Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36682 | |
Entity Registrant Name | VERITEX HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 27-0973566 | |
Entity Address, Address Line One | 8214 Westchester Drive, Suite 800 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75225 | |
City Area Code | (972) | |
Local Phone Number | 349-6200 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | VBTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 51,903,818 | |
Entity Central Index Key | 0001501570 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 72,107 | $ 19,598 |
Interest bearing deposits in other banks | 180,485 | 64,851 |
Total cash and cash equivalents | 252,592 | 84,449 |
Securities available-for-sale, at fair value | 990,274 | 262,695 |
Securities held-to-maturity (fair value of $35,177 at September 30, 2019) | 33,119 | 0 |
Trust preferred securities | 1,018 | 352 |
Federal Reserve Bank stock | 33,782 | 12,324 |
Federal Home Loan Bank of Dallas stock | 34,347 | 2,957 |
Other investments | 20,648 | 7,541 |
Total investments | 1,113,188 | 285,869 |
Loans held for sale | 10,715 | 1,258 |
Less: Allowance for loan losses | (26,243) | (19,255) |
Loans held for investment, net | 5,861,361 | 2,536,239 |
Bank-owned life insurance | 80,411 | 22,064 |
Bank premises, furniture and equipment, net | 118,449 | 78,409 |
Other real estate owned | 4,625 | 0 |
Intangible assets, net of accumulated amortization of $16,450 and $7,528, at September 30, 2019 and December 31, 2018 | 75,363 | 15,896 |
Goodwill | 370,463 | 161,447 |
Other assets | 75,716 | 22,919 |
Total assets | 7,962,883 | 3,208,550 |
Deposits: | ||
Noninterest-bearing deposits | 1,473,126 | 626,283 |
Interest-bearing transaction and savings deposits | 2,528,293 | 1,313,161 |
Certificates and other time deposits | 1,876,427 | 682,984 |
Total deposits | 5,877,846 | 2,622,428 |
Accounts payable and accrued expenses | 45,475 | 5,413 |
Accrued interest payable | 6,054 | 5,361 |
Advances from Federal Home Loan Bank | 752,907 | 28,019 |
Subordinated debentures and subordinated notes | 72,284 | 16,691 |
Securities sold under agreements to repurchase | 2,787 | 0 |
Total liabilities | 6,757,353 | 2,677,912 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 75,000,000 shares authorized; 54,732,272 and 24,263,894 shares issued at September 30, 2019 and December 31, 2018, respectively; 52,373,169 and 24,253,894 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 524 | 243 |
Additional paid-in capital | 1,114,659 | 449,427 |
Retained earnings | 125,344 | 83,968 |
Accumulated other comprehensive income (loss) | 23,837 | (2,930) |
Treasury stock, 2,359,103 and 10,000 shares at cost at September 30, 2019 and December 31, 2018, respectively | (58,834) | (70) |
Total stockholders’ equity | 1,205,530 | 530,638 |
Total liabilities and stockholders’ equity | 7,962,883 | 3,208,550 |
Mortgage warehouse | ||
ASSETS | ||
Loans held for investment, mortgage warehouse | 233,577 | 0 |
Real Estate, Commercial and Consumer Portfolio Segments | ||
ASSETS | ||
Loans held for investment, mortgage warehouse | $ 5,654,027 | $ 2,555,494 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Held to maturity investments | $ 35,177 | |
Intangible assets, accumulated amortization | $ 16,450 | $ 7,528 |
Stockholders’ equity: | ||
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) | 54,732,272 | 24,263,894 |
Common stock, shares outstanding (in shares) | 52,373,169 | 24,253,894 |
Treasury stock, shares (in shares) | 2,359,103 | 10,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and dividend income: | ||||
Loans, including fees | $ 85,811 | $ 35,074 | $ 258,344 | $ 99,432 |
Securities | 7,687 | 1,722 | 22,316 | 4,697 |
Deposits in financial institutions and Fed Funds sold | 1,329 | 1,016 | 4,255 | 2,316 |
Other investments | 816 | 108 | 2,129 | 442 |
Total interest and dividend income | 95,643 | 37,920 | 287,044 | 106,887 |
Interest expense: | ||||
Transaction and savings deposits | 10,381 | 4,694 | 32,152 | 12,187 |
Certificates and other time deposits | 10,283 | 3,068 | 29,220 | 6,320 |
Advances from FHLB | 3,081 | 630 | 7,323 | 1,324 |
Subordinated debentures and subordinated notes | 1,024 | 250 | 3,116 | 727 |
Total interest expense | 24,769 | 8,642 | 71,811 | 20,558 |
Net interest income | 70,874 | 29,278 | 215,233 | 86,329 |
Provision for loan losses | 9,674 | 3,057 | 18,021 | 5,239 |
Net interest income after provision for loan losses | 61,200 | 26,221 | 197,212 | 81,090 |
Noninterest income: | ||||
Service charges and fees on deposit accounts | 3,667 | 809 | 10,606 | 2,588 |
Loan fees | 2,252 | 410 | 5,861 | 945 |
Loss on sales of investment securities | 0 | (34) | (1,414) | (22) |
Net gain on sales of loans and other assets owned | 853 | 270 | 4,327 | 1,267 |
Rental income | 369 | 414 | 1,110 | 1,343 |
Other | 1,289 | 539 | 2,458 | 1,335 |
Total noninterest income | 8,430 | 2,408 | 22,948 | 7,456 |
Noninterest expense: | ||||
Salaries and employee benefits | 17,530 | 7,394 | 53,874 | 22,981 |
Occupancy and equipment | 4,044 | 2,890 | 12,187 | 8,267 |
Professional and regulatory fees | 2,750 | 1,893 | 8,982 | 5,525 |
Data processing and software expense | 2,252 | 697 | 6,485 | 2,214 |
Marketing | 708 | 306 | 2,288 | 1,213 |
Amortization of intangibles | 2,712 | 798 | 8,191 | 2,632 |
Telephone and communications | 361 | 236 | 1,381 | 1,076 |
Merger and acquisition expense | 1,035 | 2,692 | 38,042 | 4,070 |
Other | 3,238 | 1,340 | 10,089 | 3,743 |
Total noninterest expense | 34,630 | 18,246 | 141,519 | 51,721 |
Net income from operations | 35,000 | 10,383 | 78,641 | 36,825 |
Income tax expense | 7,595 | 1,448 | 16,953 | 7,309 |
Net income | $ 27,405 | $ 8,935 | $ 61,688 | $ 29,516 |
Basic earnings per share (in dollars per share) | $ 0.52 | $ 0.37 | $ 1.15 | $ 1.22 |
Diluted earnings per share (in dollars per share) | $ 0.51 | $ 0.36 | $ 1.13 | $ 1.20 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 27,405 | $ 8,935 | $ 61,688 | $ 29,516 |
Net unrealized gains (losses) on securities available for sale: | ||||
Change in net unrealized gains (losses) on securities available for sale during the period, net | 7,212 | (1,359) | 29,892 | (4,875) |
Reclassification adjustment for net losses (gains) included in net income | 0 | 34 | 1,414 | 22 |
Net unrealized gains (losses) on securities available for sale | 7,212 | (1,325) | 31,306 | (4,853) |
Net unrealized gains on derivative instruments designated as cash flow hedges | 413 | 2,033 | ||
Net unrealized gains on derivative instruments designated as cash flow hedges | 0 | 0 | ||
Other comprehensive income (loss), before tax | 7,625 | (1,325) | 33,339 | (4,853) |
Income tax expense (benefit) | 1,529 | (278) | 6,572 | (1,019) |
Other comprehensive income (loss), net of tax | 6,096 | (1,047) | 26,767 | (3,834) |
Comprehensive income | $ 33,501 | $ 7,888 | $ 88,455 | $ 25,682 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Unallocated Employee Stock Ownership Plan Shares | Green Bancorp, Inc. | Green Bancorp, Inc.Common Stock | Green Bancorp, Inc.Additional Paid-In Capital |
Beginning balance (in shares) at Dec. 31, 2017 | 24,109,515 | 10,000 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 488,929 | $ 241 | $ (70) | $ 445,517 | $ 44,627 | $ (1,280) | $ (106) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 74,706 | |||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (445) | $ 1 | (446) | |||||||
Exercise of employee stock options (in shares) | 7,401 | |||||||||
Exercise of employee stock options | (29) | (29) | ||||||||
Stock based compensation | 3,075 | 3,075 | ||||||||
Net income | 29,516 | 29,516 | ||||||||
Other comprehensive (loss) income | (3,834) | (3,834) | ||||||||
Ending balance (in shares) at Sep. 30, 2018 | 24,191,622 | 10,000 | ||||||||
Ending balance at Sep. 30, 2018 | 517,212 | $ 242 | $ (70) | 448,117 | 74,143 | (5,114) | (106) | |||
Beginning balance (in shares) at Dec. 31, 2017 | 24,109,515 | 10,000 | ||||||||
Beginning balance at Dec. 31, 2017 | $ 488,929 | $ 241 | $ (70) | 445,517 | 44,627 | (1,280) | (106) | |||
Ending balance (in shares) at Dec. 31, 2018 | 24,253,894 | 24,253,894 | 10,000 | |||||||
Ending balance at Dec. 31, 2018 | $ 530,638 | $ 243 | $ (70) | 449,427 | 83,968 | (2,930) | ||||
Beginning balance (in shares) at Jun. 30, 2018 | 24,181,401 | 10,000 | ||||||||
Beginning balance at Jun. 30, 2018 | 508,441 | $ 242 | $ (70) | 447,234 | 65,208 | (4,067) | (106) | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 10,221 | |||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (56) | (56) | ||||||||
Stock based compensation | 939 | 939 | ||||||||
Net income | 8,935 | 8,935 | ||||||||
Other comprehensive (loss) income | (1,047) | (1,047) | ||||||||
Ending balance (in shares) at Sep. 30, 2018 | 24,191,622 | 10,000 | ||||||||
Ending balance at Sep. 30, 2018 | $ 517,212 | $ 242 | $ (70) | 448,117 | 74,143 | (5,114) | $ (106) | |||
Beginning balance (in shares) at Dec. 31, 2018 | 24,253,894 | 24,253,894 | 10,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 530,638 | $ 243 | $ (70) | 449,427 | 83,968 | (2,930) | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Issuance of common shares in connection with the acquisition of Green Bancorp, Inc. (Green), net of offering costs of $788 (in shares) | 29,532,957 | |||||||||
Issuance of common shares in connection with the acquisition of Green Bancorp, Inc. (Green), net of offering costs of $788 | $ 630,627 | $ 295 | $ 630,332 | |||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 226,581 | 497,594 | ||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (1,289) | $ 2 | (1,291) | $ 12,484 | $ 5 | $ 12,479 | ||||
Exercise of employee stock options (in shares) | 211,246 | |||||||||
Exercise of employee stock options | 2,391 | $ 2 | 2,389 | |||||||
Shares buyback (in shares) | 2,349,103 | 2,349,103 | ||||||||
Stock buyback | (58,787) | $ (23) | $ (58,764) | |||||||
Stock based compensation | 19,920 | 19,920 | ||||||||
Reclassification of liability-classified awards to equity awards | 1,403 | 1,403 | ||||||||
Net income | 61,688 | 61,688 | ||||||||
Dividends paid | (20,312) | (20,312) | ||||||||
Other comprehensive (loss) income | $ 26,767 | 26,767 | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 52,373,169 | 52,373,169 | 2,359,103 | |||||||
Ending balance at Sep. 30, 2019 | $ 1,205,530 | $ 524 | $ (58,834) | 1,114,659 | 125,344 | 23,837 | ||||
Beginning balance (in shares) at Jun. 30, 2019 | 53,457,486 | 1,181,862 | ||||||||
Beginning balance at Jun. 30, 2019 | 1,205,293 | $ 535 | $ (29,873) | 1,112,238 | 104,652 | 17,741 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 352 | |||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (6) | (6) | ||||||||
Exercise of employee stock options (in shares) | 92,572 | |||||||||
Exercise of employee stock options | 999 | $ 1 | 998 | |||||||
Shares buyback (in shares) | 1,177,241 | 1,177,241 | ||||||||
Stock buyback | (28,973) | $ (12) | $ (28,961) | |||||||
Stock based compensation | 1,429 | 1,429 | ||||||||
Net income | 27,405 | 27,405 | ||||||||
Dividends paid | (6,713) | (6,713) | ||||||||
Other comprehensive (loss) income | $ 6,096 | 6,096 | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 52,373,169 | 52,373,169 | 2,359,103 | |||||||
Ending balance at Sep. 30, 2019 | $ 1,205,530 | $ 524 | $ (58,834) | $ 1,114,659 | $ 125,344 | $ 23,837 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Offering costs | $ 788 | |||
Restricted Stock Units | ||||
Shares withheld to cover tax withholdings (in shares) | 148 | 1,379 | 53,734 | 14,978 |
Employee Stock Options | ||||
Shares withheld to cover tax withholdings (in shares) | 13,709 | 1,691 | ||
Shares paid for cashless exercise (in shares) | 4,391 | |||
Green Bancorp, Inc. | Restricted Stock Units | ||||
Shares withheld to cover tax withholdings (in shares) | 25,872 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 61,688 | $ 29,516 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of fixed assets and intangibles | 12,372 | 5,350 |
Net accretion of time deposit and debt premium | (6,495) | 0 |
Provision for loan losses | 18,021 | 5,239 |
Accretion of loan purchase discount | (20,241) | (6,882) |
Stock-based compensation expense | 19,920 | 3,075 |
Compensation expense - liability-classified awards | 1,403 | 0 |
Excess tax benefit from stock compensation | 94 | (168) |
Net amortization of premiums on investment securities | 1,887 | 1,478 |
Change in cash surrender value of bank-owned life insurance | (1,506) | (439) |
Net loss (gain) on sales of investment securities | 1,414 | (22) |
Change in fair value of held for sale Small Business Administration (SBA) loans using fair value option | (215) | 0 |
Gain on sales of mortgage loans held for sale | (394) | (566) |
Gain on sales of SBA loans | (3,933) | (701) |
Impairment on servicing asset | 188 | 0 |
Net originations of loans held for sale | (28,414) | (28,361) |
Proceeds from sales of loans held for sale | 28,926 | 28,343 |
Write down on other real estate owned | 0 | 156 |
Net loss (gain) on sale of branches | 474 | (349) |
(Increase) decrease in accrued interest receivable and other assets | (1,064) | 670 |
(Decrease) increase in accounts payable, accrued expenses and accrued interest payable | (8,623) | 2,502 |
Net cash provided by operating activities | 75,502 | 38,841 |
Cash flows from investing activities: | ||
Cash received in excess of cash paid for the acquisition of Green | 112,710 | 0 |
Cash settlement for sale of held for sale branches | 7,153 | (31,810) |
Purchases of securities available for sale | (409,453) | (90,005) |
Sales of securities available for sale | 254,397 | 30,961 |
Proceeds from maturities, calls and pay downs of investment securities | 90,079 | 24,615 |
Purchases of securities held to maturity | (8,137) | 0 |
Maturity, calls and paydowns of securities held to maturity | 1,214 | 0 |
Purchases of non-marketable equity securities, net | (26,332) | (13,685) |
Net loans originated | (103,790) | (217,055) |
Proceeds from sale of SBA loans | 47,748 | 9,443 |
Net additions to bank premises and equipment | (6,395) | (3,194) |
Proceeds from sales of other real estate owned | 0 | 291 |
Net cash used in investing activities | (40,806) | (290,439) |
Cash flows from financing activities: | ||
Net change in deposits | (213,005) | 377,927 |
Net change in advances from Federal Home Loan Bank | 424,888 | 1,891 |
Net change in other borrowings | 0 | (15,000) |
Net change in securities sold under agreement to repurchase | (439) | 0 |
Payments to tax authorities for stock-based compensation | (1,289) | (501) |
Proceeds from exercise of employee stock options | 2,391 | 27 |
Purchase of treasury stock | (58,787) | 0 |
Dividends paid | (20,312) | 0 |
Net cash provided by financing activities | 133,447 | 364,344 |
Net increase in cash and cash equivalents | 168,143 | 112,746 |
Cash and cash equivalents at beginning of period | 84,449 | 149,044 |
Cash and cash equivalents at end of period | $ 252,592 | $ 261,790 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Organization Veritex Holdings, Inc. (“Veritex” or the “Company”), a Texas corporation and bank holding company, was incorporated in July 2009 and was formed for the purpose of acquiring one or more financial institutions located in Dallas, Texas and surrounding areas. Veritex, through its wholly-owned subsidiary, Veritex Community Bank (the “Bank”), is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates 26 branches and one mortgage office located in the Dallas-Fort Worth metroplex, twelve branches in the Houston metropolitan area and one branch in Louisville, Kentucky. 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 both perform periodic examinations to ensure regulatory compliance. On January 1, 2019 (the “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. See additional information on the acquisition in Note 19 - Business Combinations. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank, its wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at September 30, 2019 and December 31, 2018 , condensed consolidated results of operations for the three and nine months ended September 30, 2019 and 2018 , condensed consolidated stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 and condensed consolidated cash flows for the nine months ended September 30, 2019 and 2018 . Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities and Exchange Commission on February 27, 2019. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 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 an 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 Company’s prior year financial statements were reclassified to conform to the current presentation, including (i) the reclassification of dividend income from other noninterest income into interest on other investments of $102 and $427 for the three and nine months ended September 30, 2018 , respectively, in order to align with industry peers for comparability purposes and (ii) the reclassification of $2,692 and $4,070 from professional and regulatory fees to merger and acquisition expense on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 , respectively. Earnings Per Share Earnings per share (“EPS”) are based upon the Company’s weighted-average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands except per share amounts) Earnings (numerator) Net income $ 27,405 $ 8,935 $ 61,688 $ 29,516 Shares (denominator) Weighted average shares outstanding for basic EPS 52,915 24,176 53,721 24,151 Dilutive effect of employee stock-based awards 953 437 912 436 Adjusted weighted average shares outstanding 53,868 24,613 54,633 24,587 EPS: Basic $ 0.52 $ 0.37 $ 1.15 $ 1.22 Diluted $ 0.51 $ 0.36 $ 1.13 $ 1.20 For the three and nine months ended September 30, 2019 and 2018 , there were no antidilutive shares excluded from the diluted EPS weighted average shares outstanding. Certain Purchased Loans The Company purchases individual loans and groups of loans, through both acquisitions of other banks and the normal course of its operations, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After consummation of the acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. On the date of acquisition, the Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of carrying value are recorded as interest income over the estimated life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, except for present value changes solely due to changes in timing of cash flows, an impairment 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. Derivative Financial Instruments The Company has entered into certain derivative instruments pursuant to a customer accommodation program under which the Company enters into an interest rate swap, floor, cap or collar agreement with a commercial customer and an agreement with offsetting terms with a correspondent bank. These derivative instruments are not designated as accounting hedges and the changes in net fair value are recognized in noninterest income or expense and the fair value amounts are included in other assets and other liabilities. Interest Rate Swap, Floor, Cap and Collar Agreements Designated as Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, floors, caps and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. The entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The Company assesses the “effectiveness” of hedging derivatives on the date an arrangement was entered into and on a prospective basis at least quarterly. Hedge “effectiveness” is determined by the extent to which changes in the fair value of a derivative instrument offset changes in the fair value, cash flows or carrying value attributable to the risk being hedged. If the relationship between the change in the fair value of the derivative instrument and the change in the hedged item falls within a range considered to be the industry norm, the hedge is considered “highly effective” and qualifies for hedge accounting. A hedge is “ineffective” if the relationship between the changes falls outside the acceptable range. In that case, hedge accounting is discontinued on a prospective basis. The time value of the option is excluded from the assessment of effectiveness and is recognized in earnings using a straight-line amortization method over the life of the hedge arrangement. Loans Held-for-Sale Loans are classified as held-for-sale when management has positively determined that the loans will be sold in the foreseeable future and the Company has the ability to do so. The Company’s held-for-sale loans typically consist of certain government guaranteed loans or mortgage loans. The classification may be made upon origination or subsequent to origination or purchase. Once a decision has been made to sell loans not previously classified as held-for-sale, such loans are transferred into the held-for-sale classification and carried at the lower of cost or estimated fair value on an individual loan basis, except for those held-for-sale loans for which the Company elects to use the fair value option. The fair value of loans held-for-sale is based on commitments from investors or prevailing market prices, For the Company’s accounting policy on loans held-for-sale for which the fair value option is not elected, refer to Note 1 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Fair Value Option On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. Changes in fair value for instruments using the fair value option are recorded in noninterest income. Gain on Sale of Guaranteed Portion of SBA Loans The Company originates loans to customers under government guaranteed programs that generally provide for guarantees of 50% to 90% of each loan, subject to a maximum guaranteed amount. The Company can sell the guaranteed portion of the loan in an active secondary market and retains the unguaranteed portion in its portfolio. All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 860, Transfers and Servicing , requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company. Gain on Sale of Mortgage Loans Held for Sale Certain mortgage loans held for sale are sold with servicing released. Gains and losses on sales of mortgage loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase represent the purchase of interests in securities by the Company’s customers. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. The Company does not account for any of its repurchase agreements as sales for accounting purposes in its financial statements. Repurchase agreements are settled on the following business day. All securities sold under agreements to repurchase are collateralized by pledged securities. The securities underlying the repurchase agreements are held in safekeeping by the Bank’s safekeeping agent. Securities Held-to-Maturity Securities classified as held-to-maturity are carried at cost, adjusted for the amortization of premiums and the accretion of discounts. The Company has the positive intent, and the ability, to hold these assets until their respective maturities. Goodwill The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the goodwill below its carrying amount, in accordance with ASC 350-20. During the first quarter of 2019, the Company changed its annual goodwill impairment testing date from December 31 to October 31. The Company believes that the new date is preferable as it provides additional time prior to the Company’s fiscal year end to complete the annual goodwill impairment test, especially in the event the Company pursues potential future acquisitions or experiences growth. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to the Company’s previously issued financial statements. There were no impairments of goodwill recorded during the three and nine months ended September 30, 2019 and 2018 . Liability-Classified Awards The fair value of a liability award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability awards are recorded over the vesting period of the award. Changes in the fair value of liability awards that occur during the requisite service period are recognized as compensation cost over that period. The percentage of the fair value that is accrued as compensation cost at the end of each period equals the percentage of the requisite service that has been rendered at that date. Changes in the fair value of a liability award that occur after the end of the requisite service period are recognized as compensation cost in the period in which the changes occur. Any difference between the amount for which a liability award is settled and its fair value at the settlement date is an adjustment of compensation cost in the period of settlement. Compensation cost for liability awards is recorded in salaries and employee benefits and the associated liability is recorded in accounts payable and accrued expenses. For liability to equity award modifications, the aggregate amount of compensation cost recognized is the fair value based measure of the award on the modification date. On the modification date, the Company reclassifies the previously recorded share-based compensation liability to additional paid-in capital. Adoption of New Accounting Standards FASB Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-11, Targeted Improvements . 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 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 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. The Company’s operating leases relate primarily to office space and bank branches. Right-of-use (“ROU”) assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives, deferred rent and prepaid rent. Operating lease expense, which consists of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $18,705 and an operating lease liability of $18,753 on January 1, 2019, with no impact on the consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability amounts recorded upon implementing ASU 2016-02 include the ROU asset and lease liability acquired/assumed from Green. Refer to Note 19 - Business Combinations for additional information. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the condensed consolidated balance sheets. See Note 9 - Leases for additional information. Recent Accounting Pronouncements ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. 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 Step 2 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, which is not expected to have a significant impact on the consolidated financial statements. 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, ASU 2016-13 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 ASU 2016-13 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. The Company expects ASU 2016-13 to have a significant impact on the Company’s accounting policies, internal control over financial reporting and footnote disclosures. The Company’s working group that includes individuals from various functional areas continues to make progress in accordance with the implementation plan for adoption of the standard. For loans held for investment, early implementation activities focused on data capture and portfolio segmentation, which were substantially completed during the third quarter of 2019. The Company has developed new expected credit loss estimation models. Depending on the nature of each identified segment of financial assets with similar risk characteristics, the Company currently plans on implementing a discounted cash flow method or a loss-rate method to estimate expected credit losses on non-purchased credit deteriorated loans. The Company also plans to use peer historical loss data to supplement its own limited historical loss data. Incorporating reasonable and supportable forecasts of economic conditions into the estimate of expected credit losses will require significant judgment, such as selecting economic variables and forecast scenarios as well as determining the appropriate length of the forecast horizon. Management will estimate credit losses over a selected forecast period and revert to long term historical loss experience over the remaining contractual life of the loans. Management will select economic variables it believes to be most relevant based on the correlation of an economic factor to losses of each loan segment, which will likely include forecasted levels of employment, pricing indexes, and gross domestic product. Management currently intends to leverage economic projections from a reputable and independent third party to develop its reasonable and supportable forecasts over the forecast period. Other internal and external indicators of economic forecasts will also be considered by management when developing the forecast metrics. The Company is still finalizing the final loss model to be utilized for purchase credit deteriorated loans and held-to-maturity debt securities. Additionally, the Company’s primary expected loss model is being validated during the fourth quarter of 2019. The ultimate impact of ASU 2016-13 will depend on the composition of the portfolio and economic conditions and forecasts at the time of adoption. It could also be subject to further regulatory or accounting guidance and other management validation and judgments. Based on our loan portfolio at September 30, 2019 and management’s current expectation of future economic conditions, the allowance for credit losses as a percentage of total loans is expected to increase from 0.45% to between 1.15% and 1.35% as of the date of adoption. This estimated impact includes additional provision required on recently acquired loans that have not required a provision under the incurred loss model and the impact of transitioning of loans previously accounted for under subtopic ASC 310-30 to the purchased credit deteriorated model in ASC 326. The transition to the purchased credit deteriorated model will result in adding our estimate of expected credit losses on such loans to both a) the amortized cost basis of those assets and b) the allowance for credit losses. We do not expect a material impact on the net carrying amount of these assets as a result of the transition. Additionally, this estimated impact at adoption also includes certain qualitative adjustments to the allowance for credit losses. The Company is still assessing the estimated impact to the allowance for credit losses as it relates to the Company’s held-to-maturity debt securities, but the Company does not expect a material impact to the allowance. The Company is currently running parallel computations in 2019 and continues to evaluate the final impact of adoption of this ASU. |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | Supplemental Statement of Cash Flows Other supplemental cash flow information is presented below: Nine Months Ended September 30, 2019 2018 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 65,897 $ 19,939 Cash paid for income taxes 13,400 6,025 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability upon adoption of ASC 842 $ 9,380 $ — Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 788 — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital (48 ) — Net foreclosure of other real estate owned and repossessed assets 4,625 8 Reclassification of branch assets held for sale to loans held for investment 26,171 — Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits 1,173 — Non-cash assets acquired in business combination Investment securities $ 660,792 $ — Non-marketable equity securities 40,287 — Loans held for sale 9,360 — Loans held for investment 3,245,248 (4,050 ) Accrued interest receivable 11,395 — Bank-owned life insurance 56,841 — Bank premises, furniture and equipment 36,855 1,162 Investment in unconsolidated subsidiaries 666 — Intangible assets, net 65,718 (956 ) Goodwill 209,016 1,995 Other assets 12,649 1,806 Right of use asset 9,373 — Deferred taxes 11,930 — Current taxes 1,812 — Assets held for sale 85,307 — Total assets $ 4,457,249 $ (43 ) Non-cash liabilities assumed in business combination Non-interest-bearing deposits $ 825,364 $ 303 Interest-bearing deposits 1,300,825 — Certificates and other time deposits 1,346,915 — Accounts payable and accrued expenses 26,261 — Lease liability 9,373 — Accrued interest payable and other liabilities 5,181 (260 ) Securities sold under agreements to repurchase 3,226 — Advances from Federal Home Loan Bank 300,000 — Subordinated debentures and subordinated notes 56,233 — Liabilities held for sale 52,682 — Total liabilities $ 3,926,060 $ 43 |
