Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 25, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36682 | ||
Entity Registrant Name | Veritex Holdings, Inc. | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 27-0973566 | ||
Entity Address, Address Line One | 8214 Westchester Drive, Suite 800 | ||
Entity Address, City or Town | Dallas | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75225 | ||
City Area Code | 972 | ||
Local Phone Number | 349 6200 | ||
Title of 12(b) Security | Common Stock, par value $0.01 | ||
Trading Symbol | VBTX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,704,897,000 | ||
Entity Common Stock, Shares Outstanding | 49,582,605 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2021. | ||
Entity Central Index Key | 0001501570 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | GRANT THORNTON LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 248 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 44,023 | $ 44,337 |
Interest bearing deposits in other banks | 335,761 | 186,488 |
Total cash and cash equivalents | 379,784 | 230,825 |
Debt securities available-for-sale ("AFS"), at fair value | 993,058 | 1,024,329 |
Debt securities held-to-maturity ("HTM") (fair value of $61,446 and $34,283 at December 31, 2021 and 2020, respectively) | 59,436 | 30,872 |
Equity securities | 15,393 | 14,938 |
Securities purchased under agreement to resell | 102,288 | 0 |
Investment in unconsolidated subsidiaries | 1,018 | 1,018 |
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("FRB") stock | 71,892 | 71,236 |
Total investments | 1,243,085 | 1,142,393 |
Loans held for sale | 26,007 | 21,414 |
Loans held for investment ("LHI"), Paycheck Protection Program ("PPP") loans, carried at fair value | 53,369 | 358,042 |
LHI, mortgage warehouse ("MW") | 565,645 | 577,594 |
LHI, excluding MW and PPP | 6,766,009 | 5,847,862 |
Less: Allowance for credit losses ("ACL") | (77,754) | (105,084) |
Total LHI, net | 7,307,269 | 6,678,414 |
Bank-owned life insurance | 83,194 | 82,855 |
Bank premises, furniture and equipment, net | 109,271 | 115,063 |
Other real estate owned ("OREO") | 0 | 2,337 |
Intangible assets, net of accumulated amortization | 66,017 | 61,733 |
Goodwill | 403,771 | 370,840 |
Other assets | 138,851 | 114,997 |
Total assets | 9,757,249 | 8,820,871 |
Deposits: | ||
Noninterest-bearing deposits | 2,510,723 | 2,097,099 |
Interest-bearing transaction and savings deposits | 3,276,312 | 2,958,456 |
Certificates and other time deposits | 1,576,580 | 1,457,291 |
Total deposits | 7,363,615 | 6,512,846 |
Accounts payable and other liabilities | 69,160 | 61,928 |
Advances from FHLB | 777,562 | 777,718 |
Subordinated debentures and subordinated notes | 227,764 | 262,778 |
Securities sold under agreement to repurchase | 4,069 | 2,225 |
Total liabilities | 8,442,170 | 7,617,495 |
Commitments and contingencies (Note 16 and Note 18) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 75,000,000 shares authorized at December 31, 2021 and December 31, 2020; 56,010,423 and 55,500,118 shares issued at December 31, 2021 and December 31, 2020, respectively; 49,372,329 and 49,337,768 shares outstanding at December 31, 2021 and December 31, 2020, respectively. | 560 | 555 |
Additional paid-in capital | 1,142,758 | 1,126,437 |
Retained earnings | 275,273 | 172,232 |
Accumulated other comprehensive income | 64,070 | 56,225 |
Treasury stock, 6,638,094 and 6,162,350 shares at cost at December 31, 2021 and 2020, respectively | (167,582) | (152,073) |
Total stockholders’ equity | 1,315,079 | 1,203,376 |
Total liabilities and stockholders’ equity | $ 9,757,249 | $ 8,820,871 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Fair value | $ 61,446 | $ 34,283 |
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) | 56,010,423 | 55,500,118 |
Common stock, shares outstanding (in shares) | 49,372,329 | 49,337,768 |
Treasury stock, shares (in shares) | 6,638,094 | 6,162,350 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Interest income: | |||
Loans, including fees | $ 280,526 | $ 286,583 | $ 340,813 |
Debt securities | 32,132 | 30,726 | 29,484 |
Deposits in financial institutions and Fed Funds sold | 589 | 1,221 | 5,540 |
Equity securities and other investments | 3,237 | 3,320 | 2,949 |
Total interest and dividend income | 316,484 | 321,850 | 378,786 |
Interest expense: | |||
Transaction and savings deposits | 6,858 | 13,233 | 40,355 |
Certificates and other time deposits | 9,079 | 23,678 | 38,675 |
Advances from FHLB | 7,336 | 10,609 | 9,984 |
Subordinated debentures and subordinated notes | 12,428 | 8,532 | 4,675 |
Total interest expense | 35,701 | 56,052 | 93,689 |
Net interest income | 280,783 | 265,798 | 285,097 |
(Benefit) provision for credit losses | (3,349) | 56,640 | 21,514 |
(Benefit) provision for credit losses on unfunded commitments | (1,481) | 9,029 | 0 |
Net interest income after provision for credit losses | 285,613 | 200,129 | 263,583 |
Noninterest income: | |||
Service charges and fees on deposit accounts | 16,742 | 13,703 | 14,334 |
Loan fees | 7,607 | 4,556 | 7,782 |
(Loss) gain on sales of securities | (188) | 2,615 | (1,852) |
Gain on sale of mortgage loans held for sale | 1,592 | 1,239 | 475 |
Government guaranteed loan income, net | 15,760 | 14,150 | 4,709 |
Equity method investment income | 5,760 | 0 | 0 |
Other | 11,132 | 11,081 | 4,632 |
Total noninterest income | 58,405 | 47,344 | 30,080 |
Noninterest expense: | |||
Salaries and employee benefits | 94,748 | 79,453 | 72,791 |
Occupancy and equipment | 17,263 | 16,363 | 16,385 |
Professional and regulatory fees | 12,945 | 11,729 | 11,597 |
Data processing and software expense | 9,946 | 9,213 | 8,365 |
Marketing | 5,344 | 3,651 | 3,259 |
Amortization of intangibles | 10,057 | 10,790 | 10,887 |
Telephone and communications | 1,434 | 1,312 | 1,847 |
Merger and acquisition expense | 826 | 0 | 38,960 |
COVID expenses | 0 | 1,377 | 0 |
Debt extinguishment costs | 0 | 11,307 | 0 |
Other | 15,149 | 14,192 | 13,712 |
Total noninterest expense | 167,712 | 159,387 | 177,803 |
Income before income tax expense | 176,306 | 88,086 | 115,860 |
Income tax expense | 36,722 | 14,203 | 25,121 |
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Basic earnings per share (in USD per share) | $ 2.83 | $ 1.48 | $ 1.71 |
Diluted earnings per share (in USD per share) | $ 2.77 | $ 1.48 | $ 1.68 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Net unrealized (losses) gains on debt securities AFS: | |||
Change in net unrealized (losses) gains on debt securities AFS during the period, net | (23,596) | 35,400 | 24,091 |
Reclassification adjustment for net losses (gains) included in net income | 188 | (2,623) | 1,852 |
Net unrealized (losses) gains on securities available-for-sale | (23,408) | 32,777 | 25,943 |
Net unrealized gains on derivative instruments designated as cash flow hedges | 33,338 | 14,657 | 1,497 |
Other comprehensive income, before tax | 9,930 | 47,434 | 27,440 |
Income tax expense | 2,085 | 10,270 | 5,449 |
Other comprehensive income, net of tax | 7,845 | 37,164 | 21,991 |
Comprehensive income | $ 147,429 | $ 111,047 | $ 112,730 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | 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 (in shares) | 29,532,957 | 29,532,957 | |||||||||
Issuance of common shares in connection with the acquisition of Green Bancorp, Inc | $ 630,627 | $ 295 | $ 630,332 | ||||||||
Restricted stock units vested, net (in shares) | 246,303 | 497,594 | |||||||||
Restricted stock units vested, net | (1,346) | $ 3 | (1,349) | $ 12,484 | $ 5 | $ 12,479 | |||||
Exercise of employee stock options (in shares) | 335,832 | ||||||||||
Exercise of employee stock options | 3,938 | $ 3 | 3,935 | ||||||||
Stock buyback (in shares) | (3,802,711) | (3,802,711) | |||||||||
Stock buyback | (94,533) | $ (94,533) | |||||||||
Stock based compensation | 21,652 | 21,652 | |||||||||
Reclassification of liability-classified awards to equity awards | 1,403 | 1,403 | |||||||||
Net income | 90,739 | 90,739 | |||||||||
Dividends paid | (26,796) | (26,796) | |||||||||
Other comprehensive income | 21,991 | 21,991 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 51,063,869 | 3,812,711 | |||||||||
Ending balance at Dec. 31, 2019 | $ 1,190,797 | $ (15,505) | $ 549 | $ (94,603) | 1,117,879 | 147,911 | $ (15,505) | 19,061 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 | ||||||||||
Restricted stock units vested, net (in shares) | 111,558 | ||||||||||
Restricted stock units vested, net | $ (665) | $ 1 | (666) | ||||||||
Exercise of employee stock options (in shares) | 501,980 | ||||||||||
Exercise of employee stock options | 1,137 | $ 5 | 1,132 | ||||||||
Stock warrants exercised (in shares) | 10,000 | ||||||||||
Stock warrants exercised | 109 | 109 | |||||||||
Stock buyback (in shares) | (2,349,639) | (2,349,639) | |||||||||
Stock buyback | (57,470) | $ (57,470) | |||||||||
Stock based compensation | 7,983 | 7,983 | |||||||||
Net income | 73,883 | 73,883 | |||||||||
Dividends paid | (34,057) | (34,057) | |||||||||
Other comprehensive income | $ 37,164 | 37,164 | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 49,337,768 | 49,337,768 | 6,162,350 | ||||||||
Ending balance at Dec. 31, 2020 | $ 1,203,376 | $ 555 | $ (152,073) | 1,126,437 | 172,232 | 56,225 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Restricted stock units vested, net (in shares) | 118,454 | ||||||||||
Restricted stock units vested, net | (577) | $ 2 | (579) | ||||||||
Exercise of employee stock options (in shares) | 376,851 | ||||||||||
Exercise of employee stock options | 6,165 | $ 3 | 6,162 | ||||||||
Stock warrants exercised (in shares) | 15,000 | ||||||||||
Stock warrants exercised | 165 | 165 | |||||||||
Stock buyback (in shares) | (475,744) | (475,744) | |||||||||
Stock buyback | (15,509) | $ (15,509) | |||||||||
Stock based compensation | 10,573 | 10,573 | |||||||||
Net income | 139,584 | 139,584 | |||||||||
Dividends paid | (36,543) | (36,543) | |||||||||
Other comprehensive income | $ 7,845 | 7,845 | |||||||||
Ending balance (in shares) at Dec. 31, 2021 | 49,372,329 | 49,372,329 | 6,638,094 | ||||||||
Ending balance at Dec. 31, 2021 | $ 1,315,079 | $ 560 | $ (167,582) | $ 1,142,758 | $ 275,273 | $ 64,070 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Green Bancorp, Inc. | |||
Offering costs | $ 788 | ||
Restricted stock units | |||
Shares withheld to cover tax withholdings (in shares) | 23,613 | 22,404 | 55,946 |
Restricted stock units | Green Bancorp, Inc. | |||
Shares withheld to cover tax withholdings (in shares) | 25,872,000 | ||
Employee Stock Option | |||
Shares withheld to cover tax withholdings (in shares) | 13,015 | 100,400 | 13,709 |
Shares paid for cashless exercise (in shares) | 71,089 | 145,044 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and intangibles | 15,731 | 15,832 | 15,933 |
Net accretion of time deposit premium, debt discount and debt issuance costs | (713) | (1,735) | (8,950) |
(Benefit) provision for credit losses | (4,830) | 65,669 | 21,514 |
Accretion of loan discount | (7,193) | (14,060) | (28,603) |
Stock-based compensation expense | 10,573 | 7,983 | 21,652 |
Deferred tax expense (benefit) | 4,647 | (9,384) | 9,053 |
Compensation expense - liability-classified awards | 0 | 0 | 1,403 |
Excess tax (benefit) expense from stock compensation | (838) | (1,435) | 205 |
Net amortization of premiums on debt securities | 2,885 | 3,236 | 2,875 |
Unrealized loss (gain) on equity securities recognized in earnings | 325 | (480) | (325) |
Change in cash surrender value and mortality rates of Bank Owned Life Insurance ("BOLI") | (339) | (1,940) | (2,010) |
Net loss (gain) on sales of securities | 188 | (2,615) | 1,852 |
Change in fair value of government guaranteed loans using fair value option | (1,845) | 2,040 | (303) |
Gain on sales of mortgage loans held for sale | (1,592) | (1,239) | (475) |
Gain on sales of government guaranteed loans | (6,194) | (3,379) | (4,388) |
Originations of loans held for sale | (119,989) | (132,842) | (37,166) |
Proceeds from sales of loans held for sale | 112,606 | 125,375 | 34,483 |
Net impairment on servicing asset | 71 | 368 | 188 |
Loss (gain) on sales of OREO | 416 | (693) | 0 |
Equity method investment income | (5,760) | 0 | 0 |
Termination of derivatives designated as hedging instruments | 43,900 | 0 | 0 |
Loss on sale of branches | 0 | 0 | 474 |
Gain on sale of bank premises, furniture and equipment | 0 | (358) | 0 |
(Increase) decrease in other assets | 11,139 | (20,546) | 2,196 |
Increase (decrease) in accounts payable and other liabilities | 719 | 3,970 | (16,387) |
Net cash provided by operating activities | 193,491 | 107,650 | 103,960 |
Cash flows from investing activities: | |||
Net cash (paid) received for acquisitions | (55,522) | 0 | 112,710 |
Cash settlement for sale of held for sale branches | 0 | 0 | 7,153 |
Purchases of AFS debt securities | (201,385) | (1,175,050) | (745,297) |
Proceeds from sales of AFS debt securities | 13,300 | 113,771 | 567,718 |
Proceeds from maturities, calls and pay downs of AFS debt securities | 193,227 | 1,033,779 | 131,788 |
Purchases of HTM debt securities | (32,286) | 0 | (8,084) |
Maturity, calls and paydowns on HTM debt securities | 3,370 | 1,793 | 1,249 |
Purchases of equity method securities | (54,970) | (2,888) | (23,577) |
Purchases of other investments | (1,436) | 0 | 0 |
Purchases of securities under agreements to resell | (102,288) | 0 | 0 |
Proceeds from sales of equity securities | 0 | 221 | 0 |
Net loans originated | (626,512) | (897,455) | (151,559) |
Proceeds from sale of government guaranteed loans | 44,912 | 44,867 | 69,218 |
Net additions to bank premises, furniture and equipment | (13,575) | (2,864) | (7,658) |
Proceeds from sales of bank premises, furniture and equipment | 14,551 | 2,157 | 0 |
Proceeds from sales of OREO and repossessed assets | 2,225 | 7,114 | 0 |
Net cash used in investing activities | (816,389) | (874,555) | (46,339) |
Cash flows from financing activities: | |||
Net increase (decrease) in deposits | 851,468 | 619,380 | (195,761) |
Net (decrease) increase in advances from FHLB | (156) | 99,848 | 349,851 |
Redemption of subordinated debt | (35,000) | (5,000) | 0 |
Proceeds from issuance of subordinated notes, net of debt issuance costs paid | 0 | 123,026 | 75,000 |
Net change in securities sold under agreement to repurchase | 1,844 | (128) | (873) |
Proceeds from exercise of employee stock options | 6,313 | 4,301 | 3,938 |
Payments to tax authorities for stock-based compensation | (725) | (3,829) | (1,346) |
Proceeds from exercise of stock warrants | 165 | 109 | 0 |
Purchase of treasury stock | (15,509) | (57,470) | (94,533) |
Dividends paid | (36,543) | (34,057) | (26,796) |
Net cash provided by financing activities | 771,857 | 746,180 | 109,480 |
Net increase (decrease) in cash and cash equivalents | 148,959 | (20,725) | 167,101 |
Cash and cash equivalents at beginning of year | 230,825 | 251,550 | 84,449 |
Cash and cash equivalents at end of year | $ 379,784 | $ 230,825 | $ 251,550 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Organization and Basis of Presentation In this report, the words, "Veritex," "the Company," "we," "us," and "our" refer to the combined entities of Veritex Holdings, Inc. and its subsidiaries, including Veritex Community Bank. The word "Holdco" refers to Veritex Holdings, Inc.. The words "the Bank" refers to Veritex Community Bank. The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. generally accepted accounting principles (“GAAP”) and prevailing practices of the banking industry. Intercompany transactions and balances are eliminated in consolidation. Veritex is a Texas state banking organization, with corporate offices in Dallas, Texas, and currently operates 18 branches located in the Dallas-Fort Worth metroplex and 10 branches in the Houston metropolitan area. The Bank provides a full range of banking services to individual and corporate customers, which include commercial and retail lending, and the acceptance of checking and savings deposits. The Texas Department of Banking (the "TDB") and the Board of Governors of the Federal Reserve System (the "Federal Reserve") are the primary regulators of the Company and the Bank, and both regulatory agencies perform periodic examinations to ensure regulatory compliance. Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. Reclassifications Certain items in the Company's prior year financial statements were reclassified to conform to the current presentation including the reclassification on the consolidated statements of income from rental income to other income of $2,179 and $2,172 during the years ended December 31, 2020 and 2019, respectively. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. Cash and Cash Equivalents Cash and cash equivalents include amounts due from banks, interest-bearing deposits in other banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. Restrictions on Cash The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. On March 15, 2020, the Board of Governors of the Federal Reserve System announced that it had reduced the required regulatory reserve balance to 0% effective on March 26, 2020. The Board of Governors took this action in reaction to the economic dislocation caused by the COVID-19 pandemic and in light of the Federal Open Markets Committee's announcement in 2019 that it intends to implement monetary policy in an ample reserve regime, where reserve requirements do not play a role. Debt Securities Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as HTM 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 AFS and are carried at fair value. Unrealized gains and losses on debt securities classified as AFS have been accounted for as accumulated other comprehensive income (loss), net of taxes. Management determines the appropriate classification of debt 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. 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 years ended December 31, 2021, 2020 and 2019. Equity Securities Equity securities are recorded at fair value, with unrealized gains and losses included in other noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for equity securities and other investments. Realized gains and losses are recorded on the sale of equity securities in gain (loss) on sales of securities. The Company recorded no impairment for equity securities without a readily determinable fair value for the years ended December 31, 2021 and 2020. ACL – AFS Debt Securities For AFS 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 AFS 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 benefit of) credit loss expense. Losses are charged against the allowance when management believes the non-collectability of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL – HTM Debt Sec u ri ti es Management measures expected credit losses on HTM 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 HTM debt securities is excluded from the estimate of credit losses . Management classifies the HTM 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 debt 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 . FHLB and FRB Stock The Bank is a member of its regional FRB and of the FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are recorded in interest income for equity securities and other investments. Loans Held for Sale Loans are classified as held-for-sale when management has positively determined that the loans will be sold in the foreseeable future and the Company has the intent and ability to do so. The Company’s held-for-sale loans typically consist of certain government guaranteed loans or mortgage loans. The classification may be made upon origination or subsequent to origination or purchase. Once a decision has been made to sell loans not previously classified as held-for-sale, such loans are transferred into the held-for-sale classification and carried at the lower of cost or estimated fair value on an individual loan basis, except for those held-for-sale loans for which the Company elects to use the fair value option. The fair value of loans held-for-sale is based on commitments from investors or prevailing market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Mortgage loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. Fair Value Option On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. As of December 31, 2021, the Company had held for sale government guaranteed loans and held for investment PPP loans that the Company has elected to carry at fair value. Changes in fair value for instruments using the fair value option are recorded in noninterest income. The Company had a decrease in fair value for loans the Company elected to carry at fair value of $1,845 for the year ended December 31, 2021 as compared to a decrease in the fair value for loans the Company elected to carry at fair value of $2,040 for the year ended December 31, 2020. There was an increase of $303 in fair value for loans held for sale using the fair value option for the year ended December 31, 2019. In addition, the Company records upfront costs and fees as incurred that are related to items for which the fair value option is elected through noninterest income. For the years ended December 31, 2021 and 2020, the Company recognized upfront fees of $7,721 and $12,811 on PPP loans through government guaranteed loan income, net, on the consolidated statements of income, respectively. There were minimal upfront fees recognized on loans electing the fair value option for the years ended December 31, 2019. Gain on Sale of Guaranteed Portion of Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") Loans The Company originates loans to customers under government guaranteed programs that generally provide for guarantees of 50% to 90% of each loan, subject to a maximum guaranteed amount. The Company can sell the guaranteed portion of the loan in an active secondary market and retains the unguaranteed portion in its portfolio. All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under FASB ASC 860, Transfers and Servicing, requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in government guaranteed loan income, net on the consolidated statements of income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $6,194, $3,379, and $4,388, respectively, of gain on sales of government guaranteed loans. Gain on Sale of Mortgage Loans Held for Sale Certain mortgage loans held for sale are sold with servicing released. Gains and losses on sales of mortgage loans held for sale are based on the difference between the selling price and the carrying value of the loan sold. Adoption of New Accounting Standard 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 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, ASC 326 made changes to the accounting for AFS 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 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: ACL on debt securities HTM $ — $ — $ — ACL 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 ("OOCRE") 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate ("NOOCRE") 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 ACL on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: ACL on OBS credit exposures $ 1,718 $ 878 $ 840 LHI 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 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 nonaccrual status regardless of whether or not such loans are considered past due. When a loan is placed on nonaccrual 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 PCI. 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 for all applicable areas of accounting which include credit loss measurement, interest income recognition, non-accrual determination, write-off determination and trouble debt restructuring identification. 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 for credit loss 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. ACL - Loans The ACL is a valuation account that is deducted from the LHI amortized cost basis to present the net amount expected to be collected on LHI. The Company estimates the ACL on loan held for investment 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 provision for 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, or 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 uses a probability of default/loss given default (“PD/LGD”) model to estimate expected credit losses for our PCD loans and pools acquired prior to January 1, 2020. 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 CRE as they are more sensitive to adverse economic conditions. 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. 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 similar 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 costs 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 LHI 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 CRE, construction and 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 speeds, curtailment rates, 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 analys |
Supplemental Statement of Cash
Supplemental Statement of Cash Flows | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Statement of Cash Flows | Supplemental Statement of Cash FlowsOther supplemental cash flow information is presented below: Year Ended December 31, 2021 2020 2019 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 37,139 $ 58,236 $ 88,175 Cash paid for income taxes 14,349 40,690 24,100 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability $ 6,232 $ 4,123 $ 9,380 Contingent consideration in connection with acquisitions 5,000 — — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital — — 788 Subordinated debt issuance costs accrued but not yet paid in 2019 — — 315 Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 — — (48) Net foreclosure of OREO and repossessed assets 334 2,764 5,995 LHI transferred to loans held for sale 10,890 4,511 — Reclassification of branch assets held for sale to LHI — — 26,171 Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits — — 1,713 Year Ended December 31, 2021 2020 2019 Noncash assets acquired 1 Debt securities $ — $ — $ 660,792 Equity securities — — 12,322 FHLB and FRB stock — — 29,490 Loans held for sale — — 9,360 LHI 29,338 — 3,245,248 Accrued interest receivable 2 — — 11,395 Bank-owned life insurance — — 56,841 Bank premises, furniture and equipment — — 36,855 Investment in unconsolidated subsidiaries — — 666 Other real estate owned — — — Intangible assets, net 13,913 — 65,718 Goodwill 32,931 — 209,393 Other assets 690 — 11,124 Right of use asset 2 — — 9,373 Deferred taxes 2 — — 11,783 Current taxes 2 — — 1,812 Assets held for sale — — 85,307 Total assets $ 76,872 $ — $ 4,457,479 Noncash liabilities assumed 1 Noninterest-bearing deposits $ — $ — $ 825,364 Interest-bearing deposits — — 1,300,825 Certificates and other time deposits — — 1,346,915 Accounts payable and other liabilities 16,350 — 26,491 Lease liability 3 — — 9,373 Accrued interest payable — — 5,181 Securities sold under agreements to repurchase — — 3,226 Advances from FHLB — — 300,000 Subordinated debentures and subordinated notes — — 56,233 Liabilities held for sale — — 52,682 Total liabilities $ 16,350 $ — $ 3,926,290 Total equity 29,532,957 shares of common stock exchanged in connection with Green $ — $ — $ 631,415 497,594 share of common stock exchanged in connection with Green vested RSUs $ — $ — $ 5,801 1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of NAC and 2019 related to our acquisition of Green. 2 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 3 Lease liability is included in "Accounts payable and other liabilities" in the Company's consolidated balance sheets for the year ended December 31, 2019. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2019-12, "Income Taxes (Topic 740)" ("ASU 2019-12") simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. ASU 2019-12 was effective for us on January 1, 2021 and did not have a significant impact on our consolidated financial statements and related disclosures. ASU 2020-04, " Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 did not significantly impact our consolidated financial statements and related disclosures. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs ("ASU 2020-08") clarifies the accounting for the amortization of purchase premiums for callable debt securities with multiple call dates. ASU 2020-08 was effective for us on January 1, 2021 and did not have a significant impact on our consolidated financial statements and related disclosures. |
