Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 06, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36682 | |
Entity Registrant Name | VERITEX HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 27-0973566 | |
Entity Address, Address Line One | 8214 Westchester Drive, Suite 800 | |
Entity Address, City or Town | Dallas, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75225 | |
City Area Code | (972) | |
Local Phone Number | 349-6200 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | VBTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 50,378,796 | |
Entity Central Index Key | 0001501570 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 70,007 | $ 65,151 |
Interest bearing deposits in other banks | 360,835 | 186,399 |
Total cash and cash equivalents | 430,842 | 251,550 |
Debt securities available-for-sale, at fair value | 1,084,962 | 964,365 |
Debt securities held-to-maturity (fair value of $35,513 and $34,810, at March 31, 2020 and December 31, 2019, respectively) | 32,842 | 32,965 |
Equity securities | 18,948 | 14,697 |
Federal Home Loan Bank of Dallas Stock and Federal Reserve Bank Stock | 92,809 | 68,348 |
Investment in trusts | 1,018 | 1,018 |
Total investments | 1,230,579 | 1,081,393 |
Loans held for sale | 15,048 | 14,080 |
Loans held for investment, mortgage warehouse | 371,161 | 183,628 |
Loans held for investment | 5,853,735 | 5,737,577 |
Less: Allowance for credit losses | (100,983) | (29,834) |
Total loans held for investment | 6,123,913 | 5,891,371 |
Bank-owned life insurance | 81,395 | 80,915 |
Bank premises, furniture and equipment, net | 116,056 | 118,536 |
Other real estate owned | 7,720 | 5,995 |
Intangible assets, net of accumulated amortization of $22,946 and $19,997, at March 31, 2020 and December 31, 2019, respectively) | 69,444 | 72,263 |
Goodwill | 370,840 | 370,840 |
Other assets | 85,787 | 67,994 |
Total assets | 8,531,624 | 7,954,937 |
Deposits: | ||
Noninterest-bearing deposits | 1,549,260 | 1,556,500 |
Interest-bearing transaction and savings deposits | 2,536,865 | 2,654,972 |
Certificates and other time deposits | 1,713,820 | 1,682,878 |
Total deposits | 5,799,945 | 5,894,350 |
Accounts payable and other liabilities | 56,339 | 37,427 |
Accrued interest payable | 5,407 | 6,569 |
Advances from Federal Home Loan Bank | 1,377,832 | 677,870 |
Subordinated debentures and subordinated notes | 140,406 | 145,571 |
Securities sold under agreements to repurchase | 2,426 | 2,353 |
Total liabilities | 7,382,355 | 6,764,140 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 75,000,000 shares authorized; 55,372,286 and 54,876,580 shares issued at March 31, 2020 and December 31, 2019, respectively; 49,557,364 and 51,063,869 shares outstanding at March 31, 2020 and December 31, 2019, respectively | 554 | 549 |
Additional paid-in capital | 1,119,757 | 1,117,879 |
Retained earnings | 127,812 | 147,911 |
Accumulated other comprehensive income | 45,306 | 19,061 |
Treasury stock, 5,814,922 and 3,812,711 shares at cost at March 31, 2020 and December 31, 2019, respectively | (144,160) | (94,603) |
Total stockholders’ equity | 1,149,269 | 1,190,797 |
Total liabilities and stockholders’ equity | 8,531,624 | 7,954,937 |
Investments | $ 1,230,579 | $ 1,081,393 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Held to maturity investments | $ 35,513 | $ 34,810 |
Intangible assets, accumulated amortization | $ 22,946 | $ 19,997 |
Stockholders’ equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 55,372,286 | 54,876,580 |
Common stock, shares outstanding (in shares) | 49,557,364 | 51,063,869 |
Treasury stock, shares (in shares) | 5,814,922 | 3,812,711 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income: | ||
Loans, including fees | $ 77,861 | $ 85,747 |
Investment securities | 7,397 | 7,232 |
Deposits in financial institutions and Fed Funds sold | 871 | 1,554 |
Other investments | 850 | 691 |
Total interest and dividend income | 86,979 | 95,224 |
Interest expense: | ||
Transaction and savings deposits | 6,552 | 10,366 |
Certificates and other time deposits | 8,240 | 8,792 |
Advances from FHLB | 2,879 | 2,055 |
Subordinated debentures and subordinated notes | 1,903 | 1,094 |
Total interest expense | 19,574 | 22,307 |
Net interest income | 67,405 | 72,917 |
Provision for credit losses | 31,776 | 5,012 |
Provision for unfunded commitments | 3,881 | 0 |
Net interest income after provision for credit losses | 31,748 | 67,905 |
Noninterest income: | ||
Service charges and fees on deposit accounts | 3,642 | 3,517 |
Loan fees | 845 | 1,677 |
Loss on sales of investment securities | 0 | (772) |
Net gain on sales of loans and other assets owned | 746 | 2,370 |
Rental income | 551 | 368 |
Other | 1,463 | 1,324 |
Total noninterest income | 7,247 | 8,484 |
Noninterest expense: | ||
Salaries and employee benefits | 18,870 | 18,885 |
Occupancy and equipment | 4,273 | 4,129 |
Professional and regulatory fees | 2,196 | 3,418 |
Data processing and software expense | 2,089 | 1,924 |
Marketing | 1,083 | 619 |
Amortization of intangibles | 2,696 | 2,760 |
Telephone and communications | 319 | 395 |
Merger and acquisition expense | 0 | 31,217 |
Other | 4,019 | 3,646 |
Total noninterest expense | 35,545 | 66,993 |
Income before income tax (benefit) expense | 3,450 | 9,396 |
Income tax (benefit) expense | (684) | 1,989 |
Net income | $ 4,134 | $ 7,407 |
Basic earnings per share (in dollars per share) | $ 0.08 | $ 0.14 |
Diluted earnings per share (in dollars per share) | $ 0.08 | $ 0.13 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 4,134 | $ 7,407 |
Net unrealized gains on securities available-for-sale: | ||
Change in net unrealized gains on securities available-for-sale during the period | 28,487 | 11,797 |
Reclassification adjustment for net gains included in net income | 0 | (772) |
Net unrealized gains on securities available-for-sale | 28,487 | 12,569 |
Net unrealized gains on derivative instruments designated as cash flow hedges | 3,732 | 0 |
Other comprehensive income, before tax | 32,219 | 12,569 |
Income tax expense | 5,974 | 2,623 |
Other comprehensive income, net of tax | 26,245 | 9,946 |
Comprehensive income | $ 30,379 | $ 17,353 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income | Green Bancorp, Inc. | Green Bancorp, Inc.Common Stock | Green Bancorp, Inc.Additional Paid-In Capital |
Beginning balance (in shares) at Dec. 31, 2018 | 24,253,894 | 10,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 530,638 | $ 243 | $ (70) | $ 449,427 | $ 83,968 | $ (2,930) | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Issuance of common shares in connection with the acquisition of Green Bancorp, Inc. (Green), net of offering costs of $788 (in shares) | 29,532,957 | ||||||||
Issuance of common shares in connection with the acquisition of Green Bancorp, Inc. ("Green"), net of offering costs of $788 | $ 630,627 | $ 295 | $ 630,332 | ||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 194,735 | 497,594 | |||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (1,279) | $ 2 | (1,281) | $ 12,484 | $ 5 | $ 12,479 | |||
Exercise of employee stock options (in shares) | 73,468 | ||||||||
Exercise of employee stock options | 873 | $ 1 | 872 | ||||||
Stock buyback (in shares) | (316,600) | (316,600) | |||||||
Stock buyback | (7,732) | $ (3) | $ (7,729) | ||||||
Stock based compensation | 17,557 | 17,557 | |||||||
Net income | 7,407 | 7,407 | |||||||
Dividends paid | (6,816) | (6,816) | |||||||
Other comprehensive (loss) income | 9,946 | 9,946 | |||||||
Ending balance (in shares) at Mar. 31, 2019 | 54,236,048 | 326,600 | |||||||
Ending balance at Mar. 31, 2019 | 1,193,705 | $ 543 | $ (7,799) | 1,109,386 | 84,559 | 7,016 | |||
Beginning balance (in shares) at Dec. 31, 2018 | 24,253,894 | 10,000 | |||||||
Beginning balance at Dec. 31, 2018 | $ 530,638 | $ 243 | $ (70) | 449,427 | 83,968 | (2,930) | |||
Ending balance (in shares) at Dec. 31, 2019 | 51,063,869 | 51,063,869 | 3,812,711 | ||||||
Ending balance at Dec. 31, 2019 | $ 1,190,797 | $ 549 | $ (94,603) | 1,117,879 | 147,911 | 19,061 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings (in shares) | 68,832 | ||||||||
Restricted stock units vested, net of shares withheld to cover tax withholdings | (602) | $ 1 | (603) | ||||||
Exercise of employee stock options (in shares) | 416,874 | ||||||||
Exercise of employee stock options | 418 | $ 4 | 414 | ||||||
Stock warrants exercised (in shares) | 10,000 | ||||||||
Stock warrants exercised | 109 | 109 | |||||||
Stock buyback (in shares) | (2,002,211) | (2,002,211) | |||||||
Stock buyback | (49,557) | $ 0 | $ (49,557) | ||||||
Stock based compensation | 1,958 | 1,958 | |||||||
Net income | 4,134 | 4,134 | |||||||
Dividends paid | (8,728) | (8,728) | |||||||
Other comprehensive (loss) income | $ 26,245 | 26,245 | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 49,557,364 | 49,557,364 | 5,814,922 | ||||||
Ending balance at Mar. 31, 2020 | $ 1,149,269 | $ 554 | $ (144,160) | $ 1,119,757 | $ 127,812 | $ 45,306 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Offering costs | $ 788 | |
Restricted Stock Units | ||
Shares withheld to cover tax withholdings (in shares) | 18,679 | 52,720 |
Employee Stock Options | ||
Shares withheld to cover tax withholdings (in shares) | 98,836 | 9,946 |
Shares withheld to cover exercise price (in shares) | 139,715 | |
Green Bancorp, Inc. | Restricted Stock Units | ||
Shares withheld to cover tax withholdings (in shares) | 25,872 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 4,134 | $ 7,407 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and intangibles | 4,087 | 4,006 | |
Net accretion of time deposit premium, debt discount, net and debt issuance costs | (588) | (2,936) | |
Provision for credit losses | 31,776 | 5,012 | |
Provision for unfunded commitments | 3,881 | 0 | $ 0 |
Accretion of loan purchase discount | (4,320) | (6,516) | |
Stock-based compensation expense | 1,958 | 17,557 | |
Compensation expense - liability-classified awards | 0 | 708 | |
Excess tax benefit from stock compensation | (1,388) | (25) | |
Net amortization of premiums on investment securities | 895 | 502 | |
Unrealized loss (gain) on equity securities recognized in earnings | 249 | (136) | |
Change in cash surrender value of bank-owned life insurance | (480) | (492) | |
Net loss on sales of investment securities | 0 | 772 | |
Change in fair value of held for sale Small Business Administration ("SBA") loans using fair value option | (165) | (62) | |
Gain on sales of mortgage loans held for sale | 142 | (113) | |
Gain on sales of SBA loans | 604 | (2,195) | |
Originations of loans held for sale | (11,634) | (6,918) | |
Proceeds from sales of loans held for sale | 10,689 | 9,709 | |
(Increase) decrease in accrued interest receivable and other assets | (13,141) | 3,733 | |
Increase (decrease) in accounts payable and other liabilities and accrued interest payable | 13,031 | (12,156) | |
Net cash provided by operating activities | 39,730 | 17,876 | |
Cash flows from investing activities: | |||
Cash received in excess of cash paid for the acquisition of Green | 0 | 112,710 | |
Purchases of securities available for sale | (200,682) | (146,134) | |
Sales of securities available for sale | 0 | 108,865 | |
Proceeds from maturities, calls and pay downs of available for sale securities | 107,743 | 21,620 | |
Maturity, calls and paydowns of securities held to maturity | 57 | 0 | |
Purchases of other investments, net | (28,712) | (12,478) | |
Net loans originated | (291,262) | 6,244 | |
Proceeds from sale of SBA loans | 8,384 | 24,534 | |
Net additions to bank premises and equipment | 1,342 | (2,590) | |
Net cash (used in) provided by investing activities | (403,130) | 112,771 | |
Cash flows from financing activities: | |||
Net change in deposits | (93,983) | 214,816 | |
Net change in advances from Federal Home Loan Bank | 699,962 | (75,037) | |
Redemption of subordinated debt | (5,000) | 0 | |
Net change in securities sold under agreement to repurchase | 73 | (448) | |
Payments to tax authorities for stock-based compensation | (3,606) | (1,279) | |
Proceeds from exercise of employee stock options | 3,422 | 873 | |
Proceeds from exercise of stock warrants | 109 | 0 | |
Purchase of treasury stock | (49,557) | (7,732) | |
Dividends paid | (8,728) | (6,816) | |
Net cash provided by financing activities | 542,692 | 124,377 | |
Net increase in cash and cash equivalents | 179,292 | 255,024 | |
Cash and cash equivalents at beginning of period | 251,550 | 84,449 | 84,449 |
Cash and cash equivalents at end of period | $ 430,842 | $ 339,473 | $ 251,550 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Organization Veritex Holdings, Inc. (“Veritex” or the “Company”), a Texas corporation and bank holding company, was incorporated in July 2009 and was formed for the purpose of acquiring one or more financial institutions located in Dallas, Texas and surrounding areas. Veritex, through its wholly-owned subsidiary, Veritex Community Bank (the “Bank”), is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates 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 both perform periodic examinations to ensure regulatory compliance. Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank, its wholly owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at March 31, 2020 and December 31, 2019, condensed consolidated results of operations for the three months ended March 31, 2020 and 2019, condensed consolidated stockholders’ equity for the three months ended March 31, 2020 and 2019 and condensed consolidated cash flows for the three months ended March 31, 2020 and 2019. Certain prior period balances have been reclassified to conform to the current period presentation. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on February 28, 2020. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions may also affect disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon an analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. Earnings Per Share Earnings per share (“EPS”) are based upon the Company’s weighted-average shares outstanding. The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Earnings (numerator) Net income $ 4,134 $ 7,407 Shares (denominator) Weighted average shares outstanding for basic EPS 50,725 54,293 Dilutive effect of employee stock-based awards 331 1,146 Adjusted weighted average shares outstanding 51,056 55,439 EPS: Basic $ 0.08 $ 0.14 Diluted $ 0.08 $ 0.13 For the three months ended March 31, 2020, there were 1,341 antidilutive shares excluded from the diluted EPS weighted average shares outstanding. For the three months ended March 31, 2019, there were no antidilutive shares excluded from the diluted EPS weighted average shares outstanding. Adoption of New Accounting Standards On January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, net investments in leases and OBS credit exposures. Results for reporting periods beginning after January 1, 2 020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $15,505 as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, managem ent did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $19,710 of the allowance for credit losses (“ACL”). The remaining noncredit discount will be accreted into interest income at the effective interest rate. As allowed by ASC 326, the Company elected to maintain pools of loans accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings as of the date of adoption. The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Pre-ASC 326 Impact of ASC 326 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans Construction and land 3,760 3,822 (62) Farmland 65 61 4 1 - 4 family residential 6,002 1,378 4,624 Multi-family residential 2,593 1,965 628 Owner Occupied Commercial Real Estate 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 Allowance for credit losses on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: Allowance for credit losses on OBS credit exposures $ 1,718 $ 878 840 In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in the previous two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the prior requirement to calculate a goodwill impairment charge using Step 2, which requires an entity to calculate any impairment charge by comparing the implied fair value of goodwill with its carrying amount. ASU 2017-04 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statements. On March 22 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation, (“the agencies”) issued an Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus. The interagency statement was effective immediately and impacted accounting for loan modification using ASC 310-40. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered troubled debt restructurings (“TDRs”). This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was passed by Congress. Section 4013 of the CARES Act provides financial institutions with an option to suspend the application of ASC 310-40 to eligible loan restructurings. A loan restructuring is eligible under Section 4013 if the loan restructuring is related to COVID-19, if the loan was not more than 30 days past due as of December 31, 2019, and if the restructuring occurs between March 1, 2020 and the earlier of 60 days after the termination of the national emergency or December 31, 2020. If a loan restructuring is not eligible under Section 4013, or if the financial institution does not elect to avail itself of the optional relief in Section 4013, the financial institution should evaluate the loan restructuring under ASC 310-40 considering the guidance in the interagency statement. For the month ending March 31, 2020, the Company had 85 modifications of loans with aggregate principal balances totaling $57,807 that qualified for temporary suspension of TDR requirements under Section 4013 of the CARES Act. The majority of these modifications allow 90-day deferment of principal and/or interest payments. More of these types of modifications are likely to be executed in the second quarter of 2020. Debt Securities Debt 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. Debt 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 over the period to maturity using a level-yield method, except for premiums on callable debt securities, which are amortized to their earliest call date. Realized gains and losses are recorded on the sale of debt securities in noninterest income. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in other assets on the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020 and 2019. Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities is excluded from the estimate of credit losses. All o wan ce for Cr e d it Loss e s – He l d to Mat u r i ty Sec u ri ti es Management measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held to maturity debt securities is excluded from the estimate of credit losses . Management classifies the held to maturity portfolio into the following major security types: mortgage-backed securities, coll ateralized mortgage obligations and municipal securities. All of the mortgage-backed securities and collateralized mortgage obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U . S. government, are highly rated by major rating agencies and have a long history of no credit losses . Loans Held for Investment Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, deferred loan fees and costs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on the condensed consolidated balance sheets. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due in accordance with the terms of the loan agreement. 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 interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Acquired Loans Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired. PCI loans were accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. All loans considered to be PCI loans prior to January 1, 2020 were converted to PCD loans upon the Company’s adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold. Upon adoption of ASC 326, the ACL was determined for each loan or pool and added to the loan or pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the loan or pool and the new amortized cost basis is the noncredit premium or discount which will be accreted into interest income over the remaining life of the loan or pool. Changes to the ACL after adoption are recorded through provision expense. Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. Allowance for Credit Losses - Loans The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the ACL through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, an asset will typically be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company will utilize a probability of default/loss given default (PD/LGD) model to estimate expected credit losses for our PCD loans and pools. The Company’s methodologies for estimating the ACL take into account available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Real Estate — This category of loans consists of the following loan types: Construction and land — This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. Farmland — These loans are principally loans to purchase farmland. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Multi-family residential — This category of loans is primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Owner occupied commercial real estate (“OOCRE”) — This category of loans includes real estate loans for a variety of commercial property types and purposes. 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. Non-owner occupied commercial real estate (“NOOCRE”) — This category of loans includes investment real estate loans that are primarily secured by office and industrial buildings, retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than OOCRE as they are more sensitive to adverse economic conditions. Commercial — This category of loans is for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, agriculture operating loans and other business loans for working capital and operational purposes. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory. Mortgage warehouse - Mortgage warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Consumer — This category of loans is used for personal use typically for consumer purposes. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. For collateralized financial assets that are not collateral dependent, the Company will consider the nature of the collateral, potential future changes in collateral values, and historical loss information for financial assets secured with similar collateral to determine the ACL. Troubled-debt Restructurings (TDRs) From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a TDR, using Accounting Standards Codification 310-40, “ Receivables – Troubled Debt Restructurings by Creditors ,” (“ASC 310-40”), 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. The ACL on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. In addition, when management has a reasonable expectation of executing a TDR the expected effect of the modification is included in the estimate of the ACL. Contractual Term The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected TDR. Discounted Cash Flow Method The Company uses the DCF method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and premium finance), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probabili |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | Supplemental Statement of Cash Flows Other supplemental cash flow information is presented below: Three Months Ended March 31, 2020 2019 (in thousands) Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 18,489 $ 14,975 Cash paid for income taxes 2,330 — 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 Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 — (48) Net foreclosure of other real estate owned and repossessed assets 1,725 — Non-cash assets acquired in business combination Investment securities $ — $ 661,032 Non-marketable equity securities — 40,287 Loans held for sale — 9,360 Loans held for investment — 3,245,492 Accrued interest receivable — 11,673 Bank-owned life insurance — 56,841 Bank premises, furniture and equipment — 39,426 Investment in trusts — 666 Intangible assets, net — 65,718 Goodwill — 206,821 Other assets — 12,245 Right of use asset — 9,373 Deferred taxes — 11,535 Current taxes — 1,799 Assets held for sale — 85,307 Total assets $ — $ 4,457,575 Non-cash liabilities assumed in business combination Non-interest-bearing deposits $ — $ 825,364 Interest-bearing deposits — 1,300,825 Certificates and other time deposits — 1,346,915 Accounts payable and accrued expenses — 26,587 Lease liability — 9,373 Accrued interest payable and other liabilities — 5,181 Securities sold under agreements to repurchase — 3,226 Advances from Federal Home Loan Bank — 300,000 Subordinated debentures and subordinated notes — 56,233 Liabilities held for sale — 52,682 Total liabilities $ — $ 3,926,386 |
Share Transactions
Share Transactions | 3 Months Ended |
Mar. 31, 2020 | |
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 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 also authorized an extension of the original expiration date of the Stock Buyback Program 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. The Stock Buyback Program does not obligate the Company to purchase any share and the program may be terminated or amended by the Board at any time prior to its expiration. During the three months ended March 31, 2020, 2,002,211 shares were repurchased through the Stock Buyback Program and held as treasury stock at an average price of $24.78. During the three months ended March 31, 2019, 316,600 shares were repurchased through the Stock Buyback Program and held as treasury stock at an average price of $24.42. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2020 | |