Share Transactions
Share Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Share Transactions | Share Transactions On January 28, 2019, the Company's Board of Directors (the “Board”) originally authorized a stock buyback program (the "Stock Buyback Program") pursuant to which the Company could, from time to time, purchase up to $50,000 of its outstanding common stock in the aggregate. On September 3, 2019, the Board authorized an increase of $50,000 in the dollar amount authorized for repurchase, resulting in an aggregate authorization to purchase up to $100,000 under the Stock Buyback Program. The Board also authorized an extension of the original expiration date of the Stock Buyback Program from December 31, 2019 to August 31, 2020. 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 Securities and Exchange Commission (“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 Board at any time prior to its expiration. During the three and nine months ended September 30, 2019 , 1,177,241 and 2,349,103 shares were repurchased through the Stock Buyback Program and held as treasury stock at an average price of $24.61 and $25.03 , respectively. |
Debt Securities
Debt Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities | Debt Securities Debt securities have been classified in the condensed consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, and the fair value of available for sale and held to maturity securities are as follows: September 30, 2019 Amortized Gross Gross Fair Value Available for sale Corporate bonds $ 77,005 $ 1,909 $ 90 $ 78,824 Municipal securities 75,112 3,982 — 79,094 Mortgage-backed securities 338,144 10,175 59 348,260 Collateralized mortgage obligations 398,665 9,135 253 407,547 Small Business Administration ("SBA") guaranteed securities 73,751 2,798 — 76,549 $ 962,677 $ 27,999 $ 402 $ 990,274 Held to maturity Mortgage-backed securities $ 10,540 $ 661 $ — $ 11,201 Municipal securities 22,579 1,397 — 23,976 $ 33,119 $ 2,058 $ — $ 35,177 The Company reassessed the classification of certain investments and, effective January 1, 2019, the Company transferred $4,758 of municipal securities and $3,045 of mortgage-backed securities from available for sale to held to maturity at fair value. The related unrealized gain was minimal. No gain or loss was recorded at the time of the transfer. December 31, 2018 Amortized Gross Gross 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 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 months or more: September 30, 2019 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for sale Corporate bonds $ 5,591 $ 83 $ 3,786 $ 7 $ 9,377 $ 90 Mortgage-backed securities 1,860 7 5,615 52 7,475 59 Collateralized mortgage obligations 22,395 253 — — 22,395 253 $ 29,846 $ 343 $ 9,401 $ 59 $ 39,247 $ 402 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 Municipal securities 16,043 92 10,428 246 26,471 338 Corporate bonds 6,689 134 — — 6,689 134 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 The number of investment positions in an unrealized loss position totaled 10 and 142 at September 30, 2019 and December 31, 2018 , 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) the Company does not have the intent to sell 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 September 30, 2019 compared to the rates 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 from time to time may dispose of an impaired security in response to asset/liability management decisions, future market movements or business plan changes, or if the net proceeds can be reinvested at a rate of return that is expected to recover the loss within a reasonable period of time. In 2019, the Company sold 142 fixed maturity securities from its available for sale portfolio as part of a repositioning strategy recommended by the Company’s asset manager. The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the table 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 terms of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities thus approximates the terms of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. . September 30, 2019 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,897 5,090 — — Due from five years to ten years 68,614 70,271 1,209 1,225 Due after ten years 78,606 82,557 21,370 22,751 152,117 157,918 22,579 23,976 Mortgage-backed securities and collateralized mortgage obligations 736,809 755,807 10,540 11,201 SBA guaranteed securities 73,751 76,549 — — $ 962,677 $ 990,274 $ 33,119 $ 35,177 December 31, 2018 Available for Sale Amortized Fair 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 and collateralized mortgage obligations 190,023 186,810 Asset-backed securities 492 492 $ 266,404 $ 262,695 Proceeds from sales of investment securities available for sale and gross gains and losses for the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended September 30, 2019 2018 Proceeds from sales $ 254,397 $ 30,961 Gross realized gains 522 335 Gross realized losses 1,936 357 There was a blanket floating lien on all securities held by the Company to secure Federal Home Loan Bank (“FHLB”) advances as of September 30, 2019 and December 31, 2018 . |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans held for investment in the accompanying condensed consolidated balance sheets are summarized as follows: September 30, December 31, Loans held for investment: Real estate: Construction and land $ 614,974 $ 324,863 Farmland 16,633 10,528 1 - 4 family residential 559,310 297,917 Multi-family residential 306,965 51,285 Commercial real estate 2,426,641 1,103,032 Commercial 1,711,256 760,772 Mortgage warehouse 233,577 — Consumer 18,114 7,112 5,887,470 2,555,509 Deferred loan fees 134 (15 ) Allowance for loan losses (26,243 ) (19,255 ) Total loans held for investment $ 5,861,361 $ 2,536,239 Included in the net loan portfolio as of September 30, 2019 and December 31, 2018 was an accretable discount related to purchased performing and purchased credit impaired (“PCI”) loans acquired within a business combination in the approximate amounts of $61,744 and $22,309 , 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 September 30, 2019 and December 31, 2018 is a discount on retained loans from sale of originated SBA loans of $2,871 and $2,398 , respectively. The majority of the Company’s 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 September 30, 2019 and December 31, 2018 . 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 September 30, 2019 and December 31, 2018 , were as follows: Non-Accrual Loans September 30, December 31, Real estate: Construction and land $ 1,850 $ 2,399 Farmland — — 1 - 4 family residential 1,188 — Multi-family residential — — Commercial real estate 2,859 2,575 Commercial 4,190 19,769 Mortgage warehouse — — Consumer 85 2 Total $ 10,172 $ 24,745 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 cash flows from these PCI loans can no longer be reasonably estimated. There were no PCI loans included in non-accrual loans at September 30, 2019 . During the three and nine months ended September 30, 2019 , interest income not recognized on non-accrual loans, excluding PCI loans, was $243 and $530 , respectively. During the three and nine months ended September 30, 2018 , interest income not recognized on non-accrual loans, excluding PCI loans, was $331 and $371 , respectively. An age analysis of past due loans, aggregated by class of loans, as of September 30, 2019 and December 31, 2018 , is as follows: September 30, 2019 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 $ 850 $ — $ 1,896 $ 2,746 $ 607,821 $ 4,407 $ 614,974 $ 47 Farmland — — — — 16,633 — 16,633 — 1 - 4 family residential 138 3,168 1,156 4,462 550,236 4,612 559,310 482 Multi-family residential — — — — 306,965 — 306,965 — Commercial real estate 4,927 23,165 1,078 29,170 2,300,288 97,183 2,426,641 398 Commercial 3,851 435 3,838 8,124 1,660,994 42,138 1,711,256 1,129 Mortgage warehouse — — — — 233,577 — 233,577 — Consumer 176 39 223 438 17,540 136 18,114 138 Total $ 9,942 $ 26,807 $ 8,191 $ 44,940 $ 5,694,054 $ 148,476 $ 5,887,470 $ 2,194 (1) Loans 90 days past due and still accruing excludes $30,294 of PCI loans as of September 30, 2019 . 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 — Total $ 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 . Loans past due 90 days and still accruing increased to $2,194 as of September 30, 2019 . These loans are also considered well-secured, and are in the process of collection with plans in place for the borrowers to bring the notes fully current or to subsequently be renewed. The Company believes that it will collect all principal and interest due on each of the loans past due 90 days and still accruing. Impaired Loans Impaired loans are those loans for which 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 and TDRs at September 30, 2019 and December 31, 2018 are summarized in the following tables. September 30, 2019 (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 $ 1,850 $ 184 $ 1,666 $ 1,850 $ 166 $ 1,989 Farmland — — — — — — 1 - 4 family residential 157 157 — 157 — 158 Multi-family residential — — — — — — Commercial real estate 2,983 2,983 — 2,983 — 3,210 Commercial 4,190 285 3,905 4,190 1,418 4,352 Consumer 59 59 — 59 — 60 Total $ 9,239 $ 3,668 $ 5,571 $ 9,239 $ 1,584 $ 9,769 (1) Loans reported exclude PCI loans. 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. 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 $1,132 and $1,171 as of September 30, 2019 and December 31, 2018 , respectively. There were no new TDRs during the nine months ended September 30, 2019 . During the nine months ended September 30, 2018 certain loans were modified as TDRs, the terms of which are summarized in the following table. Nine months ended September 30, 2018 Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Adjusted Interest Rate Extended Maturity Extended Maturity and Restructured Payments Extended Maturity, Restructured Payments and Adjusted Interest Rate Commercial 3 628 — 612 — — Total 3 $ 628 $ — $ 612 $ — $ — There were no loans modified as TDR loans within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2019 and 2018 . A default for purposes of this disclosure is a TDR loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. Interest income recorded during the three and nine months ended September 30, 2019 and 2018 on TDR loans and interest income that would have been recorded had the terms of the loans not been modified was minimal. The Company has not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of September 30, 2019 or December 31, 2018 . 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 classifications of loans reflect 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 credit worthiness, however, such concerns are generally not so pronounced that the Company expects to experience significant loss within 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 which exist in 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 which 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 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 September 30, 2019 and December 31, 2018 : September 30, 2019 Pass Special Substandard Doubtful PCI Total Real estate: Construction and land $ 605,062 $ 2,320 $ 3,185 $ — $ 4,407 $ 614,974 Farmland 16,633 — — — — 16,633 1 - 4 family residential 551,288 1,432 1,978 — 4,612 559,310 Multi-family residential 306,965 — — — — 306,965 Commercial real estate 2,259,962 39,963 29,533 — 97,183 2,426,641 Commercial 1,601,549 51,479 16,090 — 42,138 1,711,256 Mortgage warehouse 233,577 — — — — 233,577 Consumer 17,725 37 216 — 136 18,114 Total $ 5,592,761 $ 95,231 $ 51,002 $ — $ 148,476 $ 5,887,470 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 An analysis of the allowance for loan losses for the nine months ended September 30, 2019 and 2018 and the year ended December 31, 2018 is as follows: Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Nine Months Ended September 30, 2018 Balance at beginning of period $ 19,255 $ 12,808 $ 12,808 Provision charged to earnings 18,021 6,603 5,239 Charge-offs (11,272 ) (197 ) (171 ) Recoveries 239 41 33 Net charge-offs (11,033 ) (156 ) (138 ) Balance at end of period $ 26,243 $ 19,255 $ 17,909 The allowance for loan losses as a percentage of total loans was 0.45% , 0.75% and 0.73% as of September 30, 2019 , December 31, 2018 and September 30, 2018 , respectively. The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. Nine Months Ended September 30, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Provision (recapture) charged to earnings 1,359 910 2,025 13,491 236 18,021 Charge-offs — (157 ) — (10,898 ) (217 ) (11,272 ) Recoveries — 62 — 91 86 239 Net charge-offs — (95 ) — (10,807 ) (131 ) (11,033 ) Balance at end of period $ 3,603 $ 2,790 $ 8,488 $ 11,238 $ 124 $ 26,243 Period-end amount allocated to: Specific reserves 166 — — 1,418 — 1,584 PCI reserves — — — 421 — 421 General reserves 3,437 2,790 8,488 9,399 124 24,238 Total $ 3,603 $ 2,790 $ 8,488 $ 11,238 $ 124 $ 26,243 For the Year Ended December 31, 2018 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 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 period $ 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 For the Nine Months Ended September 30, 2018 Real Estate Construction, 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 552 324 1,726 2,633 4 5,239 Charge-offs — — — (150 ) (21 ) (171 ) Recoveries — — — 33 — 33 Net charge-offs (recoveries) — — — (117 ) (21 ) (138 ) Balance at end of period $ 1,867 $ 1,797 $ 6,136 $ 8,104 $ 5 $ 17,909 Period-end amount allocated to: Specific reserves — — — 378 — 378 PCI reserves — — — 1,302 — 1,302 General reserves 1,867 1,797 6,136 6,424 5 16,229 Total $ 1,867 $ 1,797 $ 6,136 $ 8,104 $ 5 $ 17,909 The Company’s recorded investment in loans as of September 30, 2019 and December 31, 2018 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: September 30, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ 1,850 $ 157 $ 2,983 $ 4,190 $ 59 $ 9,239 Loans collectively evaluated for impairment 625,350 861,506 2,326,475 1,898,505 17,919 5,729,755 PCI loans 4,407 4,612 97,183 42,138 136 148,476 Total $ 631,607 $ 866,275 $ 2,426,641 $ 1,944,833 $ 18,114 $ 5,887,470 December 31, 2018 Real Estate Construction, 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 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 condensed consolidated balance sheets and the related outstanding balances at September 30, 2019 and December 31, 2018 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. September 30, 2019 December 31, 2018 Carrying amount $ 148,055 $ 39,528 Outstanding balance 185,787 49,902 Changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 and 2018 are included in table below. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Balance at beginning of period $ 33,709 $ 7,335 $ 18,747 $ 2,723 Additions — — 18,073 1,459 Reclassifications (to) from nonaccretable 9,309 278 11,195 6,499 Accretion (4,149 ) (820 ) (9,146 ) (3,888 ) Balance at end of period $ 38,762 $ 6,793 $ 38,762 $ 6,793 During the three and nine months ended September 30, 2019 , the Company received cash collections in excess of expected cash flows on PCI loans accounted for individually and not aggregated into loan pools of $28 and $441 , respectively. During the three and nine months ended September 30, 2018 , the Company received cash collections in excess of expected cash flows on PCI loans accounted for individually and not aggregated into loan pools of $1,999 and $3,759 , respectively. Servicing Assets The Company was servicing loans of approximately $241,733 and $71,609 as of September 30, 2019 and 2018 , respectively. A summary of the changes in the related servicing assets are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,793 $ 1,183 $ 1,304 $ 1,215 Servicing asset acquired through acquisition — — 2,382 — Increase from loan sales 534 27 995 204 Servicing asset impairment (188 ) — (188 ) — Amortization charged to income (618 ) (69 ) (972 ) (278 ) Balance at end of period $ 3,521 $ 1,141 $ 3,521 $ 1,141 The estimated fair value of the servicing assets approximated the carrying amount at September 30, 2019 , December 31, 2018 and September 30, 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. 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 September 30, 2019 and December 31, 2018 . |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following table summarizes assets measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: September 30, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Available for sale securities $ — $ 990,274 $ — $ 990,274 Loans held for sale (1) — 8,468 — 8,468 Correspondent interest rate swaps — 7 — 7 Customer interest rate swaps — 5,437 — 5,437 Correspondent interest rate caps and collars — 20 — 20 Commercial loan interest rate floor — 4,225 — 4,225 Financial Liabilities: Correspondent interest rate swaps — 5,909 — 5,909 Customer interest rate caps and collars — 20 — 20 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial Assets: Available for sale securities $ — $ 262,695 $ — $ 262,695 There were no liabilities measured at fair value on a recurring basis as of December 31, 2018 . There were no transfers between Level 2 and Level 3 during the nine months ended September 30, 2019 and 2018 . The following table summarizes assets measured at fair value on a non-recurring basis as of September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of September 30, 2019 Assets: Impaired loans $ — $ — $ 5,571 $ 5,571 Other real estate owned — — 4,625 4,625 As of December 31, 2018 Assets: Impaired loans — — 2,584 2,584 At September 30, 2019 , impaired loans with an allowance had a recorded investment of $5,571 , with $1,584 specific allowance for loan loss allocated. At December 31, 2018 , impaired loans had a carrying value of $2,584 , with $368 specific allowance for loan loss allocated. Other real estate owned consisted of two properties recorded with a fair value of approximately $4,625 at September 30, 2019 . There were no real estate owned properties recorded at fair value at December 31, 2018 . There were no liabilities measured at fair value on a non-recurring basis as of September 30, 2019 or December 31, 2018 . Fair Value of Financial Instruments The Company’s methods of determining fair value of financial instruments in this Note are consistent with its methodologies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , with the exception of securities sold under agreements to repurchase. Please refer to Note 16 in the Company’s Annual Report on Form 10-K for information on these methods. Securities sold under agreements to repurchase: The carrying amount of securities sold under agreements to repurchase is a reasonable estimate of fair value because these borrowings reprice at market rates generally daily. The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of September 30, 2019 and December 31, 2018 were as follows: Fair Value Carrying Level 1 Level 2 Level 3 September 30, 2019 Financial assets: Cash and cash equivalents $ 252,592 $ — $ 252,592 $ — Held to maturity investments 33,119 — 35,177 — Loans held for sale 10,715 — 10,715 — Loans held for investment, mortgage warehouse 233,577 — — 237,945 Loans held for investment 5,654,027 — — 5,681,565 Accrued interest receivable 19,893 — 19,893 — Bank-owned life insurance 80,411 — 80,411 — Servicing asset 3,521 — 3,521 — Other investments 89,795 — 89,795 — Financial liabilities: Deposits $ 5,877,846 $ — $ 5,772,171 $ — Advances from FHLB 752,907 — 778,243 — Accrued interest payable 7,355 — 7,355 — Subordinated debentures and subordinated notes 72,284 — 72,284 — Securities sold under agreement to repurchase 2,787 — 2,787 — December 31, 2018 Financial assets: Cash and cash equivalents $ 84,449 $ — $ 84,449 $ — Loans held for sale 1,258 — 1,258 — Loans held for investment 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 — Other investments 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 — |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk and credit risk and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of derivatives held for customer accommodation or other purposes. The fair value of derivative positions outstanding is included in “other assets” and “accounts payable and accrued expenses” on the accompanying condensed consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying condensed consolidated statements of cash flows. For derivatives not designated as hedging instruments, gains and losses due to changes in fair value are included in noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fair values as of September 30, 2019 were as shown in the table below. The Company did not have hedging or non-hedging derivative instruments as of December 31, 2018 . September 30, 2019 Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floor $ 275,000 $ 4,225 $ — Total derivatives designated as hedging instruments 275,000 4,225 — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 227,438 7 5,909 Interest rate caps and collars 84,211 20 — Commercial customer counterparty: Interest rate swaps 227,438 5,437 — Interest rate caps and collars 84,211 — 20 Total derivatives not designated as hedging instruments 623,298 5,464 5,929 Offsetting derivative assets/liabilities 28 28 Total derivatives $ 898,298 $ 9,717 $ 5,957 Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the three and nine months ended September 30, 2019 was as follows: For the Three Months Ended For the Nine Months Ended Gain recognized in other comprehensive income on cash flow derivative Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) Loss recognized in noninterest income Gain recognized in other comprehensive income on cash flow derivative Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) Gain recognized in noninterest income Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floors $ 413 $ (334 ) $ — $ 2,033 $ (473 ) $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 604 $ — $ — $ 474 Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, floors, caps and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans (one-month LIBOR). In May 2019, the Company entered into a $275,000 notional interest rate floor with a two-year term. The interest rate floor has a purchased floor strike of 2.43% . The purchased option price was $2,665 , which is reflected within “accrued interest receivable and other assets“ in the condensed consolidated statements of cash flows. Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value amounts are included in other assets and other liabilities. The following is a summary of the interest rate swaps outstanding as of September 30, 2019 . The Company did not have interest rate swaps outstanding as of December 31, 2018 . September 30, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 227,438 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (5,902 ) Interest rate caps and collars $ 84,211 2.500% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 20 Correspondent interest rate derivatives: Interest rate swaps - pay fixed/receive floating $ 227,438 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 5,439 Interest rate caps and collars $ 84,211 3.000% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ (20 ) |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended |
Sep. 30, 2019 | |