Share Transactions
Share Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Share Transactions | Share Transactions The Company's Board of Directors (the “Board”) has authorized the purchase of up to $250,000 of the Company's outstanding common stock under a stock buyback program (the "Stock Buyback Program") with an expiration date of December 31, 2022. The shares may be repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission (“SEC”). The Stock Buyback Program does not obligate the Company to purchase any shares. The Stock Buyback Program may be terminated or amended by the Board at any time prior to its expiration. Year Ended December 31, 2021 2020 Number of shares repurchased 475,744 2,349,639 Weighted average price per share $ 32.36 $ 24.51 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Equity Securities With a Readily Determinable Fair Value The Company held equity securities with a fair value of $11,038 and $11,363 at December 31, 2021 and 2020, respectively. No gains or losses on equity securities with a readily determinable fair value were realized during the year ended December 31, 2021 or 2019. The Company realized a loss of $8 on equity securities with a readily determinable fair value during the year ended December 31, 2020. The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows: 2021 2020 2019 Unrealized (loss) gain recognized on equity securities with a readily determinable fair value $ (325) $ 480 $ 325 Equity Securities Without a Readily Determinable Fair Value The Company held equity securities without a readily determinable fair values and measured at cost of $4,355 and $3,575 at December 31, 2021 and 2020, respectively. Debt Securities Debt securities have been classified in the consolidated balance sheets according to management’s intent. The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows: December 31, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 198,396 $ 10,294 $ 178 $ — $ 208,512 Municipal securities 116,100 8,261 431 — 123,930 Mortgage-backed securities 124,230 4,326 1,489 — 127,067 Collateralized mortgage obligations 424,174 12,240 2,350 — 434,064 Asset-backed securities 53,466 1,616 519 — 54,563 Collateralized loan obligations 45,089 — 167 — 44,922 $ 961,455 $ 36,737 $ 5,134 $ — $ 993,058 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value HTM Mortgage-backed securities $ 25,767 $ 45 $ 508 $ — $ 25,304 Collateralized mortgage obligations 5,490 560 — — 6,050 Municipal securities 28,179 2,015 102 — 30,092 $ 59,436 $ 2,620 $ 610 $ — $ 61,446 The Company did not transfer any debt securities from AFS to HTM at fair value during the year ended December 31, 2021. December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 173,050 $ 6,417 $ 1,297 $ — $ 178,170 Municipal securities 115,533 10,129 6 — 125,656 Mortgage-backed securities 240,320 16,047 42 — 256,325 Collateralized mortgage obligations 388,080 20,895 66 — 408,909 Asset-backed securities 52,335 2,934 — — 55,269 $ 969,318 $ 56,422 $ 1,411 $ — $ 1,024,329 Gross Gross Amortized Unrealized Unrealized HTM Cost Gains Losses ACL Fair Value Mortgage-backed securities $ 6,982 $ 849 $ — $ — $ 7,831 Collateralized mortgage obligations 1,620 103 — — 1,723 Municipal securities 22,270 2,459 — — 24,729 $ 30,872 $ 3,411 $ — $ — $ 34,283 The following tables disclose the Company’s AFS debt securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position: December 31, 2021 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 7,072 $ 178 $ — $ — $ 7,072 $ 178 Municipal securities 12,704 194 4,350 237 17,054 431 Mortgage-backed securities 40,276 1,283 4,677 206 44,953 1,489 Collateralized mortgage obligations 106,063 2,350 — — 106,063 2,350 Asset-backed securities 11,265 519 — — 11,265 519 Collateralized loan obligations 44,922 167 — — 44,922 167 $ 222,302 $ 4,691 $ 9,027 $ 443 $ 231,329 $ 5,134 HTM Mortgage-backed securities $ 24,214 $ 508 $ — $ — $ 24,214 $ 508 Municipal securities 4,583 102 — — 4,583 102 $ 28,797 $ 610 $ — $ — $ 28,797 $ 610 December 31, 2020 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 31,953 $ 1,297 $ — $ — $ 31,953 $ 1,297 Municipal securities 2,667 6 — — 2,667 6 Mortgage-backed securities 34,402 108 — — 34,402 108 $ 69,022 $ 1,411 $ — $ — $ 69,022 $ 1,411 Management evaluates AFS 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 AFS debt securities in an unrealized loss position totaled 34 and 11 at December 31, 2021 and December 31, 2020, 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 December 31, 2021, 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 consolidated statements of income. The amortized costs and estimated fair values of AFS debt securities, 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. December 31, 2021 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 5,201 $ 5,241 $ — $ — Due from five years to ten years 178,203 186,972 3,849 4,115 Due after ten years 131,092 140,229 24,330 25,977 314,496 332,442 28,179 30,092 Mortgage-backed securities and collateralized mortgage obligations 548,404 561,131 31,257 31,354 Asset-backed securities 53,466 54,563 — — Collateralized loan obligations 45,089 44,922 — — $ 961,455 $ 993,058 $ 59,436 $ 61,446 December 31, 2020 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 4,935 $ 5,139 $ — $ — Due from five years to ten years 154,576 158,510 3,334 3,591 Due after ten years 129,072 140,177 18,936 21,138 288,583 303,826 22,270 24,729 Mortgage-backed securities and collateralized mortgage obligations 628,400 665,234 8,602 9,554 Asset-backed securities 52,335 55,269 — — $ 969,318 $ 1,024,329 $ 30,872 $ 34,283 Proceeds from sales of debt securities AFS and gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 were as follows: December 31, 2021 2020 2019 Proceeds from sales $ 13,300 $ 113,771 $ 567,718 Gross realized gains — 2,879 532 Gross realized losses 188 256 2,384 |
LHI and ACL
LHI and ACL | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
LHI and ACL | LHI and ACL LHI in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 LHI, carried at amortized cost: Real estate: Construction and land $ 1,062,144 $ 693,030 Farmland 55,827 13,844 1 - 4 family residential 542,566 524,344 Multi-family residential 310,241 424,962 OOCRE 665,537 717,472 NOOCRE 2,120,309 1,904,132 Commercial 2,006,876 1,559,546 MW 565,645 577,594 Consumer 11,998 13,000 7,341,143 6,427,924 Deferred loan fees, net (9,489) (2,468) ACL (77,754) (105,084) LHI carried at amortized cost, net $ 7,253,900 $ 6,320,372 LHI, carried at fair value: PPP Loans $ 53,369 $ 358,042 Total LHI, net $ 7,307,269 $ 6,678,414 Included in the total LHI, net, as of December 31, 2021 and 2020 is an accretable discount related to purchased performing and PCD loans acquired within a business combination in the approximate amounts of $8,657 and $15,526, respectively. The discount is being accreted into income on a level-yield basis over the life of the loans. In addition, included in total LHI, net, as of December 31, 2021 and 2020 is a discount on retained loans from sale of originated SBA loans of $3,430 and $3,215, respectively. LHI, PPP loans, carried at fair value Included in total LHI, net, as of December 31, 2021 and 2020, was $53,369 and $358,042, respectively, of PPP loans, which are carried at fair value. The following table summarizes the PPP fee income and net gain (loss) due to the change in the fair value of PPP loans which are included in government guaranteed loan income, net on the Company's consolidated statements of income and in change in fair value of government guaranteed loans using fair value option on the Company's consolidated statements of cash flows. December 31, 2021 December 31, 2020 PPP fee income $ 7,721 $ 12,811 Net gain (loss) due to the change in fair value 1,531 (1,799) These PPP loans were originated through an application to the SBA under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act and are 100% forgivable if certain criteria are met by the borrowers. As of December 31, 2021 we believe a majority of the Company’s PPP loans will meet such criteria. ACL 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 LHI is as follows: December 31, 2021 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 7,768 $ 56 $ 8,148 $ 6,231 $ 9,719 $ 35,237 $ 37,554 $ 371 $ 105,084 Credit loss (benefit) expense non-PCD loans (547) 131 (2,153) (3,567) (2,325) (7,490) (9,510) (401) (25,862) Credit loss expense PCD loans 72 — 302 — 3,721 10,737 7,622 59 22,513 Charge-offs — — (379) — (2,400) (7,936) (15,576) (99) (26,390) Recoveries — — 64 — 500 — 1,542 303 2,409 Ending Balance $ 7,293 $ 187 $ 5,982 $ 2,664 $ 9,215 $ 30,548 $ 21,632 $ 233 $ 77,754 December 31, 2020 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 3,821 $ 62 $ 2,143 $ 1,200 $ 1,991 $ 8,126 $ 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 4,554 (10) 1,720 4,403 4,364 15,397 24,413 (178) 54,663 Credit loss expense PCD loans (545) — (378) — (5,303) 7,404 817 (18) 1,977 Charge-offs — — (18) — (2,421) (2,865) (15,507) (162) (20,973) Recoveries — — 57 — — — 102 287 446 Ending Balance $ 7,768 $ 56 $ 8,148 $ 6,231 $ 9,719 $ 35,237 $ 37,554 $ 371 $ 105,084 December 31, 2019 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 2,186 $ 58 $ 1,614 $ 361 $ 1,393 $ 5,070 $ 8,554 $ 19 $ 19,255 Credit Loss Expense 1,635 4 619 839 598 3,056 14,487 276 21,514 Charge-offs — — (157) — — — (10,898) (265) (11,320) Recoveries — — 67 — — — 226 92 385 Ending Balance $ 3,821 $ 62 $ 2,143 $ 1,200 $ 1,991 $ 8,126 $ 12,369 $ 122 $ 29,834 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 December 31, 2021 and 2020. A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. 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 December 31, 2021: December 31, 2021 December 31, 2020 Real Property (1) ACL Allocation Real Property (1) ACL Allocation Real estate: 1 - 4 family residential $ — $ — $ 199 $ 11 NOOCRE 17,908 7,808 16,080 — Commercial 1,702 — 8,666 4,668 Consumer 1,063 — 143 50 Total $ 20,673 $ 7,808 $ 25,088 $ 4,729 (1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis. Refer to Note 1 for further discussion. Nonaccrual and Past Due Loans Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual 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 nonaccrual 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. Nonaccrual loans, aggregated by class of loans, as of December 31, 2021 and 2020, were as follows: December 31, December 31, Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Real estate: 1 - 4 family residential $ 990 $ 990 $ 3,308 $ 3,199 OOCRE 14,236 13,824 6,266 5,645 NOOCRE 17,978 191 40,830 19,213 Commercial 15,267 4,207 29,318 1,015 Consumer 1,216 1,216 1,374 1,220 Total $ 49,687 $ 20,428 $ 81,096 $ 30,292 There were $11,056 and $1,508 of PCD loans that are not accounted for on a pooled basis included in nonaccrual loans at December 31, 2021 and 2020. During the year ended December 31, 2021 and 2020, interest income not recognized on non-accrual loans, excluding PCD/PCI loans, was $2,718 and $3,368, respectively. An age analysis of past due loans, aggregated by class of loans, as of December 31, 2021 and 2020 is as follows: December 31, 2021 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 $ — $ — $ — $ — $ 1,059,796 $ 2,348 $ 1,062,144 $ — Farmland — — — — 55,827 — 55,827 — 1 - 4 family residential 2,073 — 1,008 3,081 538,307 1,178 542,566 24 Multi-family residential — — — — 310,241 — 310,241 — OOCRE 4,538 965 11,622 17,125 620,848 27,564 665,537 — NOOCRE 936 — 192 1,128 2,100,981 18,200 2,120,309 — Commercial 1,525 4,395 3,708 9,628 1,988,622 8,626 2,006,876 191 MW — — — — 565,645 — 565,645 — Consumer 135 105 1,082 1,322 10,499 177 11,998 20 $ 9,207 $ 5,465 $ 17,612 $ 32,284 $ 7,250,766 $ 58,093 $ 7,341,143 $ 235 (1) Loans 90 days past due and still accruing excludes $9,345 of pooled PCD loans and $206 of PPP loans as of December 31, 2021. December 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 $ — $ — $ — $ — $ 690,345 $ 2,685 $ 693,030 $ — Farmland — — — — 13,844 — 13,844 — 1 - 4 family residential 2,338 122 4,802 7,262 508,341 8,741 524,344 1,670 Multi-family residential — — — — 424,962 — 424,962 — OOCRE 2,278 2,143 2,814 7,235 672,246 37,991 717,472 1,280 NOOCRE 7,675 2,911 17,586 28,172 1,832,784 43,176 1,904,132 — Commercial 1,983 1,431 20,360 23,774 1,516,312 19,460 1,559,546 1,230 MW — — — — 577,594 — 577,594 — Consumer 75 77 1,338 1,490 11,308 202 13,000 24 $ 14,349 $ 6,684 $ 46,900 $ 67,933 $ 6,247,736 $ 112,255 $ 6,427,924 $ 4,204 (1) Loans 90 days past due and still accruing excludes $32,627 of pooled PCD loans as of December 31, 2020 that transitioned upon adoption of ASC 326. Refer to Note 1 for further discussion. Loans 90 days past due and still accruing interest were $235 and $4,204 as of December 31, 2021 and December 31, 2020, respectively. These loans are considered well-secured and in the process of collection as of the reporting date with plans in place for the borrowers to bring the loans fully current. The Company believes that it will collect all principal and interest due on each of the loans 90 days past due and still accruing. 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 $25,518 and $29,157 as of December 31, 2021 and 2020, respectively. The following table presents the pre- and post-modification amortized cost of loans modified as TDRs during the twelve months ended December 31, 2021. There was one new TDR during the year ended December 31, 2021, which has since paid off and thirteen new TDRs during the year ended December 31, 2020 . The Company did not grant principal reductions or interest rate concessions on any TDRs during the twelve months ended December 31, 2021. The terms of certain loans modified as TDRs during the year ended December 31, 2021 and December 31, 2020 are summarized in the following tables: During the year ended December 31, 2020 Adjusted Payment Structure Payment Deferrals Total Modifications Number of Loans OOCRE $ 5,326 $ — $ 5,326 5 NOOCRE — 19,454 19,454 4 Commercial 1,419 1,345 2,764 4 Total $ 6,745 $ 20,799 $ 27,544 13 There were no loans modified as TDR loans within the previous 12 months and for which there was a payment default during the years ended December 31, 2021 and 2020. 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. During the years ended December 31, 2021 and 2020, interest income that would have been recorded on TDR loans had the terms of the loans not been modified was $778 and $1,537, respectively. The Company has not committed to lend additional amounts to customers with outstanding loans classified as TDRs as of December 31, 2021 or December 31, 2020. 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 nonaccrual. 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 1 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Construction and land: Pass $ 389,420 $ 453,262 $ 116,855 $ 57,637 $ 5,741 $ 29,182 $ 4,631 $ 1,163 $ 1,057,891 Special mention — 1,593 — 312 — — — — 1,905 PCD — — — — — 2,348 — — 2,348 Total construction and land $ 389,420 $ 454,855 $ 116,855 $ 57,949 $ 5,741 $ 31,530 $ 4,631 $ 1,163 $ 1,062,144 Farmland: Pass $ 16,849 $ 28,655 $ 27 $ 3,367 $ 2,957 $ 2,643 $ 1,329 $ — $ 55,827 Total farmland $ 16,849 $ 28,655 $ 27 $ 3,367 $ 2,957 $ 2,643 $ 1,329 $ — $ 55,827 1 - 4 family residential: Pass $ 191,333 $ 101,377 $ 54,826 $ 59,861 $ 27,743 $ 85,661 $ 12,659 $ 6,025 $ 539,485 Special mention — — — — — 352 — — 352 Substandard — — — — 81 903 567 — 1,551 PCD — — — — — 1,178 — — 1,178 Total 1-4 family residential $ 191,333 $ 101,377 $ 54,826 $ 59,861 $ 27,824 $ 88,094 $ 13,226 $ 6,025 $ 542,566 Multi-family residential: Pass $ 67,979 $ 59,239 $ 54,321 $ 68,531 $ 11,815 $ 27,020 $ 49 $ — $ 288,954 Special mention — — — 21,287 — — — — 21,287 Total multi-family residential $ 67,979 $ 59,239 $ 54,321 $ 89,818 $ 11,815 $ 27,020 $ 49 $ — $ 310,241 OOCRE: Pass $ 114,413 $ 111,516 $ 56,964 $ 73,112 $ 54,921 $ 174,500 $ 2,986 $ 2,965 $ 591,377 Special mention 2,420 — 1,052 — — 6,232 — — 9,704 Substandard — 412 — 25,440 781 10,259 — — 36,892 PCD — 1,377 — — 6,567 19,620 — — 27,564 Total OOCRE $ 116,833 $ 113,305 $ 58,016 $ 98,552 $ 62,269 $ 210,611 $ 2,986 $ 2,965 $ 665,537 NOOCRE: Pass $ 628,140 $ 298,091 $ 254,566 $ 319,359 $ 56,710 $ 336,713 $ 5,861 $ 23,015 $ 1,922,455 Special mention — 613 1,685 29,469 16,354 48,952 — 489 97,562 Substandard — 48 1,775 26,209 1,581 52,479 — — 82,092 PCD — — — 13,620 — 4,580 — — 18,200 Total NOOCRE $ 628,140 $ 298,752 $ 258,026 $ 388,657 $ 74,645 $ 442,724 $ 5,861 $ 23,504 $ 2,120,309 Commercial: Pass $ 430,213 $ 187,370 $ 124,798 $ 65,186 $ 40,254 $ 52,491 $ 968,229 $ 19,130 $ 1,887,671 Special mention 7,958 2,341 149 15,136 1,069 3,368 3,482 2,589 36,092 Substandard 15,662 5,843 6,286 14,908 4,167 2,779 20,500 4,342 74,487 PCD — — — 315 1,785 6,526 — — 8,626 Total commercial $ 453,833 $ 195,554 $ 131,233 $ 95,545 $ 47,275 $ 65,164 $ 992,211 $ 26,061 $ 2,006,876 MW: Pass $ — $ — $ — $ — $ — $ — $ 564,850 $ 250 $ 565,100 Substandard — — — — — — 545 — 545 Total MW $ — $ — $ — $ — $ — $ — $ 565,395 $ 250 $ 565,645 Consumer: Pass $ 3,362 $ 1,566 $ 512 $ 408 $ 2,777 $ 784 $ 1,006 $ 25 $ 10,440 Special mention — — — — 65 14 — — 79 Substandard — — 22 — 177 39 1,064 — 1,302 PCD — — — — 24 153 — — 177 Total consumer $ 3,362 $ 1,566 $ 534 $ 408 $ 3,043 $ 990 $ 2,070 $ 25 $ 11,998 Total Pass $ 1,841,709 $ 1,241,076 $ 662,869 $ 647,461 $ 202,918 $ 708,994 $ 1,561,600 $ 52,573 $ 6,919,200 Total Special Mention 10,378 4,547 2,886 66,204 17,488 58,918 3,482 3,078 166,981 Total Substandard 15,662 6,303 8,083 66,557 6,787 66,459 22,676 4,342 196,869 Total PCD — 1,377 — 13,935 8,376 34,405 — — 58,093 Total $ 1,867,749 $ 1,253,303 $ 673,838 $ 794,157 $ 235,569 $ 868,776 $ 1,587,758 $ 59,993 $ 7,341,143 1 Term loans amortized cost basis by origination year excludes $9,489 of deferred loan fees, net. Term Loans Amortized Cost Basis by Origination Year 1 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2020 Construction and land: Pass $ 155,358 $ 282,497 $ 179,372 $ 11,791 $ 9,938 $ 27,147 $ 21,066 $ — $ 687,169 Special mention — — 2,666 — — — — — 2,666 Substandard — — 510 — — — — — 510 PCD — — — — — 2,685 — — 2,685 Total construction and land $ 155,358 $ 282,497 $ 182,548 $ 11,791 $ 9,938 $ 29,832 $ 21,066 $ — $ 693,030 Farmland: Pass $ 867 $ 972 $ 3,367 $ 3,688 $ — $ 3,656 $ 1,294 $ — $ 13,844 Total farmland $ 867 $ 972 $ 3,367 $ 3,688 $ — $ 3,656 $ 1,294 $ — $ 13,844 1 - 4 family residential: Pass $ 120,580 $ 79,617 $ 91,890 $ 49,338 $ 31,936 $ 115,797 $ 19,065 $ 2,968 $ 511,191 Special mention — 1,077 154 760 — 687 — — 2,678 Substandard — — 142 668 — — 924 — 1,734 PCD — — — — — 8,741 — — 8,741 Total 1 - 4 family residential $ 120,580 $ 80,694 $ 92,186 $ 50,766 $ 31,936 $ 125,225 $ 19,989 $ 2,968 $ 524,344 Multi-family residential: Pass $ 107,332 $ 106,559 $ 139,721 $ 18,722 $ 32,672 $ 7,218 $ 58 $ — $ 412,282 Special mention — — 12,680 — — — — — 12,680 Total multi-family residential $ 107,332 $ 106,559 $ 152,401 $ 18,722 $ 32,672 $ 7,218 $ 58 $ — $ 424,962 OOCRE: Pass $ 113,741 $ 65,262 $ 75,940 $ 79,253 $ 79,202 $ 176,668 $ 5,532 $ — $ 595,598 Special mention — 948 22,725 3,701 12,860 4,326 — — 44,560 Substandard 370 — 10,579 3,830 11,315 6,822 201 6,206 39,323 PCD — — — — 7,951 30,040 — — 37,991 Total OOCRE $ 114,111 $ 66,210 $ 109,244 $ 86,784 $ 111,328 $ 217,856 $ 5,733 $ 6,206 $ 717,472 NOOCRE: Pass $ 361,246 $ 255,976 $ 445,079 $ 90,738 $ 174,893 $ 309,572 $ 13,413 $ — $ 1,650,917 Special mention 101 31,714 37,572 19,262 25,997 37,951 493 — 153,090 Substandard 1,226 0 9,850 0 4,562 4,108 — 23,098 14,105 — 56,949 PCD — — 18,744 — 6,652 17,780 — — 43,176 Total NOOCRE $ 362,573 $ 297,540 $ 505,957 $ 114,108 $ 207,542 $ 388,401 $ 28,011 $ — $ 1,904,132 Commercial: Pass $ 251,004 $ 158,158 $ 112,961 $ 50,734 $ 19,821 $ 41,856 $ 758,832 $ 13,400 $ 1,406,766 Special mention 1,306 2,539 8,224 10,033 1,201 2,165 26,922 3,670 56,060 Substandard 722 4,487 23,245 3,772 7,216 2,083 30,460 5,275 77,260 PCD — — — 3,382 4,196 11,882 — — 19,460 Total commercial $ 253,032 $ 165,184 $ 144,430 $ 67,921 $ 32,434 $ 57,986 $ 816,214 $ 22,345 $ 1,559,546 MW: Pass $ — $ — $ — $ — $ — $ — $ 577,594 $ — $ 577,594 Total MW $ — $ — $ — $ — $ — $ — $ 577,594 $ — $ 577,594 Consumer: Pass $ 2,489 $ 1,216 $ 1,038 $ 3,899 $ 887 $ 353 $ 1,475 $ — $ 11,357 Special mention — — — — 25 227 — — 252 Substandard — — — 60 — 66 1,063 — 1,189 PCD — — — 36 — 166 — — 202 Total consumer $ 2,489 $ 1,216 $ 1,038 $ 3,995 $ 912 $ 812 $ 2,538 $ — $ 13,000 Total Pass $ 1,112,617 $ 950,257 $ 1,049,368 $ 308,163 $ 349,349 $ 682,267 $ 1,398,329 $ 16,368 $ 5,866,718 Total Special Mention 1,407 36,278 84,021 33,756 40,083 45,356 27,415 3,670 271,986 Total Substandard 2,318 14,337 39,038 12,438 18,531 32,069 46,753 11,481 176,965 Total PCD — — 18,744 3,418 18,799 71,294 — — 112,255 Total $ 1,116,342 $ 1,000,872 $ 1,191,171 $ 357,775 $ 426,762 $ 830,986 $ 1,472,497 $ 31,519 $ 6,427,924 1 Term loans amortized cost basis by origination year excludes $2,468 of deferred loan fees, net. Servicing Assets The Company was servicing loans of approximately $509,977 and $264,019 as of December 31, 2021 and 2020, respectively. A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2021 2020 Balance at beginning of year $ 3,363 $ 3,113 Servicing assets acquired through acquisition 13,913 — Increase from loan sales 1,330 1,121 Servicing asset impairment, net of recoveries (71) (368) Amortization charged as a reduction to income (830) (503) Balance at year-end $ 17,705 $ 3,363 Fair value of servicing assets is estimated by discounting estimated future cash flows from the servicing assets using discount rates that approximate current market rates over the expected lives of the loans being serviced. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. As of December 31, 2021 and 2020 there was a valuation allowance of $628 and $556, respectively. The Company may also receive a portion of subsequent interest collections on loans sold that exceed the contractual servicing fees. In that case, the Company records an interest-only strip based on its relative fair market value and the other components of the loans. There was no interest-only strip receivable recorded at December 31, 2021 and 2020 . |
Bank Premises, Furniture and Eq
Bank Premises, Furniture and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Bank Premises, Furniture and Equipment | Bank Premises, Furniture and Equipment Bank premises, furniture and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Building and improvements $ 53,955 $ 61,035 Site improvements 2,903 3,303 Tenant improvements 779 779 Leasehold improvements 7,358 5,923 Land 38,709 44,078 Furniture, fixtures and equipment 25,662 17,751 Construction in progress 1,464 630 130,830 133,499 Less accumulated depreciation and amortization 21,559 18,436 $ 109,271 $ 115,063 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in other assets and accounts payable and other liabilities, respectively, on the Company’s consolidated balance sheets. The Company does not currently have finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy and equipment expense in the consolidated statements of income. The Company’s leases related primarily to office space and bank branches with remaining lease terms generally ranging from one five other assets accounts payable and accrued expenses The table below summarizes the Company’s net lease cost: For the Year Ended December 31, 2021 2020 Operating lease cost $ 4,298 $ 4,131 Variable lease cost 641 810 Net lease cost $ 4,939 $ 4,941 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,051 $ 3,994 Weighted-average remaining lease term - operating leases, in years 6.0 years 3.3 years Weighted-average discount rate - operating leases 1.94 % 1.56 % A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: December 31, 2021 Lease payments due: Within one year $ 4,107 After one but within two years 3,879 After two but within three years 3,478 After three but within four years 2,637 After four but within five years 1,680 After five years 3,991 Total undiscounted cash flows 19,772 Less: Discount on cash flows (1,749) Total lease liability $ 18,023 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 5.0 years $ 81,769 $ — $ 33,771 $ 47,998 Servicing asset 7.2 years 22,090 627 3,758 17,705 Intangible lease assets 1.3 years 4,779 — 4,465 314 $ 108,638 $ 627 $ 41,994 $ 66,017 December 31, 2020 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 6.0 years $ 81,769 $ — $ 24,011 $ 57,758 Servicing asset 7.4 years 6,847 556 2,928 3,363 Intangible lease assets 1.4 years 4,779 — 4,167 612 $ 93,395 $ 556 $ 31,106 $ 61,733 For the years ended December 31, 2021, 2020 and 2019, amortization expense related to intangible assets of approximately $10,888, $11,297 and $12,022 , respectively, is included within amortization of intangibles, occupancy and equipment and other income within the consolidated statements of income. For the years ended December 31, 2021 and 2020, a valuation allowance related to intangible assets was $627 and $556, respectively. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2021 was as follows: Year Amount 2022 $ 12,453 2023 12,262 2024 12,199 2025 11,863 2026 11,777 Thereafter 5,463 $ 66,017 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Balance at beginning of year $ 370,840 $ 370,840 North Avenue Capital, LLC acquisition (preliminary) 32,931 — Balance at end of year $ 403,771 $ 370,840 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Deposits | Deposits Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Noninterest-bearing demand accounts $ 2,510,723 $ 2,097,099 Interest-bearing demand accounts 579,406 453,111 Savings accounts 128,062 106,820 Limited access money market accounts 2,568,844 2,398,525 Certificates of deposit, greater than $250 651,345 827,594 Certificates of deposit, less than $250 925,235 629,697 Total $ 7,363,615 $ 6,512,846 As of December 31, 2021, the scheduled maturities of certificates of deposit were as follows: Year Amount 2022 $ 1,017,162 2023 523,160 2024 21,234 2025 11,200 2026 3,824 Total $ 1,576,580 The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $2,128 and $106 as of December 31, 2021 and 2020, respectively. Brokered deposits at December 31, 2021 and 2020 totaled approximately $182,303 and $199,801, respectively. |
