus Plan Nonperformance-based restricted stock units Shares Weighted Outstanding at December 31, 2015 70,919 $ 13.29 Granted 25,060 15.83 Vested into shares (28,023 ) 14.35 Outstanding at December 31, 2016 67,956 $ 13.79 Granted 121,125 27.19 Vested into shares (34,342 ) 19.74 Forfeited (4,017 ) 21.36 Outstanding at December 31, 2017 150,722 $ 13.29 Granted 60,650 29.27 Vested into shares (73,988 ) 24.44 Forfeited (3,929 ) 26.29 Outstanding at December 31, 2018 133,455 $ 19.67 A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 , and changes during the years then ended is as follows: 2014 Omnibus Plan Performance-based restricted stock units Shares Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 25,474 $ 8.72 Granted 34,190 9.52 Vested into shares (8,467 ) 14.17 Outstanding at December 31, 2016 51,197 $ 13.30 Granted 26,398 24.43 Vested into shares (19,861 ) 15.34 Forfeited (4,140 ) 17.91 Outstanding at December 31, 2017 53,594 $ 17.68 Granted 40,269 27.59 Vested into shares (28,109 ) 18.69 Forfeited (1,766 ) 27.59 Outstanding at December 31, 2018 63,988 $ 21.28 |
Schedule of assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants: For the Year Ended December 31, 2018 2017 2016 Dividend yield — % — % — % Expected life 5.0 to 7.5 years 6.13 to 7.5 years 5.0 to 6.5 years Expected volatility 27.87% to 37.55% 30.56% to 33.19% 33.37% to 37.55% Risk-free interest rate 1.06% to 2.94% 1.96% to 2.32% 1.06% to 2.01% |
Schedule of employee stock purchase plan activity | A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2018 , 2017 and 2016 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2018 2017 2016 Nonperformance-based stock options exercised 383 41 — Nonperformance-based restricted stock units vested 2,128 568 505 Performance-based restricted stock units vested 745 530 137 December 31, 2018 , 2017 and 2016 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2018 2017 2016 Nonperformance-based stock options exercised 803 488 — Nonperformance-based restricted stock units vested 713 26 194 |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio As of December 31, 2018 Total capital (to risk-weighted assets) Company $ 394,419 12.98 % $ 243,093 8.0 % n/a n/a Bank 353,640 11.64 243,052 8.0 $ 303,814 10.0 % Tier 1 capital (to risk-weighted assets) Company 370,175 12.18 182,352 6.0 n/a n/a Bank 334,385 11.01 182,226 6.0 242,968 8.0 Common equity tier 1 (to risk-weighted assets) Company 358,473 11.80 136,706 4.5 n/a n/a Bank 334,385 11.01 136,670 4.5 197,412 6.5 Tier 1 capital (to average assets) Company 370,175 12.04 122,982 4.0 n/a n/a Bank 334,385 10.87 123,049 4.0 153,811 5.0 As of December 31, 2017 Total capital (to risk-weighted assets) Company $ 342,521 13.16 % $ 208,219 8.0 % n/a n/a Bank 296,207 11.37 208,413 8.0 $ 260,516 10.0 % Tier 1 capital (to risk-weighted assets) Company 324,726 12.48 156,118 6.0 n/a n/a Bank 283,399 10.88 156,286 6.0 208,382 8.0 Common equity tier 1 (to risk-weighted assets) Company 313,024 12.03 117,091 4.5 n/a n/a Bank 283,399 10.88 117,215 4.5 169,310 6.5 Tier 1 capital (to average assets) Company 324,726 12.92 100,534 4.0 n/a n/a Bank 283,399 11.28 100,496 4.0 125,620 5.0 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Acquired Assets and Assumed Liabilities | Estimate at December 31, 2017 Adjustments Final Fair Value Assets Cash and cash equivalents $ 57,384 $ — $ 57,384 Investment securities 54,137 — 54,137 Loans 312,608 572 313,180 Accrued interest receivable 1,191 — 1,191 Bank premises, furniture and equipment 6,145 688 6,833 Non-marketable equity securities 2,096 — 2,096 Other real estate owned 166 — 166 Intangible assets 7,519 (1,705 ) 5,814 Goodwill 23,496 (215 ) 23,281 Other assets 2,509 617 3,126 Total assets $ 467,251 $ (43 ) $ 467,208 Liabilities Deposits $ 395,851 $ (303 ) $ 395,548 Accounts payable and accrued expenses 1,287 260 1,547 Accrued interest payable and other liabilities 142 — 142 Subordinated notes (1) 4,625 — 4,625 Total liabilities $ 401,905 $ (43 ) $ 401,862 Consideration Market value of common stock issued $ 40,337 $ — $ 40,337 Cash paid $ 25,009 $ — $ 25,009 Total fair value of consideration $ 65,346 $ — $ 65,346 (1) The subordinated note was paid off in full on December 1, 2017, subsequent to closing. The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of August 1, 2017, showing the estimated fair value as reported at December 31, 2017, the measurement period adjustments and the fair value determined to be final as of March 31, 2018. Estimate at December 31, 2017 Adjustments Final Fair Value Assets Cash and cash equivalents $ 44,775 $ — $ 44,775 Investment securities 166,307 — 166,307 Loans 752,450 (4,622 ) 747,828 Accrued interest receivable 3,102 — 3,102 Bank premises, furniture and equipment 17,805 474 18,279 Non-marketable equity securities 6,751 — 6,751 Other real estate owned 282 — 282 Intangible assets 8,454 749 9,203 Goodwill 109,091 2,210 111,301 Other assets 13,148 1,189 14,337 Total Assets $ 1,122,165 $ — $ 1,122,165 Liabilities Deposits $ 809,366 $ — $ 809,366 Accounts payable and accrued expenses 6,284 — 6,284 Accrued interest payable and other liabilities 806 — 806 Advances from Federal Home Loan Bank 80,000 — 80,000 Junior subordinated debentures 8,609 — 8,609 Total liabilities $ 905,065 $ — $ 905,065 Preferred stock - series D 24,500 — 24,500 Total stockholders’ equity 24,500 — 24,500 Consideration Market value of common stock issued $ 136,385 $ — $ 136,385 Cash paid 56,215 — 56,215 Total fair value of consideration $ 192,600 $ — $ 192,600 |
Summary of Loans Acquired in a Business Combination | The following table discloses the fair value and contractual value of loans acquired from Liberty on December 1, 2017: PCI Loans Other Acquired Loans Total Acquired Loans Real Estate $ 868 $ 257,578 $ 258,446 Commercial 307 49,695 50,002 Consumer — 4,732 4,732 Total fair value 1,175 312,005 313,180 Contractual principal balance $ 1,748 $ 316,119 $ 317,867 The following table presents additional information about PCI loans acquired from Liberty on December 1, 2017: PCI Loans Contractually required principal and interest $ 2,316 Non-accretable difference 711 Cash flows expected to be collected $ 1,605 Accretable difference 430 Fair value of PCI loans $ 1,175 The following table discloses the fair value and contractual value of loans acquired from Sovereign on August 1, 2017: PCI Loans Other Acquired Loans Total Acquired Loans Real Estate $ 17,708 $ 518,261 $ 535,969 Commercial 29,877 180,730 210,607 Consumer — 1,252 1,252 Total fair value $ 47,585 $ 700,243 $ 747,828 Contractual principal balance $ 67,985 $ 707,071 $ 775,056 The following table presents additional information about PCI loans acquired from Sovereign on August 1, 2017: PCI Loans Contractually required principal and interest $ 85,125 Non-accretable difference 33,064 Cash flows expected to be collected 52,061 Accretable difference 4,476 Fair value of PCI loans $ 47,585 |
Summary of Finite-Lived Intangible Assets Acquired | The following table discloses the fair value of intangible assets acquired from Sovereign on August 1, 2017: Gross Intangible Asset Core deposit intangibles (1) $ 8,452 Servicing asset (2) 317 Intangible lease assets (3) 434 $ 9,203 (1) The Company estimated a useful life of 7.7 years for core deposit intangibles. (2) The Company estimated a weighted-average useful life of 6.1 years for servicing asset which will be amortized on a straight line basis. (3) The Company estimated a weighted-average useful life of 5.0 years for intangible lease assets which will be amortized on a straight line basis. |
Summary of Pro Forma Information, Business Acquisition | The following net interest income and net income available to common stockholders for the Sovereign and Liberty transactions are included in the Company’s operating results for the year ended December 31, 2017. Year Ended December 31, 2017 Net interest income $ 14,825 Net income available to common stockholders 4,615 The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been completed on the assumed date. Year Ended December 31, 2017 2016 Net interest income $ 102,440 $ 98,701 Net income available to common stockholders 22,270 26,984 Basic earnings per share $ 0.98 $ 1.55 Diluted earnings per share 0.96 1.53 |
Branch Assets and Liabilities_2
Branch Assets and Liabilities Held For Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Branch Assets and Liabilities Held for Sale | The following table presents the assets and liabilities held for sale as of December 31, 2018 and 2017. December 31, 2018 2017 Assets Cash and cash equivalents $ — $ 334 Loans — 26,313 Accrued interest receivable — 63 Bank premises, furniture and equipment — 5,118 Intangible assets — 1,724 Total assets $ — $ 33,552 Liabilities Deposits $ — $ 64,282 Accounts payable and accrued expenses — 2 Deferred tax liability — 327 Accrued interest payable and other liabilities — 16 Total liabilities $ — $ 64,627 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheet December 31, 2018 2017 Assets Cash and cash equivalents $ 40,474 $ 46,724 Investment in subsidiaries 506,902 459,654 Other assets 940 2,267 Total assets $ 548,316 $ 508,645 Liabilities and Stockholders’ Equity Other liabilities $ 987 $ 3,027 Other borrowings 16,691 16,689 Total liabilities 17,678 19,716 Stockholders’ equity Preferred stock — — Common stock 243 241 Additional paid-in capital 449,427 445,517 Retained earnings 83,968 44,627 Unallocated employee stock ownership plan shares — (106 ) Accumulated other comprehensive income (2,930 ) (1,280 ) Treasury stock (70 ) (70 ) Total stockholders’ equity 530,638 488,929 Total liabilities and stockholders’ equity $ 548,316 $ 508,645 |
Statements of Income | Statements of Income Year Ended December 31, 2018 2017 2016 Interest income: Other $ 20 $ 8 $ 2 Interest expense: Interest on borrowings 974 598 388 Net interest expense (954 ) (590 ) (386 ) Noninterest expense: Salaries and employee benefits 853 712 161 Merger and acquisition expense 4,415 2,256 828 Other — — 1 Total noninterest expense 5,268 2,968 990 Loss before income tax benefit and equity in undistributed income of subsidiaries (6,222 ) (3,558 ) (1,376 ) Income tax benefit (713 ) (730 ) (480 ) Loss before equity in undistributed income of subsidiaries (5,509 ) (2,828 ) (896 ) Equity in undistributed income of bank 44,850 17,980 13,447 Net income $ 39,341 $ 15,152 $ 12,551 |
Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2018 2017 2016 Cash flows from operating activities: Net income $ 39,341 $ 15,152 $ 12,551 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt costs 2 45 8 Equity in undistributed net income of Bank (44,850 ) (17,980 ) (13,447 ) Decrease (increase) in other assets 2,226 3,523 (155 ) (Decrease) increase in other liabilities (2,635 ) 1,353 270 Net cash (used in) provided by operating activities (5,916 ) 2,093 (773 ) Cash flows from investing activities: Net cash paid in Sovereign acquisition — (55,949 ) — Net cash paid in Liberty acquisition — (24,812 ) — Capital investment in subsidiary — — (10,000 ) Net cash used in investing activities — (80,761 ) (10,000 ) Cash flows from financing activities: Net proceeds from sale of common stock in public offering 2 56,681 94,518 Redemption of preferred stock — (24,500 ) — Net change in other borrowings — (4,625 ) — Proceeds from exercise of employee stock options 454 175 — Proceeds from payments on ESOP loan 109 109 109 Offering costs paid in connection with acquisition (899 ) (772 ) — Dividends paid on preferred stock — (42 ) — Net cash (used in) provided by financing activities (334 ) 27,026 94,627 Net (decrease) increase in cash and cash equivalents (6,250 ) (51,642 ) 83,854 Cash and cash equivalents at beginning of year 46,724 98,366 14,512 Cash and cash equivalents at end of year $ 40,474 $ 46,724 $ 98,366 |
Summary of Quarterly Financia_2