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 $15,373 and $11,122 at March 31, 2020 and December 31, 2019, respectively. The Company had no realized gains or losses on equity securities with a readily determinable fair value during the three months ended March 31, 2020 and 2019. The gross unrealized (loss) gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s condensed consolidated statements of income were as follows: Three Months Ended March 31, 2020 2019 Unrealized (loss) gain recognized on equity securities with a readily determinable fair value $ (249) $ 136 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 $3,575 at March 31, 2020 and December 31, 2019, respectively. Debt Securities Debt securities have been classified in the condensed consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, and the fair value of available for sale and held to maturity securities are as follows: March 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Value Available for sale Corporate bonds $ 107,802 $ 4,592 $ 298 $ — $ 112,096 Municipal securities 97,945 5,332 246 — 103,031 Mortgage-backed securities 313,077 19,020 — — 332,097 Collateralized mortgage obligations 450,490 18,700 300 — 468,890 Asset-backed securities 64,927 3,921 — — 68,848 $ 1,034,241 $ 51,565 $ 844 $ — $ 1,084,962 March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held to maturity Mortgage-backed securities $ 8,589 $ 783 $ — $ 9,372 $ — Collateralized mortgage obligations 1,784 152 — 1,936 — Municipal securities 22,469 1,736 — 24,205 — $ 32,842 $ 2,671 $ — $ 35,513 $ — The Company did not transfer any securities from available for sale to held to maturity at fair value during the three months ended March 31, 2020. December 31, 2019 Amortized Gross Gross 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 The following tables disclose the Company’s available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: March 31, 2020 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for sale Corporate bonds $ 14,134 $ 298 $ — $ — $ 14,134 $ 298 Municipal securities 17,120 246 — — 17,120 246 Mortgage-backed securities 24,425 300 — — 24,425 300 $ 55,679 $ 844 $ — $ — $ 55,679 $ 844 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 Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. The number of available for sale debt securities in an unrealized loss position totaled 10 and 11 at March 31, 2020 and December 31, 2019, respectively. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, as of March 31, 2020, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company’s condensed consolidated statements of income. The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the table below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The terms of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities thus approximates the terms of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. . March 31, 2020 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,912 5,042 — — Due from five years to ten years 105,390 109,583 2,833 2,974 Due after ten years 95,445 100,502 19,636 21,231 205,747 215,127 22,469 24,205 Mortgage-backed securities and collateralized mortgage obligations 763,567 800,987 10,373 11,308 Asset-backed securities 64,927 68,848 — — $ 1,034,241 $ 1,084,962 $ 32,842 $ 35,513 December 31, 2019 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,904 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 Proceeds from sales of debt securities available for sale and gross gains and losses for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Proceeds from sales $ — $ 108,865 Gross realized gains — 1 Gross realized losses — 772 As of March 31, 2020 and December 31, 2019, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of shareholders' equity. There was a blanket floating lien on all debt securities held by the Company to secure Federal Home Loan Bank (“FHLB”) advances as of March 31, 2020 and December 31, 2019. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Credit Losses Loans Held for Investment Loans held for investment in the accompanying condensed consolidated balance sheets are summarized as follows: March 31, 2020 December 31, 2019 Loans held for investment: Real estate: Construction and land $ 566,470 $ 629,374 Farmland 14,930 16,939 1 - 4 family residential 536,892 549,811 Multi-family residential 388,374 320,041 OOCRE 723,839 706,782 NOOCRE 1,828,386 1,784,201 Commercial 1,777,603 1,712,838 Mortgage warehouse 371,161 183,628 Consumer 15,771 17,457 6,223,426 5,921,071 Deferred loan costs, net 1,470 134 Allowance for credit losses (100,983) (29,834) Total loans held for investment $ 6,123,913 $ 5,891,371 Included in the net loan portfolio as of March 31, 2020 and December 31, 2019 was an accretable discount related to purchased performing and PCD loans, previously called PCI loans prior to the Company’s adoption of ASU 2016-13, acquired within a business combination in the approximate amounts of $25,167 and $57,811, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. For the three months ended March 31, 2020 and 2019, the Company recognized $3,260 and $4,355, respectively, of accretion on non-PCD loans into interest income. For the three months ended March 31, 2020 and 2019, the Company recognized $1,060 and $2,545, respectively, of accretion on PCD/PCI loans into interest income. In addition, included in the net loan portfolio as of March 31, 2020 and December 31, 2019 is a discount on retained loans from sale of originated SBA loans of $2,264 and $2,193, respectively. The majority of the Company’s loan portfolio consists of loans to businesses and individuals in the Dallas-Fort Worth metroplex and the Houston metropolitan area. This geographic concentration subjects the loan portfolio to the general economic conditions within these areas. The risks created by this concentration have been considered by management in the determination of the adequacy of the ACL. Management believes the ACL was adequate to cover estimated losses on loans as of March 31, 2020 and December 31, 2019. Allowance for Credit Losses The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected troubled debt restructuring. The activity in the ACL related to loans held for investment is as follows: Three Months Ended March 31, 2020 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 3,822 $ 61 $ 1,378 $ 1,965 $ 1,978 $ 8,139 $ 12,369 $ 122 $ 29,834 Impact of adopting ASC 326 non-PCD loans (707) 4 3,716 628 3,406 5,138 7,025 217 19,427 Impact of adoption ASC 326 PCD loans 645 — 908 — 7,682 2,037 8,335 103 19,710 Credit loss expense non-PCD loans 2,965 (7) 2,488 2,306 918 9,955 10,226 (15) 28,836 Credit loss expense PCD loans 113 — (173) — 2,477 412 126 (15) 2,940 Charge-offs — — — — — — — (68) (68) Recoveries — — 1 — — — 29 274 304 Ending Balance $ 6,838 0 $ 58 $ 8,318 $ 4,899 $ 16,461 $ 25,681 $ 38,110 $ 618 $ 100,983 Three Months Ended March 31, 2019 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 2,188 $ 56 $ 1,614 $ 361 $ 1,393 $ 5,070 $ 8,554 $ 19 $ 19,255 Credit Loss Expense 501 6 (5) (80) 124 626 3,785 55 5,012 Charge-offs — — — — — — (2,654) (74) (2,728) Recoveries — — 8 — — — 10 46 64 Ending Balance $ 2,689 $ 62 $ 1,617 $ 281 $ 1,517 $ 5,696 $ 9,695 $ 46 $ 21,603 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2020: Business Assets 1 Real Property 1 ACL Allocation Real estate: Construction and land $ 785 $ — $ 93 1 - 4 family residential — 594 13 OOCRE — 3,927 — NOOCRE — 18,904 — Commercial 13,647 — 5,815 Consumer 56 — — Total $ 14,488 $ 23,425 $ 5,921 1 Loans reported exclude PCD loans that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion. The following table presents loans individually and collectively evaluated for impairment, as well as PCD loans, and their respective allowance for credit loss allocations as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of ASU 2016-13: December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial 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 PCD 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 ACL Allocations Loans individually evaluated for impairment $ 128 $ 37 $ 395 $ 1,042 $ — $ 1,602 Loans collectively evaluated for impairment 3,755 3,306 9,702 10,754 122 27,639 PCD loans — — 20 573 — 593 Total $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 The following table presents information on impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of ASU 2016-13: 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 Consumer 61 61 — 61 — 62 Total $ 27,616 $ 23,112 $ 4,504 $ 27,616 $ 1,602 $ 33,088 (1) Loans reported exclude PCI loans. 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 in accordance with the terms of the loan agreement. . 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 March 31, 2020 and December 31, 2019, were as follows: March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Real estate: Construction and land $ 785 $ — $ 567 $ — Farmland — — — — 1 - 4 family residential 912 912 1,581 1,581 Multi-family residential — — — — OOCRE 3,794 3,794 3,029 2,778 NOOCRE 18,876 18,876 18,876 18,876 Commercial 14,395 2,852 5,672 2,747 Mortgage warehouse — — — — Consumer 74 74 54 54 Total $ 38,836 $ 26,508 $ 29,779 $ 26,036 There were no PCD loans included in non-accrual loans at March 31, 2020 and December 31, 2019. During the three months ended March 31, 2020, interest income not recognized on non-accrual loans was $173. During the three months ended March 31, 2019, interest income not recognized on non-accrual loans, excluding PCI loans, was $151. An age analysis of past due loans, aggregated by class of loans, as of March 31, 2020 and December 31, 2019, is as follows: March 31, 2020 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCD Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 327 $ 1,322 $ — $ 1,649 $ 559,216 $ 5,605 $ 566,470 $ — Farmland — — — — 14,930 — 14,930 — 1 - 4 family residential 4,400 62 210 4,672 527,410 4,810 536,892 210 Multi-family residential — — — — 388,374 — 388,374 — OOCRE 1,471 1 1,992 3,464 720,375 63,182 723,839 1,992 NOOCRE 3,773 — — 3,773 1,771,909 52,704 1,828,386 — Commercial 16,433 1,295 2,545 20,273 1,727,278 30,052 1,777,603 2,545 Mortgage warehouse — — — — 371,161 — 371,161 — Consumer 135 4 17 156 15,386 229 15,771 17 Total $ 26,539 $ 2,684 $ 4,764 $ 33,987 $ 6,096,039 $ 156,582 $ 6,223,426 $ 4,764 (1) Loans 90 days past due and still accruing excludes $68,325 of PCD loans as of March 31, 2020 that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion. December 31, 2019 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCD 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 Total $ 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 PCD loans as of December 31, 2019. Loans past due 90 days and still accruing increased to $4,764 as of March 31, 2020. These loans are also considered well-secured, and are in the process of collection with plans in place for the borrowers to bring the notes fully current or to subsequently be renewed. The Company believes that it will collect all principal and interest due on each of the loans past due 90 days and still accruing. 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 $3,142 and $2,142 as of March 31, 2020 and December 31, 2019, respectively. The following table presents the pre- and post-modification amortized cost of loan modified as TDRs during the three months ended March 31, 2020. There were no new TDRs during the three months ended March 31, 2019. The Company did not grant principal reductions or interest rate concessions on any TDRs. Extended Amortization Period Payment Deferrals Total Modifications Number of Loans Commercial $ — $ 970 $ 970 1 Total $ — $ 970 $ 970 $ 1 There were no loans modified as TDR loans within the previous 12 months and for which there was a payment default during the three months ended March 31, 2020 and 2019. A default for purposes of this disclosure is a TDR loan in which the borrower is 90 days past due or results in the foreclosure and repossession of the applicable collateral. Interest income recorded during the three months ended March 31, 2020 and 2019 on TDR loans and interest income that would have been recorded had the terms of the loans not been modified was minimal. The Company has not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of March 31, 2020 or December 31, 2019. Credit Quality Indicators From a credit risk standpoint, the Company classifies its loans in one of the following categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans classified as loss are charged-off. Loans not rated special mention, substandard, doubtful or loss are classified as pass loans. The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on criticized credits monthly. Ratings are adjusted to reflect the degree of risk and loss that is felt to be inherent in each credit as of each monthly reporting period. All classified credits are evaluated for impairment. If impairment is determined to exist, a specific reserve is established. The Company’s methodology is structured so that specific reserves are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss). Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness, however, such concerns are generally not so pronounced that the Company expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating. Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed. Credits rated doubtful are those in which full collection of principal appears highly questionable, and in which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual. Credits classified as PCD are those that, at acquisition date, have experienced a more-than-insignificant deterioration in credit quality since origination. All loans considered to be PCI loans prior to January 1, 2020 were converted to PCD loans upon adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold. The Company considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. Based on the most recent analysis performed, the risk category of loans by class of loans based on year or origination is as follows: Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2020 Construction and land: Pass $ 10,095 $ 183,309 $ 245,362 $ 37,572 $ 13,121 $ 22,578 $ 42,786 $ — $ 554,823 Special mention — — — — — 3,935 — — 3,935 Substandard — — 855 785 467 — — — 2,107 PCD — — 476 995 938 3,196 — — 5,605 Total construction and land $ 10,095 $ 183,309 $ 246,693 $ 39,352 $ 14,526 $ 29,709 $ 42,786 $ — $ 566,470 Farmland: Pass $ 290 $ 1,004 $ 3,367 $ 4,415 $ — $ 4,470 $ 1,384 $ — $ 14,930 Total farmland $ 290 $ 1,004 $ 3,367 $ 4,415 $ — $ 4,470 $ 1,384 $ — $ 14,930 1 - 4 family residential: Pass $ 16,974 $ 95,380 $ 118,905 $ 75,229 $ 41,458 $ 148,332 $ 29,490 $ 3,056 $ 528,824 Special mention — — 155 119 — 552 — — 826 Substandard — — — 103 629 1,700 — — 2,432 PCD — — — — — 4,810 — — 4,810 Total 1 - 4 family residential $ 16,974 $ 95,380 $ 119,060 $ 75,451 $ 42,087 $ 155,394 $ 29,490 $ 3,056 $ 536,892 Multi-family residential: Pass $ — $ 113,249 $ 172,526 $ 32,779 $ 43,606 $ 8,931 $ 219 $ — $ 371,310 Special mention — 17,064 — — — — — — 17,064 Total multi-family residential $ — $ 130,313 $ 172,526 $ 32,779 $ 43,606 $ 8,931 $ 219 $ — $ 388,374 OOCRE: Pass $ 19,057 $ 60,032 $ 108,442 $ 85,128 $ 123,511 $ 226,995 $ 1,632 $ 7,411 $ 632,208 Special mention — — 4,296 92 4,176 4,869 — — 13,433 Substandard — — 1,664 2,692 8,109 2,551 — — 15,016 PCD — — 9,788 — 7,978 45,416 — — 63,182 Total commercial real estate $ 19,057 $ 60,032 $ 124,190 $ 87,912 $ 143,774 $ 279,831 $ 1,632 $ 7,411 $ 723,839 NOOCRE: Pass $ 135,824 $ 311,588 $ 522,931 $ 116,413 $ 231,653 $ 405,536 $ 27,677 $ — $ 1,751,622 Special mention — — — — — 5,184 — — 5,184 Substandard — — — — — 18,876 — — 18,876 PCD — — 18,655 — 6,756 27,293 — — 52,704 Total commercial real estate $ 135,824 $ 311,588 $ 541,586 $ 116,413 $ 238,409 $ 456,889 $ 27,677 $ — $ 1,828,386 Commercial: Pass $ 62,944 $ 208,011 $ 201,677 $ 115,757 $ 31,351 $ 47,577 $ 1,024,341 $ 18,252 $ 1,709,910 Special mention 67 1,440 9,924 233 174 1,852 — 5,961 19,651 Substandard — — 3,729 3,883 7,347 2,839 — 192 17,990 PCD — — — 5,040 3,689 21,323 — — 30,052 Total commercial $ 63,011 $ 209,451 $ 215,330 $ 124,913 $ 42,561 $ 73,591 $ 1,024,341 $ 24,405 $ 1,777,603 Mortgage warehouse: Pass $ — $ — $ — $ — $ — $ — $ 371,161 $ — $ 371,161 Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ 371,161 $ — $ 371,161 Consumer: Pass $ 1,986 $ 2,079 $ 1,620 $ 4,896 $ 952 $ 733 $ 3,136 $ — $ 15,402 Substandard — — — 18 — 122 — — 140 PCD — — — 41 — 188 — — 229 Total consumer $ 1,986 $ 2,079 $ 1,620 $ 4,955 $ 952 $ 1,043 $ 3,136 $ — $ 15,771 Total Pass $ 247,170 $ 974,652 $ 1,374,830 $ 472,189 $ 485,652 $ 865,152 $ 1,501,826 $ 28,719 $ 5,950,190 Total Special Mention 67 18,504 14,375 444 4,350 16,392 — 5,961 60,093 Total Substandard — — 6,248 7,481 16,552 26,088 — 192 56,561 Total PCD — — 28,919 6,076 19,361 102,226 — — 156,582 Total $ 247,237 $ 993,156 $ 1,424,372 $ 486,190 $ 525,915 $ 1,009,858 $ 1,501,826 $ 34,872 $ 6,223,426 The following table summarizes the Company’s internal ratings of its loans, including PCD loans, as of December 31, 2019: December 31, 2019 Pass Special Substandard Doubtful PCD 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 — 129,000 17,457 Total $ 5,640,781 $ 80,293 $ 73,279 $ — $ 126,718 $ 5,921,071 Purchased Credit Impaired Loans (Prior to the Adoption of ASU 2016-13) Loans acquired with evidence of credit quality deterioration at acquisition, for which it was probable that the Company would not be able to collect all contractual amounts due, were accounted for as PCI loans. The carrying amount of PCI loans included in the condensed consolidated balance sheets and the related outstanding balances at December 31, 2019 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 Carrying amount $ 126,125 Outstanding balance 157,417 Changes in the accretable yield for PCI loans for the three months ended March 31, 2019 are included in table below. Three Months Ended March 31, 2019 Balance at beginning of period $ 18,747 Additions 18,073 Reclassifications (to) from nonaccretable (413) Accretion (2,545) Balance at end of period $ 33,862 During the three months ended March 31, 2019, the Company received cash collections in excess of expected cash flows on PCI loans accounted for individually and not aggregated into loan pools of $390. Servicing Assets The Company was servicing loans of approximately $211,941 and $228,638 as of March 31, 2020 and 2019, respectively. A summary of the changes in the related servicing assets are as follows: Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 3,113 $ 1,304 Servicing asset acquired through acquisition — 2,382 Increase from loan sales 109 461 Amortization charged to income (232) (175) Balance at end of period $ 2,990 $ 3,972 The estimated fair value of the servicing assets approximated the carrying amount at March 31, 2020, December 31, 2019 and March 31, 2019. Fair value is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at March 31, 2020 and December 31, 2019. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following table summarizes assets measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Available for sale securities $ — $ 1,084,962 $ — $ 1,084,962 Equity securities with a readily determinable fair value 15,373 — — 15,373 Loans held for sale (1) — 15,048 — 15,048 Interest rate swaps designated as hedging instruments — — — — Customer interest rate swaps not designated as hedging instruments — 14,654 — 14,654 Correspondent interest rate caps and collars not designated as hedging instruments — 7 — 7 Financial Liabilities: Interest rate swaps designated as hedging instruments — 1,903 — 1,903 Correspondent interest rate swaps not designated as hedging instruments — 15,743 — 15,743 Customer interest rate caps and collars not designated as hedging instruments — 7 — 7 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2019 Level 1 Level 2 Level 3 Total 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. There were no transfers between Level 2 and Level 3 during the three months ended March 31, 2020 and 2019. The following table summarizes assets measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of March 31, 2020 Assets: Collateral dependent loans $ — $ — $ 12,370 $ 12,370 Other real estate owned — — 7,720 7,720 As of December 31, 2019 Assets: Impaired loans — — 4,504 4,504 Other real estate owned — — 5,995 5,995 At March 31, 2020, collateral dependent loans with an allowance had a recorded investment of $12,370, with $5,921 specific allowance for credit loss allocated. At December 31, 2019, impaired loans had a carrying value of $4,504, with $1,602 specific allowance for credit loss allocated. Other real estate owned consisted of five properties recorded with a fair value of approximately $7,720 at March 31, 2020. Other real estate owned consisted of four properties recorded with a fair value of approximately $5,995 at December 31, 2019. There were no liabilities measured at fair value on a non-recurring basis as of March 31, 2020 or December 31, 2019. Fair Value of Financial Instruments The Company’s methods of determining fair value of financial instruments in this Note are consistent with its methodologies disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, with the exception of securities sold under agreements to repurchase. Please re fer to Note 17 in the Company’s Annual Report on Form 10-K for information on these methods. The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of March 31, 2020 and December 31, 2019 were as follows: Fair Value Carrying Level 1 Level 2 Level 3 March 31, 2020 Financial assets: Cash and cash equivalents $ 430,842 $ — $ 430,842 $ — Held to maturity investments 32,842 — 35,512 — Loans held for sale 15,048 — 15,048 — Loans held for investment, mortgage warehouse 371,161 — — 373,759 Loans held for investment 5,853,735 — — 5,799,072 Accrued interest receivable 22,059 — 22,059 — Bank-owned life insurance 81,395 — 81,395 — Servicing asset 2,991 — 2,991 — 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 92,809 N/A N/A N/A Financial liabilities: Deposits $ 5,799,945 $ — $ 5,783,125 $ — Advances from FHLB 1,377,832 — 1,129,409 — Accrued interest payable 7,881 — 7,881 — Subordinated debentures and subordinated notes 140,406 — 140,406 — Securities sold under agreement to repurchase 2,426 — 2,426 — 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 — Other borrowings 2,353 — 2,353 — |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
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 other liabilities on the accompanying condensed consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying condensed consolidated statements of cash flows. For derivatives not designated as hedging instruments, gains and losses due to changes in fair value are included in noninterest income and the operating section of the condensed 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 March 31, 2020 and December 31, 2019 are as shown in the table below. March 31, 2020 December 31, 2019 Estimated Fair Value Estimated Fair Value Notional Derivative Assets Derivative Liabilities Notional Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ 500,000 $ 4,613 $ — $ — $ — $ — Interest rate swap on money market deposit account payments 250,000 — 1,903 — — — Commercial loan interest rate floor — — — 275,000 3,353 — Total derivatives designated as hedging instruments 750,000 4,613 1,903 275,000 3,353 $ — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 272,636 — 15,743 222,394 105 4,736 Interest rate caps and collars 72,894 7 — 90,093 11 — Commercial customer counterparty: Interest rate swaps 272,636 14,654 — 222,394 4,393 84 Interest rate caps and collars 72,894 — 7 90,093 — 11 Total derivatives not designated as hedging instruments 691,060 14,661 15,750 624,974 4,509 4,831 Offsetting derivative assets/liabilities 4,620 4,620 (2,895) (2,895) Total derivatives $ 1,441,060 $ 23,894 $ 22,273 $ 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 three months ended March 31, 2020 was as follows. We had no cash flow hedges for the three months ended March 31, 2019. For the Three Months Ended For the Three Months Ended Net Gain recognized in other comprehensive income on derivative Gain reclassified from accumulated other comprehensive income into interest income Gain recognized in other noninterest income Net Gain recognized in other comprehensive income on derivative Gain reclassified from accumulated other comprehensive income into interest income Gain recognized in other noninterest income Derivatives designated as hedging instruments (cash flow hedges): Interest rate floor $ 1,022 $ 284 $ — $ — $ — $ — Interest rate swaps 2,710 — — — — — Total $ 3,732 $ 284 $ — $ — $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 501 $ — $ — $ 250 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. In March 2020, the Company entered into an interest rate swap for a notional amount of $500,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted issuances of three-month term debt arrangements every three months from March 2022 through March 2032. These forecasted borrowings can be sourced from an FHLB advance, repurchase agreement, brokered certificate of deposit or some combination. In March 2020, the Company entered into an interest rate swap for a notional amount of $250,000 to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted money market account borrowings from March 2020 through March 2025. In May 2019, the Company entered into a $275,000 notional interest rate floor for commercial loans 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, caps and collars outstanding as of March 31, 2020 and December 31, 2019. March 31, 2020 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 272,636 3.140 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (15,743) Interest rate caps and collars $ 72,894 2.500% / 3.100% LIBOR 1 month + 0% Wtd. Avg. $ 7 Correspondent interest rate derivatives: Interest rate swaps - pay fixed/receive floating $ 272,636 3.140 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 14,654 Interest rate caps and collars $ 72,894 3.000% / 5.000% LIBOR 1 month + 0% - 2.50% Wtd. Avg. $ (7) December 31, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 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% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 11 Correspondent interest rate derivatives: 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) |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the condensed consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table sets forth the approximate amounts of these financial instruments as of March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 Commitments to extend credit $ 1,607,683 $ 1,950,350 Standby and commercial letters of credit 34,529 27,196 Total $ 1,642,212 $ 1,977,546 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is substantially the same as that involved in making commitments to extend credit. The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for unfunded commitment credit losses related to those financial instruments. This allowance is recorded in accounts payable and other liabilities on the condensed consolidated balance sheets: March 31, December 31, 2020 2019 Beginning balance for allowance for unfunded commitments $ 878 $ 878 Impact of CECL adoption 840 — Provision for unfunded commitments 3,881 — Ending balance of allowance for unfunded commitments $ 5,599 $ 878 |