Advances from the FHLB
Advances from the FHLB | 12 Months Ended |
Dec. 31, 2021 | |
Advances from Federal Home Loan Banks [Abstract] | |
Advances from the FHLB | Advances from the FHLB Advances from the FHLB totaled $777,562 and $777,718 at December 31, 2021 and 2020, respectively. As of December 31, 2021, the advances were collateralized by a blanket floating lien on certain debt securities and loans, had a weighted average rate of 0.94% and mature on various dates from 2022 to 2035. The Company had the availability to borrow additional funds of approximately $777,466 as of December 31, 2021. Contractual maturities of FHLB advances at December 31, 2021 were as follows: 2022 $ 27,562 2025 and thereafter 750,000 Total $ 777,562 |
Other Credit Extensions
Other Credit Extensions | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Other Credit Extensions | Other Credit Extensions As of December 31, 2021 the Company maintained five credit facilities with commercial banks that provided federal funds credit extensions with an availability to borrow up to an aggregate amount of $175,000. As of December 31, 2020, the Company maintained five credit facilities with commercial banks that provide federal funds credit extensions with an availability to borrow up to an aggregate amount of approximately $175,000. There were no borrowings under these credit facilities as of December 31, 2021 and 2020. As of December 31, 2021 and 2020, the Company maintained a secured line of credit with the FRB with an availability to borrow approximately $995,139 and $871,485, respectively. Approximately $805,747 and $94,222 of commercial loans were pledged as collateral at December 31, 2021 and 2020, respectively. There were no borrowings under this line of credit as of December 31, 2021 and 2020. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2021 2020 Junior subordinated debentures (1) $ 30,465 $ 30,244 Subordinated notes (2) 197,299 232,534 $ 227,764 $ 262,778 (1) Junior subordinated debentures are net of a discount of $3,403 and 3,624 as of December 31, 2021 and 2020, respectively. (2) Subordinated notes include a premium of $1,038 as of December 31, 2020 and debt issuance costs of $2,701 and $3,504 as of December 31, 2021 and 2020, respectively. Subordinated notes include no premium as of December 31, 2021 as the Company paid off the related subordinated debt during the year ended December 31, 2021. Junior Subordinated Debentures In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated. The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities. The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month LIBOR plus 1.85%. So long as no event of default leading to an acceleration event has occurred, the Company has the right at any time and from time to time during the term of the debentures to defer payments of interest by extending the interest distribution period for up to twenty consecutive quarterly periods. The effective rate as of December 31, 2021 and 2020 was 2.05% and 2.07%, respectively. The Parkway Trust Securities are subject to mandatory redemption, in whole or in part, upon repayment of the debentures at the stated maturity in the year 2036 or their earlier redemption, in each case at a redemption price equal to the aggregate liquidation preference of the Parkway Trust Securities plus any accumulated and unpaid distributions thereon to the date of redemption. Prior redemption is permitted under certain circumstances. In connection with the acquisition of Sovereign on August 1, 2017, the Company assumed $8,609 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “SovDallas Trust Securities”), issued by SovDallas Capital Trust I (“SovDallas Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the SovDallas Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if SovDallas Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the SovDallas Trust. The SovDallas Trust invested the total proceeds from the sale of the SovDallas Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the SovDallas Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2021 and 2020 was 4.13% and 4.23%. The SovDallas Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. In connection with the acquisition of Green on January 1, 2019, the Company assumed $5,155 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot I Trust Securities”), issued by Patriot I Capital Trust I (“Patriot I Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot I Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot I Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot I Trust. The Patriot I Trust invested the total proceeds from the sale of the Patriot I Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Green. Interest on the Patriot I Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2021 and 2020 was 1.97% and 2.09%. The Patriot I Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. In connection with the acquisition of Green on January 1, 2019, the Company assumed $17,011 in floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Patriot II Trust Securities”), issued by Patriot II Capital Trust I (“Patriot II Trust”), a statutory business trust and wholly-owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Patriot II Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Patriot II Trust is liquidated or terminated. The Company also owns all of the outstanding common securities of the Patriot II Trust. The Patriot II Trust invested the total proceeds from the sale of the Patriot II Trust Securities and the investment in common shares in floating rate junior subordinated debentures originally issued by Sovereign. Interest on the Patriot II Trust Securities is payable quarterly at a rate equal to 3-month LIBOR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2021 and 2020 was 2.00% and 2.02%. The Patriot II Trust Securities are guaranteed by the Company and are subject to redemption. The Company may redeem the debt securities, in whole or in part, at any time at an amount equal to the principal amount of the debt securities being redeemed plus any accrued and unpaid interest. The Parkway Trust Securities, SovDallas Trust Securities, Patriot I Trust Securities and Patriot II Trust Securities qualify as Tier 1 capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. Subordinated Notes During 2013 the Company issued, in the aggregate principal amount of $5,000, subordinated promissory notes (the “Notes”) in a private offering. The Notes were issued to certain entities controlled by an affiliate of the Company. The Notes are unsecured, with interest payable quarterly at a fixed rate of 6.0% per annum, and unpaid principal and interest due at the stated maturity on December 31, 2023. The Notes qualify as Tier 2 Capital, subject to regulatory limitations, under guidelines established by the Federal Reserve. In addition, the Notes may be redeemed, in whole or in part, on any interest payment date that occurs on or after December 23, 2018, subject to approval of the Federal Reserve. The Notes were redeemed in whole on February 14, 2020. In connection with the issuance of the Notes, the Company issued warrants to purchase 25,000 shares of common stock of the Company at an exercise price of $11.00 per share, exercisable at any time, in whole or in part, prior to December 31, 2023. The fair value of the warrants was calculated at $0.80 and was recorded as additional paid-in capital, and the related debt discount was being accreted into interest expense. 10,000 warrants were exercised in the year ended December 31, 2020, for an exercise price of $110,000. 15,000 warrants were exercised on September 28, 2021, for an exercise price of $165,000. In connection with the Company’s acquisition of Green on January 1, 2019, the Company assumed $35,000 of 8.50% Fixed-to-Floating Rate Subordinated Notes (the “8.50% Fixed-to-Floating Notes”) that mature on December 15, 2026. The 8.50% Fixed-to-Floating Notes, which qualify as Tier 2 capital under the Federal Reserve’s capital guidelines, have an interest rate of 8.50% per annum during the fixed-rate period from date of issuance through December 15, 2021. Interest is payable semi-annually on each June 15 and December 15 through December 15, 2021. During the floating rate period from December 15, 2021, to but excluding the maturity date or date of earlier redemption, the 8.50% Fixed-to-Floating Notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 6.685%, payable quarterly on each March 15, June 15, September 15 and December 15. The 8.50% Fixed-to-Floating Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Bank. The Company may elect to redeem the 8.50% Fixed-to-Floating Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after December 15, 2021 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the 8.50% Fixed-to-Floating Notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of insolvency or reorganization. The 8.50% Fixed-to-Floating Notes were redeemed in whole on December 16, 2021. On November 8, 2019, the Company issued $75,000 in aggregate principal amount of 4.75% Fixed-to-Floating Rate Subordinated Notes (the "2019 Notes"). The 2019 Notes were issued in a private placement transaction to certain qualified institutional buyers and accredited and were registered under the Securities Act effective February 13, 2020. The 2019 Notes were issued under an indenture for Fixed-to-Floating Rate Subordinated Notes dated November 8, 2019, between Veritex Holdings, Inc., as issuer, and UMB Bank, N.A., as trustee. The Company may elect to redeem the 2019 Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after November 15, 2024 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. The 2019 Notes, which qualify as Tier 2 capital under the Federal Reserve's capital guidelines, have an interest rate of 4.75% per annum during the fixed rate period from date of issuance through November 15, 2024. Interest is payable semi-annually on each May 15 and November 15 through November 15, 2024. The interest rate on the notes will vary beginning November 15, 2024, at a floating rate equal to the secured overnight financing rate, as determined quarterly on the determination date for the applicable interest period, plus 347 basis points. On October 5, 2020, the Company completed the issuance and sale of $125,000 in aggregate principal amount of its 4.125% Fixed-to-Floating Rate Subordinated Debt due in 2030 (the “2020 Notes”). The 2020 Notes will bear interest: (i) from and including the date of issuance to, but excluding, October 15, 2025, at a rate of 4.125% per year and (ii) from and including October 15, 2025 to, but excluding, the maturity date (unless redeemed prior to such date), at a floating rate per year equal to the Benchmark (which is expected to be Three-Month Term Secured Overnight Funding Rate) plus 399.5 basis points. The Company has the right, subject to certain circumstances and the receipt of any required approval of the Federal Reserve Board, to redeem the 2020 Notes at the Company’s option, in whole or in part, on any interest payment date on or after October 15, 2025.The Company intends to use the net proceeds from the offering of 2020 Notes for general corporate purposes, including the potential repayment of outstanding indebtedness, and supporting capital levels of the Bank. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes is summarized as follows: Year Ended December 31, 2021 2020 2019 Income tax expense (benefit): Current $ 32,075 $ 23,587 $ 16,068 Deferred 4,647 (9,384) 9,053 $ 36,722 $ 14,203 $ 25,121 The table below reconciles income tax expense for the years ended December 31, 2021, 2020 and 2019 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2021 2020 2019 Federal income tax expense rate at 21% for December 31, 2021, 2020 and 2019 $ 37,024 $ 18,498 $ 24,330 Bank-owned life insurance (852) (407) (422) Non-deductible transaction costs 78 — 308 Tax exempt interest income (545) (452) (391) Impact of IRS Settlement — — (1,556) Deferred tax true up 24 (1,181) — 162(m) Disallowance 504 65 1,512 State Taxes 1,039 902 760 Excess benefit on share-based compensation (838) (1,435) 205 Net Operating Loss ("NOL") Carryback — (1,799) — Other 288 12 375 Total income tax expense $ 36,722 $ 14,203 $ 25,121 Effective tax rate 20.8 % 16.1 % 21.7 % Deferred income taxes reflect the net tax effects of temporary differences between the recorded amounts of assets and liabilities for financial reporting purposes, and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2021 2020 Deferred tax assets: ACL $ 18,274 $ 24,324 Equity compensation 4,111 3,390 Purchase premium/loan discounts 1,555 2,945 Bonuses 3,036 1,437 Lease liability 3,785 3,276 Deferred fee income 1,967 65 Purchase securities 2,507 2,905 Other 1,317 2,399 Total deferred tax assets 36,552 40,741 Deferred tax liabilities: Intangibles 10,372 11,911 Bank premises and equipment 5,773 4,036 ROU asset 3,583 3,124 Net unrealized gain on AFS debt securities and derivative instruments 17,030 14,944 Other 1,864 2,063 Total deferred tax liabilities 38,622 36,078 Net deferred tax (liability) asset $ (2,070) $ 4,663 Included within other assets in the Company's consolidated balance sheet as of December 31, 2021 is a current tax receivable of $9,366 and included within other liabilities is a net deferred tax liability of $2,070. Additionally, included within accounts payable and accrued expenses in the Company's consolidated balance sheets as of December 31, 2021 is a $806 current state tax payable. Included in the Company's consolidated balance sheets as of December 31, 2020 is a current tax receivable of $25,520 and a net deferred tax asset of $4,663 in other assets. Additionally, included within accounts payable and accrued expenses in the Company's consolidated balance sheets as of December 31, 2020 is a $270 current state tax payable. The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2021, 2020 and 2019. During the year ending December 31, 2020, the Company recorded an uncertain tax position liability for state nexus tax exposure of $549 in accounts payable and other liabilities in the accompanying consolidated balance sheets. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority. December 31 2021 2020 2019 Unrecognized tax benefits at the beginning of the year: $ 549 $ — $ — Gross increases, related to tax positions taken in a prior period — 281 2,155 Gross decreases, related to tax positions taken in a prior period (101) — — Gross increases, related to tax positions taken in current period 55 268 — Settlement with taxing authority — — (2,155) Unrecognized tax benefits at the end of the year $ 503 $ 549 $ — |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company may from time to time be involved in legal actions arising from normal business activities. Management believes that these actions in which the Company or any of its subsidiaries is a defendant are without merit or that the ultimate liability, if any, resulting from them will not materially affect the financial position or results of operations of the Company. Refer to Note 12 "Advances from the FHLB", Note 14 "Borrowed Funds" and Note 18 "Off-Balance Sheet Loan Commitments" for further discussion on commitments. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures The authoritative guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The authoritative guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs. Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 2 investments consist primarily of obligations of U.S. government agencies, corporate bonds, municipal securities, mortgage-backed securities, collateralized mortgage obligations and asset-backed securities. Level 3 Inputs. Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Assets and liabilities measured at fair value on a recurring basis include the following: AFS Debt Securities: Debt securities classified as AFS are reported at fair value utilizing Level 2 inputs. For those debt securities classified as Level 2, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U. S. Treasury yield curve, live trading levels, trade execution data for similar securities, market consensus prepayments speeds, credit information and the bond’s terms and conditions, among other things. Equity Security With a Readily Determinable Fair Value: This investment represents our CRA security which is reported at fair value utilizing a Level 1 input which includes a quoted price in an active market for the identical asset. PPP Loans: The fair value of PPP loans is based on commitments from investors or prevailing market prices. Loans Held for Sale: The fair value of government guaranteed loans held-for-sale is based on commitments from investors or prevailing market prices. Derivative Financial Instruments: The fair value of correspondent interest rate swaps, customer interest rate swaps, correspondent interest rate caps and collars and commercial loan interest rate floors are derived from pricing models based on past, present and projected future market conditions, quoted market prices of instruments with similar characteristics or discounted cash flows, classified in Level 2 of the fair value hierarchy. The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 993,058 $ — $ 993,058 Equity securities with a readily determinable fair value 11,038 — — 11,038 PPP Loans — 53,369 — 53,369 Loans held for sale (1) — 9,867 — 9,867 Interest rate swap designated as hedging instruments — 7,001 — 7,001 Correspondent interest rate swaps not designated as hedging instruments — 1,527 — 1,527 Customer interest rate swaps not designated as hedging instruments — 3,261 — 3,261 Customer interest rate caps and collars not designated as hedging instruments — 1 — 1 Financial Liabilities: Interest rate swap designated as hedging instruments $ — $ 1,404 $ — $ 1,404 Correspondent interest rate swaps not designated as hedging instruments — 3,498 — 3,498 Customer interest rate caps and collars not designated as hedging instruments — 1,442 — 1,442 Correspondent interest rate caps and collars not designated as hedging instruments — 1 — 1 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,024,329 $ — $ 1,024,329 Equity securities with a readily determinable fair value 11,363 — — 11,363 PPP Loans — 358,042 — 358,042 Loans held for sale (1) — 6,681 — 6,681 Interest rate swap designated as hedging instruments — 17,543 — 17,543 Customer interest rate swaps not designated as hedging instruments — 10,937 — 10,937 Correspondent interest rate caps and collars not designated as hedging instruments — 1 — 1 Financial Liabilities: Interest rate swap designated as hedging instruments $ — $ 2,255 $ — $ 2,255 Correspondent interest rate swaps not designated as hedging instruments — 11,666 — 11,666 Customer interest rate caps and collars not designated as hedging instruments — 1 — 1 (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 years ended December 31, 2021 and 2020. Certain assets, including collateral dependent loans with an ACL and servicing asset with a valuation allowance are measured at fair value on a non-recurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Collateral Dependent Loans with an ACL: A loan is considered collateral-dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. The ACL is measured by estimating the fair value of the loan's underlying collateral. For real estate loans, fair value of the loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. Appraisals for collateral dependent loans with an ACL are performed by certified general appraisers whose qualifications and licenses have been reviewed and verified by the Company. Once reviewed, a member of the credit department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparisons to independent data sources such as recent market data or industry wide-statistics. On a periodic basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustments, if any, should be made to the appraisal value to arrive at fair value. Servicing Assets with a Valuation Allowance : The fair value of the servicing asset is estimated using discounted cash flows based on current market interest rates. A valuation allowance is recorded when the fair value is below the carrying amount of the asset. The following table summarizes assets measured at fair value on a non-recurring basis as of December 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2021 Assets: Collateral dependent loans with an ACL $ — $ — $ 10,100 $ 10,100 Servicing assets with a valuation allowance — — 3,223 3,223 As of December 31, 2020 Assets: Collateral dependent loans with an ACL $ — $ — $ 2,386 $ 2,386 Servicing assets with a valuation allowance — — 2,975 2,975 At December 31, 2021, collateral dependent loans with an ACL had a recorded investment of $17,908, with $7,808 specific allowance for credit loss allocated. At December 31, 2020, collateral dependent loans with an ACL had a recorded investment of $7,115, with $4,729 specific allowance for credit loss allocated. At December 31, 2021, servicing assets of $3,850 had a valuation allowance totaling $627. At December 31, 2020, servicing assets of $3,531 had a valuation allowance totaling $556. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2021 and 2020. Fair Value of Financial Instruments The Company is required under current authoritative guidance to disclose the estimated fair value of its financial instrument assets and liabilities, including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments, as defined in such guidance. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop an estimate of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or valuation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates their fair value. HTM debt securities: The fair values of these debt securities is determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities' relationship to other benchmark quoted securities (Level 2 inputs). LHI: The fair value of LHI, excluding previously presented collateral dependent loans with an ACL measured at fair value on a non-recurring basis, is estimated using a discounted cash flow analysis. The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit, and prepayment risk of the loans. Loans are considered a Level 3 financial asset. Loans held for sale Loans held for sale, including mortgage loans, which are carried at the lower of cost or estimated fair value. The fair value for the mortgage loans approximate their carrying value and these loans are considered Level 2 financial assets. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values due to short-term maturity. Bank-owned life insurance: The carrying amounts of bank-owned life insurance policies approximate their fair value. Servicing Asset: 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. Equity securities without a readily determinable fair value: Certain equity securities are carried at cost as these securities did not have a readily determinable fair value. There were no observable price changes in orderly transactions for the identical or a similar investment of the same issuer as of December 31, 2021 and 2020. FHLB and FRB stock: FHLB and FRB stock are carried at cost basis due to restrictions placed on the transferability of these investments. As a result, the fair value of these investments was not practicable to determine. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate certificates of deposit (“CDs”) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on CDs to a schedule of aggregated expected monthly maturities on time deposits. Advances from FHLB: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Subordinated debentures and subordinated notes: The fair values are based upon prevailing rates on similar debt in the marketplace. Securities sold under agreement to repurchase: The carrying amount of securities sold under agreements to repurchase is a reasonable estimate of fair value because these borrowings reprice at market rates generally daily. Off-balance sheet instruments: Commitments to extend credit and standby letters of credit are generally priced at market at the time of funding and were not material to the Company’s consolidated financial statements. The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring or non-recurring basis under current authoritative guidance as of December 31, 2021 and 2020 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2021 Financial assets: Cash and cash equivalents $ 379,784 $ — $ 379,784 $ — Held-to-maturity debt securities 59,436 — 61,446 — Securities purchased under agreements to resell 102,288 — 102,288 — Loans held for sale (1) 16,140 — 16,140 — LHI (2) 7,259,233 — — 7,283,992 Accrued interest receivable 22,008 — 22,008 — Bank-owned life insurance 83,194 — 83,194 — Servicing asset 14,482 — 14,482 — Equity securities without a readily determinable fair value 4,355 N/A N/A N/A FHLB and FRB stock 71,892 N/A N/A N/A Financial liabilities: Deposits $ 7,363,615 $ — $ 7,145,175 $ — Advances from FHLB 777,562 — 796,480 — Accrued interest payable 1,507 — 1,507 — Subordinated debentures and subordinated notes 227,764 — 227,764 — Securities sold under agreement to repurchase 4,069 — 4,026 — December 31, 2020 Financial assets: Cash and cash equivalents $ 230,825 $ — $ 230,825 $ — Held-to-maturity debt securities 30,872 — 34,283 — Loans held for sale (1) 14,733 — 14,733 — LHI (2) 6,317,986 — — 6,335,402 Accrued interest receivable 23,798 — 23,798 — Bank-owned life insurance 82,855 — 82,855 — Servicing asset 388 — 486 — Equity securities without readily determinable fair value 3,575 N/A N/A N/A FHLB and FRB stock 71,236 N/A N/A N/A Financial liabilities: Deposits $ 6,512,846 $ — $ 6,608,849 $ — Advances from FHLB 77,718 — 782,321 — Accrued interest payable 2,665 — 2,665 — Subordinated debentures and subordinated notes 262,778 — 262,778 — Securities sold under agreement to repurchase 2,225 — 2,199 — (1) Loans held for sale primarily represent commercial loans moved to held for sale or mortgage loans held for sale that are carried at lower of cost or market. (2) LHI includes MW and is carried at amortized cost. |
Off-Balance Sheet Loan Commitme