Summary of Quarterly Financial Statements (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, which are necessary for the fair presentation of the results of operations, for the periods presented. 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 37,774 $ 37,818 $ 34,555 $ 34,087 Interest Expense 9,487 8,642 6,931 4,985 Net interest income 28,287 29,176 27,624 29,102 Provision for loan losses 1,364 3,057 1,504 678 Noninterest income 4,027 2,510 2,592 2,781 Noninterest expense 17,538 18,246 16,169 17,306 Provision for income taxes 3,587 1,448 2,350 3,511 Net income available to common stockholders $ 9,825 $ 8,935 $ 10,193 $ 10,388 Earnings per share: Basic $ 0.41 $ 0.37 $ 0.42 $ 0.43 Diluted 0.40 0.36 0.42 0.42 2017 Fourth Quarter (1) Third Quarter (1) Second Quarter First Quarter Interest Income $ 29,897 $ 22,279 $ 14,307 $ 13,069 Interest Expense 4,147 3,150 1,931 1,816 Net interest income 25,750 19,129 12,376 11,253 Provision for loan losses 2,529 752 943 890 Noninterest income 2,298 1,977 1,766 1,535 Noninterest expense 15,035 12,522 7,782 7,450 Provision for income taxes 7,227 2,650 1,802 1,350 Net income 3,257 5,182 3,615 3,098 Less income available to common stockholders — 42 — — Net income available to common stockholders $ 3,257 $ 5,140 $ 3,615 $ 3,098 Earnings per share: Basic $ 0.14 $ 0.26 $ 0.24 $ 0.20 Diluted 0.14 0.25 0.23 0.20 (1) These results include the addition of Sovereign upon acquisition during the third quarter. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Organization (Details) | 12 Months Ended |
Dec. 31, 2018branch | |
Product Information [Line Items] | |
Number of mortgage offices | 1 |
Dallas-Fort Worth | |
Product Information [Line Items] | |
Number of branches | 20 |
Houston | |
Product Information [Line Items] | |
Number of branches | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Merger and acquisition expense | $ 5,220 | $ 2,691 | $ 0 |
Professional fees | $ 6,132 | 2,981 | $ 2,804 |
Adjustment To Conform To Current Presentation | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Merger and acquisition expense | 2,691 | ||
Professional fees | $ (2,691) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Restrictions On Cash (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Required regulatory cash reserve balances | $ 64.8 | $ 64.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Investment Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other-than-temporary impairment losses reflected in earnings as realized losses | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Bank Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Site improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Minimum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Minimum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Maximum | Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Maximum | Furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 10 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Core deposit intangibles | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful live | 7 years | ||
Core deposit intangibles | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful live | 10 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Marketing Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Marketing expense | $ 1,783 | $ 1,293 | $ 983 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Penalties and interest expense | $ 0 | $ 0 | $ 0 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings (numerator) | |||||||||||
Net income | $ 3,257 | $ 5,182 | $ 3,615 | $ 3,098 | $ 39,341 | $ 15,152 | $ 12,551 | ||||
Less: preferred stock dividends | 0 | 42 | 0 | 0 | 0 | 42 | 0 | ||||
Net income allocated to common stockholders | $ 9,825 | $ 8,935 | $ 10,193 | $ 10,388 | $ 3,257 | $ 5,140 | $ 3,615 | $ 3,098 | $ 39,341 | $ 15,110 | $ 12,551 |
Shares (denominator) | |||||||||||
Weighted average shares outstanding for basic EPS (thousands) (in shares) | 24,169 | 18,404 | 10,849 | ||||||||
Dilutive effect of employee stock-based awards (in shares) | 421 | 406 | 209 | ||||||||
Adjusted weighted average shares outstanding (in shares) | 24,590 | 18,810 | 11,058 | ||||||||
Earnings per share: | |||||||||||
Basic (in USD per share) | $ 0.41 | $ 0.37 | $ 0.42 | $ 0.43 | $ 0.14 | $ 0.26 | $ 0.24 | $ 0.20 | $ 1.63 | $ 0.82 | $ 1.16 |
Diluted (in USD per share) | $ 0.40 | $ 0.36 | $ 0.42 | $ 0.42 | $ 0.14 | $ 0.25 | $ 0.23 | $ 0.20 | $ 1.60 | $ 0.80 | $ 1.13 |
Excluded from diluted EPS weighted average shares (in shares) | 0 | 0 | 0 |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Disclosures of Cash Flow Information: | |||||
Cash paid for interest | $ 29,178 | $ 10,680 | $ 5,607 | ||
Cash paid for income taxes | 6,525 | 9,761 | 8,250 | ||
Supplemental Disclosures of Non-Cash Flow Information: | |||||
Net issuance of common stock for vesting of restricted stock units | 595 | 312 | 175 | ||
Net foreclosure of other real estate owned and repossessed assets | 8 | 1,037 | 283 | ||
Transfers to assets held for sale | 0 | 33,552 | 0 | ||
Transfers to liabilities held for sale | 0 | 64,627 | 0 | ||
Noncash assets acquired | |||||
Investment securities | 0 | 220,444 | 0 | ||
Loans | (4,050) | 1,060,436 | 0 | ||
Accrued interest receivable | 0 | 4,293 | 0 | ||
Bank premises, furniture and equipment | 1,162 | 24,424 | 0 | ||
Non-marketable equity securities | 0 | 8,847 | 0 | ||
Other real estate owned | 0 | 448 | |||
Intangible assets | (956) | 16,722 | 0 | ||
Goodwill | 1,995 | 134,797 | 0 | ||
Other assets | 1,806 | 484,097 | 0 | ||
Total assets | (43) | 1,954,508 | 0 | ||
Noncash liabilities assumed | |||||
Deposits | 303 | 1,205,217 | 0 | ||
Accounts payable and accrued expenses | 0 | 7,571 | 0 | ||
Accrued interest payable and other liabilities | (260) | 948 | 0 | ||
Advances from FHLB | 0 | 84,625 | |||
Other borrowings | 0 | 8,609 | 0 | ||
Total liabilities | 43 | 1,306,970 | 0 | ||
Equity | 49,000 | ||||
Accounts payable and accrued expenses | 185 | ||||
Sovereign Bancshares, Inc. | |||||
Noncash liabilities assumed | |||||
Equity | $ 24,500 | 0 | 24,500 | 0 | |
Market value of common stock issued | $ 136,385 | $ 0 | 136,385 | 0 | |
Shares of common stock exchanged in connection with acquisition (in shares) | 5,117,642 | ||||
Liberty Bancshares, Inc. | |||||
Noncash liabilities assumed | |||||
Market value of common stock issued | $ 40,337 | $ 0 | $ 40,337 | $ 0 | |
Shares of common stock exchanged in connection with acquisition (in shares) | 1,449,944 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - Forecast - Accounting Standards Update 2016-02 - Subsequent Event | Jan. 01, 2019USD ($) |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | $ 7,500 |
Operating lease liability | 7,500,000 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating lease, right-of-use asset | 9,500 |
Operating lease liability | $ 9,500,000 |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | $ 266,404 | $ 229,737 |
Gross unrealized gains | 392 | 602 |
Gross unrealized losses | 4,101 | 2,222 |
Total investment securities available for sale, fair value | 262,695 | 228,117 |
U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 9,096 | 10,829 |
Gross unrealized gains | 0 | 9 |
Gross unrealized losses | 118 | 18 |
Total investment securities available for sale, fair value | 8,978 | 10,820 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 26,518 | 17,500 |
Gross unrealized gains | 84 | 330 |
Gross unrealized losses | 134 | 0 |
Total investment securities available for sale, fair value | 26,468 | 17,830 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 40,275 | 55,499 |
Gross unrealized gains | 10 | 189 |
Gross unrealized losses | 338 | 211 |
Total investment securities available for sale, fair value | 39,947 | 55,477 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 97,117 | 91,734 |
Gross unrealized gains | 101 | 58 |
Gross unrealized losses | 2,167 | 1,068 |
Total investment securities available for sale, fair value | 95,051 | 90,724 |
Collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 92,906 | 53,559 |
Gross unrealized gains | 197 | 9 |
Gross unrealized losses | 1,344 | 925 |
Total investment securities available for sale, fair value | 91,759 | 52,643 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale, amortized cost basis | 492 | 616 |
Gross unrealized gains | 0 | 7 |
Gross unrealized losses | 0 | 0 |
Total investment securities available for sale, fair value | $ 492 | $ 623 |
Investment Securities - Unreali
Investment Securities - Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($)investment |
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | $ 71,445 | $ 101,719 |
Less than 12 months unrealized loss | 644 | 991 |
12 months or more fair value | 115,907 | 57,511 |
12 months or more unrealized loss | 3,457 | 1,231 |
Fair value, totals | 187,352 | 159,230 |
Unrealized loss, totals | $ 4,101 | $ 2,222 |
Number of investment positions in an unrealized loss position | investment | 142 | 118 |
U.S. government agencies | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | $ 5,671 | $ 3,470 |
Less than 12 months unrealized loss | 68 | 4 |
12 months or more fair value | 3,306 | 629 |
12 months or more unrealized loss | 50 | 14 |
Fair value, totals | 8,977 | 4,099 |
Unrealized loss, totals | 118 | 18 |
Corporate bonds | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | 6,689 | |
Less than 12 months unrealized loss | 134 | |
12 months or more fair value | 0 | |
12 months or more unrealized loss | 0 | |
Fair value, totals | 6,689 | |
Unrealized loss, totals | 134 | |
Municipal securities | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | 16,043 | 14,593 |
Less than 12 months unrealized loss | 92 | 79 |
12 months or more fair value | 10,428 | 7,092 |
12 months or more unrealized loss | 246 | 132 |
Fair value, totals | 26,471 | 21,685 |
Unrealized loss, totals | 338 | 211 |
Mortgage-backed securities | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | 24,277 | 52,075 |
Less than 12 months unrealized loss | 279 | 513 |
12 months or more fair value | 59,637 | 29,485 |
12 months or more unrealized loss | 1,888 | 555 |
Fair value, totals | 83,914 | 81,560 |
Unrealized loss, totals | 2,167 | 1,068 |
Collateralized mortgage obligations | ||
Available for sale investment securities that have been in a continuous unrealized loss position | ||
Less than 12 months, fair value | 18,765 | 31,581 |
Less than 12 months unrealized loss | 71 | 395 |
12 months or more fair value | 42,536 | 20,305 |
12 months or more unrealized loss | 1,273 | 530 |
Fair value, totals | 61,301 | 51,886 |
Unrealized loss, totals | $ 1,344 | $ 925 |
Investment Securities - Maturit
Investment Securities - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized costs of securities available for sale, by contractual maturity | ||
Due in one year or less | $ 2,963 | $ 2,328 |
Due from one year to five years | 34,933 | 29,654 |
Due from five years to ten years | 19,682 | 34,480 |
Due after ten years | 18,311 | 17,366 |
Total investment securities available for sale, single maturity date | 75,889 | 83,828 |
Total investment securities available for sale, amortized cost basis | 266,404 | 229,737 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Due in one year or less | 2,966 | 2,330 |
Due from one year to five years | 34,854 | 29,991 |
Due from five years to ten years | 19,468 | 34,474 |
Due after ten years | 18,105 | 17,332 |
Total investment securities available for sale | 75,393 | 84,127 |
Total investment securities available for sale, fair value | 262,695 | 228,117 |
Mortgage-backed securities | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized cost | 97,117 | 91,734 |
Total investment securities available for sale, amortized cost basis | 97,117 | 91,734 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair value | 95,051 | 90,724 |
Total investment securities available for sale, fair value | 95,051 | 90,724 |
Collateralized mortgage obligations | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized cost | 92,906 | 53,559 |
Total investment securities available for sale, amortized cost basis | 92,906 | 53,559 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair value | 91,759 | 52,643 |
Total investment securities available for sale, fair value | 91,759 | 52,643 |
Asset-backed securities | ||
Amortized costs of securities available for sale, by contractual maturity | ||
Amortized cost | 492 | 616 |
Total investment securities available for sale, amortized cost basis | 492 | 616 |
Estimated fair values of securities available for sale, by contractual maturity | ||
Fair value | 492 | 623 |
Total investment securities available for sale, fair value | $ 492 | $ 623 |
Investment Securities - Proceed
Investment Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 40,822 | $ 159,869 | $ 8,378 |
Gross realized gains | 335 | 398 | 43 |
Gross realized losses | $ 399 | $ 176 | $ 40 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Allowance for Loan Losses | ||||
Loans, gross | $ 2,555,509 | $ 2,233,518 | ||
Deferred loan fees | (15) | (28) | ||
Allowance for loan losses | (19,255) | (12,808) | $ (8,524) | $ (6,772) |