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 condensed 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 September 30, 2019 and December 31, 2018 : September 30, December 31, 2019 2018 Commitments to extend credit $ 1,909,221 $ 962,436 Standby and commercial letters of credit 33,360 5,431 Total $ 1,942,581 $ 967,867 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. 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 substantially 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. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and accounts payable and accrued expenses, respectively, on the Company’s condensed consolidated balance sheets. The Company does not currently have finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the condensed consolidated statements of income and other comprehensive income. The Company’s leases related primarily to office space and bank branches with remaining lease terms generally ranging from one to 8 years . Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of September 30, 2019 , operating lease ROU assets and liabilities were $15,278 and $16,125 , respectively. The table below summarizes the Company’s net lease cost: Three Months Ended Nine Months Ended Operating lease cost $ 1,157 $ 3,920 Variable lease cost 293 700 Net lease cost $ 1,450 $ 4,620 The table below summarized other information related to the Company’s operating leases: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,399 Weighted average remaining lease term - operating leases, in years 3.9 years Weighted average discount rate - operating leases 1.5 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: September 30, 2019 Lease payments due: Within one year $ 3,908 After one but within two years 3,390 After two but within three years 2,819 After three but within four years 2,586 After four but within five years 1,938 After five years 2,549 Total undiscounted cash flows 17,190 Less: Discount on cash flows (1,065 ) Total lease liability $ 16,125 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the nine months ended September 30, 2019 . As of September 30, 2019 , the Company did not have additional operating leases for office space that were anticipated to commence during the fourth quarter of 2019. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets in the accompanying condensed consolidated balance sheets are summarized as follows: As of September 30, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Assets Impairment Amortization Assets Core deposit intangibles 7.2 years $ 81,769 $ — $ 11,755 $ 70,014 Servicing asset 7.1 years 5,468 188 1,759 3,521 Intangible lease assets 1.7 years 4,764 — 2,936 — 1,828 $ 92,001 $ 188 $ 16,450 $ 75,363 As of December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Assets Amortization Assets 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 For the nine months ended September 30, 2019 and September 30, 2018 , amortization expense related to intangible assets of approximately $8,922 and $3,087 , respectively, was included within amortization of intangibles and other income within the condensed consolidated statements of income. Changes in the carrying amount of goodwill are summarized as follows for the three months ended September 30, 2019 : September 30, 2019 Balance as of December 31, 2018 $ 161,447 Effect of Green acquisition 209,016 Balance as of September 30, 2019 $ 370,463 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits Deposits in the accompanying condensed consolidated balance sheets are summarized as follows: September 30, 2019 December 31, 2018 Noninterest-bearing demand accounts $ 1,473,126 $ 626,283 Interest-bearing demand accounts 373,997 146,969 Savings accounts 87,981 33,147 Limited access money market accounts 2,066,315 1,133,045 Certificates of deposit, greater than $100 1,212,718 392,935 Certificates of deposit, less than $100 663,709 290,049 Total $ 5,877,846 $ 2,622,428 As of September 30, 2019 , the scheduled maturities of certificates of deposit were as follows: Year Amount 2019 $ 519,916 2020 1,092,676 2021 198,091 2022 38,773 2023 26,971 Total $ 1,876,427 The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $168 and $153 as of September 30, 2019 and December 31, 2018 , respectively. Brokered deposits at September 30, 2019 and December 31, 2018 totaled approximately $416,125 and $234,190 , respectively. |
Advances from the Federal Home
Advances from the Federal Home Loan Bank | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Advances from the Federal Home Loan Bank | Advances from the Federal Home Loan Bank Advances from the FHLB totaled $752,907 and $28,019 at September 30, 2019 and December 31, 2018 , respectively. As of September 30, 2019 , the advances were collateralized by a blanket floating lien on certain securities and loans, had a weighted average rate of 1.51% and scheduled to mature on various dates from 2019 to 2034. The Company had the availability to borrow additional funds of approximately $822,980 as of September 30, 2019 . Contractual maturities of FHLB advances at September 30, 2019 were as follows: 2019 $ 225,000 2020 425,000 2021 75,000 2022 27,907 Total $ 752,907 |
Subordinated Debentures and Sub
Subordinated Debentures and Subordinated Notes | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Subordinated Notes | Subordinated Debentures and Subordinated Notes Subordinated Notes Total subordinated notes as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Subordinated notes $ 40,000 $ 5,000 Unamortized debt premium (discount) 2,315 (11 ) Total subordinated notes $ 42,315 $ 4,989 In connection with the Company’s acquisition of Green, the Company assumed $35,000 of 8.50% Fixed-to-Floating Rate Subordinated Notes (the “Notes”) that mature on December 15, 2026. The Notes, which qualify as Tier 2 capital under the Federal Reserve’s capital guidelines, have an interest rate of 8.50% per annum during the fixed-rate period from date of issuance through December 15, 2021. Interest is payable semi-annually on each June 15 and December 15 through December 15, 2021. During the floating rate period from December 15, 2021, but excluding the maturity date or date of earlier redemption, the Notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 6.685% , payable quarterly on each March 15, June 15, September 15 and December 15. The Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Bank. The Company may elect to redeem the Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after December 15, 2021 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the Notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of bankruptcy, insolvency or reorganization. Subordinated Debentures Trust Preferred Securities Total subordinated debentures as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Subordinated debentures $ 33,868 $ 11,702 Debt discount (3,899 ) — Total subordinated debentures $ 29,969 $ 11,702 In connection with the Company’s acquisition of Green, the Company assumed obligations related to the subordinated debentures issued to Patriot Bancshares Capital Trust I and Patriot Bancshares Capital Trust II. A summary of information related to these two issues of subordinated debentures is set forth in the table below: Description Subordinated Debt Owed to Trusts Interest Rate (1) Maturity Date Patriot Bancshares Capital Trust I $ 5,155 3-month LIBOR +1.85%, not to exceed 11.90% April 7, 2036 Patriot Bancshares Capital Trust II $ 17,011 3-month LIBOR +1.80%, not to exceed 11.90% September 15, 2037 (1) The 3-month LIBOR in effect as of September 30, 2019 was 2.1% . Each of the trusts is a capital trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by each trust, provided such trust has funds available for such obligations. The trust preferred securities issued by each of the trusts as of September 30, 2019 may be redeemed at the Company’s option. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. |
Stock-Based and Liability-Class
Stock-Based and Liability-Classified Awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based and Liability-Classified Awards | Stock-Based and Liability-Classified Awards Veritex 2010 Stock Option and Equity Incentive Plan (“2010 Incentive Plan”) The closing of the Green acquisition on January 1, 2019 constituted a change-in-control under the 2010 Incentive Plan. As a result, all unvested awards as of December 31, 2018 were accelerated to fully vest on the close date in accordance with the 2010 Incentive Plan. The Company recognized no stock compensation expense related to the 2010 Incentive Plan three months ended September 30, 2019 . The Company recognized stock compensation expense related to the 2010 Incentive Plan of $2 for the nine months ended September 30, 2019 . The Company recognized stock compensation expense related to the 2010 Incentive Plan of $11 and $21 , respectively, for the three and nine months ended September 30, 2018 . A summary of option activity under the 2010 Incentive Plan for the nine months ended September 30, 2019 and 2018 , and changes during the periods then ended is presented below: 2010 Incentive Plan Non-Performance Based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 305,000 $ 10.16 3.59 years Exercised (11,500 ) 10.48 Outstanding at September 30, 2018 293,500 $ 10.15 2.78 years Options exercisable at September 30, 2018 289,500 $ 10.13 2.75 years Outstanding at January 1, 2019 275,000 $ 10.12 2.39 years $ 3,098 Exercised (17,500 ) 10.24 Outstanding and exercisable at September 30, 2019 257,500 $ 10.28 1.62 years $ 3,699 As of September 30, 2019 , there was no unrecognized stock compensation expense related to non-performance based stock options. As of December 31, 2018 and September 30, 2018 , there was approximately $2 and $4 , respectively, of unrecognized compensation expense related to non-performance based stock options. No restricted stock units were granted or forfeited under the 2010 Incentive Plan during 2019 and no restricted stock units were outstanding as of September 30, 2019 . A summary of the status of the Company’s restricted stock units under the 2010 Incentive Plan as of September 30, 2018 , and changes during the nine months then ended is as follows: 2010 Incentive Plan Nonperformance-based restricted stock units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 24,250 $ 13.19 Vested into shares (23,750 ) 12.14 Forfeited (500 ) 10.85 Outstanding at September 30, 2018 — $ — As of September 30, 2019 and December 31, 2018 , there was no remaining unrecognized compensation expense related to non-vested restricted stock units. As of September 30, 2018 , there was $4 of total unrecognized compensation expense related to unvested 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 for the nine months ended September 30, 2019 and 2018 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 2018 Non-performance based stock options exercised 454 328 Non-performance based restricted stock units vested — 713 Veritex 2014 Omnibus Incentive Plan (“2014 Omnibus Plan”) and Green Acquired Omnibus Plans Accelerated Vesting of 2014 Omnibus Plan Awards In connection with the acquisition of Green, which closed on January 1, 2019 , the Company approved the full acceleration of vesting of all unvested 2014 Omnibus Plan awards on the close date. The consummation of the acquisition constituted a change in control of the Company under the 2014 Omnibus Plan. Under its terms, accelerated vesting upon a change in control is permissible, and the Board approved that all unvested equity awards issued under the 2014 Omnibus Plan would fully vest as of the consummation of the acquisition on January 1, 2019 . The Company accounted for the discretionary vesting of awards as a modification of the original awards. This modification resulted in the accelerated vesting of 133,455 non-performance based restricted stock units, 51,284 performance based restricted stock units and 320,405 non-performance based stock options on January 1, 2019, the modification date. The incremental compensation cost resulting from these modifications was nominal for the three and nine months ended September 30, 2019 . The accelerated vesting of awards on January 1, 2019 resulted in the immediate recognition of $5,535 of stock compensation expense for the nine months ended September 30, 2019 . This stock compensation expense is included in merger and acquisition expenses in the condensed consolidated statements of income. Post-combination Expense of Green Awards In connection with the acquisition of Green and pursuant to the terms of the related definitive agreement, all of Green’s outstanding and unvested equity awards prior to the close date, including stock options and restricted stock units, became fully vested as of the close date. The acceleration of vesting of Green’s restricted stock units according to the terms of the acquisition consisted of a modification of the original awards, with exception of certain awards that had original accelerated vesting terms. The accounting treatment for the outstanding Green awards in the context of the business combination was to allocate the fair market value of Green’s stock options and restricted stock units at the close date attributable to pre-combination service to the aggregate merger consideration. The difference between the fair market value of the replacement options as well as the fully vested restricted stock units and the amount allocable to pre-combination service was considered a post-combination expense to the Company after the close date. The post combination expense to the Company as a result of the business combination was $10,129 , which was immediately expensed in the post-combination financial statements for the nine months ended September 30, 2019 , as there were no further service conditions. This compensation expense is included in merger and acquisition expenses in the condensed consolidated statements of income. 2018 Performance-Based Restricted Stock Units The Company determined in January 2019 that 67% of the performance-based restricted stock units granted during the year ended December 31, 2018, or 12,704 units, should be forfeited in January 2019 based on the performance results of the Company’s total shareholder return (“TSR”) relative to the SNL Micro Cap US Bank Index for the performance period starting on December 31, 2017 and ending on December 31, 2018. 2019 Grants of Restricted Stock Units In January 2019, the Company granted non-performance-based and performance based restricted stock units under the 2014 Omnibus Plan and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (“Veritex (Green) 2014 Plan”). The non-performance-based restricted stock units vest in three or five equal installments on each anniversary of the grant date. There were also non-performance-based restricted stock units granted with no vesting conditions on the grant date. The performance-based restricted stock units granted in January 2019 cliff vest on January 1, 2022 with the performance period starting on December 31, 2018 and ending on December 31, 2021. The vesting percentage is determined based on the Company’s TSR relative to the TSR of 15 peer companies (“Peer Group”) over the performance period. Below is a table showing the range of vesting percentages for the performance-based restricted stock units based on the Company’s TSR percentile rank. Vesting % Below the 24.9 th percentile of Peer Group TSR —% Within the 25 th to 49.9 th percentile of Peer Group TSR 50% Within the 50 th the 74.9 th percentile of Peer Group TSR 100% At or above the 75 th percentile of Peer Group TSR 150% Certain non-performance and performance-based restricted stock units granted under the 2014 Omnibus Plan in January 2019 had terms requiring cash settlement of the awards unless and until the awards were approved by the shareholders of the Company. At the Company’s 2019 annual meeting of shareholders, the Company sought approval from its shareholders to authorize the amendment and restatement of the 2014 Omnibus Plan to increase the aggregate number of shares that are available for grant thereunder, among certain other terms, as well as approval of the 2019 equity awards so they may be settled in shares rather than in cash (the “Shareholder Approval”). Other terms amended in the 2014 Omnibus Plan included allowing the Compensation Committee to delegate to any of the Company’s officers certain limited authority to grant awards under the 2014 Omnibus Plan except to himself or herself. The Compensation Committee of the Board approved the amendment and restatement of the 2014 Omnibus Plan in April 2019, and the Shareholder Approval was received in May 2019. Pursuant to the 2014 Omnibus Plan amendments, the Compensation Committee also delegated to the Chief Executive Officer of the Company the authority to grant time-based restricted stock unit awards or time-based stock option awards representing up to an aggregate 100,000 shares, which are to be ratified by the Compensation Committee after the grant date. The Chief Executive Officer may not grant to any single individual (a) time-based stock option awards to any representing an aggregate of more than 10,000 shares or (b) time-based restricted stock unit awards representing an aggregate of more than 15,000 shares. Awards granted pursuant to this delegation of authority may have vesting periods of up to 5 years , as determined by the Chief Executive Officer. Given the requirement to settle the 2019 equity awards in cash until Shareholder Approval was obtained, the Company accounted for these awards as liability-classified awards and measured them at fair value through the date of Shareholder Approval. On the date of Shareholder Approval, known as the modification date, the Company reclassified the liability-classified awards to equity awards at fair value. A Monte Carlo simulation was used to estimate the fair value of performance-based restricted stock units on the grant date that include a market condition based on the Company’s TSR relative to its Peer Group, which determines the eligible number of restricted stock units to vest. A similar Monte Carlo valuation was also obtained on the date of Shareholder Approval, when the awards were reclassified from liability to equity awards. 2019 Grant of Stock Options and Tandem Stock Appreciation Rights In January 2019, the Company granted non-performance options under the 2014 Omnibus Plan and Veritex (Green) 2014 Plan that vest in three equal installments on each anniversary of the grant date. 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 nine months ended September 30, 2019 and 2018 : Nine Months Ended September 30, 2019 2019 2018 Dividend yield 1.87% to 2.01% 0.00% Expected life 5.0 to 7.51 years 5.0 to 7.5 years Expected volatility 29.13% to 29.65% 27.87% to 37.55% Risk-free interest rate 1.72% to 2.51% 1.06% to 2.94% The expected life is based on the 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. 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. In addition, in January 2019 the Company granted certain non-performance based stock options and tandem stock appreciation rights ("SARs"). The terms of the SARs provided that the SARs would become effective only if the Board and/or the shareholders of the Company failed to approve the issuance of shares with respect to the corresponding non-performance based stock options. In May 2019, the non-performance based stock options were approved by an affirmative vote of the Board and by shareholders at the Company's 2019 annual meeting of shareholders, at which time the SARs automatically became null and void in accordance with their terms. The corresponding non-performance based stock options will become exercisable in accordance with the vesting schedules set forth in each award agreement, which range between three and five years. Stock Compensation Expense and Liability Award Compensation Expense Stock compensation expense for non-vested equity awards as of September 30, 2019 under the 2014 Omnibus Plan was approximately $1,054 and $1,691 for the three and nine months ended September 30, 2019 . The Company also incurred accelerated stock compensation expense of $5,533 for awards granted under the 2014 Omnibus Plan before January 1, 2019 and $1,418 related to non-performance based restricted stock units granted in January 2019 with no vesting conditions for which the stock compensation is included in merger and acquisition expenses in the condensed consolidated statements of income during the nine months ended September 30, 2019 . For the three and nine months ended September 30, 2018 , the Company recognized $928 and $3,054 in stock compensation expense. Stock compensation expense for options and restricted stock unit awards granted under the Veritex (Green) 2014 Plan was approximately $376 and $1,147 for the three and nine months ended September 30, 2019 , excluding the post-combination stock compensation expense of $10,129 associated with all of Green’s fully vested replacement awards discussed above in this Note. There was no compensation expense for liability-classified awards under the 2014 Omnibus Plan during the three months ended September 30, 2019 and $1,403 for the nine months ended September 30, 2019 . As noted above, in May 2019, following the Shareholder Approval, certain awards were modified and the classification of the awards was modified from liability to equity, resulting in a reclassification of $1,403 to additional paid-in capital in the second quarter of 2019. 2014 Omnibus Plan A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Non-performance Based Stock Options Equity Awards Liability Awards Shares Weighted Weighted Aggregate Intrinsic Value Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2018 332,706 $ 22.71 8.86 years — $ — Granted 125,593 27.95 — — Forfeited (2,076 ) 27.59 — — Exercised (1,983 ) 14.95 — — Outstanding at September 30, 2018 454,240 $ 24.12 8.42 years $ — Options exercisable at September 30, 2018 122,329 $ 18.38 7.29 years — $ — Outstanding at January 1, 2019 449,520 $ 24.47 8.24 years — $ — Granted 166,971 23.91 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633 ) 21.38 Forfeited (28,240 ) 25.82 — — Exercised (12,610 ) 15.42 — — Outstanding at September 30, 2019 829,274 $ 23.50 8.42 years $ 632 — $ — $ — Options exercisable at September 30, 2019 417,183 $ 24.59 7.53 years $ (135 ) — $ — Weighted average fair value of options granted during the period $ 22.38 $ — As of September 30, 2019 , December 31, 2018 and September 30, 2018 , there was $1,296 , $2,103 and $2,330 of total unrecognized compensation expense related to equity options awarded under the 2014 Omnibus Plan, respectively. As of September 30, 2019 , there was no unrecognized compensation expense related to liability options awarded under the 2014 Omnibus Plan. The unrecognized compensation expense at September 30, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.62 years . A summary of the status of the Company’s non-performance-based restricted stock units under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Non-performance Based Restricted Stock Units Equity Awards Liability Awards Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 150,722 $ 13.29 — $ — Granted 54,650 29.29 — — Vested into shares (39,311 ) 27.19 — — Forfeited (3,929 ) 26.85 — — Outstanding at September 30, 2018 162,132 $ 23.85 — $ — Outstanding at January 1, 2019 133,455 $ 19.67 — $ — Granted 104,827 23.09 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739 ) 21.38 Vested into shares (229,031 ) 22.06 — — Outstanding at September 30, 2019 174,990 $ 21.55 — $ — A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Performance Based Restricted Stock Units Equity Awards Liability Awards Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 53,594 $ 8.72 — $ — Granted 40,269 27.59 — — Vested into shares (26,623 ) 18.83 — — Forfeited (898 ) 27.59 — — Outstanding at September 30, 2018 66,342 $ 25.56 — $ — Outstanding at January 1, 2019 63,988 $ 21.28 — $ — Granted 38,360 22.47 32,249 21.38 Conversion to equity award 32,249 21.38 (32,249 ) 21.38 Vested into shares (51,284 ) 25.31 — — Forfeited (17,827 ) 21.38 — — Outstanding at September 30, 2019 65,486 $ 22.73 — $ — As of September 30, 2019 , December 31, 2018 and September 30, 2018 there was $2,484 , $3,430 and $3,928 of total unrecognized compensation related to equity restricted stock units awarded under the 2014 Omnibus Plan, respectively. As of September 30, 2019 , there was no of unrecognized compensation related to liability restricted stock units awarded under the 2014 Omnibus Plan. The unrecognized compensation expense at September 30, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.3 years . A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan during the nine months ended September 30, 2019 and 2018 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 2018 Non-performance-based stock options exercised 335 54 Non-performance-based restricted stock units vested 5,669 1,173 Performance-based restricted stock units vested 1,089 745 Veritex (Green) 2014 Plan A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of September 30, 2019 , and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Forfeited (10,217 ) 12.21 Exercised (82,451 ) 13.43 — Outstanding at September 30, 2019 423,903 $ 18.85 8.01 years $ 2,293 Options exercisable at September 30, 2019 213,427 $ 16.36 6.89 years $ 1,686 Weighted average fair value of options granted during the period $ 24.22 As of September 30, 2019 , there was $1,198 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at September 30, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.3 years . A summary of the status of the Company’s non-performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at September 30, 2019 116,250 $ 21.38 A summary of the status of the Company’s performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 26,145 21.38 Forfeited (508 ) 21.38 Outstanding at September 30, 2019 25,637 $ 21.38 As of September 30, 2019 , there was $2,243 of total unrecognized compensation related to outstanding performance based restricted stock units awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 2.3 years . A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the Veritex (Green) 2014 Plan during the nine months ended September 30, 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 Non-performance-based stock options exercised $ 2,088 Green Bancorp Inc. 2010 Stock Option Plan and Green Bancorp Inc. 2006 Stock Option Plan In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed two stock and incentive plans in the Green acquisition, the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”) and the Green Bancorp Inc. 2006 Stock Option Plan (“Green 2006 Plan”). For the Green 2010 Plan and the Green 2006 Plan, 768,628 and 11,850 of stock options, respectively, were converted in the acquisition of Green during the nine months ended September 30, 2019 . No stock options or restricted stock units were awarded from these plans during the nine months ended September 30, 2019 . During the nine months ended September 30, 2019 , 100,544 stock options were exercised from the Green 2010 Plan and 11,850 stock options were exercised from the Green 2006 Plan. As of September 30, 2019 , 661,843 exercisable stock options remain outstanding in the Green 2010 Plan and no exercisable stock options remain outstanding in the Green 2006 Plan. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 7,595 $ 1,448 $ 16,953 $ 7,309 Effective tax rate 21.7 % 13.9 % 21.6 % 19.8 % In connection with the acquisition of Green, the Company assumed a liability of $2,155 for an uncertain tax position. This liability would, if recognized in full, affect the Company’s effective tax rate. The Company did not have any new uncertain tax positions as of September 30, 2018 or any new uncertain tax positions as of September 30, 2019 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
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 the ultimate liability, if any, resulting from these actions will not materially affect the financial position or results of operations of the Company. Qualified Affordable Housing Investment As of September 30, 2019 and December 31, 2018 , the balance of the investment for qualified affordable housing projects was $3,385 and $3,663 , respectively. This balance is reflected in other investments on the condensed consolidated balance sheets. The total unfunded commitment related to the investment in certain qualified housing projects totaled $1,554 and $2,510 as of September 30, 2019 and December 31, 2018 , respectively. The Company expects to fulfill these commitments during the year ended 2034. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained Earnings 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 can lead to the initiation of certain mandatory and possibly 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 Company must meet specific capital guidelines that involve quantitative measures of the Company’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, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 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 September 30, 2019 and December 31, 2018 that the Company and the Bank met all capital adequacy requirements to which they were subject. As of September 30, 2019 and December 31, 2018 , 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 below. There are no conditions or events since September 30, 2019 that management believes have changed the Company’s categorization as “well capitalized.” 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 September 30, 2019 Total capital (to risk-weighted assets) Company $ 850,136 12.26 % $ 554,738 8.0 % n/a n/a Bank 831,796 12.00 % 554,531 8.0 % $ 693,163 10.0 % Tier 1 capital (to risk-weighted assets) Company 780,700 11.26 % 416,004 6.0 % n/a n/a Bank 804,675 11.61 % 415,853 6.0 % 554,470 8.0 % Common equity tier 1 to risk-weighted assets Company 749,913 10.82 % 311,886 4.5 % n/a n/a Bank 804,675 11.61 % 311,890 4.5 % 450,507 6.5 % Tier 1 capital (to average assets) Company 780,700 10.33 % 302,304 4.0 % n/a n/a Bank 804,675 10.64 % 302,509 4.0 % 378,137 5.0 % 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 % Dividend Restrictions — Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. The Basel III Capital Rules further limit the amount of dividends that may be paid by the Bank. Dividends of $6,713 and $20,312 , or $0.125 per outstanding share on the applicable record date, were paid by the Bank to the Company during the three and nine months ended September 30, 2019 . No dividends were paid by the Bank to the Company during the year ended December 31, 2018 . |