Off-Balance Sheet Loan Commitments | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Off-Balance Sheet Loan Commitments | Off-Balance Sheet Loan Commitments 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, MW commitments and standby and commercial letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss in the event of nonperformance by the other party to a financial instrument for commitments to extend credit, MW commitments and standby and commercial letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The following table sets forth the approximate amounts of these financial instruments as of December 31, 2021 and 2020: December 31, 2021 2020 Commitments to extend credit $ 3,809,509 $ 2,743,571 MW commitments 716,370 354,603 Standby and commercial letters of credit 65,881 44,427 $ 4,591,760 $ 3,142,601 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Management evaluates each customer’s creditworthiness on a case-by-case basis and substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of future loan funding. The amount of collateral obtained, if deemed necessary upon extension of credit, is based on management’s credit evaluation of the borrower. MW commitments are unconditionally cancellable and represent the unused capacity on MW facilities the Company has approved. The Company reserves the right to refuse to buy any mortgage loans offered for sale by a customer, for any reason, at the Company’s sole and absolute discretion. Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Standby and commercial letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company’s policy for obtaining collateral and the nature of such collateral is essentially the same as that involved in making commitments to extend credit. The table below presents the activity in the allowance for unfunded commitment credit losses related to those financial instruments discussed above. This allowance is recorded in accounts payable and other liabilities on the Consolidated Balance Sheets: December 31, 2021 2020 Beginning balance for ACL on unfunded commitments $ 10,747 $ 878 Impact of CECL adoption — 840 (Benefit) provision for credit losses on unfunded commitments (1,481) 9,029 Ending balance of ACL on unfunded commitments $ 9,266 $ 10,747 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2021 | |
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 Company's consolidated balance sheets and in the net change in each of these financial statement line items in the Company's consolidated statements of cash flows. For derivatives not designated as hedging instruments, swap fee income and gains and losses due to changes in fair value are included in noninterest income and the operating section of the Company's consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fair values as of December 31, 2021 and December 31, 2020 were as shown in the table below. December 31, 2021 December 31, 2020 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ — $ — $ — $ 500,000 $ 17,543 $ — Interest rate swap on money market deposit account payments 250,000 4,541 — 250,000 — 2,255 Interest rate swap on customer loan interest payments 125,000 — 867 — — — Interest rate swap on customer loan interest payments 125,000 — 537 — — — Interest rate swap on customer loan interest payments 125,000 2,460 — — — — Total derivatives designated as hedging instruments $ 625,000 $ 7,001 $ 1,404 $ 750,000 $ 17,543 $ 2,255 Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps $ 379,787 $ 1,527 $ 3,498 $ 303,918 $ — $ 11,666 Interest rate caps and collars 41,916 — 1 41,916 1 — Commercial customer counterparty: Interest rate swaps 379,787 3,261 1,442 303,918 10,937 — Interest rate caps and collars 41,916 1 — 41,916 — 1 Total derivatives not designated as hedging instruments $ 843,406 $ 4,789 $ 4,941 $ 691,668 $ 10,938 $ 11,667 Offsetting derivative assets/liabilities (2,609) (2,609) 1 1 Total derivatives $ 1,468,406 $ 9,181 $ 3,736 $ 1,441,668 $ 28,482 $ 13,923 Pre-tax gain (loss) included in the Company's consolidated statements of income and related to derivative instruments for the years ended December 31, 2021 and 2020 was as follows: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Net gain (loss) recognized in other comprehensive income on derivative Gain (loss) reclassified from accumulated other comprehensive income into income Location of gain (loss) reclassified from accumulated other comprehensive income into income Net gain (loss) recognized in other comprehensive income on derivative Gain (loss) reclassified from accumulated other comprehensive income into income Location of gain (loss) reclassified from accumulated other comprehensive income into income Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ 26,357 $ — Interest Expense $ 13,859 $ — Interest Expense Interest rate swap on money market deposit account payments 6,995 (803) Interest Expense (1,781) (605) Interest Expense Commercial loan interest rate floor — 866 Interest Income (813) 1,937 Interest Income Interest rate swap on customer loan interest payments (14) 3,714 Interest Income — — Total $ 33,338 $ 3,777 $ 11,265 $ 1,332 Net Gain recognized in other noninterest income Loss recognized in other noninterest income Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ 1,913 $ 2,481 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 of the foregoing. 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. Interest Rate Swap, Floor, Cap and Collar Agreements Not Designated as Hedging Derivatives In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow the Company’s customers to convert a variable rate loan into a fixed rate loan. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the Company’s results of operations. The fair value amounts are included in other assets and other liabilities. The following is a summary of the interest rate swaps outstanding as of December 31, 2021 and December 31, 2020. December 31, 2021 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 379,787 2.970% - 8.470% LIBOR 1 month + 2.200% - 5.000% SOFR CME 1 month + 2.480%- 2.900% SOFR - NYFD 30 day average + 2.500% - 2.964% Wtd. Avg. 4.8 years $ 1,820 Interest rate caps and collars $ 41,916 3.000% / 5.000% LIBOR 1 month + 0.00% - 2.5% Wtd. Avg. 0.6 years $ 1 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 379,787 2.970 - 8.470% LIBOR 1 month + 2.200% - 5.000% SOFR CME 1 month + 2.480%- 2.900% SOFR - NYFD 30 day average + 2.500% - 2.964% Wtd. Avg. 4.8 years $ (1,972) Interest rate caps and collars $ 41,916 2.500% / 3.000% LIBOR 1 month + 0.00% Wtd. Avg. 0.6 years $ (1) December 31, 2020 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 303,918 3.14% - 8.470% LIBOR 1 month + 0.00% - 5.00% PRIME H15 - 25 Wtd. Avg. 4.1 years $ (11,666) Interest rate caps and collars $ 41,916 2.500% / 3.000% LIBOR 1 month + 0.00% Wtd. Avg. 1.6 years $ 1 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 303,918 3.14% - 8.470% LIBOR 1 month + 0.00% - 5.00% PRIME H15 - 25 Wtd. Avg. 4.1 years $ 10,937 Interest rate caps and collars $ 41,916 3.000% / 5.800% LIBOR 1 month + 0.00% - 2.5% Wtd. Avg. 1.6 years $ (1) |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefits | Employee Benefits Defined Contribution Plan The Company maintains a retirement savings 401(k) profit sharing plan (the “Plan”) in which substantially all employees may participate. The Plan allows employees to make discretionary “before tax” contributions through salary reductions under section 401(k) of the Internal Revenue Code. The Company may make a discretionary match of employees’ contributions based on a percentage of salary deferrals and certain discretionary profit sharing contributions. For the year ended December 31, 2021 and 2020, the company made matching contributions of $3,755 and $3,210, respectively. Employee Stock Ownership Plan ("ESOP") |
Stock and Incentive Plans
Stock and Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock and Incentive Plans | Stock and Incentive Plans 2010 Stock Option and Equity Incentive Plan In 2010, the Company adopted the 2010 Stock Option and Equity Incentive Plan (the “2010 Incentive Plan”), which the Company’s shareholders approved in 2011. The maximum number of shares of common stock that may be issued pursuant to grants or options under the 2010 Incentive Plan is 1,000,000. The 2010 Incentive Plan is administered by the Board and provides for both the direct award of stock and the grant of stock options to eligible directors, officers, employees and outside consultants of the Company or its affiliates as defined in the 2010 Incentive Plan. The Company may grant either incentive stock options or nonqualified stock options as directed in the 2010 Incentive Plan. The Board authorized grants of equity awards under the 2010 Incentive Plan consisting of 100,000 shares of direct stock awards (restricted shares) and 900,000 shares of stock options, of which 500,000 shares are or were performance-based stock options. Options were generally granted with an exercise price equal to the market price of the Company’s stock as of the date of the grant. In general, the terms of awards varied depending on whether a participant was a shareholder owning more than 10% of the total combined voting power of all classes of Company stock (a “controlling participant”). Options granted to non-controlling participants generally vested after 5 years of continuous service, with 10-year contractual terms, and forfeiture of unexercised options upon termination of employment with the Company. Other grant terms varied for controlling participants. Restricted share awards generally vested after 4 years of continuous service. The terms of the 2010 Incentive Plan provide that all unearned non-performance options and restricted shares become immediately exercisable and fully vested upon a change in control. During the years ending December 31, 2021, 2020 and 2019, the Company did not award any restricted stock units, non-performance based stock options or performance-based stock options or other awards under the 2010 Incentive Plan. Stock based compensation expense is measured based upon the fair market value of the award at the grant date and is recognized ratably over the period during which the shares are earned (the requisite service period). For the years ended December 31, 2021 and 2020, there was no stock compensation expense related to the 2010 Incentive Plan. For the year ended December 31, 2019, approximately $3 of stock compensation expense related to the 2010 Incentive Plan, respectively, was recognized in the accompanying consolidated statements of income. A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2021, 2020 and 2019 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years Exercised (17,500) 10.24 Outstanding at December 31, 2019 257,500 $ 10.28 1.37 years Exercised (237,500) 10.12 Outstanding at December 31, 2020 20,000 $ 10.09 1.06 years Exercised (19,000) 10.00 Outstanding and exercisable at December 31, 2021 1,000 $ 10.43 1.07 years $ 147 As of December 31, 2021, 2020, and 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 vested under the 2010 Incentive Plan as of December 31, 2021, 2020 and 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2021 2020 2019 Nonperformance-based stock options exercised $ 568 $ 6,579 $ 454 2019 Amended Plan and Green Acquired Omnibus Plans 2021 Grants of Restricted Stock Units In the year ended December 31, 2021, the Company granted RSUs and performance-based RSUs ("PSUs") 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 RSUs granted to employees during the year ended December 31, 2021 with annual graded vesting over a three year period from the grant date. The PSUs granted in February 2021 are subject to service, performance and market conditions. The performance and market condition determine the number of awards to vest. The service period is from February 1, 2021 to January 31, 2024, the performance condition performance period is from January 1, 2021 to December 31, 2023, and the market condition performance period is from February 1, 2021 to January 31, 2024. A Monte Carlo simulation was used to estimate the fair value of PSUs on the grant date. Stock Compensation Expense Stock compensation expense of options, RSUs and PSUs granted under the 2019 Amended Plan and the Veritex (Green) 2014 Plan was as follows: Year ended December 31, 2021 2020 2019 Amended Plan $ 8,614 $ 6,080 Veritex (Green) 2014 Plan 1,959 1,903 2019 Amended Plan A summary of the status of the Company’s stock options under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the years then ended, is as follows: 2019 Amended Plan Nonperformance-based stock options Equity Awards Liability Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years — $ — — Granted 200,561 22.72 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633) 21.38 Forfeited (41,336) 25.51 — — Exercised (12,610) 15.42 — — Outstanding at December 31, 2019 849,768 $ 23.61 8.24 years — $ — — Granted 185,025 26.73 — — Forfeited (25,053) 27.37 — — Exercised (33,939) 19.10 — — Outstanding at December 31, 2020 975,801 $ 24.26 7.45 years — $ — — Granted 500 36.54 — — Forfeited (13,996) 25.93 — — Exercised (252,262) 23.87 — — Outstanding at December 31, 2021 710,043 $ 24.38 6.91 years $ 10,935 — $ — — $ — Options exercisable at December 31, 2021 403,726 $ 24.50 6.38 years $ 6,171 — $ — — $ — Weighted average fair value of options granted during the period $ 36.54 $ — As of December 31, 2021, 2020 and 2019 there was $803, $2,470 and $2,948 of total unrecognized compensation expense related to stock options awarded under the 2019 Amended Plan, respectively. The unrecognized compensation expense at December 31, 2021 is expected to be recognized over the remaining weighted average requisite service period of 0.62 years. A summary of the status of the Company’s RSUs under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the year then ended is as follows: 2019 Amended Plan RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2018 133,455 $ 19.67 — $ — Granted 127,459 22.44 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739) 21.38 Vested into shares (250,965) 22.29 — — Outstanding at December 31, 2019 175,688 $ 21.65 — $ — Granted 360,400 20.38 — — Vested into shares (93,377) 24.73 — — Forfeited (1,579) 29.13 — — Outstanding at December 31, 2020 441,132 $ 20.39 — $ — Granted 281,149 28.68 — — Vested into shares (108,732) 24.19 — — Forfeited (15,498) 28.47 — — Outstanding at December 31, 2021 598,051 $ 23.39 — $ — A summary of the status of the Company’s PSUs under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the years then ended is as follows: 2019 Amended Plan PSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2018 63,988 $ 21.28 — $ — Granted 38,746 22.53 32,249 21.38 Conversion to equity awards 32,249 21.38 (32,249) 21.38 Vested into shares (51,284) 25.31 — — Forfeited (19,972) 21.38 — — Outstanding at December 31, 2019 63,727 $ 22.76 — $ — Granted 39,398 25.94 — — Vested into shares (1,841) 19.69 — — Forfeited (1,089) 19.69 — — Outstanding at December 31, 2020 100,195 $ 23.20 — $ — Granted 56,276 25.94 — — Outstanding at December 31, 2021 156,471 $ 24.17 — $ — As of December 31, 2021, 2020, and 2019 there was $10,413, $8,222 and $4,329 of total unrecognized compensation expense related to RSUs and PSUs awarded under the 2019 Amended Plan, respectively. The unrecognized compensation expense at December 31, 2021 is expected to be recognized over the remaining weighted average requisite service period of 1.81 years. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019 is presented below: Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31, 2021 2020 2019 Nonperformance-based stock options exercised $ 9,214 $ 954 $ 334 RSUs vested 2,781 2,529 6,113 PSUs vested — 36 1,089 Veritex (Green) 2014 Plan A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 changes during the years then ended is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Forfeited (12,673) 13.17 Exercised (116,929) 13.60 Outstanding at December 31, 2019 386,969 $ 19.30 Granted 31,075 29.13 Forfeited (30,711) 20.92 Exercised (35,333) 19.42 Outstanding at December 31, 2020 352,000 $ 19.99 Forfeited (7,245) 21.38 Exercised (126,951) 20.55 Outstanding at December 31, 2021 217,804 $ 19.62 6.13 years $4,424 Options exercisable at December 31, 2021 149,602 $ 17.73 5.58 years $3,299 As of December 31, 2021, 2020 and 2019 there was $100, $626 and $1,062, respectively, of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. The unrecognized compensation expense at December 31, 2021 is expected to be recognized over the remaining weighted average requisite service period of 0.16 years. A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan RSUs Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at December 31, 2019 116,250 $ 21.38 Granted 93,918 21.36 Vested into shares (38,744) 21.38 Forfeited (15,237) 23.62 Outstanding at December 31, 2020 156,187 $ 22.64 Granted 5,692 26.12 Vested into shares (33,335) 21.38 Forfeited (5,760) 25.21 Outstanding at December 31, 2021 122,784 $ 21.13 A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan PSUs Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 26,145 21.38 Forfeited (825) 21.38 Outstanding at December 31, 2019 25,320 $ 21.38 Granted 8,531 25.94 Forfeited (3,123) 19.69 Outstanding at December 31, 2020 30,728 $ 21.43 Granted 6,231 25.94 Forfeited (1,060) 19.69 Outstanding at December 31, 2021 35,899 $ 22.26 As of December 31, 2021, 2020 and 2019, there was $1,252, $2,484 and $1,991, respectively, of total unrecognized compensation related to outstanding RSUs and PSUs awarded under the Veritex (Green) 2014 Plan to be recognized over a remaining weighted average requisite service period of 1.17 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 year ended December 31, 2021, 2020 and 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2021 2020 2019 Non-performance-based stock options exercised $ 4,599 $ 1,021 $ 3,054 RSUs vested 713 828 — Green 2010 Plan In addition to the Veritex (Green) 2014 Plan discussed earlier in this Note, the Company assumed the Green Bancorp Inc. 2010 Stock Option Plan (“Green 2010 Plan”). A summary of the status of the Company’s stock options under the Green 2010 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Green 2010 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 768,628 10.73 Forfeited (6,241) 13.69 Exercised (190,652) 10.93 Outstanding at December 31, 2019 571,735 $ 10.64 Exercised (440,652) 10.35 Outstanding at December 31, 2020 131,083 $ 11.60 Forfeited (2,198) 13.69 Exercised (62,742) 10.51 Outstanding and exercisable at December 31, 2021 66,143 $ 12.56 2.17 years $1,800 A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2021, 2020, and 2019 is presented below: Fair Value of Options Exercised in the year ended December 31, 2021 2020 2019 Non-performance-based stock options exercised $ 1,838 $ 12,231 $ 5,554 |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Risks and Uncertainties [Abstract] | |
Significant Concentrations of Credit Risk | Significant Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the Dallas-Fort Worth metroplex and Houston metropolitan area. Such customers are normally also depositors of the Company. The distribution of commitments to extend credit approximates the distribution of loans outstanding. The Company has a diversified loan portfolio, however a significant portion of the Company's loans are collateralized by real estate. Repayment of these loans is in part dependent upon the economic conditions in the market area. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, the Company has and expects to continue to have transactions, including borrowings, with its employees, officers, directors and their affiliates. These loans are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. The aggregate amounts of such loans were approximately $12,651 and $34,944 as of December 31, 2021 and 2020, respectively. During the year ended December 31, 2021, new advances of approximately $6,185 were made to related parties with approximately $16,976 principal payments received and approximately $11,502 of loans no longer related party transactions. During the year ended December 31, 2020, new advances of approximately $12,477 were made to related parties with approximately $19,991 principal payments received. There were $4,028 and $13,191 in unfunded commitments to related parties as of December 31, 2021 and 2020, respectively. At December 31, 2021, there were no loans to employees, officers, directors or their affiliates that were considered non-performing or potentially problem loans. Deposits received from related parties as of December 31, 2021 and 2020 totaled ap proxim ately $303,190 and $506,068, respectively. |
Capital Requirements and Restri
Capital Requirements and Restrictions on Retained Earnings | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Capital Requirements and Restrictions on Retained Earnings | Capital Requirements and Restrictions on Retained Earnings Under applicable U.S. banking laws, there are legal restrictions limiting the amount of dividends the Company can declare. Approval of the regulatory authorities is required if, among other things, the effect of the dividends declared would cause regulatory capital of the Company to fall below specified minimum levels. The Company on a consolidated basis and the Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory actions and may lead to additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (“PCA”), the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and PCA classification are also subject to qualitative judgments by the regulators about components of capital, risk weightings of assets, and other factors. In addition, an institution may be downgraded to, or deemed to be in, a capital category that is lower than indicated by its capital ratios, if it is determined to be in an unsafe or unsound condition or if it receives an unsatisfactory examination rating with respect to certain matters. Under the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 and implementing regulations of the federal banking agencies, certain banking organizations with less than $10 billion in total consolidated assets may elect to satisfy a single Community Bank Leverage Ratio (“CBLR”) of Tier 1 capital to average total consolidated assets in lieu of the generally applicable capital requirements of the capital rules implementing Basel III. Banks meeting all of the requirements under this framework are not required to report or calculate risk-based capital, and will be considered to have met the well-capitalized ratio requirements under PCA regulations. The Bank was eligible and elected to use the CBLR framework as of December 31, 2020; however, the Bank was no longer eligible to use the CBLR framework beginning as of June 30, 2021. As a result of our no longer using the CBLR framework, we are subject to various quantitative measures established by regulation to ensure capital adequacy. These generally applicable capital requirements require a banking organization that does not operate under the CBLR framework to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital, and common equity Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The capital rules implementing Basel III also include a “capital conservation buffer” of 2.5% on top of each of the minimum risk-based capital ratios, and a banking organization with any risk-based capital ratio that meets or exceeds the minimum requirement but does not meet the capital conservation buffer will face constraints on dividends, equity repurchases and discretionary bonus payments based on the amount of the shortfall. Additionally, to be categorized as “well capitalized,” a bank that does not operate under the CBLR framework is required to maintain minimum total risk-based common equity Tier 1, Tier 1, and total capital ratios and Tier 1 leverage ratios as set forth in the table below. As of December 31, 2021 and December 31, 2020, the Company’s and the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized.” There are no conditions or events since December 31, 2021 that management believes have changed the Company’s category. 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, the Company elected to utilize the five-year CECL transition. As a result, the effects of CECL on the Company's and the Bank’s regulatory capital will be delayed through the year 2021, after which the effects will be phased-in over a three-year period from January 1, 2022 through December 31, 2024. A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total capital (to risk-weighted assets "RWA") Company $ 1,100,404 11.60 % $ 758,899 8.0 % n/a n/a Bank 1,053,871 11.11 758,863 8.0 $ 948,579 10.0 % Tier 1 capital (to RWA) Company 843,585 8.89 569,349 6.0 n/a n/a Bank 994,351 10.48 569,285 6.0 759,047 8.0 Common equity tier 1 (to RWA) Company 814,138 8.58 426,995 4.5 n/a n/a Bank 994,351 10.48 426,964 4.5 616,725 6.5 Tier 1 capital (to average assets) Company 843,585 9.05 372,855 4.0 n/a n/a Bank 994,351 10.69 372,068 4.0 465,085 5.0 As of December 31, 2020 Total capital (to RWA) Company $ 1,099,031 13.57 % $ 647,918 8.0 % n/a n/a Bank 968,481 11.96 647,813 8.0 $ 809,767 10.0 % Tier 1 capital (to RWA) Company 782,487 9.66 486,017 6.0 n/a n/a Bank 884,471 10.92 485,973 6.0 647,964 8.0 Common equity tier 1 (to RWA) Company 753,261 9.30 364,481 4.5 n/a n/a Bank 884,471 10.92 364,480 4.5 526,471 6.5 Tier 1 capital (to average assets) Company 782,487 9.43 331,914 4.0 n/a n/a Bank 884,471 10.66 331,884 4.0 414,855 5.0 Dividend Restrictions Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. Capital requirements further limit the amount of dividends that may be paid by the Bank. Dividends of $8,440 and $65,000 were paid by the Bank to the Holdco during the years ended December 31, 2021 and 2020, respectively. Dividends of $36,543, or $0.20 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2021. Dividends of $34,057, or $0.17 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2020. The Bank is subject to limitations on dividend payouts if, among other things, it does not have a capital conservation buffer of 2.5% or more. The Bank had a capital conservation buffer of 3.11% as of December 31, 2021. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations North Avenue Capital, LLC ("NAC") On November 1, 2021, the Company completed its acquisition of NAC. Under this method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair values. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for NAC exceeded the provisional value of the net assets acquired, goodwill of $32,931 related to the acquisition was recorded. This goodwill resulted from the combination of expected operational synergies and increased market share in the fragmented USDA lending space. The goodwill will be deducted for tax purposes. The acquisition makes the Bank a leading player in the USDA Business and Industry lending program. It furthered the Company’s strategy of diversifying revenue streams and providing meaningful gain on sale and loan servicing fees. The Company will leverage NAC’s loan sourcing technology to further enhance the Company’s products and services. Consideration Under the terms of the definitive agreement for the acquisition, the Bank paid $57,500 in cash to existing shareholders of NAC. Three years after the transaction, NAC has the right, subject to adjustment, to receive an additional $5,000 in cash subject to certain performance measures. NAC will continue to operate under its current name and brand and in its current office space, as a wholly owned subsidiary of the Bank. Fair Value The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities will end at the earlier of (i) 12 months from the date of the acquisition or (ii) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. Provisional estimates for LHI, intangible assets and contingent consideration have been recorded for the acquisition as independent valuations have not been finalized. The Company does not expect any significant differences from estimated values upon completion of the valuations. Estimated fair values of the assets acquired and liabilities assumed in this transaction as of the closing date are as follows: Estimate at November 1, 2021 Assets acquired Cash and cash equivalents $ 1,978 LHI 29,338 Servicing asset 13,913 Other assets 690 45,919 Liabilities assumed Accounts payable and other accrued expenses 16,350 16,350 Fair value of net assets acquired 29,569 Consideration: Cash paid 57,500 Contingent consideration 5,000 Total consideration $ 62,500 Goodwill $ 32,931 Acquisition-related Expenses For the year ended December 31, 2021, the Company incurred $826 of pre-tax merger and acquisition expenses. Acquired Loans and PCD Loans Acquired loans were recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, projected default rates, loss given defaults and recovery rates. No ACL was carried over from NAC. The Bank did not identify any acquired PCD loans. The following table discloses the fair value and contractual value of loans acquired from NAC on November 1, 2021: Total acquired loans Commercial $ 27,174 Commercial Real Estate 2,164 Total contractual principal and fair value $ 29,338 Supplemental Pro Forma Information (unaudited) The following table presents supplemental pro forma information for the years ended December 31, 2020 and 2019 as if the NAC acquisition was completed as of January 1, 2019. The pro forma results combine the historical results of NAC into the Company's condensed consolidated statements of income, including the impact of certain purchase accounting adjustments, including loan discount accretion. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2019: Year Ended December 31, 2020 2019 Net interest income $ 267,331 $ 286,313 Net income 84,368 93,939 Basic EPS $ 1.69 $ 1.77 Diluted EPS 1.69 1.74 |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The following condensed balance sheets, statements of income and statements of cash flows for Veritex Holdings, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto. Balance Sheet December 31, 2021 2020 Assets Cash and cash equivalents $ 44,507 $ 129,969 Investment in subsidiaries 1,496,310 1,335,603 Other assets 3,736 4,638 Total assets $ 1,544,553 $ 1,470,210 Liabilities and Stockholders’ Equity Other liabilities $ 1,710 $ 4,056 Other borrowings 227,764 262,778 Total liabilities 229,474 266,834 Stockholders’ equity Common stock $ 560 $ 555 Additional paid-in capital 1,142,758 1,126,437 Retained earnings 275,273 172,232 Accumulated other comprehensive income 64,070 56,225 Treasury stock (167,582) (152,073) Total stockholders’ equity 1,315,079 1,203,376 Total liabilities and stockholders’ equity $ 1,544,553 $ 1,470,210 Statements of Income Year Ended December 31, 2021 2020 2019 Cash dividends from subsidiary $ 8,440 $ 65,000 $ 56,750 Excess of earnings over dividend from subsidiary 142,289 16,693 43,199 Other 43 53 50 150,772 81,746 99,999 Interest on borrowings 12,426 8,529 4,672 Salaries and employee benefits 668 612 790 Merger and acquisition expense — — 4,942 Other 1,057 798 797 14,151 9,939 11,201 Earnings before income tax benefit 136,621 71,807 88,798 Income tax benefit (2,963) (2,076) (1,941) Net income $ 139,584 $ 73,883 $ 90,739 Statements of Cash Flows Year Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 139,584 $ 73,883 $ 90,739 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount and debt issuance costs, net 817 1,263 2,353 Equity in undistributed net income of Bank (142,289) (16,693) (43,199) Decrease (increase) in other assets 902 (1,853) (1,861) (Increase) decrease in other liabilities (3,177) 726 (5,024) Net cash (used in) provided by operating activities (4,163) 57,326 43,008 Cash flows from investing activities: Net cash received in acquisition — — 5,818 Net cash provided by investing activities — — 5,818 Cash flows from financing activities: Proceeds from issuance of subordinated notes, net of debt issuance costs paid — 123,026 75,000 Proceeds from exercise of stock warrants 165 109 — Redemption of subordinated debt (35,000) (5,000) — Proceeds from exercise of employee stock options 6,313 4,301 3,938 Payments to tax authorities for stock-based compensation (725) (3,829) (1,346) Repurchase of treasury stock (15,509) (57,470) (94,533) Dividends paid (36,543) (34,057) (26,796) Net cash (used in) provided by financing activities (81,299) 27,080 (43,737) Net (increase) decrease in cash and cash equivalents (85,462) 84,406 5,089 Cash and cash equivalents at beginning of year 129,969 45,563 40,474 Cash and cash equivalents at end of year $ 44,507 $ 129,969 $ 45,563 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Codification | Accounting Standards Codification The Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) is the officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”) under the authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. All other accounting literature is considered non-authoritative. Citing particular content in the ASC involves specifying the unique numeric path to the content through the Topic, Subtopic, Section and Paragraph structure. |
Segment Reporting | Segment Reporting The Company has one reportable segment. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each activity of the Company supports the others. For example, lending is dependent upon the ability of the Company to fund itself with deposits and borrowings while managing interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Bank as one segment or unit. The Company’s chief operating decision-maker, the Chief Executive Officer, uses the consolidated results to make operating and strategic decisions. |
Reclassifications | Reclassifications |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The allowance for credit losses, the fair values of financial instruments, realization of deferred tax assets, and the status of contingencies are particularly subject to change. |
Cash and Cash Equivalents and Restrictions on Cash | Cash and Cash Equivalents Cash and cash equivalents include amounts due from banks, interest-bearing deposits in other banks and federal funds sold. The Bank maintains deposits with other financial institutions in amounts that exceed federal deposit insurance coverage. Furthermore, federal funds sold are essentially uncollateralized loans to other financial institutions. Management regularly evaluates the credit risk associated with the counterparties to these transactions and believes that the Company is not exposed to any significant credit risks on cash and cash equivalents. Restrictions on Cash The Bank is required to maintain regulatory reserve balances with the Federal Reserve Bank. On March 15, 2020, the Board of Governors of the Federal Reserve System announced that it had reduced the required regulatory reserve balance to 0% effective on March 26, 2020. The Board of Governors took this action in reaction to the economic dislocation caused by the COVID-19 pandemic and in light of the Federal Open Markets Committee's announcement in 2019 that it intends to implement monetary policy in an ample reserve regime, where reserve requirements do not play a role. |
Debt Securities | Debt Securities Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as HTM 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 AFS and are carried at fair value. Unrealized gains and losses on debt securities classified as AFS have been accounted for as accumulated other comprehensive income (loss), net of taxes. Management determines the appropriate classification of debt 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. Realized gains and losses are recorded on the sale of debt securities in noninterest income. |
Equity Securities | Equity SecuritiesEquity securities are recorded at fair value, with unrealized gains and losses included in other noninterest income. The Company measures equity securities that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Dividends on equity securities are recorded in interest income for equity securities and other investments. Realized gains and losses are recorded on the sale of equity securities in gain (loss) on sales of securities. |
ACL - AFS and HTM Debt Securities | ACL – AFS Debt Securities For AFS 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 AFS 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 benefit of) credit loss expense. Losses are charged against the allowance when management believes the non-collectability of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses. ACL – HTM Debt Sec u ri ti es Management measures expected credit losses on HTM 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 HTM debt securities is excluded from the estimate of credit losses . Management classifies the HTM 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 debt 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 |
FHLB and FRB Stock | FHLB and FRB Stock The Bank is a member of its regional FRB and of the FHLB system. FHLB members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. Both FRB and FHLB stock are carried at cost, restricted for sale, and periodically evaluated for impairment based on ultimate recovery of par value. Dividends are recorded in interest income for equity securities and other investments. |
Loans Held for Sale | Loans Held for Sale Loans are classified as held-for-sale when management has positively determined that the loans will be sold in the foreseeable future and the Company has the intent and ability to do so. The Company’s held-for-sale loans typically consist of certain government guaranteed loans or mortgage loans. The classification may be made upon origination or subsequent to origination or purchase. Once a decision has been made to sell loans not previously classified as held-for-sale, such loans are transferred into the held-for-sale classification and carried at the lower of cost or estimated fair value on an individual loan basis, except for those held-for-sale loans for which the Company elects to use the fair value option. The fair value of loans held-for-sale is based on commitments from investors or prevailing market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Company obtains commitments to purchase the loans from secondary market investors prior to closing of the loans. Mortgage loans held for sale are sold with servicing released. Gains and losses on sales of loans held for sale are based on the difference between the selling price and the carrying value of the related loan sold. |
Fair Value Option | Fair Value Option On a specific identification basis, the Company may elect the fair value option for certain financial instruments in the period the financial instrument was originated or acquired. As of December 31, 2021, the Company had held for sale government guaranteed loans and held for investment PPP loans that the Company has elected to carry at fair value. Changes in fair value for instruments using the fair value option are recorded in noninterest income. The Company had a decrease in fair value for loans the Company elected to carry at fair value of $1,845 for the year ended December 31, 2021 as compared to a decrease in the fair value for loans the Company elected to carry at fair value of $2,040 for the year ended December 31, 2020. There was an increase of $303 in fair value for loans held for sale using the fair value option for the year ended December 31, 2019. In addition, the Company records upfront costs and fees as incurred that are related to items for which the fair value option is elected through noninterest income. For the years ended December 31, 2021 and 2020, the Company recognized upfront fees of $7,721 and $12,811 on PPP loans through government guaranteed loan income, net, on the consolidated statements of income, respectively. There were minimal upfront fees recognized on loans electing the fair value option for the years ended December 31, 2019. |
Gain on Sale of Loans | Gain on Sale of Guaranteed Portion of Small Business Administration ("SBA") and United States Department of Agriculture ("USDA") Loans The Company originates loans to customers under government guaranteed programs that generally provide for guarantees of 50% to 90% of each loan, subject to a maximum guaranteed amount. The Company can sell the guaranteed portion of the loan in an active secondary market and retains the unguaranteed portion in its portfolio. All sales of government guaranteed loans are executed on a servicing retained basis, and the Company retains the rights and obligations to service the loans. The standard sale structure provides for the Company to retain a portion of the cash flow from the interest payment received on the loan. When a loan sale involves the transfer of an interest less than the entire loan, the controlling accounting method under FASB ASC 860, Transfers and Servicing, requires the seller to reallocate the carrying basis between the assets transferred and the assets retained based on the relative fair value of the respective assets as of the date of sale. The maximum gain on sale that can be recognized is the difference between the fair value of the assets sold and the reallocated basis of the assets sold. The gain on sale, which is recognized in government guaranteed loan income, net on the consolidated statements of income, is the sum of the cash premium on the guaranteed loan and the fair value of the servicing assets recognized, less the discount recorded on the unguaranteed portion of the loan retained by the Company. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $6,194, $3,379, and $4,388, respectively, of gain on sales of government guaranteed loans. Gain on Sale of Mortgage Loans Held for Sale Certain mortgage loans held for sale are sold with servicing released. Gains and losses on sales of mortgage loans held for sale are based on the difference between the selling price and the carrying value of the loan sold. |
Adoption of New Accounting Standard and Recent Accounting Pronouncements | Adoption of New Accounting Standard 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 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, ASC 326 made changes to the accounting for AFS 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 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: ACL on debt securities HTM $ — $ — $ — ACL 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 ("OOCRE") 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate ("NOOCRE") 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 ACL on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: ACL on OBS credit exposures $ 1,718 $ 878 $ 840 ASU 2019-12, "Income Taxes (Topic 740)" ("ASU 2019-12") simplifies the accounting for income taxes by removing certain exceptions and improves the consistent application of GAAP by clarifying and amending other existing guidance. ASU 2019-12 was effective for us on January 1, 2021 and did not have a significant impact on our consolidated financial statements and related disclosures. ASU 2020-04, " Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04") amendments provide optional guidance for a limited time to ease the potential burden in accounting for reference rate reform. The new guidance provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 did not significantly impact our consolidated financial statements and related disclosures. ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs ("ASU 2020-08") clarifies the accounting for the amortization of purchase premiums for callable debt securities with multiple call dates. ASU 2020-08 was effective for us on January 1, 2021 and did not have a significant impact on our consolidated financial statements and related disclosures. |
LHI | LHI 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 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 nonaccrual status regardless of whether or not such loans are considered past due. When a loan is placed on nonaccrual 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 PCI. 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 for all applicable areas of accounting which include credit loss measurement, interest income recognition, non-accrual determination, write-off determination and trouble debt restructuring identification. 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 for credit loss 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. |
ACL - Loans | ACL - Loans The ACL is a valuation account that is deducted from the LHI amortized cost basis to present the net amount expected to be collected on LHI. The Company estimates the ACL on loan held for investment 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 provision for 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, or 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 uses a probability of default/loss given default (“PD/LGD”) model to estimate expected credit losses for our PCD loans and pools acquired prior to January 1, 2020. 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 CRE as they are more sensitive to adverse economic conditions. 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. 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 similar 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 costs 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 LHI 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 CRE, construction and 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 speeds, curtailment rates, 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 CRE 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 as of the reporting period. 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 speeds, curtailment rates 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 refined 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 MW loan pool. For these loan segments, 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 speeds, time to recovery, probability of default, and loss given default. 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. An ACL is established for the di fference between the instrument’s undiscounted cash flows and amortized cost basis. The ACL is further refined 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 ACL on Off-Balance Sheet Credit Exposures | Loan Commitments and ACL on Off-Balance Sheet Credit Exposures Financial instruments include OBS credit instruments, such as commitments to make loans, MW commitments and standby and commercial 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 OBS 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 OBS 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 consolidated statements of income. The ACL on OBS 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. |
Derivatives 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 swap fees and 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 Accounting 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. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets (generally consisting of sales of loans held for sale and loan participation with unaffiliated banks) are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Equity Method Investments | Equity Method Investments The Company applies the equity method of accounting to investments when the Company has significant influence, but not a controlling interest in the investee. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions and material intercompany transactions. The Company’s equity method investments are reported at cost and include direct transaction costs to make the investment. Equity method investments are subsequently adjusted each period for the Company’s proportionate share of the investee’s income or loss, which includes an elimination by the Company of any intra-entity profits and losses In addition, the Company’s subsequent proportionate share of other comprehensive income or loss is reported in the Company’s condensed consolidated statements of comprehensive income with a corresponding adjustment to the equity method investment. Any dividends received on the investment are recognized as a reduction to the carrying amount of the investment. The difference between the cost of an investment and the amount of underlying equity in net assets of the investee represents an equity method basis difference, which shall be accounted for as if the investee were consolidated. The Company accounts for the equity method basis difference as equity method goodwill. The Company assesses equity method investments for impairment whenever events or changes in circumstances indicate that the carrying value of an investment may not be recoverable. |
Bank Premises and Equipment | Bank Premises and Equipment Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years Major replacements and betterments are capitalized while maintenance and repairs are charged to expense when incurred. Gains or losses on dispositions are reflected in the consolidated statements of income as incurred. Bank premises and equipment with definite lives are tested for impairment when a triggering event occurs. No impairment charges related to bank premises and equipment assets were recorded during the years ended December 31, 2021, 2020 and 2019. |
Leases | Leases The Company’s operating leases relate primarily to office space and bank branches. Right-of-use (“ROU”) assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives, deferred rent and prepaid rent. Operating lease expense, which consists of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in occupancy and equipment expense in the consolidated statements of income. Certain of the Company’s leases contain options to renew the lease; however, these renewal options are not included in the calculation of the lease liabilities as they are not reasonably certain to be exercised. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. See Note 8 - Leases for additional information. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase represent the purchase of interests in securities by the Company’s customers. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. The Company does not account for any of its repurchase agreements as sales for accounting purposes in its financial statements. Repurchase agreements are settled on the following business day. All securities sold under agreements to repurchase are collateralized by pledged debt securities. The debt securities underlying the repurchase agreements are held in safekeeping by the Bank’s safekeeping agent. |
OREO | OREO OREO represents properties acquired through or in lieu of loan foreclosure and is initially recorded at fair value less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Bank’s recorded investment in the related loan, a write-down is recognized through a charge to the ACL. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company has purchased life insurance policies on certain employees. These bank-owned life insurance (“BOLI”) policies are recorded in the accompanying consolidated balance sheets at their cash surrender values. Income from these policies and changes in the cash surrender values are recorded in noninterest income in the Company's consolidated statements of income. Death benefit proceeds in excess of cash surrender are recorded when realized in noninterest income in the Company's consolidated statements of income. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill resulting from a business combination represents the excess of the fair value of the consideration transferred over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is not amortized but is reviewed for potential impairment annually on October 31 of each fiscal year or when a triggering event occurs. The Company may first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company has an unconditional option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the 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 performed its annual goodwill impairment test as of October 31, 2021 using a qualitative impairment assessment and determined that it was not more likely than not that the fair value of our reporting unit was less than its carrying amount. The Company also did not identify any potential impairment indicators subsequent to our annual assessment. Management will continue to monitor events that could impact this conclusion in the future. Intangible assets consist of core deposit intangibles and in-place lease intangibles associated with the purchase of our corporate office. Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term |
Servicing Assets | Servicing Assets The Company accounts for its servicing assets at amortized cost in accordance with ASC 860, " Servicing Assets and Liabilities ." The codification requires that servicing rights acquired through the origination of loans, which are sold with servicing rights retained, are recognized as separate assets. Servicing assets are recorded as the difference between the contractual servicing fees and adequate compensation for performing the servicing, and are periodically reviewed and adjusted for any impairment. The amount of impairment recognized, if any, is the amount by which the servicing assets exceed their fair value. The amount of recovery, if any, cannot exceed the previous impairment recognized. Fair value of the servicing assets is estimated using discounted cash flows based on current market interest rates. Servicing rights are amortized over their estimated lives. |
Marketing Expense | Marketing ExpenseThe Company expenses all marketing costs as they are incurred. |
Income Taxes | Income Taxes The Company files a consolidated income tax return with its subsidiaries. Federal income tax expense or benefit is allocated on a separate return basis. The Company accounts for income taxes using the asset and liability approach for financial accounting and reporting. Deferred tax assets and liabilities are reflected at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. The Company may recognize the tax benefit of an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements would be the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. For the years ended December 31, 2021 and 2020, management has determined there are no material uncertain tax positions. When necessary, the Company would include interest assessed by taxing authorities in “interest expense” and penalties related to income taxes in “other expense” on its Consolidated Statements of Income. The Company recorded $126, $143 and $309 of interest or penalties related to income tax for the years ended December 31, 2021, 2020 and 2019, respectively. With few exceptions, such as state examinations, the Company is generally no longer subject to U.S. federal income tax examinations by tax authorities for the years before 2018 and state income tax examinations for tax years prior to 2017 . |