Total loans held for investment, net | 2,536,239 | 2,220,682 | ||
Accretable discount related to loans acquired within a business combination | 22,309 | 12,135 | ||
Discount on retained loans from SBA loan sales | 2,398 | 1,189 | ||
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 760,772 | 684,551 | ||
Allowance for loan losses | (8,554) | (5,588) | (2,955) | (2,324) |
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 7,112 | 9,648 | ||
Allowance for loan losses | (19) | (22) | (35) | (31) |
Construction and land | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 324,863 | 277,825 | ||
Farmland | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 10,528 | 9,385 | ||
Real estate | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 349,202 | 342,817 | ||
Allowance for loan losses | (1,975) | (1,473) | (1,116) | (1,124) |
Real estate | 1 - 4 family residential | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 297,917 | 236,542 | ||
Real estate | Multi-family residential | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 51,285 | 106,275 | ||
Commercial Real Estate | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 1,103,032 | 909,292 | ||
Allowance for loan losses | $ (6,463) | $ (4,410) | $ (3,003) | $ (2,189) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | $ 24,745,000 | $ 465,000 |
Loans and leases receivable, impaired, interest lost on nonaccrual loans | 724,000 | |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 19,769,000 | 398,000 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 2,000 | 6,000 |
Construction and land | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 2,399,000 | 0 |
Farmland | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 2,575,000 | 61,000 |
1 - 4 family residential | Real estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
Multi-family residential | Real estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
PCI | ||
Loans and Allowance for Loan Losses | ||
Loans and leases receivable, impaired, interest lost on nonaccrual loans | $ 16,902,000 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-Accrual and Past Due Loans | ||
Total Past Due | $ 5,821 | $ 6,402 |
Total current | 2,508,858 | 2,179,504 |
Loans | 2,555,509 | 2,233,518 |
Total 90 Days Past Due and Still Accruing | 0 | 18 |
30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 4,727 | 5,416 |
60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 1,094 | 579 |
90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 407 |
Real Estate | Construction and land | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 305 | 320 |
Total current | 324,558 | 277,505 |
Loans | 324,863 | 277,825 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Construction and land | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 305 | 320 |
Real Estate | Construction and land | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Construction and land | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 104 |
Total current | 10,528 | 9,232 |
Loans | 10,528 | 9,385 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Farmland | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 104 |
Real Estate | Farmland | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 349,202 | 342,817 |
Real Estate | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 3,465 | 1,830 |
Total current | 1,082,559 | 890,145 |
Loans | 1,103,032 | 909,292 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Commercial Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 3,465 | 1,830 |
Real Estate | Commercial Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Commercial Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 397 | 1,413 |
Total current | 297,435 | 235,030 |
Loans | 297,917 | 236,542 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | 1 - 4 family residential | Real estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 131 | 1,274 |
Real Estate | 1 - 4 family residential | Real estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 266 | 139 |
Real Estate | 1 - 4 family residential | Real estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Total current | 51,285 | 106,275 |
Loans | 51,285 | 106,275 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Commercial | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 1,644 | 2,627 |
Total current | 735,391 | 651,777 |
Loans | 760,772 | 684,551 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Commercial | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 816 | 1,849 |
Commercial | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 828 | 389 |
Commercial | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 389 |
Consumer | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 10 | 108 |
Total current | 7,102 | 9,540 |
Loans | 7,112 | 9,648 |
Total 90 Days Past Due and Still Accruing | 0 | 18 |
Consumer | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 10 | 39 |
Consumer | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 51 |
Consumer | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 18 |
PCI | ||
Non-Accrual and Past Due Loans | ||
Loans | 40,830 | 47,612 |
PCI | Real Estate | Construction and land | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
PCI | Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 49 |
PCI | Real Estate | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 17,008 | 17,317 |
PCI | Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 85 | 99 |
PCI | Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
PCI | Commercial | ||
Non-Accrual and Past Due Loans | ||
Loans | 23,737 | 30,147 |
PCI | Consumer | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | ||
Non-Accrual and Past Due Loans | ||
Loans | 49,902 | 63,940 |
Financial Asset Acquired with Credit Deterioration | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total 90 Days Past Due and Still Accruing | 527 | 3,300 |
Financial Asset Acquired with Credit Deterioration | PCI | ||
Non-Accrual and Past Due Loans | ||
Loans | 40,830 | 47,612 |
Financial Asset Acquired with Credit Deterioration | PCI | Real Estate | Construction and land | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | PCI | Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 49 |
Financial Asset Acquired with Credit Deterioration | PCI | Real Estate | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 17,008 | 17,317 |
Financial Asset Acquired with Credit Deterioration | PCI | Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 85 | 99 |
Financial Asset Acquired with Credit Deterioration | PCI | Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | PCI | Commercial | ||
Non-Accrual and Past Due Loans | ||
Loans | 23,737 | 30,147 |
Financial Asset Acquired with Credit Deterioration | PCI | Consumer | ||
Non-Accrual and Past Due Loans | ||
Loans | $ 0 | 0 |
Scenario, Adjustment | Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total current | (15,123) | |
Scenario, Adjustment | Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total current | $ 15,123 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $ 8,791 | $ 1,068 |
Recorded Investment with No Allowance | 6,207 | 952 |
Recorded Investment with Allowance | 2,584 | 116 |
Total Recorded Investment | 8,791 | 1,068 |
Related Allowance | 368 | 12 |
Average Recorded Investment During YTD | 9,289 | 1,194 |
Real Estate | Construction and land | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 2,016 | 0 |
Recorded Investment with No Allowance | 2,016 | 0 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 2,016 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 2,262 | 0 |
Real Estate | Farmland | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 0 | 0 |
Real Estate | Commercial Real Estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 2,939 | 434 |
Recorded Investment with No Allowance | 2,939 | 434 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 2,939 | 434 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 3,032 | 445 |
Real Estate | 1 - 4 family residential | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 542 | 161 |
Recorded Investment with No Allowance | 542 | 161 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 542 | 161 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 565 | 163 |
Real Estate | Multi-family residential | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 0 | 0 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 3,228 | 398 |
Recorded Investment with No Allowance | 644 | 282 |
Recorded Investment with Allowance | 2,584 | 116 |
Total Recorded Investment | 3,228 | 398 |
Related Allowance | 368 | 12 |
Average Recorded Investment During YTD | 3,351 | 499 |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 66 | 75 |
Recorded Investment with No Allowance | 66 | 75 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 66 | 75 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | $ 79 | $ 87 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Trouble Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | |
Troubled Debt Restructuring | |||
Recorded investment in TDRs | $ 1,171 | $ 618 | |
Number of Loans | Loan | 3 | 3 | |
Pre- Modification Outstanding Recorded Investment | $ 628 | $ 256 | |
Commercial | |||
Troubled Debt Restructuring | |||
Number of Loans | Loan | 3 | 0 | 2 |
Pre- Modification Outstanding Recorded Investment | $ 628 | $ 175 | |
Consumer | |||
Troubled Debt Restructuring | |||
Number of Loans | Loan | 1 | ||
Pre- Modification Outstanding Recorded Investment | $ 81 | ||
Adjusted Interest Rate | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Adjusted Interest Rate | Commercial | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Adjusted Interest Rate | Consumer | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Extended Maturity | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 612 | 0 | |
Extended Maturity | Commercial | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 612 | 0 | |
Extended Maturity | Consumer | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | ||
Extended Maturity and Restructured Payments | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | 250 | |
Extended Maturity and Restructured Payments | Commercial | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | 169 | |
Extended Maturity and Restructured Payments | Consumer | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 81 | ||
Extended Maturity, Restructured Payments and Adjusted Interest Rate | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | 0 | 0 | |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | Commercial | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | $ 0 | 0 | |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | Consumer | |||
Troubled Debt Restructuring | |||
Post-Modification Outstanding Recorded Investment | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - TDR's Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017Loan | Dec. 31, 2016Loan | |
Troubled Debt Restructuring | |||
Number of Loans | 3 | 3 | |
Number of loans, modified terms | 2 | ||
Number of loans restructured past due | 1 | ||
Loans acquired | $ | $ 56 | ||
Number of contracts, specific allowance | 1 | ||
Number of loans modified as a troubled debt restructured loan within previous 12 months and for which there was a payment default | 0 | 0 | |
Commercial | |||
Troubled Debt Restructuring | |||
Number of Loans | 3 | 0 | 2 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Credit Quality Indicators | ||
Loans | $ 2,555,509 | $ 2,233,518 |
Total current | 2,508,858 | 2,179,504 |
Pass | ||
Credit Quality Indicators | ||
Loans | 2,473,185 | 2,155,437 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 18,052 | 28,209 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 23,442 | 2,144 |
Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 116 |
PCI | ||
Credit Quality Indicators | ||
Loans | 40,830 | 47,612 |
Real Estate | Construction and land | ||
Credit Quality Indicators | ||
Loans | 324,863 | 277,825 |
Total current | 324,558 | 277,505 |
Real Estate | Construction and land | Pass | ||
Credit Quality Indicators | ||
Loans | 320,987 | 277,186 |
Real Estate | Construction and land | Special Mention | ||
Credit Quality Indicators | ||
Loans | 1,860 | 639 |
Real Estate | Construction and land | Substandard | ||
Credit Quality Indicators | ||
Loans | 2,016 | 0 |
Real Estate | Construction and land | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Construction and land | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | ||
