Cover Page
Cover Page - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 1,355,252 | ||
Entity Common Stock, Shares Outstanding | 50,497,070 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2019. | ||
Entity Central Index Key | 0001501570 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 65,151 | $ 19,598 |
Interest bearing deposits in other banks | 186,399 | 64,851 |
Total cash and cash equivalents | 251,550 | 84,449 |
Securities available-for-sale, at fair value | 964,365 | 262,695 |
Securities held-to-maturity (fair value of $34,810 at December 31, 2019) | 32,965 | 0 |
Equity securities | 14,697 | 2,050 |
Investment in trusts | 1,018 | 352 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 68,348 | 15,281 |
Total investments | 1,081,393 | 280,378 |
Loans held for sale | 14,080 | 1,258 |
Loans held for investment, mortgage warehouse | 183,628 | 0 |
Loans held for investment | 5,737,577 | 2,555,494 |
Allowance for loan losses | (29,834) | (19,255) |
Total loans held for investment, net | 5,891,371 | 2,536,239 |
Bank-owned life insurance | 80,915 | 22,064 |
Bank premises, furniture and equipment, net | 118,536 | 78,409 |
Other real estate owned | 5,995 | 0 |
Intangible assets, net of accumulated amortization of $19,997 and $7,528, respectively | 72,263 | 15,896 |
Goodwill | 370,840 | 161,447 |
Other assets | 67,994 | 28,410 |
Total assets | 7,954,937 | 3,208,550 |
Deposits: | ||
Noninterest-bearing deposits | 1,556,500 | 626,283 |
Interest-bearing transaction and savings deposits | 2,654,972 | 1,313,161 |
Certificates and other time deposits | 1,682,878 | 682,984 |
Total deposits | 5,894,350 | 2,622,428 |
Accounts payable and accrued expenses | 37,427 | 5,413 |
Accrued interest payable | 6,569 | 5,361 |
Advances from Federal Home Loan Bank | 677,870 | 28,019 |
Subordinated debentures and subordinated notes | 145,571 | 16,691 |
Securities sold under agreements to repurchase | 2,353 | 0 |
Total liabilities | 6,764,140 | 2,677,912 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 75,000,000 shares authorized at December 31, 2019 and December 31, 2018; 54,876,580 and 24,263,894 shares issued at December 31, 2019 and December 31, 2018, respectively; 51,063,869 and 24,253,894 shares outstanding at December 31, 2019 and December 31, 2018, respectively. | 549 | 243 |
Additional paid-in capital | 1,117,879 | 449,427 |
Retained earnings | 147,911 | 83,968 |
Accumulated other comprehensive income (loss) | 19,061 | (2,930) |
Treasury stock, 3,812,711 and 10,000 shares at cost at December 31, 2019 and 2018, respectively | (94,603) | (70) |
Total stockholders’ equity | 1,190,797 | 530,638 |
Total liabilities and stockholders’ equity | $ 7,954,937 | $ 3,208,550 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity investments | $ 34,810 | |
Accumulated amortization | $ 19,997 | $ 7,528 |
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) | 54,876,580 | 24,263,894 |
Common stock, shares outstanding (in shares) | 51,063,869 | 24,253,894 |
Treasury stock, shares (in shares) | 3,812,711 | 10,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans, including fees | $ 340,813 | $ 134,460 | $ 73,795 |
Investment securities | 29,484 | 6,605 | 3,462 |
Deposits in financial institutions and Fed Funds sold | 5,540 | 3,149 | 2,287 |
Other investments | 2,949 | 855 | 8 |
Total interest and dividend income | 378,786 | 145,069 | 79,552 |
Interest expense: | |||
Transaction and savings deposits | 40,355 | 17,599 | 8,981 |
Certificates and other time deposits | 38,675 | 9,714 | 897 |
Advances from FHLB | 9,984 | 1,701 | 531 |
Subordinated debentures and subordinated notes | 4,675 | 1,031 | 635 |
Total interest expense | 93,689 | 30,045 | 11,044 |
Net interest income | 285,097 | 115,024 | 68,508 |
Provision for loan losses | 21,514 | 6,603 | 5,114 |
Net interest income after provision for loan losses | 263,583 | 108,421 | 63,394 |
Noninterest income: | |||
Service charges and fees on deposit accounts | 14,334 | 3,420 | 2,502 |
Loan fees | 7,782 | 1,332 | 657 |
(Loss) gain on sales of investment securities | (1,852) | (64) | 222 |
Gain on sales of loans and other assets owned | 4,863 | 3,056 | 3,141 |
Rental income | 1,481 | 1,654 | 139 |
Other | 3,472 | 1,677 | 915 |
Total noninterest income | 30,080 | 11,075 | 7,576 |
Noninterest expense: | |||
Salaries and employee benefits | 72,791 | 31,138 | 20,828 |
Occupancy and equipment | 16,385 | 10,679 | 5,618 |
Professional and regulatory fees | 11,597 | 7,282 | 4,158 |
Data processing and software expense | 8,365 | 3,020 | 2,217 |
Marketing | 3,259 | 1,783 | 1,293 |
Amortization of intangibles | 10,887 | 3,467 | 964 |
Telephone and communications | 1,847 | 1,299 | 720 |
Merger and acquisition expense | 38,960 | 5,220 | 2,691 |
Other | 13,712 | 5,371 | 4,300 |
Total noninterest expense | 177,803 | 69,259 | 42,789 |
Income before income tax expense | 115,860 | 50,237 | 28,181 |
Income tax expense | 25,121 | 10,896 | 13,029 |
Net income | 90,739 | 39,341 | 15,152 |
Preferred stock dividends | 0 | 0 | 42 |
Net income allocated to common stockholders | $ 90,739 | $ 39,341 | $ 15,110 |
Basic earnings per share (in USD per share) | $ 1.71 | $ 1.63 | $ 0.82 |
Diluted earnings per share (in USD per share) | $ 1.68 | $ 1.60 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 90,739 | $ 39,341 | $ 15,152 |
Other Comprehensive Income (Loss), Securities, Available-for-sale, Adjustment, before Tax [Abstract] | |||
Change in net unrealized gains (losses) on securities available for sale during the period, net | 24,091 | (2,153) | 493 |
Reclassification adjustment for net (gains) losses included in net income | 1,852 | (64) | 222 |
Net unrealized gains (losses) on securities available for sale | 25,943 | (2,089) | 271 |
Net unrealized gains on derivative instruments designated as cash flow hedges | 1,497 | ||
Net unrealized gains on derivative instruments designated as cash flow hedges | 0 | 0 | |
Other comprehensive income (loss), before tax | 27,440 | (2,089) | 271 |
Income tax expense (benefit) | 5,449 | (439) | 76 |
Other comprehensive income (loss), net of tax | 21,991 | (1,650) | 195 |
Comprehensive income | $ 112,730 | $ 37,691 | $ 15,347 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Unallocated Employee Stock Ownership Plan Shares | Treasury Stock | Liberty acquisition | Liberty acquisitionCommon Stock | Liberty acquisitionAdditional Paid-In Capital | Sovereign Bank | Sovereign BankPreferred Stock | Sovereign BankAdditional Paid-In Capital | Green Bancorp, Inc. | Green Bancorp, Inc.Common Stock | Green Bancorp, Inc.Additional Paid-In Capital |
Stockholders' equity, beginning balance at Dec. 31, 2016 | $ 239,088 | $ 0 | $ 152 | $ 211,173 | $ 29,290 | $ (1,248) | $ (209) | $ (70) | |||||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2016 | 15,195,328 | 10,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted stock units vested, net (in shares) | 43,602 | ||||||||||||||||
Restricted stock units vested, net | (312) | (312) | |||||||||||||||
Exercise of employee stock options (in shares) | 17,949 | ||||||||||||||||
Exercise of employee stock options | 169 | 169 | |||||||||||||||
Stock issued for acquisition of bank, net of offering cost (in shares) | 5,117,642 | 1,449,944 | |||||||||||||||
Stock issued for acquisition of bank, net of offering cost | 135,947 | $ 51 | 135,896 | $ 40,003 | $ 14 | $ 39,989 | |||||||||||
Sale of common stock in public offering, net of offering costs of $288 (in shares) | 2,285,050 | ||||||||||||||||
Sale of common stock in public offering, net of offering costs of $288 | 56,681 | $ 24 | 56,657 | ||||||||||||||
Issuance of preferred stock, series D in connection with the acquisition of Sovereign Bancshares, Inc. | $ 49,000 | $ 24,500 | $ 24,500 | ||||||||||||||
Redemption of preferred stock | (49,000) | (24,500) | (24,500) | ||||||||||||||
Stock based compensation | 1,939 | 1,939 | |||||||||||||||
ESOP Shares Allocated | 109 | 6 | 103 | ||||||||||||||
Net income | 15,152 | 15,152 | |||||||||||||||
Preferred stock dividends | (42) | (42) | |||||||||||||||
Reclassification of certain deferred tax effects - ASU 2018-01 | 227 | (227) | |||||||||||||||
Other comprehensive income (loss) | 195 | 195 | |||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2017 | 488,929 | 0 | $ 241 | 445,517 | 44,627 | (1,280) | (106) | $ (70) | |||||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2017 | 24,109,515 | 10,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted stock units vested, net (in shares) | 105,765 | ||||||||||||||||
Restricted stock units vested, net | (593) | $ 2 | (595) | ||||||||||||||
Exercise of employee stock options (in shares) | 38,614 | ||||||||||||||||
Exercise of employee stock options | 454 | 454 | |||||||||||||||
Redemption of preferred stock | 0 | ||||||||||||||||
Stock based compensation | 4,048 | 4,048 | |||||||||||||||
ESOP Shares Allocated | 109 | 3 | 106 | ||||||||||||||
Net income | 39,341 | 39,341 | |||||||||||||||
Other comprehensive income (loss) | (1,650) | (1,650) | |||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2018 | $ 530,638 | 0 | $ 243 | 449,427 | 83,968 | (2,930) | 0 | $ (70) | |||||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2018 | 24,253,894 | 24,253,894 | 10,000 | ||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Restricted stock units vested, net (in shares) | 246,303 | 497,594 | |||||||||||||||
Restricted stock units vested, net | $ (1,346) | $ 3 | (1,349) | $ 12,484 | $ 5 | $ 12,479 | |||||||||||
Exercise of employee stock options (in shares) | 335,832 | ||||||||||||||||
Exercise of employee stock options | 3,938 | $ 3 | 3,935 | ||||||||||||||
Stock issued for acquisition of bank, net of offering cost (in shares) | 29,532,957 | ||||||||||||||||
Stock issued for acquisition of bank, net of offering cost | $ 630,627 | $ 295 | $ 630,332 | ||||||||||||||
Redemption of preferred stock | 0 | ||||||||||||||||
Stock buyback (in shares) | (3,802,711) | (3,802,711) | |||||||||||||||
Stock buyback | (94,533) | $ (94,533) | |||||||||||||||
Stock based compensation | 21,652 | 21,652 | |||||||||||||||
Reclassification of liability-classified awards to equity awards | 1,403 | 1,403 | |||||||||||||||
Net income | 90,739 | 90,739 | |||||||||||||||
Dividends | (26,796) | (26,796) | |||||||||||||||
Other comprehensive income (loss) | 21,991 | 21,991 | |||||||||||||||
Stockholders' equity, ending balance at Dec. 31, 2019 | $ 1,190,797 | $ 0 | $ 549 | $ 1,117,879 | $ 147,911 | $ 19,061 | $ 0 | $ (94,603) | |||||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2019 | 51,063,869 | 51,063,869 | 3,812,711 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Offering costs | $ 788 | $ 288 | |
Sovereign Bancshares, Inc. | |||
Offering costs | 438 | ||
Liberty Bancshares, Inc. | |||
Offering costs | $ 334 | ||
Restricted stock units | |||
Shares withheld to cover tax withholdings (in shares) | 55,946 | 20,082 | 11,601 |
Restricted stock units | Green Bancorp, Inc. | |||
Shares withheld to cover tax withholdings (in shares) | 25,872,000 | ||
Employee Stock Option | |||
Shares withheld to cover tax withholdings (in shares) | 13,709 | 1,691 | 1,095 |
Shares paid for cashless exercise (in shares) | 4,391 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 90,739 | $ 39,341 | $ 15,152 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and intangibles | 15,933 | 7,077 | 2,836 |
Net (accretion) amortization of time deposit premium, debt discount, net and debt issuance costs | (8,950) | 2 | 45 |
Provision for loan losses | 21,514 | 6,603 | 5,114 |
Accretion of loan purchase discount | (28,603) | (8,135) | (3,783) |
Stock-based compensation expense | 21,652 | 4,048 | 1,939 |
Compensation expense - liability-classified awards | 1,403 | 0 | 0 |
Excess tax benefit from stock compensation | 205 | (248) | (268) |
Deferred tax expense | 9,053 | 2,707 | 5,143 |
Net amortization of premiums on investment securities | 2,875 | 1,931 | 1,771 |
Unrealized gains on equity securities recognized in earnings | (325) | 0 | 0 |
Net loss (gain) on sales of investment securities | 1,852 | 64 | (222) |
Change in fair value of held for sale Small Business Administration ("SBA") loans using fair value option | (303) | 0 | 0 |
Gain on sales of mortgage loans held for sale | (475) | (708) | (942) |
Gain on sales of SBA loans | (4,388) | (2,348) | (1,940) |
Impairment on servicing asset | 188 | 0 | 0 |
Net gain on sales of other real estate owned | 0 | 0 | (259) |
Originations of loans held for sale | (37,166) | (35,936) | (48,567) |
Proceeds from sale of loans held for sale | 34,483 | 36,227 | 53,876 |
Write down on other real estate owned | 0 | 156 | 37 |
Net loss (gain) on sale of branches | 474 | (349) | 0 |
Decrease (increase) in other assets | 2,196 | (425) | (1,204) |
(Decrease) increase in accounts payable, accrued expenses and accrued interest payable | (16,387) | 969 | (1,477) |
Net cash provided by operating activities | 103,960 | 50,388 | 26,662 |
Cash flows from investing activities: | |||
Cash settlement for sale of held for sale branches | 7,153 | (31,810) | 0 |
Purchases of securities available for sale | (745,297) | (811,055) | (839,963) |
Sales of securities available for sale | 567,718 | 40,822 | 159,869 |
Proceeds from maturities, calls and pay downs of available for sale securities | 131,788 | 731,572 | 773,702 |
Purchases of securities held to maturity | (8,084) | 0 | 0 |
Maturity, calls and paydowns of securities held to maturity | 1,249 | 0 | 0 |
(Purchases) sales of other investments, net | (23,577) | (9,090) | 2,481 |
Net loans originated | (151,559) | (344,737) | (229,402) |
Proceeds from sale of SBA loans | 69,218 | 29,010 | 30,355 |
Net additions to bank premises and equipment | (7,658) | (5,013) | (40,571) |
Net intangible assets and lease obligations related to the purchase of our corporate building | 0 | 0 | (4,181) |
Proceeds from sales of other real estate owned and repossessed assets | 0 | 291 | 1,920 |
Net cash used in investing activities | (46,339) | (400,010) | (124,855) |
Cash flows from financing activities: | |||
Net change in deposits | (195,761) | 344,101 | 18,065 |
Net change in advances from Federal Home Loan Bank | 349,851 | (43,145) | (47,142) |
Net proceeds from sale of common stock in public offering | 0 | 0 | 56,681 |
Net change in other borrowings | 0 | (15,000) | 10,375 |
Issuance of subordinated note | 75,000 | 0 | 0 |
Redemption of preferred stock | 0 | 0 | (24,500) |
Dividends paid on preferred stock | 0 | 0 | (227) |
Net change in securities sold under agreement to repurchase | (873) | 0 | 0 |
Proceeds from exercise of employee stock options | 3,938 | 454 | 175 |
Payments to tax authorities for stock-based compensation | (1,346) | (593) | (318) |
Proceeds from payments on ESOP Loan | 0 | 109 | 109 |
Purchase of treasury stock | (94,533) | 0 | 0 |
Dividends paid | (26,796) | 0 | 0 |
Offering costs paid in connection with acquisitions | 0 | (899) | (772) |
Net cash provided by financing activities | 109,480 | 285,027 | 12,446 |
Net (decrease) increase in cash and cash equivalents | 167,101 | (64,595) | (85,747) |
Cash and cash equivalents at beginning of year | 84,449 | 149,044 | 234,791 |
Cash and cash equivalents at end of year | 251,550 | 84,449 | 149,044 |
Sovereign Bancshares, Inc. | |||
Cash flows from investing activities: | |||
Cash paid in excess of cash received for the acquisitions | 0 | 0 | (11,440) |
Liberty Bancshares, Inc. | |||
Cash flows from investing activities: | |||
Cash paid in excess of cash received for the acquisitions | 0 | 0 | 32,375 |
Green Bancorp, Inc. | |||
Cash flows from investing activities: | |||
Cash paid in excess of cash received for the acquisitions | $ 112,710 | $ 0 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Principles of Consolidated Financial Statements The consolidated financial statements include Veritex Holdings, Inc. (“Veritex” or the “Company”), whose business at December 31, 2019 primarily consisted of the operations of its wholly owned subsidiary, Veritex Community Bank (the “Bank”). The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices of the banking industry. Intercompany transactions and balances are eliminated in consolidation. Veritex is a Texas state banking organization with corporate offices in Dallas, Texas, and as of December 31, 2019 operated 25 branches and one mortgage office located in the Dallas-Fort Worth metroplex, 12 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 they perform periodic examinations to ensure regulatory compliance. On January 1, 2019, 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 25 - Business Combinations. Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. Reclassifications Some items in the prior year financial statements were reclassified to conform to current presentation including (i) the dividend income from other noninterest income into interest on other investments of $835 and $298 for the years ended December 31, 2018, and 2017, respectively, (ii) non-marketable securities of $15,281 into Federal Home Loan Bank and Federal Reserve Bank stock, (iii) non-marketable equity securities of $2,050 into equity securities as of December 31, 2018, (iv) non-marketable equity securities of $5,491 into other assets as of December 31, 2018, and (v) accrued interest receivable of $8,828 into other assets as of December 31, 2018. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. Restrictions on Cash The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. The reserve balances required as of December 31, 2019 and 2018 were approximately $170,593 and $64,752, respectively. Investment Securities Investment securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Investment securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available for sale and are carried at fair value. Unrealized gains and losses on investment securities classified as available for sale have been accounted for as accumulated other comprehensive income (loss), net of taxes. Management determines the appropriate classification of investment securities at the time of purchase. Interest income includes amortization of purchase premiums and discounts. Realized gains and losses are recorded on the sale of debt securities in noninterest income. Credit related declines in the fair value of securities available for sale or held to maturity below their amortized cost that are deemed to be other than temporary are reflected in earnings as realized losses, with remaining unrealized losses for available for sale securities recognized as a component of other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. For the years ended December 31, 2019, 2018 and 2017 there were no other-than-temporary impairment losses reflected in earnings as realized losses. Equity Securities Equity securities are recorded at fair value, with unrealized gains and losses included in noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for other investments. Realized gains and losses are recorded on the sale of equity securities in noninterest income. The Company recorded no impairment for equity securities without a readily determinable fair value for the years ended December 31, 2019 and 2018. Federal Home Loan Bank and Federal Reserve Bank Stock The Bank is a member of its regional Federal Reserve Bank (“FRB”) and of the Federal Home Loan Bank ("FHLB") system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are recorded in interest income for other investments. 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 intent and 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. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. 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 other noninterest income. The Company had a change in fair value for loans held for sale using the fair value option of $303 for the year ended December 31, 2019. There were no changes in fair value for loans held for sale using the fair value option for the years ended December 31, 208 and 2017. 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 loan sold. Loans and Allowance for Loan Losses Loans, excluding certain purchased loans that have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the origination of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they come 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 a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management’s periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance. The Company’s calculation of the general reserve considers historical loss rates for the last three years adjusted for qualitative factors based on general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company’s adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Due to the growth of the Bank over the past several years, a portion of its lending relationships and the loans in its portfolio are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios is impacted by delinquency status and debt service coverage generated by the borrowers’ business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process the Company refers to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is recorded, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Company policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the loan’s observable market price. From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis whether a specific valuation allowance is required. A specific valuation allowance is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry. The Company utilizes methodical credit standards and analyses to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. Certain 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. 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. The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded. 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. Transfers of Financial Assets Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Bank Premises and Equipment Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred. Bank premises and equipment with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to bank premises and equipment assets were recorded during the years ended December 31, 2019, 2018 and 2017. Leases 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 25 - 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 8 - Leases for additional information. 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. Other Real Estate Owned Other real estate owned represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the accompanying consolidated statements of income. Goodwill and Intangible Assets Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on October 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the goodwill impairment test, and the Company may resume performing the qualitative assessment in any subsequent period. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the first step of the two-step goodwill impairment test. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value, including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consi |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | Supplemental Statement of Cash Flows Other supplemental cash flow information is presented below: Year Ended December 31, 2019 2018 2017 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 88,175 $ 29,178 $ 10,680 Cash paid for income taxes 24,100 6,525 9,761 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability upon adoption of ASC 842 $ 9,380 $ — $ — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital 788 — — Subordinated debt issuance costs accrued but not yet paid in 2019 315 — — Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 (48) — — Net issuance of common stock for vesting of restricted stock units 1,349 595 312 Net foreclosure of other real estate owned and repossessed assets 5,995 8 1,037 Reclassification of branch assets held for sale to loans held for investment 26,171 — 33,552 Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits 1,713 — 64,627 Year Ended December 31, 2019 2018 2017 Noncash assets acquired 1 Investment securities $ 660,792 $ — $ 220,444 Equity securities 12,322 — — Federal Home Loan Bank and Federal Reserve Bank stock 29,490 — 8,847 Loans held for sale 9,360 — — Loans held for investment 3,245,248 (4,050) 1,060,436 Accrued interest receivable 2 11,395 — 4,293 Bank-owned life insurance 56,841 — — Bank premises, furniture and equipment 36,855 1,162 24,424 Investment in trusts 666 — — Other real estate owned — — 448 Intangible assets, net 65,718 (956) 16,722 Goodwill 209,393 1,995 134,797 Other assets 11,124 1,806 484,097 Right of use asset 2 9,373 — — Deferred taxes 2 11,783 — — Current taxes 2 1,812 — — Assets held for sale 85,307 — — Total assets $ 4,457,479 $ (43) $ 1,954,508 Noncash liabilities assumed Non-interest-bearing deposits $ 825,364 $ 303 $ 333,912 Interest-bearing deposits 1,300,825 — 512,750 Certificates and other time deposits 1,346,915 — 358,555 Accounts payable and accrued expenses 3 26,491 — 7,571 Lease liability 4 9,373 — — Accrued interest payable 5,181 (260) 948 Securities sold under agreements to repurchase 3,226 — — Advances from Federal Home Loan Bank 300,000 — 84,625 Subordinated debentures and subordinated notes 56,233 — 8,609 Liabilities held for sale 52,682 — — Total liabilities $ 3,926,290 $ 43 $ 1,306,970 Non-cash equity assumed Preferred stock - series D — — 24,500 Total equity — — 24,500 29,532,957 shares of common stock exchanged in connection with Green $ 631,415 — — 497,594 share of common stock exchanged in connection with Green vested RSUs $ 5,801 — — 5,117,642 shares of common stock exchanged in connection with the Sovereign acquisition — — $ 136,385 1,449,944 shares of common stock exchanged in connection with the Liberty acquisition — — $ 40,337 1 Noncash assets acquired and noncash liabilities assumed during 2019 relate to our acquisition of Green. Refer to Note 25 for further discussion. Noncash assets acquired and noncash liabilities assumed during 2018 and 2017 relate to our acquisitions of Sovereign and Liberty. 2 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 3 Accounts payable and accrued expenses includes accrued preferred stock dividends of $185 for the year ended December 31, 2017. 4 Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements 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 over the contractual life of assets within its scope. The allowance for credit losses is a valuation account that is deducted from, or added to, 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 allows an entity to present the portion of unrealized losses attributable to credit losses as an allowance rather than as a write-down. ASU 2016-13 affects entities holding 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. ASU 2016-13, as updated, became effective for the Company on January 1, 2020. Through the date of adoption, the Company held working group meetings that included individuals from various functional areas relevant to the implementation of ASU 2016-13. For loans held for investment, implementation activities focused on data capture and portfolio segmentation and development of new expected credit loss estimation models. Depending on the nature of each identified segment of financial assets with similar risk characteristics, the Company will implement a discounted cash flow method or a loss-rate method to estimate expected credit losses. The Company will utilize a probability of default/loss given default model to estimate expected credit losses for our purchased credit deteriorated (“PCD”) loans. The Company utilized 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 requires 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 on a straight-line basis 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 include forecasted levels of employment, pricing indexes, and gross domestic product. Management will 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. Additionally, this estimated impact at adoption also includes certain qualitative adjustments to the allowance for credit losses. An assessment of our primary modeling tool was completed during the fourth quarter of 2019. For our purchased credit deteriorated loans, the transition guidance allows entities the ability to elect to maintain pools of loans accounted for under Subtopic 310-30 at adoption. We have made such election and will maintain the integrity of our current PCD pools consistent with the guidance in Subtopic 310-30 for all applicable areas of accounting which include credit loss measurement, interest income recognition, write-off determination and trouble debt restructuring identification. Regarding interest income recognition, the prospective transition approach for PCD loans (that is, the gross-up approach) will be applied at a pool level which will freeze the effective interest rate of the pools calculated on the date of adoption. Under this election, the Company will not be able to remove a loan from the pool unless the Company sells, forecloses, or otherwise receives assets in satisfaction of the loan. The Company’s working group validated the appropriateness of, among other things, management’s decision regarding portfolio segmentation, life of loan considerations, and reasonable and supportable forecasting methodology. Based on our fourth quarter parallel run and management’s current expectation of future economic conditions, we believe that adoption of ASU 2016-13 will result in an increase in our allowance for credit losses from $29,834 to between $69,420 and $71,140 as of the date of adoption. This estimated impact includes additional allowance for credit loss required on recently acquired non-purchased credit deteriorated loans that have not required an allowance under the incurred loss model. This estimated impact also includes between $18,300 and $19,600 in allowance for credit loss from transitioning of loans previously accounted for under subtopic ASC 310-30 to the PCD model in ASC 326. Further, the reserve for off balance sheet lending commitments is expected to increase approximately $2,400 as of the date of ado ption. The Company is in the process of finalizing the review of the most recent model run and finalizing assumptions including qualitative adjustments, as such this estimate is subject to change. I n addition, ASU 2016-13 will require that we establish an allowance for expected credit losses for certain debt securities and other financial assets; however, we do not expect any allowance at the date of adoption. As a result of the aforementioned expected adjustments and net of the impact to corresponding deferred tax assets, the Company expects a reduction of retained earnings between $15,990 and $17,350 as of the date of adoption. The Company plans to use the regulatory transition rules allowing for a three-year phase-in of the day-one regulatory capital impact upon adoption of ASU 2016-13. |
Share Transactions
Share Transactions | 12 Months Ended |