Branch Assets and Liabilities H
Branch Assets and Liabilities Held For Sale | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Branch Assets and Liabilities Held For Sale | Branch Assets and Liabilities Held for Sale Upon the closing of the Green acquisition, the Company acquired branch assets held for sale and assumed branch liabilities held for sale pursuant to a purchase and assumption agreement entered into by Green with Keystone Bank, N.A. ("Keystone") prior the acquisition date, pursuant to which Green had agreed to sell certain assets and deposits associated with one branch in the Austin metropolitan market. On May 10, 2019, the Company completed the sale of these assets and liabilities to Keystone, resulting in a cash settlement payment of $7,153 from Keystone and the recognition of a loss on the sale of $474 reported in merger and acquisition expense on the condensed consolidated statements of income for the nine months ended September 30, 2019. The completion of the sale resulted in the Company exiting the Austin metropolitan market. There were no branch assets and liabilities held for sale as of September 30, 2019 or December 31, 2018 . |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Green Bancorp, Inc. On January 1, 2019 , the Company completed its acquisition of Green. 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 Green exceeded the provisional value of the net assets acquired, goodwill of $209,016 related to the acquisition was recorded. 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. Consideration Under the terms of the definitive agreement for the acquisition, each outstanding share of Green common stock and Green’s outstanding restricted stock units that accelerated vesting 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. In addition, Green’s options that accelerated vesting at maximum levels on the close date were exchanged for an option to purchase Veritex common stock at the same 0.79 conversion rate. The Company issued 497,594 shares of Veritex common stock in regards to Green’s fully vested restricted stock units. In addition, the Company was obligated to replace Green’s unvested options with 1,085,256 fully vested Veritex options. The following table presents the fair value of each class of consideration transferred at the close date. Equivalent shares of Veritex common stock issued in exchange for Green outstanding shares 29,532,957 Veritex common stock price per share as of close date $ 21.38 Fair value of Veritex common stock issued in exchange for Green outstanding shares $ 631,415 Fair value of Green equity-based awards attributed to pre-combination service 12,484 Cash consideration to Green shareholders 10 Total consideration transferred $ 643,909 Fair Value The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities will end at the earlier of (i) 12 months from the date of the acquisition of Green or (ii) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. Provisional estimates for deferred and current taxes have been recorded for the acquisition while the Company finalizes deferred reconciliation procedures. The Company does not expect any significant differences from estimated values upon completion of the valuations. Estimated fair values of the assets acquired and liabilities assumed in this transaction as of the closing date are as follows: Estimate at Measurement Period Adjustments Revised Fair Value Assets Cash and cash equivalents $ 112,720 $ — $ 112,720 Investment securities 661,032 (240 ) 660,792 Other securities 40,287 — 40,287 Loans held for sale 9,360 — 9,360 Loans held for investment 3,245,492 (244 ) 3,245,248 Accrued interest receivable 11,673 (278 ) 11,395 Bank owned life insurance 56,841 — 56,841 Bank premises, furniture and equipment 39,426 (2,571 ) 36,855 Investment in unconsolidated subsidiaries 666 — 666 Intangible assets 65,718 — 65,718 Goodwill 206,821 2,195 209,016 Other assets 12,245 404 12,649 Right of use asset 9,373 — 9,373 Deferred Taxes 11,535 395 11,930 Current taxes 1,799 13 1,812 Branch assets held for sale 85,307 — 85,307 Total assets $ 4,570,295 $ (326 ) $ 4,569,969 Liabilities Non-interest-bearing deposits $ 825,364 $ — $ 825,364 Interest-bearing deposits 1,300,825 — 1,300,825 Certificates and other time deposits 1,346,915 — 1,346,915 Accounts payable and other accrued expenses 26,587 (326 ) 26,261 Lease liability 9,373 — 9,373 Accrued interest payable 5,181 — 5,181 Securities sold under agreements to repurchase 3,226 — 3,226 Advances from Federal Home Loan Bank 300,000 — 300,000 Subordinated debentures and subordinated notes 56,233 — 56,233 Branch liabilities held for sale 52,682 — 52,682 Total liabilities $ 3,926,386 $ (326 ) $ 3,926,060 Acquisition-related Expenses For the three and nine months ended September 30, 2019 , the Company incurred $1,035 and $38,042 of pre-tax merger and acquisition expenses, respectively, related to the Green acquisition. The amounts incurred during the three months ended September 30, 2019 primarily consist of data processing expenses as a result of core system conversion and severance payments related to the acquisition. The amounts incurred during the nine months ended September 30, 2019 primarily consist of stock-based compensation due to the accelerated vesting of outstanding restricted stock units and stock options of $17,082 , severance and retention payments of $9,491 , legal and professional fees of $5,297 and data processing expenses of $1,824 as a result of the core system conversion. The Company incurred $2,692 and $3,104 of acquisition expenses related to the Green acquisition for the three and nine months ended September 30, 2018 , respectively. Acquisition expenses are included in merger and acquisition expenses on the condensed 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 Green. 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 Green on January 1, 2019 : PCI loans Other acquired loans Total Acquired Loans Real Estate $ 132,006 $ 1,783,938 $ 1,915,944 Commercial 50,057 1,099,012 1,149,069 Mortgage warehouse — 166,850 166,850 Consumer 184 13,201 13,385 Total fair value 182,247 3,063,001 3,245,248 Contractual principal balance $ 242,013 $ 3,093,047 $ 3,335,060 The following table presents additional information about PCI loans acquired from Green on January 1, 2019 : PCI Loans Contractually required principal and interest $ 277,773 Non-accretable difference 75,656 Cash flows expected to be collected $ 202,117 Accretable difference 19,870 Fair value of PCI loans $ 182,247 Intangible Assets The acquisition resulted in a core deposit intangible of $65,718 , which will be amortized on a straight line basis over the estimated life of 8 years. Branch assets and liabilities held for sale Branch assets and liabilities held for sale as of the close date are valued at fair value less cost to sell. The following table discloses the fair value information about branch assets and liabilities that met the definition of held for sale on January 1, 2019 : January 1, 2019 Assets Cash and cash equivalents $ 392 Loans 78,366 Bank premises, furniture and equipment 19 Intangible assets 6,013 Other assets 517 Total assets $ 85,307 Liabilities Noninterest-bearing deposits $ 52,319 Accounts payable and accrued expenses 40 Accrued interest payable and other liabilities 1 323 Total liabilities $ 52,682 1 Accrued interest payable and other liabilities includes $90 in expected selling costs. Certificates and other time deposits The Green acquisition resulted in a premium on time deposits of $7,318 , which will be accreted on a straight line basis over the contractual lives of certificates and other time deposits, or an estimated weighted average life of 1.7 years. Subordinated debt and subordinated debentures The Green acquisition resulted in a premium on subordinated debt of $3,134 and a discount on subordinated debentures of $4,066 , which will be accreted/amortized on a straight line basis over the estimated life of 2 years and 17.5 years, respectively. Supplemental Pro Forma Information (unaudited) The following table presents supplemental pro forma information for the nine months ended September 30, 2018 as if the Green acquisition was completed as of January 1, 2018. The pro forma results combine the historical results of Green into the Company's condensed consolidated statements of income, including the impact of certain purchase accounting adjustments, including loan and investment discount accretion and intangible assets amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2018: Net Interest Income $ 200,821 Net Income 78,359 Basic earnings per share $ 1.45 Diluted earnings per share 1.42 Revenues and earnings of the acquired company since the acquisition date have not been disclosed as Green was merged into the Company and separate financial information is not readily available. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank, its wholly-owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at September 30, 2019 and December 31, 2018 , condensed consolidated results of operations for the three and nine months ended September 30, 2019 and 2018 , condensed consolidated stockholders’ equity for the three and nine months ended September 30, 2019 and 2018 and condensed consolidated cash flows for the nine months ended September 30, 2019 and 2018 . Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities and Exchange Commission on February 27, 2019. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
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 an 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 Company’s prior year financial statements were reclassified to conform to the current presentation, including (i) the reclassification of dividend income from other noninterest income into interest on other investments of $102 and $427 for the three and nine months ended September 30, 2018 , respectively, in order to align with industry peers for comparability purposes and (ii) the reclassification of $2,692 and $4,070 from professional and regulatory fees to merger and acquisition expense on the condensed consolidated statements of income for the three and nine months ended September 30, 2018 , respectively. |
Earnings Per Share | Earnings Per Share |
Certain Purchased Loans | Certain Purchased Loans The Company purchases individual loans and groups of loans, through both acquisitions of other banks and the normal course of its operations, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired (“PCI”) loans are recorded at fair value at acquisition in a business combination, such that there is no carryover of the seller’s allowance for loan losses. After consummation of the acquisition, losses are recognized by an increase in the provision for loan losses. These PCI loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. On the date of acquisition, the Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of carrying value are recorded as interest income over the estimated life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, except for present value changes solely due to changes in timing of cash flows, an impairment 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. |
Derivative Financial Instruments | Derivative Financial Instruments The Company has entered into certain derivative instruments pursuant to a customer accommodation program under which the Company enters into an interest rate swap, floor, cap or collar agreement with a commercial customer and an agreement with offsetting terms with a correspondent bank. These derivative instruments are not designated as accounting hedges and the changes in net fair value are recognized in noninterest income or expense and the fair value amounts are included in other assets and other liabilities. Interest Rate Swap, Floor, Cap and Collar Agreements Designated as Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, floors, caps and collars to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. The entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The Company assesses the “effectiveness” of hedging derivatives on the date an arrangement was entered into and on a prospective basis at least quarterly. Hedge “effectiveness” is determined by the extent to which changes in the fair value of a derivative instrument offset changes in the fair value, cash flows or carrying value attributable to the risk being hedged. If the relationship between the change in the fair value of the derivative instrument and the change in the hedged item falls within a range considered to be the industry norm, the hedge is considered “highly effective” and qualifies for hedge accounting. A hedge is “ineffective” if the relationship between the changes falls outside the acceptable range. In that case, hedge accounting is discontinued on a prospective basis. The time value of the option is excluded from the assessment of effectiveness and is recognized in earnings using a straight-line amortization method over the life of the hedge arrangement. |
Loans Held-for-Sale | Loans Held-for-Sale Loans are classified as held-for-sale when management has positively determined that the loans will be sold in the foreseeable future and the Company has the ability to do so. The Company’s held-for-sale loans typically consist of certain government guaranteed loans or mortgage loans. The classification may be made upon origination or subsequent to origination or purchase. Once a decision has been made to sell loans not previously classified as held-for-sale, such loans are transferred into the held-for-sale classification and carried at the lower of cost or estimated fair value on an individual loan basis, except for those held-for-sale loans for which the Company elects to use the fair value option. The fair value of loans held-for-sale is based on commitments from investors or prevailing market prices, For the Company’s accounting policy on loans held-for-sale for which the fair value option is not elected, refer to Note 1 in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . Gain on Sale of Mortgage Loans Held for Sale |
Fair Value Option | Fair Value Option On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. Changes in fair value for instruments using the fair value option are recorded in noninterest income. |
Gain on Sale of Guaranteed Portion of SBA Loans | Gain on Sale of Guaranteed Portion of SBA Loans The Company originates loans to customers under government guaranteed programs that generally provide for guarantees of 50% to 90% of each loan, subject to a maximum guaranteed amount. The Company can sell the guaranteed portion of the loan in an active secondary market and retains the unguaranteed portion in its portfolio. All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 860, Transfers and Servicing , requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase |
Securities Held to Maturity | Securities Held-to-Maturity Securities classified as held-to-maturity are carried at cost, adjusted for the amortization of premiums and the accretion of discounts. The Company has the positive intent, and the ability, to hold these assets until their respective maturities. |
Goodwill | Goodwill The Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the goodwill below its carrying amount, in accordance with ASC 350-20. During the first quarter of 2019, the Company changed its annual goodwill impairment testing date from December 31 to October 31. The Company believes that the new date is preferable as it provides additional time prior to the Company’s fiscal year end to complete the annual goodwill impairment test, especially in the event the Company pursues potential future acquisitions or experiences growth. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to the Company’s previously issued financial statements. There were no impairments of goodwill recorded during the three and nine months ended September 30, 2019 and 2018 . |
Liability Classified Awards | Liability-Classified Awards The fair value of a liability award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability awards are recorded over the vesting period of the award. Changes in the fair value of liability awards that occur during the requisite service period are recognized as compensation cost over that period. The percentage of the fair value that is accrued as compensation cost at the end of each period equals the percentage of the requisite service that has been rendered at that date. Changes in the fair value of a liability award that occur after the end of the requisite service period are recognized as compensation cost in the period in which the changes occur. Any difference between the amount for which a liability award is settled and its fair value at the settlement date is an adjustment of compensation cost in the period of settlement. Compensation cost for liability awards is recorded in salaries and employee benefits and the associated liability is recorded in accounts payable and accrued expenses. For liability to equity award modifications, the aggregate amount of compensation cost recognized is the fair value based measure of the award on the modification date. On the modification date, the Company reclassifies the previously recorded share-based compensation liability to additional paid-in capital. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards FASB Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”), requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-11, Targeted Improvements . 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 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 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. The Company’s operating leases relate primarily to office space and bank branches. Right-of-use (“ROU”) assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives, deferred rent and prepaid rent. Operating lease expense, which consists of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $18,705 and an operating lease liability of $18,753 on January 1, 2019, with no impact on the consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability amounts recorded upon implementing ASU 2016-02 include the ROU asset and lease liability acquired/assumed from Green. Refer to Note 19 - Business Combinations for additional information. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the condensed consolidated balance sheets. See Note 9 - Leases for additional information. Recent Accounting Pronouncements ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”) eliminates Step 2 from the goodwill impairment test. 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 Step 2 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, which is not expected to have a significant impact on the consolidated financial statements. 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, ASU 2016-13 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 ASU 2016-13 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. The Company expects ASU 2016-13 to have a significant impact on the Company’s accounting policies, internal control over financial reporting and footnote disclosures. The Company’s working group that includes individuals from various functional areas continues to make progress in accordance with the implementation plan for adoption of the standard. For loans held for investment, early implementation activities focused on data capture and portfolio segmentation, which were substantially completed during the third quarter of 2019. The Company has developed new expected credit loss estimation models. Depending on the nature of each identified segment of financial assets with similar risk characteristics, the Company currently plans on implementing a discounted cash flow method or a loss-rate method to estimate expected credit losses on non-purchased credit deteriorated loans. The Company also plans to use peer historical loss data to supplement its own limited historical loss data. Incorporating reasonable and supportable forecasts of economic conditions into the estimate of expected credit losses will require significant judgment, such as selecting economic variables and forecast scenarios as well as determining the appropriate length of the forecast horizon. Management will estimate credit losses over a selected forecast period and revert to long term historical loss experience over the remaining contractual life of the loans. Management will select economic variables it believes to be most relevant based on the correlation of an economic factor to losses of each loan segment, which will likely include forecasted levels of employment, pricing indexes, and gross domestic product. Management currently intends to leverage economic projections from a reputable and independent third party to develop its reasonable and supportable forecasts over the forecast period. Other internal and external indicators of economic forecasts will also be considered by management when developing the forecast metrics. The Company is still finalizing the final loss model to be utilized for purchase credit deteriorated loans and held-to-maturity debt securities. Additionally, the Company’s primary expected loss model is being validated during the fourth quarter of 2019. The ultimate impact of ASU 2016-13 will depend on the composition of the portfolio and economic conditions and forecasts at the time of adoption. It could also be subject to further regulatory or accounting guidance and other management validation and judgments. Based on our loan portfolio at September 30, 2019 and management’s current expectation of future economic conditions, the allowance for credit losses as a percentage of total loans is expected to increase from 0.45% to between 1.15% and 1.35% as of the date of adoption. This estimated impact includes additional provision required on recently acquired loans that have not required a provision under the incurred loss model and the impact of transitioning of loans previously accounted for under subtopic ASC 310-30 to the purchased credit deteriorated model in ASC 326. The transition to the purchased credit deteriorated model will result in adding our estimate of expected credit losses on such loans to both a) the amortized cost basis of those assets and b) the allowance for credit losses. We do not expect a material impact on the net carrying amount of these assets as a result of the transition. Additionally, this estimated impact at adoption also includes certain qualitative adjustments to the allowance for credit losses. The Company is still assessing the estimated impact to the allowance for credit losses as it relates to the Company’s held-to-maturity debt securities, but the Company does not expect a material impact to the allowance. The Company is currently running parallel computations in 2019 and continues to evaluate the final impact of adoption of this ASU. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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 three and nine months ended September 30, 2019 and 2018 : Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands except per share amounts) Earnings (numerator) Net income $ 27,405 $ 8,935 $ 61,688 $ 29,516 Shares (denominator) Weighted average shares outstanding for basic EPS 52,915 24,176 53,721 24,151 Dilutive effect of employee stock-based awards 953 437 912 436 Adjusted weighted average shares outstanding 53,868 24,613 54,633 24,587 EPS: Basic $ 0.52 $ 0.37 $ 1.15 $ 1.22 Diluted $ 0.51 $ 0.36 $ 1.13 $ 1.20 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Nine Months Ended September 30, 2019 2018 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 65,897 $ 19,939 Cash paid for income taxes 13,400 6,025 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability upon adoption of ASC 842 $ 9,380 $ — Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 788 — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital (48 ) — Net foreclosure of other real estate owned and repossessed assets 4,625 8 Reclassification of branch assets held for sale to loans held for investment 26,171 — Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits 1,173 — Non-cash assets acquired in business combination Investment securities $ 660,792 $ — Non-marketable equity securities 40,287 — Loans held for sale 9,360 — Loans held for investment 3,245,248 (4,050 ) Accrued interest receivable 11,395 — Bank-owned life insurance 56,841 — Bank premises, furniture and equipment 36,855 1,162 Investment in unconsolidated subsidiaries 666 — Intangible assets, net 65,718 (956 ) Goodwill 209,016 1,995 Other assets 12,649 1,806 Right of use asset 9,373 — Deferred taxes 11,930 — Current taxes 1,812 — Assets held for sale 85,307 — Total assets $ 4,457,249 $ (43 ) Non-cash liabilities assumed in business combination Non-interest-bearing deposits $ 825,364 $ 303 Interest-bearing deposits 1,300,825 — Certificates and other time deposits 1,346,915 — Accounts payable and accrued expenses 26,261 — Lease liability 9,373 — Accrued interest payable and other liabilities 5,181 (260 ) Securities sold under agreements to repurchase 3,226 — Advances from Federal Home Loan Bank 300,000 — Subordinated debentures and subordinated notes 56,233 — Liabilities held for sale 52,682 — Total liabilities $ 3,926,060 $ 43 |
Debt Securities (Tables)
Debt Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, and the fair value of available for sale and held to maturity securities are as follows: September 30, 2019 Amortized Gross Gross Fair Value Available for sale Corporate bonds $ 77,005 $ 1,909 $ 90 $ 78,824 Municipal securities 75,112 3,982 — 79,094 Mortgage-backed securities 338,144 10,175 59 348,260 Collateralized mortgage obligations 398,665 9,135 253 407,547 Small Business Administration ("SBA") guaranteed securities 73,751 2,798 — 76,549 $ 962,677 $ 27,999 $ 402 $ 990,274 Held to maturity Mortgage-backed securities $ 10,540 $ 661 $ — $ 11,201 Municipal securities 22,579 1,397 — 23,976 $ 33,119 $ 2,058 $ — $ 35,177 The Company reassessed the classification of certain investments and, effective January 1, 2019, the Company transferred $4,758 of municipal securities and $3,045 of mortgage-backed securities from available for sale to held to maturity at fair value. The related unrealized gain was minimal. No gain or loss was recorded at the time of the transfer. December 31, 2018 Amortized Gross Gross 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 |
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 months or more: September 30, 2019 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for sale Corporate bonds $ 5,591 $ 83 $ 3,786 $ 7 $ 9,377 $ 90 Mortgage-backed securities 1,860 7 5,615 52 7,475 59 Collateralized mortgage obligations 22,395 253 — — 22,395 253 $ 29,846 $ 343 $ 9,401 $ 59 $ 39,247 $ 402 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 Municipal securities 16,043 92 10,428 246 26,471 338 Corporate bonds 6,689 134 — — 6,689 134 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 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity | September 30, 2019 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,897 5,090 — — Due from five years to ten years 68,614 70,271 1,209 1,225 Due after ten years 78,606 82,557 21,370 22,751 152,117 157,918 22,579 23,976 Mortgage-backed securities and collateralized mortgage obligations 736,809 755,807 10,540 11,201 SBA guaranteed securities 73,751 76,549 — — $ 962,677 $ 990,274 $ 33,119 $ 35,177 December 31, 2018 Available for Sale Amortized Fair 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 and collateralized mortgage obligations 190,023 186,810 Asset-backed securities 492 492 $ 266,404 $ 262,695 |