Credit Quality Indicators | ||
Loans | 10,528 | 9,385 |
Total current | 10,528 | 9,232 |
Real Estate | Farmland | Pass | ||
Credit Quality Indicators | ||
Loans | 10,528 | 9,336 |
Real Estate | Farmland | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 49 |
Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 349,202 | 342,817 |
Real Estate | Commercial Real Estate | ||
Credit Quality Indicators | ||
Loans | 1,103,032 | 909,292 |
Total current | 1,082,559 | 890,145 |
Real Estate | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 1,065,982 | 882,523 |
Real Estate | Commercial Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 7,056 | 8,771 |
Real Estate | Commercial Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 12,986 | 681 |
Real Estate | Commercial Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Commercial Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 17,008 | 17,317 |
Commercial | ||
Credit Quality Indicators | ||
Loans | 760,772 | 684,551 |
Total current | 735,391 | 651,777 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 720,583 | 634,796 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 8,900 | 18,337 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 7,552 | 1,155 |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 116 |
Commercial | PCI | ||
Credit Quality Indicators | ||
Loans | 23,737 | 30,147 |
Consumer | ||
Credit Quality Indicators | ||
Loans | 7,112 | 9,648 |
Total current | 7,102 | 9,540 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 6,950 | 9,540 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | 162 | 108 |
Consumer | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Consumer | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
1 - 4 family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 297,917 | 236,542 |
Total current | 297,435 | 235,030 |
1 - 4 family residential | Real Estate | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 296,870 | 235,781 |
1 - 4 family residential | Real Estate | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 236 | 462 |
1 - 4 family residential | Real Estate | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 726 | 200 |
1 - 4 family residential | Real Estate | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
1 - 4 family residential | Real Estate | Real estate | PCI | ||
Credit Quality Indicators | ||
Loans | 85 | 99 |
Multi-family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 51,285 | 106,275 |
Total current | 51,285 | 106,275 |
Multi-family residential | Real Estate | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 51,285 | 106,275 |
Multi-family residential | Real Estate | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | PCI | ||
Credit Quality Indicators | ||
Loans | $ 0 | 0 |
Scenario, Adjustment | 1 - 4 family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Total current | (15,123) | |
Scenario, Adjustment | Multi-family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Total current | $ 15,123 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | $ 12,808 | $ 8,524 | $ 6,772 | |||
Provision charged to earnings | 6,603 | 5,114 | 2,050 | |||
Charge-offs | (197) | (839) | (333) | |||
Recoveries | 41 | 9 | 35 | |||
Net charge-offs | (156) | (830) | (298) | |||
Balance at end of year | 19,255 | 12,808 | 8,524 | |||
Allowance for loan losses (as a percent) | 0.75% | 0.57% | 0.86% | |||
Period-end amount allocated to: | ||||||
Total specific reserves | $ 368 | $ 12 | $ 250 | |||
PCI Reserves | 1,302 | |||||
General reserves | 17,585 | 12,796 | 8,274 | |||
Total | 12,808 | 8,524 | 6,772 | 19,255 | 12,808 | 8,524 |
Real Estate | Construction Land and Farmland | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 1,315 | 1,415 | 1,104 | |||
Provision charged to earnings | 929 | (100) | 311 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs | 0 | 0 | 0 | |||
Balance at end of year | 2,244 | 1,315 | 1,415 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI Reserves | 0 | |||||
General reserves | 2,244 | 1,315 | 1,415 | |||
Total | 1,315 | 1,415 | 1,104 | 2,244 | 1,315 | 1,415 |
Real Estate | Real estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 1,473 | 1,116 | 1,124 | |||
Provision charged to earnings | 502 | 368 | (8) | |||
Charge-offs | 0 | (11) | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs | 0 | (11) | 0 | |||
Balance at end of year | 1,975 | 1,473 | 1,116 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI Reserves | 0 | |||||
General reserves | 1,975 | 1,473 | 1,116 | |||
Total | 1,473 | 1,116 | 1,124 | 1,975 | 1,473 | 1,116 |
Real Estate | Commercial Real Estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 4,410 | 3,003 | 2,189 | |||
Provision charged to earnings | 2,053 | 1,407 | 814 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs | 0 | 0 | 0 | |||
Balance at end of year | 6,463 | 4,410 | 3,003 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI Reserves | 0 | |||||
General reserves | 6,463 | 4,410 | 3,003 | |||
Total | 4,410 | 3,003 | 2,189 | 6,463 | 4,410 | 3,003 |
Commercial | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 5,588 | 2,955 | 2,324 | |||
Provision charged to earnings | 3,100 | 3,452 | 913 | |||
Charge-offs | (175) | (828) | (314) | |||
Recoveries | 41 | 9 | 32 | |||
Net charge-offs | (134) | (819) | (282) | |||
Balance at end of year | 8,554 | 5,588 | 2,955 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 368 | 12 | 246 | |||
PCI Reserves | 1,302 | |||||
General reserves | 6,884 | 5,576 | 2,709 | |||
Total | 5,588 | 2,955 | 2,324 | 8,554 | 5,588 | 2,955 |
Consumer | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 22 | 35 | 31 | |||
Provision charged to earnings | 19 | (13) | 20 | |||
Charge-offs | (22) | 0 | (19) | |||
Recoveries | 0 | 0 | 3 | |||
Net charge-offs | (22) | 0 | (16) | |||
Balance at end of year | 19 | 22 | 35 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 0 | 0 | 4 | |||
PCI Reserves | 0 | |||||
General reserves | 19 | 22 | 31 | |||
Total | $ 22 | $ 35 | $ 31 | $ 19 | $ 22 | $ 35 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 8,791 | $ 1,068 |
Loans collectively evaluated for impairment | 2,505,888 | 2,184,838 |
Total Loans | 2,555,509 | 2,233,518 |
Real Estate | Construction Land and Farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 2,016 | 0 |
Loans collectively evaluated for impairment | 333,375 | 287,161 |
Total Loans | 335,391 | 287,210 |
Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 542 | 161 |
Loans collectively evaluated for impairment | 348,575 | 342,557 |
Total Loans | 349,202 | 342,817 |
Real Estate | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 2,939 | 434 |
Loans collectively evaluated for impairment | 1,083,085 | 891,541 |
Total Loans | 1,103,032 | 909,292 |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 3,228 | 398 |
Loans collectively evaluated for impairment | 733,807 | 654,006 |
Total Loans | 760,772 | 684,551 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 66 | 75 |
Loans collectively evaluated for impairment | 7,046 | 9,573 |
Total Loans | 7,112 | 9,648 |
PCI loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 40,830 | 47,612 |
Total Loans | 49,902 | 63,940 |
PCI loans | Real Estate | Construction Land and Farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 0 | 49 |
PCI loans | Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 85 | 99 |
PCI loans | Real Estate | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 17,008 | 17,317 |
PCI loans | Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 23,737 | 30,147 |
PCI loans | Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | $ 0 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Carrying amount | $ 2,536,239 | $ 2,220,682 |
Loans, gross | 2,555,509 | 2,233,518 |
PCI loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Carrying amount | 39,528 | 47,612 |
Loans, gross | $ 49,902 | $ 63,940 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Accretable Yield Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 2,723 | $ 0 |
Purchase accounting adjustments | 1,459 | 3,927 |
Reclassifications from nonaccretable | 19,162 | 0 |
Accretion | (4,597) | (1,204) |
Balance at year-end | $ 18,747 | $ 2,723 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 71,159,000 | $ 74,737,000 | |
Summary of changes in related servicing assets | |||
Balance at beginning of year | 1,215,000 | 601,000 | |
Servicing asset acquired through acquisition | 0 | 313,000 | |
Increase from loan sales | 470,000 | 522,000 | |
Amortization charged to income | (381,000) | (193,000) | |
Transfer of servicing assets to held for sale | 0 | (28,000) | |
Balance at end of period | 1,304,000 | 1,215,000 | $ 601,000 |
Valuation allowance recorded | 0 | 0 | |
Interest receivable | 8,828,000 | 7,676,000 | |
Proceeds from sale of loans | 36,227,000 | 53,876,000 | 69,801,000 |
Gain on sale of loans | 708,000 | 942,000 | 1,598,000 |
Small Business Administration Loans | |||
Summary of changes in related servicing assets | |||
Proceeds from sale of loans | 26,662,000 | 27,747,000 | 18,704,000 |
Gain on sale of loans | 2,348,000 | 1,940,000 | $ 1,690,000 |
Interest-Only-Strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | $ 0 | $ 0 |
Bank Premises and Equipment (De
Bank Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 88,399 | $ 82,301 | |
Less accumulated depreciation | 9,990 | 7,050 | |
Bank premises, furniture and equipment, net | 78,409 | 75,251 | |
Depreciation | 3,017 | 1,566 | $ 1,111 |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 37,526 | 35,239 | |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 672 | 140 | |
Tenant improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 744 | 744 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 4,456 | 5,132 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 33,393 | 33,002 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 9,426 | 7,588 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 2,182 | $ 456 |
Non-marketable Equity Securit_3
Non-marketable Equity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-marketable Equity Securities. | ||
R4 Housing Partners | $ 12,324 | $ 3,482 |
FHLB of Dallas stock | 2,957 | 6,431 |
Other non-marketable equity securities | 7,541 | 3,819 |
Total non-marketable equity securities | $ 22,822 | $ 13,732 |
Intangible Assets - Finite-Live
Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Intangible Asset | $ 23,424 | $ 23,909 | |
Accumulated amortization | 7,528 | 3,468 | |
Net intangible assets | 15,896 | 20,441 | |
Amortization of intangible assets | 3,467 | 964 | $ 380 |
Amortization of Intangible Assets, Occupancy and Equipment, and Other Income | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 4,060 | $ 1,270 | $ 595 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 7 years 8 months 12 days | 8 years 8 months 18 days | |
Gross Intangible Asset | $ 16,051 | $ 17,007 | |
Accumulated amortization | 4,376 | 2,694 | |
Net intangible assets | $ 11,675 | $ 14,313 | |
Servicing asset | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 6 years 9 months 18 days | 6 years 9 months 18 days | |
Gross Intangible Asset | $ 2,091 | $ 1,621 | |
Accumulated amortization | 787 | 406 | |
Net intangible assets | $ 1,304 | $ 1,215 | |
Intangible lease assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 2 years 8 months 12 days | ||
Gross Intangible Asset | $ 5,282 | ||
Accumulated amortization | 2,365 | ||
Net intangible assets | $ 2,917 | ||
Other intangible assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted Amortization Period | 3 years 3 months 18 days | ||
Gross Intangible Asset | $ 5,281 | ||
Accumulated amortization | 368 | ||
Net intangible assets | $ 4,913 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Estimated aggregate future amortization expense [Abstract] | ||
2,019 | $ 2,961 | |
2,020 | 2,744 | |
2,021 | 2,169 | |
2,022 | 1,959 | |
2,023 | 1,789 | |
Thereafter | 4,274 | |
Net intangible assets | $ 15,896 | $ 20,441 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 159,452 | $ 26,865 |
Ending Balance | 161,447 | 159,452 |
Sovereign acquisition | ||
Goodwill [Roll Forward] | ||
Acquisitions | 2,210 | 109,091 |
Liberty acquisition | ||
Goodwill [Roll Forward] | ||
Acquisitions | $ (215) | $ 23,496 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand accounts | $ 626,283 | $ 612,830 |
Interest-bearing demand accounts | 146,969 | 187,516 |