Fair Value of Financial Instruments | Fair Values of Financial Instruments Fair values of financial instruments are estimated using relevant market information and other assumptions. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. The fair value estimates of existing on and off-balance sheet financial instruments do not include the value of anticipated future business or the value of assets and liabilities not considered financial instruments. |
Revenue from Contracts with Customer | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with ASC Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, debt and equity securities and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the consolidated statements of income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options and other equity awards (performance and non-performance based) issued to employees and directors, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. The market price of the Company’s common stock on the date of grant is used to estimate fair value for other nonperformance based equity awards. A Monte Carlo simulation is used to estimate the fair value of performance-based restricted stock units that include a vesting condition and a market condition based on the Company’s total shareholder return relative to a peer group comprised of commercial banks in similar markets, which determines the number of shares of Company common stock subject to the restricted stock unit. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. |
Liability-Classified Awards | Liability-Classified Awards The fair value of a liability award is determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability awards are recorded over the vesting period of the award. Changes in the fair value of liability awards that occur during the requisite service period are recognized as compensation cost over that period. The percentage of the fair value that is accrued as compensation cost at the end of each period equals the percentage of the requisite service that has been rendered at that date. Changes in the fair value of a liability award that occur after the end of the requisite service period are recognized as compensation cost in the period in which the changes occur. Any difference between the amount for which a liability award is settled and its fair value at the settlement date is an adjustment of compensation cost in the period of settlement. Compensation cost for liability awards is recorded in salaries and employee benefits and the associated liability is recorded in accounts payable and accrued expenses. For liability to equity award modifications, the aggregate amount of compensation cost recognized is the fair value-based measure of the award on the modification date. On the modification date, the Company reclassifies the previously recorded share-based compensation liability to additional paid-in capital. |
Treasury Stock | Treasury Stock Treasury stock is stated at cost, which is determined by the first-in, first-out method. |
Comprehensive Income | Comprehensive Income Comprehensive income includes all changes in stockholders’ equity during a period, except those resulting from transactions with stockholders. In addition to net income, comprehensive income includes the net effect of changes in the fair value of AFS debt securities, net of tax, and the net effect of changes in fair value of derivative instruments designated as cash flow hedges. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. |
Business Combinations | Business Combinations The Company applies the acquisition method of accounting for business combinations. Under the acquisition method, the acquiring entity in a business combination recognizes 100% of the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Where amounts allocated to assets acquired and liabilities assumed is greater than the purchase price, a bargain purchase gain is recognized. Acquisition-related costs are expensed as incurred. |
Earnings Per Share ("EPS") | Earnings Per Share ("EPS")EPS are based upon the weighted-average number of shares outstanding. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table illustrates the impact of ASC 326. January 1, 2020 As Reported Pre-ASC 326 Impact of ASC 326 Adoption Assets: ACL on debt securities HTM $ — $ — $ — ACL 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 ("OOCRE") 13,066 1,978 11,088 Non-Owner Occupied Commercial Real Estate ("NOOCRE") 15,314 8,139 7,175 Commercial 27,729 12,369 15,360 Consumer 442 122 320 ACL on loans $ 68,971 $ 29,834 $ 39,137 Liabilities: ACL on OBS credit exposures $ 1,718 $ 878 $ 840 |
Schedule of Estimated Lives of the Respective Assets | Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 5.0 years $ 81,769 $ — $ 33,771 $ 47,998 Servicing asset 7.2 years 22,090 627 3,758 17,705 Intangible lease assets 1.3 years 4,779 — 4,465 314 $ 108,638 $ 627 $ 41,994 $ 66,017 December 31, 2020 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 6.0 years $ 81,769 $ — $ 24,011 $ 57,758 Servicing asset 7.4 years 6,847 556 2,928 3,363 Intangible lease assets 1.4 years 4,779 — 4,167 612 $ 93,395 $ 556 $ 31,106 $ 61,733 |
Schedule of Reconciliation Between Weighted Average Shares Used for Calculating Basic and Diluted EPS | The table below sets forth the reconciliation between weighted average shares used for calculating basic and diluted EPS for the years ended December 31, 2021, 2020 and 2019. Year Ended December 31, 2021 2020 2019 Earnings (numerator) Net income $ 139,584 $ 73,883 $ 90,739 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 49,405 49,883 53,154 Dilutive effect of employee stock-based awards 947 153 824 Adjusted weighted average shares outstanding 50,352 50,036 53,978 EPS: Basic $ 2.83 $ 1.48 $ 1.71 Diluted $ 2.77 $ 1.48 $ 1.68 |
Supplemental Statement of Cas_2
Supplemental Statement of Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Year Ended December 31, 2021 2020 2019 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 37,139 $ 58,236 $ 88,175 Cash paid for income taxes 14,349 40,690 24,100 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability $ 6,232 $ 4,123 $ 9,380 Contingent consideration in connection with acquisitions 5,000 — — Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital — — 788 Subordinated debt issuance costs accrued but not yet paid in 2019 — — 315 Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 — — (48) Net foreclosure of OREO and repossessed assets 334 2,764 5,995 LHI transferred to loans held for sale 10,890 4,511 — Reclassification of branch assets held for sale to LHI — — 26,171 Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits — — 1,713 |
Schedule of Supplemental Noncash Investing Activities | Year Ended December 31, 2021 2020 2019 Noncash assets acquired 1 Debt securities $ — $ — $ 660,792 Equity securities — — 12,322 FHLB and FRB stock — — 29,490 Loans held for sale — — 9,360 LHI 29,338 — 3,245,248 Accrued interest receivable 2 — — 11,395 Bank-owned life insurance — — 56,841 Bank premises, furniture and equipment — — 36,855 Investment in unconsolidated subsidiaries — — 666 Other real estate owned — — — Intangible assets, net 13,913 — 65,718 Goodwill 32,931 — 209,393 Other assets 690 — 11,124 Right of use asset 2 — — 9,373 Deferred taxes 2 — — 11,783 Current taxes 2 — — 1,812 Assets held for sale — — 85,307 Total assets $ 76,872 $ — $ 4,457,479 Noncash liabilities assumed 1 Noninterest-bearing deposits $ — $ — $ 825,364 Interest-bearing deposits — — 1,300,825 Certificates and other time deposits — — 1,346,915 Accounts payable and other liabilities 16,350 — 26,491 Lease liability 3 — — 9,373 Accrued interest payable — — 5,181 Securities sold under agreements to repurchase — — 3,226 Advances from FHLB — — 300,000 Subordinated debentures and subordinated notes — — 56,233 Liabilities held for sale — — 52,682 Total liabilities $ 16,350 $ — $ 3,926,290 Total equity 29,532,957 shares of common stock exchanged in connection with Green $ — $ — $ 631,415 497,594 share of common stock exchanged in connection with Green vested RSUs $ — $ — $ 5,801 1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of NAC and 2019 related to our acquisition of Green. 2 Accrued interest receivable, right of use asset, deferred taxes and current taxes are included in "Other assets" in our consolidated balance sheets for the year ended December 31, 2019. 3 Lease liability is included in "Accounts payable and other liabilities" in the Company's consolidated balance sheets for the year ended December 31, 2019. |
Share Transactions (Tables)
Share Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Schedule of Share Repurchases | Year Ended December 31, 2021 2020 Number of shares repurchased 475,744 2,349,639 Weighted average price per share $ 32.36 $ 24.51 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gain Recognized on Equity Securities | The gross unrealized gain recognized on equity securities with readily determinable fair values recorded in other noninterest income in the Company’s consolidated statements of income were as follows: 2021 2020 2019 Unrealized (loss) gain recognized on equity securities with a readily determinable fair value $ (325) $ 480 $ 325 |
Schedule of Carrying Amount and Approximate Fair Values of Available-for-Sale Securities | The amortized cost, related gross unrealized gains and losses, ACL and the fair value of AFS and HTM debt securities are as follows: December 31, 2021 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 198,396 $ 10,294 $ 178 $ — $ 208,512 Municipal securities 116,100 8,261 431 — 123,930 Mortgage-backed securities 124,230 4,326 1,489 — 127,067 Collateralized mortgage obligations 424,174 12,240 2,350 — 434,064 Asset-backed securities 53,466 1,616 519 — 54,563 Collateralized loan obligations 45,089 — 167 — 44,922 $ 961,455 $ 36,737 $ 5,134 $ — $ 993,058 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value HTM Mortgage-backed securities $ 25,767 $ 45 $ 508 $ — $ 25,304 Collateralized mortgage obligations 5,490 560 — — 6,050 Municipal securities 28,179 2,015 102 — 30,092 $ 59,436 $ 2,620 $ 610 $ — $ 61,446 The Company did not transfer any debt securities from AFS to HTM at fair value during the year ended December 31, 2021. December 31, 2020 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 173,050 $ 6,417 $ 1,297 $ — $ 178,170 Municipal securities 115,533 10,129 6 — 125,656 Mortgage-backed securities 240,320 16,047 42 — 256,325 Collateralized mortgage obligations 388,080 20,895 66 — 408,909 Asset-backed securities 52,335 2,934 — — 55,269 $ 969,318 $ 56,422 $ 1,411 $ — $ 1,024,329 Gross Gross Amortized Unrealized Unrealized HTM Cost Gains Losses ACL Fair Value Mortgage-backed securities $ 6,982 $ 849 $ — $ — $ 7,831 Collateralized mortgage obligations 1,620 103 — — 1,723 Municipal securities 22,270 2,459 — — 24,729 $ 30,872 $ 3,411 $ — $ — $ 34,283 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | The following tables disclose the Company’s AFS debt securities in an unrealized loss position for which an ACL has not been recorded, aggregated by investment category and length of time that individual debt securities have been in a continuous loss position: December 31, 2021 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 7,072 $ 178 $ — $ — $ 7,072 $ 178 Municipal securities 12,704 194 4,350 237 17,054 431 Mortgage-backed securities 40,276 1,283 4,677 206 44,953 1,489 Collateralized mortgage obligations 106,063 2,350 — — 106,063 2,350 Asset-backed securities 11,265 519 — — 11,265 519 Collateralized loan obligations 44,922 167 — — 44,922 167 $ 222,302 $ 4,691 $ 9,027 $ 443 $ 231,329 $ 5,134 HTM Mortgage-backed securities $ 24,214 $ 508 $ — $ — $ 24,214 $ 508 Municipal securities 4,583 102 — — 4,583 102 $ 28,797 $ 610 $ — $ — $ 28,797 $ 610 December 31, 2020 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 31,953 $ 1,297 $ — $ — $ 31,953 $ 1,297 Municipal securities 2,667 6 — — 2,667 6 Mortgage-backed securities 34,402 108 — — 34,402 108 $ 69,022 $ 1,411 $ — $ — $ 69,022 $ 1,411 |
Schedule of Amortized Costs and Estimated Fair Values of Securities Available for Sale, By Contractual Maturity | Therefore, these securities are not included in the maturity categories below. December 31, 2021 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 5,201 $ 5,241 $ — $ — Due from five years to ten years 178,203 186,972 3,849 4,115 Due after ten years 131,092 140,229 24,330 25,977 314,496 332,442 28,179 30,092 Mortgage-backed securities and collateralized mortgage obligations 548,404 561,131 31,257 31,354 Asset-backed securities 53,466 54,563 — — Collateralized loan obligations 45,089 44,922 — — $ 961,455 $ 993,058 $ 59,436 $ 61,446 December 31, 2020 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 4,935 $ 5,139 $ — $ — Due from five years to ten years 154,576 158,510 3,334 3,591 Due after ten years 129,072 140,177 18,936 21,138 288,583 303,826 22,270 24,729 Mortgage-backed securities and collateralized mortgage obligations 628,400 665,234 8,602 9,554 Asset-backed securities 52,335 55,269 — — $ 969,318 $ 1,024,329 $ 30,872 $ 34,283 |
Schedule of Proceeds From Sales of Debt Securities Available for Sale and Gross Gains and Losses | Proceeds from sales of debt securities AFS and gross realized gains and losses for the years ended December 31, 2021, 2020 and 2019 were as follows: December 31, 2021 2020 2019 Proceeds from sales $ 13,300 $ 113,771 $ 567,718 Gross realized gains — 2,879 532 Gross realized losses 188 256 2,384 |
LHI and ACL (Tables)
LHI and ACL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Summary of Loans | LHI in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 LHI, carried at amortized cost: Real estate: Construction and land $ 1,062,144 $ 693,030 Farmland 55,827 13,844 1 - 4 family residential 542,566 524,344 Multi-family residential 310,241 424,962 OOCRE 665,537 717,472 NOOCRE 2,120,309 1,904,132 Commercial 2,006,876 1,559,546 MW 565,645 577,594 Consumer 11,998 13,000 7,341,143 6,427,924 Deferred loan fees, net (9,489) (2,468) ACL (77,754) (105,084) LHI carried at amortized cost, net $ 7,253,900 $ 6,320,372 LHI, carried at fair value: PPP Loans $ 53,369 $ 358,042 Total LHI, net $ 7,307,269 $ 6,678,414 |
Schedule of Government Guaranteed Loans and Fee Income | The following table summarizes the PPP fee income and net gain (loss) due to the change in the fair value of PPP loans which are included in government guaranteed loan income, net on the Company's consolidated statements of income and in change in fair value of government guaranteed loans using fair value option on the Company's consolidated statements of cash flows. December 31, 2021 December 31, 2020 PPP fee income $ 7,721 $ 12,811 Net gain (loss) due to the change in fair value 1,531 (1,799) |
Schedule of Recorded Investment in Loans Related to the Balance in the Allowance for Loan Losses on the Basis of Impairment Methodology | The activity in the ACL related to LHI is as follows: December 31, 2021 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 7,768 $ 56 $ 8,148 $ 6,231 $ 9,719 $ 35,237 $ 37,554 $ 371 $ 105,084 Credit loss (benefit) expense non-PCD loans (547) 131 (2,153) (3,567) (2,325) (7,490) (9,510) (401) (25,862) Credit loss expense PCD loans 72 — 302 — 3,721 10,737 7,622 59 22,513 Charge-offs — — (379) — (2,400) (7,936) (15,576) (99) (26,390) Recoveries — — 64 — 500 — 1,542 303 2,409 Ending Balance $ 7,293 $ 187 $ 5,982 $ 2,664 $ 9,215 $ 30,548 $ 21,632 $ 233 $ 77,754 December 31, 2020 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 3,821 $ 62 $ 2,143 $ 1,200 $ 1,991 $ 8,126 $ 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 4,554 (10) 1,720 4,403 4,364 15,397 24,413 (178) 54,663 Credit loss expense PCD loans (545) — (378) — (5,303) 7,404 817 (18) 1,977 Charge-offs — — (18) — (2,421) (2,865) (15,507) (162) (20,973) Recoveries — — 57 — — — 102 287 446 Ending Balance $ 7,768 $ 56 $ 8,148 $ 6,231 $ 9,719 $ 35,237 $ 37,554 $ 371 $ 105,084 December 31, 2019 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial Consumer Total Balance at beginning of year $ 2,186 $ 58 $ 1,614 $ 361 $ 1,393 $ 5,070 $ 8,554 $ 19 $ 19,255 Credit Loss Expense 1,635 4 619 839 598 3,056 14,487 276 21,514 Charge-offs — — (157) — — — (10,898) (265) (11,320) Recoveries — — 67 — — — 226 92 385 Ending Balance $ 3,821 $ 62 $ 2,143 $ 1,200 $ 1,991 $ 8,126 $ 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 December 31, 2021: December 31, 2021 December 31, 2020 Real Property (1) ACL Allocation Real Property (1) ACL Allocation Real estate: 1 - 4 family residential $ — $ — $ 199 $ 11 NOOCRE 17,908 7,808 16,080 — Commercial 1,702 — 8,666 4,668 Consumer 1,063 — 143 50 Total $ 20,673 $ 7,808 $ 25,088 $ 4,729 (1) Loans reported exclude PCD loans that transitioned upon adoption of ASC 326 and accounted for on a pooled basis. Refer to Note 1 for further discussion. |
Schedule of Non-Accrual Loans, Excluding Purchased Credit Impaired Loans, Aggregated By Class of Loans | Nonaccrual loans, aggregated by class of loans, as of December 31, 2021 and 2020, were as follows: December 31, December 31, Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Real estate: 1 - 4 family residential $ 990 $ 990 $ 3,308 $ 3,199 OOCRE 14,236 13,824 6,266 5,645 NOOCRE 17,978 191 40,830 19,213 Commercial 15,267 4,207 29,318 1,015 Consumer 1,216 1,216 1,374 1,220 Total $ 49,687 $ 20,428 $ 81,096 $ 30,292 |
Schedule of Age Analysis of Past Due Loans, Excluding Purchased Credit Impaired Loans, Aggregated by Class of Loans | An age analysis of past due loans, aggregated by class of loans, as of December 31, 2021 and 2020 is as follows: December 31, 2021 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 $ — $ — $ — $ — $ 1,059,796 $ 2,348 $ 1,062,144 $ — Farmland — — — — 55,827 — 55,827 — 1 - 4 family residential 2,073 — 1,008 3,081 538,307 1,178 542,566 24 Multi-family residential — — — — 310,241 — 310,241 — OOCRE 4,538 965 11,622 17,125 620,848 27,564 665,537 — NOOCRE 936 — 192 1,128 2,100,981 18,200 2,120,309 — Commercial 1,525 4,395 3,708 9,628 1,988,622 8,626 2,006,876 191 MW — — — — 565,645 — 565,645 — Consumer 135 105 1,082 1,322 10,499 177 11,998 20 $ 9,207 $ 5,465 $ 17,612 $ 32,284 $ 7,250,766 $ 58,093 $ 7,341,143 $ 235 (1) Loans 90 days past due and still accruing excludes $9,345 of pooled PCD loans and $206 of PPP loans as of December 31, 2021. December 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 $ — $ — $ — $ — $ 690,345 $ 2,685 $ 693,030 $ — Farmland — — — — 13,844 — 13,844 — 1 - 4 family residential 2,338 122 4,802 7,262 508,341 8,741 524,344 1,670 Multi-family residential — — — — 424,962 — 424,962 — OOCRE 2,278 2,143 2,814 7,235 672,246 37,991 717,472 1,280 NOOCRE 7,675 2,911 17,586 28,172 1,832,784 43,176 1,904,132 — Commercial 1,983 1,431 20,360 23,774 1,516,312 19,460 1,559,546 1,230 MW — — — — 577,594 — 577,594 — Consumer 75 77 1,338 1,490 11,308 202 13,000 24 $ 14,349 $ 6,684 $ 46,900 $ 67,933 $ 6,247,736 $ 112,255 $ 6,427,924 $ 4,204 |
Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings | The terms of certain loans modified as TDRs during the year ended December 31, 2021 and December 31, 2020 are summarized in the following tables: During the year ended December 31, 2020 Adjusted Payment Structure Payment Deferrals Total Modifications Number of Loans OOCRE $ 5,326 $ — $ 5,326 5 NOOCRE — 19,454 19,454 4 Commercial 1,419 1,345 2,764 4 Total $ 6,745 $ 20,799 $ 27,544 13 |
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 1 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2021 Construction and land: Pass $ 389,420 $ 453,262 $ 116,855 $ 57,637 $ 5,741 $ 29,182 $ 4,631 $ 1,163 $ 1,057,891 Special mention — 1,593 — 312 — — — — 1,905 PCD — — — — — 2,348 — — 2,348 Total construction and land $ 389,420 $ 454,855 $ 116,855 $ 57,949 $ 5,741 $ 31,530 $ 4,631 $ 1,163 $ 1,062,144 Farmland: Pass $ 16,849 $ 28,655 $ 27 $ 3,367 $ 2,957 $ 2,643 $ 1,329 $ — $ 55,827 Total farmland $ 16,849 $ 28,655 $ 27 $ 3,367 $ 2,957 $ 2,643 $ 1,329 $ — $ 55,827 1 - 4 family residential: Pass $ 191,333 $ 101,377 $ 54,826 $ 59,861 $ 27,743 $ 85,661 $ 12,659 $ 6,025 $ 539,485 Special mention — — — — — 352 — — 352 Substandard — — — — 81 903 567 — 1,551 PCD — — — — — 1,178 — — 1,178 Total 1-4 family residential $ 191,333 $ 101,377 $ 54,826 $ 59,861 $ 27,824 $ 88,094 $ 13,226 $ 6,025 $ 542,566 Multi-family residential: Pass $ 67,979 $ 59,239 $ 54,321 $ 68,531 $ 11,815 $ 27,020 $ 49 $ — $ 288,954 Special mention — — — 21,287 — — — — 21,287 Total multi-family residential $ 67,979 $ 59,239 $ 54,321 $ 89,818 $ 11,815 $ 27,020 $ 49 $ — $ 310,241 OOCRE: Pass $ 114,413 $ 111,516 $ 56,964 $ 73,112 $ 54,921 $ 174,500 $ 2,986 $ 2,965 $ 591,377 Special mention 2,420 — 1,052 — — 6,232 — — 9,704 Substandard — 412 — 25,440 781 10,259 — — 36,892 PCD — 1,377 — — 6,567 19,620 — — 27,564 Total OOCRE $ 116,833 $ 113,305 $ 58,016 $ 98,552 $ 62,269 $ 210,611 $ 2,986 $ 2,965 $ 665,537 NOOCRE: Pass $ 628,140 $ 298,091 $ 254,566 $ 319,359 $ 56,710 $ 336,713 $ 5,861 $ 23,015 $ 1,922,455 Special mention — 613 1,685 29,469 16,354 48,952 — 489 97,562 Substandard — 48 1,775 26,209 1,581 52,479 — — 82,092 PCD — — — 13,620 — 4,580 — — 18,200 Total NOOCRE $ 628,140 $ 298,752 $ 258,026 $ 388,657 $ 74,645 $ 442,724 $ 5,861 $ 23,504 $ 2,120,309 Commercial: Pass $ 430,213 $ 187,370 $ 124,798 $ 65,186 $ 40,254 $ 52,491 $ 968,229 $ 19,130 $ 1,887,671 Special mention 7,958 2,341 149 15,136 1,069 3,368 3,482 2,589 36,092 Substandard 15,662 5,843 6,286 14,908 4,167 2,779 20,500 4,342 74,487 PCD — — — 315 1,785 6,526 — — 8,626 Total commercial $ 453,833 $ 195,554 $ 131,233 $ 95,545 $ 47,275 $ 65,164 $ 992,211 $ 26,061 $ 2,006,876 MW: Pass $ — $ — $ — $ — $ — $ — $ 564,850 $ 250 $ 565,100 Substandard — — — — — — 545 — 545 Total MW $ — $ — $ — $ — $ — $ — $ 565,395 $ 250 $ 565,645 Consumer: Pass $ 3,362 $ 1,566 $ 512 $ 408 $ 2,777 $ 784 $ 1,006 $ 25 $ 10,440 Special mention — — — — 65 14 — — 79 Substandard — — 22 — 177 39 1,064 — 1,302 PCD — — — — 24 153 — — 177 Total consumer $ 3,362 $ 1,566 $ 534 $ 408 $ 3,043 $ 990 $ 2,070 $ 25 $ 11,998 Total Pass $ 1,841,709 $ 1,241,076 $ 662,869 $ 647,461 $ 202,918 $ 708,994 $ 1,561,600 $ 52,573 $ 6,919,200 Total Special Mention 10,378 4,547 2,886 66,204 17,488 58,918 3,482 3,078 166,981 Total Substandard 15,662 6,303 8,083 66,557 6,787 66,459 22,676 4,342 196,869 Total PCD — 1,377 — 13,935 8,376 34,405 — — 58,093 Total $ 1,867,749 $ 1,253,303 $ 673,838 $ 794,157 $ 235,569 $ 868,776 $ 1,587,758 $ 59,993 $ 7,341,143 1 Term loans amortized cost basis by origination year excludes $9,489 of deferred loan fees, net. Term Loans Amortized Cost Basis by Origination Year 1 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, 2020 Construction and land: Pass $ 155,358 $ 282,497 $ 179,372 $ 11,791 $ 9,938 $ 27,147 $ 21,066 $ — $ 687,169 Special mention — — 2,666 — — — — — 2,666 Substandard — — 510 — — — — — 510 PCD — — — — — 2,685 — — 2,685 Total construction and land $ 155,358 $ 282,497 $ 182,548 $ 11,791 $ 9,938 $ 29,832 $ 21,066 $ — $ 693,030 Farmland: Pass $ 867 $ 972 $ 3,367 $ 3,688 $ — $ 3,656 $ 1,294 $ — $ 13,844 Total farmland $ 867 $ 972 $ 3,367 $ 3,688 $ — $ 3,656 $ 1,294 $ — $ 13,844 1 - 4 family residential: Pass $ 120,580 $ 79,617 $ 91,890 $ 49,338 $ 31,936 $ 115,797 $ 19,065 $ 2,968 $ 511,191 Special mention — 1,077 154 760 — 687 — — 2,678 Substandard — — 142 668 — — 924 — 1,734 PCD — — — — — 8,741 — — 8,741 Total 1 - 4 family residential $ 120,580 $ 80,694 $ 92,186 $ 50,766 $ 31,936 $ 125,225 $ 19,989 $ 2,968 $ 524,344 Multi-family residential: Pass $ 107,332 $ 106,559 $ 139,721 $ 18,722 $ 32,672 $ 7,218 $ 58 $ — $ 412,282 Special mention — — 12,680 — — — — — 12,680 Total multi-family residential $ 107,332 $ 106,559 $ 152,401 $ 18,722 $ 32,672 $ 7,218 $ 58 $ — $ 424,962 OOCRE: Pass $ 113,741 $ 65,262 $ 75,940 $ 79,253 $ 79,202 $ 176,668 $ 5,532 $ — $ 595,598 Special mention — 948 22,725 3,701 12,860 4,326 — — 44,560 Substandard 370 — 10,579 3,830 11,315 6,822 201 6,206 39,323 PCD — — — — 7,951 30,040 — — 37,991 Total OOCRE $ 114,111 $ 66,210 $ 109,244 $ 86,784 $ 111,328 $ 217,856 $ 5,733 $ 6,206 $ 717,472 NOOCRE: Pass $ 361,246 $ 255,976 $ 445,079 $ 90,738 $ 174,893 $ 309,572 $ 13,413 $ — $ 1,650,917 Special mention 101 31,714 37,572 19,262 25,997 37,951 493 — 153,090 Substandard 1,226 0 9,850 0 4,562 4,108 — 23,098 14,105 — 56,949 PCD — — 18,744 — 6,652 17,780 — — 43,176 Total NOOCRE $ 362,573 $ 297,540 $ 505,957 $ 114,108 $ 207,542 $ 388,401 $ 28,011 $ — $ 1,904,132 Commercial: Pass $ 251,004 $ 158,158 $ 112,961 $ 50,734 $ 19,821 $ 41,856 $ 758,832 $ 13,400 $ 1,406,766 Special mention 1,306 2,539 8,224 10,033 1,201 2,165 26,922 3,670 56,060 Substandard 722 4,487 23,245 3,772 7,216 2,083 30,460 5,275 77,260 PCD — — — 3,382 4,196 11,882 — — 19,460 Total commercial $ 253,032 $ 165,184 $ 144,430 $ 67,921 $ 32,434 $ 57,986 $ 816,214 $ 22,345 $ 1,559,546 MW: Pass $ — $ — $ — $ — $ — $ — $ 577,594 $ — $ 577,594 Total MW $ — $ — $ — $ — $ — $ — $ 577,594 $ — $ 577,594 Consumer: Pass $ 2,489 $ 1,216 $ 1,038 $ 3,899 $ 887 $ 353 $ 1,475 $ — $ 11,357 Special mention — — — — 25 227 — — 252 Substandard — — — 60 — 66 1,063 — 1,189 PCD — — — 36 — 166 — — 202 Total consumer $ 2,489 $ 1,216 $ 1,038 $ 3,995 $ 912 $ 812 $ 2,538 $ — $ 13,000 Total Pass $ 1,112,617 $ 950,257 $ 1,049,368 $ 308,163 $ 349,349 $ 682,267 $ 1,398,329 $ 16,368 $ 5,866,718 Total Special Mention 1,407 36,278 84,021 33,756 40,083 45,356 27,415 3,670 271,986 Total Substandard 2,318 14,337 39,038 12,438 18,531 32,069 46,753 11,481 176,965 Total PCD — — 18,744 3,418 18,799 71,294 — — 112,255 Total $ 1,116,342 $ 1,000,872 $ 1,191,171 $ 357,775 $ 426,762 $ 830,986 $ 1,472,497 $ 31,519 $ 6,427,924 1 Term loans amortized cost basis by origination year excludes |
Schedule of Summary of Changes in Servicing Assets | A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2021 2020 Balance at beginning of year $ 3,363 $ 3,113 Servicing assets acquired through acquisition 13,913 — Increase from loan sales 1,330 1,121 Servicing asset impairment, net of recoveries (71) (368) Amortization charged as a reduction to income (830) (503) Balance at year-end $ 17,705 $ 3,363 |
Bank Premises, Furniture and _2
Bank Premises, Furniture and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Bank Premises, Furniture and Equipment | Bank premises, furniture and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Building and improvements $ 53,955 $ 61,035 Site improvements 2,903 3,303 Tenant improvements 779 779 Leasehold improvements 7,358 5,923 Land 38,709 44,078 Furniture, fixtures and equipment 25,662 17,751 Construction in progress 1,464 630 130,830 133,499 Less accumulated depreciation and amortization 21,559 18,436 $ 109,271 $ 115,063 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Summary of Lease Costs and Other Information | The table below summarizes the Company’s net lease cost: For the Year Ended December 31, 2021 2020 Operating lease cost $ 4,298 $ 4,131 Variable lease cost 641 810 Net lease cost $ 4,939 $ 4,941 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,051 $ 3,994 Weighted-average remaining lease term - operating leases, in years 6.0 years 3.3 years Weighted-average discount rate - operating leases 1.94 % 1.56 % |