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 gains and losses for the nine months ended September 30, 2019 and 2018 were as follows: Nine Months Ended September 30, 2019 2018 Proceeds from sales $ 254,397 $ 30,961 Gross realized gains 522 335 Gross realized losses 1,936 357 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Summary of Loans in the Accompanying Consolidated Balance Sheets | The outstanding balance represents the total amount owed, including accrued but unpaid interest, and any amounts previously charged off. September 30, 2019 December 31, 2018 Carrying amount $ 148,055 $ 39,528 Outstanding balance 185,787 49,902 Changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2019 and 2018 are included in table below. Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Balance at beginning of period $ 33,709 $ 7,335 $ 18,747 $ 2,723 Additions — — 18,073 1,459 Reclassifications (to) from nonaccretable 9,309 278 11,195 6,499 Accretion (4,149 ) (820 ) (9,146 ) (3,888 ) Balance at end of period $ 38,762 $ 6,793 $ 38,762 $ 6,793 Loans held for investment in the accompanying condensed consolidated balance sheets are summarized as follows: September 30, December 31, Loans held for investment: Real estate: Construction and land $ 614,974 $ 324,863 Farmland 16,633 10,528 1 - 4 family residential 559,310 297,917 Multi-family residential 306,965 51,285 Commercial real estate 2,426,641 1,103,032 Commercial 1,711,256 760,772 Mortgage warehouse 233,577 — Consumer 18,114 7,112 5,887,470 2,555,509 Deferred loan fees 134 (15 ) Allowance for loan losses (26,243 ) (19,255 ) Total loans held for investment $ 5,861,361 $ 2,536,239 |
Schedule of Non-Accrual Loans | Non-accrual loans aggregated by class of loans, as of September 30, 2019 and December 31, 2018 , were as follows: Non-Accrual Loans September 30, December 31, Real estate: Construction and land $ 1,850 $ 2,399 Farmland — — 1 - 4 family residential 1,188 — Multi-family residential — — Commercial real estate 2,859 2,575 Commercial 4,190 19,769 Mortgage warehouse — — Consumer 85 2 Total $ 10,172 $ 24,745 |
Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans | An age analysis of past due loans, aggregated by class of loans, as of September 30, 2019 and December 31, 2018 , is as follows: September 30, 2019 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 $ 850 $ — $ 1,896 $ 2,746 $ 607,821 $ 4,407 $ 614,974 $ 47 Farmland — — — — 16,633 — 16,633 — 1 - 4 family residential 138 3,168 1,156 4,462 550,236 4,612 559,310 482 Multi-family residential — — — — 306,965 — 306,965 — Commercial real estate 4,927 23,165 1,078 29,170 2,300,288 97,183 2,426,641 398 Commercial 3,851 435 3,838 8,124 1,660,994 42,138 1,711,256 1,129 Mortgage warehouse — — — — 233,577 — 233,577 — Consumer 176 39 223 438 17,540 136 18,114 138 Total $ 9,942 $ 26,807 $ 8,191 $ 44,940 $ 5,694,054 $ 148,476 $ 5,887,470 $ 2,194 (1) Loans 90 days past due and still accruing excludes $30,294 of PCI loans as of September 30, 2019 . 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 — Total $ 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 . |
Summary of Impaired Loans, Including Purchased Credit Impaired Loans and TDRs | Impaired loans and TDRs at September 30, 2019 and December 31, 2018 are summarized in the following tables. September 30, 2019 (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 $ 1,850 $ 184 $ 1,666 $ 1,850 $ 166 $ 1,989 Farmland — — — — — — 1 - 4 family residential 157 157 — 157 — 158 Multi-family residential — — — — — — Commercial real estate 2,983 2,983 — 2,983 — 3,210 Commercial 4,190 285 3,905 4,190 1,418 4,352 Consumer 59 59 — 59 — 60 Total $ 9,239 $ 3,668 $ 5,571 $ 9,239 $ 1,584 $ 9,769 (1) Loans reported exclude PCI loans. 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. |
Schedule of Loans Modified as TDRs | During the nine months ended September 30, 2018 certain loans were modified as TDRs, the terms of which are summarized in the following table. Nine months ended September 30, 2018 Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Adjusted Interest Rate Extended Maturity Extended Maturity and Restructured Payments Extended Maturity, Restructured Payments and Adjusted Interest Rate Commercial 3 628 — 612 — — Total 3 $ 628 $ — $ 612 $ — $ — |
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 September 30, 2019 and December 31, 2018 : September 30, 2019 Pass Special Substandard Doubtful PCI Total Real estate: Construction and land $ 605,062 $ 2,320 $ 3,185 $ — $ 4,407 $ 614,974 Farmland 16,633 — — — — 16,633 1 - 4 family residential 551,288 1,432 1,978 — 4,612 559,310 Multi-family residential 306,965 — — — — 306,965 Commercial real estate 2,259,962 39,963 29,533 — 97,183 2,426,641 Commercial 1,601,549 51,479 16,090 — 42,138 1,711,256 Mortgage warehouse 233,577 — — — — 233,577 Consumer 17,725 37 216 — 136 18,114 Total $ 5,592,761 $ 95,231 $ 51,002 $ — $ 148,476 $ 5,887,470 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 |
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 September 30, 2019 and December 31, 2018 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: September 30, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Loans individually evaluated for impairment $ 1,850 $ 157 $ 2,983 $ 4,190 $ 59 $ 9,239 Loans collectively evaluated for impairment 625,350 861,506 2,326,475 1,898,505 17,919 5,729,755 PCI loans 4,407 4,612 97,183 42,138 136 148,476 Total $ 631,607 $ 866,275 $ 2,426,641 $ 1,944,833 $ 18,114 $ 5,887,470 December 31, 2018 Real Estate Construction, 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 An analysis of the allowance for loan losses for the nine months ended September 30, 2019 and 2018 and the year ended December 31, 2018 is as follows: Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Nine Months Ended September 30, 2018 Balance at beginning of period $ 19,255 $ 12,808 $ 12,808 Provision charged to earnings 18,021 6,603 5,239 Charge-offs (11,272 ) (197 ) (171 ) Recoveries 239 41 33 Net charge-offs (11,033 ) (156 ) (138 ) Balance at end of period $ 26,243 $ 19,255 $ 17,909 The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. Nine Months Ended September 30, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Provision (recapture) charged to earnings 1,359 910 2,025 13,491 236 18,021 Charge-offs — (157 ) — (10,898 ) (217 ) (11,272 ) Recoveries — 62 — 91 86 239 Net charge-offs — (95 ) — (10,807 ) (131 ) (11,033 ) Balance at end of period $ 3,603 $ 2,790 $ 8,488 $ 11,238 $ 124 $ 26,243 Period-end amount allocated to: Specific reserves 166 — — 1,418 — 1,584 PCI reserves — — — 421 — 421 General reserves 3,437 2,790 8,488 9,399 124 24,238 Total $ 3,603 $ 2,790 $ 8,488 $ 11,238 $ 124 $ 26,243 For the Year Ended December 31, 2018 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of period $ 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 period $ 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 For the Nine Months Ended September 30, 2018 Real Estate Construction, 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 552 324 1,726 2,633 4 5,239 Charge-offs — — — (150 ) (21 ) (171 ) Recoveries — — — 33 — 33 Net charge-offs (recoveries) — — — (117 ) (21 ) (138 ) Balance at end of period $ 1,867 $ 1,797 $ 6,136 $ 8,104 $ 5 $ 17,909 Period-end amount allocated to: Specific reserves — — — 378 — 378 PCI reserves — — — 1,302 — 1,302 General reserves 1,867 1,797 6,136 6,424 5 16,229 Total $ 1,867 $ 1,797 $ 6,136 $ 8,104 $ 5 $ 17,909 |
Schedule of Summary of Changes in Servicing Assets | The Company was servicing loans of approximately $241,733 and $71,609 as of September 30, 2019 and 2018 , respectively. A summary of the changes in the related servicing assets are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Balance at beginning of period $ 3,793 $ 1,183 $ 1,304 $ 1,215 Servicing asset acquired through acquisition — — 2,382 — Increase from loan sales 534 27 995 204 Servicing asset impairment (188 ) — (188 ) — Amortization charged to income (618 ) (69 ) (972 ) (278 ) Balance at end of period $ 3,521 $ 1,141 $ 3,521 $ 1,141 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: September 30, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Available for sale securities $ — $ 990,274 $ — $ 990,274 Loans held for sale (1) — 8,468 — 8,468 Correspondent interest rate swaps — 7 — 7 Customer interest rate swaps — 5,437 — 5,437 Correspondent interest rate caps and collars — 20 — 20 Commercial loan interest rate floor — 4,225 — 4,225 Financial Liabilities: Correspondent interest rate swaps — 5,909 — 5,909 Customer interest rate caps and collars — 20 — 20 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2018 Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Financial Assets: Available for sale securities $ — $ 262,695 $ — $ 262,695 |
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 September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of September 30, 2019 Assets: Impaired loans $ — $ — $ 5,571 $ 5,571 Other real estate owned — — 4,625 4,625 As of December 31, 2018 Assets: Impaired loans — — 2,584 2,584 |
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 September 30, 2019 and December 31, 2018 were as follows: Fair Value Carrying Level 1 Level 2 Level 3 September 30, 2019 Financial assets: Cash and cash equivalents $ 252,592 $ — $ 252,592 $ — Held to maturity investments 33,119 — 35,177 — Loans held for sale 10,715 — 10,715 — Loans held for investment, mortgage warehouse 233,577 — — 237,945 Loans held for investment 5,654,027 — — 5,681,565 Accrued interest receivable 19,893 — 19,893 — Bank-owned life insurance 80,411 — 80,411 — Servicing asset 3,521 — 3,521 — Other investments 89,795 — 89,795 — Financial liabilities: Deposits $ 5,877,846 $ — $ 5,772,171 $ — Advances from FHLB 752,907 — 778,243 — Accrued interest payable 7,355 — 7,355 — Subordinated debentures and subordinated notes 72,284 — 72,284 — Securities sold under agreement to repurchase 2,787 — 2,787 — December 31, 2018 Financial assets: Cash and cash equivalents $ 84,449 $ — $ 84,449 $ — Loans held for sale 1,258 — 1,258 — Loans held for investment 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 — Other investments 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 — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Balance Sheet | September 30, 2019 Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floor $ 275,000 $ 4,225 $ — Total derivatives designated as hedging instruments 275,000 4,225 — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 227,438 7 5,909 Interest rate caps and collars 84,211 20 — Commercial customer counterparty: Interest rate swaps 227,438 5,437 — Interest rate caps and collars 84,211 — 20 Total derivatives not designated as hedging instruments 623,298 5,464 5,929 Offsetting derivative assets/liabilities 28 28 Total derivatives $ 898,298 $ 9,717 $ 5,957 |
Derivative Instruments, Gain (Loss) | Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the three and nine months ended September 30, 2019 was as follows: For the Three Months Ended For the Nine Months Ended Gain recognized in other comprehensive income on cash flow derivative Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) Loss recognized in noninterest income Gain recognized in other comprehensive income on cash flow derivative Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) Gain recognized in noninterest income Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floors $ 413 $ (334 ) $ — $ 2,033 $ (473 ) $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 604 $ — $ — $ 474 |
Schedule of Derivative Instruments Outstanding | The following is a summary of the interest rate swaps outstanding as of September 30, 2019 . The Company did not have interest rate swaps outstanding as of December 31, 2018 . September 30, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 227,438 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (5,902 ) Interest rate caps and collars $ 84,211 2.500% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 20 Correspondent interest rate derivatives: Interest rate swaps - pay fixed/receive floating $ 227,438 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 5,439 Interest rate caps and collars $ 84,211 3.000% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ (20 ) |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 and December 31, 2018 : September 30, December 31, 2019 2018 Commitments to extend credit $ 1,909,221 $ 962,436 Standby and commercial letters of credit 33,360 5,431 Total $ 1,942,581 $ 967,867 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Lease Costs | The table below summarizes the Company’s net lease cost: Three Months Ended Nine Months Ended Operating lease cost $ 1,157 $ 3,920 Variable lease cost 293 700 Net lease cost $ 1,450 $ 4,620 The table below summarized other information related to the Company’s operating leases: Nine Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,399 Weighted average remaining lease term - operating leases, in years 3.9 years Weighted average discount rate - operating leases 1.5 % |
Summary of Remaining Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: September 30, 2019 Lease payments due: Within one year $ 3,908 After one but within two years 3,390 After two but within three years 2,819 After three but within four years 2,586 After four but within five years 1,938 After five years 2,549 Total undiscounted cash flows 17,190 Less: Discount on cash flows (1,065 ) Total lease liability $ 16,125 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets in the accompanying condensed consolidated balance sheets are summarized as follows: As of September 30, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Assets Impairment Amortization Assets Core deposit intangibles 7.2 years $ 81,769 $ — $ 11,755 $ 70,014 Servicing asset 7.1 years 5,468 188 1,759 3,521 Intangible lease assets 1.7 years 4,764 — 2,936 — 1,828 $ 92,001 $ 188 $ 16,450 $ 75,363 As of December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Assets Amortization Assets 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 |
Schedule of Changes in Carry Value of Goodwill | Changes in the carrying amount of goodwill are summarized as follows for the three months ended September 30, 2019 : September 30, 2019 Balance as of December 31, 2018 $ 161,447 Effect of Green acquisition 209,016 Balance as of September 30, 2019 $ 370,463 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule Summarized of the Deposits | Deposits in the accompanying condensed consolidated balance sheets are summarized as follows: September 30, 2019 December 31, 2018 Noninterest-bearing demand accounts $ 1,473,126 $ 626,283 Interest-bearing demand accounts 373,997 146,969 Savings accounts 87,981 33,147 Limited access money market accounts 2,066,315 1,133,045 Certificates of deposit, greater than $100 1,212,718 392,935 Certificates of deposit, less than $100 663,709 290,049 Total $ 5,877,846 $ 2,622,428 |
Scheduled Maturities of Certificate of Deposits | As of September 30, 2019 , the scheduled maturities of certificates of deposit were as follows: Year Amount 2019 $ 519,916 2020 1,092,676 2021 198,091 2022 38,773 2023 26,971 Total $ 1,876,427 |
Advances from the Federal Hom_2
Advances from the Federal Home Loan Bank (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at September 30, 2019 were as follows: 2019 $ 225,000 2020 425,000 2021 75,000 2022 27,907 Total $ 752,907 |
Subordinated Debentures and S_2
Subordinated Debentures and Subordinated Notes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Subordinated Debentures | A summary of information related to these two issues of subordinated debentures is set forth in the table below: Description Subordinated Debt Owed to Trusts Interest Rate (1) Maturity Date Patriot Bancshares Capital Trust I $ 5,155 3-month LIBOR +1.85%, not to exceed 11.90% April 7, 2036 Patriot Bancshares Capital Trust II $ 17,011 3-month LIBOR +1.80%, not to exceed 11.90% September 15, 2037 (1) The 3-month LIBOR in effect as of September 30, 2019 was 2.1% . Total subordinated debentures as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Subordinated debentures $ 33,868 $ 11,702 Debt discount (3,899 ) — Total subordinated debentures $ 29,969 $ 11,702 Total subordinated notes as of September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Subordinated notes $ 40,000 $ 5,000 Unamortized debt premium (discount) 2,315 (11 ) Total subordinated notes $ 42,315 $ 4,989 |
Stock-Based and Liability-Cla_2
Stock-Based and Liability-Classified Awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of option activity under the 2010 Incentive Plan for the nine months ended September 30, 2019 and 2018 , and changes during the periods then ended is presented below: 2010 Incentive Plan Non-Performance Based Stock Options Shares Underlying Options Weighted Exercise Price Weighted Average Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2018 305,000 $ 10.16 3.59 years Exercised (11,500 ) 10.48 Outstanding at September 30, 2018 293,500 $ 10.15 2.78 years Options exercisable at September 30, 2018 289,500 $ 10.13 2.75 years Outstanding at January 1, 2019 275,000 $ 10.12 2.39 years $ 3,098 Exercised (17,500 ) 10.24 Outstanding and exercisable at September 30, 2019 257,500 $ 10.28 1.62 years $ 3,699 A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of September 30, 2019 , and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Forfeited (10,217 ) 12.21 Exercised (82,451 ) 13.43 — Outstanding at September 30, 2019 423,903 $ 18.85 8.01 years $ 2,293 Options exercisable at September 30, 2019 213,427 $ 16.36 6.89 years $ 1,686 Weighted average fair value of options granted during the period $ 24.22 A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Non-performance Based Stock Options Equity Awards Liability Awards Shares Weighted Weighted Aggregate Intrinsic Value Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2018 332,706 $ 22.71 8.86 years — $ — Granted 125,593 27.95 — — Forfeited (2,076 ) 27.59 — — Exercised (1,983 ) 14.95 — — Outstanding at September 30, 2018 454,240 $ 24.12 8.42 years $ — Options exercisable at September 30, 2018 122,329 $ 18.38 7.29 years — $ — Outstanding at January 1, 2019 449,520 $ 24.47 8.24 years — $ — Granted 166,971 23.91 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633 ) 21.38 Forfeited (28,240 ) 25.82 — — Exercised (12,610 ) 15.42 — — Outstanding at September 30, 2019 829,274 $ 23.50 8.42 years $ 632 — $ — $ — Options exercisable at September 30, 2019 417,183 $ 24.59 7.53 years $ (135 ) — $ — Weighted average fair value of options granted during the period $ 22.38 $ — |
Summary of Status of the Company's Restricted Shares or Restricted Stock Units | A summary of the status of the Company’s non-performance-based restricted stock units under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Non-performance Based Restricted Stock Units Equity Awards Liability Awards Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 150,722 $ 13.29 — $ — Granted 54,650 29.29 — — Vested into shares (39,311 ) 27.19 — — Forfeited (3,929 ) 26.85 — — Outstanding at September 30, 2018 162,132 $ 23.85 — $ — Outstanding at January 1, 2019 133,455 $ 19.67 — $ — Granted 104,827 23.09 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739 ) 21.38 Vested into shares (229,031 ) 22.06 — — Outstanding at September 30, 2019 174,990 $ 21.55 — $ — A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of September 30, 2019 and 2018 , and changes during the nine months then ended, is as follows: 2014 Omnibus Plan Performance Based Restricted Stock Units Equity Awards Liability Awards Units Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 53,594 $ 8.72 — $ — Granted 40,269 27.59 — — Vested into shares (26,623 ) 18.83 — — Forfeited (898 ) 27.59 — — Outstanding at September 30, 2018 66,342 $ 25.56 — $ — Outstanding at January 1, 2019 63,988 $ 21.28 — $ — Granted 38,360 22.47 32,249 21.38 Conversion to equity award 32,249 21.38 (32,249 ) 21.38 Vested into shares (51,284 ) 25.31 — — Forfeited (17,827 ) 21.38 — — Outstanding at September 30, 2019 65,486 $ 22.73 — $ — September 30, 2018 , and changes during the nine months then ended is as follows: 2010 Incentive Plan Nonperformance-based restricted stock units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2018 24,250 $ 13.19 Vested into shares (23,750 ) 12.14 Forfeited (500 ) 10.85 Outstanding at September 30, 2018 — $ — A summary of the status of the Company’s non-performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at September 30, 2019 116,250 $ 21.38 A summary of the status of the Company’s performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 26,145 21.38 Forfeited (508 ) 21.38 Outstanding at September 30, 2019 25,637 $ 21.38 |
Schedule of Share-based Compensation, 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 2010 Incentive Plan for the nine months ended September 30, 2019 and 2018 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 2018 Non-performance based stock options exercised 454 328 Non-performance based restricted stock units vested — 713 A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan during the nine months ended September 30, 2019 and 2018 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 2018 Non-performance-based stock options exercised 335 54 Non-performance-based restricted stock units vested 5,669 1,173 Performance-based restricted stock units vested 1,089 745 Veritex (Green) 2014 Plan A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of September 30, 2019 , and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Forfeited (10,217 ) 12.21 Exercised (82,451 ) 13.43 — Outstanding at September 30, 2019 423,903 $ 18.85 8.01 years $ 2,293 Options exercisable at September 30, 2019 213,427 $ 16.36 6.89 years $ 1,686 Weighted average fair value of options granted during the period $ 24.22 As of September 30, 2019 , there was $1,198 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at September 30, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.3 years . A summary of the status of the Company’s non-performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at September 30, 2019 116,250 $ 21.38 A summary of the status of the Company’s performance based restricted stock units under the Veritex (Green) 2014 Plan as of September 30, 2019 and changes during the nine months then ended, is as follows: Veritex (Green) 2014 Plan Performance Based Restricted Stock Units Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 26,145 21.38 Forfeited (508 ) 21.38 Outstanding at September 30, 2019 25,637 $ 21.38 As of September 30, 2019 , there was $2,243 of total unrecognized compensation related to outstanding performance based restricted stock units awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 2.3 years . A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the Veritex (Green) 2014 Plan during the nine months ended September 30, 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 Non-performance-based stock options exercised $ 2,088 Green Bancorp Inc. 2010 Stock Option Plan and Green Bancorp Inc. 2006 Stock Option Plan In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed two stock and incentive plans in the Green acquisition, the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”) and the Green Bancorp Inc. 2006 Stock Option Plan (“Green 2006 Plan”). For the Green 2010 Plan and the Green 2006 Plan, 768,628 and 11,850 of stock options, respectively, were converted in the acquisition of Green during the nine months ended September 30, 2019 . No stock options or restricted stock units were awarded from these plans during the nine months ended September 30, 2019 . During the nine months ended September 30, 2019 , 100,544 stock options were exercised from the Green 2010 Plan and 11,850 stock options were exercised from the Green 2006 Plan. As of September 30, 2019 , 661,843 exercisable stock options remain outstanding in the Green 2010 Plan and no exercisable stock options remain outstanding in the Green 2006 Plan. |
Schedule of Vesting Percentages | Below is a table showing the range of vesting percentages for the performance-based restricted stock units based on the Company’s TSR percentile rank. Vesting % Below the 24.9 th percentile of Peer Group TSR —% Within the 25 th to 49.9 th percentile of Peer Group TSR 50% Within the 50 th the 74.9 th percentile of Peer Group TSR 100% At or above the 75 th percentile of Peer Group TSR 150% |
Schedule of Assumptions Used to Measure Fair Value of Each Option Award Estimated On Grant Date Using Black-Scholes Option-Pricing Model | A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan during the nine months ended September 30, 2019 and 2018 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the nine months ended September 30, 2019 2018 Non-performance-based stock options exercised 335 54 Non-performance-based restricted stock units vested 5,669 1,173 Performance-based restricted stock units vested 1,089 745 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 nine months ended September 30, 2019 and 2018 : Nine Months Ended September 30, 2019 2019 2018 Dividend yield 1.87% to 2.01% 0.00% Expected life 5.0 to 7.51 years 5.0 to 7.5 years Expected volatility 29.13% to 29.65% 27.87% to 37.55% Risk-free interest rate 1.72% to 2.51% 1.06% to 2.94% |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 7,595 $ 1,448 $ 16,953 $ 7,309 Effective tax rate 21.7 % 13.9 % 21.6 % 19.8 % |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 Total capital (to risk-weighted assets) Company $ 850,136 12.26 % $ 554,738 8.0 % n/a n/a Bank 831,796 12.00 % 554,531 8.0 % $ 693,163 10.0 % Tier 1 capital (to risk-weighted assets) Company 780,700 11.26 % 416,004 6.0 % n/a n/a Bank 804,675 11.61 % 415,853 6.0 % 554,470 8.0 % Common equity tier 1 to risk-weighted assets Company 749,913 10.82 % 311,886 4.5 % n/a n/a Bank 804,675 11.61 % 311,890 4.5 % 450,507 6.5 % Tier 1 capital (to average assets) Company 780,700 10.33 % 302,304 4.0 % n/a n/a Bank 804,675 10.64 % 302,509 4.0 % 378,137 5.0 % 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 % |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | The following table presents the fair value of each class of consideration transferred at the close date. Equivalent shares of Veritex common stock issued in exchange for Green outstanding shares 29,532,957 Veritex common stock price per share as of close date $ 21.38 Fair value of Veritex common stock issued in exchange for Green outstanding shares $ 631,415 Fair value of Green equity-based awards attributed to pre-combination service 12,484 Cash consideration to Green shareholders 10 Total consideration transferred $ 643,909 |
Schedule of Acquired Assets and Assumed Liabilities | Estimated fair values of the assets acquired and liabilities assumed in this transaction as of the closing date are as follows: Estimate at Measurement Period Adjustments Revised Fair Value Assets Cash and cash equivalents $ 112,720 $ — $ 112,720 Investment securities 661,032 (240 ) 660,792 Other securities 40,287 — 40,287 Loans held for sale 9,360 — 9,360 Loans held for investment 3,245,492 (244 ) 3,245,248 Accrued interest receivable 11,673 (278 ) 11,395 Bank owned life insurance 56,841 — 56,841 Bank premises, furniture and equipment 39,426 (2,571 ) 36,855 Investment in unconsolidated subsidiaries 666 — 666 Intangible assets 65,718 — 65,718 Goodwill 206,821 2,195 209,016 Other assets 12,245 404 12,649 Right of use asset 9,373 — 9,373 Deferred Taxes 11,535 395 11,930 Current taxes 1,799 13 1,812 Branch assets held for sale 85,307 — 85,307 Total assets $ 4,570,295 $ (326 ) $ 4,569,969 Liabilities Non-interest-bearing deposits $ 825,364 $ — $ 825,364 Interest-bearing deposits 1,300,825 — 1,300,825 Certificates and other time deposits 1,346,915 — 1,346,915 Accounts payable and other accrued expenses 26,587 (326 ) 26,261 Lease liability 9,373 — 9,373 Accrued interest payable 5,181 — 5,181 Securities sold under agreements to repurchase 3,226 — 3,226 Advances from Federal Home Loan Bank 300,000 — 300,000 Subordinated debentures and subordinated notes 56,233 — 56,233 Branch liabilities held for sale 52,682 — 52,682 Total liabilities $ 3,926,386 $ (326 ) $ 3,926,060 |