Savings accounts | 33,147 | 52,822 |
Limited access money market accounts | 1,133,045 | 960,149 |
Certificates of deposit, greater than $100 | 392,935 | 419,888 |
Certificates of deposit, less than $100 | 290,049 | 45,425 |
Total deposits | $ 2,622,428 | $ 2,278,630 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2,019 | $ 576,466 | |
2,020 | 71,686 | |
2,021 | 28,777 | |
2,022 | 3,526 | |
2,023 | 2,529 | |
Total | $ 682,984 | $ 465,313 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Demand deposit overdrafts reclassified as loans | $ 153 | $ 203 |
Brokered deposits | $ 234,190 | $ 88,195 |
Advances from the Federal Hom_3
Advances from the Federal Home Loan Bank ("FHLB") - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 28,019 | $ 71,164 |
Availability to borrow additional funds | $ 1,022,090 | |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank, weighted average rate | 2.36% |
Advances from the Federal Hom_4
Advances from the Federal Home Loan Bank ("FHLB") - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
2,019 | $ 25,000 | |
2,022 | 3,019 | |
Total | $ 28,019 | $ 71,164 |
Other Credit Extensions (Detail
Other Credit Extensions (Details) | Dec. 31, 2018USD ($)credit_facility | Dec. 31, 2017USD ($)credit_facility |
Federal Funds Credit Extensions With Commercial Banks | ||
Other Credit Extensions | ||
Number of credit facilities | credit_facility | 2 | 2 |
Maximum available borrowings | $ 75,000,000 | $ 55,000,000 |
Outstanding borrowings | 0 | 0 |
Federal Reserve Bank Secured Line Of Credit | ||
Other Credit Extensions | ||
Maximum available borrowings | 404,981,000 | 338,592,000 |
Outstanding borrowings | 0 | 0 |
Amounts of commercial loans pledged as collateral | $ 524,016,000 | $ 423,062,000 |
Borrowed Funds - Summary (Detai
Borrowed Funds - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 01, 2017 |
Debt Instrument [Line Items] | |||
Subordinated debentures and subordinated notes | $ 11,702 | $ 11,702 | $ 8,609 |
Federal funds purchased | 0 | 15,000 | |
Affiliated Entity | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Subordinated notes | 4,989 | 4,987 | |
Discount on related party debt | $ 11 | $ 13 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)quarter | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2013USD ($)$ / sharesshares | Aug. 01, 2017USD ($) | Dec. 31, 2011USD ($) | |
Debt Instrument [Line Items] | |||||
Subordinated debentures and subordinated notes | $ 11,702,000 | $ 11,702,000 | $ 8,609,000 | ||
Interest on securities, addition to LIBOR | 4.00% | ||||
Debt instrument, effective percentage | 6.40% | 5.34% | |||
Face amount of subordinated notes issued to related party | $ 5,000,000 | ||||
Other borrowings | $ 0 | $ 15,000,000 | |||
Federal funds interest rate | 2.00% | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest distribution quarterly periods | quarter | 5 | ||||
Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Face amount of subordinated notes issued to related party | $ 5,000,000 | ||||
Fixed rate (as a percent) | 6.00% | ||||
Affiliated Entity | Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Number of shares that warrants issued to related party may be converted into (in shares) | shares | 25,000 | ||||
Exercise price of warrants issued to related party (in dollars per share) | $ / shares | $ 11 | ||||
Price used to calculate fair value of warrants issued to related party (in dollars per share) | $ / shares | $ 0.80 | ||||
Fidelity Resource Company | Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Debentures assumed in business combination | $ 3,093,000 | ||||
Parkway National Capital Trust 1 | |||||
Debt Instrument [Line Items] | |||||
Distribution effective rate (as a percent) | 4.64% | 3.44% | |||
Parkway National Capital Trust 1 | London Interbank Offered Rate (LIBOR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable distribution rate (as a percent) | 1.85% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax asset re-measurement due to the Tax Act | $ 34 | $ 3,051 | $ 0 |
Current tax receivable | 4,982 | 7,085 | |
Deferred tax asset | $ 4,150 | 4,937 | |
Deferred income tax liabilities, net | $ 327 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax expense (benefit): | |||||||||||
Current | $ 8,189 | $ 7,886 | $ 7,833 | ||||||||
Deferred | 2,707 | 5,143 | (1,366) | ||||||||
Total income tax expense | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | $ 7,227 | $ 2,650 | $ 1,802 | $ 1,350 | $ 10,896 | $ 13,029 | $ 6,467 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal incomes tax expense rate at 21% for December 31, 2018 and 35% for December 31, 2017 and 2016 | $ 10,550 | $ 9,863 | $ 6,656 | ||||||||
Bank-owned life insurance | (124) | (206) | (216) | ||||||||
Non-deductible dues and memberships | 104 | 132 | 59 | ||||||||
Non-deductible meals and entertainment | 108 | 80 | 49 | ||||||||
Non-deductible transaction costs | 727 | 202 | 0 | ||||||||
Tax exempt interest income | (169) | (178) | 0 | ||||||||
Excess tax benefit from stock compensation | (248) | (268) | 0 | ||||||||
Deferred tax asset re-measurement due to the Tax Act | 34 | 3,051 | 0 | ||||||||
Other | (86) | 353 | (81) | ||||||||
Total income tax expense | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | $ 7,227 | $ 2,650 | $ 1,802 | $ 1,350 | $ 10,896 | $ 13,029 | $ 6,467 |
Effective tax rate (in percent) | 21.70% | 46.20% | 34.00% | ||||||||
Federal income tax expense rate (in percent) | 21.00% | 35.00% | 35.00% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Organizational costs | $ 52 | $ 64 |
Allowance for loan losses | 3,985 | 2,592 |
Capital loss carryforward | 57 | 57 |
FHLB Borrowing | 21 | 28 |
Deferred rent expenses | 511 | 302 |
Restricted stock | 264 | 201 |
Stock options | 652 | 334 |
Accrued bonuses | 372 | 22 |
Loan discounts | 2,176 | 4,805 |
Deferred compensation | 193 | 115 |
Other real estate owned | 0 | 219 |
Net unrealized gain on securities available for sale | 779 | 340 |
Other | 130 | 137 |
Total deferred tax assets | 9,192 | 9,216 |
Deferred tax liabilities: | ||
Core deposit intangibles | 2,187 | 3,034 |
Partnership investments | 487 | 497 |
Bank premises and equipment | 1,959 | 912 |
Prepaid expenses | 342 | 0 |
Other | 67 | 163 |
Total deferred tax liabilities | 5,042 | 4,606 |
Net deferred tax asset | $ 4,150 | $ 4,610 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Minimum future rental payments under non-cancelable operating leases | |||
2,019 | $ 1,913 | ||
2,020 | 1,696 | ||
2,021 | 1,294 | ||
2,022 | 1,138 | ||
2,023 | 962 | ||
Thereafter | 1,794 | ||
Total | 8,797 | ||
Rental expense on operating lease | 2,832 | $ 2,298 | $ 1,432 |
Sublease income | $ 192 | $ 139 | $ 58 |
Commitments and Contingencies -
Commitments and Contingencies - Cease-Use Liability (Details) - Lease Exit Costs - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingency Accrual [Roll Forward] | ||
Beginning Balance | $ 1,407 | $ 0 |
Additions | 0 | 1,524 |
Payments | (86) | (117) |
Reversal upon lease assignment | (669) | 0 |
Ending Balance | $ 652 | $ 1,407 |
Commitments and Contingencies_3
Commitments and Contingencies - Future Payments to be Received (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
2,019 | $ 2,097,000 | ||
2,020 | 1,908,000 | ||
2,021 | 1,113,000 | ||
2,022 | 646,000 | ||
2,023 | 163,000 | ||
Total | 5,927,000 | ||
Rental income | $ 1,654,000 | $ 139,000 | $ 0 |
Commitments and Contingencies_4
Commitments and Contingencies - Assets and Liabilities of the Corporate Building (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | $ 88,399 | $ 82,301 |
Less accumulated depreciation | (9,990) | (7,050) |
Bank premises, furniture and equipment, net | 78,409 | 75,251 |
Gross Intangible Asset | 23,424 | 23,909 |
Accumulated amortization | (7,528) | (3,468) |
Net intangible assets | 15,896 | 20,441 |
Qualified affordable housing investment | 3,663 | 1,982 |
Qualified affordable housing project investments, unfunded commitment | 2,510 | 1,765 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 37,526 | 35,239 |
Site improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 672 | 140 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 33,393 | 33,002 |
Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 37,568 | 37,537 |
Less accumulated depreciation | (843) | (65) |
Bank premises, furniture and equipment, net | 36,725 | 37,472 |
Intangible lease obligation, gross | 584 | 584 |
Intangible lease obligation, accumulated amortization | (168) | (19) |
Intangible lease obligation, net | 416 | 565 |
Long Lived Assets (Liabilities), Gross | 41,749 | 41,718 |
Long Lived Assets (Liabilities), Accumulated Depreciation And Amortization | (2,788) | (287) |
Long Lived Assets (Liabilities), Net | 38,961 | 41,431 |
Corporate, Non-Segment | Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 19,903 | 19,872 |
Less accumulated depreciation | (535) | (33) |
Bank premises, furniture and equipment, net | 19,368 | 19,839 |
Corporate, Non-Segment | Site improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 884 | 884 |
Less accumulated depreciation | (308) | (32) |
Bank premises, furniture and equipment, net | 576 | 852 |
Corporate, Non-Segment | Land | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises, furniture and equipment, gross | 16,781 | 16,781 |
Less accumulated depreciation | 0 | 0 |
Bank premises, furniture and equipment, net | 16,781 | 16,781 |
Intangible lease assets | ||
Property, Plant and Equipment [Line Items] | ||
Gross Intangible Asset | 5,282 | |
Accumulated amortization | (2,365) | |
Net intangible assets | 2,917 | |
Intangible lease assets | Corporate, Non-Segment | ||
Property, Plant and Equipment [Line Items] | ||
Gross Intangible Asset | 4,765 | 4,765 |
Accumulated amortization | (2,113) | (241) |
Net intangible assets | $ 2,652 | $ 4,524 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Qualified Housing (Details) - Qualified Affordable Housing Investment $ in Thousands | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
2,019 | $ 1,303 |
2,020 | 825 |
2,021 | 129 |
2,022 | 22 |
2,023 | 21 |
Thereafter | 145 |
Contractual Obligation | $ 2,445 |
Fair Value Disclosures - Recurr
Fair Value Disclosures - Recurring Basis (Details) - Recurring - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets: | ||
Investment securities available for sale | $ 262,695,000 | $ 228,117,000 |
Liabilities measured at fair value | 0 | 0 |
Transfer of assets from Level 2 to Level 3 | 0 | 0 |
Transfer of assets from Level 3 to Level 2 | 0 | 0 |
Level 1 | ||
Assets: | ||
Investment securities available for sale | 0 | 0 |
Level 2 | ||
Assets: | ||
Investment securities available for sale | 262,695,000 | 228,117,000 |
Level 3 | ||
Assets: | ||
Investment securities available for sale | $ 0 | $ 0 |
Fair Value Disclosures - Non-re
Fair Value Disclosures - Non-recurring Basis (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Impaired loans, specific allowance | $ 368,000 | $ 12,000 |
Non-recurring | ||
Assets: | ||
Impaired loans | 2,584,000 | 116,000 |
Other real estate owned | 449,000 | |
Impaired loans, specific allowance | 368,000 | 12,000 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 1 | ||
Assets: | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Non-recurring | Level 2 | ||
Assets: | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Non-recurring | Level 3 | ||
Assets: | ||
Impaired loans | $ 2,584,000 | 116,000 |
Other real estate owned | $ 449,000 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Estimated fair values and carrying values of all financial instruments | ||
Valuation allowance for servicing assets | $ 0 | $ 0 |
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value | 90 days | |
Financial liabilities: | ||
Subordinated debentures and subordinated notes | $ 16,691,000 | 16,689,000 |
Branch liabilities held for sale | 0 | 64,627,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 84,449,000 | 149,044,000 |
Loans held for sale | 1,258,000 | 841,000 |
Loans | 2,555,494,000 | 2,220,682,000 |
Accrued interest receivable | 8,828,000 | 7,676,000 |
Bank-owned life insurance | 22,064,000 | 21,476,000 |
Servicing asset | 834,000 | 1,243,000 |
Non-marketable equity securities | 22,822,000 | 13,732,000 |
Financial instruments assets held for sale | 31,828,000 | |
Financial liabilities: | ||
Deposits | 2,622,428,000 | 2,278,630,000 |
Advances from FHLB | 28,019,000 | 71,164,000 |
Accrued interest payable | 1,135,000 | 445,000 |