Dec. 31, 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. The Board of Directors authorized increases of $50,000 on September 3, 2019 and $75,000 on December 12, 2019, resulting in an aggregate authorization to purchase up to $175,000 under the Stock Buyback Program. The Board of Directors also authorized an extension of the original expiration date from December 31, 2019 to December 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 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 year ended December 31, 2019, 3,802,711 shares were repurchased through the Stock Buyback Program and held as treasury stock at an average price of $24.86 per share. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Equity Securities With a Readily Determinable Fair Value The Company held equity securities with a fair value of $11,122 at December 31, 2019. The Company did not hold equity securities with a readily determinable fair value at December 31, 2018. The Company had no realized gains or losses on equity securities with a readily determinable fair value during the years ended December 31, 2019 and 2018. The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows: 2019 2018 Unrealized gain recognized on equity securities with a readily determinable fair value $ 325 $ — Equity Securities Without a Readily Determinable Fair Value The Company held equity securities without a readily determinable fair values and measured at cost of $3,575 and $2,050 at December 31, 2019 and 2018, respectively. Investment Securities Investment securities have been classified in the 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: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale Corporate bonds $ 76,997 $ 1,974 $ — $ 78,971 Municipal securities 74,956 3,724 — 78,680 Mortgage-backed securities 288,938 9,512 260 298,190 Collateralized mortgage obligations 431,276 6,465 1,503 436,238 Asset-backed securities 69,964 2,322 — 72,286 $ 942,131 $ 23,997 $ 1,763 $ 964,365 Held to maturity Mortgage-backed securities $ 8,621 $ 452 $ — $ 9,073 Collateralized mortgage obligations 1,809 43 — 1,852 Municipal securities 22,535 1,350 — 23,885 $ 32,965 $ 1,845 $ — $ 34,810 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 9,096 $ — $ 118 $ 8,978 Corporate bonds 26,518 84 134 26,468 Municipal securities 40,275 10 338 39,947 Mortgage-backed securities 97,117 101 2,167 95,051 Collateralized mortgage obligations 92,906 197 1,344 91,759 Asset-backed securities 492 — — 492 $ 266,404 $ 392 $ 4,101 $ 262,695 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. The following tables disclose the Company’s available for sale securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: December 31, 2019 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale Municipal securities $ 468 $ 1 $ — $ — $ 468 $ 1 Mortgage-backed securities 28,883 370 — — 28,883 370 Collateralized mortgage obligations 109,749 1,392 — — 109,749 1,392 $ 139,100 $ 1,763 $ — $ — $ 139,100 $ 1,763 December 31, 2018 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 5,671 $ 68 $ 3,306 $ 50 $ 8,977 $ 118 Corporate bonds 6,689 134 — — 6,689 134 Municipal securities 16,043 92 10,428 246 26,471 338 Mortgage-backed securities 24,277 279 59,637 1,888 83,914 2,167 Collateralized mortgage obligations 18,765 71 42,536 1,273 61,301 1,344 $ 71,445 $ 644 $ 115,907 $ 3,457 $ 187,352 $ 4,101 The number of investment positions in an unrealized loss position totaled 11 and 142 at December 31, 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 December 31, 2019 compared to the rates at the time of purchase. The Company has reviewed the ratings of the issuers and has not identified any issues related to the ultimate repayment of principal as a result of credit concerns regarding these securities. The Company 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. The Company sold certain securities in January 2019 due to a one-time re-balancing activity and recorded an insignificant loss. The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the tables below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities, collateralized mortgage obligations, and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The term of mortgage-backed, collateralized mortgage obligations and asset-backed securities thus approximates the term of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. December 31, 2019 Available For Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 4,904 $ 5,100 $ — $ — Due from five years to ten years 74,596 76,403 1,204 1,219 Due after ten years 72,453 76,148 21,331 22,666 151,953 157,651 22,535 23,885 Mortgage-backed securities and collateralized mortgage obligations 720,214 734,428 10,430 10,925 Asset-backed securities 69,964 72,286 — — $ 942,131 $ 964,365 $ 32,965 $ 34,810 December 31, 2018 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,963 $ 2,966 Due from one year to five years 34,933 34,854 Due from five years to ten years 19,682 19,468 Due after ten years 18,311 18,105 75,889 75,393 Mortgage-backed securities 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 realized gains and losses for the years ended December 31, 2019, 2018 and 2017 were as follows: December 31, 2019 2018 2017 Proceeds from sales $ 567,718 $ 40,822 $ 159,869 Gross realized gains 532 335 398 Gross realized losses 2,384 399 176 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Real estate: Construction and land $ 629,374 $ 324,863 Farmland 16,939 10,528 1 - 4 family residential 549,811 297,917 Multi-family residential 320,041 51,285 Commercial real estate 2,490,983 1,103,032 Commercial 1,712,838 760,772 Mortgage warehouse 183,628 — Consumer 17,457 7,112 5,921,071 2,555,509 Deferred loan costs (fees) 134 (15) Allowance for loan losses (29,834) (19,255) $ 5,891,371 $ 2,536,239 Included in the net loan portfolio as of December 31, 2019 and 2018 is an accretable discount related to purchased performing and PCI loans acquired in connection with a business combination in the approximate amounts of $57,811 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 December 31, 2019 and 2018 is a discount on retained loans from sale of originated Small Business Administration (“SBA”) loans of $2,193 and $2,398, respectively. The majority of the loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. Management believes the allowance for loan losses was adequate to cover estimated losses on loans as of December 31, 2019 and 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 December 31, 2019 and 2018, were as follows: December 31, 2019 2018 Real estate: Construction and land $ 567 $ 2,399 Farmland — — 1 - 4 family residential 1,581 — Multi-family residential — — Commercial real estate 21,905 2,575 Commercial 5,672 19,769 Mortgage warehouse — — Consumer 54 2 $ 29,779 $ 24,745 There were no PCI loans included in non-accrual loans at December 31, 2019. At December 31, 2018, non-accrual loans included PCI loans of $16,902 for which discount accretion has been suspended because the extent and timing of future cash flows from these PCI loans can no longer be reasonably estimated. During the year ended December 31, 2019 and 2018, interest income not recognized on non-accrual loans, excluding PCI loans, was $1,672 and $724, respectively. An age analysis of past due loans, aggregated by class of loans, as of December 31, 2019 and 2018 is as follows: December 31, 2019 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ — $ — $ — $ — $ 629,374 $ 3,947 $ 629,374 $ 800 Farmland — — — — 16,939 — 16,939 — 1 - 4 family residential 2,595 520 1,155 4,270 541,772 3,769 549,811 959 Multi-family residential — — — — 320,041 — 320,041 — Commercial real estate 12 3,834 868 4,714 2,389,415 96,854 2,490,983 511 Commercial 3,572 1,707 1,497 6,776 1,684,043 22,019 1,712,838 1,317 Mortgage warehouse — — — — 183,628 — 183,628 — Consumer 30 2,641 140 2,811 14,646 129 17,457 73 $ 6,209 $ 8,702 $ 3,660 $ 18,571 $ 5,779,858 $ 126,718 $ 5,921,071 $ 3,660 (1) Loans 90 days past due and still accruing excludes $41,328 of PCI loans as of December 31, 2019. December 31, 2018 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 305 $ — $ — $ 305 $ 324,558 $ — $ 324,863 $ — Farmland — — — — 10,528 — 10,528 — 1 - 4 family residential 131 266 — 397 297,435 85 297,917 — Multi-family residential — — — — 51,285 — 51,285 — Commercial real estate 3,465 — — 3,465 1,082,559 17,008 1,103,032 — Commercial 816 828 — 1,644 735,391 23,737 760,772 — Consumer 10 — — 10 7,102 — 7,112 — $ 4,727 $ 1,094 $ — $ 5,821 $ 2,508,858 $ 40,830 $ 2,555,509 $ — (1) Loans 90 days past due and still accruing excludes $527 of PCI loans as of December 31, 2018. Loans 90 days past due and still accruing interest were $3,660 as of December 31, 2019. No loans were 90 days past due and still accruing as of December 31, 2018. These loans are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the loans fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing. Impaired Loans Impaired loans are those loans where it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. All troubled debt restructurings (“TDRs”) are considered impaired loans. Impaired loans are measured based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. A majority of the Company’s impaired loans are measured at the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the collateral. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans, including TDRs, at December 31, 2019 and 2018 are summarized in the following tables. December 31, 2019 (1) Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ 567 $ — $ 567 $ 567 $ 128 $ 1,793 Farmland — — — — — — 1 - 4 family residential 156 — 156 156 37 158 Multi-family residential — — — — — — Commercial real estate 21,644 21,040 604 21,644 395 22,529 Commercial 5,188 2,011 3,177 5,188 1,042 8,546 Mortgage warehouse — — — — — — Consumer 61 61 — 61 — 62 Total $ 27,616 $ 23,112 $ 4,504 $ 27,616 $ 1,602 $ 33,088 (1) Loans reported exclude PCI loans. December 31, 2018 (1) Unpaid Recorded Recorded Total Related Average 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 $2,142 and $1,171 as of December 31, 2019 and 2018, respectively. There were two and three new TDRs during the years ended December 31, 2019 and 2018. The terms of certain loans modified as TDRs during the year ended December 31, 2019 and December 31, 2018 are summarized in the following tables: During the year ended December 31, 2019 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 2 $ 1,034 — $ 115 $ 919 — Total 2 $ 1,034 $ — $ 115 $ 919 $ — During the year ended December 31, 2018 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 3 $ 628 $ — $ 612 $ — $ — Total 3 $ 628 $ — $ 612 $ — $ — All TDRs are measured individually for impairment. Of the two new TDR loans during the year ended December 31, 2019, none were past due and two were performing as agreed to in the modified terms. There was no specific allowance for loan loss recorded for the two new TDR loans as of December 31, 2019. Interest income recorded during 2019, 2018 and 2017 on TDR loans and interest income that would have been recorded had the terms of the loan not been modified was minimal. There were no loans modified as a TDR loan for which there was a payment default during the year ended December 31, 2019 or December 31, 2018. A default for purposes of this disclosure is a TDR loan as to which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. The Company has not committed to lend additional amounts to customers with outstanding loans that were classified as TDRs as of December 31, 2019 and 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 classification of each loan reflects a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairment. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in creditworthiness; however, such concerns are generally not so pronounced that the Company expects to experience significant loss in the short term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses existing in the applicable collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and in which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist that could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual. Credits classified as PCI are those that, at the applicable acquisition date, had the characteristics of substandard loans and it was probable, at acquisition, that all contractually required principal and interest payments would not be collected. The Company evaluates these loans quarterly on a projected cash flow basis. The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2019 and 2018: December 31, 2019 Pass Special Substandard Doubtful PCI Total Real estate: Construction and land $ 618,773 $ 3,965 $ 2,689 $ — $ 3,947 $ 629,374 Farmland 16,939 — — — — 16,939 1 - 4 family residential 541,787 795 3,460 — 3,769 549,811 Multi-family residential 320,041 — — — — 320,041 Commercial real estate 2,332,357 23,494 38,278 — 96,854 2,490,983 Commercial 1,610,150 51,999 28,670 — 22,019 1,712,838 Mortgage warehouse 183,628 — — — — 183,628 Consumer 17,106 40 182 — 129 17,457 Total $ 5,640,781 $ 80,293 $ 73,279 $ — $ 126,718 $ 5,921,071 December 31, 2018 Pass Special 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 years ended December 31, 2019, 2018 and 2017 is as follows: For the For the For the Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Balance at beginning of year $ 19,255 $ 12,808 $ 8,524 Provision charged to earnings 21,514 6,603 5,114 Charge-offs (11,320) (197) (839) Recoveries 385 41 9 Net charge-offs (10,935) (156) (830) Balance at end of year $ 29,834 $ 19,255 $ 12,808 The allowance for loan losses as a percentage of total loans was 0.50%, 0.75% and 0.57% as of December 31, 2019, 2018 and 2017, respectively. The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. There were no allowance for loan losses related to PCI loans at December 31, 2017. December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Provision (recapture) charged to earnings 1,639 1,458 3,654 14,487 276 21,514 Charge-offs — (157) — (10,898) (265) (11,320) Recoveries — 67 — 226 92 385 Net charge-offs — (90) — (10,672) (173) (10,935) Balance at end of year $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 Period-end amount allocated to: Specific reserves $ 128 $ 37 $ 395 $ 1,042 $ — $ 1,602 PCI reserves — — 20 573 — 593 General reserves 3,755 3,306 9,702 10,754 122 27,639 Total $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 December 31, 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 929 502 2,053 3,100 19 6,603 Charge-offs — — — (175) (22) (197) Recoveries — — — 41 — 41 Net charge-offs — — — (134) (22) (156) Balance at end of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 368 $ — $ 368 PCI reserves — — — 1,302 — 1,302 General reserves 2,244 1,975 6,463 6,884 19 17,585 Total $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 December 31, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 (Recapture) provision charged to earnings (100) 368 1,407 3,452 (13) 5,114 Charge-offs — (11) — (828) — (839) Recoveries — — — 9 — 9 Net charge-offs — (11) — (819) — (830) Balance at end of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 12 $ — $ 12 PCI reserves — — — — — — General reserves 1,315 1,473 4,410 5,576 22 12,796 Total $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 The Company’s recorded investment in loans as of December 31, 2019 and 2018 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial 1 Consumer Total Loans individually evaluated for impairment $ 567 $ 156 $ 21,644 $ 5,188 $ 61 $ 27,616 Loans collectively evaluated for impairment 641,799 865,927 2,372,485 1,869,259 17,267 5,766,737 PCI loans 3,947 3,769 96,854 22,019 129 126,718 Total $ 646,313 $ 869,852 $ 2,490,983 $ 1,896,466 $ 17,457 $ 5,921,071 1 Commercial loans collectively evaluated for impairment includes mortgage warehouse. 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 consolidated balance sheets and the related outstanding balances at December 31, 2019 and 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. December 31, 2019 December 31, 2018 Carrying amount $ 126,125 $ 39,528 Outstanding balance 157,417 49,902 Changes in the accretable yield for PCI loans for the years ended December 31, 2019, 2018 and 2017 are included in table below. Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 Balance at beginning of period $ 18,747 $ 2,723 $ — Additions 19,870 1,459 3,927 Reclassifications from nonaccretable 12,719 19,162 — Accretion (13,112) (4,597) (1,204) Balance at year-end $ 38,224 $ 18,747 $ 2,723 During the years ended December 31, 2019 and 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 $440 and $4,113, respectively. Servicing Assets The Company was servicing loans of approximately $205,210 and $71,159 as of December 31, 2019 and 2018, respectively. A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2019 2018 Balance at beginning of year $ 1,304 $ 1,215 Servicing assets acquired through acquisition 2,382 — Increase from loan sales 1,253 470 Amortization charged as a reduction to income (1,826) (381) Balance at year-end $ 3,113 $ 1,304 The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2019 and 2018. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of December 31, 2019 and 2018, there were no valuation allowances recorded. The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at December 31, 2019 and 2018 . |
Bank Premises and Equipment
Bank Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises and Equipment | Bank Premises and Equipment Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Building and improvements $ 60,959 $ 37,526 Site improvements 2,633 672 Tenant improvements 744 744 Leasehold improvements 5,542 4,456 Land 45,878 33,393 Furniture, fixtures and equipment 16,073 9,426 Construction in Progress 608 2,182 132,437 88,399 Less accumulated depreciation and amortization 13,901 9,990 $ 118,536 $ 78,409 |
Leases
Leases | 12 Months Ended |
Dec. 31, 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 eight five The table below summarizes the Company’s net lease cost: For the Year Ended December 31, 2019 Operating lease cost $ 4,999 Variable lease cost 988 Net lease cost $ 5,987 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,325 Weighted-average remaining lease term - operating leases, in years 4.4 years Weighted-average discount rate - operating leases 1.59 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: December 31, 2019 Lease payments due: Within one year $ 3,465 After one but within two years 3,063 After two but within three years 2,589 After three but within four years 2,388 After four but within five years 1,937 After five years 2,146 Total undiscounted cash flows 15,588 Less: Discount on cash flows (1,493) Total lease liability $ 14,095 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the year ended December 31, 2019. As of December 31, 2019, the Company did not have additional operating leases for office space that were anticipated to commence during the first quarter of 2020. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.0 years $ 81,769 $ 14,206 $ 67,563 Servicing asset 6.7 years 5,726 2,613 3,113 Intangible lease assets 1.4 years 4,765 3,178 1,587 $ 92,260 $ 19,997 $ 72,263 December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 For the years ended December 31, 2019, 2018 and 2017, amortization expense related to intangible assets of approximately $12,022, $4,060 and $1,270 , respectively, is included within amortization of intangibles, occupancy and equipment and other income within the consolidated statements of income. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 was as follows: Year Amount 2020 $ 11,136 2021 10,631 2022 10,445 2023 10,307 2024 10,217 Thereafter 19,527 $ 72,263 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Balance at beginning of year $ 161,447 $ 159,452 Sovereign acquisition — 2,210 Liberty acquisition — (215) Green acquisition 209,393 — Balance at end of year $ 370,840 $ 161,447 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DepositsDeposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Noninterest-bearing demand accounts $ 1,556,500 $ 626,283 Interest-bearing demand accounts 388,877 146,969 Savings accounts 86,079 33,147 Limited access money market accounts 2,180,016 1,133,045 Certificates of deposit, greater than $100 1,234,324 392,935 Certificates of deposit, less than $100 448,554 290,049 Total $ 5,894,350 $ 2,622,428 As of December 31, 2019, the scheduled maturities of certificates of deposit were as follows: Year Amount 2020 $ 1,321,767 2021 288,902 2022 41,955 2023 16,558 2024 13,696 Total $ 1,682,878 The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $259 and $153 as of December 31, 2019 and 2018, respectively. Brokered deposits at December 31, 2019 and 2018 totaled approximately $312,467 and $234,190, respectively. |
Advances from the Federal Home
Advances from the Federal Home Loan Bank ("FHLB") | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Advances from the Federal Home Loan Bank (FHLB) | Advances from the Federal Home Loan Bank (“FHLB”) Advances from the FHLB totaled $677,870 and $28,019 at December 31, 2019 and 2018, respectively. As of December 31, 2019, the advances were collateralized by a blanket floating lien on certain securities and loans, had a weighted average rate of 1.48% and mature on various dates from 2020 to 2035. The Company had the availability to borrow additional funds of approximately $752,663 as of December 31, 2019. Contractual maturities of FHLB advances at December 31, 2019 were as follows: 2020 $ 75,000 2021 25,000 2022 27,870 2023 — 2024 200,000 Thereafter 350,000 Total $ 677,870 |
Other Credit Extensions
Other Credit Extensions | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Other Credit Extensions | Other Credit Extensions As of December 31, 2019 the Company maintained three credit facilities with commercial banks that provided federal funds credit extensions with an availability to borrow up to an aggregate amount of $150,000. As of December 31, 2018, the Company maintained two credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $75,000. There were no borrowings under these credit facilities as of December 31, 2019 and 2018. As of December 31, 2019 and 2018, the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $1,022,401 and $524,016, respectively. Approximately $843,861 and $404,981 of |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2019 2018 Junior subordinated debentures (1) $ 30,023 $ 11,702 Subordinated notes (2) 115,548 4,989 $ 145,571 $ 16,691 (1) Junior subordinated debentures are net of a discount of $3,845 as of December 31, 2019. There was no discount as of December 31, 2018. (2) Subordinated notes include a premium of $2,081 and debt issuance costs of $1,533 as of December 31, 2019 and a discount of $11 as of December 31, 2018. Junior Subordinated Debentures In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated. The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities. The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85%. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2019 and 2018 was 3.74% and 4.64%, respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances. In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed $8,609 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “SovDallas Trust Securities”), issued by SovDallas Capital Trust I (“SovDallas Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the SovDallas Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if SovDallas Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the SovDallas Trust. The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2019 and 2018 was 6.10% and 6.40%. The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. In connection with the acquisition of Green on January 1, 2019, the Company assumed $5,155 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot I Trust Securities”), issued by Patriot I Capital Trust I (“Patriot I Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot I Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot I Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot I Trust. The Patriot I Trust invested the total proceeds from the sale of the Patriot I Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Green. Interest on the Patriot I Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2019 was 3.84%. The Patriot I Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. In connection with the acquisition of Green on January 1, 2019, the Company assumed $17,011 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot II Trust Securities”), issued by Patriot II Capital Trust I (“Patriot II Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot II Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot II Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot II Trust. The Patriot II Trust invested the total proceeds from the sale of the Patriot II Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the Patriot II Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2019 was 3.69%. The Patriot II Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. The Parkway Trust Securities, SovDallas Trust Securities, Patriot I Trust Securities and Patriot II Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. Subordinated Notes During 2013 the Company issued, in the aggregate principal amount of $5,000, subordinated promissory notes (the “Notes”) in a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6.0% per annum, and unpaid principal and interest due at the stated maturity on December 31, 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed, in whole or in part, on any interest payment date that occurs on or after December 23, 2018, subject to approval of the Federal Reserve. In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000,000 shares of common stock of the Company at an exercise price of $11.00 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and is recorded as additional paid-in capital, and the related debt discount is being accreted into interest expense. In connection with the Company’s acquisition of Green on January 1, 2019, the Company assumed $35,000,000 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, to 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 insolvency or reorganization. On November 8, 2019, the Company issued $75,000 in aggregate principal amount of 4.75% Fixed-to-Floating Rate Subordinated Notes ("New Notes"). The New Notes were issued in a private placement transaction to certain qualified institutional buyers and accredited and were registered under the Securities Act effective February 13, 2020. The New Notes were issued under an indenture for Fixed-to-Floating Rate Subordinated Notes dated November 8, 2019, between Veritex Holdings, Inc., as issuer, and UMB Bank, N.A., as trustee. The Company may elect to redeem the New Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after November 15, 2024 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. The New Notes, which qualifies as Tier 2 capital under the Federal Reserve's capital guidelines, have an interest rate of 4.75% per annum during the fixed rate period from date of issuance through November 15, 2024. Interest is payable semi-annually on each May 15 and November 15 through November 15, 2024. The interest rate on the notes will vary beginning November 15, 2024, at a floating rate equal to the secured overnight financing rate, as determined quarterly on the determination date for the applicable interest period, plus 347 basis points. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is summarized as follows: Year Ended December 31, 2019 2018 2017 Income tax expense (benefit): Current $ 16,068 $ 8,189 $ 7,886 Deferred 9,053 2,707 5,143 $ 25,121 $ 10,896 $ 13,029 The table below reconciles income tax expense for the years ended December 31, 2019, 2018 and 2017 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2019 2018 2017 Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017 $ 24,330 $ 10,550 $ 9,863 Bank-owned life insurance (422) (124) (206) Non-deductible transaction costs 308 727 202 Tax exempt interest income (391) (169) (178) Impact of IRS Settlement (1,556) — — Deferred tax asset re-measurement due to the Tax Act — 34 3,051 162(m) Disallowance 1,512 — — State Taxes 760 110 — Other 580 (232) 297 Total income tax expense $ 25,121 $ 10,896 $ 13,029 Effective tax rate 21.7 % 21.7 % 46.2 % Income tax expense for 2017 was impacted by the adjustment of our deferred tax assets and liabilities related to the reduction in the U.S. federal statutory income tax rate to 21% under the Tax Cuts and Jobs Act. As a result of the new law, and as detailed in the table above, we recognized a provisional net tax expense totaling $3,051 in 2017 and an additional net tax expense resulting from a finalization of those calculations totaling $34 in 2018. Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 6,232 $ 3,985 Equity compensation 3,703 916 Purchase premium/loan discounts 9,347 2,176 Net unrealized gain on securities available for sale — 779 Lease liability 2,960 — Purchase securities 2,945 — Other 3,930 1,336 Total deferred tax assets 29,117 9,192 Deferred tax liabilities: Intangibles 13,527 2,187 Bank premises and equipment 4,811 1,959 Right of use asset 2,773 — Net unrealized gain on securities available for sale 4,669 — Other 1,904 896 Total deferred tax liabilities 27,684 5,042 Net deferred tax asset $ 1,433 $ 4,150 Included within other assets in the accompanying consolidated balance sheet as of December 31, 2019 is a current tax receivable of $10,403 and a deferred tax asset of $1,433. Additionally, included within accounts payable and accrued expenses in the accompanying consolidated balance sheets as of December 31, 2019 is a $780 current state tax payable. Included in the accompanying consolidated balance sheet as of December 31, 2018 is a current tax receivable of $4,982 and a net deferred tax asset of $4,150 in other assets. The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2019, 2018 and 2017. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority. December 31, 2019 December 31, 2018 December 31, 2017 Unrecognized tax benefits at the beginning of the year: $ — $ — $ — Gross increases, related to tax positions recognized as part of Green acquisition 2,155 — — Settlement with taxing authority (2,155) — — Unrecognized tax benefits at the end of the year $ — $ — $ — The Company has federal net operating loss ("NOL") carryforwards that are subject to a pre-tax limitation under Section 382 of approximately $3,400 as of December 31, 2019. The federal NOL carryforwards will expire with the 2031 tax year, if unused. |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 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 these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. Qualified Affordable Housing Investment Starting in 2017, the Company began investing in certain qualified housing projects. At December 31, 2019 and 2018, the balance of the investment for qualified affordable housing projects was $3,292 and $3,663, respectively. This balance is reflected in other assets on the consolidated balance sheets. The total unfunded commitment related to the investment in a qualified housing project totaled $1,091 and $2,510 at December 31, 2019 and 2018, respectively, which is reflected in accrued interest payable on the consolidated balance sheets. The Company expects to fulfill this commitment during the year ending 2034. As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2020 $ 823 2021 123 2022 17 2023 17 2024 29 Thereafter 82 Total $ 1,091 |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government agencies, corporate bonds, municipal securities, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities. Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Assets and liabilities measured at fair value on a recurring basis include the following: Available for Sale Securities: Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For those securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. Equity Security With a Readily Determinable Fair Value: this investment represents our Community Reinvestment Act security which is reported at fair value utilizing a Level 1 input which includes a quoted price in an active market for the identical asset. Loans Held for Sale: The fair value of government guaranteed and commercial loans held-for-sale is based on commitments from investors or prevailing market prices. Derivative Financial Instruments: The fair value of correspondent interest rate swaps, customer interest rate swaps, correspondent interest rate caps and collars and commercial loan interest rate floors are derived from pricing models based on past, present and projected future market conditions, quoted market prices of instruments with similar characteristics or discounted cash flows, classified in Level 2 of the fair value hierarchy. The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2019 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: Available for sale securities $ — $ 964,365 $ — $ 964,365 Equity securities with a readily determinable fair value 11,122 — — 11,122 Loans held for sale (1) — 10,068 — 10,068 Correspondent interest rate swaps — 105 — 105 Customer interest rate swaps — 4,393 — 4,393 Correspondent interest rate caps and collars — 11 — 11 Commercial loan interest rate floor — 3,353 — 3,353 Financial Liabilities: Correspondent interest rate swaps — 4,736 — 4,736 Customer interest rate swaps — 84 — 84 Customer interest rate caps and collars — 11 — 11 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2018 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs 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 years ended December 31, 2019 and 2018. Certain assets and liabilities are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets measured at fair value on a non-recurring basis include impaired loans and other real estate owned. Impaired loans and other real estate owned that are collateral dependent are measured for impairment using the fair value of the collateral adjusted by additional Level 3 inputs, such as estimated costs to sell. Impaired loans and other real estate owned secured by real estate, receivables or inventory had discounts determined by management on an individual loan basis. Impaired loans and other real estate owned that are not collateral dependent are measured for impairment by a discounted cash flow analysis using a net present value calculation that utilizes data from the loan file. As such, the fair value of impaired loans and other real estate owned are considered a Level 3 in the fair value hierarchy. Appraisals for impaired loans and other real estate owned are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value. The Company records other real estate owned at fair value less estimated costs to sell at the date of foreclosure. After foreclosure, other real estate owned is carried at the lower of the initial carrying amount (fair value less estimated costs to sell or lease) and the value determined by subsequent appraisals or internal valuations of the other real estate owned. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2019 Assets: Impaired loans $ — $ — $ 4,504 $ 4,504 Other real estate owned $ — $ — $ 5,995 $ 5,995 As of December 31, 2018 Assets: Impaired loans $ — $ — $ 2,584 $ 2,584 At December 31, 2019, impaired loans with an allowance had a recorded investment of $4,504, with $1,602 specific allowance for loan loss allocated. At December 31, 2018, impaired loans with an allowance had a recorded investment of $2,584, with $368 specific allowance for loan loss allocated. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2019 and 2018. Fair Value of Financial Instruments The Company is required under current authoritative guidance to disclose the estimated fair value of its financial instrument assets and liabilities, including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined in such guidance. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop an estimate of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates their fair value. Held-to-maturity investments: The fair values of these securities is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). Loans held for investment and loans held for sale: The fair value of loans held for investment, excluding previously presented impaired loans measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset. Loans held for sale approximate their carrying value and are considered Level 2 financial assets. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values due to short-term maturity. Bank-owned life insurance: The carrying amounts of bank-owned life insurance policies approximate their fair value. Servicing Asset: The estimated fair value of the servicing assets approximated the carrying amount at December 31, 2019 and December 31, 2018. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. At December 31, 2019 and December 31, 2018, no valuation allowance was recorded. Equity securities without a readily determinable fair value: Certain equity securities are carried at cost as these securities did not have a readily determinable fair value. There were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2019 and 2018. Federal Home Loan Bank and Federal Reserve Bank stock: FHLB and FRB stock are carried at cost basis due to restrictions placed on the transferability of these investments. As a result, the fair value of these investments was not practicable to determine. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate certificates of deposit (“CDs”) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits. Advances from Federal Home Loan Bank: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Subordinated debentures and subordinated notes: The fair values are based upon prevailing rates on similar debt in the marketplace. Securities sold under agreement 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. Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements. The estimated fair values and carrying values of financial instruments not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash and cash equivalents $ 251,550 $ — $ 251,550 $ — Held to maturity investments 32,965 — 34,810 — Loans held for sale 14,080 — 14,080 — Loans held for investment, mortgage warehouse 183,628 — — 185,060 Loans held for investment 5,737,577 — — 5,714,885 Accrued interest receivable 19,508 — 19,508 — Bank-owned life insurance 80,915 — 80,915 — Servicing asset 3,113 — 3,113 — Equity securities without a readily determinable fair value 3,575 N/A N/A N/A Federal Home Loan Bank and Federal Reserve Bank stock 68,348 N/A N/A N/A Financial liabilities: Deposits $ 5,894,350 $ — $ 5,692,217 $ — Advances from FHLB 677,870 — 708,692 — Accrued interest payable 5,893 — 5,893 — Subordinated debentures and subordinated notes 145,571 — 145,571 — Securities sold under agreement to repurchase 2,353 — 2,353 — 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 — Equity securities without readily determinable fair value 2,050 N/A N/A N/A Federal Home Loan Bank and Federal Reserve Bank stock 15,281 N/A N/A N/A 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 — |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table sets forth the approximate amounts of these financial instruments as of December 31, 2019 and 2018: December 31, 2019 2018 Commitments to extend credit $ 1,950,350 $ 962,436 Standby and commercial letters of credit 27,196 5,431 $ 1,977,546 $ 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 and substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit. Although the maximum exposure to loss is the amount of such commitments, management currently anticipates no material losses from such activities. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 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 consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying 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 December 31, 2019 were as shown in the table below. The Company did not have hedging or non-hedging derivative instruments as of December 31, 2018. December 31, 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 $ 3,353 $ — Total derivatives designated as hedging instruments 275,000 3,353 — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 222,394 105 4,736 Interest rate caps and collars 90,093 11 — Commercial customer counterparty: Interest rate swaps 222,394 4,393 84 Interest rate caps and collars 90,093 — 11 Total derivatives not designated as hedging instruments 624,974 4,509 4,831 Offsetting derivative assets/liabilities (2,895) (2,895) Total derivatives $ 899,974 $ 4,967 $ 1,936 Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the year ended December 31, 2019 was as follows: For the Year Ended December 31, 2019 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 Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floors $ 1,497 $ (808) $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 550 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 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 December 31, 2019. The Company did not have interest rate swaps outstanding as of December 31, 2018. December 31, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 222,394 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (4,632) Interest rate caps and collars $ 90,093 2.430% / 5.80 LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 11 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 222,394 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 4,309 Interest rate caps and collars $ 90,093 3.000% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ (11) |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Contribution Plan The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. For the year ended December 31, 2019, the company made matching contributions of $2,896. No matching contributions to the Plan were made for the year ending December 31, 2018. The Plan was amended in December 2018 to start contributing matching contributions by the Company effective January 1, 2019. ESOP Effective January 1, 2012, the Company adopted the ESOP, which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants. On January 3, 2014, the ESOP borrowed $500 from the Company and purchased 46,082 shares of the common stock of the Company. The ESOP debt was secured by shares of the Company. The loan was repaid from cash contributions made by the Company to the ESOP. As the debt was repaid, shares were released from collateral and allocated to participants’ accounts. For the year ended December 31, 2018, the Company received a $109 debt payment from the ESOP and released 9,771 shares from collateral (and, as noted above, such shares were also released from the suspense account). This note was fully repaid in December 2018, and all shares have been allocated to participant accounts. The Company issued 9,147 shares to the ESOP in June of 2015 to settle in full the 401(k) matching liability that was accrued prior to the origination of the $500 loan to the ESOP in January 2014. There was no compensation expense attributed to the ESOP for the year ended December 31, 2019. Compensation expense attributed to the ESOP contributions recorded in the accompanying consolidated statements of income for years ended December 31, 2018 and 2017 was approximately $863 and $240, respectively. The following is a summary of the ESOP shares as of December 31, 2019 and December 31, 2018. December 31, 2019 2018 Allocated shares 63,040 63,040 Unearned shares — — Total ESOP shares 63,040 63,040 |
Stock and Incentive Plans
Stock and Incentive Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock and Incentive Plans | Stock and Incentive Plans 2010 Stock Option and Equity Incentive Plan In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 Incentive Plan”), which the Company’s shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the 2010 Incentive Plan is 1,000,000. The 2010 Incentive Plan is administered by the Board of Directors of the Company (the “Board”) and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan. The Board authorized grants of equity awards under the 2010 Incentive Plan consisting of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are or were performance-based stock options. Options were generally granted with an exercise price equal to the market price of the Company’s stock as of the date of the grant. In general, the terms of awards varied depending on whether a participant was a shareholder owning more than 10% of the total combined voting power of all classes of Company stock (a “controlling participant”). Options granted to non-controlling participants generally vested after 5 years of continuous service, with 10-year contractual terms, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms varied for controlling participants. Restricted share awards generally vested after 4 years of continuous service. The terms of the 2010 Incentive Plan provide that all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control. During the years ending December 31, 2019 , 2018 and 2017, the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan. Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2019, 2018 and 2017, approximately $3, $27 and $63 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income. A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2019, 2018 and 2017 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2016 325,500 $ 10.15 4.56 years Forfeited (3,000) $ 10.00 Exercised (17,500) $ 10.00 $ 308 Outstanding at December 31, 2017 305,000 $ 10.16 3.59 years Exercised (30,000) 10.61 $ 323 Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years Exercised (17,500) 10.24 275 Outstanding at December 31, 2019 257,500 $ 10.28 1.37 years $ 4,971 Options exercisable at December 31, 2019 257,500 $ 10.28 1.37 years $ 4,971 As of December 31, 2019, there was no unrecognized stock compensation expense related to non-performance based stock options. As of December 31, 2018 and 2017, there was approximately $3, and $8, respectively, of unrecognized compensation expense related to non-performance-based stock options. A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2019, 2018, and 2017 and changes during the years is presented below: 2010 Incentive Plan Nonperformance-based restricted stock units Shares Weighted Average Exercise Outstanding at December 31, 2016 27,750 $ 11.92 Forfeited (2,500) 10.85 Vested into shares (1,000) 10.85 Outstanding at December 31, 2017 24,250 $ 13.19 Forfeited (500) 10.85 Vested into shares (23,750) 12.14 Outstanding at December 31, 2018 — $ — Outstanding at December 31, 2019 — $ — As of December 31, 2019 and 2018, there was no remaining unrecognized compensation expense related to non-vested restricted stock units. As of December 31, 2017, there was $15, of total unrecognized compensation expense related to non-vested restricted stock units. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2019, 2018 and 2017 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2019 2018 2017 Nonperformance-based stock options exercised 454 803 488 Nonperformance-based restricted stock units vested — 713 26 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 the full vesting of all unvested equity awards issued under the 2014 Omnibus Plan 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 year ended December 31, 2019. The accelerated vesting of awards on January 1, 2019 resulted in the immediate recognition of $5,536 of stock compensation expense for the year ended December 31, 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 year ended December 31, 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 to 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 five 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 Year Ended December 31, 2019 2018 2017 Dividend yield 1.73% to 2.01% — % — % Expected life 4.52 to 7.51 years 5.0 to 7.5 years 6.13 to 7.5 years Expected volatility 28.85% to 29.65% 27.87% to 37.55% 30.56% to 33.19% Risk-free interest rate 1.53% to 2.51% 1.06% to 2.94% 1.96% to 2.32% 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 Expens e Stock compensation expense for non-vested equity awards as of December 31, 2019 under the 2014 Omnibus Plan was approximately $3,044 for the year ended December 31, 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 year ended December 31, 2019. For the years ended December 31, 2018 and December 31, 2017, the Company recognized $4,021 and $1,876 in stock compensation expense. Stock compensation expense for options and restricted stock unit awards granted under the Veritex (Green) 2014 Plan was approximately $1,525 for the year ended December 31, 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 $1,403 of compensation expense for liability-classified awards under the 2014 Omnibus Plan during the year ended December 31, 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. On May 22, 2019, the shareholders of the Company approved a proposal to approve the 2019 Amended and Restated Omnibus Incentive Plan, which amended and restated our 2014 Omnibus Incentive Plan (the "Equity Plan"). The Equity Plan has two complementary purposes: (i) to attract and retain talented individuals to serve as officers, employees, directors and service providers; and (ii) to increase shareholder value by aligning the interests of our officers, employees, directors and service providers with the long-term interests of our company and our shareholders. The Equity Plan offers eligible officers, employees, directors and service providers the opportunity to acquire shares of our common stock, or receive monetary payments, on the potentially favorable terms provided by the Equity Plan. The Equity Plan is administered by the Compensation Committee of the Board. The maximum number of shares of the Company’s common stock that may be issued pursuant to grants or options under the Equity Plan is 1,500,000. 2014 Omnibus Plan A summary of the status of the Company’s stock options under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended, is as follows: 2014 Omnibus Plan Nonperformance-based stock options Equity Awards Liability Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2016 128,366 $ 15.32 8.69 years — — — Granted 212,983 26.97 — — Forfeited (9,082) 19.45 — — Exercised (1,544) 15.00 — — Outstanding at December 31, 2017 330,723 $ 22.71 8.86 years — — — Granted 137,576 28.04 — — Forfeited (4,083) $ 27.59 — — Exercised (14,696) 15.29 — — Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years — $ — — Granted 200,561 22.72 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633) 21.38 Forfeited (41,336) 25.51 — — Exercised (12,610) 15.42 $ — — — $ — Outstanding at December 31, 2019 849,768 $ 23.61 8.24 years $ 4,687 — — — $ — Options exercisable at December 31, 2019 414,338 $ 24.60 7.31 years $ 1,877 — — — $ — Weighted average fair value of options granted during the period $ 22.72 $ 21.38 As of December 31, 2019, 2018 and 2017 there was $2,948, $2,103 and $1,958 of total unrecognized compensation expense related to stock options awarded under the 2014 Omnibus Plan, respectively. As of December 31, 2019, there was no unrecognized compensation expense related to liability options awarded under the 2014 Omnibus Plan. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.14 years. A summary of the status of the Company’s non-performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the year then ended is as follows: 2014 Omnibus Plan Nonperformance-based restricted stock units Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2016 67,956 $ 13.79 — $ — Granted 121,125 27.19 — — Vested into shares (34,342) 19.74 — — Forfeited (4,017) 21.36 — — Outstanding at December 31, 2017 150,722 $ 13.29 — $ — Granted 60,650 29.27 — — Vested into shares (73,988) 24.44 — — Forfeited (3,929) 26.29 — — Outstanding at December 31, 2018 133,455 $ 19.67 — $ — Granted 127,459 22.44 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739) 21.38 Vested into shares (250,965) 22.29 — — Outstanding at December 31, 2019 175,688 $ 21.65 — $ — A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended is as follows: 2014 Omnibus Plan Performance-based restricted stock units Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2016 51,197 $ 13.30 Granted 26,398 24.43 Vested into shares (19,861) 15.34 Forfeited (4,140) 17.91 Outstanding at December 31, 2017 53,594 $ 17.68 Granted 40,269 27.59 Vested into shares (28,109) 18.69 Forfeited (1,766) 27.59 Outstanding at December 31, 2018 63,988 $ 21.28 — $ — Granted 38,746 22.53 32,249 21.38 Conversion to equity awards 32,249 21.38 (32,249) 21.38 Vested into shares (51,284) 25.31 — — Forfeited (19,972) 21.38 — — Outstanding at December 31, 2019 63,727 $ 22.76 — $ — As of December 31, 2019, 2018, and 2017 there was $4,329, $3,430 and $3,592 of total unrecognized compensation expense related to restricted stock units awarded under the 2014 Omnibus Plan, respectively. As of December 31, 2019, there was no unrecognized compensation related to liability restricted stock units awarded under the 2014 Omnibus Plan. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 2.14 years. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2019 2018 2017 Nonperformance-based stock options exercised 334 383 41 Nonperformance-based restricted stock units vested 6,113 2,128 568 Performance-based restricted stock units vested 1,089 745 530 Veritex (Green) 2014 Plan A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year 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 (12,673) 13.17 Exercised (116,929) 13.60 Outstanding at December 31, 2019 386,969 $ 19.30 7.86 years $3,800 Options exercisable at December 31, 2019 176,999 16.84 6.71 years $2,175 Options exercisable at Weighted average fair value of options granted during the period $ 18.56 As of December 31, 2019, there was $1,062 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at December 31, 2019 is expected to be recognized over the remaining weighted average requisite service period of 1.99 years. A summary of the status of the Company’s non-performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year 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 December 31, 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 December 31, 2019 and changes during the year 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 (825) 21.38 Outstanding at December 31, 2019 25,320 $ 21.38 As of December 31, 2019, there was $1,991 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 1.99 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 year ended December 31, 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2019 Non-performance-based stock options exercised $ 3,054 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 year ended December 31, 2019. No stock options or restricted stock units were awarded from these plans during the year ended December 31, 2019. During the year ended December 31, 2019, 190,652 stock options were exercised from the Green 2010 Plan and 11,850 stock options were exercised from the Green 2006 Plan. As of December 31, 2019, 566,936 exercisable stock options remain outstanding in the Green 2010 Plan and no exercisable stock options remain outstanding in the Green 2006 Plan. |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the Dallas-Fort Worth metroplex and Houston metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Commercial and standby letters of credit were granted primarily to commercial borrowers. The contractual amounts of credit related financial instruments such as commitments to extend credit, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. The aggregate amounts of such loans were approximately $70,113 and $70,220 as of December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, new advances of approximately $42,163 were made to related parties with approximately $42,398 principal payments received. During the year ended December 31, 2018, new advances of approximately $45,801 were made to related parties with approximately $19,715 principal payments received. There were $17,180 and $15,730 in unfunded commitments to related parties as of December 31, 2019 and 2018, respectively. At December 31, 2019, there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2019 and 2018 totaled approximately $70,986 and $30,977, respectively. As disclosed in Note 14, Borrowed Funds, the Company issued $5,000 in subordinated notes to certain entities controlled by an affiliate of the Company. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained Earnings Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels. The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the “Basel III Capital Rules”). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called “Common Equity Tier 1” (“CET1”), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and “Additional Tier 1 Capital” instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other categories of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015, with certain transition provisions to be fully phased in by January 1, 2019. The Basel III Capital Rules also call for a capital conservation buffer that is added to each of the required capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Failure to satisfy the buffer requirement will result in limits on capital distributions and discretionary bonus payments. In 2018, the buffer requirement was 1.875%, and the fully phased-in requirement of 2.5% was effective January 1, 2019. The Basel III Capital Rules establish quantitative measures to ensure capital adequacy. The Bank must maintain minimum ratios (set forth in the table below) of total Tier 1, and CET1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2019 and December 31, 2018 that the Bank met all capital adequacy requirements to which it was subject. Starting in January 2016, implementation of the capital conservation buffer became effective for the Company beginning at the 0.625% level and increasing 0.625% each year thereafter, until it reached 2.50% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. As of December 31, 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. There are no conditions or events since December 31, 2019 that management believes have changed the Company’s category. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital (to risk-weighted assets) Company $ 917,939 13.10 % $ 560,573 8.0 % n/a n/a Bank 870,838 12.44 560,024 8.0 $ 700,031 10.0 % Tier 1 capital (to risk-weighted assets) Company 771,679 11.02 420,152 6.0 n/a n/a Bank 840,126 12.00 420,063 6.0 560,084 8.0 Common equity tier 1 (to risk-weighted assets) Company 742,675 10.60 315,287 4.5 n/a n/a Bank 840,126 12.00 315,047 4.5 455,068 6.5 Tier 1 capital (to average assets) Company 771,679 10.17 303,512 4.0 n/a n/a Bank 840,126 11.07 303,569 4.0 379,461 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 $26,796, or $0.125 per outstanding share on the applicable record date, were paid by the Bank to the Company during the year ended December 31, 2019. No dividends were paid by the Bank to the Company during the year ended December 31, 2018. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 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 $209,393 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 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 following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of January 1, 2019, showing the estimated fair value as reported at January 1, 2019, the measurement period adjustments and the fair value determined to be final as of December 31, 2019. Estimate at January 1, 2019 Measurement Period Adjustments Final Fair Value Assets Cash and cash equivalents $ 112,720 $ — $ 112,720 Investment securities 661,032 (240) 660,792 Equity securities 12,322 — 12,322 Federal Home Loan Bank and Federal Reserve Bank stock 29,490 — 29,490 Loans held for sale 9,360 — 9,360 Loans held for investment 3,245,492 (244) 3,245,248 Accrued interest receivable 1 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 trusts 666 — 666 Intangible assets, net 65,718 — 65,718 Goodwill 206,821 2,572 209,393 Other assets 10,720 404 11,124 Right of use asset 1 9,373 — 9,373 Deferred taxes 1 11,535 248 11,783 Current taxes 1 1,799 13 1,812 Branch assets held for sale 85,307 — 85,307 Total assets $ 4,570,295 $ (96) $ 4,570,199 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 (96) 26,491 Lease liability 2 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 $ (96) $ 3,926,290 1 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 2 Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019. Acquisition-related Expenses For the year ended December 31, 2019 and 2018, the Company incurred $38,960 and $4,865 of pre-tax merger and acquisition expenses, respectively, related to the Green acquisition. The amounts incurred during the year ended December 31, 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. Acquisition expenses are included in merger and acquisition expenses on the consolidated statements of income. Acquired Loans and Purchased Credit Impaired Loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No allowance for credit losses was carried over from 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. Investment Securities Acquired investment securities includes $634,449 of available for sale securities and $26,343 of held to maturity securities recorded at fair value. Supplemental Pro Forma Information (unaudited) The following table presents supplemental pro forma information for the years ended December 31, 2018 and 2017 as if the Green acquisition was completed as of January 1, 2017. The pro forma results combine the historical results of Green, and historical results of previous acquisitions, 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, 2017: Year Ended December 31, 2018 2017 Net interest income $ 274,031 $ 254,350 Net income 108,490 38,352 Basic earnings per share $ 2.00 $ 0.71 Diluted earnings per share 1.97 0.70 |
Branch Assets and Liabilities H
Branch Assets and Liabilities Held For Sale | 12 Months Ended |
Dec. 31, 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 year ended December 31, 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 December 31, 2019 or 2018. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto. Balance Sheet December 31, 2019 2018 Assets Cash and cash equivalents $ 45,563 $ 40,474 Investment in subsidiaries 1,289,273 506,902 Other assets 2,780 940 Total assets $ 1,337,616 $ 548,316 Liabilities and Stockholders’ Equity Other liabilities $ 1,248 $ 987 Other borrowings 145,571 16,691 Total liabilities 146,819 17,678 Stockholders’ equity Common stock 511 243 Additional paid-in capital 1,117,879 449,427 Retained earnings 147,911 83,968 Accumulated other comprehensive income 19,061 (2,930) Treasury stock (94,565) (70) Total stockholders’ equity 1,190,797 530,638 Total liabilities and stockholders’ equity $ 1,337,616 $ 548,316 Statements of Income Year Ended December 31, 2019 2018 2017 Cash dividends from subsidiary $ 56,750 $ — $ — Excess of earnings over dividend from subsidiary 43,199 44,850 17,980 Other 50 20 8 99,999 44,870 17,988 Interest on borrowings 4,672 974 598 Salaries and employee benefits 790 853 712 Merger and acquisition expense 5,739 4,415 2,256 11,201 6,242 3,566 Earnings before income tax benefit 88,798 38,628 14,422 Income tax benefit (1,941) (713) (730) Net income $ 90,739 $ 39,341 $ 15,152 Statements of Cash Flows Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 90,739 $ 39,341 $ 15,152 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount, net and debt issuance costs 2,353 2 45 Equity in undistributed net income of Bank (43,199) (44,850) (17,980) Decrease (increase) in other assets (1,861) 2,226 3,523 (Decrease) increase in other liabilities (6,370) (2,635) 1,353 Net cash (used in) provided by operating activities 41,662 (5,916) 2,093 Cash flows from investing activities: Net cash paid in Sovereign acquisition — — (55,949) Net cash paid in Liberty acquisition — — (24,812) Net cash received in Green acquisition 5,818 — — Net cash used in investing activities 5,818 — (80,761) Cash flows from financing activities: Proceeds from issuance of subordinated debt 75,000 — — Net proceeds from sale of common stock in public offering — 2 56,681 Redemption of preferred stock — — (24,500) Net change in other borrowings — — (4,625) Proceeds from exercise of employee stock options 3,938 454 175 Proceeds from payments on ESOP loan — 109 109 Offering costs paid in connection with acquisition — (899) (772) Share repurchase (94,533) — — Payment of dividends (26,796) — — Dividends paid on preferred stock — — (42) Net cash (used in) provided by financing activities (42,391) (334) 27,026 Net (decrease) increase in cash and cash equivalents 5,089 (6,250) (51,642) Cash and cash equivalents at beginning of year 40,474 46,724 98,366 Cash and cash equivalents at end of year $ 45,563 $ 40,474 $ 46,724 |