Summary of Loans Acquired in a Business Combination | The following table discloses the fair value and contractual value of loans acquired from Green on January 1, 2019 : PCI loans Other acquired loans Total Acquired Loans Real Estate $ 132,006 $ 1,783,938 $ 1,915,944 Commercial 50,057 1,099,012 1,149,069 Mortgage warehouse — 166,850 166,850 Consumer 184 13,201 13,385 Total fair value 182,247 3,063,001 3,245,248 Contractual principal balance $ 242,013 $ 3,093,047 $ 3,335,060 The following table presents additional information about PCI loans acquired from Green on January 1, 2019 : PCI Loans Contractually required principal and interest $ 277,773 Non-accretable difference 75,656 Cash flows expected to be collected $ 202,117 Accretable difference 19,870 Fair value of PCI loans $ 182,247 |
Schedule of Assets and Liabilities Held For Sale | The following table discloses the fair value information about branch assets and liabilities that met the definition of held for sale on January 1, 2019 : January 1, 2019 Assets Cash and cash equivalents $ 392 Loans 78,366 Bank premises, furniture and equipment 19 Intangible assets 6,013 Other assets 517 Total assets $ 85,307 Liabilities Noninterest-bearing deposits $ 52,319 Accounts payable and accrued expenses 40 Accrued interest payable and other liabilities 1 323 Total liabilities $ 52,682 1 Accrued interest payable and other liabilities includes $90 in expected selling costs. |
Schedule of Supplemental Pro Forma Information | The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2018: Net Interest Income $ 200,821 Net Income 78,359 Basic earnings per share $ 1.45 Diluted earnings per share 1.42 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segmentmortgage_officebranch | Sep. 30, 2018USD ($) | Jan. 01, 2020 | Jan. 01, 2019USD ($) | Dec. 31, 2018 | |
Nature of Organization: | |||||||
Number of reportable segments | segment | 1 | ||||||
Other noninterest income | $ (1,289,000) | $ (539,000) | $ (2,458,000) | $ (1,335,000) | |||
Other interest investment income | 816,000 | 108,000 | 2,129,000 | 442,000 | |||
Merger and acquisition expense | 1,035,000 | 2,692,000 | 38,042,000 | 4,070,000 | |||
Goodwill, impairment loss | 0 | $ 0 | 0 | $ 0 | |||
Right-of-use asset | 15,278,000 | 15,278,000 | |||||
Lease liability | $ 16,125,000 | $ 16,125,000 | |||||
Allowance for loan losses (as a percent) | 0.45% | 0.73% | 0.45% | 0.73% | 0.75% | ||
Dallas-Fort Worth | |||||||
Nature of Organization: | |||||||
Number of branches | branch | 26 | ||||||
Number of mortgage offices | mortgage_office | 1 | ||||||
Houston | |||||||
Nature of Organization: | |||||||
Number of branches | branch | 12 | ||||||
Louisville, Kentucky | |||||||
Nature of Organization: | |||||||
Number of branches | branch | 1 | ||||||
Accounting Standards Update 2016-02 | |||||||
Nature of Organization: | |||||||
Right-of-use asset | $ 18,705,000 | ||||||
Lease liability | $ 18,753,000 | ||||||
Accounting Standards Update 2016-13 | |||||||
Nature of Organization: | |||||||
Allowance for loan losses (as a percent) | 0.45% | 0.45% | |||||
Restatement Adjustment | |||||||
Nature of Organization: | |||||||
Other noninterest income | $ 102,000 | $ 427,000 | |||||
Other interest investment income | $ 102,000 | $ 427,000 | |||||
Minimum | Forecast | Accounting Standards Update 2016-13 | |||||||
Nature of Organization: | |||||||
Allowance for loan losses (as a percent) | 1.15% | ||||||
Maximum | Forecast | Accounting Standards Update 2016-13 | |||||||
Nature of Organization: | |||||||
Allowance for loan losses (as a percent) | 1.35% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings (numerator) | ||||
Net income | $ 27,405 | $ 8,935 | $ 61,688 | $ 29,516 |
Shares (denominator) | ||||
Weighted average shares outstanding for basic EPS (in shares) | 52,915 | 24,176 | 53,721 | 24,151 |
Dilutive effect of employee stock based awards (in shares) | 953 | 437 | 912 | 436 |
Adjusted weighted average shares outstanding (in shares) | 53,868 | 24,613 | 54,633 | 24,587 |
EPS: | ||||
Basic (in dollars per share) | $ 0.52 | $ 0.37 | $ 1.15 | $ 1.22 |
Diluted (in dollars per share) | $ 0.51 | $ 0.36 | $ 1.13 | $ 1.20 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Excluded from diluted EPS weighted average shares (in shares) | 0 | 0 | 0 | 0 |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | $ 65,897 | $ 19,939 |
Cash paid for income taxes | 13,400 | 6,025 |
Supplemental Disclosures of Non-Cash Flow Information: | ||
Setup of ROU asset and lease liability upon adoption of ASC 842 | 9,380 | |
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 | 788 | |
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital | (48) | 0 |
Net foreclosure of other real estate owned and repossessed assets | 4,625 | 8 |
Reclassification of branch assets held for sale to loans held for investment | 26,171 | 0 |
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits | 1,173 | 0 |
Non-cash assets acquired in business combination | ||
Investment securities | 660,792 | 0 |
Non-marketable equity securities | 40,287 | 0 |
Loans held for sale | 9,360 | 0 |
Loans held for investment | 3,245,248 | (4,050) |
Accrued interest receivable | 11,395 | 0 |
Bank-owned life insurance | 56,841 | 0 |
Bank premises, furniture and equipment | 36,855 | 1,162 |
Investment in unconsolidated subsidiaries | 666 | 0 |
Intangible assets, net | 65,718 | (956) |
Goodwill | 209,016 | 1,995 |
Other assets | 12,649 | 1,806 |
Right of use asset | 9,373 | |
Deferred taxes | 11,930 | 0 |
Current taxes | 1,812 | 0 |
Assets held for sale | 85,307 | 0 |
Total assets | 4,457,249 | (43) |
Non-cash liabilities assumed in business combination | ||
Non-interest-bearing deposits | 825,364 | 303 |
Interest-bearing deposits | 1,300,825 | 0 |
Certificates and other time deposits | 1,346,915 | 0 |
Accounts payable and accrued expenses | 26,261 | 0 |
Lease liability | 9,373 | |
Accrued interest payable and other liabilities | 5,181 | (260) |
Securities sold under agreements to repurchase | 3,226 | 0 |
Advances from Federal Home Loan Bank | 300,000 | 0 |
Subordinated debentures and subordinated notes | 56,233 | 0 |
Liabilities held for sale | 52,682 | 0 |
Total liabilities | $ 3,926,060 | $ 43 |
Share Transactions - (Details)
Share Transactions - (Details) - Common Stock - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 03, 2019 | Jan. 28, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock buyback program, authorized amount | $ 100,000,000 | $ 50,000,000 | ||
Stock repurchase program, additional amount authorized | $ 50,000,000 | |||
Shares repurchased (in shares) | 1,177,241 | 2,349,103 | ||
Average price (in dollars per share) | $ 24.61 | $ 25.03 |
Debt Securities - Carrying Amou
Debt Securities - Carrying Amount and Fair Values (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale | |||
Amortized Cost | $ 962,677,000 | $ 266,404,000 | |
Gross Unrealized Gains | 27,999,000 | 392,000 | |
Gross Unrealized Losses | 402,000 | 4,101,000 | |
Fair Value | 990,274,000 | 262,695,000 | |
Held to maturity | |||
Amortized Cost | 33,119,000 | 0 | |
Gross Unrealized Gains | 2,058,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 35,177,000 | ||
Debt securities, transfer to trading, gain (loss) | $ 0 | ||
U.S. government agencies | |||
Available for sale | |||
Amortized Cost | 9,096,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 118,000 | ||
Fair Value | 8,978,000 | ||
Corporate bonds | |||
Available for sale | |||
Amortized Cost | 77,005,000 | 26,518,000 | |
Gross Unrealized Gains | 1,909,000 | 84,000 | |
Gross Unrealized Losses | 90,000 | 134,000 | |
Fair Value | 78,824,000 | 26,468,000 | |
Municipal securities | |||
Available for sale | |||
Amortized Cost | 75,112,000 | 40,275,000 | |
Gross Unrealized Gains | 3,982,000 | 10,000 | |
Gross Unrealized Losses | 0 | 338,000 | |
Fair Value | 79,094,000 | 39,947,000 | |
Held to maturity | |||
Amortized Cost | 22,579,000 | ||
Gross Unrealized Gains | 1,397,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 23,976,000 | ||
Debt securities, transfer, amount | 4,758,000 | ||
Mortgage-backed securities | |||
Available for sale | |||
Amortized Cost | 338,144,000 | 97,117,000 | |
Gross Unrealized Gains | 10,175,000 | 101,000 | |
Gross Unrealized Losses | 59,000 | 2,167,000 | |
Fair Value | 348,260,000 | 95,051,000 | |
Held to maturity | |||
Amortized Cost | 10,540,000 | ||
Gross Unrealized Gains | 661,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | 11,201,000 | ||
Debt securities, transfer, amount | $ 3,045,000 | ||
Collateralized mortgage obligations | |||
Available for sale | |||
Amortized Cost | 398,665,000 | 92,906,000 | |
Gross Unrealized Gains | 9,135,000 | 197,000 | |
Gross Unrealized Losses | 253,000 | 1,344,000 | |
Fair Value | 407,547,000 | 91,759,000 | |
Small Business Administration (SBA) guaranteed securities | |||
Available for sale | |||
Amortized Cost | 73,751,000 | ||
Gross Unrealized Gains | 2,798,000 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 76,549,000 | ||
Asset-backed securities | |||
Available for sale | |||
Amortized Cost | 492,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 492,000 |
Debt Securities - Unrealized Lo
Debt Securities - Unrealized Loss Position (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)investment | Dec. 31, 2018USD ($)investment | |
Available-for-Sale Fair Value | ||
Less Than 12 Months | $ 29,846 | $ 71,445 |
12 Months or More | 9,401 | 115,907 |
Totals | 39,247 | 187,352 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 343 | 644 |
12 Months or More | 59 | 3,457 |
Totals | $ 402 | $ 4,101 |
Number of investment positions in an unrealized loss position (investments) | investment | 10 | 142 |
Available-for-sale, number of securities sold | investment | 142 | |
U.S. government agencies | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | $ 5,671 | |
12 Months or More | 3,306 | |
Totals | 8,977 | |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 68 | |
12 Months or More | 50 | |
Totals | 118 | |
Corporate bonds | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | $ 5,591 | 6,689 |
12 Months or More | 3,786 | 0 |
Totals | 9,377 | 6,689 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 83 | 134 |
12 Months or More | 7 | 0 |
Totals | 90 | 134 |
Municipal securities | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 16,043 | |
12 Months or More | 10,428 | |
Totals | 26,471 | |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 92 | |
12 Months or More | 246 | |
Totals | 338 | |
Mortgage-backed securities | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 1,860 | 24,277 |
12 Months or More | 5,615 | 59,637 |
Totals | 7,475 | 83,914 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 7 | 279 |
12 Months or More | 52 | 1,888 |
Totals | 59 | 2,167 |
Collateralized mortgage obligations | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 22,395 | 18,765 |
12 Months or More | 0 | 42,536 |
Totals | 22,395 | 61,301 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 253 | 71 |
12 Months or More | 0 | 1,273 |
Totals | $ 253 | $ 1,344 |
Debt Securities - Maturities (D
Debt Securities - Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available For Sale Amortized Cost | ||
Due in one year or less | $ 0 | $ 2,963 |
Due from one year to five years | 4,897 | 34,933 |
Due from five years to ten years | 68,614 | 19,682 |
Due after ten years | 78,606 | 18,311 |
Total investment securities available for sale, single maturity date | 152,117 | 75,889 |
Amortized Cost | 962,677 | 266,404 |
Available For Sale Fair value | ||
Due in one year or less | 0 | 2,966 |
Due from one year to five years | 5,090 | 34,854 |
Due from five years to ten years | 70,271 | 19,468 |
Due after ten years | 82,557 | 18,105 |
Total investment securities available for sale | 157,918 | 75,393 |
Fair Value | 990,274 | 262,695 |
Held-to-Maturity Amortized Cost | ||
Due in one year or less | 0 | |
Due from one year to five years | 0 | |
Due from five years to ten years | 1,209 | |
Due after ten years | 21,370 | |
Total investment securities held to maturity, single maturity date | 22,579 | |
Amortized Cost | 33,119 | 0 |
Held-to-Maturity Fair Value | ||
Due in one year or less | 0 | |
Due from one year to five years | 0 | |
Due from five years to ten years | 1,225 | |
Due after ten years | 22,751 | |
Total investment securities held to maturity | 23,976 | |
Fair value | 35,177 | |
Mortgage-backed securities and collateralized mortgage obligations | ||
Available For Sale Amortized Cost | ||
Amortized cost | 736,809 | 190,023 |
Amortized Cost | 338,144 | 97,117 |
Available For Sale Fair value | ||
Fair value | 755,807 | 186,810 |
Fair Value | 348,260 | 95,051 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 10,540 | |
Amortized Cost | 10,540 | |
Held-to-Maturity Fair Value | ||
Fair value | 11,201 | |
Fair value | 11,201 | |
Small Business Administration (SBA) guaranteed securities | ||
Available For Sale Amortized Cost | ||
Amortized cost | 73,751 | |
Amortized Cost | 73,751 | |
Available For Sale Fair value | ||
Fair value | 76,549 | |
Fair Value | 76,549 | |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 0 | |
Held-to-Maturity Fair Value | ||
Fair value | $ 0 | |
Asset-backed securities | ||
Available For Sale Amortized Cost | ||
Amortized cost | 492 | |
Amortized Cost | 492 | |
Available For Sale Fair value | ||
Fair value | 492 | |
Fair Value | $ 492 |
Debt Securities - Proceeds and
Debt Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Proceeds from sales | $ 254,397 | $ 30,961 |
Gross realized gains | 522 | 335 |
Gross realized losses | $ 1,936 | $ 357 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | $ 5,887,470 | $ 2,555,509 | ||
Deferred loan fees | 134 | (15) | ||
Less: Allowance for loan losses | (26,243) | (19,255) | $ (17,909) | $ (12,808) |
Loans held for investment, net | 5,861,361 | 2,536,239 | ||
PCI loans acquired | 61,744 | 22,309 | ||
Discount on retained loans from sale | 2,871 | 2,398 | ||
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 1,711,256 | 760,772 | ||
Less: Allowance for loan losses | (11,238) | (8,554) | (8,104) | (5,588) |
Mortgage warehouse | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 233,577 | 0 | ||
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 18,114 | 7,112 | ||
Less: Allowance for loan losses | (124) | (19) | (5) | (22) |
Construction and land | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 614,974 | 324,863 | ||
Farmland | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 16,633 | 10,528 | ||
Real estate | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 866,275 | 349,202 | ||
Less: Allowance for loan losses | (2,790) | (1,975) | (1,797) | (1,473) |
Real estate | 1-4 family residential | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 559,310 | 297,917 | ||
Real estate | Multi-family residential | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 306,965 | 51,285 | ||
Commercial real estate | Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans held for investment, mortgage warehouse | 2,426,641 | 1,103,032 | ||
Less: Allowance for loan losses | $ (8,488) | $ (6,463) | $ (6,136) | $ (4,410) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Loans and Allowance for Loan Losses | |||||
Nonaccrual | $ 10,172 | $ 10,172 | $ 24,745 | ||
Loans and leases receivable, impaired, interest lost on nonaccrual loans | 243 | $ 331 | 530 | $ 371 | |
Commercial | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 4,190 | 4,190 | 19,769 | ||
Mortgage warehouse | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 0 | 0 | 0 | ||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 85 | 85 | 2 | ||
Construction and land | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 1,850 | 1,850 | 2,399 | ||
Farmland | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 0 | 0 | 0 | ||
Real estate | 1-4 family residential | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 1,188 | 1,188 | 0 | ||
Real estate | Multi-family residential | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | 0 | 0 | 0 | ||
Commercial real estate | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual | $ 2,859 | 2,859 | 2,575 | ||
Financial Asset Acquired with Credit Deterioration | |||||
Loans and Allowance for Loan Losses | |||||
Loans and leases receivable, impaired, interest lost on nonaccrual loans | $ 0 | $ 16,902 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 44,940 | $ 5,821 |
Total Current | 5,694,054 | 2,508,858 |
Total loans | 5,887,470 | 2,555,509 |
Total 90 days past due and still accruing | 2,194 | 0 |
Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 185,787 | 49,902 |
PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 148,476 | 40,830 |
30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 9,942 | 4,727 |
60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 26,807 | 1,094 |
90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 8,191 | 0 |
90 Days or Greater | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total 90 days past due and still accruing | 30,294 | 527 |
Real Estate | Construction and land | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 2,746 | 305 |
Total Current | 607,821 | 324,558 |
Total loans | 614,974 | 324,863 |
Total 90 days past due and still accruing | 47 | 0 |
Real Estate | Construction and land | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 4,407 | 0 |
Real Estate | Construction and land | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 850 | 305 |
Real Estate | Construction and land | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Construction and land | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,896 | 0 |
Real Estate | Farmland | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 16,633 | 10,528 |
Total loans | 16,633 | 10,528 |
Total 90 days past due and still accruing | 0 | 0 |
Real Estate | Farmland | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | 0 |
Real Estate | Farmland | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 866,275 | 349,202 |
Real Estate | Real estate | 1-4 family residential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,462 | 397 |
Total Current | 550,236 | 297,435 |
Total loans | 559,310 | 297,917 |
Total 90 days past due and still accruing | 482 | 0 |
Real Estate | Real estate | 1-4 family residential | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 4,612 | 85 |
Real Estate | Real estate | 1-4 family residential | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 138 | 131 |
Real Estate | Real estate | 1-4 family residential | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,168 | 266 |
Real Estate | Real estate | 1-4 family residential | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,156 | 0 |
Real Estate | Real estate | Multifamily | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 306,965 | 51,285 |
Total loans | 306,965 | 51,285 |
Total 90 days past due and still accruing | 0 | 0 |
Real Estate | Real estate | Multifamily | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | 0 |
Real Estate | Real estate | Multifamily | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Real estate | Multifamily | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Real estate | Multifamily | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Commercial real estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 29,170 | 3,465 |
Total Current | 2,300,288 | 1,082,559 |
Total loans | 2,426,641 | 1,103,032 |
Total 90 days past due and still accruing | 398 | 0 |
Real Estate | Commercial real estate | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 97,183 | 17,008 |
Real Estate | Commercial real estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,927 | 3,465 |
Real Estate | Commercial real estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 23,165 | 0 |
Real Estate | Commercial real estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,078 | 0 |
Commercial | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 8,124 | 1,644 |
Total Current | 1,660,994 | 735,391 |
Total loans | 1,711,256 | 760,772 |
Total 90 days past due and still accruing | 1,129 | 0 |
Commercial | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 42,138 | 23,737 |
Commercial | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,851 | 816 |
Commercial | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 435 | 828 |
Commercial | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,838 | 0 |
Mortgage warehouse | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Total Current | 233,577 | |
Total loans | 233,577 | 0 |
Total 90 days past due and still accruing | 0 | |
Mortgage warehouse | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | |
Mortgage warehouse | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Mortgage warehouse | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Mortgage warehouse | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Consumer | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 438 | 10 |
Total Current | 17,540 | 7,102 |
Total loans | 18,114 | 7,112 |
Total 90 days past due and still accruing | 138 | 0 |
Consumer | PCI | Financial Asset Acquired with Credit Deterioration | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 136 | 0 |
Consumer | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 176 | 10 |
Consumer | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 39 | 0 |
Consumer | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 223 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $ 9,239 | $ 8,791 |
Recorded Investment with No Allowance | 3,668 | 6,207 |
Recorded Investment with Allowance | 5,571 | 2,584 |
Total Recorded Investment | 9,239 | 8,791 |
Related Allowance | 1,584 | 368 |
Average Recorded Investment YTD | 9,769 | 9,289 |
Real Estate | Construction and land | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 1,850 | 2,016 |
Recorded Investment with No Allowance | 184 | 2,016 |
Recorded Investment with Allowance | 1,666 | 0 |
Total Recorded Investment | 1,850 | 2,016 |
Related Allowance | 166 | 0 |
Average Recorded Investment YTD | 1,989 | 2,262 |
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 YTD | 0 | 0 |
Real Estate | Real estate | 1-4 family residential | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 157 | 542 |
Recorded Investment with No Allowance | 157 | 542 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 157 | 542 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 158 | 565 |
Real Estate | Real estate | Multifamily | ||
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 YTD | 0 | 0 |
Real Estate | Commercial real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 2,983 | 2,939 |
Recorded Investment with No Allowance | 2,983 | 2,939 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 2,983 | 2,939 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | 3,210 | 3,032 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 4,190 | 3,228 |
Recorded Investment with No Allowance | 285 | 644 |
Recorded Investment with Allowance | 3,905 | 2,584 |
Total Recorded Investment | 4,190 | 3,228 |
Related Allowance | 1,418 | 368 |
Average Recorded Investment YTD | 4,352 | 3,351 |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 59 | 66 |
Recorded Investment with No Allowance | 59 | 66 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 59 | 66 |
Related Allowance | 0 | 0 |
Average Recorded Investment YTD | $ 60 | $ 79 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Loan | Sep. 30, 2018Loan | Sep. 30, 2019USD ($)Loan | Sep. 30, 2018USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Recorded investment for financing receivable, modifications | $ 1,132 | $ 1,132 | $ 1,171 | ||
Number of Loans | Loan | 0 | 0 | 3 | ||
Post-Modification Outstanding Recorded Investment | $ 628 | ||||
Financing receivable, modifications, subsequent default, number of contracts | Loan | 0 | 0 | 0 | 0 | |
Adjusted Interest Rate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | $ 0 | ||||
Extended Maturity | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 612 | ||||
Extended Maturity and Restructured Payments | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | ||||
Extended Maturity, Restructured Payments and Adjusted Interest Rate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | ||||
Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | Loan | 3 | ||||
Post-Modification Outstanding Recorded Investment | $ 628 | ||||
Commercial | Adjusted Interest Rate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | ||||
Commercial | Extended Maturity | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 612 | ||||
Commercial | Extended Maturity and Restructured Payments | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | 0 | ||||
Commercial | Extended Maturity, Restructured Payments and Adjusted Interest Rate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Post-Modification Outstanding Recorded Investment | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Credit Quality Indicators | ||
Loans | $ 5,887,470 | $ 2,555,509 |
Pass | ||
Credit Quality Indicators | ||
Loans | 5,592,761 | 2,473,185 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 95,231 | 18,052 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 51,002 | 23,442 |
Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Commercial | ||
Credit Quality Indicators | ||
Loans | 1,711,256 | 760,772 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 1,601,549 | 720,583 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 51,479 | 8,900 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 16,090 | 7,552 |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Mortgage warehouse | ||
Credit Quality Indicators | ||
Loans | 233,577 | 0 |
Mortgage warehouse | Pass | ||
Credit Quality Indicators | ||
Loans | 233,577 | |
Mortgage warehouse | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | |
Mortgage warehouse | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | |
Mortgage warehouse | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | |
Consumer | ||
Credit Quality Indicators | ||
Loans | 18,114 | 7,112 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 17,725 | 6,950 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 37 | 0 |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | 216 | 162 |
Consumer | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Construction and land | Real Estate | ||
Credit Quality Indicators | ||
Loans | 614,974 | 324,863 |
Construction and land | Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 605,062 | 320,987 |
Construction and land | Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 2,320 | 1,860 |
Construction and land | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 3,185 | 2,016 |
Construction and land | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real Estate | ||
Credit Quality Indicators | ||
Loans | 16,633 | 10,528 |
Farmland | Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 16,633 | 10,528 |
Farmland | Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Farmland | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Real Estate | ||
Credit Quality Indicators | ||
Loans | 866,275 | 349,202 |
Real estate | Single Family | Real Estate | ||
Credit Quality Indicators | ||
Loans | 559,310 | 297,917 |
Real estate | Single Family | Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 551,288 | 296,870 |
Real estate | Single Family | Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 1,432 | 236 |
Real estate | Single Family | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 1,978 | 726 |
Real estate | Single Family | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multifamily | Real Estate | ||
Credit Quality Indicators | ||
Loans | 306,965 | 51,285 |
Real estate | Multifamily | Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 306,965 | 51,285 |
Real estate | Multifamily | Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multifamily | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real estate | Multifamily | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Commercial real estate | Real Estate | ||