Subordinated debentures and subordinated notes | 16,691,000 | 16,689,000 |
Branch liabilities held for sale | 64,300,000 | |
Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Financial instruments assets held for sale | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | 0 | 0 |
Branch liabilities held for sale | 0 | |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 84,449,000 | 149,044,000 |
Loans held for sale | 1,258,000 | 841,000 |
Loans | 0 | |
Accrued interest receivable | 8,828,000 | 7,676,000 |
Bank-owned life insurance | 22,064,000 | 21,476,000 |
Servicing asset | 834,000 | 1,243,000 |
Non-marketable equity securities | 22,822,000 | 13,732,000 |
Financial instruments assets held for sale | 5,515,000 | |
Financial liabilities: | ||
Deposits | 2,506,379,000 | 2,164,498,000 |
Advances from FHLB | 28,063,000 | 70,110,000 |
Accrued interest payable | 1,135,000 | 445,000 |
Subordinated debentures and subordinated notes | 16,691,000 | 16,689,000 |
Branch liabilities held for sale | 64,300,000 | |
Level 3 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans | 2,553,376,000 | 2,234,094,000 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Non-marketable equity securities | 0 | 0 |
Financial instruments assets held for sale | 26,313,000 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | $ 0 | 0 |
Branch liabilities held for sale | $ 0 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 967,867 | $ 615,750 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 962,436 | 606,451 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 5,431 | $ 9,299 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | Jan. 03, 2014 | Jun. 30, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ESOP | |||||
Matching contributions to 401(k) profit sharing Plan | $ 0 | $ 0 | |||
Proceeds from payments on ESOP Loan | $ 109,000 | $ 109,000 | $ 109,000 | ||
Summary of ESOP shares | |||||
Allocated shares (in shares) | 63,040 | 53,269 | |||
Unearned shares (in shares) | 0 | 9,771 | |||
Total ESOP shares (in shares) | 63,040 | 63,040 | |||
Fair value of unearned shares | $ 0 | $ 256,000 | |||
ESOP | |||||
ESOP | |||||
Proceeds ESOP borrowed from the Company | $ 500,000 | ||||
Shares contributed to ESOP (in shares) | 46,082 | ||||
Proceeds from payments on ESOP Loan | $ 109,000 | $ 109,000 | |||
Number of collateral shares released (in shares) | 9,771 | 9,012 | |||
Issuance of stock to ESOP (in shares) | 9,147 | ||||
Compensation expense | $ 863,000 | $ 240,000 | $ 204,000 |
Stock and Incentive Plans - 201
Stock and Incentive Plans - 2010 Plan (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,000,000 | |||
Stock based compensation expense | $ 27 | $ 63 | $ 125 | |
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 100,000 | |||
Term of continuous service for vesting awards | 4 years | |||
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 900,000 | |||
Term of continuous service for vesting awards | 5 years | |||
Contractual terms for non-controlling participants | 10 years | |||
Performance-based stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 500,000 |
Stock and Incentive Plans - 2_2
Stock and Incentive Plans - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Underlying Options activity | ||||
Outstanding at beginning of period (in shares) | 305,000 | 325,500 | 325,500 | |
Forfeited during the period (in shares) | (3,000) | |||
Exercised during the period (in shares) | (30,000) | (17,500) | ||
Outstanding at the end of period (in shares) | 275,000 | 305,000 | 325,500 | 325,500 |
Options exercisable at end of period (in shares) | 272,000 | |||
Activity in weighted exercise price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.16 | $ 10.15 | $ 10.15 | |
Forfeited during the period (in dollars per share) | 10 | |||
Exercised during the period (in dollars per share) | 10.61 | 10 | ||
Outstanding at the end of period (in dollars per share) | 10.12 | $ 10.16 | $ 10.15 | $ 10.15 |
Options exercisable at end of period (in dollars per share) | $ 10.09 | |||
Weighted Average Contractual Term | ||||
Outstanding at the end of period | 2 years 4 months 21 days | 3 years 7 months 2 days | 4 years 6 months 22 days | 4 years 6 months 22 days |
Options exercisable at end of period | 2 years 4 months 10 days | |||
Exercises in period, intrinsic value | $ 323 | $ 308 | ||
Aggregate intrinsic value of outstanding stock options (in dollars) | 3,098 | |||
Options exercisable, intrinsic value | 3,070 | |||
Additional disclosures | ||||
Unrecognized compensation expense (in dollars) | 2 | 8 | $ 21 | |
Nonperformance-based stock options exercised | 803 | 488 | 0 | |
Nonperformance-based restricted stock units vested | $ 713 | $ 26 | $ 194 | |
Outstanding at beginning of period (in shares) | 24,250 | 27,750 | 39,750 | |
Forfeited during the period (in shares) | (500) | (2,500) | ||
Exercised during the period (in shares) | (23,750) | (1,000) | (12,000) | |
Outstanding at the end of period (in shares) | 0 | 24,250 | 27,750 | 39,750 |
Outstanding at beginning of period (in dollars per share) | $ 13.19 | $ 11.92 | $ 11.34 | |
Forfeited during the period (in dollars per share) | 10.85 | |||
Exercised during the period (in dollars per share) | 12.14 | 10.85 | 10 | |
Outstanding at the end of period (in dollars per share) | $ 0 | $ 13.19 | $ 11.92 | $ 11.34 |
Unrecognized compensation expense (in dollars) | $ 0 | $ 15 | $ 90 |
Stock and Incentive Plans - Omn
Stock and Incentive Plans - Omnibus Plan (Details) - Omnibus Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 1,000,000 | ||
Stock based compensation expense | $ 4,021 | $ 1,876 | $ 857 |
Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares awarded (in shares) | 60,650 | 121,125 | 25,060 |
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares awarded (in shares) | 40,269 | 26,398 | 34,190 |
Vesting period | 3 years | ||
Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares awarded under stock options (in shares) | 137,576 | 212,983 | 76,286 |
Minimum | Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of continuous service for vesting awards | 1 year | ||
Maximum | Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Term of continuous service for vesting awards | 5 years |
Stock and Incentive Plans - O_2
Stock and Incentive Plans - Omnibus Plan Black Scholes Assumptions (Details) - Omnibus Plan | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum (as a percent) | 27.87% | 30.56% | 33.37% |
Expected volatility, maximum (as a percent) | 37.55% | 33.19% | 37.55% |
Risk-free interest rate, minimum (as a percent) | 1.06% | 1.96% | 1.06% |
Risk-free interest rate, maximum (as a percent) | 2.94% | 2.32% | 2.01% |
Minimum | |||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Expected life | 5 years | 6 years 1 month 17 days | 5 years |
Maximum | |||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Expected life | 7 years 6 months | 7 years 6 months | 6 years 6 months |
Stock and Incentive Plans - O_3
Stock and Incentive Plans - Omnibus Plan - Options (Details) - Omnibus Plan - Nonperformance-based stock options - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares Underlying Options activity | ||||
Outstanding at beginning of period (in shares) | 330,723 | 128,366 | 52,080 | |
Granted during the period (in shares) | 137,576 | 212,983 | 76,286 | |
Forfeited during the period (in shares) | (4,083) | (9,082) | ||
Exercised during the period (in shares) | (14,696) | (1,544) | ||
Outstanding at the end of period (in shares) | 449,520 | 330,723 | 128,366 | 52,080 |
Options exercisable at end of period (in shares) | 129,115 | |||
Activity in weighted exercise price | ||||
Outstanding at beginning of period (in dollars per share) | $ 22.71 | $ 15.32 | $ 14.35 | |
Granted during the period (in dollars per share) | 28.04 | 26.97 | 15.98 | |
Forfeited during the period (in dollars per share) | 27.59 | 19.45 | ||
Exercised during the period (in dollars per share) | 15.29 | 15 | ||
Outstanding at the end of period (in dollars per share) | 24.47 | $ 22.71 | $ 15.32 | $ 14.35 |
Options exercisable at end of period (in dollars per share) | 20.04 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 9.78 | |||
Weighted Average Contractual Term | ||||
Outstanding at beginning of year | 8 years 2 months 27 days | 8 years 10 months 10 days | 8 years 8 months 9 days | 9 years 1 month 13 days |
Options exercisable at end of period | 7 years 4 months 10 days | |||
Additional disclosures | ||||
Exercises in period, intrinsic value | $ 89 | |||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ (1,409,000) | |||
Options exercisable at end of period (in shares) | 129,115 | |||
Options exercisable, intrinsic value | $ 173,000 | |||
Unrecognized compensation expense (in dollars) | $ 2,103,000 | $ 1,958,000 | $ 425,000 |
Stock and Incentive Plans - O_4
Stock and Incentive Plans - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonperformance-based stock options | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 150,722 | 67,956 | 70,919 |
Granted (in shares) | 60,650 | 121,125 | 25,060 |
Vested (in shares) | (73,988) | (34,342) | (28,023) |
Forfeited (in shares) | (3,929) | (4,017) | |
Nonvested at the end of the period (in shares) | 133,455 | 150,722 | 67,956 |
Activity in weighted average grant date fair value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 13.29 | $ 13.79 | $ 13.29 |
Granted (in dollars per share) | 29.27 | 27.19 | 15.83 |
Vested (in dollars per share) | 24.44 | 19.74 | 14.35 |
Forfeited (in dollars per share) | 26.29 | 21.36 | |
Nonvested at the end of the period (in dollars per share) | $ 19.67 | $ 13.29 | $ 13.79 |
Performance Based Restricted Stock Units | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 53,594 | 51,197 | 25,474 |
Granted (in shares) | 40,269 | 26,398 | 34,190 |
Vested (in shares) | (28,109) | (19,861) | (8,467) |
Forfeited (in shares) | (1,766) | (4,140) | |
Nonvested at the end of the period (in shares) | 63,988 | 53,594 | 51,197 |
Activity in weighted average grant date fair value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 17.68 | $ 13.30 | $ 8.72 |
Granted (in dollars per share) | 27.59 | 24.43 | 9.52 |
Vested (in dollars per share) | 18.69 | 15.34 | 14.17 |
Forfeited (in dollars per share) | 27.59 | 17.91 | |
Nonvested at the end of the period (in dollars per share) | $ 21.28 | $ 17.68 | $ 13.30 |
Additional disclosures | |||
Unrecognized compensation expense (in dollars) | $ 3,430 | $ 3,592 | $ 1,089 |
Stock and Incentive Plans - Fai
Stock and Incentive Plans - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - Omnibus Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | $ 383 | $ 41 | $ 0 |
Nonperformance-based restricted stock units vested | 2,128 | 568 | 505 |
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based restricted stock units vested | $ 745 | $ 530 | $ 137 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions [Abstract] | ||
Aggregate amounts of loans to the Company's employees, officers, directors and their affiliates | $ 70,220,000 | $ 44,134,000 |
New advances to the Company's employees, officers, directors and their affiliates | 45,801,000 | 34,903,000 |
Principal payments received from the loans to employees, officers, directors, and their affiliates | 19,715,000 | 18,065,000 |
Unfunded commitments to related parties | 15,730,000 | 7,191,000 |
Deposits received from related parties | 30,977,000 | $ 16,023,000 |
Face amount of subordinated notes issued to related party | $ 5,000,000 |
Preferred Stock (Details)
Preferred Stock (Details) $ / shares in Units, $ in Thousands | Mar. 31, 2018USD ($) | Aug. 08, 2017USD ($)$ / sharesshares | Aug. 01, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Preferred Stock | |||||||
Business combination total redemption amount | $ 49,000 | ||||||
Dividends | $ 0 | 227 | $ 0 | ||||
Sovereign Bancshares, Inc. | |||||||
Preferred Stock | |||||||
Business combination total redemption amount | $ 24,500 | $ 0 | 24,500 | $ 0 | |||
Sovereign Bancshares, Inc. | Series D Preferred Stock | |||||||
Preferred Stock | |||||||
Shares redeemed (in shares) | shares | 24,500,000 | ||||||
Number of shares conversion ratio | 1 | ||||||
Liquidation amount (in dollars per share) | $ / shares | $ 1,000 | ||||||
Business combination total redemption amount | $ 24,727 | ||||||
Accrued dividends assumed | $ 185 | ||||||
Dividends | $ 227 | $ 227 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 394,419 | $ 342,521 |
Actual Ratio (as a percent) | 12.98% | 13.16% |