Stock-Based Awards
Stock-Based Awards | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Awards | Stock-Based Awards Veritex 2010 Stock Option and Equity Incentive Plan (“2010 Incentive Plan”) The Company recognized no stock compensation expense related to the 2010 Incentive Plan for the three months ended March 31, 2020. The Company recognized stock compensation expense related to the 2010 Incentive Plan of $2 for the three months ended March 31, 2019. A summary of option activity under the 2010 Incentive Plan for the three months ended March 31, 2020 and 2019, and changes during the periods then ended, is presented below: 2010 Incentive Plan Non-Performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 275,000 $ 10.12 2.39 years Exercised (15,000) 10.28 Outstanding and exercisable at March 31, 2019 260,000 $ 10.12 2.11 years Outstanding at January 1, 2020 257,500 $ 10.28 1.37 years $ 4,971 Exercised (202,500) 10.14 3,691 Outstanding and exercisable at March 31, 2020 55,000 $ 10.77 2.02 years $ 232 As of March 31, 2020, December 31, 2019 and March 31, 2019 there was no unrecognized stock compensation expense related to non-performance based stock options. A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the three months ended March 31, 2020 and 2019 is presented below: Fair Value of Options Exercised as of March 31, 2020 2019 Non-performance based stock options exercised 5,745 390 2019 Amended Plan and Green Acquired Omnibus Plans 2020 Grants of Restricted Stock Units During the three months ending March 31, 2020, the Company granted non-performance-based and performance-based restricted stock units (“RSUs”) under the 2019 Amended and Restated Omnibus Incentive Plan, which amended and restated the 2014 Omnibus Incentive Plan (“2019 Amended Plan”), and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (“Veritex (Green) 2014 Plan”). The majority of the non-performance-based RSUs granted to employees during the three months ended March 31, 2020 are subject to “cliff” vesting after three years from the grant date. There were also non-performance-based RSUs granted to the Company’s directors that vest in four equal quarterly installments from the grant date. The performance-based RSUs granted in January 2020 are subject to “cliff” vesting, with a vesting date of January 1, 2023, based on a performance period starting on December 31, 2019 and ending on December 31, 2022. The vesting percentage is determined based on the Company’s total shareholder return (“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 RSUs based on the Company’s TSR percentile rank. Vesting % Below the 24.9 th percentile of Peer Group TSR —% Within the 25 th to 49.9 th percentile of Peer Group TSR 50% Within the 50 th the 74.9 th percentile of Peer Group TSR 100% At or above the 75 th percentile of Peer Group TSR 150% A Monte Carlo simulation was used to estimate the fair value of performance-based RSUs 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 RSUs to vest. 2020 Grant of Stock Options In January 2020, the Company granted non-performance-based options under the 2019 Amended Plan and the Veritex (Green) 2014 Plan, which vest over three years in 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 three months ended March 31, 2020: Three Months Ended March 31, 2020 Dividend yield 2.33% to 2.40% Expected life 5.0 to 6.5 years Expected volatility 27.49% to 28.78% Risk-free interest rate 1.65% to 1.76% The expected life is based on the amount of time that options being valued are expected to remain outstanding. The dividend yield assumption is based on the Company’s dividend 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. Stock Compensation Expense and Liability Award Compensation Expense Stock compensation expense for equity awards under the 2019 Amended Plan was approximately $1,488 for the three months ended March 31, 2020. For the three months ended March 31, 2019, the Company recognized $1,508 in stock compensation expense. Stock compensation expense for options and RSUs granted under the Veritex (Green) 2014 Plan was approximately $470 and $385 for the three months ended March 31, 2020 and March 31, 2019, respectively. There was no compensation expense for liability-classified awards under the 2019 Amended Plan during the three months ended March 31, 2020. Compensation expense for liability-classified awards was $708 for the three months ended March 31, 2019. 2019 Amended Plan A summary of the status of the Company’s stock options under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Non-performance Based Stock Options Equity Awards Liability Awards Shares Weighted Weighted Aggregate Intrinsic Value Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 449,520 $ 24.47 8.24 years — $ — Granted 75,928 21.38 253,633 21.38 Forfeited (4,445) 21.38 — — Exercised (11,848) 15.37 — — Outstanding at March 31, 2019 509,155 $ 23.28 8.28 years 253,633 $ 21.38 9.76 years Options exercisable at March 31, 2019 437,672 $ 24.71 8.04 years — $ — Outstanding at January 1, 2020 849,768 $ 23.61 8.24 years $ 4,687 — $ — Granted 144,025 29.13 — — Forfeited (21,891) 28.17 — — Exercised (33,439) 19.19 — — Outstanding at March 31, 2020 938,463 $ 24.51 8.28 years $ — — $ — $ — Options exercisable at March 31, 2020 469,983 $ 24.15 7.50 years $ — — $ — Weighted average fair value of options granted during the period $ 29.13 $ — As of March 31, 2020, December 31, 2019 and March 31, 2019, there was $3,563, $2,948 and $497 of total unrecognized compensation expense related to equity options awarded under the 2019 Amended Plan, respectively. As of March 31, 2020, there was no unrecognized compensation expense related to liability options awarded under the 2019 Amended Plan. The unrecognized compensation expense at March 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 2.34 years. A summary of the status of the Company’s non-performance-based RSUs under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Non-performance-Based RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at January 1, 2019 133,455 $ 19.67 — $ — Granted 66,327 21.38 165,739 21.38 Vested into shares (196,171) 23.41 — — Outstanding at March 31, 2019 3,611 $ 21.81 165,739 $ 21.38 Outstanding at January 1, 2020 175,688 $ 21.65 — $ — Granted 95,885 29.10 — — Vested into shares (46,926) 28.99 — — Outstanding at March 31, 2020 224,647 $ 24.97 — $ — A summary of the status of the Company’s performance-based RSUs under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Performance-Based RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at January 1, 2019 63,988 $ 21.28 — $ — Granted 29,282 21.38 32,249 21.38 Vested into shares (51,284) 25.31 — — Forfeited (14,418) 26.85 — — Outstanding at March 31, 2019 27,568 $ 23.11 32,249 $ 21.38 Outstanding at January 1, 2020 63,727 $ 22.76 — $ — Granted 39,398 29.13 — — Vested into shares (1,841) 26.65 — — Outstanding at March 31, 2020 101,284 $ 25.22 — $ — As of March 31, 2020, December 31, 2019 and March 31, 2019 there was $7,209, $4,329 and $498 of total unrecognized compensation related to equity RSUs awarded under the 2019 Amended Plan, respectively. As of March 31, 2020, there was no of unrecognized compensation related to liability RSUs awarded under the 2019 Amended Plan. The unrecognized compensation expense at March 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 2.3 years. A summary of the fair value of the Company’s stock options exercised and RSUs vested under the 2019 Amended Plan during the three months ended March 31, 2020 and 2019 is presented below: Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31, 2020 2019 Non-performance-based stock options exercised 943 315 Non-performance-based RSUs vested 116 1,096 Performance-based RSUs vested 18 4,346 Veritex (Green) 2014 Plan A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Exercised (28,033) 12.89 Outstanding at March 31, 2019 488,538 $ 23.28 8.35 years Options exercisable at March 31, 2019 276,745 $ 15.67 7.27 years Outstanding at January 1, 2020 386,969 $ 19.30 7.86 years Granted 31,075 29.13 Forfeited (23,736) 21.38 Exercised (32,526) 19.81 Outstanding at March 31, 2020 361,782 $ 19.97 7.77 years $ — Options exercisable at March 31, 2020 214,342 $ 17.87 6.94 years $ — Weighted average fair value of options granted during the period $ 29.13 As of March 31, 2020, December 31, 2019 and March 31, 2019, there was $1,047, $1,062, and $1,474 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan, respectively. The unrecognized compensation expense at March 31, 2020 is expected to be recognized over the remaining weighted average requisite service period of 1.9 years. A summary of the status of the Company’s non-performance-based RSUs under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019 and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance-Based RSUs Units Weighted Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at March 31, 2019 116,250 $ 21.38 Outstanding at January 1, 2020 116,250 $ 21.38 Granted 33,918 29.13 Vested into shares (38,744) 29.13 Forfeited (3,492) 29.13 Outstanding at March 31, 2020 107,932 $ 24.45 A summary of the status of the Company’s performance-based RSUs under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019 and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Performance-Based RSUs Units Weighted Outstanding at January 1, 2019 — $ — Granted 26,145 $ 21.38 Outstanding at March 31, 2019 26,145 $ 21.38 Outstanding at January 1, 2020 25,320 $ 21.38 Granted 8,531 29.13 Outstanding at March 31, 2020 33,851 $ 23.33 As of March 31, 2020, December 31, 2019 and March 31, 2019, there was $2,577, $1,991, and $2,750, respectively, of total unrecognized compensation related to outstanding performance-based RSUs awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 2.0 years. A summary of the fair value of the Company’s stock options exercised and RSUs vested under the Veritex (Green) 2014 Plan during the three months ended March 31, 2020 and 2019 s presented below: Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31, 2020 2019 Non-performance-based stock options exercised $ 950 $ 558 Non-performance-based RSUs vested 142 — 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 three months ended March 31, 2019. No stock options or restricted stock units were awarded from these plans during the three months ended March 31, 2020 or 2019. During the three months ended March 31, 2020, 386,960 stock options granted under the Green 2010 Plan were exercised and no stock options granted under the Green 2006 Plan were exercised. As of March 31, 2020, 179,976 exercisable stock options remain outstanding in the Green 2010 Plan and no exercisable stock options remain outstanding in the Green 2006 Plan. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended March 31, 2020 2019 Income tax expense (benefit) for the period $ (684) $ 1,989 Effective tax rate (19.8) % 21.2 % For the three months ended March 31, 2020, the Company had an effective tax rate of (19.8)%. The decrease in the effective tax rate was primarily due to a net discrete tax benefit of $1,388 primarily associated with the recognition of excess tax benefit realized on share-based payment awards pursuant to ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, Compensation - Stock Compensation (Topic 718) . Excluding the discrete tax item, the Company had an effective tax rate of 22.1% for the three month ended March 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that the ultimate liability, if any, resulting from these actions will not materially affect the financial position or results of operations of the Company. Qualified Affordable Housing Investment As of March 31, 2020 and December 31, 2019, the balance of the investment for qualified affordable housing projects was $3,194 and $3,292, respectively. This balance is reflected in other investments on the condensed consolidated balance sheets. The total unfunded commitment related to the investment in certain qualified housing projects totaled $622 and $1,091 as of March 31, 2020 and December 31, 2019, respectively. The Company expects to fulfill these commitments during the year ended 2034. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained EarningsThe Company, on a consolidated basis, and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can lead to the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In the first quarter of 2020, U.S. federal regulatory authorities issued an interim final rule that provides banking organizations that adopt CECL during the 2020 calendar year with the option to delay for two years the estimated impact of CECL on regulatory capital relative to regulatory capital determined under the prior incurred loss methodology, followed by a three-year transition period to phase out the aggregate amount of the capital benefit provided during the initial two-year delay (i.e., a five-year transition in total). In connection with our adoption of CECL on January 1, 2020, we have elected to utilize the five-year CECL transition. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of March 31, 2020 and December 31, 2019, that the Company and the Bank met all capital adequacy requirements to which they were subject. As of March 31, 2020 and December 31, 2019, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Company and the Bank must maintain minimum total risk-based, CET1, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since March 31, 2020 that management believes have changed the Company’s categorization as “well capitalized.” A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of March 31, 2020 Total capital (to risk-weighted assets) Company $ 918,866 12.48 % $ 589,017 8.0 % n/a n/a Bank 912,112 12.37 % 589,887 8.0 % $ 737,358 10.0 % Tier 1 capital (to risk-weighted assets) Company 730,461 9.92 % 441,811 6.0 % n/a n/a Bank 834,035 11.31 % 442,459 6.0 % 589,945 8.0 % Common equity tier 1 to risk-weighted assets Company 701,401 9.53 % 331,197 4.5 % n/a n/a Bank 834,035 11.31 % 331,844 4.5 % 479,330 6.5 % Tier 1 capital (to average assets) Company 730,461 9.49 % 307,887 4.0 % n/a n/a Bank 834,035 10.83 % 308,046 4.0 % 385,058 5.0 % 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 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of Veritex and the Bank, its wholly owned subsidiary. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”), but do not include all of the information and footnotes required for complete financial statements. Intercompany transactions and balances are eliminated in consolidation. In management’s opinion, these unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s condensed consolidated financial position at March 31, 2020 and December 31, 2019, condensed consolidated results of operations for the three months ended March 31, 2020 and 2019, condensed consolidated stockholders’ equity for the three months ended March 31, 2020 and 2019 and condensed consolidated cash flows for the three months ended March 31, 2020 and 2019. Certain prior period balances have been reclassified to conform to the current period presentation. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown herein are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission on February 28, 2020. |
Segment Reporting | Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon an analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. |
Earnings Per Share | Earnings Per ShareEarnings per share (“EPS”) are based upon the Company’s weighted-average shares outstanding. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards On January 1, 2020, the Company adopted Accounting Standard Update (“ASU”) 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities. It also applies to off-balance sheet (“OBS”) credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments) and net investments in leases recognized by a lessor in accordance with Topic 842 on leases. In addition, Accounting Standards Codification (“ASC”) 326 made changes to the accounting for available-for-sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available-for-sale debt securities management does not intend to sell or believes that it is more likely than not they will be required to sell. The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, net investments in leases and OBS credit exposures. Results for reporting periods beginning after January 1, 2 020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recorded a net decrease to retained earnings of $15,505 as of January 1, 2020 for the cumulative effect of adopting ASC 326. The Company adopted ASC 326 using the prospective transition approach for financial assets purchased with credit deterioration (“PCD”) that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the standard, managem ent did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2020, the amortized cost basis of the PCD assets were adjusted to reflect the addition of $19,710 of the allowance for credit losses (“ACL”). The remaining noncredit discount will be accreted into interest income at the effective interest rate. As allowed by ASC 326, the Company elected to maintain pools of loans accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether modifications to individual acquired financial assets accounted for in pools were troubled debt restructurings as of the date of adoption. The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Pre-ASC 326 Impact of ASC 326 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans Construction and land 3,760 3,822 (62) Farmland 65 61 4 1 - 4 family residential 6,002 1,378 4,624 Multi-family residential 2,593 1,965 628 Owner Occupied Commercial Real Estate 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 Allowance for credit losses on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: Allowance for credit losses on OBS credit exposures $ 1,718 $ 878 840 In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in the previous two-step impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. The standard eliminates the prior requirement to calculate a goodwill impairment charge using Step 2, which requires an entity to calculate any impairment charge by comparing the implied fair value of goodwill with its carrying amount. ASU 2017-04 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statements. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statement disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by these amendments. ASU 2018-15 was effective for the Company on January 1, 2020 and did not have a material impact on the Company’s financial statements. |
Debt Securities | Debt Securities Debt 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. Debt 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 over the period to maturity using a level-yield method, except for premiums on callable debt securities, which are amortized to their earliest call date. Realized gains and losses are recorded on the sale of debt securities in noninterest income. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in other assets on the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020 and 2019. |
Debt Securities | Debt Securities Debt 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. Debt 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 over the period to maturity using a level-yield method, except for premiums on callable debt securities, which are amortized to their earliest call date. Realized gains and losses are recorded on the sale of debt securities in noninterest income. The Company has made a policy election to exclude accrued interest from the amortized cost basis of debt securities and report accrued interest separately in other assets on the consolidated balance sheets. A debt security is placed on nonaccrual status at the time any principal or interest payments become more than 90 days delinquent or if full collection of interest or principal becomes uncertain. Accrued interest for a security placed on nonaccrual is reversed against interest income. There was no accrued interest related to debt securities reversed against interest income for the three months ended March 31, 2020 and 2019. |
Allowance for Credit Losses | Allowance for Credit Losses – Available for Sale Securities For available for sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through income. For debt securities available for sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available for sale debt securities is excluded from the estimate of credit losses. All o wan ce for Cr e d it Loss e s – He l d to Mat u r i ty Sec u ri ti es Management measures expected credit losses on held to maturity debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Accrued interest receivable on held to maturity debt securities is excluded from the estimate of credit losses . Management classifies the held to maturity portfolio into the following major security types: mortgage-backed securities, coll ateralized mortgage obligations and municipal securities. All of the mortgage-backed securities and collateralized mortgage obligations held by the Company are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U . S. government, are highly rated by major rating agencies and have a long history of no credit losses |
Loans Held for Investment | Loans Held for Investment Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost, net of the ACL. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, deferred loan fees and costs. The Company has made a policy election to exclude accrued interest from the amortized cost basis of loans and report accrued interest separately from the related loan balance in other assets on the condensed consolidated balance sheets. Interest on loans is recognized using the effective-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due in accordance with the terms of the loan agreement. 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 interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Under the cash-basis method, interest income is recorded when the payment is received in cash. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Acquired Loans Prior to January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired. PCI loans were accounted for individually or aggregated into pools of loans based on common risk characteristics such as credit grade, loan type, and date of origination. All loans considered to be PCI loans prior to January 1, 2020 were converted to PCD loans upon the Company’s adoption of ASC 326. The Company elected to maintain pools of loans that were previously accounted for under ASC 310-30 and will continue to account for these pools as a unit of account. Loans are only removed from the existing pools if they are foreclosed, written off, paid off, or sold. Upon adoption of ASC 326, the ACL was determined for each loan or pool and added to the loan or pool's carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the loan or pool and the new amortized cost basis is the noncredit premium or discount which will be accreted into interest income over the remaining life of the loan or pool. Changes to the ACL after adoption are recorded through provision expense. Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered PCD loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial ACL is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial ACL is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as credit loss expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. |