Credit Quality Indicators | ||
Loans | 2,426,641 | 1,103,032 |
Commercial real estate | Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 2,259,962 | 1,065,982 |
Commercial real estate | Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 39,963 | 7,056 |
Commercial real estate | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 29,533 | 12,986 |
Commercial real estate | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | ||
Credit Quality Indicators | ||
Loans | 185,787 | 49,902 |
Financial Asset Acquired with Credit Deterioration | PCI | ||
Credit Quality Indicators | ||
Loans | 148,476 | 40,830 |
Financial Asset Acquired with Credit Deterioration | Commercial | PCI | ||
Credit Quality Indicators | ||
Loans | 42,138 | 23,737 |
Financial Asset Acquired with Credit Deterioration | Mortgage warehouse | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | |
Financial Asset Acquired with Credit Deterioration | Consumer | PCI | ||
Credit Quality Indicators | ||
Loans | 136 | 0 |
Financial Asset Acquired with Credit Deterioration | Construction and land | Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 4,407 | 0 |
Financial Asset Acquired with Credit Deterioration | Farmland | Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real estate | Single Family | Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 4,612 | 85 |
Financial Asset Acquired with Credit Deterioration | Real estate | Multifamily | Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Commercial real estate | Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | $ 97,183 | $ 17,008 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | $ 19,255 | $ 12,808 | $ 12,808 | |||
Provision (recapture) charged to earnings | 18,021 | 5,239 | 6,603 | |||
Charge-offs | (11,272) | (171) | (197) | |||
Recoveries | 239 | 33 | 41 | |||
Net charge-offs (recoveries) | (11,033) | (138) | (156) | |||
Balance at end of period | 26,243 | 17,909 | 19,255 | |||
Allowance for loan losses (as a percent) | 0.45% | 0.75% | 0.73% | |||
Specific reserves | ||||||
Total specific reserves | $ 1,584 | $ 368 | $ 378 | |||
PCI reserves | 421 | 1,302 | 1,302 | |||
General reserves | 24,238 | 17,585 | 16,229 | |||
Total | 26,243 | 17,909 | 19,255 | 26,243 | 19,255 | 17,909 |
Commercial | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 8,554 | 5,588 | 5,588 | |||
Provision (recapture) charged to earnings | 13,491 | 2,633 | 3,100 | |||
Charge-offs | (10,898) | (150) | (175) | |||
Recoveries | 91 | 33 | 41 | |||
Net charge-offs (recoveries) | (10,807) | (117) | (134) | |||
Balance at end of period | 11,238 | 8,104 | 8,554 | |||
Specific reserves | ||||||
Total specific reserves | 1,418 | 368 | 378 | |||
PCI reserves | 421 | 1,302 | 1,302 | |||
General reserves | 9,399 | 6,884 | 6,424 | |||
Total | 11,238 | 5,588 | 5,588 | 11,238 | 8,554 | 8,104 |
Consumer | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 19 | 22 | 22 | |||
Provision (recapture) charged to earnings | 236 | 4 | 19 | |||
Charge-offs | (217) | (21) | (22) | |||
Recoveries | 86 | 0 | 0 | |||
Net charge-offs (recoveries) | (131) | (21) | (22) | |||
Balance at end of period | 124 | 5 | 19 | |||
Specific reserves | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI reserves | 0 | 0 | 0 | |||
General reserves | 124 | 19 | 5 | |||
Total | 19 | 22 | 19 | 124 | 19 | 5 |
Construction, Land and Farmland | Real Estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 2,244 | 1,315 | 1,315 | |||
Provision (recapture) charged to earnings | 1,359 | 552 | 929 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | 0 | |||
Balance at end of period | 3,603 | 1,867 | 2,244 | |||
Specific reserves | ||||||
Total specific reserves | 166 | 0 | 0 | |||
PCI reserves | 0 | 0 | 0 | |||
General reserves | 3,437 | 2,244 | 1,867 | |||
Total | 2,244 | 1,315 | 2,244 | 3,603 | 2,244 | 1,867 |
Residential | Real Estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 1,975 | 1,473 | 1,473 | |||
Provision (recapture) charged to earnings | 910 | 324 | 502 | |||
Charge-offs | (157) | 0 | 0 | |||
Recoveries | 62 | 0 | 0 | |||
Net charge-offs (recoveries) | (95) | 0 | 0 | |||
Balance at end of period | 2,790 | 1,797 | 1,975 | |||
Specific reserves | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI reserves | 0 | 0 | 0 | |||
General reserves | 2,790 | 1,975 | 1,797 | |||
Total | 2,790 | 1,473 | 1,975 | 2,790 | 1,975 | 1,797 |
Commercial real estate | Real Estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of period | 6,463 | 4,410 | 4,410 | |||
Provision (recapture) charged to earnings | 2,025 | 1,726 | 2,053 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs (recoveries) | 0 | 0 | 0 | |||
Balance at end of period | 8,488 | 6,136 | 6,463 | |||
Specific reserves | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI reserves | 0 | 0 | 0 | |||
General reserves | 8,488 | 6,463 | 6,136 | |||
Total | $ 8,488 | $ 4,410 | $ 4,410 | $ 8,488 | $ 6,463 | $ 6,136 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | $ 9,239 | $ 8,791 |
Loans collectively evaluated for impairment | 5,729,755 | 2,505,888 |
Total loans | 5,887,470 | 2,555,509 |
Commercial Portfolio Segment | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 4,190 | 3,228 |
Loans collectively evaluated for impairment | 1,898,505 | 733,807 |
Total loans | 1,944,833 | 760,772 |
Consumer | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 59 | 66 |
Loans collectively evaluated for impairment | 17,919 | 7,046 |
Total loans | 18,114 | 7,112 |
Construction, Land and Farmland | Real Estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 1,850 | 2,016 |
Loans collectively evaluated for impairment | 625,350 | 333,375 |
Total loans | 631,607 | 335,391 |
Residential | Real Estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 157 | 542 |
Loans collectively evaluated for impairment | 861,506 | 348,575 |
Total loans | 866,275 | 349,202 |
Commercial real estate | Real Estate | ||
Allowance, impairment methodology | ||
Loans individually evaluated for impairment | 2,983 | 2,939 |
Loans collectively evaluated for impairment | 2,326,475 | 1,083,085 |
Total loans | 2,426,641 | 1,103,032 |
Acquired Loans with Deteriorated Credit Quality | ||
Allowance, impairment methodology | ||
Loans receivable, net | 148,476 | 40,830 |
Total loans | 185,787 | 49,902 |
Acquired Loans with Deteriorated Credit Quality | Commercial Portfolio Segment | ||
Allowance, impairment methodology | ||
Loans receivable, net | 42,138 | 23,737 |
Acquired Loans with Deteriorated Credit Quality | Consumer | ||
Allowance, impairment methodology | ||
Loans receivable, net | 136 | 0 |
Acquired Loans with Deteriorated Credit Quality | Construction, Land and Farmland | Real Estate | ||
Allowance, impairment methodology | ||
Loans receivable, net | 4,407 | 0 |
Acquired Loans with Deteriorated Credit Quality | Residential | Real Estate | ||
Allowance, impairment methodology | ||
Loans receivable, net | 4,612 | 85 |
Acquired Loans with Deteriorated Credit Quality | Commercial real estate | Real Estate | ||
Allowance, impairment methodology | ||
Loans receivable, net | $ 97,183 | $ 17,008 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - PCI Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment, net | $ 5,861,361 | $ 2,536,239 |
Loans | 5,887,470 | 2,555,509 |
Acquired Loans with Deteriorated Credit Quality | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Loans held for investment, net | 148,055 | 39,528 |
Loans | $ 185,787 | $ 49,902 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - PCI Accretable Yield Rollforward (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 33,709,000 | $ 7,335,000 | $ 18,747,000 | $ 2,723,000 |
Additions | 0 | 0 | 18,073,000 | 1,459,000 |
Reclassifications (to) from nonaccretable | 9,309,000 | 278,000 | 11,195,000 | 6,499,000 |
Accretion | (4,149,000) | (820,000) | (9,146,000) | (3,888,000) |
Balance at end of period | 38,762,000 | 6,793,000 | 38,762,000 | 6,793,000 |
Cash collections of certain loans acquired in transfer accounted for as debt securities | $ 28,000 | $ 1,999,000 | $ 441,000 | $ 3,759,000 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Servicing Asset at Amortized Cost [Line Items] | |||||
Servicing asset | $ 241,733,000 | $ 71,609,000 | $ 241,733,000 | $ 71,609,000 | |
Summary of changes in related servicing assets | |||||
Balance at beginning of period | 3,793,000 | 1,183,000 | 1,304,000 | 1,215,000 | |
Servicing asset acquired through acquisition | 0 | 0 | 2,382,000 | 0 | |
Increase from loan sales | 534,000 | 27,000 | 995,000 | 204,000 | |
Servicing asset impairment | (188,000) | 0 | (188,000) | 0 | |
Amortization charged to income | (618,000) | (69,000) | (972,000) | (278,000) | |
Balance at end of period | 3,521,000 | $ 1,141,000 | 3,521,000 | $ 1,141,000 | |
Interest-only strip | |||||
Summary of changes in related servicing assets | |||||
Interest receivable | $ 0 | $ 0 | $ 0 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Assets measured at fair value | |||
Available for sale securities | $ 990,274,000 | $ 262,695,000 | |
Recurring | |||
Assets measured at fair value | |||
Available for sale securities | 990,274,000 | 262,695,000 | |
Loans held for sale | 8,468,000 | ||
Liabilities measured at fair value | 0 | ||
Transfer of assets from Level 2 to Level 3 | 0 | $ 0 | |
Transfer of assets from Level 3 to Level 2 | 0 | $ 0 | |
Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 0 | 0 | |
Loans held for sale | 0 | ||
Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 990,274,000 | 262,695,000 | |
Loans held for sale | 8,468,000 | ||
Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 0 | $ 0 | |
Loans held for sale | 0 | ||
Interest rate swaps | Financial institution counterparty: | |||
Assets measured at fair value | |||
Derivative asset | 7,000 | ||
Derivative liability | 5,909,000 | ||
Interest rate swaps | Financial institution counterparty: | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Derivative liability | 0 | ||
Interest rate swaps | Financial institution counterparty: | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 7,000 | ||
Derivative liability | 5,909,000 | ||
Interest rate swaps | Financial institution counterparty: | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Derivative liability | 0 | ||
Interest rate swaps | Commercial customer counterparty: | |||
Assets measured at fair value | |||
Derivative asset | 5,437,000 | ||
Interest rate swaps | Commercial customer counterparty: | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate swaps | Commercial customer counterparty: | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 5,437,000 | ||
Interest rate swaps | Commercial customer counterparty: | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate caps and collars | Financial institution counterparty: | |||
Assets measured at fair value | |||
Derivative asset | 20,000 | ||
Interest rate caps and collars | Financial institution counterparty: | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate caps and collars | Financial institution counterparty: | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 20,000 | ||
Interest rate caps and collars | Financial institution counterparty: | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate caps and collars | Commercial customer counterparty: | |||
Assets measured at fair value | |||
Derivative liability | 20,000 | ||
Interest rate caps and collars | Commercial customer counterparty: | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 0 | ||
Interest rate caps and collars | Commercial customer counterparty: | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 20,000 | ||
Interest rate caps and collars | Commercial customer counterparty: | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 0 | ||
Interest rate floor | Financial institution counterparty: | |||
Assets measured at fair value | |||
Derivative asset | 4,225,000 | ||
Interest rate floor | Financial institution counterparty: | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate floor | Financial institution counterparty: | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 4,225,000 | ||
Interest rate floor | Financial institution counterparty: | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | $ 0 |
Fair Value - Non-recurring Basi
Fair Value - Non-recurring Basis (Details) | Sep. 30, 2019USD ($)property | Dec. 31, 2018USD ($)property |
Assets measured at fair value | ||
Impaired loans, specific allowance | $ 1,584,000 | $ 368,000 |
Other real estate owned, number of properties | property | 2,000 | 0 |
Non-recurring | ||
Assets measured at fair value | ||
Impaired loans | $ 5,571,000 | $ 2,584,000 |
Other real estate owned, fair value disclosure | 4,625,000 | |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 1 Inputs | ||
Assets measured at fair value | ||
Impaired loans | 0 | 0 |
Other real estate owned, fair value disclosure | 0 | |
Non-recurring | Level 2 Inputs | ||
Assets measured at fair value | ||
Impaired loans | 0 | 0 |
Other real estate owned, fair value disclosure | 0 | |
Non-recurring | Level 3 Inputs | ||
Assets measured at fair value | ||
Impaired loans | 5,571,000 | $ 2,584,000 |
Other real estate owned, fair value disclosure | $ 4,625,000 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Held to maturity investments | $ 35,177 | |
Financial liabilities: | ||
Securities sold under agreements to repurchase | 2,787 | $ 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 252,592 | 84,449 |
Held to maturity investments | 33,119 | |
Loans held for sale | 10,715 | 1,258 |
Loans held for investment | 2,555,494 | |
Accrued interest receivable | 19,893 | 8,828 |
Bank-owned life insurance | 80,411 | 22,064 |
Servicing asset | 3,521 | 834 |
Other investments | 89,795 | 22,822 |
Financial liabilities: | ||
Deposits | 5,877,846 | 2,622,428 |
Advances from FHLB | 752,907 | 28,019 |
Accrued interest payable | 7,355 | 1,135 |
Subordinated debentures and subordinated notes | 72,284 | 16,691 |
Securities sold under agreements to repurchase | 2,787 | |
Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held to maturity investments | 0 | |
Loans held for sale | 0 | 0 |
Loans held for investment | 0 | |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | 0 | 0 |
Securities sold under agreements to repurchase | 0 | |
Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 252,592 | 84,449 |
Held to maturity investments | 35,177 | |
Loans held for sale | 10,715 | 1,258 |
Loans held for investment | 0 | |
Accrued interest receivable | 19,893 | 8,828 |
Bank-owned life insurance | 80,411 | 22,064 |
Servicing asset | 3,521 | 834 |
Other investments | 89,795 | 22,822 |
Financial liabilities: | ||
Deposits | 5,772,171 | 2,506,379 |
Advances from FHLB | 778,243 | 28,063 |
Accrued interest payable | 7,355 | 1,135 |
Subordinated debentures and subordinated notes | 72,284 | 16,691 |
Securities sold under agreements to repurchase | 2,787 | |
Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held to maturity investments | 0 | |
Loans held for sale | 0 | 0 |
Loans held for investment | 2,553,376 | |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Other investments | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | 0 | $ 0 |
Securities sold under agreements to repurchase | 0 | |
Mortgage warehouse | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 233,577 | |
Mortgage warehouse | Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Mortgage warehouse | Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Mortgage warehouse | Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 237,945 | |
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 5,654,027 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | $ 5,681,565 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) | Sep. 30, 2019 | May 31, 2019 |
Derivative [Line Items] | ||
Notional Amount | $ 898,298,000 | |
Asset Derivative | ||
Offsetting derivative assets/liabilities | 28,000 | |
Net derivatives in the consolidated balance sheets | 9,717,000 | |
Liability Derivative | ||
Offsetting derivative assets/liabilities | 28,000 | |
Net derivatives in the consolidated balance sheets | 5,957,000 | |
Interest rate floor | ||
Derivative [Line Items] | ||
Notional Amount | $ 275,000,000 | |
Designated as hedging instrument | Interest rate floor | ||
Derivative [Line Items] | ||
Notional Amount | 275,000,000 | |
Asset Derivative | ||
Gross derivatives | 4,225,000 | |
Liability Derivative | ||
Gross derivatives | 0 | |
Non-hedging derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 623,298,000 | |
Asset Derivative | ||
Gross derivatives | 5,464,000 | |
Liability Derivative | ||
Gross derivatives | 5,929,000 | |
Financial institution counterparty: | Interest rate floor | ||
Asset Derivative | ||
Gross derivatives | 4,225,000 | |
Financial institution counterparty: | Interest rate swaps | ||
Asset Derivative | ||
Gross derivatives | 7,000 | |
Liability Derivative | ||
Gross derivatives | 5,909,000 | |
Financial institution counterparty: | Interest rate caps and collars | ||
Asset Derivative | ||
Gross derivatives | 20,000 | |
Financial institution counterparty: | Non-hedging derivatives | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 227,438,000 | |
Asset Derivative | ||
Gross derivatives | 7,000 | |
Liability Derivative | ||
Gross derivatives | 5,909,000 | |
Financial institution counterparty: | Non-hedging derivatives | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | 84,211,000 | |
Asset Derivative | ||
Gross derivatives | 20,000 | |
Liability Derivative | ||
Gross derivatives | 0 | |
Commercial customer counterparty: | Interest rate swaps | ||
Asset Derivative | ||
Gross derivatives | 5,437,000 | |
Commercial customer counterparty: | Interest rate caps and collars | ||
Liability Derivative | ||
Gross derivatives | 20,000 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 227,438,000 | |
Asset Derivative | ||
Gross derivatives | 5,437,000 | |
Liability Derivative | ||
Gross derivatives | 0 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | 84,211,000 | |
Asset Derivative | ||
Gross derivatives | 0 | |
Liability Derivative | ||
Gross derivatives | $ 20,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - AOCI Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Interest rate floor | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other comprehensive income on cash flow derivative | $ 413 | $ 2,033 |
Interest rate floor | Interest Income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) | (334) | (473) |
Interest rate floor | Noninterest income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) recognized in noninterest income | 0 | 0 |
Interest rate swaps | Non-hedging derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other comprehensive income on cash flow derivative | 0 | 0 |
Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) | 0 | 0 |
Interest rate swaps | Noninterest income | Non-hedging derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain (loss) recognized in noninterest income | $ 604 | $ 474 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) | 1 Months Ended | |
May 31, 2019 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 898,298,000 | |
Interest rate floor | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 275,000,000 | |
Term of contract | 2 years | |
Floor interest rate | 2.43% | |
Derivative, purchase option price | $ 2,665,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 898,298 |
Non-hedging derivatives | |
Derivative [Line Items] | |
Notional Amount | 623,298 |
Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Notional Amount | $ 227,438 |
Maturity | 3 years 2 months 12 days |
Fair Value | $ (5,902) |
Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Notional Amount | $ 84,211 |
Maturity | 1 year 9 months 18 days |
Fair Value | $ 20 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Notional Amount | $ 227,438 |
Maturity | 3 years 2 months 12 days |
Fair Value | $ 5,439 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Notional Amount | $ 84,211 |
Maturity | 1 year 9 months 18 days |
Fair Value | $ (20) |
Prime Rate | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.25% |
Prime Rate | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.25% |
Minimum | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Fixed Rate | 2.944% |
Minimum | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Fixed Rate | 3.00% |
Minimum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Fixed Rate | 2.944% |
Minimum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Fixed Rate | 2.50% |
Minimum | LIBOR | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | LIBOR | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Maximum | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Fixed Rate | 8.47% |
Maximum | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Fixed Rate | 5.80% |
Maximum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Fixed Rate | 8.47% |
Maximum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Fixed Rate | 5.80% |
Maximum | LIBOR | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 5.00% |
Maximum | LIBOR | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 3.75% |
Maximum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 5.00% |
Maximum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 3.75% |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 1,942,581 | $ 967,867 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 1,909,221 | 962,436 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 33,360 | $ 5,431 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset | $ 15,278 | $ 15,278 |
Lease liability | 16,125 | 16,125 |
Lease, Cost [Abstract] | ||
Operating lease cost | 1,157 | 3,920 |
Variable lease cost | 293 | 700 |
Net lease cost | $ 1,450 | 4,620 |
Operating cash flows from operating leases | $ 3,399 | |
Weighted-average remaining lease term - operating leases, in years | 3 years 10 months 24 days | 3 years 10 months 24 days |
Weighted-average discount rate - operating leases | 1.50% | 1.50% |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 1 year | |
Extension options | 5 years | 5 years |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 8 years | |
Extension options | 10 years | 10 years |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Within one year | $ 3,908 |
After one but within two years | 3,390 |
After two but within three years | 2,819 |
After three but within four years | 2,586 |
After four but within five years | 1,938 |
After five years | 2,549 |
Total undiscounted cash flows | 17,190 |
Less: Discount on cash flows | (1,065) |
Total lease liability | $ 16,125 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary Of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Intangible Asset | $ 92,001 | $ 23,424 | |
Impairment | 188 | ||
Accumulated Amortization | 16,450 | 7,528 | |
Net Intangible Asset | 75,363 | $ 15,896 | |
Amortization of intangibles | $ 8,922 | $ 3,087 | |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Amortization Period | 7 years 2 months 12 days | 7 years 8 months 12 days | |
Gross Intangible Asset | $ 81,769 | $ 16,051 | |
Impairment | 0 | ||
Accumulated Amortization | 11,755 | 4,376 | |
Net Intangible Asset | $ 70,014 | $ 11,675 | |
Servicing asset | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Amortization Period | 7 years 1 month 6 days | 6 years 9 months 18 days | |
Gross Intangible Asset | $ 5,468 | $ 2,091 | |
Impairment | 188 | ||
Accumulated Amortization | 1,759 | 787 | |
Net Intangible Asset | $ 3,521 | $ 1,304 | |
Intangible lease assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted Amortization Period | 1 year 8 months 12 days | 2 years 8 months 12 days | |
Gross Intangible Asset | $ 4,764 | $ 5,282 | |
Impairment | 0 | ||
Accumulated Amortization | 2,936 | 2,365 | |
Net Intangible Asset | $ 1,828 | $ 2,917 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Summary of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance as of beginning of period | $ 161,447 |
Effect of Green acquisition | 209,016 |
Balance as of end of period | $ 370,463 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand accounts | $ 1,473,126 | $ 626,283 |
Interest-bearing demand accounts | 373,997 | 146,969 |
Savings accounts | 87,981 | 33,147 |
Limited access money market accounts | 2,066,315 | 1,133,045 |
Certificates of deposit, greater than $100 | 1,212,718 | 392,935 |
Certificates of deposit, less than $100 | 663,709 | 290,049 |
Total deposits | $ 5,877,846 | $ 2,622,428 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2019 | $ 519,916 | |
2020 | 1,092,676 | |
2021 | 198,091 | |
2022 | 38,773 | |
2023 | 26,971 | |
Total | $ 1,876,427 | $ 682,984 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Demand deposit overdrafts reclassified as loans | $ 168 | $ 153 |
Brokered deposits | $ 416,125 | $ 234,190 |
Advances from the Federal Hom_3
Advances from the Federal Home Loan Bank - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 752,907 | $ 28,019 |
Availability to borrow additional funds | $ 822,980 | |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank, rate | 1.51% |
Advances from the Federal Hom_4
Advances from the Federal Home Loan Bank - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2019 | $ 225,000 | |
2020 | 425,000 | |
2021 | 75,000 | |
2022 | 27,907 | |
Total | $ 752,907 | $ 28,019 |
Subordinated Debentures and S_3
Subordinated Debentures and Subordinated Notes (Details) $ in Thousands | Jan. 01, 2019USD ($) | Sep. 30, 2019USD ($)issuance | Dec. 31, 2018USD ($) |
LIBOR | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.10% | ||
Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 40,000 | $ 5,000 | |
Unamortized debt premium (discount) | 2,315 | (11) | |
Total subordinated debt | 42,315 | 4,989 | |
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 8.50% | ||
Redemption price percentage | 100.00% | ||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 6.685% | ||
Subordinated Debentures Trust Preferred Securities | |||
Debt Instrument [Line Items] | |||
Debt outstanding | 33,868 | 11,702 | |
Unamortized debt premium (discount) | (3,899) | 0 | |
Total subordinated debt | 29,969 | $ 11,702 | |
Subordinated Debentures Trust Preferred Securities | Patriot Bancshares Capital Trust I | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 5,155 | ||
Interest rate | 11.90% | ||
Subordinated Debentures Trust Preferred Securities | Patriot Bancshares Capital Trust I | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.85% | ||
Subordinated Debentures Trust Preferred Securities | Patriot Bancshares Capital Trust II | |||
Debt Instrument [Line Items] | |||
Debt outstanding | $ 17,011 | ||
Interest rate | 11.90% | ||
Subordinated Debentures Trust Preferred Securities | Patriot Bancshares Capital Trust II | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.80% | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Number of issuances | issuance | 2 | ||
Green Bancorp, Inc. | Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Financial liabilities assumed | $ 35,000 |
Stock-Based and Liability-Cla_3
Stock-Based and Liability-Classified Awards - 2010 Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 0 | $ 11,000 | $ 2,000 | $ 21,000 |
Stock-Based and Liability-Cla_4
Stock-Based and Liability-Classified Awards - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($) | Jan. 01, 2018 | Jan. 01, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Shares Underlying Options | |||||
Outstanding at beginning of period (in shares) | 305,000 | 275,000 | 305,000 | 305,000 | |
Exercised (in shares) | (17,500) | (11,500) | |||
Outstanding at the end of period (in shares) | 257,500 | 293,500 | 275,000 | ||
Options exercisable at end of period (in shares) | 289,500 | ||||
Weighted Exercise Price | |||||
Outstanding at beginning of period (in dollars per share) | $ 10.16 | $ 10.12 | $ 10.16 | $ 10.16 | |
Exercised (in dollars per share) | 10.24 | 10.48 | |||
Outstanding at the end of period (in dollars per share) | $ 10.28 | 10.15 | $ 10.12 | ||
Options exercisable at end of period (in dollars per share) | $ 10.13 | ||||
Weighted Average Contractual Term | |||||
Outstanding | 2 years 4 months 20 days | 3 years 7 months 2 days | 1 year 7 months 13 days | 2 years 9 months 10 days | |
Exercisable | 2 years 9 months | ||||
Aggregate Intrinsic Value | |||||
Outstanding | $ 3,699,000 | $ 3,098,000 | |||