For Capital Adequacy Purposes Amount | $ 243,093 | $ 208,219 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 370,175 | $ 324,726 |
Actual Ratio (as a percent) | 12.18% | 12.48% |
For Capital Adequacy Purposes Amount | $ 182,352 | $ 156,118 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
Common equity tier 1 (to risk-weighted assets) | ||
Actual Amount | $ 358,473 | $ 313,024 |
Actual Ratio (as a percent) | 11.80% | 12.03% |
For Capital Adequacy Purposes Amount | $ 136,706 | $ 117,091 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 370,175 | $ 324,726 |
Actual Ratio (as a percent) | 12.04% | 12.92% |
For Capital Adequacy Purposes Amount | $ 122,982 | $ 100,534 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 353,640 | $ 296,207 |
Actual Ratio (as a percent) | 11.64% | 11.37% |
For Capital Adequacy Purposes Amount | $ 243,052 | $ 208,413 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 303,814 | $ 260,516 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 334,385 | $ 283,399 |
Actual Ratio (as a percent) | 11.01% | 10.88% |
For Capital Adequacy Purposes Amount | $ 182,226 | $ 156,286 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 242,968 | $ 208,382 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 8.00% |
Common equity tier 1 (to risk-weighted assets) | ||
Actual Amount | $ 334,385 | $ 283,399 |
Actual Ratio (as a percent) | 11.01% | 10.88% |
For Capital Adequacy Purposes Amount | $ 136,670 | $ 117,215 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 197,412 | $ 169,310 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 334,385 | $ 283,399 |
Actual Ratio (as a percent) | 10.87% | 11.28% |
For Capital Adequacy Purposes Amount | $ 123,049 | $ 100,496 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 153,811 | $ 125,620 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Business Combinations - Narrati
Business Combinations - Narrative (Details) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 01, 2017USD ($)shares | Aug. 08, 2017USD ($)$ / sharesshares | Aug. 01, 2017USD ($)shares | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||||||||
Goodwill | $ 161,447,000 | $ 159,452,000 | $ 26,865,000 | ||||||
Merger and acquisition expense | 5,220,000 | 2,691,000 | 0 | ||||||
Business combination total redemption amount | 49,000,000 | ||||||||
Payment of preferred stock dividends | 0 | 227,000 | 0 | ||||||
Sovereign Bancshares, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of shares issued in connection with acquisition (in shares) | shares | 5,117,642 | ||||||||
Cash paid to acquire business | $ 56,215,000 | $ 56,215,000 | |||||||
Goodwill | 111,301,000 | ||||||||
Goodwill, expected to be tax deductible | 0 | ||||||||
Merger and acquisition expense | 0 | 1,731,000 | |||||||
Accounts payable and accrued expenses | 6,284,000 | 80,000,000 | |||||||
Business combination total redemption amount | 24,500,000 | 0 | 24,500,000 | $ 0 | |||||
Intangible assets acquired | $ 9,203,000 | $ 9,203,000 | |||||||
Sovereign Bancshares, Inc. | Series D Preferred Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of shares conversion ratio | 1 | ||||||||
Shares redeemed (in shares) | shares | 24,500,000 | ||||||||
Liquidation per share value (USD per share) | $ / shares | $ 1,000 | ||||||||
Business combination total redemption amount | $ 24,727,000 | ||||||||
Preferred stock dividends | $ 185,000 | ||||||||
Payment of preferred stock dividends | $ 227,000 | 227,000 | |||||||
Liberty Bancshares, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Number of shares issued in connection with acquisition (in shares) | shares | 1,449,944 | ||||||||
Cash paid to acquire business | $ 25,009,000 | $ 25,009,000 | |||||||
Goodwill | 23,281,000 | ||||||||
Goodwill, expected to be tax deductible | $ 0 | ||||||||
Merger and acquisition expense | $ 335,000 | $ 960,000 | |||||||
Accounts payable and accrued expenses | 1,547,000 | ||||||||
Intangible assets acquired | $ 5,814,000 | ||||||||
Core deposit intangibles | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets, weighted average useful life | 7 years 8 months 12 days | 8 years 8 months 18 days | |||||||
Core deposit intangibles | Sovereign Bancshares, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Intangible assets acquired | $ 8,452,000 | ||||||||
Finite-lived intangible assets, weighted average useful life | 7 years 8 months 12 days | ||||||||
Core deposit intangibles | Liberty Bancshares, Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Finite-lived intangible assets, weighted average useful life | 10 years |
Business Combinations - Soverei
Business Combinations - Sovereign Bancshares Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Aug. 01, 2017 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||||
Goodwill | $ 161,447 | $ 159,452 | $ 26,865 | |||
Liabilities | ||||||
Business combination total redemption amount | 49,000 | |||||
Sovereign Bancshares, Inc. | ||||||
Assets | ||||||
Cash and cash equivalents | $ 44,775 | $ 44,775 | ||||
Investment securities | 166,307 | 166,307 | ||||
Loans | 747,828 | 747,828 | ||||
Accrued interest receivable | 3,102 | 3,102 | ||||
Bank premises, furniture and equipment | 18,279 | 18,279 | ||||
Non-marketable equity securities | 6,751 | 6,751 | ||||
Other real estate owned | 282 | 282 | ||||
Intangible assets | 9,203 | $ 9,203 | 9,203 | |||
Goodwill | 111,301 | 111,301 | ||||
Other assets | 14,337 | 14,337 | ||||
Total assets | 1,122,165 | 1,122,165 | ||||
Liabilities | ||||||
Deposits | 809,366 | 809,366 | ||||
Accounts payable and accrued expenses | 6,284 | 80,000 | 6,284 | |||
Accrued interest payable and other liabilities | 806 | 806 | ||||
Advances from FHLB | 80,000 | 80,000 | ||||
Junior subordinated debentures | 8,609 | 8,609 | ||||
Total liabilities | 905,065 | 905,065 | ||||
Business combination total redemption amount | 24,500 | 0 | 24,500 | 0 | ||
Consideration | ||||||
Market value of common stock issued | 136,385 | $ 0 | $ 136,385 | $ 0 | ||
Cash paid | 56,215 | 56,215 | ||||
Total fair value of consideration | $ 192,600 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments [Abstract] | ||||||
Purchase accounting adjustments, Loans | (4,622) | |||||
Purchase accounting adjustments, accrued interest receivable | 0 | |||||
Purchase accounting adjustments, bank premises, furniture and equipment | 474 | |||||
Purchase accounting adjustments, intangible assets | 749 | |||||
Purchase accounting adjustments, goodwill | 2,210 | |||||
Purchase accounting adjustments, other assets | 1,189 | |||||
Purchase accounting adjustments, total assets | 0 | |||||
Purchase accounting adjustments, accounts payable and accrued expenses | 0 | |||||
Purchase accounting adjustments, accrued interest Payable and other liabilities | 0 | |||||
Purchase accounting adjustments, total liabilities | $ 0 | |||||
Scenario, Previously Reported | Sovereign Bancshares, Inc. | ||||||
Assets | ||||||
Cash and cash equivalents | 44,775 | |||||
Investment securities | 166,307 | |||||
Loans | 752,450 | |||||
Accrued interest receivable | 3,102 | |||||
Bank premises, furniture and equipment | 17,805 | |||||
Non-marketable equity securities | 6,751 | |||||
Other real estate owned | 282 | |||||
Intangible assets | 8,454 | |||||
Goodwill | 109,091 | |||||
Other assets | 13,148 | |||||
Total assets | 1,122,165 | |||||
Liabilities | ||||||
Deposits | 809,366 | |||||
Accounts payable and accrued expenses | 6,284 | |||||
Accrued interest payable and other liabilities | 806 | |||||
Advances from FHLB | 80,000 | |||||
Junior subordinated debentures | 8,609 | |||||
Total liabilities | 905,065 | |||||
Business combination total redemption amount | 24,500 | |||||
Consideration | ||||||
Market value of common stock issued | 136,385 | |||||
Cash paid | 56,215 | |||||
Total fair value of consideration | $ 192,600 |
Business Combinations - Loans A
Business Combinations - Loans Acquired (Details) - USD ($) $ in Thousands | Dec. 01, 2017 | Aug. 01, 2017 |
Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | $ 747,828 | |
Contractual principal balance | 775,056 | |
Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | $ 313,180 | |
Contractual principal balance | 317,867 | |
PCI loans | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 47,585 | |
Contractual principal balance | 67,985 | |
Contractually required principal and interest | 85,125 | |
Non-accretable difference | 33,064 | |
Cash flows expected to be collected | 52,061 | |
Accretable difference | 4,476 | |
PCI loans | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 1,175 | |
Contractual principal balance | 1,748 | |
Contractually required principal and interest | 2,316 | |
Non-accretable difference | 711 | |
Cash flows expected to be collected | 1,605 | |
Accretable difference | 430 | |
Real Estate | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 535,969 | |
Real Estate | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 258,446 | |
Real Estate | PCI loans | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 17,708 | |
Real Estate | PCI loans | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 868 | |
Commercial | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 210,607 | |
Commercial | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 50,002 | |
Commercial | PCI loans | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 29,877 | |
Commercial | PCI loans | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 307 | |
Consumer | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 1,252 | |
Consumer | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 4,732 | |
Consumer | PCI loans | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 0 | |
Consumer | PCI loans | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 0 | |
Other acquired loans | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 700,243 | |
Contractual principal balance | 707,071 | |
Other acquired loans | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 312,005 | |
Contractual principal balance | 316,119 | |
Other acquired loans | Real Estate | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 518,261 | |
Other acquired loans | Real Estate | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 257,578 | |
Other acquired loans | Commercial | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 180,730 | |
Other acquired loans | Commercial | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | 49,695 | |
Other acquired loans | Consumer | Sovereign Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | $ 1,252 | |
Other acquired loans | Consumer | Liberty Bancshares, Inc. | ||
Business Acquisition [Line Items] | ||
Total fair value | $ 4,732 |
Business Combinations - Summary
Business Combinations - Summary of Intangible Assets Acquired (Details) - USD ($) $ in Thousands | Aug. 01, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 |
Core deposit intangibles | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, weighted average useful life | 7 years 8 months 12 days | 8 years 8 months 18 days | ||
Sovereign Bancshares, Inc. | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 9,203 | $ 9,203 | ||
Sovereign Bancshares, Inc. | Core deposit intangibles | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 8,452 | |||
Finite-lived intangible assets, weighted average useful life | 7 years 8 months 12 days | |||
Sovereign Bancshares, Inc. | Servicing asset | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 317 | |||
Finite-lived intangible assets, weighted average useful life | 6 years 1 month 6 days | |||
Sovereign Bancshares, Inc. | Intangible lease assets | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets | $ 434 | |||
Finite-lived intangible assets, weighted average useful life | 5 years |
Business Combinations - Liberty
Business Combinations - Liberty Bancshares Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 01, 2017 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 161,447 | $ 159,452 | $ 26,865 | |||
Liberty Bancshares, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 57,384 | $ 57,384 | ||||
Investment securities | 54,137 | 54,137 | ||||
Loans | 313,180 | 313,180 | ||||
Purchase accounting adjustments, Loans | 572 | |||||
Accrued interest receivable | 1,191 | 1,191 | ||||
Bank premises, furniture and equipment | 6,833 | 6,833 | ||||
Purchase accounting adjustments, bank premises, furniture and equipment | 688 | |||||
Non-marketable equity securities | 2,096 | 2,096 | ||||
Other real estate owned | 166 | 166 | ||||