Summary of Quarterly Financial
Summary of Quarterly Financial Statements (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Statements (Unaudited) | Summary of Quarterly Financial Statements (Unaudited) The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, which are necessary for the fair presentation of the results of operations, for the periods presented. 2019 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 91,742 $ 95,643 $ 96,177 $ 95,224 Interest Expense 21,878 24,769 24,735 22,307 Net interest income 69,864 70,874 71,442 72,917 Provision for loan losses 3,493 9,674 3,335 5,012 Noninterest income 7,132 8,430 6,034 8,484 Noninterest expense 36,284 34,630 39,896 66,993 Provision for income taxes 8,168 7,595 7,369 1,989 Net income available to common stockholders $ 29,051 $ 27,405 $ 26,876 $ 7,407 Earnings per share: Basic $ 0.56 $ 0.52 $ 0.50 $ 0.14 Diluted 0.56 0.51 0.49 0.13 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 38,182 $ 37,920 $ 34,857 $ 34,110 Interest Expense 9,487 8,642 6,931 4,985 Net interest income 28,695 29,278 27,926 29,125 Provision for loan losses 1,364 3,057 1,504 678 Noninterest income 3,619 2,408 2,290 2,758 Noninterest expense 17,538 18,246 16,169 17,306 Provision for income taxes 3,587 1,448 2,350 3,511 Net income available to common stockholders $ 9,825 $ 8,935 $ 10,193 $ 10,388 Earnings per share: Basic $ 0.41 $ 0.37 $ 0.42 $ 0.43 Diluted 0.40 0.36 0.42 0.42 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Codification | Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. |
Segment Reporting | Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. |
Reclassifications | Reclassifications Some items in the prior year financial statements were reclassified to conform to current presentation including (i) the dividend income from other noninterest income into interest on other investments of $835 and $298 for the years ended December 31, 2018, and 2017, respectively, (ii) non-marketable securities of $15,281 into Federal Home Loan Bank and Federal Reserve Bank stock, (iii) non-marketable equity securities of $2,050 into equity securities as of December 31, 2018, (iv) non-marketable equity securities of $5,491 into other assets as of December 31, 2018, and (v) accrued interest receivable of $8,828 into other assets as of December 31, 2018. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. |
Restrictions on cash | Restrictions on CashThe Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. |
Investment Securities | Investment Securities Investment securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity and are carried at amortized cost. Investment securities that the Company intends to hold for an indefinite period of time, but not necessarily to maturity, are classified as available for sale and are carried at fair value. Unrealized gains and losses on investment securities classified as available for sale have been accounted for as accumulated other comprehensive income (loss), net of taxes. Management determines the appropriate classification of investment securities at the time of purchase. |
Equity Securities | Equity SecuritiesEquity securities are recorded at fair value, with unrealized gains and losses included in noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for other investments. Realized gains and losses are recorded on the sale of equity securities in noninterest income. |
Federal Home Loan Bank and Federal Reserve Bank | Federal Home Loan Bank and Federal Reserve Bank Stock The Bank is a member of its regional Federal Reserve Bank (“FRB”) and of the Federal Home Loan Bank ("FHLB") system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are recorded in interest income for other investments. |
Loans Held for Sale and Gain on Sale of Mortgage 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 intent and 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. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. 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 loan sold. |
Fair Values Options and Fair Value of Financial Instruments | Fair Value OptionOn 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 other noninterest income. Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
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. |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Loans, excluding certain purchased loans that have shown evidence of deterioration since origination as of the date of the acquisition, that management has the intent and ability to hold for the foreseeable future or until maturity or repayment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Fees associated with the origination of loans and certain direct loan origination costs are netted and the net amount is deferred and recognized over the life of the loan as an adjustment of yield. The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they come 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 a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured in accordance with the terms of the loan agreement. The allowance for loan losses is an estimated amount management believes is adequate to absorb inherent losses on existing loans that may be uncollectible based upon review and evaluation of the loan portfolio. Management’s periodic evaluation of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. The allowance for loan losses is comprised of two components: the general reserve and specific reserves. The general reserve is determined in accordance with current authoritative accounting guidance. The Company’s calculation of the general reserve considers historical loss rates for the last three years adjusted for qualitative factors based on general economic conditions and other qualitative risk factors both internal and external to the Company. Such qualitative factors include current local economic conditions and trends including unemployment, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. These qualitative factors serve to compensate for additional areas of uncertainty inherent in the portfolio that are not reflected in the Company’s historic loss factors. For purposes of determining the general reserve, the loan portfolio, less cash secured loans, government guaranteed loans and impaired loans, is multiplied by the Company’s adjusted historical loss rate. Specific reserves are determined in accordance with current authoritative accounting guidance based on probable losses on specific classified loans. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Due to the growth of the Bank over the past several years, a portion of its lending relationships and the loans in its portfolio are of relatively recent origin. The new loan portfolios have limited delinquency and credit loss history and have not yet exhibited an observable loss trend. The credit quality of loans in these loan portfolios is impacted by delinquency status and debt service coverage generated by the borrowers’ business and fluctuations in the value of real estate collateral. Management considers delinquency status to be the most meaningful indicator of the credit quality of one-to-four single family residential, home equity loans and lines of credit and other consumer loans. In general, loans do not begin to show signs of credit deterioration or default until they have been outstanding for some period of time, a process the Company refers to as “seasoning.” As a result, a portfolio of older loans will usually behave more predictably than a portfolio of newer loans. Because the majority of the portfolio is relatively new, the current level of delinquencies and defaults may not be representative of the level that will prevail when the portfolio becomes more seasoned, which may be higher than current levels. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for new commercial, construction and commercial real estate loans. Internal risk ratings are a key factor in identifying loans that are individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan losses. Internal risk ratings are updated on a continuous basis. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is recorded, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Company policy requires measurement of the allowance for an impaired collateral dependent loan based on the fair value of the collateral. Other loan impairments are measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or the loan’s observable market price. From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. All troubled debt restructurings are considered impaired loans. The Company reviews each troubled debt restructured loan and determines on a case by case basis whether a specific valuation allowance is required. A specific valuation allowance is based on either the present value of estimated future cash flows or the estimated fair value of the underlying collateral. The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis and makes changes as appropriate. Management receives frequent reports related to loan originations, quality, concentrations, delinquencies, and non-performing and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geography. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay its obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees. Real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location, throughout the Dallas-Fort Worth metroplex and Houston metropolitan area. This diversity helps reduce the exposure to adverse economic events that may affect any single market or industry. The Company utilizes methodical credit standards and analyses to supplement its policies and procedures in underwriting consumer loans. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimizes the Company’s risk. |
Certain Acquired Loans | Certain 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. 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. The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded. 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. |
Derivatives 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. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets (generally consisting of sales of loans held for sale and loan participations with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Bank Premises and Equipment | Bank Premises and Equipment Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred. Bank premises and equipment with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to bank premises and equipment assets were recorded during the years ended December 31, 2019, 2018 and 2017. |
Leases | Leases 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. |
Securities Sold Under Agreements to Repurchase | 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. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the accompanying consolidated statements of income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on October 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the goodwill impairment test, and the Company may resume performing the qualitative assessment in any subsequent period. If the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company proceeds to perform the first step of the two-step goodwill impairment test. Under the first step, the estimation of fair value of the reporting unit is compared to its carrying value, including goodwill. If step one indicates a potential impairment, the second step is performed to measure the amount of impairment, if any. If the carrying amount of the reporting goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. Any such adjustments are reflected in the results of operations in the periods in which they become known. Intangible assets consist of core deposit intangibles and in-place lease intangibles associated with the purchase of our corporate office. Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term |
Servicing Assets | Servicing Assets The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, Servicing Assets and Liabilities . The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives. |
Branch Assets and Liabilities Held For Sale | Branch Assets and Liabilities Held for Sale The Company reports long-lived assets, including other assets and liabilities, as part of a disposal group, as held for sale when management has approved or received approval to sell the assets and liabilities, the Company is committed to a formal plan, the assets and liabilities are available for immediate sale, the assets and liabilities are being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specific criteria are met. Assets and liabilities held for sale are recorded at the lower of their carrying amount or estimated fair value less costs to sell. If the carrying amount of the assets and liabilities exceeds its estimated fair value, a loss is recognized. Depreciation and amortization expense is not recorded on the assets held for sale after they are classified as held for sale. |
Marketing Expense | Marketing ExpenseThe Company expenses all marketing costs as they are incurred. |
Income Taxes | Income Taxes The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis. The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2019 and 2018, management has determined there are no material uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “Interest expense” and penalties related to income taxes in “Other expense” on its consolidated statements of income. The Company recorded $309 of interest or penalties related to income tax for the year ended December 31, 2019 and no interest or penalties related to income tax for the years ended December 31, 2018 and 2017. With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2016. |
Revenue from Contracts with Customer | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options and other equity awards (performance and non-performance based) issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock on the date of grant is used to estimate fair value for other equity awards. A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a market condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. 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. |
Treasury Stock | Treasury Stock Treasury stock is stated at cost, which is determined by the first-in, first-out method. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of securities available for sale, net of tax, and the net effect of changes in fair value of derivative instruments designated as cash flow hedges. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. |
Employee Stock Ownership Plan | Employee Stock Ownership Plan Effective January 1, 2012, the Company adopted the Veritex Community Bank Employee Stock Ownership Plan (“ESOP”), which covers substantially all employees (subject to certain exclusions). The ESOP was amended effective December 31, 2018 to cease new contributions or allocations to the ESOP effective January 1, 2019. All ESOP assets are held in trust and managed by C. Malcolm Holland, III, in his capacity as the trustee of the ESOP. Shares of the Company’s common stock purchased by the ESOP were initially held in a suspense account until released for allocation to participants. Prior to January 1, 2019, the Company made contributions to each eligible participant’s account each year, generally based on the participant’s 401(k) contribution made during that year. Shares were then released from the suspense accounts and allocated to each participant’s account based on the amount of the contribution and the fair value of the shares. Compensation expense for these amounts were measured based upon the expected amount of the Company’s discretionary contribution determined on an annual basis and accrued ratably over the year. Shares were committed to be released to settle the liability upon formal declaration of the contribution at the end of the year. The number of shares released to settle the liability was based upon fair value of the shares and became outstanding shares for earnings per share computations. The cost of shares issued to the ESOP, but not yet committed to be released, was shown as a reduction of stockholders’ equity. To the extent that the fair value of the ESOP shares differed from the cost of such shares, the difference was charged or credited to stockholders’ equity as additional paid in capital. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. |
Earnings Per Share | Earnings Per ShareEarnings per share (“EPS”) are based upon the weighted-average number of shares outstanding. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recent Accounting Pronouncements 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 over the contractual life of assets within its scope. The allowance for credit losses is a valuation account that is deducted from, or added to, 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 allows an entity to present the portion of unrealized losses attributable to credit losses as an allowance rather than as a write-down. ASU 2016-13 affects entities holding 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. ASU 2016-13, as updated, became effective for the Company on January 1, 2020. Through the date of adoption, the Company held working group meetings that included individuals from various functional areas relevant to the implementation of ASU 2016-13. For loans held for investment, implementation activities focused on data capture and portfolio segmentation and development of new expected credit loss estimation models. Depending on the nature of each identified segment of financial assets with similar risk characteristics, the Company will implement a discounted cash flow method or a loss-rate method to estimate expected credit losses. The Company will utilize a probability of default/loss given default model to estimate expected credit losses for our purchased credit deteriorated (“PCD”) loans. The Company utilized 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 requires 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 on a straight-line basis 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 include forecasted levels of employment, pricing indexes, and gross domestic product. Management will 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. Additionally, this estimated impact at adoption also includes certain qualitative adjustments to the allowance for credit losses. An assessment of our primary modeling tool was completed during the fourth quarter of 2019. For our purchased credit deteriorated loans, the transition guidance allows entities the ability to elect to maintain pools of loans accounted for under Subtopic 310-30 at adoption. We have made such election and will maintain the integrity of our current PCD pools consistent with the guidance in Subtopic 310-30 for all applicable areas of accounting which include credit loss measurement, interest income recognition, write-off determination and trouble debt restructuring identification. Regarding interest income recognition, the prospective transition approach for PCD loans (that is, the gross-up approach) will be applied at a pool level which will freeze the effective interest rate of the pools calculated on the date of adoption. Under this election, the Company will not be able to remove a loan from the pool unless the Company sells, forecloses, or otherwise receives assets in satisfaction of the loan. The Company’s working group validated the appropriateness of, among other things, management’s decision regarding portfolio segmentation, life of loan considerations, and reasonable and supportable forecasting methodology. Based on our fourth quarter parallel run and management’s current expectation of future economic conditions, we believe that adoption of ASU 2016-13 will result in an increase in our allowance for credit losses from $29,834 to between $69,420 and $71,140 as of the date of adoption. This estimated impact includes additional allowance for credit loss required on recently acquired non-purchased credit deteriorated loans that have not required an allowance under the incurred loss model. This estimated impact also includes between $18,300 and $19,600 in allowance for credit loss from transitioning of loans previously accounted for under subtopic ASC 310-30 to the PCD model in ASC 326. Further, the reserve for off balance sheet lending commitments is expected to increase approximately $2,400 as of the date of ado ption. The Company is in the process of finalizing the review of the most recent model run and finalizing assumptions including qualitative adjustments, as such this estimate is subject to change. I n addition, ASU 2016-13 will require that we establish an allowance for expected credit losses for certain debt securities and other financial assets; however, we do not expect any allowance at the date of adoption. As a result of the aforementioned expected adjustments and net of the impact to corresponding deferred tax assets, the Company expects a reduction of retained earnings between $15,990 and $17,350 as of the date of adoption. The Company plans to use the regulatory transition rules allowing for a three-year phase-in of the day-one regulatory capital impact upon adoption of ASU 2016-13. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Lives of the Respective Assets | Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.0 years $ 81,769 $ 14,206 $ 67,563 Servicing asset 6.7 years 5,726 2,613 3,113 Intangible lease assets 1.4 years 4,765 3,178 1,587 $ 92,260 $ 19,997 $ 72,263 December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 |
Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS | The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2019, 2018 and 2017. Year Ended December 31, 2019 2018 2017 Earnings (numerator) Net income $ 90,739 $ 39,341 $ 15,152 Less: preferred stock dividends — — 42 Net income allocated to common stockholders $ 90,739 $ 39,341 $ 15,110 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 53,154 24,169 18,404 Dilutive effect of employee stock-based awards 824 421 406 Adjusted weighted average shares outstanding 53,978 24,590 18,810 Earnings per share: Basic $ 1.71 $ 1.63 $ 0.82 Diluted $ 1.68 $ 1.60 $ 0.80 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Year Ended December 31, 2019 2018 2017 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 88,175 $ 29,178 $ 10,680 Cash paid for income taxes 24,100 6,525 9,761 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability upon adoption of ASC 842 $ 9,380 $ — $ — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital 788 — — Subordinated debt issuance costs accrued but not yet paid in 2019 315 — — Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 (48) — — Net issuance of common stock for vesting of restricted stock units 1,349 595 312 Net foreclosure of other real estate owned and repossessed assets 5,995 8 1,037 Reclassification of branch assets held for sale to loans held for investment 26,171 — 33,552 Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits 1,713 — 64,627 |
Schedule of Supplemental Noncash Investing Activities | Year Ended December 31, 2019 2018 2017 Noncash assets acquired 1 Investment securities $ 660,792 $ — $ 220,444 Equity securities 12,322 — — Federal Home Loan Bank and Federal Reserve Bank stock 29,490 — 8,847 Loans held for sale 9,360 — — Loans held for investment 3,245,248 (4,050) 1,060,436 Accrued interest receivable 2 11,395 — 4,293 Bank-owned life insurance 56,841 — — Bank premises, furniture and equipment 36,855 1,162 24,424 Investment in trusts 666 — — Other real estate owned — — 448 Intangible assets, net 65,718 (956) 16,722 Goodwill 209,393 1,995 134,797 Other assets 11,124 1,806 484,097 Right of use asset 2 9,373 — — Deferred taxes 2 11,783 — — Current taxes 2 1,812 — — Assets held for sale 85,307 — — Total assets $ 4,457,479 $ (43) $ 1,954,508 Noncash liabilities assumed Non-interest-bearing deposits $ 825,364 $ 303 $ 333,912 Interest-bearing deposits 1,300,825 — 512,750 Certificates and other time deposits 1,346,915 — 358,555 Accounts payable and accrued expenses 3 26,491 — 7,571 Lease liability 4 9,373 — — Accrued interest payable 5,181 (260) 948 Securities sold under agreements to repurchase 3,226 — — Advances from Federal Home Loan Bank 300,000 — 84,625 Subordinated debentures and subordinated notes 56,233 — 8,609 Liabilities held for sale 52,682 — — Total liabilities $ 3,926,290 $ 43 $ 1,306,970 Non-cash equity assumed Preferred stock - series D — — 24,500 Total equity — — 24,500 29,532,957 shares of common stock exchanged in connection with Green $ 631,415 — — 497,594 share of common stock exchanged in connection with Green vested RSUs $ 5,801 — — 5,117,642 shares of common stock exchanged in connection with the Sovereign acquisition — — $ 136,385 1,449,944 shares of common stock exchanged in connection with the Liberty acquisition — — $ 40,337 1 Noncash assets acquired and noncash liabilities assumed during 2019 relate to our acquisition of Green. Refer to Note 25 for further discussion. Noncash assets acquired and noncash liabilities assumed during 2018 and 2017 relate to our acquisitions of Sovereign and Liberty. 2 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 3 Accounts payable and accrued expenses includes accrued preferred stock dividends of $185 for the year ended December 31, 2017. 4 Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity Securities, FV-NI | The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows: 2019 2018 Unrealized gain recognized on equity securities with a readily determinable fair value $ 325 $ — |
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: December 31, 2019 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale Corporate bonds $ 76,997 $ 1,974 $ — $ 78,971 Municipal securities 74,956 3,724 — 78,680 Mortgage-backed securities 288,938 9,512 260 298,190 Collateralized mortgage obligations 431,276 6,465 1,503 436,238 Asset-backed securities 69,964 2,322 — 72,286 $ 942,131 $ 23,997 $ 1,763 $ 964,365 Held to maturity Mortgage-backed securities $ 8,621 $ 452 $ — $ 9,073 Collateralized mortgage obligations 1,809 43 — 1,852 Municipal securities 22,535 1,350 — 23,885 $ 32,965 $ 1,845 $ — $ 34,810 December 31, 2018 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value Available for Sale U.S. government agencies $ 9,096 $ — $ 118 $ 8,978 Corporate bonds 26,518 84 134 26,468 Municipal securities 40,275 10 338 39,947 Mortgage-backed securities 97,117 101 2,167 95,051 Collateralized mortgage obligations 92,906 197 1,344 91,759 Asset-backed securities 492 — — 492 $ 266,404 $ 392 $ 4,101 $ 262,695 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | The following tables disclose the Company’s available for sale securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months: December 31, 2019 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale Municipal securities $ 468 $ 1 $ — $ — $ 468 $ 1 Mortgage-backed securities 28,883 370 — — 28,883 370 Collateralized mortgage obligations 109,749 1,392 — — 109,749 1,392 $ 139,100 $ 1,763 $ — $ — $ 139,100 $ 1,763 December 31, 2018 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Available for Sale U.S. government agencies $ 5,671 $ 68 $ 3,306 $ 50 $ 8,977 $ 118 Corporate bonds 6,689 134 — — 6,689 134 Municipal securities 16,043 92 10,428 246 26,471 338 Mortgage-backed securities 24,277 279 59,637 1,888 83,914 2,167 Collateralized mortgage obligations 18,765 71 42,536 1,273 61,301 1,344 $ 71,445 $ 644 $ 115,907 $ 3,457 $ 187,352 $ 4,101 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available-For-Sale, by Contractual Maturity | Therefore, these securities are not included in the maturity categories below. December 31, 2019 Available For Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 4,904 $ 5,100 $ — $ — Due from five years to ten years 74,596 76,403 1,204 1,219 Due after ten years 72,453 76,148 21,331 22,666 151,953 157,651 22,535 23,885 Mortgage-backed securities and collateralized mortgage obligations 720,214 734,428 10,430 10,925 Asset-backed securities 69,964 72,286 — — $ 942,131 $ 964,365 $ 32,965 $ 34,810 December 31, 2018 Available For Sale Amortized Fair Cost Value Due in one year or less $ 2,963 $ 2,966 Due from one year to five years 34,933 34,854 Due from five years to ten years 19,682 19,468 Due after ten years 18,311 18,105 75,889 75,393 Mortgage-backed securities 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 realized gains and losses for the years ended December 31, 2019, 2018 and 2017 were as follows: December 31, 2019 2018 2017 Proceeds from sales $ 567,718 $ 40,822 $ 159,869 Gross realized gains 532 335 398 Gross realized losses 2,384 399 176 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans | Loans in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Real estate: Construction and land $ 629,374 $ 324,863 Farmland 16,939 10,528 1 - 4 family residential 549,811 297,917 Multi-family residential 320,041 51,285 Commercial real estate 2,490,983 1,103,032 Commercial 1,712,838 760,772 Mortgage warehouse 183,628 — Consumer 17,457 7,112 5,921,071 2,555,509 Deferred loan costs (fees) 134 (15) Allowance for loan losses (29,834) (19,255) $ 5,891,371 $ 2,536,239 December 31, 2019 December 31, 2018 Carrying amount $ 126,125 $ 39,528 Outstanding balance 157,417 49,902 Changes in the accretable yield for PCI loans for the years ended December 31, 2019, 2018 and 2017 are included in table below. Year Ended December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2017 Balance at beginning of period $ 18,747 $ 2,723 $ — Additions 19,870 1,459 3,927 Reclassifications from nonaccretable 12,719 19,162 — Accretion (13,112) (4,597) (1,204) Balance at year-end $ 38,224 $ 18,747 $ 2,723 |
Schedule of Non-Accrual Loans, Excluding Purchased Credit Impaired Loans, Aggregated By Class of Loans | Non-accrual loans, aggregated by class of loans, as of December 31, 2019 and 2018, were as follows: December 31, 2019 2018 Real estate: Construction and land $ 567 $ 2,399 Farmland — — 1 - 4 family residential 1,581 — Multi-family residential — — Commercial real estate 21,905 2,575 Commercial 5,672 19,769 Mortgage warehouse — — Consumer 54 2 $ 29,779 $ 24,745 |
Schedule of Age Analysis of Past Due Loans, Excluding Purchased Credit Impaired Loans, Aggregated by Class of Loans | An age analysis of past due loans, aggregated by class of loans, as of December 31, 2019 and 2018 is as follows: December 31, 2019 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ — $ — $ — $ — $ 629,374 $ 3,947 $ 629,374 $ 800 Farmland — — — — 16,939 — 16,939 — 1 - 4 family residential 2,595 520 1,155 4,270 541,772 3,769 549,811 959 Multi-family residential — — — — 320,041 — 320,041 — Commercial real estate 12 3,834 868 4,714 2,389,415 96,854 2,490,983 511 Commercial 3,572 1,707 1,497 6,776 1,684,043 22,019 1,712,838 1,317 Mortgage warehouse — — — — 183,628 — 183,628 — Consumer 30 2,641 140 2,811 14,646 129 17,457 73 $ 6,209 $ 8,702 $ 3,660 $ 18,571 $ 5,779,858 $ 126,718 $ 5,921,071 $ 3,660 (1) Loans 90 days past due and still accruing excludes $41,328 of PCI loans as of December 31, 2019. December 31, 2018 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCI Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 305 $ — $ — $ 305 $ 324,558 $ — $ 324,863 $ — Farmland — — — — 10,528 — 10,528 — 1 - 4 family residential 131 266 — 397 297,435 85 297,917 — Multi-family residential — — — — 51,285 — 51,285 — Commercial real estate 3,465 — — 3,465 1,082,559 17,008 1,103,032 — Commercial 816 828 — 1,644 735,391 23,737 760,772 — Consumer 10 — — 10 7,102 — 7,112 — $ 4,727 $ 1,094 $ — $ 5,821 $ 2,508,858 $ 40,830 $ 2,555,509 $ — |