Unrecognized compensation expense | $ 0 | $ 4,000 | $ 2,000 |
Stock-Based and Liability-Cla_5
Stock-Based and Liability-Classified Awards - 2010 Plan - Restricted Stock Units (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Non Performance Based Stock Options | |||
Weighted Average Grant Date Fair Value | |||
Unrecognized compensation expense | $ 0 | $ 4,000 | $ 2,000 |
Non-performance based stock options exercised | 454,000 | 328,000 | |
Non-performance based restricted stock units vested | $ 0 | $ 713,000 | |
Restricted Stock Units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 24,250 | ||
Vested into shares (in shares) | (23,750) | ||
Forfeited (in shares) | (500) | ||
Outstanding at the end of the period (in shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 13.19 | ||
Vested into shares (in dollars per share) | 12.14 | ||
Forfeited (in dollars per share) | 10.85 | ||
Outstanding at the end of the period (in dollars per share) | $ 0 | ||
Unrecognized compensation expense | $ 0 | $ 4,000 | $ 0 |
Stock-Based and Liability-Cla_6
Stock-Based and Liability-Classified Awards - Omnibus Plan (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jan. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accelerated compensation cost | $ 5,535 | |||||
Stock based compensation expense | $ 1,054 | $ 928 | 1,691 | $ 3,054 | ||
Veritex Green Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | 376 | 1,147 | ||||
Non-performance based equity restricted stock units | Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares that accelerated vested (in shares) | 133,455 | |||||
Accelerated compensation cost | $ 5,533 | $ 1,418 | ||||
Performance based equity restricted stock units | Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares that accelerated vested (in shares) | 51,284 | |||||
Percentage of outstanding shares canceled | 67.00% | |||||
Number of shares canceled (in shares) | 12,704 | |||||
Stock option | Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares that accelerated vested (in shares) | 320,405 | |||||
Merger and Acquisition Expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 10,129 |
Stock-Based and Liability-Cla_7
Stock-Based and Liability-Classified Awards - Vesting (Details) | 9 Months Ended |
Sep. 30, 2019installmentcompanyshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, installments | installment | 3 |
Number of peer companies | company | 15 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, installments | installment | 3 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, installments | installment | 5 |
Performance based equity restricted stock units | Below the 24.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 24.90% |
Vesting % | 0.00% |
Performance based equity restricted stock units | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting % | 50.00% |
Performance based equity restricted stock units | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting % | 100.00% |
Performance based equity restricted stock units | At or above the 75th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 75.00% |
Vesting % | 150.00% |
Performance based equity restricted stock units | Minimum | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 25.00% |
Performance based equity restricted stock units | Minimum | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 50.00% |
Performance based equity restricted stock units | Maximum | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 49.90% |
Performance based equity restricted stock units | Maximum | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 74.90% |
Omnibus Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 5 years |
Omnibus Plan | Performance based equity restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | shares | 100,000 |
Omnibus Plan | Time-based stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | shares | 10,000 |
Omnibus Plan | Time-based restricted stock unit awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | shares | 15,000 |
Stock-Based and Liability-Cla_8
Stock-Based and Liability-Classified Awards - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan and Veritex Green Plan | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Dividend yield (as a percent) | 0.00% | |
Expected volatility, minimum (as a percent) | 29.13% | 27.87% |
Expected volatility, maximum (as a percent) | 29.65% | 37.55% |
Risk-free interest rate, minimum (as a percent) | 1.72% | 1.06% |
Risk-free interest rate, maximum (as a percent) | 2.51% | 2.94% |
Minimum | ||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Dividend yield (as a percent) | 1.87% | |
Expected life | 5 years | 5 years |
Maximum | ||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | ||
Dividend yield (as a percent) | 2.01% | |
Expected life | 7 years 6 months 4 days | 7 years 6 months |
Stock-Based and Liability-Cla_9
Stock-Based and Liability-Classified Awards - Stock Compensation Expense and Liability Award Compensation Expense (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 1,054 | $ 928 | $ 1,691 | $ 3,054 | ||
Accelerated compensation cost | 5,535 | |||||
Veritex Green Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | 376 | 1,147 | ||||
Non-performance based equity restricted stock units | Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accelerated compensation cost | 5,533 | 1,418 | ||||
Liability Awards | Omnibus Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expensed and capitalized amount | $ 0 | $ 1,403 | $ 1,403 | |||
Merger and Acquisition Expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock based compensation expense | $ 10,129 |
Stock-Based and Liability-Cl_10
Stock-Based and Liability-Classified Awards - Omnibus Plan - Options (Details) - Omnibus Plan - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nonperformance-based stock options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 449,520 | 332,706 | 332,706 | |
Granted (in shares) | 166,971 | 125,593 | ||
Conversion to equity awards (in shares) | 253,633 | |||
Forfeited (in shares) | (28,240) | (2,076) | ||
Exercised (in shares) | (12,610) | (1,983) | ||
Outstanding at the end of period (in shares) | 829,274 | 454,240 | 449,520 | 332,706 |
Options exercisable at end of period (in shares) | 417,183 | 122,329 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 24.47 | $ 22.71 | $ 22.71 | |
Granted (in dollars per share) | 23.91 | 27.95 | ||
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 25.82 | 27.59 | ||
Exercised (in dollars per share) | 15.42 | 14.95 | ||
Outstanding at the end of period (in dollars per share) | 23.50 | 24.12 | $ 24.47 | $ 22.71 |
Options exercisable at end of period (in dollars per share) | 24.59 | $ 18.38 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 22.38 | |||
Weighted Average Contractual Term | ||||
Outstanding | 8 years 5 months 1 day | 8 years 5 months 1 day | 8 years 2 months 26 days | 8 years 10 months 9 days |
Exercisable | 7 years 6 months 10 days | 7 years 3 months 14 days | ||
Aggregate Intrinsic Value | ||||
Outstanding | $ 632,000 | |||
Exercisable | $ (135,000) | |||
Liability Non Performance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 | |
Granted (in shares) | 253,633 | 0 | ||
Conversion to equity awards (in shares) | 253,633 | |||
Forfeited (in shares) | 0 | 0 | ||
Exercised (in shares) | 0 | 0 | ||
Outstanding at the end of period (in shares) | 0 | 0 | 0 | |
Options exercisable at end of period (in shares) | 0 | 0 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Granted (in dollars per share) | 21.38 | 0 | ||
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 0 | 0 | ||
Exercised (in dollars per share) | 0 | 0 | ||
Outstanding at the end of period (in dollars per share) | 0 | 0 | $ 0 | $ 0 |
Options exercisable at end of period (in dollars per share) | 0 | $ 0 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0 | |||
Weighted Average Contractual Term | ||||
Outstanding | ||||
Exercisable | ||||
Aggregate Intrinsic Value | ||||
Outstanding | $ 0 | |||
Exercisable | ||||
Unrecognized compensation expense | 0 | |||
Stock option | ||||
Aggregate Intrinsic Value | ||||
Unrecognized compensation expense | $ 1,296,000 | $ 2,330,000 | $ 2,103,000 | |
Requisite service period to recognize compensation cost | 2 years 7 months 13 days |
Stock-Based and Liability-Cl_11
Stock-Based and Liability-Classified Awards - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Non-performance based equity restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 133,455 | 150,722 | |
Granted (in shares) | 104,827 | 54,650 | |
Conversion to equity awards (in shares) | 165,739 | ||
Vested into shares (in shares) | (229,031) | (39,311) | |
Forfeited (in shares) | (3,929) | ||
Outstanding at the end of the period (in shares) | 174,990 | 162,132 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 19.67 | $ 13.29 | |
Granted (in dollars per share) | 23.09 | 29.29 | |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 22.06 | 27.19 | |
Forfeited (in dollars per share) | 26.85 | ||
Outstanding at the end of the period (in dollars per share) | $ 21.55 | $ 23.85 | |
Non-performance based liability restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 0 | 0 | |
Granted (in shares) | 165,739 | 0 | |
Conversion to equity awards (in shares) | 165,739 | ||
Vested into shares (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | ||
Outstanding at the end of the period (in shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | $ 0 | |
Granted (in dollars per share) | 21.38 | 0 | |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | 0 | ||
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 0 | |
Performance based equity restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 63,988 | 53,594 | |
Granted (in shares) | 38,360 | 40,269 | |
Conversion to equity awards (in shares) | 32,249 | ||
Vested into shares (in shares) | (51,284) | (26,623) | |
Forfeited (in shares) | (17,827) | (898) | |
Outstanding at the end of the period (in shares) | 65,486 | 66,342 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 21.28 | $ 8.72 | |
Granted (in dollars per share) | 22.47 | 27.59 | |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 25.31 | 18.83 | |
Forfeited (in dollars per share) | 21.38 | 27.59 | |
Outstanding at the end of the period (in dollars per share) | $ 22.73 | $ 25.56 | |
Performance based restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 0 | 0 | |
Granted (in shares) | 32,249 | 0 | |
Conversion to equity awards (in shares) | (32,249) | ||
Vested into shares (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Outstanding at the end of the period (in shares) | 0 | 0 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | $ 0 | |
Granted (in dollars per share) | 21.38 | 0 | |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | 0 | 0 | |
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 0 | |
Restricted Stock Units | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 2,484,000 | $ 3,928,000 | $ 3,430,000 |
Requisite service period to recognize compensation cost | 2 years 3 months 18 days | ||
Liability Restricted Stock Units | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 0 |
Stock-Based and Liability-Cl_12
Stock-Based and Liability-Classified Awards - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - Omnibus Plan - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Non-performance based equity restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-performance-based stock options exercised | $ 335 | $ 54 |
Non-performance based restricted stock units vested | 5,669 | 1,173 |
Performance based equity restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-performance based restricted stock units vested | $ 1,089 | $ 745 |
Stock-Based and Liability-Cl_13
Stock-Based and Liability-Classified Awards - Veritex Green Omnibus Plan Options (Details) - Veritex Green Omnibus Plan $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | |
Nonperformance-based stock options | ||
Shares Underlying Options | ||
Outstanding at beginning of period (in shares) | shares | 0 | |
Converted in acquisition of Green (in shares) | shares | 304,778 | |
Granted (in shares) | shares | 211,793 | |
Forfeited (in shares) | shares | (10,217) | |
Exercised (in shares) | shares | (82,451) | |
Outstanding at the end of period (in shares) | shares | 423,903 | 0 |
Options exercisable at end of period (in shares) | shares | 213,427 | |
Weighted Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 0 | |
Converted in acquisition of Green (in dollars per share) | $ 15.41 | |
Granted (in dollars per share) | 21.38 | |
Forfeited (in dollars per share) | 12.21 | |
Exercised (in dollars per share) | 13.43 | |
Outstanding at the end of period (in dollars per share) | 18.85 | $ 0 |
Options exercisable at end of period (in dollars per share) | 16.36 | |
Weighted average fair value of options granted during the period (in dollars per share) | $ 24.22 | |
Weighted Average Contractual Term | ||
Outstanding | 8 years 3 days | |
Exercisable | 6 years 10 months 20 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ | $ 2,293 | |
Exercisable | $ | 1,686 | |
Stock option | ||
Aggregate Intrinsic Value | ||
Unrecognized compensation expense | $ | $ 1,198 | |
Requisite service period to recognize compensation cost | 2 years 3 months 18 days |
Stock-Based and Liability-Cl_14
Stock-Based and Liability-Classified Awards - Veritex Green Omnibus Plan Restricted Stock Units (Details) - Veritex Green Omnibus Plan $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Non-performance based equity restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at the beginning of the period (in shares) | shares | 0 |
Number of shares awarded (in shares) | shares | 116,250 |
Outstanding at the end of the period (in shares) | shares | 116,250 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 21.38 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 21.38 |
Performance based equity restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding at the beginning of the period (in shares) | shares | 0 |
Number of shares awarded (in shares) | shares | 26,145 |
Forfeited (in shares) | shares | (508) |
Outstanding at the end of the period (in shares) | shares | 25,637 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 21.38 |
Forfeited (in dollars per share) | $ / shares | 21.38 |
Outstanding at the end of the period (in dollars per share) | $ / shares | $ 21.38 |
Restricted Stock Units | |
Weighted Average Grant Date Fair Value | |
Unrecognized compensation expense | $ | $ 2,243 |
Requisite service period to recognize compensation cost | 2 years 3 months 18 days |
Nonperformance-based stock options | |
Weighted Average Grant Date Fair Value | |
Non-performance-based stock options exercised | $ | $ 2,088 |
Stock-Based and Liability-Cl_15
Stock-Based and Liability-Classified Awards - Green Bancorp Inc. 2010 Option Plan (Details) | 9 Months Ended |
Sep. 30, 2019planshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock and incentive plans assumed in acquisition | plan | 2 |
Green Bancorp Inc. 2010 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Converted in acquisition of Green (in shares) | 768,628 |
Number of shares awarded under stock options (in shares) | 0 |
Exercise of employee stock options (in shares) | 100,544 |
Shares outstanding (in shares) | 661,843 |
Green Bancorp Inc. 2006 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Converted in acquisition of Green (in shares) | 11,850 |
Number of shares awarded under stock options (in shares) | 11,850 |
Shares outstanding (in shares) | 0 |
Restricted Stock Units | Green Bancorp Inc. 2010 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-option equity instruments, granted (in shares) | 0 |
Restricted Stock Units | Green Bancorp Inc. 2006 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-option equity instruments, granted (in shares) | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Income Tax Disclosure [Abstract] | |||||
Income tax expense for the period | $ 7,595 | $ 1,448 | $ 16,953 | $ 7,309 | |
Effective tax rate | 21.70% | 13.90% | 21.60% | 19.80% | |
Liability for uncertain tax positions assumed | $ 2,155 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Qualified affordable housing investment | $ 3,385 | $ 3,663 |
Qualified affordable housing project investments, unfunded commitment | $ 1,554 | $ 2,510 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Total capital (to risk-weighted assets) | |||
Actual Amount | $ 850,136,000 | $ 850,136,000 | $ 394,419,000 |
Actual Ratio (as a percent) | 12.26% | 12.26% | 12.98% |
For Capital Adequacy Purposes Amount | $ 554,738,000 | $ 554,738,000 | $ 243,093,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets) | |||
Actual Amount | $ 780,700,000 | $ 780,700,000 | $ 370,175,000 |
Actual Ratio (as a percent) | 11.26% | 11.26% | 12.18% |
For Capital Adequacy Purposes Amount | $ 416,004,000 | $ 416,004,000 | $ 182,352,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | 6.00% |
Common equity tier 1 to risk-weighted assets | |||
Actual Amount | $ 749,913,000 | $ 749,913,000 | $ 358,473,000 |
Actual Ratio (as a percent) | 10.82% | 10.82% | 11.80% |
For Capital Adequacy Purposes Amount | $ 311,886,000 | $ 311,886,000 | $ 136,706,000 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | 4.50% |
Tier 1 capital (to average assets) | |||
Actual Amount | $ 780,700,000 | $ 780,700,000 | $ 370,175,000 |
Actual Ratio (as a percent) | 10.33% | 10.33% | 12.04% |
For Capital Adequacy Purposes Amount | $ 302,304,000 | $ 302,304,000 | $ 122,982,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | 4.00% |
Dividends paid | $ 6,713,000 | $ 20,312,000 | |
Bank | |||
Total capital (to risk-weighted assets) | |||
Actual Amount | $ 831,796,000 | $ 831,796,000 | $ 353,640,000 |
Actual Ratio (as a percent) | 12.00% | 12.00% | 11.64% |
For Capital Adequacy Purposes Amount | $ 554,531,000 | $ 554,531,000 | $ 243,052,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 693,163,000 | $ 693,163,000 | $ 303,814,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | |||
Actual Amount | $ 804,675,000 | $ 804,675,000 | $ 334,385,000 |
Actual Ratio (as a percent) | 11.61% | 11.61% | 11.01% |
For Capital Adequacy Purposes Amount | $ 415,853,000 | $ 415,853,000 | $ 182,226,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 554,470,000 | $ 554,470,000 | $ 242,968,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 8.00% | 8.00% |
Common equity tier 1 to risk-weighted assets | |||
Actual Amount | $ 804,675,000 | $ 804,675,000 | $ 334,385,000 |
Actual Ratio (as a percent) | 11.61% | 11.61% | 11.01% |
For Capital Adequacy Purposes Amount | $ 311,890,000 | $ 311,890,000 | $ 136,670,000 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 450,507,000 | $ 450,507,000 | $ 197,412,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% | 6.50% |
Tier 1 capital (to average assets) | |||
Actual Amount | $ 804,675,000 | $ 804,675,000 | $ 334,385,000 |
Actual Ratio (as a percent) | 10.64% | 10.64% | 10.87% |
For Capital Adequacy Purposes Amount | $ 302,509,000 | $ 302,509,000 | $ 123,049,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 378,137,000 | $ 378,137,000 | $ 153,811,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% | 5.00% |
Dividends paid | $ 6,713,000 | $ 20,312,000 | $ 0 |
Dividends paid (in dollars per share) | $ 0.125 | $ 0.125 |
Branch Assets and Liabilities_2
Branch Assets and Liabilities Held For Sale (Details) - USD ($) | May 10, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from divestiture of business | $ 7,153,000 | |||
Loss on disposal | $ 474,000 | |||
Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Branch assets held for sale | $ 0 | $ 85,307,000 | $ 0 | |
Branch liabilities held for sale | $ 0 | $ 52,682,000 | $ 0 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 370,463,000 | $ 370,463,000 | $ 161,447,000 | |||
Merger and acquisition expense | $ 1,035,000 | $ 2,692,000 | $ 38,042,000 | $ 4,070,000 | ||
Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 352 | 10,221 | 226,581 | 74,706 | ||
Exercise of employee stock options (in shares) | 92,572 | 211,246 | 7,401 | |||
Green Bancorp, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 209,016,000 | |||||
Share conversion rate (in shares) | 0.79 | |||||
Exercise of employee stock options (in shares) | 1,085,256 | |||||
Merger and acquisition expense | $ 1,035,000 | $ 2,692,000 | $ 38,042,000 | $ 3,104,000 | ||
Premium on time deposits | $ 7,318,000 | |||||
Amortization period | 1 year 8 months 12 days | |||||
Green Bancorp, Inc. | Subordinated Debt | ||||||
Business Acquisition [Line Items] | ||||||
Purchase premium | $ 3,134,000 | |||||
Purchase discount | $ 4,066,000 | |||||
Purchase premium, accretion period | 2 years | |||||
Purchase discount, amortization period | 17 years 6 months | |||||
Green Bancorp, Inc. | Core deposit intangibles | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets, net | $ 65,718,000 | |||||
Acquired intangible assets, weighted average useful life | 8 years | |||||
Green Bancorp, Inc. | Common Stock | ||||||
Business Acquisition [Line Items] | ||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 497,594 | |||||
Green Bancorp, Inc. | Stock-Based Compensation | ||||||
Business Acquisition [Line Items] | ||||||
Merger and acquisition expense | 17,082,000 | |||||
Green Bancorp, Inc. | Severance Payments | ||||||
Business Acquisition [Line Items] | ||||||
Merger and acquisition expense | 9,491,000 | |||||
Green Bancorp, Inc. | Legal And Professional Fees | ||||||
Business Acquisition [Line Items] | ||||||
Merger and acquisition expense | 5,297,000 | |||||
Green Bancorp, Inc. | Data Processing | ||||||
Business Acquisition [Line Items] | ||||||
Merger and acquisition expense | $ 1,824,000 |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - Green Bancorp, Inc. $ / shares in Units, shares in Thousands, $ in Thousands | Jan. 01, 2019USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Equivalent shares of Veritex common stock issued in exchange for Green outstanding shares (in shares) | shares | 29,532,957 |
Veritex common stock price per share as of close date (in dollars per share) | $ / shares | $ 21.38 |
Fair value of Veritex common stock issued in exchange for Green outstanding shares | $ 631,415 |
Fair value of Green equity-based awards attributed to pre-combination service | 12,484 |
Cash consideration to Green shareholders | 10 |
Total consideration transferred | $ 643,909 |
Business Combinations - Acquire
Business Combinations - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Assets | |||
Goodwill | $ 370,463 | $ 161,447 | |
Green Bancorp, Inc. | |||
Assets | |||
Cash and cash equivalents | $ 112,720 | ||
Investment securities | 660,792 | ||
Other securities | 40,287 | ||
Loans held for sale | 9,360 | ||
Loans held for investment | 3,245,248 | ||
Accrued interest receivable | 11,395 | ||
Bank owned life insurance | 56,841 | ||
Bank premises, furniture and equipment | 36,855 | ||
Investment in unconsolidated subsidiaries | 666 | ||
Intangible assets | 65,718 | ||
Goodwill | 209,016 | ||
Other assets | 12,649 | ||
Right of use asset | 9,373 | ||
Deferred Taxes | 11,930 | ||
Current taxes | 1,812 | ||
Branch assets held for sale | 85,307 | ||
Total assets | 4,569,969 | ||
Liabilities | |||
Non-interest-bearing deposits | 825,364 | ||
Interest-bearing deposits | 1,300,825 | ||
Certificates and other time deposits | 1,346,915 | ||
Accounts payable and other accrued expenses | 26,261 | ||
Lease liability | 9,373 | ||
Accrued interest payable | 5,181 | ||
Securities sold under agreements to repurchase | 3,226 | ||
Advances from Federal Home Loan Bank | 300,000 | ||
Subordinated debentures and subordinated notes | 56,233 | ||
Branch liabilities held for sale | 52,682 | ||
Total liabilities | 3,926,060 | ||
Measurement Period Adjustments | |||
Investment securities | (240) | ||
Loans held for investment | (244) | ||
Accrued interest receivable | (278) | ||
Bank premises, furniture and equipment | (2,571) | ||
Goodwill | 2,195 | ||
Other assets | 404 | ||
Deferred Taxes | 395 | ||
Current taxes | 13 | ||
Total assets | (326) | ||
Accounts payable and other accrued expenses | (326) | ||
Total liabilities | $ (326) | ||
Previously Reported | Green Bancorp, Inc. | |||
Assets | |||
Cash and cash equivalents | 112,720 | ||
Investment securities | 661,032 | ||
Other securities | 40,287 | ||
Loans held for sale | 9,360 | ||
Loans held for investment | 3,245,492 | ||
Accrued interest receivable | 11,673 | ||
Bank owned life insurance | 56,841 | ||
Bank premises, furniture and equipment | 39,426 | ||
Investment in unconsolidated subsidiaries | 666 | ||
Intangible assets | 65,718 | ||
Goodwill | 206,821 | ||
Other assets | 12,245 | ||
Right of use asset | 9,373 | ||
Deferred Taxes | 11,535 | ||
Current taxes | 1,799 | ||
Branch assets held for sale | 85,307 | ||
Total assets | 4,570,295 | ||
Liabilities | |||
Non-interest-bearing deposits | 825,364 | ||
Interest-bearing deposits | 1,300,825 | ||
Certificates and other time deposits | 1,346,915 | ||
Accounts payable and other accrued expenses | 26,587 | ||
Lease liability | 9,373 | ||
Accrued interest payable | 5,181 | ||
Securities sold under agreements to repurchase | 3,226 | ||
Advances from Federal Home Loan Bank | 300,000 | ||
Subordinated debentures and subordinated notes | 56,233 | ||
Branch liabilities held for sale | 52,682 | ||
Total liabilities | $ 3,926,386 |
Business Combinations - Loans A
Business Combinations - Loans Acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Contractual principal balance | $ 61,744 | $ 22,309 | |
Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | $ 3,245,248 | ||
Contractual principal balance | 3,335,060 | ||
Acquired Loans with Deteriorated Credit Quality | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 182,247 | ||
Contractual principal balance | 242,013 | ||
Contractually required principal and interest | 277,773 | ||
Non-accretable difference | 75,656 | ||
Cash flows expected to be collected | 202,117 | ||
Accretable difference | 19,870 | ||
Real Estate | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 1,915,944 | ||
Real Estate | Acquired Loans with Deteriorated Credit Quality | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 132,006 | ||
Commercial | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 1,149,069 | ||
Commercial | Acquired Loans with Deteriorated Credit Quality | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 50,057 | ||
Mortgage warehouse | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 166,850 | ||
Mortgage warehouse | Acquired Loans with Deteriorated Credit Quality | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 0 | ||
Consumer | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 13,385 | ||
Consumer | Acquired Loans with Deteriorated Credit Quality | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 184 | ||
Other Acquired Loans | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 3,063,001 | ||
Contractual principal balance | 3,093,047 | ||
Other Acquired Loans | Real Estate | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 1,783,938 | ||
Other Acquired Loans | Commercial | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 1,099,012 | ||
Other Acquired Loans | Mortgage warehouse | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | 166,850 | ||
Other Acquired Loans | Consumer | Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | $ 13,201 |
Business Combinations - Assets
Business Combinations - Assets Held For Sale (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 392,000 | ||
Loans | 78,366,000 | ||
Bank premises, furniture and equipment | 19,000 | ||
Intangible assets | 6,013,000 | ||
Other assets | 517,000 | ||
Total assets | $ 0 | 85,307,000 | $ 0 |
Noninterest-bearing deposits | 52,319,000 | ||
Accounts payable and accrued expenses | 40,000 | ||
Accrued interest payable and other liabilities | 323,000 | ||
Total liabilities | $ 0 | 52,682,000 | $ 0 |
Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Expected selling costs | $ 90,000 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($)$ / shares | |
Business Combinations [Abstract] | |
Net Interest Income | $ | $ 200,821 |
Net Income | $ | $ 78,359 |
Basic EPS (in dollars per share) | $ / shares | $ 1.45 |
Diluted EPS (in dollars per share) | $ / shares | $ 1.42 |