Allowance for Credit Losses - Loans | Allowance for Credit Losses - Loans The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The Company estimates the ACL on loans based on the underlying assets’ amortized cost basis, which is the amount at which the financing receivable is originated or acquired, adjusted for applicable accretion or amortization of premium, discount, and net deferred fees or costs, collection of cash, and charge-offs. In the event that collection of principal becomes uncertain, the Company has policies in place to reverse accrued interest in a timely manner. Therefore, the Company has made a policy election to exclude accrued interest from the measurement of ACL. Expected credit losses are reflected in the ACL through a charge to credit loss expense. When the Company deems all or a portion of a financial asset to be uncollectible the appropriate amount is written off and the ACL is reduced by the same amount. The Company applies judgment to determine when a financial asset is deemed uncollectible; however, an asset will typically be considered uncollectible no later than when all efforts at collection have been exhausted. Subsequent recoveries, if any, are credited to the ACL when received. The Company measures expected credit losses of financial assets on a collective (pool) basis, when the financial assets share similar risk characteristics. Depending on the nature of the pool of financial assets with similar risk characteristics, the Company uses a discounted cash flow (“DCF”) method or a loss-rate method to estimate expected credit losses. The Company will utilize a probability of default/loss given default (PD/LGD) model to estimate expected credit losses for our PCD loans and pools. The Company’s methodologies for estimating the ACL take into account available relevant information about the collectability of cash flows, including information about past events, current conditions, and reasonable and supportable forecasts. The methodologies apply historical loss information, adjusted for asset-specific characteristics, economic conditions at the measurement date, and forecasts about future economic conditions expected to exist through the contractual lives of the financial assets that are reasonable and supportable, to the identified pools of financial assets with similar risk characteristics for which the historical loss experience was observed. The Company has identified the following pools of financial assets with similar risk characteristics for measuring expected credit losses: Real Estate — This category of loans consists of the following loan types: Construction and land — This category of loans consists of loans to finance the ground up construction, improvement and/or carrying for sale after the completion of construction of owner occupied and non-owner occupied residential and commercial properties, and loans secured by raw or improved land. The repayment of construction loans is generally dependent upon the successful completion of the improvements by the builder for the end user, or sale of the property to a third party. Repayment of land secured loans are dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. Farmland — These loans are principally loans to purchase farmland. 1-4 family residential — This category of loans includes both first and junior liens on residential real estate. Home equity revolving lines of credit and home equity term loans are included in this group of loans. Multi-family residential — This category of loans is primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Owner occupied commercial real estate (“OOCRE”) — This category of loans includes real estate loans for a variety of commercial property types and purposes. 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. Non-owner occupied commercial real estate (“NOOCRE”) — This category of loans includes investment real estate loans that are primarily secured by office and industrial buildings, retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than OOCRE as they are more sensitive to adverse economic conditions. Commercial — This category of loans is for commercial, corporate and business purposes. The Company’s commercial business loan portfolio is comprised of loans for a variety of purposes and across a variety of industries. These loans include general commercial and industrial loans, loans to purchase capital equipment, agriculture operating loans and other business loans for working capital and operational purposes. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory. Mortgage warehouse - Mortgage warehouse facilities are provided to unaffiliated mortgage origination companies and are collateralized by 1-4 family residential loans. The originator closes new mortgage loans with the intent to sell these loans to third party investors for a profit. The Company provides funding to the mortgage companies for the period between the origination and their sale of the loan. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Consumer — This category of loans is used for personal use typically for consumer purposes. Collateral Dependent Financial Assets Loans that do not share risk characteristics are evaluated on an individual basis. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized costs basis of the financial asset exceeds the fair value of the underlying collateral less estimated cost to sell. The ACL may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. For collateralized financial assets that are not collateral dependent, the Company will consider the nature of the collateral, potential future changes in collateral values, and historical loss information for financial assets secured with similar collateral to determine the ACL. Troubled-debt Restructurings (TDRs) From time to time, the Company may modify its loan agreement with a borrower. A modified loan is considered a TDR, using Accounting Standards Codification 310-40, “ Receivables – Troubled Debt Restructurings by Creditors ,” (“ASC 310-40”), 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. The ACL on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring. In addition, when management has a reasonable expectation of executing a TDR the expected effect of the modification is included in the estimate of the ACL. Contractual Term The Company’s estimate of the ACL reflects losses expected over the remaining contractual life of the assets. The contractual term does not consider extensions, renewals or modifications unless the Company has identified an expected TDR. Discounted Cash Flow Method The Company uses the DCF method to estimate expected credit losses for the commercial real estate, construction, land development, land, 1-4 family residential, commercial (excluding liquid credit and premium finance), and consumer loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjusted for estimated prepayment speed, curtailments, time to recovery, probability of default, and loss given default. The modeling of expected prepayment speeds, curtailment rates, and time to recovery are based on historical internal data. The Company uses regression analysis of historical internal and peer data to determine suitable loss drivers to utilize when modeling lifetime probability of default and loss given default. This analysis also determines how expected probability of default and loss given default will react to forecasted levels of the loss drivers. For all loan pools utilizing the DCF method, management utilizes and forecasts Texas unemployment as a loss driver. Management also utilizes and forecasts either one-year percentage change in Texas gross domestic product or one-year percentage change in the commercial real estate property index as a second loss driver depending on the nature of the underlying loan pool and how well that loss driver correlates to expected future losses. For all DCF models, management has determined that four quarters represents a reasonable and supportable forecast period and reverts back to a historical loss rate over four quarters on a straight-line basis. Management leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the four-quarter forecast period. Other internal and external indicators of economic forecasts are also considered by management when developing the forecast metrics. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment, curtailment, and time to recovery) produces an expected cash flow stream at the instrument level. Instrument effective yield is calculated, net of the impacts of prepayment assumptions, and the instrument expected cash flows are then discounted at that effective yield to produce an instrument-level net present value of expected cash flows (“NPV”). An ACL is established for the di fference between the instrument’s NPV and amortized cost basis. The ACL is further increased for qualitative loss factors based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Loss-Rate Method The Company uses a loss-rate method to estimate expected credit losses for its farmland and mortgage warehouse loan pool. For this loan segment, the Company applies an expected loss ratio based on internal and peer historical losses adjusted as appropriate for qualitative factors. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. Probability of Default/Loss Given Default Method The Company uses the PD/L GD method to estimate expected credit losses for the construction and land, 1-4 family residential, OOCRE, NOOCRE, commercial and consumer PCD loan pools. For each of these loan segments, the Company generates cash flow projections at the instrument level wherein payment expectations are adjuste d for estimated prepayment speed, time to recovery, probability of default, and loss given default. The combination of adjustments for credit expectations (default and loss) and timing expectations (prepayment and time to recovery) produces an expected cash flow stream at the instrument level. An ACL is established for the di fference between the instrument’s undiscounted cash flows and amortized cost basis. The ACL is further increased for qualitative loss factors based on management's judgment of company, market, industry or business specific data, changes in underlying loan composition of specific portfolios, trends relating to credit quality, delinquency, non-performing and adversely rated loans, and reasonable and supportable forecasts of economic conditions. |
Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures | Loan Commitments and Allowance for Credit Losses on Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded. The Company records an ACL on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancellable, through a charge to provision for credit losses for unfunded commitments included in the Company’s condensed consolidated statements of income. The ACL on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur, and is included in accounts payable and other liabilities on the Company’s consolidated balance sheets. |
Derivative Financial Instruments | Derivative Financial Instruments (Not Designated as Accounting Hedges) The Company has entered into certain derivative instruments pursuant to a customer accommodation program under which the Company enters into an interest rate swap, 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 on the Company’s condensed consolidated statements of income and the fair value amounts are included in other assets and accounts payable and other liabilities on the Company’s condensed consolidated balance sheets. Derivative Financial Instruments (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. Gains or losses resulting from the termination or sale of a derivative accounted for as a cash flow hedge remain in other comprehensive income and are accreted or amortized to earnings over the remaining period of the former hedging relationship unless the forecasted transaction becomes probable of not occurring. |
Goodwill | Goodwill 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 quantitative 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 quantitative goodwill impairment test. The quantitative goodwill impairment test, used to identify both the existence of potential impairment and the amount of impairment loss, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Any such adjustments to goodwill are reflected in the results of operations in the periods in which they become known. The Company evaluated events and circumstances as of March 31, 2020 and determined that it was not more likely than not that impairment existed as of that date. The Company recorded no impairments of goodwill during the three months ended March 31, 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS | The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 2019 Earnings (numerator) Net income $ 4,134 $ 7,407 Shares (denominator) Weighted average shares outstanding for basic EPS 50,725 54,293 Dilutive effect of employee stock-based awards 331 1,146 Adjusted weighted average shares outstanding 51,056 55,439 EPS: Basic $ 0.08 $ 0.14 Diluted $ 0.08 $ 0.13 |
Schedule of Impact of ASC 326 | The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Pre-ASC 326 Impact of ASC 326 Adoption Assets: Allowance for credit losses on debt securities held-to-maturity $ — $ — $ — Allowance for credit losses on loans Construction and land 3,760 3,822 (62) Farmland 65 61 4 1 - 4 family residential 6,002 1,378 4,624 Multi-family residential 2,593 1,965 628 Owner Occupied Commercial Real Estate 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 Allowance for credit losses on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: Allowance for credit losses on OBS credit exposures $ 1,718 $ 878 840 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Three Months Ended March 31, 2020 2019 (in thousands) Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 18,489 $ 14,975 Cash paid for income taxes 2,330 — 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 Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 — (48) Net foreclosure of other real estate owned and repossessed assets 1,725 — Non-cash assets acquired in business combination Investment securities $ — $ 661,032 Non-marketable equity securities — 40,287 Loans held for sale — 9,360 Loans held for investment — 3,245,492 Accrued interest receivable — 11,673 Bank-owned life insurance — 56,841 Bank premises, furniture and equipment — 39,426 Investment in trusts — 666 Intangible assets, net — 65,718 Goodwill — 206,821 Other assets — 12,245 Right of use asset — 9,373 Deferred taxes — 11,535 Current taxes — 1,799 Assets held for sale — 85,307 Total assets $ — $ 4,457,575 Non-cash liabilities assumed in business combination Non-interest-bearing deposits $ — $ 825,364 Interest-bearing deposits — 1,300,825 Certificates and other time deposits — 1,346,915 Accounts payable and accrued expenses — 26,587 Lease liability — 9,373 Accrued interest payable and other liabilities — 5,181 Securities sold under agreements to repurchase — 3,226 Advances from Federal Home Loan Bank — 300,000 Subordinated debentures and subordinated notes — 56,233 Liabilities held for sale — 52,682 Total liabilities $ — $ 3,926,386 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gain Recognized on Equity Securities | The gross unrealized (loss) gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s condensed consolidated statements of income were as follows: Three Months Ended March 31, 2020 2019 Unrealized (loss) gain recognized on equity securities with a readily determinable fair value $ (249) $ 136 |
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: March 31, 2020 Amortized Gross Gross Allowance for Credit Losses Fair Value Available for sale Corporate bonds $ 107,802 $ 4,592 $ 298 $ — $ 112,096 Municipal securities 97,945 5,332 246 — 103,031 Mortgage-backed securities 313,077 19,020 — — 332,097 Collateralized mortgage obligations 450,490 18,700 300 — 468,890 Asset-backed securities 64,927 3,921 — — 68,848 $ 1,034,241 $ 51,565 $ 844 $ — $ 1,084,962 March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Allowance for Credit Losses Held to maturity Mortgage-backed securities $ 8,589 $ 783 $ — $ 9,372 $ — Collateralized mortgage obligations 1,784 152 — 1,936 — Municipal securities 22,469 1,736 — 24,205 — $ 32,842 $ 2,671 $ — $ 35,513 $ — The Company did not transfer any securities from available for sale to held to maturity at fair value during the three months ended March 31, 2020. December 31, 2019 Amortized Gross Gross 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 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | The following tables disclose the Company’s available for sale debt securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous loss position: March 31, 2020 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Available for sale Corporate bonds $ 14,134 $ 298 $ — $ — $ 14,134 $ 298 Municipal securities 17,120 246 — — 17,120 246 Mortgage-backed securities 24,425 300 — — 24,425 300 $ 55,679 $ 844 $ — $ — $ 55,679 $ 844 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 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity | The amortized costs and estimated fair values of securities available for sale, by contractual maturity, as of the dates indicated, are shown in the table below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities typically are issued with stated principal amounts, and the securities are backed by pools of mortgage loans and other loans that have varying maturities. The terms of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities thus approximates the terms of the underlying mortgages and loans and can vary significantly due to prepayments. Therefore, these securities are not included in the maturity categories below. . March 31, 2020 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,912 5,042 — — Due from five years to ten years 105,390 109,583 2,833 2,974 Due after ten years 95,445 100,502 19,636 21,231 205,747 215,127 22,469 24,205 Mortgage-backed securities and collateralized mortgage obligations 763,567 800,987 10,373 11,308 Asset-backed securities 64,927 68,848 — — $ 1,034,241 $ 1,084,962 $ 32,842 $ 35,513 December 31, 2019 Available for Sale Held to Maturity Amortized Fair Amortized Fair Due in one year or less $ — $ — $ — $ — Due from one year to five years 4,904 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 |
Schedule of Proceeds From Sales of Investment Securities Available for Sale and Gross Gains and Losses | Proceeds from sales of debt securities available for sale and gross gains and losses for the three months ended March 31, 2020 and 2019 were as follows: Three Months Ended March 31, 2020 2019 Proceeds from sales $ — $ 108,865 Gross realized gains — 1 Gross realized losses — 772 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of Loans in the Accompanying Consolidated Balance Sheets | Loans held for investment in the accompanying condensed consolidated balance sheets are summarized as follows: March 31, 2020 December 31, 2019 Loans held for investment: Real estate: Construction and land $ 566,470 $ 629,374 Farmland 14,930 16,939 1 - 4 family residential 536,892 549,811 Multi-family residential 388,374 320,041 OOCRE 723,839 706,782 NOOCRE 1,828,386 1,784,201 Commercial 1,777,603 1,712,838 Mortgage warehouse 371,161 183,628 Consumer 15,771 17,457 6,223,426 5,921,071 Deferred loan costs, net 1,470 134 Allowance for credit losses (100,983) (29,834) Total loans held for investment $ 6,123,913 $ 5,891,371 December 31, 2019 Carrying amount $ 126,125 Outstanding balance 157,417 Changes in the accretable yield for PCI loans for the three months ended March 31, 2019 are included in table below. Three Months Ended March 31, 2019 Balance at beginning of period $ 18,747 Additions 18,073 Reclassifications (to) from nonaccretable (413) Accretion (2,545) Balance at end of period $ 33,862 |
Schedule of Activity in Allowance for Credit Loss | The activity in the ACL related to loans held for investment is as follows: Three Months Ended March 31, 2020 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 3,822 $ 61 $ 1,378 $ 1,965 $ 1,978 $ 8,139 $ 12,369 $ 122 $ 29,834 Impact of adopting ASC 326 non-PCD loans (707) 4 3,716 628 3,406 5,138 7,025 217 19,427 Impact of adoption ASC 326 PCD loans 645 — 908 — 7,682 2,037 8,335 103 19,710 Credit loss expense non-PCD loans 2,965 (7) 2,488 2,306 918 9,955 10,226 (15) 28,836 Credit loss expense PCD loans 113 — (173) — 2,477 412 126 (15) 2,940 Charge-offs — — — — — — — (68) (68) Recoveries — — 1 — — — 29 274 304 Ending Balance $ 6,838 0 $ 58 $ 8,318 $ 4,899 $ 16,461 $ 25,681 $ 38,110 $ 618 $ 100,983 Three Months Ended March 31, 2019 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 2,188 $ 56 $ 1,614 $ 361 $ 1,393 $ 5,070 $ 8,554 $ 19 $ 19,255 Credit Loss Expense 501 6 (5) (80) 124 626 3,785 55 5,012 Charge-offs — — — — — — (2,654) (74) (2,728) Recoveries — — 8 — — — 10 46 64 Ending Balance $ 2,689 $ 62 $ 1,617 $ 281 $ 1,517 $ 5,696 $ 9,695 $ 46 $ 21,603 The following table presents loans individually and collectively evaluated for impairment, as well as PCD loans, and their respective allowance for credit loss allocations as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of ASU 2016-13: December 31, 2019 Real Estate Construction, Residential Commercial Real Estate Commercial 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 PCD 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 ACL Allocations Loans individually evaluated for impairment $ 128 $ 37 $ 395 $ 1,042 $ — $ 1,602 Loans collectively evaluated for impairment 3,755 3,306 9,702 10,754 122 27,639 PCD loans — — 20 573 — 593 Total $ 3,883 $ 3,343 $ 10,117 $ 12,369 $ 122 $ 29,834 |
Schedule of Amortized Cost Basis of Collateral Dependent Loans | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to these loans as of March 31, 2020: Business Assets 1 Real Property 1 ACL Allocation Real estate: Construction and land $ 785 $ — $ 93 1 - 4 family residential — 594 13 OOCRE — 3,927 — NOOCRE — 18,904 — Commercial 13,647 — 5,815 Consumer 56 — — Total $ 14,488 $ 23,425 $ 5,921 1 Loans reported exclude PCD loans that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion. |
Summary of Impaired Loans | The following table presents information on impaired loans as of December 31, 2019, as determined in accordance with ASC 310 prior to the Company’s adoption of ASU 2016-13: 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 Consumer 61 61 — 61 — 62 Total $ 27,616 $ 23,112 $ 4,504 $ 27,616 $ 1,602 $ 33,088 (1) Loans reported exclude PCI loans. |
Schedule of Non-Accrual Loans | Non-accrual loans aggregated by class of loans, as of March 31, 2020 and December 31, 2019, were as follows: March 31, 2020 December 31, 2019 Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Real estate: Construction and land $ 785 $ — $ 567 $ — Farmland — — — — 1 - 4 family residential 912 912 1,581 1,581 Multi-family residential — — — — OOCRE 3,794 3,794 3,029 2,778 NOOCRE 18,876 18,876 18,876 18,876 Commercial 14,395 2,852 5,672 2,747 Mortgage warehouse — — — — Consumer 74 74 54 54 Total $ 38,836 $ 26,508 $ 29,779 $ 26,036 |
Schedule of Age Analysis of Past Due Loans, Aggregated by Class of Loans | An age analysis of past due loans, aggregated by class of loans, as of March 31, 2020 and December 31, 2019, is as follows: March 31, 2020 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCD Total Total 90 Days Past Due and Still Accruing (1) Real estate: Construction and land $ 327 $ 1,322 $ — $ 1,649 $ 559,216 $ 5,605 $ 566,470 $ — Farmland — — — — 14,930 — 14,930 — 1 - 4 family residential 4,400 62 210 4,672 527,410 4,810 536,892 210 Multi-family residential — — — — 388,374 — 388,374 — OOCRE 1,471 1 1,992 3,464 720,375 63,182 723,839 1,992 NOOCRE 3,773 — — 3,773 1,771,909 52,704 1,828,386 — Commercial 16,433 1,295 2,545 20,273 1,727,278 30,052 1,777,603 2,545 Mortgage warehouse — — — — 371,161 — 371,161 — Consumer 135 4 17 156 15,386 229 15,771 17 Total $ 26,539 $ 2,684 $ 4,764 $ 33,987 $ 6,096,039 $ 156,582 $ 6,223,426 $ 4,764 (1) Loans 90 days past due and still accruing excludes $68,325 of PCD loans as of March 31, 2020 that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion. December 31, 2019 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due Total Current PCD 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 Total $ 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 PCD loans as of December 31, 2019. |
Schedule of Loans Modified as TDRs | The following table presents the pre- and post-modification amortized cost of loan modified as TDRs during the three months ended March 31, 2020. There were no new TDRs during the three months ended March 31, 2019. The Company did not grant principal reductions or interest rate concessions on any TDRs. Extended Amortization Period Payment Deferrals Total Modifications Number of Loans Commercial $ — $ 970 $ 970 1 Total $ — $ 970 $ 970 $ 1 |