Summary of Impaired Loans, Including Purchased Credit Impaired Loans and Troubled Debt Restructurings | Impaired loans, including TDRs, at December 31, 2019 and 2018 are summarized in the following tables. December 31, 2019 (1) Unpaid Recorded Recorded Total Related Average Real estate: Construction and land $ 567 $ — $ 567 $ 567 $ 128 $ 1,793 Farmland — — — — — — 1 - 4 family residential 156 — 156 156 37 158 Multi-family residential — — — — — — Commercial real estate 21,644 21,040 604 21,644 395 22,529 Commercial 5,188 2,011 3,177 5,188 1,042 8,546 Mortgage warehouse — — — — — — Consumer 61 61 — 61 — 62 Total $ 27,616 $ 23,112 $ 4,504 $ 27,616 $ 1,602 $ 33,088 (1) Loans reported exclude PCI loans. December 31, 2018 (1) Unpaid Recorded Recorded Total Related Average 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 |
Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings | The terms of certain loans modified as TDRs during the year ended December 31, 2019 and December 31, 2018 are summarized in the following tables: During the year ended December 31, 2019 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 2 $ 1,034 — $ 115 $ 919 — Total 2 $ 1,034 $ — $ 115 $ 919 $ — During the year ended December 31, 2018 Post-Modification Outstanding Recorded Investment Number Pre- Adjusted Extended Extended Extended Commercial 3 $ 628 $ — $ 612 $ — $ — Total 3 $ 628 $ — $ 612 $ — $ — |
Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans | The following tables summarize the Company’s internal ratings of its loans, including PCI loans, as of December 31, 2019 and 2018: December 31, 2019 Pass Special Substandard Doubtful PCI Total Real estate: Construction and land $ 618,773 $ 3,965 $ 2,689 $ — $ 3,947 $ 629,374 Farmland 16,939 — — — — 16,939 1 - 4 family residential 541,787 795 3,460 — 3,769 549,811 Multi-family residential 320,041 — — — — 320,041 Commercial real estate 2,332,357 23,494 38,278 — 96,854 2,490,983 Commercial 1,610,150 51,999 28,670 — 22,019 1,712,838 Mortgage warehouse 183,628 — — — — 183,628 Consumer 17,106 40 182 — 129 17,457 Total $ 5,640,781 $ 80,293 $ 73,279 $ — $ 126,718 $ 5,921,071 December 31, 2018 Pass Special 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 Impairment Methodology | An analysis of the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 is as follows: For the For the For the Year Ended Year Ended Year Ended December 31, 2019 December 31, 2018 December 31, 2017 Balance at beginning of year $ 19,255 $ 12,808 $ 8,524 Provision charged to earnings 21,514 6,603 5,114 Charge-offs (11,320) (197) (839) Recoveries 385 41 9 Net charge-offs (10,935) (156) (830) Balance at end of year $ 29,834 $ 19,255 $ 12,808 The Company’s recorded investment in loans as of December 31, 2019 and 2018 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology is as follows: December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial 1 Consumer Total Loans individually evaluated for impairment $ 567 $ 156 $ 21,644 $ 5,188 $ 61 $ 27,616 Loans collectively evaluated for impairment 641,799 865,927 2,372,485 1,869,259 17,267 5,766,737 PCI loans 3,947 3,769 96,854 22,019 129 126,718 Total $ 646,313 $ 869,852 $ 2,490,983 $ 1,896,466 $ 17,457 $ 5,921,071 1 Commercial loans collectively evaluated for impairment includes mortgage warehouse. 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 |
Summary of Activity in the Allowance for Loan Losses By Class of Loans | The following tables summarize the activity in the allowance for loan losses by portfolio segment for the periods indicated. There were no allowance for loan losses related to PCI loans at December 31, 2017. December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Provision (recapture) charged to earnings 1,639 1,458 3,654 14,487 276 21,514 Charge-offs — (157) — (10,898) (265) (11,320) Recoveries — 67 — 226 92 385 Net charge-offs — (90) — (10,672) (173) (10,935) Balance at end of year $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 Period-end amount allocated to: Specific reserves $ 128 $ 37 $ 395 $ 1,042 $ — $ 1,602 PCI reserves — — 20 573 — 593 General reserves 3,755 3,306 9,702 10,754 122 27,639 Total $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 December 31, 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 929 502 2,053 3,100 19 6,603 Charge-offs — — — (175) (22) (197) Recoveries — — — 41 — 41 Net charge-offs — — — (134) (22) (156) Balance at end of year $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 368 $ — $ 368 PCI reserves — — — 1,302 — 1,302 General reserves 2,244 1,975 6,463 6,884 19 17,585 Total $ 2,244 $ 1,975 $ 6,463 $ 8,554 $ 19 $ 19,255 December 31, 2017 Real Estate Construction, Residential Commercial Real Estate Commercial Consumer Total Balance at beginning of year $ 1,415 $ 1,116 $ 3,003 $ 2,955 $ 35 $ 8,524 (Recapture) provision charged to earnings (100) 368 1,407 3,452 (13) 5,114 Charge-offs — (11) — (828) — (839) Recoveries — — — 9 — 9 Net charge-offs — (11) — (819) — (830) Balance at end of year $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 Period-end amount allocated to: Specific reserves: $ — $ — $ — $ 12 $ — $ 12 PCI reserves — — — — — — General reserves 1,315 1,473 4,410 5,576 22 12,796 Total $ 1,315 $ 1,473 $ 4,410 $ 5,588 $ 22 $ 12,808 |
Schedule of Summary of Changes in Servicing Assets | A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2019 2018 Balance at beginning of year $ 1,304 $ 1,215 Servicing assets acquired through acquisition 2,382 — Increase from loan sales 1,253 470 Amortization charged as a reduction to income (1,826) (381) Balance at year-end $ 3,113 $ 1,304 |
Bank Premises and Equipment (Ta
Bank Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Bank Premises and Equipment | Bank premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Building and improvements $ 60,959 $ 37,526 Site improvements 2,633 672 Tenant improvements 744 744 Leasehold improvements 5,542 4,456 Land 45,878 33,393 Furniture, fixtures and equipment 16,073 9,426 Construction in Progress 608 2,182 132,437 88,399 Less accumulated depreciation and amortization 13,901 9,990 $ 118,536 $ 78,409 |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.0 years $ 81,769 $ 14,206 $ 67,563 Servicing asset 6.7 years 5,726 2,613 3,113 Intangible lease assets 1.4 years 4,765 3,178 1,587 $ 92,260 $ 19,997 $ 72,263 December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Lease Costs | The table below summarizes the Company’s net lease cost: For the Year Ended December 31, 2019 Operating lease cost $ 4,999 Variable lease cost 988 Net lease cost $ 5,987 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,325 Weighted-average remaining lease term - operating leases, in years 4.4 years Weighted-average discount rate - operating leases 1.59 % |
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: December 31, 2019 Lease payments due: Within one year $ 3,465 After one but within two years 3,063 After two but within three years 2,589 After three but within four years 2,388 After four but within five years 1,937 After five years 2,146 Total undiscounted cash flows 15,588 Less: Discount on cash flows (1,493) Total lease liability $ 14,095 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.0 years $ 81,769 $ 14,206 $ 67,563 Servicing asset 6.7 years 5,726 2,613 3,113 Intangible lease assets 1.4 years 4,765 3,178 1,587 $ 92,260 $ 19,997 $ 72,263 December 31, 2018 Weighted Gross Net Amortization Intangible Accumulated Intangible Period Asset Amortization Asset Core deposit intangibles 7.7 years $ 16,051 $ 4,376 $ 11,675 Servicing asset 6.8 years 2,091 787 1,304 Intangible lease assets 2.7 years 5,282 2,365 2,917 $ 23,424 $ 7,528 $ 15,896 |
Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 was as follows: Year Amount 2020 $ 11,136 2021 10,631 2022 10,445 2023 10,307 2024 10,217 Thereafter 19,527 $ 72,263 As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2020 $ 823 2021 123 2022 17 2023 17 2024 29 Thereafter 82 Total $ 1,091 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Balance at beginning of year $ 161,447 $ 159,452 Sovereign acquisition — 2,210 Liberty acquisition — (215) Green acquisition 209,393 — Balance at end of year $ 370,840 $ 161,447 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule Summarized of the Deposits | Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2019 2018 Noninterest-bearing demand accounts $ 1,556,500 $ 626,283 Interest-bearing demand accounts 388,877 146,969 Savings accounts 86,079 33,147 Limited access money market accounts 2,180,016 1,133,045 Certificates of deposit, greater than $100 1,234,324 392,935 Certificates of deposit, less than $100 448,554 290,049 Total $ 5,894,350 $ 2,622,428 |
Scheduled Maturities of Certificate of Deposits | As of December 31, 2019, the scheduled maturities of certificates of deposit were as follows: Year Amount 2020 $ 1,321,767 2021 288,902 2022 41,955 2023 16,558 2024 13,696 Total $ 1,682,878 |
Advances from the Federal Hom_2
Advances from the Federal Home Loan Bank ("FHLB") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at December 31, 2019 were as follows: 2020 $ 75,000 2021 25,000 2022 27,870 2023 — 2024 200,000 Thereafter 350,000 Total $ 677,870 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Junior Subordinated Debentures and Subordinated Notes | Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2019 2018 Junior subordinated debentures (1) $ 30,023 $ 11,702 Subordinated notes (2) 115,548 4,989 $ 145,571 $ 16,691 (1) Junior subordinated debentures are net of a discount of $3,845 as of December 31, 2019. There was no discount as of December 31, 2018. (2) Subordinated notes include a premium of $2,081 and debt issuance costs of $1,533 as of December 31, 2019 and a discount of $11 as of December 31, 2018. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The provision for income taxes is summarized as follows: Year Ended December 31, 2019 2018 2017 Income tax expense (benefit): Current $ 16,068 $ 8,189 $ 7,886 Deferred 9,053 2,707 5,143 $ 25,121 $ 10,896 $ 13,029 |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles income tax expense for the years ended December 31, 2019, 2018 and 2017 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2019 2018 2017 Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017 $ 24,330 $ 10,550 $ 9,863 Bank-owned life insurance (422) (124) (206) Non-deductible transaction costs 308 727 202 Tax exempt interest income (391) (169) (178) Impact of IRS Settlement (1,556) — — Deferred tax asset re-measurement due to the Tax Act — 34 3,051 162(m) Disallowance 1,512 — — State Taxes 760 110 — Other 580 (232) 297 Total income tax expense $ 25,121 $ 10,896 $ 13,029 Effective tax rate 21.7 % 21.7 % 46.2 % |
Schedule of Significant Components of the Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 6,232 $ 3,985 Equity compensation 3,703 916 Purchase premium/loan discounts 9,347 2,176 Net unrealized gain on securities available for sale — 779 Lease liability 2,960 — Purchase securities 2,945 — Other 3,930 1,336 Total deferred tax assets 29,117 9,192 Deferred tax liabilities: Intangibles 13,527 2,187 Bank premises and equipment 4,811 1,959 Right of use asset 2,773 — Net unrealized gain on securities available for sale 4,669 — Other 1,904 896 Total deferred tax liabilities 27,684 5,042 Net deferred tax asset $ 1,433 $ 4,150 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2019, 2018 and 2017. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority. December 31, 2019 December 31, 2018 December 31, 2017 Unrecognized tax benefits at the beginning of the year: $ — $ — $ — Gross increases, related to tax positions recognized as part of Green acquisition 2,155 — — Settlement with taxing authority (2,155) — — Unrecognized tax benefits at the end of the year $ — $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of cost, amortization, depreciation, and carrying amount | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2019 was as follows: Year Amount 2020 $ 11,136 2021 10,631 2022 10,445 2023 10,307 2024 10,217 Thereafter 19,527 $ 72,263 As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2020 $ 823 2021 123 2022 17 2023 17 2024 29 Thereafter 82 Total $ 1,091 |
Schedule of other commitments | As of December 31, 2019, the expected future minimum commitment payments under the Company’s qualified affordable housing investment for each of the following five years were: Year Ending December 31, Future Minimum Payments 2020 $ 823 2021 123 2022 17 2023 17 2024 29 Thereafter 82 Total $ 1,091 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2019 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: Available for sale securities $ — $ 964,365 $ — $ 964,365 Equity securities with a readily determinable fair value 11,122 — — 11,122 Loans held for sale (1) — 10,068 — 10,068 Correspondent interest rate swaps — 105 — 105 Customer interest rate swaps — 4,393 — 4,393 Correspondent interest rate caps and collars — 11 — 11 Commercial loan interest rate floor — 3,353 — 3,353 Financial Liabilities: Correspondent interest rate swaps — 4,736 — 4,736 Customer interest rate swaps — 84 — 84 Customer interest rate caps and collars — 11 — 11 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2018 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs 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 December 31, 2019 and 2018, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2019 Assets: Impaired loans $ — $ — $ 4,504 $ 4,504 Other real estate owned $ — $ — $ 5,995 $ 5,995 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 financial instruments not measured at fair value on a recurring basis as of December 31, 2019 and 2018 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2019 Financial assets: Cash and cash equivalents $ 251,550 $ — $ 251,550 $ — Held to maturity investments 32,965 — 34,810 — Loans held for sale 14,080 — 14,080 — Loans held for investment, mortgage warehouse 183,628 — — 185,060 Loans held for investment 5,737,577 — — 5,714,885 Accrued interest receivable 19,508 — 19,508 — Bank-owned life insurance 80,915 — 80,915 — Servicing asset 3,113 — 3,113 — Equity securities without a readily determinable fair value 3,575 N/A N/A N/A Federal Home Loan Bank and Federal Reserve Bank stock 68,348 N/A N/A N/A Financial liabilities: Deposits $ 5,894,350 $ — $ 5,692,217 $ — Advances from FHLB 677,870 — 708,692 — Accrued interest payable 5,893 — 5,893 — Subordinated debentures and subordinated notes 145,571 — 145,571 — Securities sold under agreement to repurchase 2,353 — 2,353 — 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 — Equity securities without readily determinable fair value 2,050 N/A N/A N/A Federal Home Loan Bank and Federal Reserve Bank stock 15,281 N/A N/A N/A 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 — |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2019 and 2018: December 31, 2019 2018 Commitments to extend credit $ 1,950,350 $ 962,436 Standby and commercial letters of credit 27,196 5,431 $ 1,977,546 $ 967,867 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Balance Sheet | December 31, 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 $ 3,353 $ — Total derivatives designated as hedging instruments 275,000 3,353 — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 222,394 105 4,736 Interest rate caps and collars 90,093 11 — Commercial customer counterparty: Interest rate swaps 222,394 4,393 84 Interest rate caps and collars 90,093 — 11 Total derivatives not designated as hedging instruments 624,974 4,509 4,831 Offsetting derivative assets/liabilities (2,895) (2,895) Total derivatives $ 899,974 $ 4,967 $ 1,936 |
Derivative Instruments, Gain (Loss) | Pre-tax gain (loss) included in the condensed consolidated statements of income and related to derivative instruments for the year ended December 31, 2019 was as follows: For the Year Ended December 31, 2019 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 Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate floors $ 1,497 $ (808) $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 550 |
Schedule of Derivative Instruments Outstanding | The following is a summary of the interest rate swaps outstanding as of December 31, 2019. The Company did not have interest rate swaps outstanding as of December 31, 2018. December 31, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 222,394 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (4,632) Interest rate caps and collars $ 90,093 2.430% / 5.80 LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 11 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 222,394 2.944 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 4,309 Interest rate caps and collars $ 90,093 3.000% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ (11) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Summary of ESOP Shares | The following is a summary of the ESOP shares as of December 31, 2019 and December 31, 2018. December 31, 2019 2018 Allocated shares 63,040 63,040 Unearned shares — — Total ESOP shares 63,040 63,040 |
Stock and Incentive Plans (Tabl
Stock and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of option activity | A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2019, 2018 and 2017 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2016 325,500 $ 10.15 4.56 years Forfeited (3,000) $ 10.00 Exercised (17,500) $ 10.00 $ 308 Outstanding at December 31, 2017 305,000 $ 10.16 3.59 years Exercised (30,000) 10.61 $ 323 Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years Exercised (17,500) 10.24 275 Outstanding at December 31, 2019 257,500 $ 10.28 1.37 years $ 4,971 Options exercisable at December 31, 2019 257,500 $ 10.28 1.37 years $ 4,971 2014 Omnibus Plan Nonperformance-based stock options Equity Awards Liability Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2016 128,366 $ 15.32 8.69 years — — — Granted 212,983 26.97 — — Forfeited (9,082) 19.45 — — Exercised (1,544) 15.00 — — Outstanding at December 31, 2017 330,723 $ 22.71 8.86 years — — — Granted 137,576 28.04 — — Forfeited (4,083) $ 27.59 — — Exercised (14,696) 15.29 — — Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years — $ — — Granted 200,561 22.72 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633) 21.38 Forfeited (41,336) 25.51 — — Exercised (12,610) 15.42 $ — — — $ — Outstanding at December 31, 2019 849,768 $ 23.61 8.24 years $ 4,687 — — — $ — Options exercisable at December 31, 2019 414,338 $ 24.60 7.31 years $ 1,877 — — — $ — Weighted average fair value of options granted during the period $ 22.72 $ 21.38 A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year 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 (12,673) 13.17 Exercised (116,929) 13.60 Outstanding at December 31, 2019 386,969 $ 19.30 7.86 years $3,800 Options exercisable at December 31, 2019 176,999 16.84 6.71 years $2,175 Options exercisable at Weighted average fair value of options granted during the period $ 18.56 |
Summary of status of the Company's restricted shares or restricted stock units | A summary of the status of the restricted stock units under the 2010 Incentive Plan as of December 31, 2019, 2018, and 2017 and changes during the years is presented below: 2010 Incentive Plan Nonperformance-based restricted stock units Shares Weighted Average Exercise Outstanding at December 31, 2016 27,750 $ 11.92 Forfeited (2,500) 10.85 Vested into shares (1,000) 10.85 Outstanding at December 31, 2017 24,250 $ 13.19 Forfeited (500) 10.85 Vested into shares (23,750) 12.14 Outstanding at December 31, 2018 — $ — Outstanding at December 31, 2019 — $ — 2014 Omnibus Plan Nonperformance-based restricted stock units Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2016 67,956 $ 13.79 — $ — Granted 121,125 27.19 — — Vested into shares (34,342) 19.74 — — Forfeited (4,017) 21.36 — — Outstanding at December 31, 2017 150,722 $ 13.29 — $ — Granted 60,650 29.27 — — Vested into shares (73,988) 24.44 — — Forfeited (3,929) 26.29 — — Outstanding at December 31, 2018 133,455 $ 19.67 — $ — Granted 127,459 22.44 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739) 21.38 Vested into shares (250,965) 22.29 — — Outstanding at December 31, 2019 175,688 $ 21.65 — $ — A summary of the status of the Company’s performance based restricted stock units under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017, and changes during the years then ended is as follows: 2014 Omnibus Plan Performance-based restricted stock units Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2016 51,197 $ 13.30 Granted 26,398 24.43 Vested into shares (19,861) 15.34 Forfeited (4,140) 17.91 Outstanding at December 31, 2017 53,594 $ 17.68 Granted 40,269 27.59 Vested into shares (28,109) 18.69 Forfeited (1,766) 27.59 Outstanding at December 31, 2018 63,988 $ 21.28 — $ — Granted 38,746 22.53 32,249 21.38 Conversion to equity awards 32,249 21.38 (32,249) 21.38 Vested into shares (51,284) 25.31 — — Forfeited (19,972) 21.38 — — Outstanding at December 31, 2019 63,727 $ 22.76 — $ — A summary of the status of the Company’s non-performance-based restricted stock units under the Veritex (Green) 2014 Plan as of December 31, 2019 and changes during the year 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 December 31, 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 December 31, 2019 and changes during the year 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 (825) 21.38 Outstanding at December 31, 2019 25,320 $ 21.38 |
Schedule of employee stock purchase plan activity | A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2010 Incentive Plan as of December 31, 2019, 2018 and 2017 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2019 2018 2017 Nonperformance-based stock options exercised 454 803 488 Nonperformance-based restricted stock units vested — 713 26 A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2014 Omnibus Plan as of December 31, 2019, 2018 and 2017 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2019 2018 2017 Nonperformance-based stock options exercised 334 383 41 Nonperformance-based restricted stock units vested 6,113 2,128 568 Performance-based restricted stock units vested 1,089 745 530 Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2019 Non-performance-based stock options exercised $ 3,054 |
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 to 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 | The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions used for the grants: For the Year Ended December 31, 2019 2018 2017 Dividend yield 1.73% to 2.01% — % — % Expected life 4.52 to 7.51 years 5.0 to 7.5 years 6.13 to 7.5 years Expected volatility 28.85% to 29.65% 27.87% to 37.55% 30.56% to 33.19% Risk-free interest rate 1.53% to 2.51% 1.06% to 2.94% 1.96% to 2.32% |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 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 To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Total capital (to risk-weighted assets) Company $ 917,939 13.10 % $ 560,573 8.0 % n/a n/a Bank 870,838 12.44 560,024 8.0 $ 700,031 10.0 % Tier 1 capital (to risk-weighted assets) Company 771,679 11.02 420,152 6.0 n/a n/a Bank 840,126 12.00 420,063 6.0 560,084 8.0 Common equity tier 1 (to risk-weighted assets) Company 742,675 10.60 315,287 4.5 n/a n/a Bank 840,126 12.00 315,047 4.5 455,068 6.5 Tier 1 capital (to average assets) Company 771,679 10.17 303,512 4.0 n/a n/a Bank 840,126 11.07 303,569 4.0 379,461 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) | 12 Months Ended |
Dec. 31, 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 | The following table presents the amounts recorded on the consolidated balance sheets on the acquisition date of January 1, 2019, showing the estimated fair value as reported at January 1, 2019, the measurement period adjustments and the fair value determined to be final as of December 31, 2019. Estimate at January 1, 2019 Measurement Period Adjustments Final Fair Value Assets Cash and cash equivalents $ 112,720 $ — $ 112,720 Investment securities 661,032 (240) 660,792 Equity securities 12,322 — 12,322 Federal Home Loan Bank and Federal Reserve Bank stock 29,490 — 29,490 Loans held for sale 9,360 — 9,360 Loans held for investment 3,245,492 (244) 3,245,248 Accrued interest receivable 1 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 trusts 666 — 666 Intangible assets, net 65,718 — 65,718 Goodwill 206,821 2,572 209,393 Other assets 10,720 404 11,124 Right of use asset 1 9,373 — 9,373 Deferred taxes 1 11,535 248 11,783 Current taxes 1 1,799 13 1,812 Branch assets held for sale 85,307 — 85,307 Total assets $ 4,570,295 $ (96) $ 4,570,199 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 (96) 26,491 Lease liability 2 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 $ (96) $ 3,926,290 1 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 2 Lease liability is included in "Accounts payable and other accrued expenses" in our consolidated balance sheets for the year ended December 31, 2019. |
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 |
Summary of 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. |
Summary of Pro Forma Information, Business Acquisition | 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, 2017: Year Ended December 31, 2018 2017 Net interest income $ 274,031 $ 254,350 Net income 108,490 38,352 Basic earnings per share $ 2.00 $ 0.71 Diluted earnings per share 1.97 0.70 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheet December 31, 2019 2018 Assets Cash and cash equivalents $ 45,563 $ 40,474 Investment in subsidiaries 1,289,273 506,902 Other assets 2,780 940 Total assets $ 1,337,616 $ 548,316 Liabilities and Stockholders’ Equity Other liabilities $ 1,248 $ 987 Other borrowings 145,571 16,691 Total liabilities 146,819 17,678 Stockholders’ equity Common stock 511 243 Additional paid-in capital 1,117,879 449,427 Retained earnings 147,911 83,968 Accumulated other comprehensive income 19,061 (2,930) Treasury stock (94,565) (70) Total stockholders’ equity 1,190,797 530,638 Total liabilities and stockholders’ equity $ 1,337,616 $ 548,316 |
Statements of Income | Statements of Income Year Ended December 31, 2019 2018 2017 Cash dividends from subsidiary $ 56,750 $ — $ — Excess of earnings over dividend from subsidiary 43,199 44,850 17,980 Other 50 20 8 99,999 44,870 17,988 Interest on borrowings 4,672 974 598 Salaries and employee benefits 790 853 712 Merger and acquisition expense 5,739 4,415 2,256 11,201 6,242 3,566 Earnings before income tax benefit 88,798 38,628 14,422 Income tax benefit (1,941) (713) (730) Net income $ 90,739 $ 39,341 $ 15,152 |
Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 90,739 $ 39,341 $ 15,152 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount, net and debt issuance costs 2,353 2 45 Equity in undistributed net income of Bank (43,199) (44,850) (17,980) Decrease (increase) in other assets (1,861) 2,226 3,523 (Decrease) increase in other liabilities (6,370) (2,635) 1,353 Net cash (used in) provided by operating activities 41,662 (5,916) 2,093 Cash flows from investing activities: Net cash paid in Sovereign acquisition — — (55,949) Net cash paid in Liberty acquisition — — (24,812) Net cash received in Green acquisition 5,818 — — Net cash used in investing activities 5,818 — (80,761) Cash flows from financing activities: Proceeds from issuance of subordinated debt 75,000 — — Net proceeds from sale of common stock in public offering — 2 56,681 Redemption of preferred stock — — (24,500) Net change in other borrowings — — (4,625) Proceeds from exercise of employee stock options 3,938 454 175 Proceeds from payments on ESOP loan — 109 109 Offering costs paid in connection with acquisition — (899) (772) Share repurchase (94,533) — — Payment of dividends (26,796) — — Dividends paid on preferred stock — — (42) Net cash (used in) provided by financing activities (42,391) (334) 27,026 Net (decrease) increase in cash and cash equivalents 5,089 (6,250) (51,642) Cash and cash equivalents at beginning of year 40,474 46,724 98,366 Cash and cash equivalents at end of year $ 45,563 $ 40,474 $ 46,724 |
Summary of Quarterly Financia_2
Summary of Quarterly Financial Statements (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following quarterly information is unaudited. However, in the opinion of management, the information reflects all adjustments, which are necessary for the fair presentation of the results of operations, for the periods presented. 2019 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 91,742 $ 95,643 $ 96,177 $ 95,224 Interest Expense 21,878 24,769 24,735 22,307 Net interest income 69,864 70,874 71,442 72,917 Provision for loan losses 3,493 9,674 3,335 5,012 Noninterest income 7,132 8,430 6,034 8,484 Noninterest expense 36,284 34,630 39,896 66,993 Provision for income taxes 8,168 7,595 7,369 1,989 Net income available to common stockholders $ 29,051 $ 27,405 $ 26,876 $ 7,407 Earnings per share: Basic $ 0.56 $ 0.52 $ 0.50 $ 0.14 Diluted 0.56 0.51 0.49 0.13 2018 Fourth Quarter Third Quarter Second Quarter First Quarter Interest Income $ 38,182 $ 37,920 $ 34,857 $ 34,110 Interest Expense 9,487 8,642 6,931 4,985 Net interest income 28,695 29,278 27,926 29,125 Provision for loan losses 1,364 3,057 1,504 678 Noninterest income 3,619 2,408 2,290 2,758 Noninterest expense 17,538 18,246 16,169 17,306 Provision for income taxes 3,587 1,448 2,350 3,511 Net income available to common stockholders $ 9,825 $ 8,935 $ 10,193 $ 10,388 Earnings per share: Basic $ 0.41 $ 0.37 $ 0.42 $ 0.43 Diluted 0.40 0.36 0.42 0.42 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Organization (Details) | 12 Months Ended |
Dec. 31, 2019branch | |
Product Information [Line Items] | |
Number of mortgage offices | 1 |
Dallas-Fort Worth | |
Product Information [Line Items] | |
Number of branches | 25 |
Houston | |
Product Information [Line Items] | |
Number of branches | 12 |
Louisville, Kentucky | |
Product Information [Line Items] | |
Number of branches | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other investments | $ 2,949 | $ 855 | $ 8 |
Other noninterest income | $ (3,472) | (1,677) | (915) |
Restatement Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other investments | 835 | 298 | |
Other noninterest income | $ 835 | $ 298 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Restrictions On Cash (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Required regulatory cash reserve balances | $ 170,593,000 | $ 64,752,000 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Investment Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other-than-temporary impairment losses reflected in earnings as realized losses | $ 0 | $ 0 | $ 0 |
Impairment loss, equity securities | 0 | 0 | |
Changes in fair value of loans, gain (loss) | $ 303,000 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Bank Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 15 years | ||
Minimum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum | Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 3 years | ||
Maximum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 40 years | ||