Intangible assets | 5,814 | 5,814 | ||||
Purchase accounting adjustments, intangible assets | (1,705) | |||||
Goodwill | 23,281 | 23,281 | ||||
Purchase accounting adjustments, goodwill | (215) | |||||
Other assets | 3,126 | 3,126 | ||||
Purchase accounting adjustments, other assets | 617 | |||||
Total assets | 467,208 | 467,208 | ||||
Purchase accounting adjustments, total assets | (43) | |||||
Deposits | 395,548 | 395,548 | ||||
Purchase accounting adjustments, deposits | (303) | |||||
Accounts payable and accrued expenses | 1,547 | 1,547 | ||||
Purchase accounting adjustments, accounts payable and accrued expenses | 260 | |||||
Accrued interest payable and other liabilities | 142 | 142 | ||||
Junior subordinated debentures | 4,625 | 4,625 | ||||
Total liabilities | 401,862 | 401,862 | ||||
Purchase accounting adjustments, total liabilities | $ (43) | |||||
Market value of common stock issued | 40,337 | $ 0 | $ 40,337 | $ 0 | ||
Cash paid | 25,009 | $ 25,009 | ||||
Total fair value of consideration | $ 65,346 | |||||
Scenario, Previously Reported | Liberty Bancshares, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | 57,384 | |||||
Investment securities | 54,137 | |||||
Loans | 312,608 | |||||
Accrued interest receivable | 1,191 | |||||
Bank premises, furniture and equipment | 6,145 | |||||
Non-marketable equity securities | 2,096 | |||||
Other real estate owned | 166 | |||||
Intangible assets | 7,519 | |||||
Goodwill | 23,496 | |||||
Other assets | 2,509 | |||||
Total assets | 467,251 | |||||
Deposits | 395,851 | |||||
Accounts payable and accrued expenses | 1,287 | |||||
Accrued interest payable and other liabilities | 142 | |||||
Junior subordinated debentures | 4,625 | |||||
Total liabilities | 401,905 | |||||
Market value of common stock issued | 40,337 | |||||
Cash paid | 25,009 | |||||
Total fair value of consideration | $ 65,346 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Net interest income | $ 102,440 | $ 98,701 |
Net income available to common stockholders | $ 22,270 | $ 26,984 |
Basic earnings per share (in USD per share) | $ 0.98 | $ 1.55 |
Diluted earnings per share (in USD per share) | $ 0.96 | $ 1.53 |
Net interest income, since date of acquisition | $ 14,825 | |
Net income available to common stockholders, since date of acquisition | $ 4,615 |
Branch Assets and Liabilities_3
Branch Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Deposits | $ 2,622,428 | $ 2,278,630 | ||
Total assets | 0 | 33,552 | ||
Total liabilities | 0 | 64,627 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Payments to acquire businesses, net of cash acquired | $ 1,747 | $ 33,557 | ||
Disposal group, not discontinued operation, gain (loss) on disposal | $ (6) | 355 | ||
Deposits | 1,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and cash equivalents | 0 | 334 | ||
Loans | 0 | 26,313 | ||
Accrued interest receivable | 0 | 63 | ||
Bank premises, furniture and equipment | 0 | 5,118 | ||
Intangible assets | 0 | 1,724 | ||
Total assets | 0 | 33,552 | ||
Deposits | 0 | 64,282 | ||
Accounts payable and accrued expenses | 0 | 2 | ||
Deferred tax liability | 0 | 327 | ||
Accrued interest payable and other liabilities | 0 | 16 | ||
Total liabilities | $ 0 | $ 64,627 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 84,449 | $ 149,044 | $ 234,791 | $ 71,551 |
Other assets | 14,091 | 14,518 | ||
Total assets | 3,208,550 | 2,945,583 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other borrowings | 0 | 15,000 | ||
Total liabilities | 2,677,912 | 2,456,654 | ||
Stockholders’ equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 243 | 241 | ||
Additional paid-in capital | 449,427 | 445,517 | ||
Retained earnings | 83,968 | 44,627 | ||
Unallocated employee stock ownership plan shares | 0 | (106) | ||
Accumulated other comprehensive income | (2,930) | (1,280) | ||
Treasury stock | (70) | (70) | ||
Total stockholders’ equity | 530,638 | 488,929 | 239,088 | 132,046 |
Total liabilities and stockholders’ equity | 3,208,550 | 2,945,583 | ||
Veritex Holdings, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 40,474 | 46,724 | $ 98,366 | $ 14,512 |
Investment in subsidiaries | 506,902 | 459,654 | ||
Other assets | 940 | 2,267 | ||
Total assets | 548,316 | 508,645 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 987 | 3,027 | ||
Other borrowings | 16,691 | 16,689 | ||
Total liabilities | 17,678 | 19,716 | ||
Stockholders’ equity: | ||||
Preferred stock | 0 | 0 | ||
Common stock | 243 | 241 | ||
Additional paid-in capital | 449,427 | 445,517 | ||
Retained earnings | 83,968 | 44,627 | ||
Unallocated employee stock ownership plan shares | 0 | (106) | ||
Accumulated other comprehensive income | (2,930) | (1,280) | ||
Treasury stock | (70) | (70) | ||
Total stockholders’ equity | 530,638 | 488,929 | ||
Total liabilities and stockholders’ equity | $ 548,316 | $ 508,645 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||||||||||
Other | $ 20 | $ 8 | $ 2 | ||||||||
Interest expense: | |||||||||||
Other borrowed funds | 1,031 | 635 | 652 | ||||||||
Net interest income | $ 28,287 | $ 29,176 | $ 27,624 | $ 29,102 | $ 25,750 | $ 19,129 | $ 12,376 | $ 11,253 | 114,189 | 68,508 | 40,955 |
Noninterest expense: | |||||||||||
Salaries and employee benefits | 31,138 | 20,828 | 14,332 | ||||||||
Merger and acquisition expense | 5,220 | 2,691 | 0 | ||||||||
Other | 5,371 | 4,300 | 2,003 | ||||||||
Total noninterest expense | 17,538 | 18,246 | 16,169 | 17,306 | 15,035 | 12,522 | 7,782 | 7,450 | 69,259 | 42,789 | 26,390 |
Income before income tax expense | 50,237 | 28,181 | 19,018 | ||||||||
Income tax expense | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | 7,227 | 2,650 | 1,802 | 1,350 | 10,896 | 13,029 | 6,467 |
Net income | $ 3,257 | $ 5,182 | $ 3,615 | $ 3,098 | 39,341 | 15,152 | 12,551 | ||||
Veritex Holdings, Inc. | |||||||||||
Interest income: | |||||||||||
Other | 20 | 8 | 2 | ||||||||
Interest expense: | |||||||||||
Other borrowed funds | 974 | 598 | 388 | ||||||||
Net interest income | (954) | (590) | (386) | ||||||||
Noninterest expense: | |||||||||||
Salaries and employee benefits | 853 | 712 | 161 | ||||||||
Merger and acquisition expense | 4,415 | 2,256 | 828 | ||||||||
Other | 0 | 0 | 1 | ||||||||
Total noninterest expense | 5,268 | 2,968 | 990 | ||||||||
Income before income tax expense | (6,222) | (3,558) | (1,376) | ||||||||
Income tax expense | (713) | (730) | (480) | ||||||||
Loss before equity in undistributed income of subsidiaries | (5,509) | (2,828) | (896) | ||||||||
Equity in undistributed income of bank | 44,850 | 17,980 | 13,447 | ||||||||
Net income | $ 39,341 | $ 15,152 | $ 12,551 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||||||
Net income | $ 3,257 | $ 5,182 | $ 3,615 | $ 3,098 | $ 39,341 | $ 15,152 | $ 12,551 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Net cash provided by operating activities | 50,388 | 26,662 | 10,860 | ||||
Cash flows from investing activities: | |||||||
Net cash used in investing activities | (400,010) | (124,855) | (203,316) | ||||
Cash flows from financing activities: | |||||||
Proceeds from exercise of employee stock options | 454 | 175 | 0 | ||||
Proceeds from payments on ESOP Loan | 109 | 109 | 109 | ||||
Offering costs paid in connection with acquisitions | (899) | (772) | 0 | ||||
Dividends paid on preferred stock | 0 | (227) | 0 | ||||
Net cash provided by financing activities | 285,027 | 12,446 | 355,696 | ||||
Net (decrease) increase in cash and cash equivalents | (64,595) | (85,747) | 163,240 | ||||
Cash and cash equivalents at beginning of year | 71,551 | 149,044 | 234,791 | 71,551 | |||
Cash and cash equivalents at end of year | 234,791 | 84,449 | 149,044 | 234,791 | |||
Veritex Holdings, Inc. | |||||||
Cash flows from operating activities: | |||||||
Net income | 39,341 | 15,152 | 12,551 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Amortization of debt costs | 2 | 45 | 8 | ||||
Equity in undistributed net income of Bank | (44,850) | (17,980) | (13,447) | ||||
Decrease (increase) in other assets | 2,226 | 3,523 | (155) | ||||
(Decrease) increase in other liabilities | (2,635) | 1,353 | 270 | ||||
Net cash provided by operating activities | (5,916) | 2,093 | (773) | ||||
Cash flows from investing activities: | |||||||
Capital investment in subsidiary | 0 | 0 | (10,000) | ||||
Net cash used in investing activities | 0 | (80,761) | (10,000) | ||||
Cash flows from financing activities: | |||||||
Net proceeds from sale of common stock in public offering | 2 | 56,681 | 94,518 | ||||
Redemption of preferred stock | 0 | (24,500) | 0 | ||||
Net change in other borrowings | 0 | (4,625) | 0 | ||||
Proceeds from exercise of employee stock options | 454 | 175 | 0 | ||||
Proceeds from payments on ESOP Loan | 109 | 109 | 109 | ||||
Offering costs paid in connection with acquisitions | (899) | (772) | 0 | ||||
Dividends paid on preferred stock | 0 | (42) | 0 | ||||
Net cash provided by financing activities | (334) | 27,026 | 94,627 | ||||
Net (decrease) increase in cash and cash equivalents | (6,250) | (51,642) | 83,854 | ||||
Cash and cash equivalents at beginning of year | $ 14,512 | 46,724 | 98,366 | 14,512 | |||
Cash and cash equivalents at end of year | $ 98,366 | 40,474 | 46,724 | 98,366 | |||
Sovereign acquisition | Veritex Holdings, Inc. | |||||||
Cash flows from investing activities: | |||||||
Net cash paid in Sovereign acquisition | 0 | (55,949) | 0 | ||||
Liberty acquisition | Veritex Holdings, Inc. | |||||||
Cash flows from investing activities: | |||||||
Net cash paid in Sovereign acquisition | $ 0 | $ (24,812) | $ 0 |
Summary of Quarterly Financia_3
Summary of Quarterly Financial Statements (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 37,774 | $ 37,818 | $ 34,555 | $ 34,087 | $ 29,897 | $ 22,279 | $ 14,307 | $ 13,069 | $ 144,234 | $ 79,552 | $ 46,595 |
Interest Expense | 9,487 | 8,642 | 6,931 | 4,985 | 4,147 | 3,150 | 1,931 | 1,816 | 30,045 | 11,044 | 5,640 |
Net interest income | 28,287 | 29,176 | 27,624 | 29,102 | 25,750 | 19,129 | 12,376 | 11,253 | 114,189 | 68,508 | 40,955 |
Provision for loan losses | 1,364 | 3,057 | 1,504 | 678 | 2,529 | 752 | 943 | 890 | 6,603 | 5,114 | 2,050 |
Noninterest income | 4,027 | 2,510 | 2,592 | 2,781 | 2,298 | 1,977 | 1,766 | 1,535 | 11,910 | 7,576 | 6,503 |
Noninterest expense | 17,538 | 18,246 | 16,169 | 17,306 | 15,035 | 12,522 | 7,782 | 7,450 | 69,259 | 42,789 | 26,390 |
Income tax expense | 3,587 | 1,448 | 2,350 | 3,511 | 7,227 | 2,650 | 1,802 | 1,350 | 10,896 | 13,029 | 6,467 |
Net income | 3,257 | 5,182 | 3,615 | 3,098 | 39,341 | 15,152 | 12,551 | ||||
Preferred stock dividends | 0 | 42 | 0 | 0 | 0 | 42 | 0 | ||||
Net income allocated to common stockholders | $ 9,825 | $ 8,935 | $ 10,193 | $ 10,388 | $ 3,257 | $ 5,140 | $ 3,615 | $ 3,098 | $ 39,341 | 15,110 | 12,551 |
Stock issued in acquisitions, net of offering costs, value | $ 135,947 | $ 94,518 | |||||||||
Basic (in USD per share) | $ 0.41 | $ 0.37 | $ 0.42 | $ 0.43 | $ 0.14 | $ 0.26 | $ 0.24 | $ 0.20 | $ 1.63 | $ 0.82 | $ 1.16 |
Diluted (in USD per share) | $ 0.40 | $ 0.36 | $ 0.42 | $ 0.42 | $ 0.14 | $ 0.25 | $ 0.23 | $ 0.20 | $ 1.60 | $ 0.80 | $ 1.13 |
Subsequent Events (Details)
Subsequent Events (Details) | Jan. 01, 2019USD ($)branchshares | Jan. 28, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Subsequent Event [Line Items] | |||||
Merger and acquisition expense | $ 5,220,000 | $ 2,691,000 | $ 0 | ||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, dividends, per share, declared (usd per share) | $ / shares | $ 0.125 | ||||
Green Bancorp, Inc. | |||||
Subsequent Event [Line Items] | |||||
Merger and acquisition expense | $ 4,865,000 | ||||
Green Bancorp, Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of branches | branch | 21 | ||||
Business combination, common share conversion ratio | shares | 0.79 | ||||
Cash paid | $ 116,000 | ||||
Other payments to acquire businesses | $ 10,000 | ||||
Common Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Common Stock | Green Bancorp, Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in connection with acquisition (in shares) | shares | 29,533,000 | ||||
Employee Stock Option | Common Stock | Green Bancorp, Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in connection with acquisition (in shares) | shares | 1,085,000 | ||||
Restricted stock units | Common Stock | Green Bancorp, Inc. | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Number of shares issued in connection with acquisition (in shares) | shares | 523,000 |