Summary of Internal Ratings of Loans, Including Purchased Credit Impaired Loans | The Company considers the guidance in ASC 310-20 when determining whether a modification, extension or renewal of a loan constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for purposes of the table below. Based on the most recent analysis performed, the risk category of loans by class of loans based on year or origination is as follows: Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of March 31, 2020 Construction and land: Pass $ 10,095 $ 183,309 $ 245,362 $ 37,572 $ 13,121 $ 22,578 $ 42,786 $ — $ 554,823 Special mention — — — — — 3,935 — — 3,935 Substandard — — 855 785 467 — — — 2,107 PCD — — 476 995 938 3,196 — — 5,605 Total construction and land $ 10,095 $ 183,309 $ 246,693 $ 39,352 $ 14,526 $ 29,709 $ 42,786 $ — $ 566,470 Farmland: Pass $ 290 $ 1,004 $ 3,367 $ 4,415 $ — $ 4,470 $ 1,384 $ — $ 14,930 Total farmland $ 290 $ 1,004 $ 3,367 $ 4,415 $ — $ 4,470 $ 1,384 $ — $ 14,930 1 - 4 family residential: Pass $ 16,974 $ 95,380 $ 118,905 $ 75,229 $ 41,458 $ 148,332 $ 29,490 $ 3,056 $ 528,824 Special mention — — 155 119 — 552 — — 826 Substandard — — — 103 629 1,700 — — 2,432 PCD — — — — — 4,810 — — 4,810 Total 1 - 4 family residential $ 16,974 $ 95,380 $ 119,060 $ 75,451 $ 42,087 $ 155,394 $ 29,490 $ 3,056 $ 536,892 Multi-family residential: Pass $ — $ 113,249 $ 172,526 $ 32,779 $ 43,606 $ 8,931 $ 219 $ — $ 371,310 Special mention — 17,064 — — — — — — 17,064 Total multi-family residential $ — $ 130,313 $ 172,526 $ 32,779 $ 43,606 $ 8,931 $ 219 $ — $ 388,374 OOCRE: Pass $ 19,057 $ 60,032 $ 108,442 $ 85,128 $ 123,511 $ 226,995 $ 1,632 $ 7,411 $ 632,208 Special mention — — 4,296 92 4,176 4,869 — — 13,433 Substandard — — 1,664 2,692 8,109 2,551 — — 15,016 PCD — — 9,788 — 7,978 45,416 — — 63,182 Total commercial real estate $ 19,057 $ 60,032 $ 124,190 $ 87,912 $ 143,774 $ 279,831 $ 1,632 $ 7,411 $ 723,839 NOOCRE: Pass $ 135,824 $ 311,588 $ 522,931 $ 116,413 $ 231,653 $ 405,536 $ 27,677 $ — $ 1,751,622 Special mention — — — — — 5,184 — — 5,184 Substandard — — — — — 18,876 — — 18,876 PCD — — 18,655 — 6,756 27,293 — — 52,704 Total commercial real estate $ 135,824 $ 311,588 $ 541,586 $ 116,413 $ 238,409 $ 456,889 $ 27,677 $ — $ 1,828,386 Commercial: Pass $ 62,944 $ 208,011 $ 201,677 $ 115,757 $ 31,351 $ 47,577 $ 1,024,341 $ 18,252 $ 1,709,910 Special mention 67 1,440 9,924 233 174 1,852 — 5,961 19,651 Substandard — — 3,729 3,883 7,347 2,839 — 192 17,990 PCD — — — 5,040 3,689 21,323 — — 30,052 Total commercial $ 63,011 $ 209,451 $ 215,330 $ 124,913 $ 42,561 $ 73,591 $ 1,024,341 $ 24,405 $ 1,777,603 Mortgage warehouse: Pass $ — $ — $ — $ — $ — $ — $ 371,161 $ — $ 371,161 Total mortgage warehouse $ — $ — $ — $ — $ — $ — $ 371,161 $ — $ 371,161 Consumer: Pass $ 1,986 $ 2,079 $ 1,620 $ 4,896 $ 952 $ 733 $ 3,136 $ — $ 15,402 Substandard — — — 18 — 122 — — 140 PCD — — — 41 — 188 — — 229 Total consumer $ 1,986 $ 2,079 $ 1,620 $ 4,955 $ 952 $ 1,043 $ 3,136 $ — $ 15,771 Total Pass $ 247,170 $ 974,652 $ 1,374,830 $ 472,189 $ 485,652 $ 865,152 $ 1,501,826 $ 28,719 $ 5,950,190 Total Special Mention 67 18,504 14,375 444 4,350 16,392 — 5,961 60,093 Total Substandard — — 6,248 7,481 16,552 26,088 — 192 56,561 Total PCD — — 28,919 6,076 19,361 102,226 — — 156,582 Total $ 247,237 $ 993,156 $ 1,424,372 $ 486,190 $ 525,915 $ 1,009,858 $ 1,501,826 $ 34,872 $ 6,223,426 The following table summarizes the Company’s internal ratings of its loans, including PCD loans, as of December 31, 2019: December 31, 2019 Pass Special Substandard Doubtful PCD 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 — 129,000 17,457 Total $ 5,640,781 $ 80,293 $ 73,279 $ — $ 126,718 $ 5,921,071 |
Schedule of Summary of Changes in Servicing Assets | A summary of the changes in the related servicing assets are as follows: Three Months Ended March 31, 2020 2019 Balance at beginning of period $ 3,113 $ 1,304 Servicing asset acquired through acquisition — 2,382 Increase from loan sales 109 461 Amortization charged to income (232) (175) Balance at end of period $ 2,990 $ 3,972 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: March 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Available for sale securities $ — $ 1,084,962 $ — $ 1,084,962 Equity securities with a readily determinable fair value 15,373 — — 15,373 Loans held for sale (1) — 15,048 — 15,048 Interest rate swaps designated as hedging instruments — — — — Customer interest rate swaps not designated as hedging instruments — 14,654 — 14,654 Correspondent interest rate caps and collars not designated as hedging instruments — 7 — 7 Financial Liabilities: Interest rate swaps designated as hedging instruments — 1,903 — 1,903 Correspondent interest rate swaps not designated as hedging instruments — 15,743 — 15,743 Customer interest rate caps and collars not designated as hedging instruments — 7 — 7 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2019 Level 1 Level 2 Level 3 Total 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. |
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 March 31, 2020 and December 31, 2019, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Level 1 Level 2 Level 3 Total As of March 31, 2020 Assets: Collateral dependent loans $ — $ — $ 12,370 $ 12,370 Other real estate owned — — 7,720 7,720 As of December 31, 2019 Assets: Impaired loans — — 4,504 4,504 Other real estate owned — — 5,995 5,995 |
Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments | The estimated fair values and carrying values of all financial instruments under current authoritative guidance as of March 31, 2020 and December 31, 2019 were as follows: Fair Value Carrying Level 1 Level 2 Level 3 March 31, 2020 Financial assets: Cash and cash equivalents $ 430,842 $ — $ 430,842 $ — Held to maturity investments 32,842 — 35,512 — Loans held for sale 15,048 — 15,048 — Loans held for investment, mortgage warehouse 371,161 — — 373,759 Loans held for investment 5,853,735 — — 5,799,072 Accrued interest receivable 22,059 — 22,059 — Bank-owned life insurance 81,395 — 81,395 — Servicing asset 2,991 — 2,991 — 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 92,809 N/A N/A N/A Financial liabilities: Deposits $ 5,799,945 $ — $ 5,783,125 $ — Advances from FHLB 1,377,832 — 1,129,409 — Accrued interest payable 7,881 — 7,881 — Subordinated debentures and subordinated notes 140,406 — 140,406 — Securities sold under agreement to repurchase 2,426 — 2,426 — 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 — Other borrowings 2,353 — 2,353 — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Balance Sheet | The notional amounts and estimated fair values as of March 31, 2020 and December 31, 2019 are as shown in the table below. March 31, 2020 December 31, 2019 Estimated Fair Value Estimated Fair Value Notional Derivative Assets Derivative Liabilities Notional Derivative Assets Derivative Liabilities Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ 500,000 $ 4,613 $ — $ — $ — $ — Interest rate swap on money market deposit account payments 250,000 — 1,903 — — — Commercial loan interest rate floor — — — 275,000 3,353 — Total derivatives designated as hedging instruments 750,000 4,613 1,903 275,000 3,353 $ — Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps 272,636 — 15,743 222,394 105 4,736 Interest rate caps and collars 72,894 7 — 90,093 11 — Commercial customer counterparty: Interest rate swaps 272,636 14,654 — 222,394 4,393 84 Interest rate caps and collars 72,894 — 7 90,093 — 11 Total derivatives not designated as hedging instruments 691,060 14,661 15,750 624,974 4,509 4,831 Offsetting derivative assets/liabilities 4,620 4,620 (2,895) (2,895) Total derivatives $ 1,441,060 $ 23,894 $ 22,273 $ 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 three months ended March 31, 2020 was as follows. We had no cash flow hedges for the three months ended March 31, 2019. For the Three Months Ended For the Three Months Ended Net Gain recognized in other comprehensive income on derivative Gain reclassified from accumulated other comprehensive income into interest income Gain recognized in other noninterest income Net Gain recognized in other comprehensive income on derivative Gain reclassified from accumulated other comprehensive income into interest income Gain recognized in other noninterest income Derivatives designated as hedging instruments (cash flow hedges): Interest rate floor $ 1,022 $ 284 $ — $ — $ — $ — Interest rate swaps 2,710 — — — — — Total $ 3,732 $ 284 $ — $ — $ — $ — Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ — $ — $ 501 $ — $ — $ 250 |
Schedule of Derivative Instruments Outstanding | The following is a summary of the interest rate swaps, caps and collars outstanding as of March 31, 2020 and December 31, 2019. March 31, 2020 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 272,636 3.140 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ (15,743) Interest rate caps and collars $ 72,894 2.500% / 3.100% LIBOR 1 month + 0% Wtd. Avg. $ 7 Correspondent interest rate derivatives: Interest rate swaps - pay fixed/receive floating $ 272,636 3.140 - 8.470% LIBOR 1 month + 0% - 5.00% Wtd. Avg. $ 14,654 Interest rate caps and collars $ 72,894 3.000% / 5.000% LIBOR 1 month + 0% - 2.50% Wtd. Avg. $ (7) December 31, 2019 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivatives: Interest rate swaps - receive fixed/pay floating $ 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% / 5.800% LIBOR 1 month + 0% - 3.75% Wtd. Avg. $ 11 Correspondent interest rate derivatives: 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) |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019: March 31, December 31, 2020 2019 Commitments to extend credit $ 1,607,683 $ 1,950,350 Standby and commercial letters of credit 34,529 27,196 Total $ 1,642,212 $ 1,977,546 |
Schedule of Allowance for Unfunded Commitments | This allowance is recorded in accounts payable and other liabilities on the condensed consolidated balance sheets: March 31, December 31, 2020 2019 Beginning balance for allowance for unfunded commitments $ 878 $ 878 Impact of CECL adoption 840 — Provision for unfunded commitments 3,881 — Ending balance of allowance for unfunded commitments $ 5,599 $ 878 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of option activity under the 2010 Incentive Plan for the three months ended March 31, 2020 and 2019, and changes during the periods then ended, is presented below: 2010 Incentive Plan Non-Performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 275,000 $ 10.12 2.39 years Exercised (15,000) 10.28 Outstanding and exercisable at March 31, 2019 260,000 $ 10.12 2.11 years Outstanding at January 1, 2020 257,500 $ 10.28 1.37 years $ 4,971 Exercised (202,500) 10.14 3,691 Outstanding and exercisable at March 31, 2020 55,000 $ 10.77 2.02 years $ 232 A summary of the status of the Company’s stock options under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Non-performance Based Stock Options Equity Awards Liability Awards Shares Weighted Weighted Aggregate Intrinsic Value Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 449,520 $ 24.47 8.24 years — $ — Granted 75,928 21.38 253,633 21.38 Forfeited (4,445) 21.38 — — Exercised (11,848) 15.37 — — Outstanding at March 31, 2019 509,155 $ 23.28 8.28 years 253,633 $ 21.38 9.76 years Options exercisable at March 31, 2019 437,672 $ 24.71 8.04 years — $ — Outstanding at January 1, 2020 849,768 $ 23.61 8.24 years $ 4,687 — $ — Granted 144,025 29.13 — — Forfeited (21,891) 28.17 — — Exercised (33,439) 19.19 — — Outstanding at March 31, 2020 938,463 $ 24.51 8.28 years $ — — $ — $ — Options exercisable at March 31, 2020 469,983 $ 24.15 7.50 years $ — — $ — Weighted average fair value of options granted during the period $ 29.13 $ — A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Exercised (28,033) 12.89 Outstanding at March 31, 2019 488,538 $ 23.28 8.35 years Options exercisable at March 31, 2019 276,745 $ 15.67 7.27 years Outstanding at January 1, 2020 386,969 $ 19.30 7.86 years Granted 31,075 29.13 Forfeited (23,736) 21.38 Exercised (32,526) 19.81 Outstanding at March 31, 2020 361,782 $ 19.97 7.77 years $ — Options exercisable at March 31, 2020 214,342 $ 17.87 6.94 years $ — Weighted average fair value of options granted during the period $ 29.13 |
Schedule of Fair Value of Stock Options Exercised or Restricted Stock Units Vested | A summary of the fair value of the Company’s stock options exercised under the 2010 Incentive Plan for the three months ended March 31, 2020 and 2019 is presented below: Fair Value of Options Exercised as of March 31, 2020 2019 Non-performance based stock options exercised 5,745 390 Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31, 2020 2019 Non-performance-based stock options exercised 943 315 Non-performance-based RSUs vested 116 1,096 Performance-based RSUs vested 18 4,346 Fair Value of Options Exercised or RSUs Vested in the Three Months Ended March 31, 2020 2019 Non-performance-based stock options exercised $ 950 $ 558 Non-performance-based RSUs vested 142 — |
Schedule of Vesting Percentages | Below is a table showing the range of vesting percentages for the performance-based RSUs based on the Company’s TSR percentile rank. Vesting % Below the 24.9 th percentile of Peer Group TSR —% Within the 25 th to 49.9 th percentile of Peer Group TSR 50% Within the 50 th the 74.9 th percentile of Peer Group TSR 100% At or above the 75 th percentile of Peer Group TSR 150% |
Schedule of Assumptions Used to Measure Fair Value of Each Option Award Estimated On Grant Date Using Black-Scholes Option-Pricing Model | 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 three months ended March 31, 2020: Three Months Ended March 31, 2020 Dividend yield 2.33% to 2.40% Expected life 5.0 to 6.5 years Expected volatility 27.49% to 28.78% Risk-free interest rate 1.65% to 1.76% |
Summary of Status of the Company's Restricted Shares or Restricted Stock Units | A summary of the status of the Company’s non-performance-based RSUs under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Non-performance-Based RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at January 1, 2019 133,455 $ 19.67 — $ — Granted 66,327 21.38 165,739 21.38 Vested into shares (196,171) 23.41 — — Outstanding at March 31, 2019 3,611 $ 21.81 165,739 $ 21.38 Outstanding at January 1, 2020 175,688 $ 21.65 — $ — Granted 95,885 29.10 — — Vested into shares (46,926) 28.99 — — Outstanding at March 31, 2020 224,647 $ 24.97 — $ — A summary of the status of the Company’s performance-based RSUs under the 2019 Amended Plan as of March 31, 2020 and 2019, and changes during the three months then ended, is as follows: 2019 Amended Plan Performance-Based RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at January 1, 2019 63,988 $ 21.28 — $ — Granted 29,282 21.38 32,249 21.38 Vested into shares (51,284) 25.31 — — Forfeited (14,418) 26.85 — — Outstanding at March 31, 2019 27,568 $ 23.11 32,249 $ 21.38 Outstanding at January 1, 2020 63,727 $ 22.76 — $ — Granted 39,398 29.13 — — Vested into shares (1,841) 26.65 — — Outstanding at March 31, 2020 101,284 $ 25.22 — $ — A summary of the status of the Company’s non-performance-based RSUs under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019 and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Non-performance-Based RSUs Units Weighted Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at March 31, 2019 116,250 $ 21.38 Outstanding at January 1, 2020 116,250 $ 21.38 Granted 33,918 29.13 Vested into shares (38,744) 29.13 Forfeited (3,492) 29.13 Outstanding at March 31, 2020 107,932 $ 24.45 A summary of the status of the Company’s performance-based RSUs under the Veritex (Green) 2014 Plan as of March 31, 2020 and 2019 and changes during the three months then ended, is as follows: Veritex (Green) 2014 Plan Performance-Based RSUs Units Weighted Outstanding at January 1, 2019 — $ — Granted 26,145 $ 21.38 Outstanding at March 31, 2019 26,145 $ 21.38 Outstanding at January 1, 2020 25,320 $ 21.38 Granted 8,531 29.13 Outstanding at March 31, 2020 33,851 $ 23.33 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three months ended March 31, 2020 and 2019 was as follows: Three Months Ended March 31, 2020 2019 Income tax expense (benefit) for the period $ (684) $ 1,989 Effective tax rate (19.8) % 21.2 % |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 Total capital (to risk-weighted assets) Company $ 918,866 12.48 % $ 589,017 8.0 % n/a n/a Bank 912,112 12.37 % 589,887 8.0 % $ 737,358 10.0 % Tier 1 capital (to risk-weighted assets) Company 730,461 9.92 % 441,811 6.0 % n/a n/a Bank 834,035 11.31 % 442,459 6.0 % 589,945 8.0 % Common equity tier 1 to risk-weighted assets Company 701,401 9.53 % 331,197 4.5 % n/a n/a Bank 834,035 11.31 % 331,844 4.5 % 479,330 6.5 % Tier 1 capital (to average assets) Company 730,461 9.49 % 307,887 4.0 % n/a n/a Bank 834,035 10.83 % 308,046 4.0 % 385,058 5.0 % 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 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Jan. 01, 2020USD ($) | Mar. 31, 2020USD ($)modification | Mar. 31, 2020USD ($)branchsegmentmodificationmortgage_officeshares | Mar. 31, 2019shares |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Excluded from diluted EPS weighted average shares (in shares) | shares | 1,341 | 0 | ||
Number of loan modifications | modification | 85 | 85 | ||
Amount qualified for temporary suspension of TDR requirements under CARES act | $ 57,807 | |||
Goodwill, impairment loss | $ 0 | |||
Dallas-Fort Worth | ||||
Segment Reporting Information [Line Items] | ||||
Number of branches | branch | 25 | |||
Number of mortgage offices | mortgage_office | 1 | |||
Houston | ||||
Segment Reporting Information [Line Items] | ||||
Number of branches | branch | 12 | |||
Louisville, Kentucky | ||||
Segment Reporting Information [Line Items] | ||||
Number of branches | branch | 1 | |||
Accounting Standards Update 2016-13 | ||||
Segment Reporting Information [Line Items] | ||||
Decrease to retained earnings | $ 15,505 | |||
Impact of adoption ASC 326 PCD loans | 19,710 | |||
Accounting Standards Update 2016-13 | Retained Earnings | ||||
Segment Reporting Information [Line Items] | ||||
Decrease to retained earnings | $ 15,505 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings (numerator) | ||
Net income | $ 4,134 | $ 7,407 |
Shares (denominator) | ||
Weighted average shares outstanding for basic EPS (in shares) | 50,725 | 54,293 |
Dilutive effect of employee stock based awards (in shares) | 331 | 1,146 |
Adjusted weighted average shares outstanding (in shares) | 51,056 | 55,439 |
EPS: | ||
Basic (in dollars per share) | $ 0.08 | $ 0.14 |
Diluted (in dollars per share) | $ 0.08 | $ 0.13 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Impact of ASC 326 (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on debt securities held-to-maturity | $ 0 | $ 0 | |||
Allowance for credit losses on loans | 100,983 | 29,834 | $ 29,834 | $ 21,603 | $ 19,255 |
Allowance for credit losses on OBS credit exposures | 878 | ||||
Real Estate | Construction and land | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 6,838 | 3,822 | 2,689 | 2,188 | |
Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 58 | 61 | 62 | 56 | |
Real Estate | Residential Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 3,343 | ||||
Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 8,318 | 1,378 | 1,617 | 1,614 | |
Real Estate | Residential Real Estate | Multi-family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 4,899 | 1,965 | 281 | 361 | |
Real Estate | Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 10,117 | ||||
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 16,461 | 1,978 | 1,517 | 1,393 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 25,681 | 8,139 | 5,696 | 5,070 | |
Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 38,110 | 12,369 | 9,695 | 8,554 | |
Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | $ 618 | 122 | 122 | $ 46 | $ 19 |
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on debt securities held-to-maturity | 0 | ||||
Allowance for credit losses on loans | 68,971 | ||||
Allowance for credit losses on OBS credit exposures | 1,718 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Construction and land | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 3,760 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 65 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 6,002 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Residential Real Estate | Multi-family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 2,593 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 13,066 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 15,314 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 27,729 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 442 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on debt securities held-to-maturity | 0 | ||||
Allowance for credit losses on loans | 39,137 | 19,427 | |||
Allowance for credit losses on OBS credit exposures | 840 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Construction and land | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | (62) | (707) | |||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 4 | 4 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 4,624 | 3,716 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Residential Real Estate | Multi-family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 628 | 628 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 11,088 | 3,406 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 7,175 | 5,138 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | 15,360 | 7,025 | |||
Cumulative Effect, Period Of Adoption, Adjustment | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans | $ 320 | $ 217 |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Disclosures of Cash Flow Information: | ||
Cash paid for interest | $ 18,489 | $ 14,975 |
Cash paid for income taxes | 2,330 | 0 |
Supplemental Disclosures of Non-Cash Flow Information: | ||
Setup of ROU asset and lease liability upon adoption of ASC 842 | 0 | 9,380 |
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid in capital | 0 | 788 |
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 | 0 | (48) |
Net foreclosure of other real estate owned and repossessed assets | 1,725 | 0 |
Non-cash assets acquired in business combination | ||
Investment securities | 0 | 661,032 |
Non-marketable equity securities | 0 | 40,287 |
Loans held for sale | 0 | 9,360 |
Loans held for investment | 0 | 3,245,492 |
Accrued interest receivable | 0 | 11,673 |
Bank-owned life insurance | 0 | 56,841 |
Bank premises, furniture and equipment | 0 | 39,426 |
Investment in trusts | 0 | 666 |
Intangible assets, net | 0 | 65,718 |
Goodwill | 0 | 206,821 |
Other assets | 0 | 12,245 |
Right of use asset | 0 | 9,373 |
Deferred taxes | 0 | 11,535 |
Current taxes | 0 | 1,799 |
Assets held for sale | 0 | 85,307 |
Total assets | 0 | 4,457,575 |
Non-cash liabilities assumed in business combination | ||
Non-interest-bearing deposits | 0 | 825,364 |
Interest-bearing deposits | 0 | 1,300,825 |
Certificates and other time deposits | 0 | 1,346,915 |
Accounts payable and accrued expenses | 0 | 26,587 |
Lease liability | 0 | 9,373 |
Accrued interest payable and other liabilities | 0 | 5,181 |
Securities sold under agreements to repurchase | 0 | 3,226 |
Advances from Federal Home Loan Bank | 0 | 300,000 |
Subordinated debentures and subordinated notes | 0 | 56,233 |
Liabilities held for sale | 0 | 52,682 |
Total liabilities | $ 0 | $ 3,926,386 |
Share Transactions - (Details)
Share Transactions - (Details) - Common Stock - USD ($) | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 12, 2019 | Sep. 03, 2019 | Jan. 28, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock buyback 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) | 2,002,211 | 316,600 | |||
Average price (in dollars per share) | $ 24.78 | $ 24.42 |
Securities - Equity Securities
Securities - Equity Securities (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities | $ 15,373,000 | $ 11,122,000 | |
Realized gain (loss) on equity securities | 0 | $ 0 | |
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value | (249,000) | $ 136,000 | |
Equity securities without a readily determinable fair value | $ 3,575,000 | $ 3,575,000 |
Securities - Carrying Amount an
Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Available for sale | |||
Amortized Cost | $ 1,034,241 | $ 942,131 | |
Gross Unrealized Gains | 51,565 | 23,997 | |
Gross Unrealized Losses | 844 | 1,763 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 1,084,962 | 964,365 | |
Held to maturity | |||
Amortized Cost | 32,842 | 32,965 | |
Gross Unrealized Gains | 2,671 | 1,845 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 35,513 | 34,810 | |
Allowance for Credit Losses | 0 | $ 0 | |
Corporate bonds | |||
Available for sale | |||
Amortized Cost | 107,802 | 76,997 | |
Gross Unrealized Gains | 4,592 | 1,974 | |
Gross Unrealized Losses | 298 | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 112,096 | 78,971 | |
Municipal securities | |||
Available for sale | |||
Amortized Cost | 97,945 | 74,956 | |
Gross Unrealized Gains | 5,332 | 3,724 | |
Gross Unrealized Losses | 246 | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 103,031 | 78,680 | |
Held to maturity | |||
Amortized Cost | 22,469 | 22,535 | |
Gross Unrealized Gains | 1,736 | 1,350 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 24,205 | 23,885 | |
Allowance for Credit Losses | 0 | ||
Mortgage-backed securities | |||
Available for sale | |||
Amortized Cost | 313,077 | 288,938 | |
Gross Unrealized Gains | 19,020 | 9,512 | |
Gross Unrealized Losses | 0 | 260 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 332,097 | 298,190 | |
Held to maturity | |||
Amortized Cost | 8,589 | 8,621 | |
Gross Unrealized Gains | 783 | 452 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 9,372 | 9,073 | |
Allowance for Credit Losses | 0 | ||
Collateralized mortgage obligations | |||
Available for sale | |||
Amortized Cost | 450,490 | 431,276 | |
Gross Unrealized Gains | 18,700 | 6,465 | |
Gross Unrealized Losses | 300 | 1,503 | |
Allowance for Credit Losses | 0 | ||
Fair Value | 468,890 | 436,238 | |
Held to maturity | |||
Amortized Cost | 1,784 | 1,809 | |
Gross Unrealized Gains | 152 | 43 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 1,936 | 1,852 | |
Allowance for Credit Losses | 0 | ||
Asset-backed securities | |||
Available for sale | |||
Amortized Cost | 64,927 | 69,964 | |
Gross Unrealized Gains | 3,921 | 2,322 | |
Gross Unrealized Losses | 0 | 0 | |
Allowance for Credit Losses | 0 | ||
Fair Value | $ 68,848 | $ 72,286 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Position (Details) $ in Thousands | Mar. 31, 2020USD ($)investment | Dec. 31, 2019USD ($)investment |
Available-for-Sale Fair Value | ||
Less Than 12 Months | $ 55,679 | $ 139,100 |
12 Months or More | 0 | 0 |
Totals | 55,679 | 139,100 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 844 | 1,763 |
12 Months or More | 0 | 0 |