Maximum | Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives | 10 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use asset | $ 13,205 | |
Operating lease liability | $ 14,095 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use asset | $ 18,705 | |
Operating lease liability | $ 18,753 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Core deposit intangibles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 7 years | ||
Core deposit intangibles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 10 years |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Marketing Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Marketing expense | $ 3,259 | $ 1,783 | $ 1,293 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Penalties and interest expense | $ 309,000 | $ 0 | $ 0 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings (numerator) | |||||||||||
Net income | $ 90,739 | $ 39,341 | $ 15,152 | ||||||||
Less: preferred stock dividends | 0 | 0 | 42 | ||||||||
Net income allocated to common stockholders | $ 29,051 | $ 27,405 | $ 26,876 | $ 7,407 | $ 9,825 | $ 8,935 | $ 10,193 | $ 10,388 | $ 90,739 | $ 39,341 | $ 15,110 |
Shares (denominator) | |||||||||||
Weighted average shares outstanding for basic EPS (thousands) (in shares) | 53,154,000 | 24,169,000 | 18,404,000 | ||||||||
Dilutive effect of employee stock-based awards (in shares) | 824,000 | 421,000 | 406,000 | ||||||||
Adjusted weighted average shares outstanding (in shares) | 53,978,000 | 24,590,000 | 18,810,000 | ||||||||
Earnings per share: | |||||||||||
Basic (in USD per share) | $ 0.56 | $ 0.52 | $ 0.50 | $ 0.14 | $ 0.41 | $ 0.37 | $ 0.42 | $ 0.43 | $ 1.71 | $ 1.63 | $ 0.82 |
Diluted (in USD per share) | $ 0.56 | $ 0.51 | $ 0.49 | $ 0.13 | $ 0.40 | $ 0.36 | $ 0.42 | $ 0.42 | $ 1.68 | $ 1.60 | $ 0.80 |
Excluded from diluted EPS weighted average shares (in shares) | 0 | 0 | 0 |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Disclosures of Cash Flow Information: | ||||
Cash paid for interest | $ 88,175 | $ 29,178 | $ 10,680 | |
Cash paid for income taxes | 24,100 | 6,525 | 9,761 | |
Supplemental Disclosures of Non-Cash Flow Information: | ||||
Setup of ROU asset and lease liability upon adoption of ASC 842 | 9,380 | |||
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital | 788 | |||
Subordinated debt issuance costs accrued but not yet paid in 2019 | 315 | 0 | 0 | |
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 | (48) | 0 | 0 | |
Net issuance of common stock for vesting of restricted stock units | 1,349 | 595 | 312 | |
Net foreclosure of other real estate owned and repossessed assets | 5,995 | 8 | 1,037 | |
Reclassification of branch assets held for sale to loans held for investment | 26,171 | 0 | 33,552 | |
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits | 1,713 | 0 | 64,627 | |
Noncash assets acquired | ||||
Investment securities | 660,792 | 0 | 220,444 | |
Equity securities | 12,322 | 0 | 0 | |
Other investments | 29,490 | 0 | 8,847 | |
Loans held for sale | 9,360 | 0 | 0 | |
Loans held for investment | 3,245,248 | (4,050) | 1,060,436 | |
Accrued interest receivable2 | 11,395 | 0 | 4,293 | |
Bank-owned life insurance | 56,841 | 0 | 0 | |
Bank premises, furniture and equipment | 36,855 | 1,162 | 24,424 | |
Investments in trusts | 666 | 0 | 0 | |
Other real estate owned | 0 | 0 | 448 | |
Intangible assets, net | 65,718 | (956) | 16,722 | |
Goodwill | 209,393 | 1,995 | 134,797 | |
Other assets | 11,124 | 1,806 | 484,097 | |
Right of use asset2 | 9,373 | |||
Deferred taxes2 | 11,783 | 0 | 0 | |
Current taxes2 | 1,812 | 0 | 0 | |
Assets held for sale | 85,307 | 0 | 0 | |
Total assets | 4,457,479 | (43) | 1,954,508 | |
Noncash liabilities assumed | ||||
Non-interest-bearing deposits | 825,364 | 303 | 333,912 | |
Interest-bearing deposits | 1,300,825 | 0 | 512,750 | |
Certificates and other time deposits | 1,346,915 | 0 | 358,555 | |
Accounts payable and accrued expenses | 26,491 | 0 | 7,571 | |
Lease liability4 | 9,373 | |||
Accrued interest payable | 5,181 | (260) | 948 | |
Securities sold under agreements to repurchase | 3,226 | 0 | 0 | |
Advances from Federal Home Loan Bank | 300,000 | 0 | 84,625 | |
Subordinated debentures and subordinated notes | 56,233 | 0 | 8,609 | |
Liabilities held for sale | 52,682 | 0 | 0 | |
Total liabilities | 3,926,290 | 43 | 1,306,970 | |
Equity | 49,000 | |||
Accounts payable and accrued expenses | 185 | |||
Sovereign Bancshares, Inc. | ||||
Noncash liabilities assumed | ||||
Market value of common stock issued | 0 | 0 | $ 136,385 | |
Shares of common stock exchanged in connection with acquisition (in shares) | 5,117,642 | |||
Liberty Bancshares, Inc. | ||||
Noncash liabilities assumed | ||||
Market value of common stock issued | $ 0 | 0 | $ 40,337 | |
Shares of common stock exchanged in connection with acquisition (in shares) | 29,532,957 | 1,449,944 | ||
Green Bancorp, Inc. | ||||
Noncash liabilities assumed | ||||
Market value of common stock issued | $ 631,415 | $ 631,415 | 0 | $ 0 |
Shares of common stock exchanged in connection with acquisition (in shares) | 29,532,957 | |||
Preferred Stock | ||||
Noncash liabilities assumed | ||||
Equity | 0 | 0 | 24,500 | |
Restricted stock units | Green Bancorp, Inc. | ||||
Noncash liabilities assumed | ||||
Market value of common stock issued | $ 5,801 | $ 0 | $ 0 | |
Shares of common stock exchanged in connection with acquisition (in shares) | 497,594 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - Accounting Standards Update 2016-13 - Subsequent Event $ in Thousands | Jan. 01, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Off-balance sheet, credit loss, liability | $ 2,400 |
Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financing receivable, allowance for credit loss | 18,300 |
Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financing receivable, allowance for credit loss | 19,600 |
Scenario, Previously Reported | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financing receivable, allowance for credit loss | (29,834) |
Restatement Adjustment | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financing receivable, allowance for credit loss | 69,420 |
Restatement Adjustment | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Financing receivable, allowance for credit loss | 71,140 |
Retained Earnings | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | 15,990 |
Retained Earnings | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect of new accounting principle in period of adoption | $ 17,350 |
Share Transactions - (Details)
Share Transactions - (Details) - Common Stock - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 12, 2019 | Sep. 03, 2019 | Jan. 28, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 175,000,000 | $ 50,000,000 | ||
Stock repurchase program, additional amount authorized | $ 75,000,000 | $ 50,000,000 | ||
Shares repurchased (in shares) | 3,802,711 | |||
Average price (in dollars per share) | $ 24.86 |
Securities - Equity Securities
Securities - Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Equity securities | $ 11,122 | |
Unrealized gain recognized on equity securities with a readily determinable fair value | 325 | $ 0 |
Equity securities without readily determinable fair value | $ 3,575 | $ 2,050 |
Securities - Debt Securities (D
Securities - Debt Securities (Details) - USD ($) | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | $ 942,131,000 | $ 266,404,000 | |
Gross unrealized gains | 23,997,000 | 392,000 | |
Gross unrealized losses | 1,763,000 | 4,101,000 | |
Total investment securities available for sale, fair value | 964,365,000 | 262,695,000 | |
Held to maturity | |||
Amortized cost | 32,965,000 | 0 | |
Gross unrecognized gains | 1,845,000 | ||
Gross unrecognized loss | 0 | ||
Fair value | 34,810,000 | ||
Debt securities, available-for-sale, transfer to trading, gain (loss) | $ 0 | ||
U.S. government agencies | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 9,096,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 118,000 | ||
Total investment securities available for sale, fair value | 8,978,000 | ||
Corporate bonds | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 76,997,000 | 26,518,000 | |
Gross unrealized gains | 1,974,000 | 84,000 | |
Gross unrealized losses | 0 | 134,000 | |
Total investment securities available for sale, fair value | 78,971,000 | 26,468,000 | |
Municipal securities | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 74,956,000 | 40,275,000 | |
Gross unrealized gains | 3,724,000 | 10,000 | |
Gross unrealized losses | 0 | 338,000 | |
Total investment securities available for sale, fair value | 78,680,000 | 39,947,000 | |
Held to maturity | |||
Amortized cost | 22,535,000 | ||
Gross unrecognized gains | 1,350,000 | ||
Gross unrecognized loss | 0 | ||
Fair value | 23,885,000 | ||
Debt securities, held-to-maturity, transfer, amount | 4,758,000 | ||
Mortgage-backed securities | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 288,938,000 | 97,117,000 | |
Gross unrealized gains | 9,512,000 | 101,000 | |
Gross unrealized losses | 260,000 | 2,167,000 | |
Total investment securities available for sale, fair value | 298,190,000 | 95,051,000 | |
Held to maturity | |||
Amortized cost | 8,621,000 | ||
Gross unrecognized gains | 452,000 | ||
Gross unrecognized loss | 0 | ||
Fair value | 9,073,000 | ||
Debt securities, held-to-maturity, transfer, amount | $ 3,045,000 | ||
Collateralized mortgage obligations | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 431,276,000 | 92,906,000 | |
Gross unrealized gains | 6,465,000 | 197,000 | |
Gross unrealized losses | 1,503,000 | 1,344,000 | |
Total investment securities available for sale, fair value | 436,238,000 | 91,759,000 | |
Held to maturity | |||
Amortized cost | 1,809,000 | ||
Gross unrecognized gains | 43,000 | ||
Gross unrecognized loss | 0 | ||
Fair value | 1,852,000 | ||
Asset-backed securities | |||
Available for Sale | |||
Total investment securities available for sale, amortized cost basis | 69,964,000 | 492,000 | |
Gross unrealized gains | 2,322,000 | 0 | |
Gross unrealized losses | 0 | 0 | |
Total investment securities available for sale, fair value | $ 72,286,000 | $ 492,000 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)investment | Dec. 31, 2018USD ($)investment |
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | $ 139,100 | $ 71,445 |
Less than 12 months unrealized loss | 1,763 | 644 |
12 months or more fair value | 0 | 115,907 |
12 months or more unrealized loss | 0 | 3,457 |
Fair value, totals | 139,100 | 187,352 |
Unrealized loss, totals | $ 1,763 | $ 4,101 |
Number of investment positions in an unrealized loss position | investment | 11 | 142 |
U.S. government agencies | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | $ 5,671 | |
Less than 12 months unrealized loss | 68 | |
12 months or more fair value | 3,306 | |
12 months or more unrealized loss | 50 | |
Fair value, totals | 8,977 | |
Unrealized loss, totals | 118 | |
Corporate bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | 6,689 | |
Less than 12 months unrealized loss | 134 | |
12 months or more fair value | 0 | |
12 months or more unrealized loss | 0 | |
Fair value, totals | 6,689 | |
Unrealized loss, totals | 134 | |
Municipal securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | $ 468 | 16,043 |
Less than 12 months unrealized loss | 1 | 92 |
12 months or more fair value | 0 | 10,428 |
12 months or more unrealized loss | 0 | 246 |
Fair value, totals | 468 | 26,471 |
Unrealized loss, totals | 1 | 338 |
Mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | 28,883 | 24,277 |
Less than 12 months unrealized loss | 370 | 279 |
12 months or more fair value | 0 | 59,637 |
12 months or more unrealized loss | 0 | 1,888 |
Fair value, totals | 28,883 | 83,914 |
Unrealized loss, totals | 370 | 2,167 |
Collateralized mortgage obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Qualitative Disclosure [Abstract] | ||
Less than 12 months, fair value | 109,749 | 18,765 |
Less than 12 months unrealized loss | 1,392 | 71 |
12 months or more fair value | 0 | 42,536 |
12 months or more unrealized loss | 0 | 1,273 |
Fair value, totals | 109,749 | 61,301 |
Unrealized loss, totals | $ 1,392 | $ 1,344 |
Securities - Maturities (Detail
Securities - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale, amortized cost | ||
Due in one year or less | $ 2,963 | |
Due from one year to five years | $ 4,904 | 34,933 |
Due from five years to ten years | 74,596 | 19,682 |
Due after ten years | 72,453 | 18,311 |
Total investment securities available for sale, single maturity date | 151,953 | 75,889 |
Total investment securities available for sale, amortized cost basis | 942,131 | 266,404 |
Available for sale, fair value | ||
Due in one year or less | 2,966 | |
Due from one year to five years | 5,100 | 34,854 |
Due from five years to ten years | 76,403 | 19,468 |
Due after ten years | 76,148 | 18,105 |
Total investment securities available for sale | 157,651 | 75,393 |
Total investment securities available for sale, fair value | 964,365 | 262,695 |
Held-to-maturity, amortized cost | ||
Due from one year to five years | 0 | |
Due from five years to ten years | 1,204 | |
Due after ten years | 21,331 | |
Total investment securities held to maturity | 22,535 | |
Amortized cost | 32,965 | 0 |
Held-to-maturity, fair value | ||
Due from one year to five years | 0 | |
Due from five years to ten years | 1,219 | |
Due after ten years | 22,666 | |
Total investment held to maturity | 23,885 | |
Total investment securities, held to maturity, fair value | 34,810 | |
Mortgage-backed securities | ||
Available for sale, amortized cost | ||
Amortized cost | 720,214 | 190,023 |
Total investment securities available for sale, amortized cost basis | 288,938 | 97,117 |
Available for sale, fair value | ||
Fair value | 734,428 | 186,810 |
Total investment securities available for sale, fair value | 298,190 | 95,051 |
Held-to-maturity, amortized cost | ||
Amortized cost | 10,430 | |
Amortized cost | 8,621 | |
Held-to-maturity, fair value | ||
Fair value | 10,925 | |
Total investment securities, held to maturity, fair value | 9,073 | |
Asset-backed securities | ||
Available for sale, amortized cost | ||
Amortized cost | 69,964 | 492 |
Total investment securities available for sale, amortized cost basis | 69,964 | 492 |
Available for sale, fair value | ||
Fair value | 72,286 | 492 |
Total investment securities available for sale, fair value | 72,286 | $ 492 |
Held-to-maturity, amortized cost | ||
Amortized cost | 0 | |
Held-to-maturity, fair value | ||
Fair value | $ 0 |
Securities - Proceeds and Gross
Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 567,718 | $ 40,822 | $ 159,869 |
Gross realized gains | 532 | 335 | 398 |
Gross realized losses | $ 2,384 | $ 399 | $ 176 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Allowance for Loan Losses | ||||
Loans, gross | $ 5,921,071 | $ 2,555,509 | ||
Deferred loan costs (fees) | 134 | (15) | ||
Allowance for loan losses | (29,834) | (19,255) | $ (12,808) | $ (8,524) |
Total loans held for investment, net | 5,891,371 | 2,536,239 | ||
Contractual principal balance | 57,811 | 22,309 | ||
Discount on retained loans from SBA loan sales | 2,193 | 2,398 | ||
Real Estate | Construction and land | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 629,374 | 324,863 | ||
Real Estate | Farmland | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 16,939 | 10,528 | ||
Real Estate | Real estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 869,852 | 349,202 | ||
Allowance for loan losses | (3,343) | (1,975) | (1,473) | (1,116) |
Real Estate | Real estate | 1 - 4 family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 549,811 | 297,917 | ||
Real Estate | Real estate | Multi-family residential | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 320,041 | 51,285 | ||
Real Estate | Commercial Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 2,490,983 | 1,103,032 | ||
Allowance for loan losses | (10,117) | (6,463) | (4,410) | (3,003) |
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 1,712,838 | 760,772 | ||
Allowance for loan losses | (12,369) | (8,554) | (5,588) | (2,955) |
Mortgage warehouse | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 183,628 | 0 | ||
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Loans, gross | 17,457 | 7,112 | ||
Allowance for loan losses | $ (122) | $ (19) | $ (22) | $ (35) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | $ 29,779,000 | $ 24,745,000 |
Loans and leases receivable, impaired, interest lost on nonaccrual loans | 1,672,000 | 724,000 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 5,672,000 | 19,769,000 |
Mortgage warehouse | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 54,000 | 2,000 |
Construction and land | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 567,000 | 2,399,000 |
Farmland | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 21,905,000 | 2,575,000 |
1 - 4 family residential | Real estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 1,581,000 | 0 |
Multi-family residential | Real estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Non-accrual loans, excluding purchased credit impaired loans | 0 | 0 |
PCI loans | ||
Loans and Allowance for Loan Losses | ||
Loans and leases receivable, impaired, interest lost on nonaccrual loans | $ 0 | $ 16,902,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-Accrual and Past Due Loans | ||
Total Past Due | $ 18,571 | $ 5,821 |
Total current | 5,779,858 | 2,508,858 |
Loans | 5,921,071 | 2,555,509 |
Total 90 Days Past Due and Still Accruing | 3,660 | 0 |
30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 6,209 | 4,727 |
60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 8,702 | 1,094 |
90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 3,660 | 0 |
Real Estate | Construction and land | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 305 |
Total current | 629,374 | 324,558 |
Loans | 629,374 | 324,863 |
Total 90 Days Past Due and Still Accruing | 800 | 0 |
Real Estate | Construction and land | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 305 |
Real Estate | Construction and land | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Construction and land | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Total current | 16,939 | 10,528 |
Loans | 16,939 | 10,528 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Farmland | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 869,852 | 349,202 |
Real Estate | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 4,714 | 3,465 |
Total current | 2,389,415 | 1,082,559 |
Loans | 2,490,983 | 1,103,032 |
Total 90 Days Past Due and Still Accruing | 511 | 0 |
Real Estate | Commercial Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 12 | 3,465 |
Real Estate | Commercial Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 3,834 | 0 |
Real Estate | Commercial Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 868 | 0 |
Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 4,270 | 397 |
Total current | 541,772 | 297,435 |
Loans | 549,811 | 297,917 |
Total 90 Days Past Due and Still Accruing | 959 | 0 |
Real Estate | 1 - 4 family residential | Real estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 2,595 | 131 |
Real Estate | 1 - 4 family residential | Real estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 520 | 266 |
Real Estate | 1 - 4 family residential | Real estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 1,155 | 0 |
Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Total current | 320,041 | 51,285 |
Loans | 320,041 | 51,285 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Real Estate | Multi-family residential | Real estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | 0 |
Commercial | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 6,776 | 1,644 |
Total current | 1,684,043 | 735,391 |
Loans | 1,712,838 | 760,772 |
Total 90 Days Past Due and Still Accruing | 1,317 | 0 |
Commercial | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 3,572 | 816 |
Commercial | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 1,707 | 828 |
Commercial | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 1,497 | 0 |
Mortgage warehouse | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | |
Total current | 183,628 | |
Loans | 183,628 | 0 |
Total 90 Days Past Due and Still Accruing | 0 | |
Mortgage warehouse | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | |
Mortgage warehouse | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | |
Mortgage warehouse | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 0 | |
Consumer | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 2,811 | 10 |
Total current | 14,646 | 7,102 |
Loans | 17,457 | 7,112 |
Total 90 Days Past Due and Still Accruing | 73 | 0 |
Consumer | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 30 | 10 |
Consumer | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 2,641 | 0 |
Consumer | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total Past Due | 140 | 0 |
Financial Asset Acquired with Credit Deterioration | ||
Non-Accrual and Past Due Loans | ||
Loans | 126,718 | 40,830 |
Financial Asset Acquired with Credit Deterioration | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total 90 Days Past Due and Still Accruing | 41,328 | 527 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Construction and land | ||
Non-Accrual and Past Due Loans | ||
Loans | 3,947 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 96,854 | 17,008 |
Financial Asset Acquired with Credit Deterioration | Real Estate | 1 - 4 family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 3,769 | 85 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Multi-family residential | Real estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Commercial | ||
Non-Accrual and Past Due Loans | ||
Loans | 22,019 | 23,737 |
Financial Asset Acquired with Credit Deterioration | Mortgage warehouse | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | |
Financial Asset Acquired with Credit Deterioration | Consumer | ||
Non-Accrual and Past Due Loans | ||
Loans | $ 129 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans | ||
Unpaid Contractual Principal Balance | $ 27,616 | $ 8,791 |
Recorded Investment with No Allowance | 23,112 | 6,207 |
Recorded Investment with Allowance | 4,504 | 2,584 |
Total Recorded Investment | 27,616 | 8,791 |
Related Allowance | 1,602 | 368 |
Average Recorded Investment During YTD | 33,088 | 9,289 |
Real Estate | Construction and land | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 567 | 2,016 |
Recorded Investment with No Allowance | 0 | 2,016 |
Recorded Investment with Allowance | 567 | 0 |
Total Recorded Investment | 567 | 2,016 |
Related Allowance | 128 | 0 |
Average Recorded Investment During YTD | 1,793 | 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 During YTD | 0 | 0 |
Real Estate | Commercial Real Estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 21,644 | 2,939 |
Recorded Investment with No Allowance | 21,040 | 2,939 |
Recorded Investment with Allowance | 604 | 0 |
Total Recorded Investment | 21,644 | 2,939 |
Related Allowance | 395 | 0 |
Average Recorded Investment During YTD | 22,529 | 3,032 |
Real Estate | 1 - 4 family residential | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 156 | 542 |
Recorded Investment with No Allowance | 0 | 542 |
Recorded Investment with Allowance | 156 | 0 |
Total Recorded Investment | 156 | 542 |
Related Allowance | 37 | 0 |
Average Recorded Investment During YTD | 158 | 565 |
Real Estate | Multi-family residential | Real estate | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | 0 |
Recorded Investment with No Allowance | 0 | 0 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | 0 | 0 |
Commercial | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 5,188 | 3,228 |
Recorded Investment with No Allowance | 2,011 | 644 |
Recorded Investment with Allowance | 3,177 | 2,584 |
Total Recorded Investment | 5,188 | 3,228 |
Related Allowance | 1,042 | 368 |
Average Recorded Investment During YTD | 8,546 | 3,351 |
Mortgage warehouse | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 0 | |
Recorded Investment with No Allowance | 0 | |
Recorded Investment with Allowance | 0 | |
Total Recorded Investment | 0 | |
Related Allowance | 0 | |
Average Recorded Investment During YTD | 0 | |
Consumer | ||
Impaired Loans | ||
Unpaid Contractual Principal Balance | 61 | 66 |
Recorded Investment with No Allowance | 61 | 66 |
Recorded Investment with Allowance | 0 | 0 |
Total Recorded Investment | 61 | 66 |
Related Allowance | 0 | 0 |
Average Recorded Investment During YTD | $ 62 | $ 79 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Trouble Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Troubled Debt Restructuring | ||
Recorded investment in TDRs | $ 2,142 | $ 1,171 |
Number of Loans | Loan | 2 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 1,034 | $ 628 |
Commercial | ||
Troubled Debt Restructuring | ||
Number of Loans | Loan | 2 | 3 |
Pre- Modification Outstanding Recorded Investment | $ 1,034 | $ 628 |
Adjusted Interest Rate | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Adjusted Interest Rate | Commercial | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Extended Maturity | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 115 | 612 |
Extended Maturity | Commercial | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 115 | 612 |
Extended Maturity and Restructured Payments | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 919 | 0 |
Extended Maturity and Restructured Payments | Commercial | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 919 | 0 |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | 0 | 0 |
Extended Maturity, Restructured Payments and Adjusted Interest Rate | Commercial | ||
Troubled Debt Restructuring | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - TDR's Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018Loan | |
Troubled Debt Restructuring | ||
Number of Loans | 2 | 3 |
Number of loans restructured past due | 0 | |
Loans acquired | $ | $ 0 | |
Number of loans modified as a troubled debt restructured loan within previous 12 months and for which there was a payment default | 0 | 0 |
Commercial | ||
Troubled Debt Restructuring | ||
Number of Loans | 2 | 3 |
Number of loans, modified terms | 2 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Credit Quality Indicators | ||
Loans | $ 5,921,071 | $ 2,555,509 |
Pass | ||
Credit Quality Indicators | ||
Loans | 5,640,781 | 2,473,185 |
Special Mention | ||
Credit Quality Indicators | ||
Loans | 80,293 | 18,052 |
Substandard | ||
Credit Quality Indicators | ||
Loans | 73,279 | 23,442 |
Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
PCI | ||
Credit Quality Indicators | ||
Loans | 126,718 | 40,830 |
Real Estate | Construction and land | ||
Credit Quality Indicators | ||
Loans | 629,374 | 324,863 |
Real Estate | Construction and land | Pass | ||
Credit Quality Indicators | ||
Loans | 618,773 | 320,987 |
Real Estate | Construction and land | Special Mention | ||
Credit Quality Indicators | ||
Loans | 3,965 | 1,860 |
Real Estate | Construction and land | Substandard | ||
Credit Quality Indicators | ||
Loans | 2,689 | 2,016 |
Real Estate | Construction and land | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Construction and land | PCI | ||
Credit Quality Indicators | ||
Loans | 3,947 | 0 |
Real Estate | Farmland | ||
Credit Quality Indicators | ||
Loans | 16,939 | 10,528 |
Real Estate | Farmland | Pass | ||
Credit Quality Indicators | ||
Loans | 16,939 | 10,528 |
Real Estate | Farmland | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Farmland | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 869,852 | 349,202 |
Real Estate | Commercial Real Estate | ||
Credit Quality Indicators | ||
Loans | 2,490,983 | 1,103,032 |
Real Estate | Commercial Real Estate | Pass | ||
Credit Quality Indicators | ||
Loans | 2,332,357 | 1,065,982 |
Real Estate | Commercial Real Estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 23,494 | 7,056 |
Real Estate | Commercial Real Estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 38,278 | 12,986 |
Real Estate | Commercial Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Real Estate | Commercial Real Estate | PCI | ||
Credit Quality Indicators | ||
Loans | 96,854 | 17,008 |
Commercial | ||
Credit Quality Indicators | ||
Loans | 1,712,838 | 760,772 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Loans | 1,610,150 | 720,583 |
Commercial | Special Mention | ||
Credit Quality Indicators | ||
Loans | 51,999 | 8,900 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Loans | 28,670 | 7,552 |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Commercial | PCI | ||
Credit Quality Indicators | ||
Loans | 22,019 | 23,737 |
Mortgage warehouse | ||
Credit Quality Indicators | ||
Loans | 183,628 | 0 |
Mortgage warehouse | Pass | ||
Credit Quality Indicators | ||
Loans | 183,628 | |
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 | |
Mortgage warehouse | PCI | ||
Credit Quality Indicators | ||
Loans | 0 | |
Consumer | ||
Credit Quality Indicators | ||
Loans | 17,457 | 7,112 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Loans | 17,106 | 6,950 |
Consumer | Special Mention | ||
Credit Quality Indicators | ||
Loans | 40 | 0 |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Loans | 182 | 162 |
Consumer | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Consumer | PCI | ||
Credit Quality Indicators | ||
Loans | 129 | 0 |
1 - 4 family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 549,811 | 297,917 |
1 - 4 family residential | Real Estate | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 541,787 | 296,870 |
1 - 4 family residential | Real Estate | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 795 | 236 |
1 - 4 family residential | Real Estate | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 3,460 | 726 |
1 - 4 family residential | Real Estate | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
1 - 4 family residential | Real Estate | Real estate | PCI | ||
Credit Quality Indicators | ||
Loans | 3,769 | 85 |
Multi-family residential | Real Estate | Real estate | ||
Credit Quality Indicators | ||
Loans | 320,041 | 51,285 |
Multi-family residential | Real Estate | Real estate | Pass | ||
Credit Quality Indicators | ||
Loans | 320,041 | 51,285 |
Multi-family residential | Real Estate | Real estate | Special Mention | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | Substandard | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | Doubtful | ||
Credit Quality Indicators | ||
Loans | 0 | 0 |
Multi-family residential | Real Estate | Real estate | PCI | ||
Credit Quality Indicators | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | $ 19,255 | $ 12,808 | $ 8,524 | |||
Provision charged to earnings | 21,514 | 6,603 | 5,114 | |||
Charge-offs | (11,320) | (197) | (839) | |||
Recoveries | 385 | 41 | 9 | |||
Net charge-offs | (10,935) | (156) | (830) | |||
Balance at end of year | 29,834 | 19,255 | 12,808 | |||
Allowance for loan losses (as a percent) | 0.50% | 0.75% | 0.57% | |||
Period-end amount allocated to: | ||||||
Total specific reserves | $ 1,602 | $ 368 | $ 12 | |||
PCI Reserves | 593 | 1,302 | 0 | |||
General reserves | 27,639 | 17,585 | 12,796 | |||
Total | 19,255 | 12,808 | 8,524 | 29,834 | 19,255 | 12,808 |
Real Estate | Construction Land and Farmland | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 2,244 | 1,315 | 1,415 | |||
Provision charged to earnings | 1,639 | 929 | (100) | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs | 0 | 0 | 0 | |||
Balance at end of year | 3,883 | 2,244 | 1,315 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 128 | 0 | 0 | |||
PCI Reserves | 0 | 0 | 0 | |||
General reserves | 3,755 | 2,244 | 1,315 | |||