Totals | $ 844 | $ 1,763 |
Number of investment positions in an unrealized loss position (investments) | investment | 10 | 11 |
Corporate bonds | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | $ 14,134 | |
12 Months or More | 0 | |
Totals | 14,134 | |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 298 | |
12 Months or More | 0 | |
Totals | 298 | |
Municipal securities | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 17,120 | $ 468 |
12 Months or More | 0 | 0 |
Totals | 17,120 | 468 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 246 | 1 |
12 Months or More | 0 | 0 |
Totals | 246 | 1 |
Mortgage-backed securities | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 24,425 | 28,883 |
12 Months or More | 0 | 0 |
Totals | 24,425 | 28,883 |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 300 | 370 |
12 Months or More | 0 | 0 |
Totals | $ 300 | 370 |
Collateralized mortgage obligations | ||
Available-for-Sale Fair Value | ||
Less Than 12 Months | 109,749 | |
12 Months or More | 0 | |
Totals | 109,749 | |
Available-for-Sale Unrealized Loss | ||
Less Than 12 Months | 1,392 | |
12 Months or More | 0 | |
Totals | $ 1,392 |
Securities - Maturities (Detail
Securities - Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available For Sale Amortized Cost | ||
Due in one year or less | $ 0 | $ 0 |
Due from one year to five years | 4,912 | 4,904 |
Due from five years to ten years | 105,390 | 74,596 |
Due after ten years | 95,445 | 72,453 |
Total investment securities available for sale, single maturity date | 205,747 | 151,953 |
Amortized Cost | 1,034,241 | 942,131 |
Available For Sale Fair value | ||
Due in one year or less | 0 | 0 |
Due from one year to five years | 5,042 | 5,100 |
Due from five years to ten years | 109,583 | 76,403 |
Due after ten years | 100,502 | 76,148 |
Total investment securities available for sale | 215,127 | 157,651 |
Fair Value | 1,084,962 | 964,365 |
Held-to-Maturity Amortized Cost | ||
Due in one year or less | 0 | 0 |
Due from one year to five years | 0 | 0 |
Due from five years to ten years | 2,833 | 1,204 |
Due after ten years | 19,636 | 21,331 |
Total investment securities held to maturity, single maturity date | 22,469 | 22,535 |
Amortized Cost | 32,842 | 32,965 |
Held-to-Maturity Fair Value | ||
Due in one year or less | 0 | 0 |
Due from one year to five years | 0 | 0 |
Due from five years to ten years | 2,974 | 1,219 |
Due after ten years | 21,231 | 22,666 |
Total investment securities held to maturity | 24,205 | 23,885 |
Fair value | 35,513 | 34,810 |
Mortgage-backed securities and collateralized mortgage obligations | ||
Available For Sale Amortized Cost | ||
Amortized cost | 763,567 | 720,214 |
Amortized Cost | 313,077 | 288,938 |
Available For Sale Fair value | ||
Fair value | 800,987 | 734,428 |
Fair Value | 332,097 | 298,190 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 10,373 | 10,430 |
Amortized Cost | 8,589 | 8,621 |
Held-to-Maturity Fair Value | ||
Fair value | 11,308 | 10,925 |
Fair value | 9,372 | 9,073 |
Asset-backed securities | ||
Available For Sale Amortized Cost | ||
Amortized cost | 64,927 | 69,964 |
Amortized Cost | 64,927 | 69,964 |
Available For Sale Fair value | ||
Fair value | 68,848 | 72,286 |
Fair Value | 68,848 | 72,286 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 0 | 0 |
Held-to-Maturity Fair Value | ||
Fair value | $ 0 | $ 0 |
Securities - Proceeds and Gross
Securities - Proceeds and Gross Gains/Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Proceeds from sales of investment securities available for sale and gross gains and losses | ||
Proceeds from sales | $ 0 | $ 108,865 |
Gross realized gains | 0 | 1 |
Gross realized losses | $ 0 | $ 772 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Balance Sheet Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Allowance for Loan Losses | |||||
Total loans | $ 6,223,426 | $ 5,921,071 | |||
Deferred loan costs, net | 1,470 | 134 | |||
Allowance for credit losses | (100,983) | $ (21,603) | $ (29,834) | (29,834) | $ (19,255) |
Total loans held for investment | 6,123,913 | 5,891,371 | |||
PCI loans acquired | 25,167 | 57,811 | |||
Accretion on non-PCD loans | 3,260 | 4,355 | |||
Accretion on PCD loans | 1,060 | 2,545 | |||
Discount on retained loans from sale | 2,264 | 2,193 | |||
Commercial | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,777,603 | 1,712,838 | |||
Allowance for credit losses | (38,110) | (9,695) | (12,369) | (8,554) | |
Mortgage warehouse | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 371,161 | 183,628 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 15,771 | 17,457 | |||
Allowance for credit losses | (618) | (46) | (122) | (122) | (19) |
Construction and land | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 566,470 | 629,374 | |||
Allowance for credit losses | (6,838) | (2,689) | (3,822) | (2,188) | |
Farmland | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 14,930 | 16,939 | |||
Allowance for credit losses | (58) | (62) | (61) | (56) | |
Residential Real Estate | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 869,852 | ||||
Allowance for credit losses | (3,343) | ||||
Residential Real Estate | 1 - 4 family residential | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 536,892 | 549,811 | |||
Allowance for credit losses | (8,318) | (1,617) | (1,378) | (1,614) | |
Residential Real Estate | Multi-family residential | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 388,374 | 320,041 | |||
Allowance for credit losses | (4,899) | (281) | (1,965) | (361) | |
Commercial Real Estate | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 2,490,983 | ||||
Allowance for credit losses | (10,117) | ||||
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 723,839 | 706,782 | |||
Allowance for credit losses | (16,461) | (1,517) | (1,978) | (1,393) | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | |||||
Loans and Allowance for Loan Losses | |||||
Total loans | 1,828,386 | $ 1,784,201 | |||
Allowance for credit losses | $ (25,681) | $ (5,696) | $ (8,139) | $ (5,070) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Analysis of allowance for loan losses | |||
Balance at beginning of year | $ 29,834 | $ 29,834 | $ 19,255 |
Credit Loss Expense | 31,776 | 5,012 | |
Charge-offs | (68) | (2,728) | |
Recoveries | 304 | 64 | |
Ending Balance | 29,834 | 100,983 | 21,603 |
Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 28,836 | ||
PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 2,940 | ||
Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 19,427 | 19,427 | |
Impact of adoption ASC 326 PCD loans | 19,710 | ||
Ending Balance | 39,137 | ||
Real Estate | Construction and land | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 2,188 | ||
Credit Loss Expense | 501 | ||
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 3,822 | 6,838 | 2,689 |
Real Estate | Construction and land | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 2,965 | ||
Real Estate | Construction and land | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 113 | ||
Real Estate | Construction and land | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | (707) | (707) | |
Impact of adoption ASC 326 PCD loans | 645 | ||
Ending Balance | (62) | ||
Real Estate | Farmland | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 56 | ||
Credit Loss Expense | 6 | ||
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 61 | 58 | 62 |
Real Estate | Farmland | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | (7) | ||
Real Estate | Farmland | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 0 | ||
Real Estate | Farmland | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 4 | 4 | |
Impact of adoption ASC 326 PCD loans | 0 | ||
Ending Balance | 4 | ||
Real Estate | Residential Real Estate | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 3,343 | 3,343 | |
Real Estate | Residential Real Estate | 1 - 4 family residential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 1,614 | ||
Credit Loss Expense | (5) | ||
Charge-offs | 0 | 0 | |
Recoveries | 1 | 8 | |
Ending Balance | 1,378 | 8,318 | 1,617 |
Real Estate | Residential Real Estate | 1 - 4 family residential | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 2,488 | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | (173) | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 3,716 | 3,716 | |
Impact of adoption ASC 326 PCD loans | 908 | ||
Ending Balance | 4,624 | ||
Real Estate | Residential Real Estate | Multi-family residential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 361 | ||
Credit Loss Expense | (80) | ||
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 1,965 | 4,899 | 281 |
Real Estate | Residential Real Estate | Multi-family residential | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 2,306 | ||
Real Estate | Residential Real Estate | Multi-family residential | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 0 | ||
Real Estate | Residential Real Estate | Multi-family residential | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 628 | 628 | |
Impact of adoption ASC 326 PCD loans | 0 | ||
Ending Balance | 628 | ||
Real Estate | Commercial Real Estate | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 10,117 | 10,117 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 1,393 | ||
Credit Loss Expense | 124 | ||
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 1,978 | 16,461 | 1,517 |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 918 | ||
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 2,477 | ||
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 3,406 | 3,406 | |
Impact of adoption ASC 326 PCD loans | 7,682 | ||
Ending Balance | 11,088 | ||
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 5,070 | ||
Credit Loss Expense | 626 | ||
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 8,139 | 25,681 | 5,696 |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 9,955 | ||
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 412 | ||
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 5,138 | 5,138 | |
Impact of adoption ASC 326 PCD loans | 2,037 | ||
Ending Balance | 7,175 | ||
Commercial | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 8,554 | ||
Credit Loss Expense | 3,785 | ||
Charge-offs | 0 | (2,654) | |
Recoveries | 29 | 10 | |
Ending Balance | 12,369 | 38,110 | 9,695 |
Commercial | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 10,226 | ||
Commercial | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | 126 | ||
Commercial | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 7,025 | 7,025 | |
Impact of adoption ASC 326 PCD loans | 8,335 | ||
Ending Balance | 15,360 | ||
Consumer | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 122 | 122 | 19 |
Credit Loss Expense | 55 | ||
Charge-offs | (68) | (74) | |
Recoveries | 274 | 46 | |
Ending Balance | 122 | 618 | $ 46 |
Consumer | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | (15) | ||
Consumer | PCD Loans | |||
Analysis of allowance for loan losses | |||
Credit Loss Expense | (15) | ||
Consumer | Cumulative Effect, Period Of Adoption, Adjustment | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 217 | 217 | |
Impact of adoption ASC 326 PCD loans | $ 103 | ||
Ending Balance | $ 320 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | $ 100,983 | $ 29,834 | $ 29,834 | $ 21,603 | $ 19,255 |
Real Estate | Construction and land | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 6,838 | 3,822 | 2,689 | 2,188 | |
Real Estate | Residential Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 3,343 | ||||
Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 8,318 | 1,378 | 1,617 | 1,614 | |
Real Estate | Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 10,117 | ||||
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 16,461 | 1,978 | 1,517 | 1,393 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 25,681 | 8,139 | 5,696 | 5,070 | |
Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 38,110 | 12,369 | 9,695 | 8,554 | |
Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 618 | $ 122 | $ 122 | $ 46 | $ 19 |
Business Assets | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 14,488 | ||||
Business Assets | Real Estate | Construction and land | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 785 | ||||
Business Assets | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Business Assets | Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Business Assets | Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Business Assets | Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 13,647 | ||||
Business Assets | Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 56 | ||||
Real Property | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 23,425 | ||||
Real Property | Real Estate | Construction and land | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Real Property | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 594 | ||||
Real Property | Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 3,927 | ||||
Real Property | Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 18,904 | ||||
Real Property | Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Real Property | Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Total Loans | 0 | ||||
Collateralized | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 5,921 | ||||
Collateralized | Real Estate | Construction and land | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 93 | ||||
Collateralized | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 13 | ||||
Collateralized | Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 0 | ||||
Collateralized | Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 0 | ||||
Collateralized | Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 5,815 | ||||
Collateralized | Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Loans Evaluated for Impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | $ 27,616 | ||||
Loans collectively evaluated for impairment | 5,766,737 | ||||
PCD loans | $ 6,123,913 | 5,891,371 | |||
Total | 6,223,426 | 5,921,071 | |||
ACL Allocations | |||||
Loans individually evaluated for impairment | 1,602 | ||||
Loans collectively evaluated for impairment | 27,639 | ||||
Loans collectively evaluated for impairment | 593 | ||||
Total | 100,983 | $ 29,834 | 29,834 | $ 21,603 | $ 19,255 |
Commercial | |||||
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | 5,188 | ||||
Loans collectively evaluated for impairment | 1,869,259 | ||||
Total | 1,896,466 | ||||
ACL Allocations | |||||
Loans individually evaluated for impairment | 1,042 | ||||
Loans collectively evaluated for impairment | 10,754 | ||||
Loans collectively evaluated for impairment | 573 | ||||
Total | 12,369 | ||||
Consumer | |||||
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | 61 | ||||
Loans collectively evaluated for impairment | 17,267 | ||||
Total | 15,771 | 17,457 | |||
ACL Allocations | |||||
Loans individually evaluated for impairment | 0 | ||||
Loans collectively evaluated for impairment | 122 | ||||
Loans collectively evaluated for impairment | 0 | ||||
Total | $ 618 | $ 122 | 122 | $ 46 | $ 19 |
Construction, Land and Farmland | Real Estate | |||||
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | 567 | ||||
Loans collectively evaluated for impairment | 641,799 | ||||
Total | 646,313 | ||||
ACL Allocations | |||||
Loans individually evaluated for impairment | 128 | ||||
Loans collectively evaluated for impairment | 3,755 | ||||
Loans collectively evaluated for impairment | 0 | ||||
Total | 3,883 | ||||
Residential Real Estate | Real Estate | |||||
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | 156 | ||||
Loans collectively evaluated for impairment | 865,927 | ||||
Total | 869,852 | ||||
ACL Allocations | |||||
Loans individually evaluated for impairment | 37 | ||||
Loans collectively evaluated for impairment | 3,306 | ||||
Loans collectively evaluated for impairment | 0 | ||||
Total | 3,343 | ||||
Commercial Real Estate | Real Estate | |||||
Allowance, impairment methodology | |||||
Loans individually evaluated for impairment | 21,644 | ||||
Loans collectively evaluated for impairment | 2,372,485 | ||||
Total | 2,490,983 | ||||
ACL Allocations | |||||
Loans individually evaluated for impairment | 395 | ||||
Loans collectively evaluated for impairment | 9,702 | ||||
Loans collectively evaluated for impairment | 20 | ||||
Total | 10,117 | ||||
Acquired Loans with Deteriorated Credit Quality | |||||
Allowance, impairment methodology | |||||
PCD loans | 126,718 | ||||
Acquired Loans with Deteriorated Credit Quality | Commercial | |||||
Allowance, impairment methodology | |||||
PCD loans | 22,019 | ||||
Acquired Loans with Deteriorated Credit Quality | Consumer | |||||
Allowance, impairment methodology | |||||
PCD loans | 129 | ||||
Acquired Loans with Deteriorated Credit Quality | Construction, Land and Farmland | Real Estate | |||||
Allowance, impairment methodology | |||||
PCD loans | 3,947 | ||||
Acquired Loans with Deteriorated Credit Quality | Residential Real Estate | Real Estate | |||||
Allowance, impairment methodology | |||||
PCD loans | 3,769 | ||||
Acquired Loans with Deteriorated Credit Quality | Commercial Real Estate | Real Estate | |||||
Allowance, impairment methodology | |||||
PCD loans | $ 96,854 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Impaired Loans | |
Unpaid Contractual Principal Balance | $ 27,616 |
Recorded Investment with No Allowance | 23,112 |
Recorded Investment with Allowance | 4,504 |
Total Recorded Investment | 27,616 |
Related Allowance | 1,602 |
Average Recorded Investment YTD | 33,088 |
Real Estate | Construction and land | |
Impaired Loans | |
Unpaid Contractual Principal Balance | 567 |
Recorded Investment with No Allowance | 0 |
Recorded Investment with Allowance | 567 |
Total Recorded Investment | 567 |
Related Allowance | 128 |
Average Recorded Investment YTD | 1,793 |
Real Estate | Farmland | |
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 YTD | 0 |
Real Estate | Residential Real Estate | 1 - 4 family residential | |
Impaired Loans | |
Unpaid Contractual Principal Balance | 156 |
Recorded Investment with No Allowance | 0 |
Recorded Investment with Allowance | 156 |
Total Recorded Investment | 156 |
Related Allowance | 37 |
Average Recorded Investment YTD | 158 |
Real Estate | Residential Real Estate | Multifamily | |
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 YTD | 0 |
Real Estate | Commercial Real Estate | |
Impaired Loans | |
Unpaid Contractual Principal Balance | 21,644 |
Recorded Investment with No Allowance | 21,040 |
Recorded Investment with Allowance | 604 |
Total Recorded Investment | 21,644 |
Related Allowance | 395 |
Average Recorded Investment YTD | 22,529 |
Commercial | |
Impaired Loans | |
Unpaid Contractual Principal Balance | 5,188 |
Recorded Investment with No Allowance | 2,011 |
Recorded Investment with Allowance | 3,177 |
Total Recorded Investment | 5,188 |
Related Allowance | 1,042 |
Average Recorded Investment YTD | 8,546 |
Consumer | |
Impaired Loans | |
Unpaid Contractual Principal Balance | 61 |
Recorded Investment with No Allowance | 61 |
Recorded Investment with Allowance | 0 |
Total Recorded Investment | 61 |
Related Allowance | 0 |
Average Recorded Investment YTD | $ 62 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Nonaccrual (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Loans and Allowance for Loan Losses | |||
Nonaccrual | $ 38,836,000 | $ 29,779,000 | |
Nonaccrual With No ACL | 26,508,000 | 26,036,000 | |
Loans and leases receivable, impaired, interest lost on nonaccrual loans | 173,000 | $ 151,000 | |
Commercial | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 14,395,000 | 5,672,000 | |
Nonaccrual With No ACL | 2,852,000 | 2,747,000 | |
Mortgage warehouse | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 0 | 0 | |
Nonaccrual With No ACL | 0 | 0 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 74,000 | 54,000 | |
Nonaccrual With No ACL | 74,000 | 54,000 | |
Construction and land | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 785,000 | 567,000 | |
Nonaccrual With No ACL | 0 | 0 | |
Farmland | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 0 | 0 | |
Nonaccrual With No ACL | 0 | 0 | |
Residential Real Estate | 1 - 4 family residential | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 912,000 | 1,581,000 | |
Nonaccrual With No ACL | 912,000 | 1,581,000 | |
Residential Real Estate | Multi-family residential | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 0 | 0 | |
Nonaccrual With No ACL | 0 | 0 | |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 3,794,000 | 3,029,000 | |
Nonaccrual With No ACL | 3,794,000 | 2,778,000 | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual | 18,876,000 | 18,876,000 | |
Nonaccrual With No ACL | 18,876,000 | 18,876,000 | |
PCD Loans | |||
Loans and Allowance for Loan Losses | |||
Loans and leases receivable, impaired, interest lost on nonaccrual loans | $ 0 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 33,987 | $ 18,571 |
Total Current | 6,096,039 | 5,779,858 |
Total loans | 6,223,426 | 5,921,071 |
Total 90 days past due and still accruing | 4,764 | 3,660 |
PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 156,582 | |
PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 156,582 | 126,718 |
30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 26,539 | 6,209 |
60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 2,684 | 8,702 |
90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,764 | 3,660 |
90 Days or Greater | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total 90 days past due and still accruing | 68,325 | 41,328 |
Real Estate | Construction and land | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,649 | 0 |
Total Current | 559,216 | 629,374 |
Total loans | 566,470 | 629,374 |
Total 90 days past due and still accruing | 0 | 800 |
Real Estate | Construction and land | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 5,605 | |
Real Estate | Construction and land | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 5,605 | 3,947 |
Real Estate | Construction and land | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 327 | 0 |
Real Estate | Construction and land | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,322 | 0 |
Real Estate | Construction and land | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 14,930 | 16,939 |
Total loans | 14,930 | 16,939 |
Total 90 days past due and still accruing | 0 | 0 |
Real Estate | Farmland | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | 0 |
Real Estate | Farmland | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Farmland | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Residential Real Estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 869,852 | |
Real Estate | Residential Real Estate | 1 - 4 family residential | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,672 | 4,270 |
Total Current | 527,410 | 541,772 |
Total loans | 536,892 | 549,811 |
Total 90 days past due and still accruing | 210 | 959 |
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 4,810 | |
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 4,810 | 3,769 |
Real Estate | Residential Real Estate | 1 - 4 family residential | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,400 | 2,595 |
Real Estate | Residential Real Estate | 1 - 4 family residential | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 62 | 520 |
Real Estate | Residential Real Estate | 1 - 4 family residential | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 210 | 1,155 |
Real Estate | Residential Real Estate | Multifamily | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 388,374 | 320,041 |
Total loans | 388,374 | 320,041 |
Total 90 days past due and still accruing | 0 | 0 |
Real Estate | Residential Real Estate | Multifamily | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | 0 |
Real Estate | Residential Real Estate | Multifamily | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Residential Real Estate | Multifamily | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Residential Real Estate | Multifamily | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Real Estate | Commercial Real Estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4,714 | |
Total Current | 2,389,415 | |
Total loans | 2,490,983 | |
Total 90 days past due and still accruing | 511 | |
Real Estate | Commercial Real Estate | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 96,854 | |
Real Estate | Commercial Real Estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 12 | |
Real Estate | Commercial Real Estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,834 | |
Real Estate | Commercial Real Estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 868 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,464 | |
Total Current | 720,375 | |
Total loans | 723,839 | 706,782 |
Total 90 days past due and still accruing | 1,992 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 63,182 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 63,182 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,471 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1 | |
Real Estate | Commercial Real Estate | Owner Occupied Commercial Real Estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,992 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,773 | |
Total Current | 1,771,909 | |
Total loans | 1,828,386 | 1,784,201 |
Total 90 days past due and still accruing | 0 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 52,704 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 52,704 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 3,773 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Real Estate | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | |
Commercial | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 20,273 | 6,776 |
Total Current | 1,727,278 | 1,684,043 |
Total loans | 1,777,603 | 1,712,838 |
Total 90 days past due and still accruing | 2,545 | 1,317 |
Commercial | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 30,052 | |
Commercial | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 30,052 | 22,019 |
Commercial | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 16,433 | 3,572 |
Commercial | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 1,295 | 1,707 |
Commercial | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 2,545 | 1,497 |
Mortgage warehouse | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Total Current | 371,161 | 183,628 |
Total loans | 371,161 | 183,628 |
Total 90 days past due and still accruing | 0 | 0 |
Mortgage warehouse | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 0 | 0 |
Mortgage warehouse | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Mortgage warehouse | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Mortgage warehouse | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 0 | 0 |
Consumer | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 156 | 2,811 |
Total Current | 15,386 | 14,646 |
Total loans | 15,771 | 17,457 |
Total 90 days past due and still accruing | 17 | 73 |
Consumer | PCD | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 229 | |
Consumer | PCD | PCD Loans | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total loans | 229 | 129 |
Consumer | 30 to 59 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 135 | 30 |
Consumer | 60 to 89 Days | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | 4 | 2,641 |
Consumer | 90 Days or Greater | ||
Age analysis of past due loans, excluding purchased credit impaired loans, aggregated by class of loans | ||
Total Past Due | $ 17 | $ 140 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)Loan | Mar. 31, 2019Loan | Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Recorded investment for financing receivable, modifications | $ 3,142 | $ 2,142 | |
Number of Loans | Loan | 1 | 0 | |
Extended Amortization Period | $ 0 | ||
Payment Deferrals | 970 | ||
Total Modifications | $ 970 | ||
Loans modified as TDR | Loan | 0 | 0 | |
Commercial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Loans | Loan | 1 | ||
Extended Amortization Period | $ 0 | ||
Payment Deferrals | 970 | ||
Total Modifications | $ 970 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Credit Quality Indicators | ||
2020 | $ 247,237 | |
2019 | 993,156 | |
2018 | 1,424,372 | |
2017 | 486,190 | |
2016 | 525,915 | |
Prior | 1,009,858 | |
Revolving Loans Amortized Cost Basis | 1,501,826 | |
Revolving Loans Converted to Term | 34,872 | |
Total | 6,223,426 | $ 5,921,071 |
Pass | ||
Credit Quality Indicators | ||
2020 | 247,170 | |
2019 | 974,652 | |
2018 | 1,374,830 | |
2017 | 472,189 | |
2016 | 485,652 | |
Prior | 865,152 | |
Revolving Loans Amortized Cost Basis | 1,501,826 | |
Revolving Loans Converted to Term | 28,719 | |
Total | 5,950,190 | 5,640,781 |
Special mention | ||
Credit Quality Indicators | ||
2020 | 67 | |
2019 | 18,504 | |
2018 | 14,375 | |
2017 | 444 | |
2016 | 4,350 | |
Prior | 16,392 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 5,961 | |
Total | 60,093 | 80,293 |
Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 6,248 | |
2017 | 7,481 | |
2016 | 16,552 | |
Prior | 26,088 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 192 | |
Total | 56,561 | 73,279 |
PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 28,919 | |
2017 | 6,076 | |
2016 | 19,361 | |
Prior | 102,226 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 156,582 | |
Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Commercial | ||
Credit Quality Indicators | ||
2020 | 63,011 | |
2019 | 209,451 | |
2018 | 215,330 | |
2017 | 124,913 | |
2016 | 42,561 | |
Prior | 73,591 | |
Revolving Loans Amortized Cost Basis | 1,024,341 | |
Revolving Loans Converted to Term | 24,405 | |
Total | 1,777,603 | 1,712,838 |
Commercial | Pass | ||
Credit Quality Indicators | ||
2020 | 62,944 | |
2019 | 208,011 | |
2018 | 201,677 | |
2017 | 115,757 | |
2016 | 31,351 | |
Prior | 47,577 | |
Revolving Loans Amortized Cost Basis | 1,024,341 | |
Revolving Loans Converted to Term | 18,252 | |
Total | 1,709,910 | 1,610,150 |
Commercial | Special mention | ||
Credit Quality Indicators | ||
2020 | 67 | |
2019 | 1,440 | |
2018 | 9,924 | |
2017 | 233 | |
2016 | 174 | |
Prior | 1,852 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 5,961 | |
Total | 19,651 | 51,999 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 3,729 | |
2017 | 3,883 | |
2016 | 7,347 | |
Prior | 2,839 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 192 | |
Total | 17,990 | 28,670 |
Commercial | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 5,040 | |
2016 | 3,689 | |
Prior | 21,323 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 30,052 | |
Commercial | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Mortgage warehouse | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 371,161 | |
Revolving Loans Converted to Term | 0 | |
Total | 371,161 | 183,628 |
Mortgage warehouse | Pass | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 371,161 | |
Revolving Loans Converted to Term | 0 | |
Total | 371,161 | |
Mortgage warehouse | Special mention | ||
Credit Quality Indicators | ||
Total | 0 | |
Mortgage warehouse | Substandard | ||
Credit Quality Indicators | ||
Total | 0 | |
Mortgage warehouse | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Consumer | ||
Credit Quality Indicators | ||
2020 | 1,986 | |
2019 | 2,079 | |
2018 | 1,620 | |
2017 | 4,955 | |
2016 | 952 | |
Prior | 1,043 | |
Revolving Loans Amortized Cost Basis | 3,136 | |
Revolving Loans Converted to Term | 0 | |
Total | 15,771 | 17,457 |
Consumer | Pass | ||
Credit Quality Indicators | ||
2020 | 1,986 | |
2019 | 2,079 | |
2018 | 1,620 | |
2017 | 4,896 | |
2016 | 952 | |
Prior | 733 | |
Revolving Loans Amortized Cost Basis | 3,136 | |
Revolving Loans Converted to Term | 0 | |
Total | 15,402 | 17,106 |
Consumer | Special mention | ||
Credit Quality Indicators | ||
Total | 40 | |
Consumer | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 18 | |
2016 | 0 | |
Prior | 122 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 140 | 182 |
Consumer | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 41 | |
2016 | 0 | |
Prior | 188 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 229 | |
Consumer | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Construction and land | Real Estate | ||
Credit Quality Indicators | ||
2020 | 10,095 | |
2019 | 183,309 | |
2018 | 246,693 | |
2017 | 39,352 | |
2016 | 14,526 | |
Prior | 29,709 | |
Revolving Loans Amortized Cost Basis | 42,786 | |
Revolving Loans Converted to Term | 0 | |
Total | 566,470 | 629,374 |
Construction and land | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 10,095 | |
2019 | 183,309 | |
2018 | 245,362 | |
2017 | 37,572 | |
2016 | 13,121 | |
Prior | 22,578 | |
Revolving Loans Amortized Cost Basis | 42,786 | |
Revolving Loans Converted to Term | 0 | |
Total | 554,823 | 618,773 |
Construction and land | Real Estate | Special mention | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 3,935 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 3,935 | 3,965 |
Construction and land | Real Estate | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 855 | |
2017 | 785 | |
2016 | 467 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 2,107 | 2,689 |
Construction and land | Real Estate | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 476 | |
2017 | 995 | |
2016 | 938 | |
Prior | 3,196 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 5,605 | |
Construction and land | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Farmland | Real Estate | ||
Credit Quality Indicators | ||
2020 | 290 | |
2019 | 1,004 | |
2018 | 3,367 | |
2017 | 4,415 | |
2016 | 0 | |
Prior | 4,470 | |
Revolving Loans Amortized Cost Basis | 1,384 | |
Revolving Loans Converted to Term | 0 | |
Total | 14,930 | 16,939 |
Farmland | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 290 | |
2019 | 1,004 | |
2018 | 3,367 | |
2017 | 4,415 | |
2016 | 0 | |
Prior | 4,470 | |
Revolving Loans Amortized Cost Basis | 1,384 | |
Revolving Loans Converted to Term | 0 | |
Total | 14,930 | 16,939 |
Farmland | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Total | 0 | |
Farmland | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total | 0 | |
Farmland | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Residential Real Estate | Real Estate | ||
Credit Quality Indicators | ||
Total | 869,852 | |
Residential Real Estate | Single Family | Real Estate | ||
Credit Quality Indicators | ||
2020 | 16,974 | |
2019 | 95,380 | |
2018 | 119,060 | |
2017 | 75,451 | |
2016 | 42,087 | |
Prior | 155,394 | |
Revolving Loans Amortized Cost Basis | 29,490 | |
Revolving Loans Converted to Term | 3,056 | |
Total | 536,892 | 549,811 |
Residential Real Estate | Single Family | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 16,974 | |
2019 | 95,380 | |
2018 | 118,905 | |
2017 | 75,229 | |
2016 | 41,458 | |
Prior | 148,332 | |
Revolving Loans Amortized Cost Basis | 29,490 | |
Revolving Loans Converted to Term | 3,056 | |
Total | 528,824 | 541,787 |
Residential Real Estate | Single Family | Real Estate | Special mention | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 155 | |
2017 | 119 | |
2016 | 0 | |
Prior | 552 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 826 | 795 |
Residential Real Estate | Single Family | Real Estate | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 103 | |
2016 | 629 | |
Prior | 1,700 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 2,432 | 3,460 |
Residential Real Estate | Single Family | Real Estate | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 4,810 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 4,810 | |
Residential Real Estate | Single Family | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Residential Real Estate | Multifamily | Real Estate | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 130,313 | |
2018 | 172,526 | |
2017 | 32,779 | |
2016 | 43,606 | |
Prior | 8,931 | |
Revolving Loans Amortized Cost Basis | 219 | |
Revolving Loans Converted to Term | 0 | |
Total | 388,374 | 320,041 |
Residential Real Estate | Multifamily | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 113,249 | |
2018 | 172,526 | |
2017 | 32,779 | |
2016 | 43,606 | |
Prior | 8,931 | |
Revolving Loans Amortized Cost Basis | 219 | |
Revolving Loans Converted to Term | 0 | |
Total | 371,310 | 320,041 |
Residential Real Estate | Multifamily | Real Estate | Special mention | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 17,064 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 17,064 | 0 |
Residential Real Estate | Multifamily | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total | 0 | |
Residential Real Estate | Multifamily | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Commercial Real Estate | Real Estate | ||
Credit Quality Indicators | ||
Total | 2,490,983 | |
Commercial Real Estate | Real Estate | Pass | ||
Credit Quality Indicators | ||
Total | 2,332,357 | |
Commercial Real Estate | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Total | 23,494 | |
Commercial Real Estate | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Total | 38,278 | |
Commercial Real Estate | Real Estate | Doubtful | ||
Credit Quality Indicators | ||
Total | 0 | |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | ||
Credit Quality Indicators | ||
2020 | 19,057 | |
2019 | 60,032 | |
2018 | 124,190 | |
2017 | 87,912 | |
2016 | 143,774 | |
Prior | 279,831 | |
Revolving Loans Amortized Cost Basis | 1,632 | |
Revolving Loans Converted to Term | 7,411 | |
Total | 723,839 | 706,782 |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 19,057 | |
2019 | 60,032 | |
2018 | 108,442 | |
2017 | 85,128 | |
2016 | 123,511 | |
Prior | 226,995 | |
Revolving Loans Amortized Cost Basis | 1,632 | |
Revolving Loans Converted to Term | 7,411 | |
Total | 632,208 | |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | Special mention | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 4,296 | |
2017 | 92 | |
2016 | 4,176 | |
Prior | 4,869 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 13,433 | |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 1,664 | |
2017 | 2,692 | |
2016 | 8,109 | |
Prior | 2,551 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 15,016 | |
Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 9,788 | |
2017 | 0 | |
2016 | 7,978 | |
Prior | 45,416 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 63,182 | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | ||
Credit Quality Indicators | ||
2020 | 135,824 | |
2019 | 311,588 | |
2018 | 541,586 | |
2017 | 116,413 | |
2016 | 238,409 | |
Prior | 456,889 | |
Revolving Loans Amortized Cost Basis | 27,677 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,828,386 | 1,784,201 |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | Pass | ||
Credit Quality Indicators | ||
2020 | 135,824 | |
2019 | 311,588 | |
2018 | 522,931 | |
2017 | 116,413 | |
2016 | 231,653 | |
Prior | 405,536 | |
Revolving Loans Amortized Cost Basis | 27,677 | |
Revolving Loans Converted to Term | 0 | |
Total | 1,751,622 | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | Special mention | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 5,184 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 5,184 | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | Substandard | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 0 | |
2017 | 0 | |
2016 | 0 | |
Prior | 18,876 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 18,876 | |
Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | PCD | ||
Credit Quality Indicators | ||
2020 | 0 | |
2019 | 0 | |
2018 | 18,655 | |
2017 | 0 | |
2016 | 6,756 | |
Prior | 27,293 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 52,704 | |
PCD Loans | PCD | ||
Credit Quality Indicators | ||
Total | 156,582 | 126,718 |
PCD Loans | Commercial | PCD | ||
Credit Quality Indicators | ||
Total | 30,052 | 22,019 |
PCD Loans | Mortgage warehouse | PCD | ||
Credit Quality Indicators | ||
Total | 0 | 0 |
PCD Loans | Consumer | PCD | ||
Credit Quality Indicators | ||
Total | 229 | 129 |
PCD Loans | Construction and land | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 5,605 | 3,947 |
PCD Loans | Farmland | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 0 | 0 |
PCD Loans | Residential Real Estate | Single Family | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 4,810 | 3,769 |
PCD Loans | Residential Real Estate | Multifamily | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 0 | 0 |
PCD Loans | Commercial Real Estate | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | $ 96,854 | |
PCD Loans | Commercial Real Estate | Owner Occupied Commercial Real Estate | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 63,182 | |
PCD Loans | Commercial Real Estate | Non-Owner Occupied Commercial Real Estate | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | $ 52,704 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - PCI Loans (Details) - Acquired Loans with Deteriorated Credit Quality $ in Thousands | Dec. 31, 2019USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Carrying amount | $ 126,125 |
Outstanding balance | $ 157,417 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - PCI Accretable Yield Rollforward (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at beginning of period | $ 18,747,000 |
Additions | 18,073,000 |
Reclassifications (to) from nonaccretable | (413,000) |
Accretion | (2,545,000) |
Balance at end of period | 33,862,000 |
Cash collections of certain loans acquired in transfer accounted for as debt securities | $ 390,000 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Servicing Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 211,941,000 | $ 228,638,000 | |
Summary of changes in related servicing assets | |||
Balance at beginning of period | 3,113,000 | 1,304,000 | |
Servicing asset acquired through acquisition | 0 | 2,382,000 | |
Increase from loan sales | 109,000 | 461,000 | |
Amortization charged to income | (232,000) | (175,000) | |
Balance at end of period | 2,990,000 | $ 3,972,000 | |
Interest-only strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | $ 0 | $ 0 |
Fair Value - Recurring Basis (D
Fair Value - Recurring Basis (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Assets measured at fair value | |||
Available for sale securities | $ 1,084,962,000 | $ 964,365,000 | |
Equity securities with a readily determinable fair value | 15,373,000 | 11,122,000 | |
Recurring | |||
Assets measured at fair value | |||
Available for sale securities | 1,084,962,000 | 964,365,000 | |
Equity securities with a readily determinable fair value | 15,373,000 | 11,122,000 | |
Loans held for sale | 15,048,000 | 10,068,000 | |
Transfer of assets from Level 2 to Level 3 | 0 | $ 0 | |
Transfer of assets from Level 3 to Level 2 | 0 | $ 0 | |
Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 0 | 0 | |
Equity securities with a readily determinable fair value | 15,373,000 | 11,122,000 | |
Loans held for sale | 0 | 0 | |
Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 1,084,962,000 | 964,365,000 | |
Equity securities with a readily determinable fair value | 0 | 0 | |
Loans held for sale | 15,048,000 | 10,068,000 | |
Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Available for sale securities | 0 | 0 | |
Equity securities with a readily determinable fair value | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Interest rate swaps | Recurring | |||
Assets measured at fair value | |||
Derivative liability | 1,903,000 | ||
Interest rate swaps | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 0 | ||
Interest rate swaps | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 1,903,000 | ||
Interest rate swaps | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 0 | ||
Interest rate swaps | Financial institution counterparty | Recurring | |||
Assets measured at fair value | |||
Derivative asset | 0 | 105,000 | |
Derivative liability | 15,743,000 | 4,736,000 | |
Interest rate swaps | Financial institution counterparty | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Derivative liability | 0 | 0 | |
Interest rate swaps | Financial institution counterparty | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 105,000 | |
Derivative liability | 15,743,000 | 4,736,000 | |
Interest rate swaps | Financial institution counterparty | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Derivative liability | 0 | 0 | |
Interest rate swaps | Commercial customer counterparty: | Recurring | |||
Assets measured at fair value | |||
Derivative asset | 14,654,000 | 4,393,000 | |
Derivative liability | 84,000 | ||
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Derivative liability | 0 | ||
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 14,654,000 | 4,393,000 | |
Derivative liability | 84,000 | ||
Interest rate swaps | Commercial customer counterparty: | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Derivative liability | 0 | ||
Interest rate caps and collars | Financial institution counterparty | Recurring | |||
Assets measured at fair value | |||
Derivative asset | 7,000 | 11,000 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 7,000 | 11,000 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | 0 | |
Interest rate caps and collars | Commercial customer counterparty: | Recurring | |||
Assets measured at fair value | |||
Derivative liability | 7,000 | 11,000 | |
Interest rate caps and collars | Commercial customer counterparty: | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 0 | 0 | |
Interest rate caps and collars | Commercial customer counterparty: | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative liability | 7,000 | 11,000 | |
Interest rate caps and collars | Commercial customer counterparty: | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative liability | $ 0 | 0 | |
Interest rate floor | Financial institution counterparty | Recurring | |||
Assets measured at fair value | |||
Derivative asset | 3,353,000 | ||
Interest rate floor | Financial institution counterparty | Recurring | Level 1 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 0 | ||
Interest rate floor | Financial institution counterparty | Recurring | Level 2 Inputs | |||
Assets measured at fair value | |||
Derivative asset | 3,353,000 | ||
Interest rate floor | Financial institution counterparty | Recurring | Level 3 Inputs | |||
Assets measured at fair value | |||
Derivative asset | $ 0 |
Fair Value - Non-recurring Basi
Fair Value - Non-recurring Basis (Details) | Mar. 31, 2020USD ($)property | Dec. 31, 2019USD ($)property |
Assets measured at fair value | ||
Impaired loans, specific allowance | $ 5,921,000 | $ 1,602,000 |
Other real estate owned, number of properties | property | 5 | 4 |
Non-recurring | ||
Assets measured at fair value | ||
Collateral dependent loans | $ 12,370,000 | $ 4,504,000 |
Other real estate owned | 7,720,000 | 5,995,000 |
Liabilities measured at fair value | 0 | 0 |
Non-recurring | Level 1 Inputs | ||
Assets measured at fair value | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Non-recurring | Level 2 Inputs | ||
Assets measured at fair value | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Non-recurring | Level 3 Inputs | ||
Assets measured at fair value | ||
Collateral dependent loans | 12,370,000 | 4,504,000 |
Other real estate owned | $ 7,720,000 | $ 5,995,000 |
Fair Value - Financial Instrume
Fair Value - Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Held to maturity investments | $ 35,513 | $ 34,810 |
Equity securities without a readily determinable fair value | 3,575 | 3,575 |
Financial liabilities: | ||
Subordinated debentures and subordinated notes | 140,406 | 145,571 |
Securities sold under agreements to repurchase | 2,426 | 2,353 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 430,842 | 251,550 |
Held to maturity investments | 32,842 | 32,965 |
Loans held for sale | 15,048 | 14,080 |
Loans held for investment | 5,737,577 | |
Accrued interest receivable | 22,059 | 19,508 |
Bank-owned life insurance | 81,395 | 80,915 |
Servicing asset | 2,991 | 3,113 |
Equity securities without a readily determinable fair value | 3,575 | 3,575 |
Federal Home Loan Bank and Federal Reserve Bank stock | 92,809 | 68,348 |
Financial liabilities: | ||
Deposits | 5,799,945 | 5,894,350 |
Advances from FHLB | 1,377,832 | 677,870 |
Accrued interest payable | 7,881 | 5,893 |
Subordinated debentures and subordinated notes | 140,406 | 145,571 |
Securities sold under agreements to repurchase | 2,426 | |
Other borrowings | 2,353 | |
Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held to maturity investments | 0 | 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 agreements to repurchase | 0 | |
Other borrowings | 0 | |
Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 430,842 | 251,550 |
Held to maturity investments | 35,512 | 34,810 |
Loans held for sale | 15,048 | 14,080 |
Loans held for investment | 0 | |
Accrued interest receivable | 22,059 | 19,508 |
Bank-owned life insurance | 81,395 | 80,915 |
Servicing asset | 2,991 | 3,113 |
Financial liabilities: | ||
Deposits | 5,783,125 | 5,692,217 |
Advances from FHLB | 1,129,409 | 708,692 |
Accrued interest payable | 7,881 | 5,893 |
Subordinated debentures and subordinated notes | 140,406 | 145,571 |
Securities sold under agreements to repurchase | 2,426 | |
Other borrowings | 2,353 | |
Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held to maturity investments | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans held for investment | 5,714,885 | |
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 agreements to repurchase | 0 | |
Other borrowings | 0 | |
Mortgage warehouse | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 371,161 | 183,628 |
Mortgage warehouse | Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse | Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse | Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 373,759 | $ 185,060 |
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount | ||
Financial assets: | ||
Loans held for investment | 5,853,735 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 1 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 2 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | 0 | |
Real Estate, Commercial and Consumer Portfolio Segments | Level 3 Inputs | Fair Value | ||
Financial assets: | ||
Loans held for investment | $ 5,799,072 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) | 1 Months Ended | ||
May 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 1,441,060,000 | $ 899,974,000 | |
Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 500,000 | ||
Interest rate swaps | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 250,000 | ||
Interest rate floor | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 275,000,000 | ||
Term of contract | 2 years | ||
Floor interest rate | 2.43% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 | May 31, 2019 |
Derivative [Line Items] | |||
Notional Amount | $ 1,441,060,000 | $ 899,974,000 | |
Asset Derivative | |||
Offsetting derivative assets | (4,620,000) | (2,895,000) | |
Net derivatives in the consolidated balance sheets | 23,894,000 | 4,967,000 | |
Liability Derivative | |||
Offsetting derivative liabilities | (4,620,000) | (2,895,000) | |
Net derivatives in the consolidated balance sheets | 22,273,000 | 1,936,000 | |
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 500,000 | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 250,000 | ||
Interest rate floor | |||
Derivative [Line Items] | |||
Notional Amount | $ 275,000,000 | ||
Designated as hedging instrument | |||
Derivative [Line Items] | |||
Notional Amount | 750,000,000 | 275,000,000 | |
Asset Derivative | |||
Gross derivatives | 4,613,000 | 3,353,000 | |
Liability Derivative | |||
Gross derivatives | 1,903,000 | 0 | |
Designated as hedging instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 500,000,000 | 0 | |
Asset Derivative | |||
Gross derivatives | 4,613,000 | 0 | |
Liability Derivative | |||
Gross derivatives | 0 | 0 | |
Designated as hedging instrument | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 250,000,000 | 0 | |
Asset Derivative | |||
Gross derivatives | 0 | 0 | |
Liability Derivative | |||
Gross derivatives | 1,903,000 | 0 | |
Designated as hedging instrument | Interest rate floor | |||
Derivative [Line Items] | |||
Notional Amount | 0 | 275,000,000 | |
Asset Derivative | |||
Gross derivatives | 0 | 3,353,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 0 | |
Non-hedging derivatives | |||
Derivative [Line Items] | |||
Notional Amount | 691,060,000 | 624,974,000 | |
Asset Derivative | |||
Gross derivatives | 14,661,000 | 4,509,000 | |
Liability Derivative | |||
Gross derivatives | 15,750,000 | 4,831,000 | |
Financial institution counterparty | Non-hedging derivatives | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 272,636,000 | 222,394,000 | |
Asset Derivative | |||
Gross derivatives | 0 | 105,000 | |
Liability Derivative | |||
Gross derivatives | 15,743,000 | 4,736,000 | |
Financial institution counterparty | Non-hedging derivatives | Interest rate caps and collars | |||
Derivative [Line Items] | |||
Notional Amount | 72,894,000 | 90,093,000 | |
Asset Derivative | |||
Gross derivatives | 7,000 | 11,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 0 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 272,636,000 | 222,394,000 | |
Asset Derivative | |||
Gross derivatives | 14,654,000 | 4,393,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 84,000 | |
Commercial customer counterparty: | Non-hedging derivatives | Interest rate caps and collars | |||
Derivative [Line Items] | |||
Notional Amount | 72,894,000 | 90,093,000 | |
Asset Derivative | |||
Gross derivatives | 0 | 0 | |
Liability Derivative | |||
Gross derivatives | $ 7,000 | $ 11,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - AOCI Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gain recognized in other comprehensive income on derivative | $ 3,732 | $ 0 |
Interest Income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain reclassified from accumulated other comprehensive income into interest income | 284 | 0 |
Noninterest income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other noninterest income | 0 | 0 |
Interest rate floor | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gain recognized in other comprehensive income on derivative | 1,022 | 0 |
Interest rate floor | Interest Income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain reclassified from accumulated other comprehensive income into interest income | 284 | 0 |
Interest rate floor | Noninterest income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other noninterest income | 0 | 0 |
Interest rate swaps | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gain recognized in other comprehensive income on derivative | 2,710 | 0 |
Interest rate swaps | Interest Income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain reclassified from accumulated other comprehensive income into interest income | 0 | 0 |
Interest rate swaps | Noninterest income | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other noninterest income | 0 | 0 |
Interest rate swaps, caps and collars | Non-hedging derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net Gain recognized in other comprehensive income on derivative | 0 | 0 |
Gain reclassified from accumulated other comprehensive income into interest income | 0 | 0 |
Interest rate swaps, caps and collars | Noninterest income | Non-hedging derivatives | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain recognized in other noninterest income | $ 501 | $ 250 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,441,060,000 | $ 899,974,000 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 500,000 | |
Non-hedging derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 691,060,000 | 624,974,000 |
Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 272,636,000 | $ 222,394,000 |
Maturity | 4 years 3 months 18 days | 3 years 3 months 18 days |
Fair Value | $ (15,743,000) | $ (4,632,000) |
Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 72,894,000 | $ 90,093,000 |
Maturity | 1 year 8 months 12 days | 1 year 6 months |
Fair Value | $ 7,000 | $ 11,000 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 272,636,000 | $ 222,394,000 |
Maturity | 4 years 3 months 18 days | 3 years 3 months 18 days |
Fair Value | $ 14,654,000 | $ 4,309,000 |
Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 72,894,000 | $ 90,093,000 |
Maturity | 1 year 8 months 12 days | 1 year 6 months |
Fair Value | $ (7,000) | $ (11,000) |
LIBOR | Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | |
Prime Rate | Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0.25% | 0.25% |
Prime Rate | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0.25% | 0.25% |
Minimum | Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 3.14% | 2.944% |
Minimum | Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 2.50% | 2.43% |
Minimum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 3.14% | 2.944% |
Minimum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.00% | 3.00% |
Minimum | LIBOR | Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | 0.00% |
Minimum | LIBOR | Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 3.00% | |
Minimum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | 0.00% |
Minimum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | 3.00% |
Maximum | Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 8.47% | 8.47% |
Maximum | Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.10% | 5.80% |
Maximum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 8.47% | 8.47% |
Maximum | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 5.00% | 5.80% |
Maximum | LIBOR | Non-hedging derivatives | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 5.00% | 5.00% |
Maximum | LIBOR | Non-hedging derivatives | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 3.75% | |
Maximum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 5.00% | 5.00% |
Maximum | LIBOR | Non-hedging derivatives | Commercial customer counterparty: | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 2.50% | 3.75% |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk - Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 1,642,212 | $ 1,977,546 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 1,607,683 | 1,950,350 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 34,529 | $ 27,196 |
Financial Instruments with Of_4
Financial Instruments with Off-Balance Sheet Risk - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance For Unfunded Commitments [Roll Forward] | |||
Beginning balance for allowance for unfunded commitments | $ 878 | $ 878 | $ 878 |
Provision for unfunded commitments | 3,881 | $ 0 | 0 |
Ending balance of allowance for unfunded commitments | 5,599 | 878 | |
Cumulative Effect, Period Of Adoption, Adjustment | |||
Allowance For Unfunded Commitments [Roll Forward] | |||
Beginning balance for allowance for unfunded commitments | $ 840 | ||
Ending balance of allowance for unfunded commitments | $ 840 |
Stock-Based Awards - 2010 Plan
Stock-Based Awards - 2010 Plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
2010 Stock Option and Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 0 | $ 2,000 |
Stock-Based Awards - 2010 Pla_2
Stock-Based Awards - 2010 Plan - Options (Details) - Non Performance Based Stock Options - 2010 Stock Option and Equity Incentive Plan - USD ($) | Jan. 01, 2019 | Jan. 01, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 |
Shares Underlying Options | |||||
Outstanding at beginning of period (in shares) | 275,000 | 257,500 | 275,000 | 275,000 | |
Exercised (in shares) | (202,500) | (15,000) | |||
Outstanding at the end of period (in shares) | 55,000 | 260,000 | 257,500 | ||
Options exercisable at end of period (in shares) | 55,000 | 260,000 | |||
Weighted Exercise Price | |||||
Outstanding at beginning of period (in dollars per share) | $ 10.12 | $ 10.28 | $ 10.12 | $ 10.12 | |
Exercised (in dollars per share) | 10.14 | 10.28 | |||
Outstanding at the end of period (in dollars per share) | 10.77 | 10.12 | $ 10.28 | ||
Options exercisable at end of period (in dollars per share) | $ 10.77 | $ 10.12 | |||
Weighted Average Contractual Term | |||||
Outstanding | 1 year 4 months 13 days | 2 years 4 months 20 days | 2 years 7 days | 2 years 1 month 9 days | |
Exercisable | 2 years 7 days | 2 years 1 month 9 days | |||
Aggregate Intrinsic Value | |||||
Outstanding beginning balance | $ 4,971,000 | ||||
Exercised | 3,691,000 | ||||
Outstanding ending balance | 232,000 | $ 4,971,000 | |||
Exercisable | 232,000 | ||||
Unrecognized compensation expense | $ 0 | $ 0 | $ 0 |
Stock-Based Awards - 2010 Pla_3
Stock-Based Awards - 2010 Plan - Fair Value Options Exercised (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
2010 Stock Option and Equity Incentive Plan | Non Performance Based Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-performance-based stock options exercised | $ 5,745 | $ 390 |
Stock-Based Awards - Vesting (D
Stock-Based Awards - Vesting (Details) | 3 Months Ended |
Mar. 31, 2020companyinstallment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, installments | 3 |
Number of peer companies | company | 15 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting rights, installments | 3 |
Performance based equity restricted stock units | Below the 24.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 24.90% |
Vesting % | 0.00% |
Performance based equity restricted stock units | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting % | 50.00% |
Performance based equity restricted stock units | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting % | 100.00% |
Performance based equity restricted stock units | At or above the 75th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 75.00% |
Vesting % | 150.00% |
Performance based equity restricted stock units | Minimum | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 25.00% |
Performance based equity restricted stock units | Minimum | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 50.00% |
Performance based equity restricted stock units | Maximum | Within the 25th to 49.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 49.90% |
Performance based equity restricted stock units | Maximum | Within the 50th the 74.9th percentile of Peer Group TSR | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of total stockholder return relative to peer companies | 74.90% |
Stock-Based Awards - Omnibus Pl
Stock-Based Awards - Omnibus Plan Black Scholes Assumptions - (Details) - Omnibus Plan and Veritex Green Plan | 3 Months Ended |
Mar. 31, 2020 | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |
Expected volatility, minimum (as a percent) | 27.49% |
Expected volatility, maximum (as a percent) | 28.78% |
Risk-free interest rate, minimum (as a percent) | 1.65% |
Risk-free interest rate, maximum (as a percent) | 1.76% |
Minimum | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |
Dividend yield (as a percent) | 2.33% |
Expected life | 5 years |
Maximum | |
Assumptions used to measure fair value of each option award estimated on grant date using Black-Scholes option-pricing model | |
Dividend yield (as a percent) | 2.40% |
Expected life | 6 years 6 months |
Stock-Based Awards - Stock Comp
Stock-Based Awards - Stock Compensation Expense and Liability Award Compensation Expense (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
2019 Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | $ 1,488,000 | $ 1,508,000 |
Veritex Green Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation expense | 470,000 | 385,000 |
Liability Awards | 2019 Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expensed and capitalized amount | $ 0 | $ 708,000 |
Stock-Based Awards - Omnibus _2
Stock-Based Awards - Omnibus Plan - Options (Details) - 2019 Omnibus Plan - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non Performance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 849,768 | 449,520 | 449,520 | |
Granted (in shares) | 144,025 | 75,928 | ||
Forfeited (in shares) | (21,891) | (4,445) | ||
Exercised (in shares) | (33,439) | (11,848) | ||
Outstanding at the end of period (in shares) | 938,463 | 509,155 | 849,768 | 449,520 |
Options exercisable at end of period (in shares) | 469,983 | 437,672 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 23.61 | $ 24.47 | $ 24.47 | |
Granted (in dollars per share) | 29.13 | 21.38 | ||
Forfeited (in dollars per share) | 28.17 | 21.38 | ||
Exercised (in dollars per share) | 19.19 | 15.37 | ||
Outstanding at the end of period (in dollars per share) | 24.51 | 23.28 | $ 23.61 | $ 24.47 |
Options exercisable at end of period (in dollars per share) | 24.15 | $ 24.71 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 29.13 | |||
Weighted Average Contractual Term | ||||
Outstanding | 8 years 3 months 10 days | 8 years 3 months 10 days | 8 years 2 months 26 days | 8 years 2 months 26 days |
Exercisable | 7 years 6 months | 8 years 14 days | ||
Aggregate Intrinsic Value | ||||
Outstanding | $ 0 | $ 4,687,000 | ||
Exercisable | $ 0 | |||
Liability Non Performance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 | |
Granted (in shares) | 0 | 253,633 | ||
Forfeited (in shares) | 0 | 0 | ||
Exercised (in shares) | 0 | 0 | ||
Outstanding at the end of period (in shares) | 0 | 253,633 | 0 | 0 |
Options exercisable at end of period (in shares) | 0 | 0 | ||
Weighted Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Granted (in dollars per share) | 0 | 21.38 | ||
Forfeited (in dollars per share) | 0 | 0 | ||
Exercised (in dollars per share) | 0 | 0 | ||
Outstanding at the end of period (in dollars per share) | 0 | 21.38 | $ 0 | $ 0 |
Options exercisable at end of period (in dollars per share) | 0 | $ 0 | ||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0 | |||
Weighted Average Contractual Term | ||||
Outstanding | 9 years 9 months 3 days | |||
Exercisable | ||||
Aggregate Intrinsic Value | ||||
Outstanding | $ 0 | |||
Exercisable | ||||
Unrecognized compensation expense | 0 | |||
Stock option | ||||
Aggregate Intrinsic Value | ||||
Unrecognized compensation expense | $ 3,563,000 | $ 497,000 | $ 2,948,000 | |
Requisite service period to recognize compensation cost | 2 years 4 months 2 days |
Stock-Based Awards - Omnibus _3
Stock-Based Awards - Omnibus Plan - Restricted Stock Units (Details) - 2019 Omnibus Plan - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Non-performance based equity restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 175,688 | 133,455 | |
Granted (in shares) | 95,885 | 66,327 | |
Vested into shares (in shares) | (46,926) | (196,171) | |
Outstanding at the end of the period (in shares) | 224,647 | 3,611 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 21.65 | $ 19.67 | |
Granted (in dollars per share) | 29.10 | 21.38 | |
Vested into shares (in dollars per share) | 28.99 | 23.41 | |
Outstanding at the end of the period (in dollars per share) | $ 24.97 | $ 21.81 | |
Non-performance based liability restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 0 | 0 | |
Granted (in shares) | 0 | 165,739 | |
Vested into shares (in shares) | 0 | 0 | |
Outstanding at the end of the period (in shares) | 0 | 165,739 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | $ 0 | |
Granted (in dollars per share) | 0 | 21.38 | |
Vested into shares (in dollars per share) | 0 | 0 | |
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 21.38 | |
Performance based equity restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 63,727 | 63,988 | |
Granted (in shares) | 39,398 | 29,282 | |
Vested into shares (in shares) | (1,841) | (51,284) | |
Forfeited (in shares) | (14,418) | ||
Outstanding at the end of the period (in shares) | 101,284 | 27,568 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 22.76 | $ 21.28 | |
Granted (in dollars per share) | 29.13 | 21.38 | |
Vested into shares (in dollars per share) | 26.65 | 25.31 | |
Forfeited (in dollars per share) | 26.85 | ||
Outstanding at the end of the period (in dollars per share) | $ 25.22 | $ 23.11 | |
Performance based restricted stock units | |||
Units | |||
Outstanding at the beginning of the period (in shares) | 0 | 0 | |
Granted (in shares) | 0 | 32,249 | |
Vested into shares (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | ||
Outstanding at the end of the period (in shares) | 0 | 32,249 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 0 | $ 0 | |
Granted (in dollars per share) | 0 | 21.38 | |
Vested into shares (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | 0 | ||
Outstanding at the end of the period (in dollars per share) | $ 0 | $ 21.38 | |
Restricted Stock Units | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 7,209,000 | $ 498,000 | $ 4,329,000 |
Requisite service period to recognize compensation cost | 2 years 3 months 18 days | ||
Liability Restricted Stock Units | |||
Additional disclosures | |||
Unrecognized compensation expense | $ 0 |
Stock-Based Awards - Omnibus _4
Stock-Based Awards - Omnibus Plan - Fair Value Options Exercised and Restricted Stock Units Vested (Details) - 2019 Omnibus Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non Performance Based Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-performance-based stock options exercised | $ 943 | $ 315 |
Non-performance based equity restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units vested | 116 | 1,096 |
Performance based equity restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units vested | $ 18 | $ 4,346 |
Stock-Based Awards - Veritex Gr
Stock-Based Awards - Veritex Green Omnibus Plan Options (Details) - Veritex Green Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Non Performance Based Stock Options | |||
Shares Underlying Options | |||
Outstanding at beginning of period (in shares) | 386,969 | 0 | 0 |
Converted in acquisition of Green (in shares) | 304,778 | ||
Granted (in shares) | 31,075 | 211,793 | |
Forfeited (in shares) | (23,736) | ||
Exercised (in shares) | (32,526) | (28,033) | |
Outstanding at the end of period (in shares) | 361,782 | 488,538 | 386,969 |
Options exercisable at end of period (in shares) | 214,342 | 276,745 | |
Weighted Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 19.30 | $ 0 | $ 0 |
Converted in acquisition of Green (in dollars per share) | 15.41 | ||
Granted (in dollars per share) | 29.13 | 21.38 | |
Forfeited (in dollars per share) | 21.38 | ||
Exercised (in dollars per share) | 19.81 | 12.89 | |
Outstanding at the end of period (in dollars per share) | 19.97 | 23.28 | $ 19.30 |
Options exercisable at end of period (in dollars per share) | 17.87 | $ 15.67 | |
Weighted average fair value of options granted during the period (in dollars per share) | $ 29.13 | ||
Weighted Average Contractual Term | |||
Outstanding | 7 years 9 months 7 days | 8 years 4 months 6 days | 7 years 10 months 9 days |
Exercisable | 6 years 11 months 8 days | 7 years 3 months 7 days | |
Aggregate Intrinsic Value | |||
Outstanding | $ 0 | ||
Exercisable | 0 | ||
Stock option | |||
Aggregate Intrinsic Value | |||
Unrecognized compensation expense | $ 1,047 | $ 1,474 | $ 1,062 |
Requisite service period to recognize compensation cost | 1 year 10 months 24 days |
Stock-Based Awards - Veritex _2
Stock-Based Awards - Veritex Green Omnibus Plan Restricted Stock Units (Details) - Veritex Green Omnibus Plan - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Non-performance based equity restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 116,250 | 0 | |
Granted (in shares) | 33,918 | 116,250 | |
Vested into shares (in shares) | (38,744) | ||
Forfeited (in shares) | (3,492) | ||
Outstanding at the end of the period (in shares) | 107,932 | 116,250 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 21.38 | $ 0 | |
Granted (in dollars per share) | 29.13 | 21.38 | |
Vested into shares (in dollars per share) | 29.13 | ||
Forfeited (in dollars per share) | 29.13 | ||
Outstanding at the end of the period (in dollars per share) | $ 24.45 | $ 21.38 | |
Performance based equity restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding at the beginning of the period (in shares) | 25,320 | 0 | |
Granted (in shares) | 8,531 | 26,145 | |
Outstanding at the end of the period (in shares) | 33,851 | 26,145 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 21.38 | $ 0 | |
Granted (in dollars per share) | 29.13 | 21.38 | |
Outstanding at the end of the period (in dollars per share) | $ 23.33 | $ 21.38 | |
Restricted Stock Units | |||
Weighted Average Grant Date Fair Value | |||
Unrecognized compensation expense | $ 2,577 | $ 2,750 | $ 1,991 |
Requisite service period to recognize compensation cost | 2 years |
Stock-Based Awards - Veritex _3
Stock-Based Awards - Veritex Green Omnibus Plan - Fair Value Options Exercised and Restricted Stock Units Vested (Details) - Veritex Green Omnibus Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Non Performance Based Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-performance-based stock options exercised | $ 950 | $ 558 |
Non-performance based equity restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units vested | $ 142 | $ 0 |
Stock-Based Awards - Green Banc
Stock-Based Awards - Green Bancorp Inc. 2010 Option Plan (Details) | 3 Months Ended | |
Mar. 31, 2020planshares | Mar. 31, 2019shares | |
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 | 0 |
Exercise of employee stock options (in shares) | 386,960 | |
Shares outstanding (in shares) | 179,976 | |
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 | |
Shares outstanding (in shares) | 0 | |
Restricted Stock Units | Green Bancorp Inc. 2010 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-option equity instruments, granted (in shares) | 0 | 0 |
Restricted Stock Units | Green Bancorp Inc. 2006 Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-option equity instruments, granted (in shares) | 0 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) for the period | $ (684) | $ 1,989 |
Effective tax rate | (19.80%) | 21.20% |
Net discrete tax benefit | $ 1,388 | |
Effective tax rate excluding discrete tax item | 22.10% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments and Contingencies Disclosure [Abstract] | ||
Qualified affordable housing investment | $ 3,194 | $ 3,292 |
Qualified affordable housing project investments, unfunded commitment | $ 622 | $ 1,091 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Total capital (to risk-weighted assets) | |||
Actual Amount | $ 918,866,000 | $ 917,939,000 | |
Actual Ratio (as a percent) | 12.48% | 13.10% | |
For Capital Adequacy Purposes Amount | $ 589,017,000 | $ 560,573,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | |
Tier 1 capital (to risk-weighted assets) | |||
Actual Amount | $ 730,461,000 | $ 771,679,000 | |
Actual Ratio (as a percent) | 9.92% | 11.02% | |
For Capital Adequacy Purposes Amount | $ 441,811,000 | $ 420,152,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | |
Common equity tier 1 to risk-weighted assets | |||
Actual Amount | $ 701,401,000 | $ 742,675,000 | |
Actual Ratio (as a percent) | 9.53% | 10.60% | |
For Capital Adequacy Purposes Amount | $ 331,197,000 | $ 315,287,000 | |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | |
Tier 1 capital (to average assets) | |||
Actual Amount | $ 730,461,000 | $ 771,679,000 | |
Actual Ratio (as a percent) | 9.49% | 10.17% | |
For Capital Adequacy Purposes Amount | $ 307,887,000 | $ 303,512,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | |
Capital conservation buffer | 4.37% | ||
Dividends paid | $ 8,728,000 | $ 6,816,000 | |
Bank | |||
Total capital (to risk-weighted assets) | |||
Actual Amount | $ 912,112,000 | $ 870,838,000 | |
Actual Ratio (as a percent) | 12.37% | 12.44% | |
For Capital Adequacy Purposes Amount | $ 589,887,000 | $ 560,024,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 8.00% | 8.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 737,358,000 | $ 700,031,000 | |
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 | $ 834,035,000 | $ 840,126,000 | |
Actual Ratio (as a percent) | 11.31% | 12.00% | |
For Capital Adequacy Purposes Amount | $ 442,459,000 | $ 420,063,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 6.00% | 6.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 589,945,000 | $ 560,084,000 | |
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 | |||
Actual Amount | $ 834,035,000 | $ 840,126,000 | |
Actual Ratio (as a percent) | 11.31% | 12.00% | |
For Capital Adequacy Purposes Amount | $ 331,844,000 | $ 315,047,000 | |
For Capital Adequacy Purposes Amount (as a percent) | 4.50% | 4.50% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 479,330,000 | $ 455,068,000 | |
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 | $ 834,035,000 | $ 840,126,000 | |
Actual Ratio (as a percent) | 10.83% | 11.07% | |
For Capital Adequacy Purposes Amount | $ 308,046,000 | $ 303,569,000 | |
For Capital Adequacy Purposes Ratio (as a percent) | 4.00% | 4.00% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 385,058,000 | $ 379,461,000 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 5.00% | 5.00% | |
Dividends paid | $ 8,728,000 | $ 25,000,000 | |
Dividends paid (in dollars per share) | $ 0.17 |