Total | 2,244 | 2,244 | 1,415 | 3,883 | 2,244 | 1,315 |
Real Estate | Real estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 1,975 | 1,473 | 1,116 | |||
Provision charged to earnings | 1,458 | 502 | 368 | |||
Charge-offs | (157) | 0 | (11) | |||
Recoveries | 67 | 0 | 0 | |||
Net charge-offs | (90) | 0 | (11) | |||
Balance at end of year | 3,343 | 1,975 | 1,473 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 37 | 0 | 0 | |||
PCI Reserves | 0 | 0 | 0 | |||
General reserves | 3,306 | 1,975 | 1,473 | |||
Total | 1,975 | 1,473 | 1,473 | 3,343 | 1,975 | 1,473 |
Real Estate | Commercial Real Estate | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 6,463 | 4,410 | 3,003 | |||
Provision charged to earnings | 3,654 | 2,053 | 1,407 | |||
Charge-offs | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | |||
Net charge-offs | 0 | 0 | 0 | |||
Balance at end of year | 10,117 | 6,463 | 4,410 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 395 | 0 | 0 | |||
PCI Reserves | 20 | 0 | 0 | |||
General reserves | 9,702 | 6,463 | 4,410 | |||
Total | 6,463 | 4,410 | 4,410 | 10,117 | 6,463 | 4,410 |
Commercial | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 8,554 | 5,588 | 2,955 | |||
Provision charged to earnings | 14,487 | 3,100 | 3,452 | |||
Charge-offs | (10,898) | (175) | (828) | |||
Recoveries | 226 | 41 | 9 | |||
Net charge-offs | (10,672) | (134) | (819) | |||
Balance at end of year | 12,369 | 8,554 | 5,588 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 1,042 | 368 | 12 | |||
PCI Reserves | 573 | 1,302 | 0 | |||
General reserves | 10,754 | 6,884 | 5,576 | |||
Total | 12,369 | 5,588 | 5,588 | 12,369 | 8,554 | 5,588 |
Consumer | ||||||
Analysis of allowance for loan losses | ||||||
Balance at beginning of year | 19 | 22 | 35 | |||
Provision charged to earnings | 276 | 19 | (13) | |||
Charge-offs | (265) | (22) | 0 | |||
Recoveries | 92 | 0 | 0 | |||
Net charge-offs | (173) | (22) | 0 | |||
Balance at end of year | 122 | 19 | 22 | |||
Period-end amount allocated to: | ||||||
Total specific reserves | 0 | 0 | 0 | |||
PCI Reserves | 0 | 0 | 0 | |||
General reserves | 122 | 19 | 22 | |||
Total | $ 19 | $ 19 | $ 35 | $ 122 | $ 19 | $ 22 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Allowance, Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | $ 27,616 | $ 8,791 |
Loans collectively evaluated for impairment | 5,766,737 | 2,505,888 |
Total Loans | 5,921,071 | 2,555,509 |
Real Estate | Construction Land and Farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 567 | 2,016 |
Loans collectively evaluated for impairment | 641,799 | 333,375 |
Total Loans | 646,313 | 335,391 |
Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 156 | 542 |
Loans collectively evaluated for impairment | 865,927 | 348,575 |
Total Loans | 869,852 | 349,202 |
Real Estate | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 21,644 | 2,939 |
Loans collectively evaluated for impairment | 2,372,485 | 1,083,085 |
Total Loans | 2,490,983 | 1,103,032 |
Commercial and Mortgage Warehouse | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 5,188 | |
Loans collectively evaluated for impairment | 1,869,259 | |
Total Loans | 1,896,466 | |
Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 3,228 | |
Loans collectively evaluated for impairment | 733,807 | |
Total Loans | 1,712,838 | 760,772 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans individually evaluated for impairment | 61 | 66 |
Loans collectively evaluated for impairment | 17,267 | 7,046 |
Total Loans | 17,457 | 7,112 |
PCI loans | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 126,718 | 40,830 |
Total Loans | 126,718 | 40,830 |
PCI loans | Real Estate | Construction Land and Farmland | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 3,947 | 0 |
PCI loans | Real Estate | Real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 3,769 | 85 |
PCI loans | Real Estate | Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 96,854 | 17,008 |
Total Loans | 96,854 | 17,008 |
PCI loans | Commercial and Mortgage Warehouse | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 22,019 | |
PCI loans | Commercial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 23,737 | |
Total Loans | 22,019 | 23,737 |
PCI loans | Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
PCI loans | 129 | 0 |
Total Loans | $ 129 | $ 0 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Loans (Details) - PCI loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Carrying amount | $ 126,125 | $ 39,528 |
Outstanding balance | $ 157,417 | $ 49,902 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses Loans and Allowance for Loan Losses - PCI Accretable Yield Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of period | $ 18,747 | $ 2,723 | $ 0 |
Additions | 19,870 | 1,459 | 3,927 |
Reclassifications from nonaccretable | 12,719 | 19,162 | 0 |
Accretion | (13,112) | (4,597) | (1,204) |
Balance at year-end | 38,224 | 18,747 | $ 2,723 |
Cash collections of certain loans acquired in transfer accounted for as debt securities | $ 440 | $ 4,113 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 205,210,000 | $ 71,159,000 | |
Summary of changes in related servicing assets | |||
Balance at beginning of year | 1,304,000 | 1,215,000 | |
Servicing asset acquired through acquisition | 2,382,000 | 0 | |
Increase from loan sales | 1,253,000 | 470,000 | |
Amortization charged to income | (1,826,000) | (381,000) | |
Balance at end of period | 3,113,000 | 1,304,000 | $ 1,215,000 |
Valuation allowance recorded | 0 | 0 | |
Proceeds from sale of loans | 34,483,000 | 36,227,000 | 53,876,000 |
Gain on sale of loans | 475,000 | 708,000 | 942,000 |
Small Business Administration Loans | |||
Summary of changes in related servicing assets | |||
Proceeds from sale of loans | 64,830,000 | 26,662,000 | 27,747,000 |
Gain on sale of loans | 4,388,000 | 2,348,000 | $ 1,940,000 |
Interest-Only-Strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | $ 0 | $ 0 |
Bank Premises and Equipment (De
Bank Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 132,437 | $ 88,399 | |
Less accumulated depreciation | 13,901 | 9,990 | |
Bank premises, furniture and equipment, net | 118,536 | 78,409 | |
Depreciation | 3,911 | 3,017 | $ 1,566 |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 60,959 | 37,526 | |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 2,633 | 672 | |
Tenant improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 744 | 744 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 5,542 | 4,456 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 45,878 | 33,393 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 16,073 | 9,426 | |
Construction in Progress | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 608 | $ 2,182 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease, right-of-use asset | $ 13,205 |
Lease liability | 14,095 |
Lease, Cost [Abstract] | |
Operating lease cost | 4,999 |
Variable lease cost | 988 |
Net lease cost | 5,987 |
Operating cash flows from operating leases | $ 4,325 |
Weighted-average remaining lease term - operating leases, in years | 4 years 4 months 24 days |
Weighted-average discount rate - operating leases | 1.59% |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 1 year |
Extension options | 5 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Remaining lease term | 8 years |
Extension options | 10 years |
Leases - Maturity (Details)
Leases - Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Within one year | $ 3,465 |
After one but within two years | 3,063 |
After two but within three years | 2,589 |
After three but within four years | 2,388 |
After four but within five years | 1,937 |
After five years | 2,146 |
Total undiscounted cash flows | 15,588 |
Less: Discount on cash flows | (1,493) |
Operating lease liability | $ 14,095 |
Intangible Assets - Finite-Live
Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Intangible Asset | $ 92,260 | $ 23,424 | |
Accumulated amortization | 19,997 | 7,528 | |
Net intangible assets | 72,263 | 15,896 | |
Amortization of intangible assets | 10,887 | 3,467 | $ 964 |
Amortization of Intangible Assets, Occupancy and Equipment, and Other Income | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 12,022 | $ 4,060 | $ 1,270 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 7 years | 7 years 8 months 12 days | |
Gross Intangible Asset | $ 81,769 | $ 16,051 | |
Accumulated amortization | 14,206 | 4,376 | |
Net intangible assets | $ 67,563 | $ 11,675 | |
Servicing asset | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 6 years 8 months 12 days | 6 years 9 months 18 days | |
Gross Intangible Asset | $ 5,726 | $ 2,091 | |
Accumulated amortization | 2,613 | 787 | |
Net intangible assets | $ 3,113 | $ 1,304 | |
Intangible lease assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 1 year 4 months 24 days | 2 years 8 months 12 days | |
Gross Intangible Asset | $ 4,765 | $ 5,282 | |
Accumulated amortization | 3,178 | 2,365 | |
Net intangible assets | $ 1,587 | $ 2,917 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated aggregate future amortization expense [Abstract] | ||
2020 | $ 11,136 | |
2021 | 10,631 | |
2022 | 10,445 | |
2023 | 10,307 | |
2024 | 10,217 | |
Thereafter | 19,527 | |
Net intangible assets | $ 72,263 | $ 15,896 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 161,447 | $ 159,452 |
Ending Balance | 370,840 | 161,447 |
Sovereign acquisition | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | 2,210 |
Liberty acquisition | ||
Goodwill [Roll Forward] | ||
Acquisitions | 0 | (215) |
Green Bancorp, Inc. | ||
Goodwill [Roll Forward] | ||
Acquisitions | $ 209,393 | $ 0 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Noninterest-bearing demand accounts | $ 1,556,500 | $ 626,283 |
Interest-bearing demand accounts | 388,877 | 146,969 |
Savings accounts | 86,079 | 33,147 |
Limited access money market accounts | 2,180,016 | 1,133,045 |
Certificates of deposit, greater than $100 | 1,234,324 | 392,935 |
Certificates of deposit, less than $100 | 448,554 | 290,049 |
Total deposits | $ 5,894,350 | $ 2,622,428 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 1,321,767 | |
2021 | 288,902 | |
2022 | 41,955 | |
2023 | 16,558 | |
2024 | 13,696 | |
Total | $ 1,682,878 | $ 682,984 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Demand deposit overdrafts reclassified as loans | $ 259 | $ 153 |
Brokered deposits | $ 312,467 | $ 234,190 |
Advances from the Federal Hom_3
Advances from the Federal Home Loan Bank ("FHLB") - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank | $ 677,870 | $ 28,019 |
Availability to borrow additional funds | $ 752,663 | |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank, weighted average rate | 1.48% |
Advances from the Federal Hom_4
Advances from the Federal Home Loan Bank ("FHLB") - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 75,000 | |
2021 | 25,000 | |
2022 | 27,870 | |
2023 | 0 | |
2024 | 200,000 | |
Thereafter | 350,000 | |
Total | $ 677,870 | $ 28,019 |
Other Credit Extensions (Detail
Other Credit Extensions (Details) | Dec. 31, 2019USD ($)credit_facility | Dec. 31, 2018USD ($)credit_facility |
Federal Funds Credit Extensions With Commercial Banks | ||
Other Credit Extensions | ||
Number of credit facilities | credit_facility | 3 | 2 |
Maximum available borrowings | $ 150,000,000 | $ 75,000,000 |
Outstanding borrowings | 0 | 0 |
Federal Reserve Bank Secured Line Of Credit | ||
Other Credit Extensions | ||
Maximum available borrowings | 1,022,401,000 | 524,016,000 |
Outstanding borrowings | 0 | 0 |
Amounts of commercial loans pledged as collateral | $ 843,861,000 | $ 404,981,000 |
Borrowed Funds - Summary (Detai
Borrowed Funds - Summary (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | $ 145,571,000 | $ 16,691,000 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 30,023,000 | 11,702,000 |
Unamortized discount (premium), net | 3,845,000 | 0 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 115,548,000 | 4,989,000 |
Unamortized discount (premium), net | (2,081,000) | $ 11,000 |
Debt issuance costs, net | $ 1,533,000 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) | Nov. 15, 2019 | Nov. 08, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2019USD ($)quarter | Dec. 31, 2013USD ($)$ / sharesshares | Dec. 31, 2018 | Aug. 01, 2017USD ($) | Dec. 31, 2012USD ($) |
Debt Instrument [Line Items] | ||||||||
Face amount of subordinated notes issued to related party | $ 5,000,000 | |||||||
Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of subordinated notes issued to related party | $ 5,000,000 | |||||||
Fixed rate (as a percent) | 6.00% | |||||||
Affiliated Entity | Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of shares that warrants issued to related party may be converted into (in shares) | shares | 25,000,000 | |||||||
Exercise price of warrants issued to related party (in dollars per share) | $ / shares | $ 11 | |||||||
Price used to calculate fair value of warrants issued to related party (in dollars per share) | $ / shares | $ 0.80 | |||||||
Parkway National Capital Trust 1 | ||||||||
Debt Instrument [Line Items] | ||||||||
Distribution effective rate (as a percent) | 3.74% | 4.64% | ||||||
Parkway National Capital Trust 1 | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable distribution rate (as a percent) | 1.85% | |||||||
Parkway Trust Securities | Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 3,093,000 | |||||||
SovDallas Trust Securities | Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 8,609,000 | |||||||
Debt instrument, effective percentage | 6.10% | 6.40% | ||||||
SovDallas Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest on securities, addition to LIBOR | 4.00% | |||||||
Patriot I Trust Securities | Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 5,155,000 | |||||||
Debt instrument, effective percentage | 3.84% | |||||||
Patriot I Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.85% | |||||||
Patriot II Trust Securities | Junior Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 17,011,000 | |||||||
Debt instrument, effective percentage | 3.69% | |||||||
Patriot II Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.80% | |||||||
The Notes | Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 35,000,000 | |||||||
Interest rate, stated percentage | 8.50% | |||||||
The Notes | Subordinated Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 6.685% | |||||||
New Notes | Subordinated Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 75,000,000 | |||||||
Basis spread on variable rate | 3.47% | |||||||
Interest rate, stated percentage | 4.75% | |||||||
Redemption price, percentage | 100.00% | |||||||
Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest distribution quarterly periods | quarter | 5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provisional income tax expense (benefit) | $ 3,051 | ||
TCJA, measurement period adjustment, income tax expense (benefit) | $ 34 | ||
Current tax receivable | 4,982 | $ 10,403 | |
Deferred tax asset | $ 4,150 | 1,433 | |
Taxes payable, current | 780 | ||
Operating loss carryforwards | $ 3,400 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax expense (benefit): | |||||||||||
Current | $ 16,068 | $ 8,189 | $ 7,886 | ||||||||
Deferred | 9,053 | 2,707 | 5,143 | ||||||||
Total income tax expense | $ 8,168 | $ 7,595 | $ 7,369 | $ 1,989 | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | $ 25,121 | $ 10,896 | $ 13,029 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal incomes tax expense rate at 21% for December 31, 2019 and 2018 and 35% for December 31, 2017 | $ 24,330 | $ 10,550 | $ 9,863 | ||||||||
Bank-owned life insurance | (422) | (124) | (206) | ||||||||
Non-deductible transaction costs | 308 | 727 | 202 | ||||||||
Tax exempt interest income | (391) | (169) | (178) | ||||||||
Impact of IRS Settlement | (1,556) | 0 | 0 | ||||||||
Deferred tax asset re-measurement due to the Tax Act | 0 | 34 | 3,051 | ||||||||
162(m) Disallowance | 1,512 | 0 | 0 | ||||||||
State Taxes | 760 | 110 | 0 | ||||||||
Other | 580 | (232) | 297 | ||||||||
Total income tax expense | $ 8,168 | $ 7,595 | $ 7,369 | $ 1,989 | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | $ 25,121 | $ 10,896 | $ 13,029 |
Effective tax rate (in percent) | 21.70% | 21.70% | 46.20% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 6,232 | $ 3,985 |
Equity compensation | 3,703 | 916 |
Purchase premium/loan discounts | 9,347 | 2,176 |
Net unrealized gain on securities available for sale | 0 | 779 |
Lease liability | 2,960 | |
Purchase securities | 2,945 | 0 |
Other | 3,930 | 1,336 |
Total deferred tax assets | 29,117 | 9,192 |
Deferred tax liabilities: | ||
Intangibles | 13,527 | 2,187 |
Bank premises and equipment | 4,811 | 1,959 |
Right of use asset | 2,773 | |
Net unrealized gain on securities available for sale | 4,669 | 0 |
Other | 1,904 | 896 |
Total deferred tax liabilities | 27,684 | 5,042 |
Net deferred tax asset | $ 1,433 | $ 4,150 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the year: | $ 0 | $ 0 | $ 0 |
Gross increases, related to tax positions recognized as part of Green acquisition | 2,155 | 0 | 0 |
Settlement with taxing authority | (2,155) | 0 | 0 |
Unrecognized tax benefits at the end of the year | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Qualified Housing (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments and Contingencies Disclosure [Abstract] | ||
Qualified affordable housing investment | $ 3,292 | $ 3,663 |
Qualified affordable housing project investments, unfunded commitment | 1,091 | $ 2,510 |
Qualified Affordable Housing Investment | ||
Other Commitments [Line Items] | ||
2020 | 823 | |
2021 | 123 | |
2022 | 17 | |
2023 | 17 | |
2024 | 29 | |
Thereafter | 82 | |
Total | $ 1,091 |
Fair Value Disclosures - Recurr
Fair Value Disclosures - Recurring Basis (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets: | ||
Equity securities | $ 11,122,000 | |
Recurring | ||
Assets: | ||
Available-for-sale Securities | 964,365,000 | $ 262,695,000 |
Equity securities | 11,122,000 | |
Loans held for sale | 10,068,000 | |
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 | ||
Assets: | ||
Available-for-sale Securities | 0 | 0 |
Equity securities | 11,122,000 | |
Loans held for sale | 0 | |
Recurring | Level 2 | ||
Assets: | ||
Available-for-sale Securities | 964,365,000 | 262,695,000 |
Equity securities | 0 | |
Loans held for sale | 10,068,000 | |
Recurring | Level 3 | ||
Assets: | ||
Available-for-sale Securities | 0 | $ 0 |
Equity securities | 0 | |
Loans held for sale | 0 | |
Interest rate swaps | Financial institution counterparty: | Recurring | ||
Assets: | ||
Derivative asset, fair value | 105,000 | |
Derivative liability, fair value | 4,736,000 | |
Interest rate swaps | Financial institution counterparty: | Recurring | Level 1 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate swaps | Financial institution counterparty: | Recurring | Level 2 | ||
Assets: | ||
Derivative asset, fair value | 105,000 | |
Derivative liability, fair value | 4,736,000 | |
Interest rate swaps | Financial institution counterparty: | Recurring | Level 3 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate swaps | Commercial customer counterparty: | Recurring | ||
Assets: | ||
Derivative asset, fair value | 4,393,000 | |
Derivative liability, fair value | 84,000 | |
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 1 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 2 | ||
Assets: | ||
Derivative asset, fair value | 4,393,000 | |
Derivative liability, fair value | 84,000 | |
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 3 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate caps and collars | Financial institution counterparty: | Recurring | ||
Assets: | ||
Derivative asset, fair value | 11,000 | |
Derivative liability, fair value | 11,000 | |
Interest rate caps and collars | Financial institution counterparty: | Recurring | Level 1 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate caps and collars | Financial institution counterparty: | Recurring | Level 2 | ||
Assets: | ||
Derivative asset, fair value | 11,000 | |
Derivative liability, fair value | 11,000 | |
Interest rate caps and collars | Financial institution counterparty: | Recurring | Level 3 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate floor | Financial institution counterparty: | Recurring | ||
Assets: | ||
Derivative asset, fair value | 3,353,000 | |
Interest rate floor | Financial institution counterparty: | Recurring | Level 1 | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Interest rate floor | Financial institution counterparty: | Recurring | Level 2 | ||
Assets: | ||
Derivative asset, fair value | 3,353,000 | |
Interest rate floor | Financial institution counterparty: | Recurring | Level 3 | ||
Assets: | ||
Derivative asset, fair value | $ 0 |
Fair Value Disclosures - Non-re
Fair Value Disclosures - Non-recurring Basis (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Impaired loans, specific allowance | $ 1,602,000 | $ 368,000 |
Non-recurring | ||
Assets: | ||
Impaired loans | 4,504,000 | 2,584,000 |
Other real estate owned | 5,995,000 | |
Impaired loans, specific allowance | 1,602,000 | 368,000 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 1 | ||
Assets: | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Non-recurring | Level 2 | ||
Assets: | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Non-recurring | Level 3 | ||
Assets: | ||
Impaired loans | 4,504,000 | $ 2,584,000 |
Other real estate owned | $ 5,995,000 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Estimated fair values and carrying values of all financial instruments | ||
Valuation allowance for servicing assets | $ 0 | $ 0 |
Maximum maturity period for Federal Home Loan Bank advances recorded at carrying value | 90 days | |
Financial assets: | ||
Held to maturity investments | $ 34,810,000 | |
Equity securities without readily determinable fair value | 3,575,000 | 2,050,000 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 68,348,000 | 15,281,000 |
Financial liabilities: | ||
Subordinated debentures and subordinated notes | 145,571,000 | 16,691,000 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 251,550,000 | 84,449,000 |
Held to maturity investments | 32,965,000 | |
Loans held for sale | 14,080,000 | 1,258,000 |
Loans held for investment | 2,555,494,000 | |
Accrued interest receivable | 19,508,000 | 8,828,000 |
Bank-owned life insurance | 80,915,000 | 22,064,000 |
Servicing asset | 3,113,000 | 834,000 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock | 68,348,000 | 15,281,000 |
Financial liabilities: | ||
Deposits | 5,894,350,000 | 2,622,428,000 |
Advances from FHLB | 677,870,000 | 28,019,000 |
Accrued interest payable | 5,893,000 | 1,135,000 |
Subordinated debentures and subordinated notes | 145,571,000 | 16,691,000 |
Securities sold under agreement to repurchase | 2,353,000 | |
Level 1 | Total 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 |
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 agreement to repurchase | 0 | |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 251,550,000 | 84,449,000 |
Held to maturity investments | 34,810,000 | |
Loans held for sale | 14,080,000 | 1,258,000 |
Loans held for investment | 0 | |
Accrued interest receivable | 19,508,000 | 8,828,000 |
Bank-owned life insurance | 80,915,000 | 22,064,000 |
Servicing asset | 3,113,000 | 834,000 |
Financial liabilities: | ||
Deposits | 5,692,217,000 | 2,506,379,000 |
Advances from FHLB | 708,692,000 | 28,063,000 |
Accrued interest payable | 5,893,000 | 1,135,000 |
Subordinated debentures and subordinated notes | 145,571,000 | 16,691,000 |
Securities sold under agreement to repurchase | 2,353,000 | |
Level 3 | Total 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 | 2,553,376,000 | |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 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 agreement to repurchase | 0 | |
Mortgage warehouse | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 183,628,000 | |
Mortgage warehouse | Level 1 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Mortgage warehouse | Level 2 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Mortgage warehouse | Level 3 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | 185,060,000 | |
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 5,737,577,000 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 1 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 2 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 3 | Total Fair Value | ||
Financial assets: | ||
Loans held for investment | $ 5,714,885,000 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 1,977,546 | $ 967,867 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 1,950,350 | 962,436 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 27,196 | $ 5,431 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) | Dec. 31, 2019 | May 31, 2019 |
Derivative [Line Items] | ||
Notional Amount | $ 899,974,000 | |
Asset Derivative | ||
Offsetting derivative assets/liabilities | (2,895,000) | |
Net derivatives in the consolidated balance sheets | 4,967,000 | |
Liability Derivative | ||
Offsetting derivative assets/liabilities | (2,895,000) | |
Net derivatives in the consolidated balance sheets | 1,936,000 | |
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 | 3,353,000 | |
Liability Derivative | ||
Gross derivatives | 0 | |
Non-hedging derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 624,974,000 | |
Asset Derivative | ||
Gross derivatives | 4,509,000 | |
Liability Derivative | ||
Gross derivatives | 4,831,000 | |
Financial institution counterparty: | Non-hedging derivatives | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 222,394,000 | |
Asset Derivative | ||
Gross derivatives | 105,000 | |
Liability Derivative | ||
Gross derivatives | 4,736,000 | |
Financial institution counterparty: | Non-hedging derivatives | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | 90,093,000 | |
Asset Derivative | ||
Gross derivatives | 11,000 | |
Liability Derivative | ||
Gross derivatives | 0 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 222,394,000 | |
Asset Derivative | ||
Gross derivatives | 4,393,000 | |
Liability Derivative | ||
Gross derivatives | 84,000 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | 90,093,000 | |
Asset Derivative | ||
Gross derivatives | 0 | |
Liability Derivative | ||
Gross derivatives | $ 11,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - AOCI Reclassification (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
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 | $ 1,497 |
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) | (808) |
Interest rate floor | Noninterest income | Designated as hedging instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gain (loss) recognized in noninterest income | 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 |
Loss recognized in interest income on cash flow derivative (amount excluded from effectiveness testing) | 0 |
Interest rate swaps | Noninterest income | Non-hedging derivatives | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Gain (loss) recognized in noninterest income | $ 550 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | |
May 31, 2019 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 899,974 | |
Interest rate floor | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 275,000 | |
Term of contract | 2 years | |
Floor interest rate | 2.43% | |
Derivative, purchase option price | $ 2,665 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Derivative [Line Items] | |
Notional Amount | $ 899,974 |
Non-hedging derivatives | |
Derivative [Line Items] | |
Notional Amount | 624,974 |
Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Notional Amount | $ 222,394 |
Maturity | 3 years 3 months 18 days |
Fair Value | $ (4,632) |
Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Notional Amount | $ 90,093 |
Maturity | 1 year 6 months |
Fair Value | $ 11 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Notional Amount | $ 222,394 |
Maturity | 3 years 3 months 18 days |
Fair Value | $ 4,309 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Notional Amount | $ 90,093 |
Maturity | 1 year 6 months |
Fair Value | $ (11) |
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 | 2.43% |
Minimum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 0.00% |
Minimum | London Interbank Offered Rate (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 | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Financial institution counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 5.00% |
Maximum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Financial institution counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 3.75% |
Maximum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | |
Derivative [Line Items] | |
Floating Rate | 5.00% |
Maximum | London Interbank Offered Rate (LIBOR) | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | |
Derivative [Line Items] | |
Floating Rate | 3.75% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | Jan. 03, 2014 | Jun. 30, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ESOP | |||||
Matching contributions to 401(k) profit sharing Plan | $ 2,896,000 | $ 0 | |||
Proceeds from payments on ESOP Loan | $ 0 | $ 109,000 | $ 109,000 | ||
Summary of ESOP shares | |||||
Allocated shares (in shares) | 63,040 | 63,040 | |||
Unearned shares (in shares) | 0 | 0 | |||
Total ESOP shares (in shares) | 63,040 | 63,040 | |||
ESOP | |||||
ESOP | |||||
Proceeds ESOP borrowed from the Company | $ 500,000 | ||||
Shares contributed to ESOP (in shares) | 46,082 | ||||
Proceeds from payments on ESOP Loan | $ 109,000 | ||||
Number of collateral shares released (in shares) | 9,771 | ||||
Issuance of stock to ESOP (in shares) | 9,147 | ||||
Compensation expense | $ 863,000 | $ 240,000 |
Stock and Incentive Plans - 201
Stock and Incentive Plans - 2010 Plan (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,000,000 | |||
Stock based compensation expense | $ 3 | $ 27 | $ 63 | |
Restricted shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 100,000 | |||
Term of continuous service for vesting awards | 4 years | |||
Stock option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 900,000 | |||
Term of continuous service for vesting awards | 5 years | |||
Contractual terms for non-controlling participants | 10 years | |||
Performance-based stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 500,000 |
Stock and Incentive Plans - 2_2
Stock and Incentive Plans - 2010 Plan - Options (Details) - Nonperformance-based stock options - 2010 Stock Option and Equity Incentive Plan - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 275,000 | 305,000 | 325,500 | |
Forfeited (in shares) | (3,000) | |||
Exercised (in shares) | (17,500) | (30,000) | (17,500) | |
Outstanding at the end of period (in shares) | 257,500 | 275,000 | 305,000 | 325,500 |
Options exercisable at end of period (in shares) | 257,500 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.12 | $ 10.16 | $ 10.15 | |
Forfeited (in dollars per share) | 10 | |||
Exercised (in dollars per share) | 10.24 | 10.61 | 10 | |
Outstanding at the end of period (in dollars per share) | 10.28 | $ 10.12 | $ 10.16 | $ 10.15 |
Options exercisable at end of period (in dollars per share) | $ 10.28 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year | 1 year 4 months 13 days | 2 years 4 months 20 days | 3 years 7 months 2 days | 4 years 6 months 21 days |
Exercisable | 1 year 4 months 13 days | |||
Aggregate Intrinsic Value | ||||
Exercised | $ 275,000 | $ 323,000 | $ 308,000 | |
Aggregate intrinsic value of outstanding stock options (in dollars) | 4,971,000 | |||
Options exercisable, intrinsic value | 4,971,000 | |||
Unrecognized compensation expense (in dollars) | $ 0 | $ 3,000 | $ 8,000 |
Stock and Incentive Plans - 2_3
Stock and Incentive Plans - 2010 Plan - Restricted Stock Units (Details) - 2010 Stock Option and Equity Incentive Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock units | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 0 | 24,250 | 27,750 |
Forfeited (in shares) | (500) | (2,500) | |
Vested into shares (in shares) | (23,750) | (1,000) | |
Nonvested at the end of the period (in shares) | 0 | 0 | 24,250 |
Weighted Average Exercise Price | |||
Nonvested at the beginning of the period (in dollars per share) | $ 0 | $ 13.19 | $ 11.92 |
Forfeited (in dollars per share) | 10.85 | 10.85 | |
Vested into shares (in dollars per share) | 12.14 | 10.85 | |
Nonvested at the end of the period (in dollars per share) | $ 0 | $ 0 | $ 13.19 |
Unrecognized compensation expense (in dollars) | $ 0 | $ 0 | $ 15,000 |
Non Performance Based Stock Options | |||
Weighted Average Exercise Price | |||
Unrecognized compensation expense (in dollars) | 0 | 3,000 | 8,000 |
Non-performance based stock options exercised | 454,000 | 803,000 | 488,000 |
Nonperformance-based restricted stock units vested | $ 0 | $ 713,000 | $ 26,000 |
Stock and Incentive Plans - Omn
Stock and Incentive Plans - Omnibus Plan (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Omnibus Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Accelerated compensation cost | $ 5,536 | ||||
Stock based compensation expense | 3,044 | $ 4,021 | $ 1,876 | ||
Nonperformance-based stock options | 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 | 1,418 | $ 5,533 | |||
Performance Based 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 and Incentive Plans - Ves
Stock and Incentive Plans - Vesting (Details) | 12 Months Ended |
Dec. 31, 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 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 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 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 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 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 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 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 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] | |
Number of shares authorized (in shares) | 1,500,000 |
Vesting period | 5 years |
Omnibus Plan | Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in 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) | 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) | 15,000 |
Stock and Incentive Plans - O_2
Stock and Incentive Plans - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan and Veritex Green Plan | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Dividend yield | 0.00% | 0.00% | |
Expected volatility, minimum (as a percent) | 28.85% | 27.87% | 30.56% |
Expected volatility, maximum (as a percent) | 29.65% | 37.55% | 33.19% |
Risk-free interest rate, minimum (as a percent) | 1.53% | 1.06% | 1.96% |
Risk-free interest rate, maximum (as a percent) | 2.51% | 2.94% | 2.32% |
Minimum | |||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Dividend yield | 1.73% | ||
Expected life | 4 years 6 months 7 days | 5 years | 6 years 1 month 17 days |
Maximum | |||
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |||
Dividend yield | 2.01% | ||
Expected life | 7 years 6 months 3 days | 7 years 6 months | 7 years 6 months |
Stock and Incentive Plans - Sto
Stock and Incentive Plans - Stock Compensation Expense and Liability Award Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 3,044 | $ 4,021 | $ 1,876 |
Accelerated compensation cost | $ 5,536 | ||
Number of shares authorized (in shares) | 1,500,000 | ||
Veritex Green Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 1,525 | ||
Nonperformance-based stock options | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Accelerated compensation cost | 1,418 | $ 5,533 | |
Liability Awards | Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expensed and capitalized amount | 1,403 | ||
Merger and Acquisition Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation expense | $ 10,129 |
Stock and Incentive Plans - O_3
Stock and Incentive Plans - Omnibus Plan - Options (Details) - Omnibus Plan - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonperformance-based stock options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 449,520 | 330,723 | 128,366 | |
Granted during the period (in shares) | 200,561 | 137,576 | 212,983 | |
Conversion to equity awards (in shares) | 253,633 | |||
Forfeited (in shares) | (41,336) | (4,083) | (9,082) | |
Exercised (in shares) | (12,610) | (14,696) | (1,544) | |
Outstanding at the end of period (in shares) | 849,768 | 449,520 | 330,723 | 128,366 |
Options exercisable at end of period (in shares) | 414,338 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 24.47 | $ 22.71 | $ 15.32 | |
Granted during the period (in dollars per share) | 22.72 | 28.04 | 26.97 | |
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 25.51 | 27.59 | 19.45 | |
Exercised (in dollars per share) | 15.42 | 15.29 | 15 | |
Outstanding at the end of period (in dollars per share) | 23.61 | $ 24.47 | $ 22.71 | $ 15.32 |
Options exercisable at end of period (in dollars per share) | 24.60 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 22.72 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year | 8 years 2 months 26 days | 8 years 2 months 26 days | 8 years 10 months 9 days | 8 years 8 months 8 days |
Exercisable | 7 years 3 months 21 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 4,687,000 | |||
Options exercisable, intrinsic value | $ 1,877,000 | |||
Liability Non Performance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 | |
Granted during the period (in shares) | 253,633 | 0 | 0 | |
Conversion to equity awards (in shares) | (253,633) | |||
Forfeited (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Outstanding at the end of period (in shares) | 0 | 0 | 0 | 0 |
Options exercisable at end of period (in shares) | 0 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Granted during the period (in dollars per share) | 21.38 | 0 | 0 | |
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 0 | 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 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 21.38 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year | 0 years | |||
Exercisable | 0 years | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 0 | |||
Options exercisable, intrinsic value | 0 | |||
Unrecognized compensation expense (in dollars) | 0 | |||
Stock option | ||||
Aggregate Intrinsic Value | ||||
Unrecognized compensation expense (in dollars) | $ 2,948,000 | $ 2,103,000 | $ 1,958,000 | |
Requisite service period to recognize compensation cost | 2 years 1 month 20 days |
Stock and Incentive Plans - O_4
Stock and Incentive Plans - Omnibus Plan - Restricted Stock Units (Details) - Omnibus Plan - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nonperformance-based stock options | |||
Shares Underlying Options | |||
Nonvested at the beginning of the period (in shares) | 133,455 | 150,722 | 67,956 |
Granted (in shares) | 127,459 | 60,650 | 121,125 |
Conversion to equity awards (in shares) | 165,739 | ||
Vested into shares (in shares) | (250,965) | (73,988) | (34,342) |
Forfeited (in shares) | (3,929) | (4,017) | |
Nonvested at the end of the period (in shares) | 175,688 | 133,455 | 150,722 |
Weighted Average Exercise Price | |||
Nonvested at the beginning of the period (in dollars per share) | $ 19.67 | $ 13.29 | $ 13.79 |
Granted (in dollars per share) | 22.44 | 29.27 | 27.19 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 22.29 | 24.44 | 19.74 |
Forfeited (in dollars per share) | 26.29 | 21.36 | |
Nonvested at the end of the period (in dollars per share) | $ 21.65 | $ 19.67 | $ 13.29 |
Non-performance based liability restricted stock units | |||
Shares Underlying Options | |||
Nonvested at the beginning of the period (in shares) | 0 | 0 | 0 |
Granted (in shares) | 165,739 | 0 | 0 |
Conversion to equity awards (in shares) | (165,739) | ||
Vested into shares (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | |
Nonvested at the end of the period (in shares) | 0 | 0 | 0 |
Weighted Average Exercise Price | |||
Nonvested at the beginning of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
Granted (in dollars per share) | 21.38 | 0 | 0 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
Performance Based Restricted Stock Units | |||
Shares Underlying Options | |||
Nonvested at the beginning of the period (in shares) | 63,988 | 53,594 | 51,197 |
Granted (in shares) | 38,746 | 40,269 | 26,398 |
Conversion to equity awards (in shares) | 32,249 | ||
Vested into shares (in shares) | (51,284) | (28,109) | (19,861) |
Forfeited (in shares) | (19,972) | (1,766) | (4,140) |
Nonvested at the end of the period (in shares) | 63,727 | 63,988 | 53,594 |
Weighted Average Exercise Price | |||
Nonvested at the beginning of the period (in dollars per share) | $ 21.28 | $ 17.68 | $ 13.30 |
Granted (in dollars per share) | 22.53 | 27.59 | 24.43 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 25.31 | 18.69 | 15.34 |
Forfeited (in dollars per share) | 21.38 | 27.59 | 17.91 |
Nonvested at the end of the period (in dollars per share) | $ 22.76 | $ 21.28 | $ 17.68 |
Performance based restricted stock units | |||
Shares Underlying Options | |||
Nonvested at the beginning of the period (in shares) | 0 | ||
Granted (in shares) | 32,249 | ||
Conversion to equity awards (in shares) | (32,249) | ||
Vested into shares (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Nonvested at the end of the period (in shares) | 0 | 0 | |
Weighted Average Exercise Price | |||
Nonvested at the beginning of the period (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 21.38 | ||
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Nonvested at the end of the period (in dollars per share) | $ 0 | $ 0 | |
Restricted stock units | |||
Additional disclosures | |||
Unrecognized compensation expense (in dollars) | $ 4,329,000 | $ 3,430,000 | $ 3,592,000 |
Requisite service period to recognize compensation cost | 2 years 1 month 20 days | ||
Liability Restricted Stock Units | |||
Additional disclosures | |||
Unrecognized compensation expense (in dollars) | $ 0 |
Stock and Incentive Plans - Fai
Stock and Incentive Plans - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - Omnibus Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Nonperformance-based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | $ 334 | $ 383 | $ 41 |
Non-performance based restricted stock units vested | 6,113 | 2,128 | 568 |
Performance Based Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | $ 1,089 | $ 745 | $ 530 |
Stock and Incentive Plans - Ver
Stock and Incentive Plans - Veritex Green Omnibus Plan Options (Details) - Veritex Green Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Nonperformance-based stock options | ||
Shares Underlying Options | ||
Outstanding at beginning of period (in shares) | 0 | |
Converted in acquisition of Green (in shares) | 304,778 | |
Granted during the period (in shares) | 211,793 | |
Forfeited (in shares) | (12,673) | |
Exercised (in shares) | (116,929) | |
Outstanding at the end of period (in shares) | 386,969 | 0 |
Options exercisable at end of period (in shares) | 176,999 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 0 | |
Converted in acquisition of Green (in dollars per share) | $ 15.41 | |
Granted during the period (in dollars per share) | 21.38 | |
Forfeited (in dollars per share) | 13.17 | |
Exercised (in dollars per share) | 13.60 | |
Outstanding at the end of period (in dollars per share) | 19.30 | $ 0 |
Options exercisable at end of period (in dollars per share) | 16.84 | |
Weighted average fair value of options granted during the period (in dollars per share) | $ 18.56 | |
Weighted Average Contractual Term | ||
Outstanding at beginning of year | 7 years 10 months 9 days | |
Exercisable | 6 years 8 months 15 days | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 3,800 | |
Options exercisable, intrinsic value | 2,175 | |
Stock option | ||
Aggregate Intrinsic Value | ||
Unrecognized compensation expense (in dollars) | $ 1,062 | |
Requisite service period to recognize compensation cost | 1 year 11 months 26 days |
Stock and Incentive Plans - V_2
Stock and Incentive Plans - Veritex Green Omnibus Plan Restricted Stock Units (Details) - Veritex Green Omnibus Plan $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Nonperformance-based stock options | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Nonvested at the beginning of the period (in shares) | shares | 0 |
Number of shares awarded (in shares) | shares | 116,250 |
Nonvested at the end of the period (in shares) | shares | 116,250 |
Weighted Average Exercise Price | |
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 21.38 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 21.38 |
Performance Based Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Nonvested at the beginning of the period (in shares) | shares | 0 |
Number of shares awarded (in shares) | shares | 26,145 |
Forfeited (in shares) | shares | (825) |
Nonvested at the end of the period (in shares) | shares | 25,320 |
Weighted Average Exercise Price | |
Nonvested 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 |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 21.38 |
Restricted stock units | |
Weighted Average Exercise Price | |
Unrecognized compensation expense (in dollars) | $ | $ 1,991 |
Requisite service period to recognize compensation cost | 1 year 11 months 26 days |
Nonperformance-based stock options | |
Weighted Average Exercise Price | |
Nonperformance-based stock options exercised | $ | $ 3,054 |
Stock and Incentive Plans - Gre
Stock and Incentive Plans - Green Bancorp Inc. 2010 Option Plan (Details) | 12 Months Ended |
Dec. 31, 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) | 190,652 |
Options, outstanding, number (in shares) | 566,936 |
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) | 0 |
Exercise of employee stock options (in shares) | 11,850 |
Options, outstanding, number (in shares) | 0 |
Restricted stock units | Green Bancorp Inc. 2010 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares awarded under stock options (in shares) | 0 |
Restricted stock units | Green Bancorp Inc. 2006 Stock Option Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares awarded under stock options (in shares) | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Aggregate amounts of loans to the Company's employees, officers, directors and their affiliates | $ 70,113,000 | $ 70,220,000 |
New advances to the Company's employees, officers, directors and their affiliates | 42,163,000 | 45,801,000 |
Principal payments received from the loans to employees, officers, directors, and their affiliates | 42,398,000 | 19,715,000 |
Unfunded commitments to related parties | 17,180,000 | 15,730,000 |
Deposits received from related parties | 70,986,000 | $ 30,977,000 |
Face amount of subordinated notes issued to related party | $ 5,000,000 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 917,939,000 | $ 394,419,000 |
Actual Ratio (as a percent) | 13.10% | 12.98% |
For Capital Adequacy Purposes Amount | $ 560,573,000 | $ 243,093,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 771,679,000 | $ 370,175,000 |
Actual Ratio (as a percent) | 11.02% | 12.18% |
For Capital Adequacy Purposes Amount | $ 420,152,000 | $ 182,352,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
Common equity tier 1 (to risk-weighted assets) | ||
Common Equity Tier One Capital | $ 742,675,000 | $ 358,473,000 |
Common Equity Tier One Capital Ratio (as a percent) | 10.60% | 11.80% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 315,287,000 | $ 136,706,000 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 771,679,000 | $ 370,175,000 |
Actual Ratio (as a percent) | 10.17% | 12.04% |
For Capital Adequacy Purposes Amount | $ 303,512,000 | $ 122,982,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
Bank | ||
Total capital (to risk-weighted assets) | ||
Actual Amount | $ 870,838,000 | $ 353,640,000 |
Actual Ratio (as a percent) | 12.44% | 11.64% |
For Capital Adequacy Purposes Amount | $ 560,024,000 | $ 243,052,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 700,031,000 | $ 303,814,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) | ||
Actual Amount | $ 840,126,000 | $ 334,385,000 |
Actual Ratio (as a percent) | 12.00% | 11.01% |
For Capital Adequacy Purposes Amount | $ 420,063,000 | $ 182,226,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 560,084,000 | $ 242,968,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 8.00% | 8.00% |
Common equity tier 1 (to risk-weighted assets) | ||
Common Equity Tier One Capital | $ 840,126,000 | $ 334,385,000 |
Common Equity Tier One Capital Ratio (as a percent) | 12.00% | 11.01% |
Common Equity Tier One Capital Required for Capital Adequacy | $ 315,047,000 | $ 136,670,000 |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 455,068,000 | $ 197,412,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 6.50% | 6.50% |
Tier 1 capital (to average assets) | ||
Actual Amount | $ 840,126,000 | $ 334,385,000 |
Actual Ratio (as a percent) | 11.07% | 10.87% |
For Capital Adequacy Purposes Amount | $ 303,569,000 | $ 123,049,000 |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 379,461,000 | $ 153,811,000 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% |
Payments of dividends | $ 26,796,000 | $ 0 |
Dividends paid (in dollars per share) | $ 0.125 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 370,840 | $ 161,447 | $ 159,452 | |
Merger and acquisition expense | 38,960 | 5,220 | $ 2,691 | |
Total investment securities available for sale, fair value | 964,365 | 262,695 | ||
Debt securities, held to maturity | $ 32,965 | $ 0 | ||
Core deposit intangibles | ||||
Business Acquisition [Line Items] | ||||
Weighted amortization period | 7 years | 7 years 8 months 12 days | ||
Common Stock | ||||
Business Acquisition [Line Items] | ||||
Restricted stock units vested, net (in shares) | 246,303 | 105,765 | 43,602 | |
Exercise of employee stock options (in shares) | 335,832 | 38,614 | 17,949 | |
Green Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 209,393 | |||
Share conversion rate (in shares) | 0.79 | |||
Exercise of employee stock options (in shares) | 1,085,256 | |||
Merger and acquisition expense | $ 38,960 | $ 4,865 | ||
Premium on time deposits | $ 7,318 | |||
Amortization period | 1 year 8 months 12 days | |||
Total investment securities available for sale, fair value | 634,449 | |||
Debt securities, held to maturity | $ 26,343 | |||
Green Bancorp, Inc. | Subordinated Debt | ||||
Business Acquisition [Line Items] | ||||
Purchase premium | $ 3,134 | |||
Purchase discount | $ 4,066 | |||
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 | $ 65,718 | |||
Weighted amortization period | 8 years | |||
Green Bancorp, Inc. | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Restricted stock units vested, net (in shares) | 497,594 | |||
Green Bancorp, Inc. | Stock-Based Compensation | ||||
Business Acquisition [Line Items] | ||||
Merger and acquisition expense | $ 17,082 | |||
Green Bancorp, Inc. | Severance Payments | ||||
Business Acquisition [Line Items] | ||||
Merger and acquisition expense | 9,491 | |||
Green Bancorp, Inc. | Legal And Professional Fees | ||||
Business Acquisition [Line Items] | ||||
Merger and acquisition expense | 5,297 | |||
Green Bancorp, Inc. | Data Processing | ||||
Business Acquisition [Line Items] | ||||
Merger and acquisition expense | $ 1,824 |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - Green Bancorp, Inc. - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Stock issued for acquisition of bank, net of offering cost (in shares) | 29,532,957 | |||
Veritex common stock price per share as of close date (in dollars per share) | $ 21.38 | |||
Market value of common stock issued | $ 631,415 | $ 631,415 | $ 0 | $ 0 |
Fair value of Green equity-based awards attributed to pre-combination service | 12,484 | |||
Cash paid | 10 | |||
Total fair value of consideration | $ 643,909 |
Business Combinations - Acquire
Business Combinations - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||||
Goodwill | $ 370,840 | $ 161,447 | $ 159,452 | |
Green Bancorp, Inc. | ||||
Assets | ||||
Cash and cash equivalents | $ 112,720 | |||
Investment securities | 660,792 | |||
Equity securities | 12,322 | |||
Other Investments | 29,490 | |||
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 | 209,393 | |||
Other assets | 11,124 | |||
Right of use asset | 9,373 | |||
Deferred Taxes | 11,783 | |||
Current taxes | 1,812 | |||
Branch assets held for sale | 85,307 | |||
Total assets | 4,570,199 | |||
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 | 26,491 | |||
Lease liability | 9,373 | |||
Accrued interest payable | 5,181 | |||
Securities sold under agreements to repurchase | 3,226 | |||
Accounts payable and accrued expenses | 300,000 | |||
Subordinated debentures and subordinated notes | 56,233 | |||
Branch liabilities held for sale | 52,682 | |||
Total liabilities | 3,926,290 | |||
Measurement Period Adjustments | ||||
Investment securities | (240) | |||
Loans held for investment | (244) | |||
Accrued interest receivable | (278) | |||
Bank premises, furniture and equipment | (2,571) | |||
Goodwill | 2,572 | |||
Other assets | 404 | |||
Deferred taxes | 248 | |||
Current taxes | 13 | |||
Total assets | (96) | |||
Accounts payable and other accrued expenses | (96) | |||
Total liabilities | $ (96) | |||
Scenario, Previously Reported | Green Bancorp, Inc. | ||||
Assets | ||||
Cash and cash equivalents | 112,720 | |||
Investment securities | 661,032 | |||
Equity securities | 12,322 | |||
Other Investments | 29,490 | |||
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 | 10,720 | |||
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 | |||
Accounts payable and accrued expenses | 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 | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Contractual principal balance | $ 57,811 | $ 22,309 | |
Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Total fair value | $ 3,245,248 | ||
Contractual principal balance | 3,335,060 | ||
Financial Asset Acquired with Credit Deterioration | 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 | Financial Asset Acquired with Credit Deterioration | 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 | Financial Asset Acquired with Credit Deterioration | 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 | Financial Asset Acquired with Credit Deterioration | 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 | Financial Asset Acquired with Credit Deterioration | 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 ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Disposal Group, Held-for-sale, Not Discontinued Operations | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | $ 392 | ||
Loans | 78,366 | ||
Bank premises, furniture and equipment | 19 | ||
Intangible assets | 6,013 | ||
Other assets | 517 | ||
Total assets | $ 0 | 85,307 | $ 0 |
Noninterest-bearing deposits | 52,319 | ||
Accounts payable and accrued expenses | 40 | ||
Accrued interest payable and other liabilities | 323 | ||
Total liabilities | $ 0 | 52,682 | $ 0 |
Green Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Expected selling costs | $ 90 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Net interest income | $ 274,031 | $ 254,350 |
Net income | $ 108,490 | $ 38,352 |
Basic earnings per share (in USD per share) | $ 2 | $ 0.71 |
Diluted earnings per share (in USD per share) | $ 1.97 | $ 0.70 |
Branch Assets and Liabilities_2
Branch Assets and Liabilities Held For Sale (Details) - USD ($) $ in Thousands | May 10, 2019 | Dec. 31, 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 businesses | $ 7,153 | |||
Disposal group, not discontinued operation, gain (loss) on disposal | $ (474) | |||
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 | $ 0 | |
Branch liabilities held for sale | $ 0 | $ 52,682 | $ 0 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 251,550 | $ 84,449 | ||
Other assets | 67,994 | 28,410 | ||
Total assets | 7,954,937 | 3,208,550 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Securities sold under agreements to repurchase | 2,353 | 0 | ||
Total liabilities | 6,764,140 | 2,677,912 | ||
Stockholders’ equity: | ||||
Common stock | 549 | 243 | ||
Additional paid-in capital | 1,117,879 | 449,427 | ||
Retained earnings | 147,911 | 83,968 | ||
Accumulated other comprehensive income | 19,061 | (2,930) | ||
Treasury stock | (94,603) | (70) | ||
Total stockholders’ equity | 1,190,797 | 530,638 | $ 488,929 | $ 239,088 |
Total liabilities and stockholders’ equity | 7,954,937 | 3,208,550 | ||
Veritex Holdings, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 45,563 | 40,474 | ||
Investment in subsidiaries | 1,289,273 | 506,902 | ||
Other assets | 2,780 | 940 | ||
Total assets | 1,337,616 | 548,316 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 1,248 | 987 | ||
Securities sold under agreements to repurchase | 145,571 | 16,691 | ||
Total liabilities | 146,819 | 17,678 | ||
Stockholders’ equity: | ||||
Common stock | 511 | 243 | ||
Additional paid-in capital | 1,117,879 | 449,427 | ||
Retained earnings | 147,911 | 83,968 | ||
Accumulated other comprehensive income | 19,061 | (2,930) | ||
Treasury stock | (94,565) | (70) | ||
Total stockholders’ equity | 1,190,797 | 530,638 | ||
Total liabilities and stockholders’ equity | $ 1,337,616 | $ 548,316 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Other | $ 2,949 | $ 855 | $ 8 | ||||||||
Total interest and dividend income | $ 91,742 | $ 95,643 | $ 96,177 | $ 95,224 | $ 38,182 | $ 37,920 | $ 34,857 | $ 34,110 | 378,786 | 145,069 | 79,552 |
Salaries and employee benefits | 72,791 | 31,138 | 20,828 | ||||||||
Merger and acquisition expense | 38,960 | 5,220 | 2,691 | ||||||||
Total noninterest expense | 36,284 | 34,630 | 39,896 | 66,993 | 17,538 | 18,246 | 16,169 | 17,306 | 177,803 | 69,259 | 42,789 |
Income before income tax expense | 115,860 | 50,237 | 28,181 | ||||||||
Income tax expense | $ 8,168 | $ 7,595 | $ 7,369 | $ 1,989 | $ 3,587 | $ 1,448 | $ 2,350 | $ 3,511 | 25,121 | 10,896 | 13,029 |
Net income | 90,739 | 39,341 | 15,152 | ||||||||
Veritex Holdings, Inc. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Cash dividends from subsidiary | 56,750 | 0 | 0 | ||||||||
Excess of earnings over dividend from subsidiary | 43,199 | 44,850 | 17,980 | ||||||||
Other | 50 | 20 | 8 | ||||||||
Total interest and dividend income | 99,999 | 44,870 | 17,988 | ||||||||
Interest on borrowings | 4,672 | 974 | 598 | ||||||||
Salaries and employee benefits | 790 | 853 | 712 | ||||||||
Merger and acquisition expense | 5,739 | 4,415 | 2,256 | ||||||||
Total noninterest expense | 11,201 | 6,242 | 3,566 | ||||||||
Income before income tax expense | 88,798 | 38,628 | 14,422 | ||||||||
Income tax expense | (1,941) | (713) | (730) | ||||||||
Net income | $ 90,739 | $ 39,341 | $ 15,152 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 90,739 | $ 39,341 | $ 15,152 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Net cash provided by operating activities | 103,960 | 50,388 | 26,662 |
Cash flows from investing activities: | |||
Net cash used in investing activities | (46,339) | (400,010) | (124,855) |
Cash flows from financing activities: | |||
Issuance of subordinated note | 75,000 | 0 | 0 |
Proceeds from exercise of employee stock options | 3,938 | 454 | 175 |
Proceeds from payments on ESOP Loan | 0 | 109 | 109 |
Offering costs paid in connection with acquisitions | 0 | (899) | (772) |
Purchase of treasury stock | (94,533) | 0 | 0 |
Dividends paid | (26,796) | 0 | 0 |
Dividends paid on preferred stock | 0 | 0 | (227) |
Net cash provided by financing activities | 109,480 | 285,027 | 12,446 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 167,101 | (64,595) | (85,747) |
Cash and cash equivalents at beginning of year | 84,449 | 149,044 | 234,791 |
Cash and cash equivalents at end of year | 251,550 | 84,449 | 149,044 |
Veritex Holdings, Inc. | |||
Cash flows from operating activities: | |||
Net income | 90,739 | 39,341 | 15,152 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of debt discount, net and debt issuance costs | 2,353 | 2 | 45 |
Equity in undistributed net income of Bank | (43,199) | (44,850) | (17,980) |
Decrease (increase) in other assets | (1,861) | 2,226 | 3,523 |
(Decrease) increase in other liabilities | (6,370) | (2,635) | 1,353 |
Net cash provided by operating activities | 41,662 | (5,916) | 2,093 |
Cash flows from investing activities: | |||
Net cash used in investing activities | 5,818 | 0 | (80,761) |
Cash flows from financing activities: | |||
Issuance of subordinated note | 75,000 | 0 | 0 |
Net proceeds from sale of common stock in public offering | 0 | 2 | 56,681 |
Redemption of preferred stock | 0 | 0 | (24,500) |
Net change in other borrowings | 0 | 0 | (4,625) |
Proceeds from exercise of employee stock options | 3,938 | 454 | 175 |
Proceeds from payments on ESOP Loan | 0 | 109 | 109 |
Offering costs paid in connection with acquisitions | 0 | (899) | (772) |
Purchase of treasury stock | (94,533) | 0 | 0 |
Dividends paid | (26,796) | 0 | 0 |
Dividends paid on preferred stock | 0 | 0 | (42) |
Net cash provided by financing activities | (42,391) | (334) | 27,026 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 5,089 | (6,250) | (51,642) |
Cash and cash equivalents at beginning of year | 40,474 | 46,724 | 98,366 |
Cash and cash equivalents at end of year | 45,563 | 40,474 | 46,724 |
Sovereign acquisition | Veritex Holdings, Inc. | |||
Cash flows from investing activities: | |||
Net cash paid in Sovereign acquisition | 0 | 0 | (55,949) |
Liberty acquisition | Veritex Holdings, Inc. | |||
Cash flows from investing activities: | |||
Net cash paid in Sovereign acquisition | 0 | 0 | (24,812) |
Green Bancorp, Inc. | |||
Cash flows from investing activities: | |||
Net cash paid in Sovereign acquisition | 112,710 | 0 | 0 |
Green Bancorp, Inc. | Veritex Holdings, Inc. | |||
Cash flows from investing activities: | |||
Net cash paid in Sovereign acquisition | $ 5,818 | $ 0 | $ 0 |
Summary of Quarterly Financia_3
Summary of Quarterly Financial Statements (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 91,742 | $ 95,643 | $ 96,177 | $ 95,224 | $ 38,182 | $ 37,920 | $ 34,857 | $ 34,110 | $ 378,786 | $ 145,069 | $ 79,552 |
Interest Expense | 21,878 | 24,769 | 24,735 | 22,307 | 9,487 | 8,642 | 6,931 | 4,985 | 93,689 | 30,045 | 11,044 |
Net interest income | 69,864 | 70,874 | 71,442 | 72,917 | 28,695 | 29,278 | 27,926 | 29,125 | 285,097 | 115,024 | 68,508 |
Provision for loan losses | 3,493 | 9,674 | 3,335 | 5,012 | 1,364 | 3,057 | 1,504 | 678 | 21,514 | 6,603 | 5,114 |
Noninterest income | 7,132 | 8,430 | 6,034 | 8,484 | 3,619 | 2,408 | 2,290 | 2,758 | 30,080 | 11,075 | 7,576 |
Noninterest expense | 36,284 | 34,630 | 39,896 | 66,993 | 17,538 | 18,246 | 16,169 | 17,306 | 177,803 | 69,259 | 42,789 |
Income tax expense | 8,168 | 7,595 | 7,369 | 1,989 | 3,587 | 1,448 | 2,350 | 3,511 | 25,121 | 10,896 | 13,029 |
Net income allocated to common stockholders | $ 29,051 | $ 27,405 | $ 26,876 | $ 7,407 | $ 9,825 | $ 8,935 | $ 10,193 | $ 10,388 | $ 90,739 | $ 39,341 | $ 15,110 |
Basic (in USD per share) | $ 0.56 | $ 0.52 | $ 0.50 | $ 0.14 | $ 0.41 | $ 0.37 | $ 0.42 | $ 0.43 | $ 1.71 | $ 1.63 | $ 0.82 |
Diluted (in USD per share) | $ 0.56 | $ 0.51 | $ 0.49 | $ 0.13 | $ 0.40 | $ 0.36 | $ 0.42 | $ 0.42 | $ 1.68 | $ 1.60 | $ 0.80 |