Summary of Remaining Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is as follows: December 31, 2021 Lease payments due: Within one year $ 4,107 After one but within two years 3,879 After two but within three years 3,478 After three but within four years 2,637 After four but within five years 1,680 After five years 3,991 Total undiscounted cash flows 19,772 Less: Discount on cash flows (1,749) Total lease liability $ 18,023 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows: Core deposit intangible 7 - 10 years In-place lease intangible Lease term Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 5.0 years $ 81,769 $ — $ 33,771 $ 47,998 Servicing asset 7.2 years 22,090 627 3,758 17,705 Intangible lease assets 1.3 years 4,779 — 4,465 314 $ 108,638 $ 627 $ 41,994 $ 66,017 December 31, 2020 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 6.0 years $ 81,769 $ — $ 24,011 $ 57,758 Servicing asset 7.4 years 6,847 556 2,928 3,363 Intangible lease assets 1.4 years 4,779 — 4,167 612 $ 93,395 $ 556 $ 31,106 $ 61,733 |
Schedule of the Estimated Aggregate Future Amortization Expense for Intangible Assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2021 was as follows: Year Amount 2022 $ 12,453 2023 12,262 2024 12,199 2025 11,863 2026 11,777 Thereafter 5,463 $ 66,017 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of Goodwill | Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Balance at beginning of year $ 370,840 $ 370,840 North Avenue Capital, LLC acquisition (preliminary) 32,931 — Balance at end of year $ 403,771 $ 370,840 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Statistical Disclosure for Banks [Abstract] | |
Schedule Summarized of the Deposits | Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2021 2020 Noninterest-bearing demand accounts $ 2,510,723 $ 2,097,099 Interest-bearing demand accounts 579,406 453,111 Savings accounts 128,062 106,820 Limited access money market accounts 2,568,844 2,398,525 Certificates of deposit, greater than $250 651,345 827,594 Certificates of deposit, less than $250 925,235 629,697 Total $ 7,363,615 $ 6,512,846 |
Scheduled Maturities of Certificate of Deposits | As of December 31, 2021, the scheduled maturities of certificates of deposit were as follows: Year Amount 2022 $ 1,017,162 2023 523,160 2024 21,234 2025 11,200 2026 3,824 Total $ 1,576,580 |
Advances from the FHLB (Tables)
Advances from the FHLB (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Advances from Federal Home Loan Banks [Abstract] | |
Schedule of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at December 31, 2021 were as follows: 2022 $ 27,562 2025 and thereafter 750,000 Total $ 777,562 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Junior Subordinated Debentures and Subordinated Notes | Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2021 2020 Junior subordinated debentures (1) $ 30,465 $ 30,244 Subordinated notes (2) 197,299 232,534 $ 227,764 $ 262,778 (1) Junior subordinated debentures are net of a discount of $3,403 and 3,624 as of December 31, 2021 and 2020, respectively. (2) Subordinated notes include a premium of $1,038 as of December 31, 2020 and debt issuance costs of $2,701 and $3,504 as of December 31, 2021 and 2020, respectively. Subordinated notes include no premium as of December 31, 2021 as the Company paid off the related subordinated debt during the year ended December 31, 2021. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Components of Provision for Income Taxes | The provision for income taxes is summarized as follows: Year Ended December 31, 2021 2020 2019 Income tax expense (benefit): Current $ 32,075 $ 23,587 $ 16,068 Deferred 4,647 (9,384) 9,053 $ 36,722 $ 14,203 $ 25,121 |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles income tax expense for the years ended December 31, 2021, 2020 and 2019 computed by applying the applicable U.S. federal statutory income tax rate, reconciled to the tax expense computed at the effective income tax rate: Year Ended December 31, 2021 2020 2019 Federal income tax expense rate at 21% for December 31, 2021, 2020 and 2019 $ 37,024 $ 18,498 $ 24,330 Bank-owned life insurance (852) (407) (422) Non-deductible transaction costs 78 — 308 Tax exempt interest income (545) (452) (391) Impact of IRS Settlement — — (1,556) Deferred tax true up 24 (1,181) — 162(m) Disallowance 504 65 1,512 State Taxes 1,039 902 760 Excess benefit on share-based compensation (838) (1,435) 205 Net Operating Loss ("NOL") Carryback — (1,799) — Other 288 12 375 Total income tax expense $ 36,722 $ 14,203 $ 25,121 Effective tax rate 20.8 % 16.1 % 21.7 % |
Schedule of Significant Components of the Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2021 2020 Deferred tax assets: ACL $ 18,274 $ 24,324 Equity compensation 4,111 3,390 Purchase premium/loan discounts 1,555 2,945 Bonuses 3,036 1,437 Lease liability 3,785 3,276 Deferred fee income 1,967 65 Purchase securities 2,507 2,905 Other 1,317 2,399 Total deferred tax assets 36,552 40,741 Deferred tax liabilities: Intangibles 10,372 11,911 Bank premises and equipment 5,773 4,036 ROU asset 3,583 3,124 Net unrealized gain on AFS debt securities and derivative instruments 17,030 14,944 Other 1,864 2,063 Total deferred tax liabilities 38,622 36,078 Net deferred tax (liability) asset $ (2,070) $ 4,663 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2021, 2020 and 2019. During the year ending December 31, 2020, the Company recorded an uncertain tax position liability for state nexus tax exposure of $549 in accounts payable and other liabilities in the accompanying consolidated balance sheets. During the year ending December 31, 2019, the Company recorded an uncertain tax position associated with the acquisition of Green and subsequently reached a settlement with the taxing authority. December 31 2021 2020 2019 Unrecognized tax benefits at the beginning of the year: $ 549 $ — $ — Gross increases, related to tax positions taken in a prior period — 281 2,155 Gross decreases, related to tax positions taken in a prior period (101) — — Gross increases, related to tax positions taken in current period 55 268 — Settlement with taxing authority — — (2,155) Unrecognized tax benefits at the end of the year $ 503 $ 549 $ — |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The following table summarizes assets measured at fair value on a recurring basis as of December 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2021 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 993,058 $ — $ 993,058 Equity securities with a readily determinable fair value 11,038 — — 11,038 PPP Loans — 53,369 — 53,369 Loans held for sale (1) — 9,867 — 9,867 Interest rate swap designated as hedging instruments — 7,001 — 7,001 Correspondent interest rate swaps not designated as hedging instruments — 1,527 — 1,527 Customer interest rate swaps not designated as hedging instruments — 3,261 — 3,261 Customer interest rate caps and collars not designated as hedging instruments — 1 — 1 Financial Liabilities: Interest rate swap designated as hedging instruments $ — $ 1,404 $ — $ 1,404 Correspondent interest rate swaps not designated as hedging instruments — 3,498 — 3,498 Customer interest rate caps and collars not designated as hedging instruments — 1,442 — 1,442 Correspondent interest rate caps and collars not designated as hedging instruments — 1 — 1 (1) Represents loans held for sale elected to be carried at fair value upon origination or acquisition. December 31, 2020 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,024,329 $ — $ 1,024,329 Equity securities with a readily determinable fair value 11,363 — — 11,363 PPP Loans — 358,042 — 358,042 Loans held for sale (1) — 6,681 — 6,681 Interest rate swap designated as hedging instruments — 17,543 — 17,543 Customer interest rate swaps not designated as hedging instruments — 10,937 — 10,937 Correspondent interest rate caps and collars not designated as hedging instruments — 1 — 1 Financial Liabilities: Interest rate swap designated as hedging instruments $ — $ 2,255 $ — $ 2,255 Correspondent interest rate swaps not designated as hedging instruments — 11,666 — 11,666 Customer interest rate caps and collars not designated as hedging instruments — 1 — 1 (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 December 31, 2021 and 2020, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements Using Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value As of December 31, 2021 Assets: Collateral dependent loans with an ACL $ — $ — $ 10,100 $ 10,100 Servicing assets with a valuation allowance — — 3,223 3,223 As of December 31, 2020 Assets: Collateral dependent loans with an ACL $ — $ — $ 2,386 $ 2,386 Servicing assets with a valuation allowance — — 2,975 2,975 |
Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments | The estimated fair values and carrying values of all financial instruments not measured at fair value on a recurring or non-recurring basis under current authoritative guidance as of December 31, 2021 and 2020 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2021 Financial assets: Cash and cash equivalents $ 379,784 $ — $ 379,784 $ — Held-to-maturity debt securities 59,436 — 61,446 — Securities purchased under agreements to resell 102,288 — 102,288 — Loans held for sale (1) 16,140 — 16,140 — LHI (2) 7,259,233 — — 7,283,992 Accrued interest receivable 22,008 — 22,008 — Bank-owned life insurance 83,194 — 83,194 — Servicing asset 14,482 — 14,482 — Equity securities without a readily determinable fair value 4,355 N/A N/A N/A FHLB and FRB stock 71,892 N/A N/A N/A Financial liabilities: Deposits $ 7,363,615 $ — $ 7,145,175 $ — Advances from FHLB 777,562 — 796,480 — Accrued interest payable 1,507 — 1,507 — Subordinated debentures and subordinated notes 227,764 — 227,764 — Securities sold under agreement to repurchase 4,069 — 4,026 — December 31, 2020 Financial assets: Cash and cash equivalents $ 230,825 $ — $ 230,825 $ — Held-to-maturity debt securities 30,872 — 34,283 — Loans held for sale (1) 14,733 — 14,733 — LHI (2) 6,317,986 — — 6,335,402 Accrued interest receivable 23,798 — 23,798 — Bank-owned life insurance 82,855 — 82,855 — Servicing asset 388 — 486 — Equity securities without readily determinable fair value 3,575 N/A N/A N/A FHLB and FRB stock 71,236 N/A N/A N/A Financial liabilities: Deposits $ 6,512,846 $ — $ 6,608,849 $ — Advances from FHLB 77,718 — 782,321 — Accrued interest payable 2,665 — 2,665 — Subordinated debentures and subordinated notes 262,778 — 262,778 — Securities sold under agreement to repurchase 2,225 — 2,199 — (1) Loans held for sale primarily represent commercial loans moved to held for sale or mortgage loans held for sale that are carried at lower of cost or market. (2) LHI includes MW and is carried at amortized cost. |
Off-Balance Sheet Loan Commit_2
Off-Balance Sheet Loan Commitments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of the Approximate Amounts of Financial Instruments with Off-balance Sheet Risk | The following table sets forth the approximate amounts of these financial instruments as of December 31, 2021 and 2020: December 31, 2021 2020 Commitments to extend credit $ 3,809,509 $ 2,743,571 MW commitments 716,370 354,603 Standby and commercial letters of credit 65,881 44,427 $ 4,591,760 $ 3,142,601 |
Schedule of Allowance For Unfunded Commitments | The table below presents the activity in the allowance for unfunded commitment credit losses related to those financial instruments discussed above. This allowance is recorded in accounts payable and other liabilities on the Consolidated Balance Sheets: December 31, 2021 2020 Beginning balance for ACL on unfunded commitments $ 10,747 $ 878 Impact of CECL adoption — 840 (Benefit) provision for credit losses on unfunded commitments (1,481) 9,029 Ending balance of ACL on unfunded commitments $ 9,266 $ 10,747 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Balance Sheet | The notional amounts and estimated fair values as of December 31, 2021 and December 31, 2020 were as shown in the table below. December 31, 2021 December 31, 2020 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ — $ — $ — $ 500,000 $ 17,543 $ — Interest rate swap on money market deposit account payments 250,000 4,541 — 250,000 — 2,255 Interest rate swap on customer loan interest payments 125,000 — 867 — — — Interest rate swap on customer loan interest payments 125,000 — 537 — — — Interest rate swap on customer loan interest payments 125,000 2,460 — — — — Total derivatives designated as hedging instruments $ 625,000 $ 7,001 $ 1,404 $ 750,000 $ 17,543 $ 2,255 Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps $ 379,787 $ 1,527 $ 3,498 $ 303,918 $ — $ 11,666 Interest rate caps and collars 41,916 — 1 41,916 1 — Commercial customer counterparty: Interest rate swaps 379,787 3,261 1,442 303,918 10,937 — Interest rate caps and collars 41,916 1 — 41,916 — 1 Total derivatives not designated as hedging instruments $ 843,406 $ 4,789 $ 4,941 $ 691,668 $ 10,938 $ 11,667 Offsetting derivative assets/liabilities (2,609) (2,609) 1 1 Total derivatives $ 1,468,406 $ 9,181 $ 3,736 $ 1,441,668 $ 28,482 $ 13,923 |
Derivative Instruments, Gain (Loss) | Pre-tax gain (loss) included in the Company's consolidated statements of income and related to derivative instruments for the years ended December 31, 2021 and 2020 was as follows: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Net gain (loss) recognized in other comprehensive income on derivative Gain (loss) reclassified from accumulated other comprehensive income into income Location of gain (loss) reclassified from accumulated other comprehensive income into income Net gain (loss) recognized in other comprehensive income on derivative Gain (loss) reclassified from accumulated other comprehensive income into income Location of gain (loss) reclassified from accumulated other comprehensive income into income Derivatives designated as hedging instruments (cash flow hedges): Interest rate swap on borrowing advances $ 26,357 $ — Interest Expense $ 13,859 $ — Interest Expense Interest rate swap on money market deposit account payments 6,995 (803) Interest Expense (1,781) (605) Interest Expense Commercial loan interest rate floor — 866 Interest Income (813) 1,937 Interest Income Interest rate swap on customer loan interest payments (14) 3,714 Interest Income — — Total $ 33,338 $ 3,777 $ 11,265 $ 1,332 Net Gain recognized in other noninterest income Loss recognized in other noninterest income Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ 1,913 $ 2,481 |
Schedule of Derivative Instruments Outstanding | The following is a summary of the interest rate swaps outstanding as of December 31, 2021 and December 31, 2020. December 31, 2021 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 379,787 2.970% - 8.470% LIBOR 1 month + 2.200% - 5.000% SOFR CME 1 month + 2.480%- 2.900% SOFR - NYFD 30 day average + 2.500% - 2.964% Wtd. Avg. 4.8 years $ 1,820 Interest rate caps and collars $ 41,916 3.000% / 5.000% LIBOR 1 month + 0.00% - 2.5% Wtd. Avg. 0.6 years $ 1 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 379,787 2.970 - 8.470% LIBOR 1 month + 2.200% - 5.000% SOFR CME 1 month + 2.480%- 2.900% SOFR - NYFD 30 day average + 2.500% - 2.964% Wtd. Avg. 4.8 years $ (1,972) Interest rate caps and collars $ 41,916 2.500% / 3.000% LIBOR 1 month + 0.00% Wtd. Avg. 0.6 years $ (1) December 31, 2020 Notional Amount Fixed Rate Floating Rate Maturity Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 303,918 3.14% - 8.470% LIBOR 1 month + 0.00% - 5.00% PRIME H15 - 25 Wtd. Avg. 4.1 years $ (11,666) Interest rate caps and collars $ 41,916 2.500% / 3.000% LIBOR 1 month + 0.00% Wtd. Avg. 1.6 years $ 1 Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 303,918 3.14% - 8.470% LIBOR 1 month + 0.00% - 5.00% PRIME H15 - 25 Wtd. Avg. 4.1 years $ 10,937 Interest rate caps and collars $ 41,916 3.000% / 5.800% LIBOR 1 month + 0.00% - 2.5% Wtd. Avg. 1.6 years $ (1) |
Stock and Incentive Plans (Tabl
Stock and Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Option Activity | A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2021, 2020 and 2019 and changes during the years then ended is presented below: 2010 Incentive Plan Nonperformance-based stock options Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2018 275,000 $ 10.12 2.39 years Exercised (17,500) 10.24 Outstanding at December 31, 2019 257,500 $ 10.28 1.37 years Exercised (237,500) 10.12 Outstanding at December 31, 2020 20,000 $ 10.09 1.06 years Exercised (19,000) 10.00 Outstanding and exercisable at December 31, 2021 1,000 $ 10.43 1.07 years $ 147 A summary of the status of the Company’s stock options under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the years then ended, is as follows: 2019 Amended Plan Nonperformance-based stock options Equity Awards Liability Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2018 449,520 $ 24.47 8.24 years — $ — — Granted 200,561 22.72 253,633 21.38 Conversion to equity awards 253,633 21.38 (253,633) 21.38 Forfeited (41,336) 25.51 — — Exercised (12,610) 15.42 — — Outstanding at December 31, 2019 849,768 $ 23.61 8.24 years — $ — — Granted 185,025 26.73 — — Forfeited (25,053) 27.37 — — Exercised (33,939) 19.10 — — Outstanding at December 31, 2020 975,801 $ 24.26 7.45 years — $ — — Granted 500 36.54 — — Forfeited (13,996) 25.93 — — Exercised (252,262) 23.87 — — Outstanding at December 31, 2021 710,043 $ 24.38 6.91 years $ 10,935 — $ — — $ — Options exercisable at December 31, 2021 403,726 $ 24.50 6.38 years $ 6,171 — $ — — $ — Weighted average fair value of options granted during the period $ 36.54 $ — A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 changes during the years then ended is as follows: Veritex (Green) 2014 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 304,778 15.41 Granted 211,793 21.38 Forfeited (12,673) 13.17 Exercised (116,929) 13.60 Outstanding at December 31, 2019 386,969 $ 19.30 Granted 31,075 29.13 Forfeited (30,711) 20.92 Exercised (35,333) 19.42 Outstanding at December 31, 2020 352,000 $ 19.99 Forfeited (7,245) 21.38 Exercised (126,951) 20.55 Outstanding at December 31, 2021 217,804 $ 19.62 6.13 years $4,424 Options exercisable at December 31, 2021 149,602 $ 17.73 5.58 years $3,299 A summary of the status of the Company’s stock options under the Green 2010 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Green 2010 Plan Non-performance Based Stock Options Shares Weighted Weighted Aggregate Intrinsic Value Outstanding at January 1, 2019 — $ — Converted in acquisition of Green 768,628 10.73 Forfeited (6,241) 13.69 Exercised (190,652) 10.93 Outstanding at December 31, 2019 571,735 $ 10.64 Exercised (440,652) 10.35 Outstanding at December 31, 2020 131,083 $ 11.60 Forfeited (2,198) 13.69 Exercised (62,742) 10.51 Outstanding and exercisable at December 31, 2021 66,143 $ 12.56 2.17 years $1,800 |
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 vested under the 2010 Incentive Plan as of December 31, 2021, 2020 and 2019 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2021 2020 2019 Nonperformance-based stock options exercised $ 568 $ 6,579 $ 454 A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019 is presented below: Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31, 2021 2020 2019 Nonperformance-based stock options exercised $ 9,214 $ 954 $ 334 RSUs vested 2,781 2,529 6,113 PSUs vested — 36 1,089 Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2021 2020 2019 Non-performance-based stock options exercised $ 4,599 $ 1,021 $ 3,054 RSUs vested 713 828 — A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2021, 2020, and 2019 is presented below: Fair Value of Options Exercised in the year ended December 31, 2021 2020 2019 Non-performance-based stock options exercised $ 1,838 $ 12,231 $ 5,554 |
Summary of Stock Compensation Expense | Stock compensation expense of options, RSUs and PSUs granted under the 2019 Amended Plan and the Veritex (Green) 2014 Plan was as follows: Year ended December 31, 2021 2020 2019 Amended Plan $ 8,614 $ 6,080 Veritex (Green) 2014 Plan 1,959 1,903 |
Summary of Status of the Company's Restricted Stock Units and Performance-based Stock Units | A summary of the status of the Company’s RSUs under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the year then ended is as follows: 2019 Amended Plan RSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2018 133,455 $ 19.67 — $ — Granted 127,459 22.44 165,739 21.38 Conversion to equity awards 165,739 21.38 (165,739) 21.38 Vested into shares (250,965) 22.29 — — Outstanding at December 31, 2019 175,688 $ 21.65 — $ — Granted 360,400 20.38 — — Vested into shares (93,377) 24.73 — — Forfeited (1,579) 29.13 — — Outstanding at December 31, 2020 441,132 $ 20.39 — $ — Granted 281,149 28.68 — — Vested into shares (108,732) 24.19 — — Forfeited (15,498) 28.47 — — Outstanding at December 31, 2021 598,051 $ 23.39 — $ — A summary of the status of the Company’s PSUs under the 2019 Amended Plan as of December 31, 2021, 2020 and 2019, and changes during the years then ended is as follows: 2019 Amended Plan PSUs Equity Awards Liability Awards Units Weighted Units Weighted Outstanding at December 31, 2018 63,988 $ 21.28 — $ — Granted 38,746 22.53 32,249 21.38 Conversion to equity awards 32,249 21.38 (32,249) 21.38 Vested into shares (51,284) 25.31 — — Forfeited (19,972) 21.38 — — Outstanding at December 31, 2019 63,727 $ 22.76 — $ — Granted 39,398 25.94 — — Vested into shares (1,841) 19.69 — — Forfeited (1,089) 19.69 — — Outstanding at December 31, 2020 100,195 $ 23.20 — $ — Granted 56,276 25.94 — — Outstanding at December 31, 2021 156,471 $ 24.17 — $ — A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan RSUs Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 116,250 21.38 Outstanding at December 31, 2019 116,250 $ 21.38 Granted 93,918 21.36 Vested into shares (38,744) 21.38 Forfeited (15,237) 23.62 Outstanding at December 31, 2020 156,187 $ 22.64 Granted 5,692 26.12 Vested into shares (33,335) 21.38 Forfeited (5,760) 25.21 Outstanding at December 31, 2021 122,784 $ 21.13 A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2021, 2020 and 2019 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan PSUs Units Weighted Average Grant Date Fair Value Outstanding at January 1, 2019 — $ — Granted 26,145 21.38 Forfeited (825) 21.38 Outstanding at December 31, 2019 25,320 $ 21.38 Granted 8,531 25.94 Forfeited (3,123) 19.69 Outstanding at December 31, 2020 30,728 $ 21.43 Granted 6,231 25.94 Forfeited (1,060) 19.69 Outstanding at December 31, 2021 35,899 $ 22.26 |
Capital Requirements and Rest_2
Capital Requirements and Restrictions on Retained Earnings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Capital Requirements under Banking Regulations [Abstract] | |
Schedule of Comparison of the Company's and Bank's Actual Capital Amounts and Ratios to Required Capital Amounts and Ratios | A comparison of the Company’s and Bank’s actual capital amounts and ratios to required capital amounts and ratios is presented in the following table: Actual For Capital To Be Well Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total capital (to risk-weighted assets "RWA") Company $ 1,100,404 11.60 % $ 758,899 8.0 % n/a n/a Bank 1,053,871 11.11 758,863 8.0 $ 948,579 10.0 % Tier 1 capital (to RWA) Company 843,585 8.89 569,349 6.0 n/a n/a Bank 994,351 10.48 569,285 6.0 759,047 8.0 Common equity tier 1 (to RWA) Company 814,138 8.58 426,995 4.5 n/a n/a Bank 994,351 10.48 426,964 4.5 616,725 6.5 Tier 1 capital (to average assets) Company 843,585 9.05 372,855 4.0 n/a n/a Bank 994,351 10.69 372,068 4.0 465,085 5.0 As of December 31, 2020 Total capital (to RWA) Company $ 1,099,031 13.57 % $ 647,918 8.0 % n/a n/a Bank 968,481 11.96 647,813 8.0 $ 809,767 10.0 % Tier 1 capital (to RWA) Company 782,487 9.66 486,017 6.0 n/a n/a Bank 884,471 10.92 485,973 6.0 647,964 8.0 Common equity tier 1 (to RWA) Company 753,261 9.30 364,481 4.5 n/a n/a Bank 884,471 10.92 364,480 4.5 526,471 6.5 Tier 1 capital (to average assets) Company 782,487 9.43 331,914 4.0 n/a n/a Bank 884,471 10.66 331,884 4.0 414,855 5.0 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Acquired Assets and Assumed Liabilities | Estimated fair values of the assets acquired and liabilities assumed in this transaction as of the closing date are as follows: Estimate at November 1, 2021 Assets acquired Cash and cash equivalents $ 1,978 LHI 29,338 Servicing asset 13,913 Other assets 690 45,919 Liabilities assumed Accounts payable and other accrued expenses 16,350 16,350 Fair value of net assets acquired 29,569 Consideration: Cash paid 57,500 Contingent consideration 5,000 Total consideration $ 62,500 Goodwill $ 32,931 |
Summary of Loans Acquired in a Business Combination | The following table discloses the fair value and contractual value of loans acquired from NAC on November 1, 2021: Total acquired loans Commercial $ 27,174 Commercial Real Estate 2,164 Total contractual principal and fair value $ 29,338 |
Summary of Pro Forma Information, Business Acquisition | The following table presents supplemental pro forma information for the years ended December 31, 2020 and 2019 as if the NAC acquisition was completed as of January 1, 2019. The pro forma results combine the historical results of NAC into the Company's condensed consolidated statements of income, including the impact of certain purchase accounting adjustments, including loan discount accretion. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2019: Year Ended December 31, 2020 2019 Net interest income $ 267,331 $ 286,313 Net income 84,368 93,939 Basic EPS $ 1.69 $ 1.77 Diluted EPS 1.69 1.74 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheet December 31, 2021 2020 Assets Cash and cash equivalents $ 44,507 $ 129,969 Investment in subsidiaries 1,496,310 1,335,603 Other assets 3,736 4,638 Total assets $ 1,544,553 $ 1,470,210 Liabilities and Stockholders’ Equity Other liabilities $ 1,710 $ 4,056 Other borrowings 227,764 262,778 Total liabilities 229,474 266,834 Stockholders’ equity Common stock $ 560 $ 555 Additional paid-in capital 1,142,758 1,126,437 Retained earnings 275,273 172,232 Accumulated other comprehensive income 64,070 56,225 Treasury stock (167,582) (152,073) Total stockholders’ equity 1,315,079 1,203,376 Total liabilities and stockholders’ equity $ 1,544,553 $ 1,470,210 |
Statements of Income | Statements of Income Year Ended December 31, 2021 2020 2019 Cash dividends from subsidiary $ 8,440 $ 65,000 $ 56,750 Excess of earnings over dividend from subsidiary 142,289 16,693 43,199 Other 43 53 50 150,772 81,746 99,999 Interest on borrowings 12,426 8,529 4,672 Salaries and employee benefits 668 612 790 Merger and acquisition expense — — 4,942 Other 1,057 798 797 14,151 9,939 11,201 Earnings before income tax benefit 136,621 71,807 88,798 Income tax benefit (2,963) (2,076) (1,941) Net income $ 139,584 $ 73,883 $ 90,739 |
Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2021 2020 2019 Cash flows from operating activities: Net income $ 139,584 $ 73,883 $ 90,739 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount and debt issuance costs, net 817 1,263 2,353 Equity in undistributed net income of Bank (142,289) (16,693) (43,199) Decrease (increase) in other assets 902 (1,853) (1,861) (Increase) decrease in other liabilities (3,177) 726 (5,024) Net cash (used in) provided by operating activities (4,163) 57,326 43,008 Cash flows from investing activities: Net cash received in acquisition — — 5,818 Net cash provided by investing activities — — 5,818 Cash flows from financing activities: Proceeds from issuance of subordinated notes, net of debt issuance costs paid — 123,026 75,000 Proceeds from exercise of stock warrants 165 109 — Redemption of subordinated debt (35,000) (5,000) — Proceeds from exercise of employee stock options 6,313 4,301 3,938 Payments to tax authorities for stock-based compensation (725) (3,829) (1,346) Repurchase of treasury stock (15,509) (57,470) (94,533) Dividends paid (36,543) (34,057) (26,796) Net cash (used in) provided by financing activities (81,299) 27,080 (43,737) Net (increase) decrease in cash and cash equivalents (85,462) 84,406 5,089 Cash and cash equivalents at beginning of year 129,969 45,563 40,474 Cash and cash equivalents at end of year $ 44,507 $ 129,969 $ 45,563 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Nature of Organization (Details) | 12 Months Ended |
Dec. 31, 2021branch | |
Dallas-Fort Worth | |
Product Information [Line Items] | |
Number of branches | 18 |
Houston | |
Product Information [Line Items] | |
Number of branches | 10 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Reclassifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other noninterest income | $ 11,132 | $ 11,081 | $ 4,632 |
Revision of Prior Period, Reclassification, Adjustment | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Other noninterest income | 2,179 | 2,172 | |
Rental income | $ (2,179) | $ (2,172) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Equity Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment loss, equity securities | $ 0 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Fair Value Option (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Fair value, option, change in fair value of government guaranteed loans and PPP Loans | $ 1,845,000 | $ (2,040,000) | $ 303,000 |
PPP fee income | $ 7,721,000 | $ 12,811,000 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Gain on Sale of Guaranteed Portion of SBA Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain (loss) on sale of government guaranteed loans | $ 6,194 | $ 3,379 | $ 4,388 |
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Guaranteed portion of SBA loans, percent | 0.50 | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Guaranteed portion of SBA loans, percent | 0.90 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Impact of ASC 326 (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
CECL impact on date of adoption | $ 1,203,376 | $ 1,315,079 | $ 1,190,797 | $ 530,638 | |
ACL on debt securities HTM | $ 0 | 0 | 0 | ||
ACL on loans | 29,834 | 105,084 | 77,754 | 29,834 | 19,255 |
ACL on OBS credit exposures | 878 | ||||
Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
CECL impact on date of adoption | 172,232 | 275,273 | 147,911 | 83,968 | |
Accounting Standards Update 2016-13 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 19,710 | ||||
Real Estate | Construction and Land | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 3,822 | 7,768 | 7,293 | 3,821 | 2,186 |
Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 61 | 56 | 187 | 62 | 58 |
Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 1,378 | 8,148 | 5,982 | 2,143 | 1,614 |
Real Estate | Residential Real Estate | Multi-family residential | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 1,965 | 6,231 | 2,664 | 1,200 | 361 |
Real Estate | Commercial Real Estate | OOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 1,978 | 9,719 | 9,215 | 1,991 | 1,393 |
Real Estate | Commercial Real Estate | NOOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 8,139 | 35,237 | 30,548 | 8,126 | 5,070 |
Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 12,369 | 37,554 | 21,632 | 12,369 | 8,554 |
Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 122 | 371 | $ 233 | 122 | $ 19 |
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on debt securities HTM | 0 | ||||
ACL on loans | 68,971 | ||||
ACL 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] | |||||
ACL on loans | 3,760 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL 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] | |||||
ACL 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] | |||||
ACL on loans | 2,593 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Commercial Real Estate | OOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 13,066 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Real Estate | Commercial Real Estate | NOOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 15,314 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 27,729 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
ACL on loans | 442 | ||||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
CECL impact on date of adoption | (15,505) | ||||
Impact of adoption ASC 326 PCD loans | 19,710 | ||||
ACL on debt securities HTM | 0 | ||||
ACL on loans | 39,137 | 19,427 | |||
ACL on OBS credit exposures | 840 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
CECL impact on date of adoption | (15,505) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2016-13 | Retained Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
CECL impact on date of adoption | (15,505) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Real Estate | Construction and Land | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 645 | ||||
ACL on loans | (62) | (707) | |||
Cumulative Effect, Period of Adoption, Adjustment | Real Estate | Farmland | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 0 | ||||
ACL 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] | |||||
Impact of adoption ASC 326 PCD loans | 908 | ||||
ACL 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] | |||||
Impact of adoption ASC 326 PCD loans | 0 | ||||
ACL on loans | 628 | 628 | |||
Cumulative Effect, Period of Adoption, Adjustment | Real Estate | Commercial Real Estate | OOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 7,682 | ||||
ACL on loans | 11,088 | 3,406 | |||
Cumulative Effect, Period of Adoption, Adjustment | Real Estate | Commercial Real Estate | NOOCRE | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 2,037 | ||||
ACL on loans | 7,175 | 5,138 | |||
Cumulative Effect, Period of Adoption, Adjustment | Commercial | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | 8,335 | ||||
ACL on loans | 15,360 | 7,025 | |||
Cumulative Effect, Period of Adoption, Adjustment | Consumer | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of adoption ASC 326 PCD loans | $ 103 | ||||
ACL on loans | $ 320 | $ 217 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Equity Method Investments (Details) - USD ($) $ in Thousands | Jul. 16, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||
Purchases of equity method securities | $ 54,970 | $ 2,888 | $ 23,577 | |
Goodwill | 403,771 | 370,840 | 370,840 | |
Equity method investments | 60,730 | |||
Equity method investment income | $ 5,760 | $ 0 | $ 0 | |
Thrive Mortgage, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49.00% | |||
Purchases of equity method securities | $ 54,914 | |||
Goodwill | $ 35,816 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Bank Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives (in years) | 15 years | ||
Minimum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives (in years) | 10 years | ||
Minimum | Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives (in years) | 3 years | ||
Maximum | Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives (in years) | 40 years | ||
Maximum | Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful lives (in years) | 10 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Core deposit intangibles | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 7 years | ||
Core deposit intangibles | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 10 years |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Marketing Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | |||
Marketing expense | $ 5,344 | $ 3,651 | $ 3,259 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Income tax, penalties and interest expense | $ 126,000 | $ 143,000 | $ 309,000 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings (numerator) | |||
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Shares (denominator) | |||
Weighted average shares outstanding for basic EPS (thousands) (in shares) | 49,405,000 | 49,883,000 | 53,154,000 |
Dilutive effect of employee stock-based awards (in shares) | 947,000 | 153,000 | 824,000 |
Adjusted weighted average shares outstanding (in shares) | 50,352,000 | 50,036,000 | 53,978,000 |
EPS: | |||
Basic (in USD per share) | $ 2.83 | $ 1.48 | $ 1.71 |
Diluted (in USD per share) | $ 2.77 | $ 1.48 | $ 1.68 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 1,481 | 0 | |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 29 | 344 | |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 1,137 |
Supplemental Statement of Cas_3
Supplemental Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | $ 37,139 | $ 58,236 | $ 88,175 |
Cash paid for income taxes | 14,349 | 40,690 | 24,100 |
Supplemental Disclosures of Non-Cash Flow Information: | |||
Setup of ROU asset and lease liability | 6,232 | 4,123 | 9,380 |
Contingent consideration in connection with acquisitions | 5,000 | 0 | 0 |
Reclassification of deferred offering costs paid in 2018 from other assets to additional paid-in-capital | 0 | 0 | 788 |
Subordinated debt issuance costs accrued but not yet paid in 2019 | 0 | 0 | 315 |
Reclassification of lease intangibles, cease-use liability and deferred rent liability to ROU asset upon adoption of ASC 842 | 0 | 0 | (48) |
Net foreclosure of OREO and repossessed assets | 334 | 2,764 | 5,995 |
LHI transferred to loans held for sale | 10,890 | 4,511 | 0 |
Reclassification of branch assets held for sale to LHI | 0 | 0 | 26,171 |
Reclassification of branch liabilities held for sale to interest-bearing transaction and savings deposits | 0 | 0 | 1,713 |
Noncash assets acquired | |||
Debt securities | 0 | 0 | 660,792 |
Equity securities | 0 | 0 | 12,322 |
FHLB and FRB stock | 0 | 0 | 29,490 |
Loans held for sale | 0 | 0 | 9,360 |
LHI | 29,338 | 0 | 3,245,248 |
Accrued interest receivable | 0 | 0 | 11,395 |
Bank-owned life insurance | 0 | 0 | 56,841 |
Bank premises, furniture and equipment | 0 | 0 | 36,855 |
Investment in unconsolidated subsidiaries | 0 | 0 | 666 |
Other real estate owned | 0 | 0 | 0 |
Intangible assets, net | 13,913 | 0 | 65,718 |
Goodwill | 32,931 | 0 | 209,393 |
Other assets | 690 | 0 | 11,124 |
Right of use asset | 0 | 0 | 9,373 |
Deferred taxes | 0 | 0 | 11,783 |
Current taxes | 0 | 0 | 1,812 |
Assets held for sale | 0 | 0 | 85,307 |
Total assets | 76,872 | 0 | 4,457,479 |
Noncash liabilities assumed | |||
Noninterest-bearing deposits | 0 | 0 | 825,364 |
Interest-bearing deposits | 0 | 0 | 1,300,825 |
Certificates and other time deposits | 0 | 0 | 1,346,915 |
Accounts payable and other liabilities | 16,350 | 0 | 26,491 |
Lease liability | 0 | 0 | 9,373 |
Accrued interest payable | 0 | 0 | 5,181 |
Securities sold under agreements to repurchase | 0 | 0 | 3,226 |
Advances from FHLB | 0 | 0 | 300,000 |
Subordinated debentures and subordinated notes | 0 | 0 | 56,233 |
Liabilities held for sale | 0 | 0 | 52,682 |
Total liabilities | 16,350 | 0 | 3,926,290 |
Green Bancorp, Inc. | |||
Noncash liabilities assumed | |||
Market value of common stock issued | 0 | 0 | $ 631,415 |
Shares of common stock exchanged in connection with acquisition (in shares) | 29,532,957 | ||
Restricted stock units | Green Bancorp, Inc. | |||
Noncash liabilities assumed | |||
Market value of common stock issued | $ 0 | $ 0 | $ 5,801 |
Shares of common stock exchanged in connection with acquisition (in shares) | 497,594 |
Share Transactions (Details)
Share Transactions (Details) - Common Stock - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program, authorized amount | $ 250,000,000 | |
Number of shares repurchased (in shares) | 475,744 | 2,349,639 |
Weighted average price per share (in dollars per share) | $ 32.36 | $ 24.51 |
Securities - Securities (Detail
Securities - Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Equity securities | $ 11,038,000 | $ 11,363,000 | |
Realized gain (loss) on equity securities | 0 | (8,000) | $ 0 |
Unrealized (loss) gain recognized on equity securities with a readily determinable fair value | (325,000) | 480,000 | $ 325,000 |
Equity securities without a readily determinable fair value | $ 4,355,000 | $ 3,575,000 |
Securities - Carrying Amount an
Securities - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 |
AFS | |||
Amortized Cost | $ 961,455 | $ 969,318 | |
Gross Unrealized Gains | 36,737 | 56,422 | |
Gross Unrealized Losses | 5,134 | 1,411 | |
ACL | 0 | 0 | |
Fair Value | 993,058 | 1,024,329 | |
HTM | |||
Amortized Cost | 59,436 | 30,872 | |
Gross Unrealized Gains | 2,620 | 3,411 | |
Gross Unrealized Losses | 610 | 0 | |
ACL | 0 | 0 | $ 0 |
Fair value | 61,446 | 34,283 | |
Corporate bonds | |||
AFS | |||
Amortized Cost | 198,396 | 173,050 | |
Gross Unrealized Gains | 10,294 | 6,417 | |
Gross Unrealized Losses | 178 | 1,297 | |
ACL | 0 | 0 | |
Fair Value | 208,512 | 178,170 | |
Municipal securities | |||
AFS | |||
Amortized Cost | 116,100 | 115,533 | |
Gross Unrealized Gains | 8,261 | 10,129 | |
Gross Unrealized Losses | 431 | 6 | |
ACL | 0 | 0 | |
Fair Value | 123,930 | 125,656 | |
HTM | |||
Amortized Cost | 28,179 | 22,270 | |
Gross Unrealized Gains | 2,015 | 2,459 | |
Gross Unrealized Losses | 102 | 0 | |
ACL | 0 | 0 | |
Fair value | 30,092 | 24,729 | |
Mortgage-backed securities | |||
AFS | |||
Amortized Cost | 124,230 | 240,320 | |
Gross Unrealized Gains | 4,326 | 16,047 | |
Gross Unrealized Losses | 1,489 | 42 | |
ACL | 0 | 0 | |
Fair Value | 127,067 | 256,325 | |
HTM | |||
Amortized Cost | 25,767 | 6,982 | |
Gross Unrealized Gains | 45 | 849 | |
Gross Unrealized Losses | 508 | 0 | |
ACL | 0 | 0 | |
Fair value | 25,304 | 7,831 | |
Collateralized mortgage obligations | |||
AFS | |||
Amortized Cost | 424,174 | 388,080 | |
Gross Unrealized Gains | 12,240 | 20,895 | |
Gross Unrealized Losses | 2,350 | 66 | |
ACL | 0 | 0 | |
Fair Value | 434,064 | 408,909 | |
HTM | |||
Amortized Cost | 5,490 | 1,620 | |
Gross Unrealized Gains | 560 | 103 | |
Gross Unrealized Losses | 0 | 0 | |
ACL | 0 | 0 | |
Fair value | 6,050 | 1,723 | |
Asset-backed securities | |||
AFS | |||
Amortized Cost | 53,466 | 52,335 | |
Gross Unrealized Gains | 1,616 | 2,934 | |
Gross Unrealized Losses | 519 | 0 | |
ACL | 0 | 0 | |
Fair Value | 54,563 | $ 55,269 | |
Collateralized loan obligations | |||
AFS | |||
Amortized Cost | 45,089 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 167 | ||
ACL | 0 | ||
Fair Value | $ 44,922 |
Securities - Unrealized Loss Po
Securities - Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2021USD ($)investment | Dec. 31, 2020USD ($)investment |
AFS Fair Value | ||
Less Than 12 Months | $ 222,302 | $ 69,022 |
12 Months or More | 9,027 | 0 |
Totals | 231,329 | 69,022 |
AFS Unrealized Loss | ||
Less Than 12 Months | 4,691 | 1,411 |
12 Months or More | 443 | 0 |
Totals | $ 5,134 | $ 1,411 |
Number of investment positions in an unrealized loss position | investment | 34 | 11 |
HTM Fair Value | ||
Less Than 12 Months | $ 28,797 | |
12 Months or More | 0 | |
Totals | 28,797 | |
HTM Unrealized Loss | ||
Less Than 12 Months | 610 | |
12 Months or More | 0 | |
Totals | 610 | |
Corporate bonds | ||
AFS Fair Value | ||
Less Than 12 Months | 7,072 | $ 2,667 |
12 Months or More | 0 | 0 |
Totals | 7,072 | 2,667 |
AFS Unrealized Loss | ||
Less Than 12 Months | 178 | 6 |
12 Months or More | 0 | 0 |
Totals | 178 | 6 |
Municipal securities | ||
AFS Fair Value | ||
Less Than 12 Months | 12,704 | 31,953 |
12 Months or More | 4,350 | 0 |
Totals | 17,054 | 31,953 |
AFS Unrealized Loss | ||
Less Than 12 Months | 194 | 1,297 |
12 Months or More | 237 | 0 |
Totals | 431 | 1,297 |
HTM Fair Value | ||
Less Than 12 Months | 4,583 | |
12 Months or More | 0 | |
Totals | 4,583 | |
HTM Unrealized Loss | ||
Less Than 12 Months | 102 | |
12 Months or More | 0 | |
Totals | 102 | |
Mortgage-backed securities | ||
AFS Fair Value | ||
Less Than 12 Months | 40,276 | 34,402 |
12 Months or More | 4,677 | 0 |
Totals | 44,953 | 34,402 |
AFS Unrealized Loss | ||
Less Than 12 Months | 1,283 | 108 |
12 Months or More | 206 | 0 |
Totals | 1,489 | $ 108 |
HTM Fair Value | ||
Less Than 12 Months | 24,214 | |
12 Months or More | 0 | |
Totals | 24,214 | |
HTM Unrealized Loss | ||
Less Than 12 Months | 508 | |
12 Months or More | 0 | |
Totals | 508 | |
Collateralized mortgage obligations | ||
AFS Fair Value | ||
Less Than 12 Months | 106,063 | |
12 Months or More | 0 | |
Totals | 106,063 | |
AFS Unrealized Loss | ||
Less Than 12 Months | 2,350 | |
12 Months or More | 0 | |
Totals | 2,350 | |
Asset-backed securities | ||
AFS Fair Value | ||
Less Than 12 Months | 11,265 | |
12 Months or More | 0 | |
Totals | 11,265 | |
AFS Unrealized Loss | ||
Less Than 12 Months | 519 | |
12 Months or More | 0 | |
Totals | 519 | |
Collateralized loan obligations | ||
AFS Fair Value | ||
Less Than 12 Months | 44,922 | |
12 Months or More | 0 | |
Totals | 44,922 | |
AFS Unrealized Loss | ||
Less Than 12 Months | 167 | |
12 Months or More | 0 | |
Totals | $ 167 |
Securities - Maturities (Detail
Securities - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Available For Sale Amortized Cost | ||
Due from one year to five years | $ 5,201 | $ 4,935 |
Due from five years to ten years | 178,203 | 154,576 |
Due after ten years | 131,092 | 129,072 |
Total investment securities available for sale, single maturity date | 314,496 | 288,583 |
Amortized Cost | 961,455 | 969,318 |
Available For Sale Fair value | ||
Due from one year to five years | 5,241 | 5,139 |
Due from five years to ten years | 186,972 | 158,510 |
Due after ten years | 140,229 | 140,177 |
Total investment securities available for sale | 332,442 | 303,826 |
Fair Value | 993,058 | 1,024,329 |
Held-to-Maturity Amortized Cost | ||
Due from one year to five years | 0 | 0 |
Due from five years to ten years | 3,849 | 3,334 |
Due after ten years | 24,330 | 18,936 |
Total investment securities held to maturity, single maturity date | 28,179 | 22,270 |
Amortized Cost | 59,436 | 30,872 |
Held-to-Maturity Fair Value | ||
Due from one year to five years | 0 | 0 |
Due from five years to ten years | 4,115 | 3,591 |
Due after ten years | 25,977 | 21,138 |
Total investment securities held to maturity | 30,092 | 24,729 |
Fair Value | 61,446 | 34,283 |
Mortgage-backed securities and collateralized mortgage obligations | ||
Available For Sale Amortized Cost | ||
Amortized cost | 548,404 | 628,400 |
Amortized Cost | 124,230 | 240,320 |
Available For Sale Fair value | ||
Fair value | 561,131 | 665,234 |
Fair Value | 127,067 | 256,325 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 31,257 | 8,602 |
Amortized Cost | 25,767 | 6,982 |
Held-to-Maturity Fair Value | ||
Fair value | 31,354 | 9,554 |
Asset-backed securities | ||
Available For Sale Amortized Cost | ||
Amortized cost | 53,466 | 52,335 |
Amortized Cost | 53,466 | 52,335 |
Available For Sale Fair value | ||
Fair value | 54,563 | 55,269 |
Fair Value | 54,563 | 55,269 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 0 | 0 |
Held-to-Maturity Fair Value | ||
Fair value | 0 | $ 0 |
Collateralized loan obligations | ||
Available For Sale Amortized Cost | ||
Amortized cost | 45,089 | |
Amortized Cost | 45,089 | |
Available For Sale Fair value | ||
Fair value | 44,922 | |
Fair Value | 44,922 | |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 0 | |
Held-to-Maturity Fair Value | ||
Fair value | $ 0 |
Securities - Proceeds From Sale
Securities - Proceeds From Sale of Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of AFS debt securities | $ 13,300 | $ 113,771 | $ 567,718 |
Gross realized gains | 0 | 2,879 | 532 |
Gross realized losses | $ 188 | $ 256 | $ 2,384 |
LHI and ACL - Balance Sheet Sum
LHI and ACL - Balance Sheet Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Allowance for Loan Losses | |||||
Loans | $ 7,341,143 | $ 6,427,924 | |||
Deferred loan fees, net | (9,489) | (2,468) | |||
ACL | (77,754) | (105,084) | $ (29,834) | $ (29,834) | $ (19,255) |
LHI carried at amortized cost, net | 7,253,900 | 6,320,372 | |||
PPP Loans | 53,369 | 358,042 | |||
Total LHI, net | 7,307,269 | 6,678,414 | |||
PCI loans acquired | 8,657 | 15,526 | |||
Discount on retained loans from SBA loan sales | 3,430 | 3,215 | |||
Real Estate | Construction and Land | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 1,062,144 | 693,030 | |||
ACL | (7,293) | (7,768) | (3,822) | (3,821) | (2,186) |
Real Estate | Farmland | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 55,827 | 13,844 | |||
ACL | (187) | (56) | (61) | (62) | (58) |
Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 542,566 | 524,344 | |||
ACL | (5,982) | (8,148) | (1,378) | (2,143) | (1,614) |
Real Estate | Residential Real Estate | Multi-family residential | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 310,241 | 424,962 | |||
ACL | (2,664) | (6,231) | (1,965) | (1,200) | (361) |
Real Estate | Commercial Real Estate | OOCRE | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 665,537 | 717,472 | |||
ACL | (9,215) | (9,719) | (1,978) | (1,991) | (1,393) |
Real Estate | Commercial Real Estate | NOOCRE | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 2,120,309 | 1,904,132 | |||
ACL | (30,548) | (35,237) | (8,139) | (8,126) | (5,070) |
Commercial | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 2,006,876 | 1,559,546 | |||
ACL | (21,632) | (37,554) | (12,369) | (12,369) | (8,554) |
Mortgage warehouse | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 565,645 | 577,594 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Loans | 11,998 | 13,000 | |||
ACL | $ (233) | $ (371) | $ (122) | $ (122) | $ (19) |
LHI and ACL - Schedule of Gover
LHI and ACL - Schedule of Government Guaranteed Loans and Fee Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
PPP fee income | $ 7,721 | $ 12,811 |
Net gain (loss) due to the change in fair value | $ 1,531 | $ (1,799) |
LHI and ACL - Allowance for Cre
LHI and ACL - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Analysis of allowance for loan losses | ||||
Balance at beginning of year | $ 29,834 | $ 105,084 | $ 29,834 | $ 19,255 |
(Benefit) provision for credit losses | (3,349) | 56,640 | 21,514 | |
Charge-offs | (26,390) | (20,973) | (11,320) | |
Recoveries | 2,409 | 446 | 385 | |
Ending Balance | 29,834 | 77,754 | 105,084 | 29,834 |
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 | 19,427 | ||
Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (25,862) | 54,663 | ||
PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 22,513 | 1,977 | ||
Real Estate | Construction and Land | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 3,821 | 7,768 | 3,821 | 2,186 |
(Benefit) provision for credit losses | 1,635 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Ending Balance | 3,822 | 7,293 | 7,768 | 3,821 |
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) | (707) | ||
Real Estate | Construction and Land | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (547) | 4,554 | ||
Real Estate | Construction and Land | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 72 | (545) | ||
Real Estate | Farmland | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 62 | 56 | 62 | 58 |
(Benefit) provision for credit losses | 4 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Ending Balance | 61 | 187 | 56 | 62 |
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 | 4 | ||
Real Estate | Farmland | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 131 | (10) | ||
Real Estate | Farmland | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 0 | 0 | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 2,143 | 8,148 | 2,143 | 1,614 |
(Benefit) provision for credit losses | 619 | |||
Charge-offs | (379) | (18) | (157) | |
Recoveries | 64 | 57 | 67 | |
Ending Balance | 1,378 | 5,982 | 8,148 | 2,143 |
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 | 3,716 | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (2,153) | 1,720 | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 302 | (378) | ||
Real Estate | Residential Real Estate | Multi-family residential | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 1,200 | 6,231 | 1,200 | 361 |
(Benefit) provision for credit losses | 839 | |||
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Ending Balance | 1,965 | 2,664 | 6,231 | 1,200 |
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 | 628 | ||
Real Estate | Residential Real Estate | Multi-family residential | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (3,567) | 4,403 | ||
Real Estate | Residential Real Estate | Multi-family residential | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 0 | 0 | ||
Real Estate | Commercial Real Estate | OOCRE | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 1,991 | 9,719 | 1,991 | 1,393 |
(Benefit) provision for credit losses | 598 | |||
Charge-offs | (2,400) | (2,421) | 0 | |
Recoveries | 500 | 0 | 0 | |
Ending Balance | 1,978 | 9,215 | 9,719 | 1,991 |
Real Estate | Commercial Real Estate | OOCRE | 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 | 3,406 | ||
Real Estate | Commercial Real Estate | OOCRE | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (2,325) | 4,364 | ||
Real Estate | Commercial Real Estate | OOCRE | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 3,721 | (5,303) | ||
Real Estate | Commercial Real Estate | NOOCRE | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 8,126 | 35,237 | 8,126 | 5,070 |
(Benefit) provision for credit losses | 3,056 | |||
Charge-offs | (7,936) | (2,865) | 0 | |
Recoveries | 0 | 0 | 0 | |
Ending Balance | 8,139 | 30,548 | 35,237 | 8,126 |
Real Estate | Commercial Real Estate | NOOCRE | 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 | 5,138 | ||
Real Estate | Commercial Real Estate | NOOCRE | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (7,490) | 15,397 | ||
Real Estate | Commercial Real Estate | NOOCRE | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 10,737 | 7,404 | ||
Commercial | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 12,369 | 37,554 | 12,369 | 8,554 |
(Benefit) provision for credit losses | 14,487 | |||
Charge-offs | (15,576) | (15,507) | (10,898) | |
Recoveries | 1,542 | 102 | 226 | |
Ending Balance | 12,369 | 21,632 | 37,554 | 12,369 |
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 | 7,025 | ||
Commercial | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (9,510) | 24,413 | ||
Commercial | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | 7,622 | 817 | ||
Consumer | ||||
Analysis of allowance for loan losses | ||||
Balance at beginning of year | 122 | 371 | 122 | 19 |
(Benefit) provision for credit losses | 276 | |||
Charge-offs | (99) | (162) | (265) | |
Recoveries | 303 | 287 | 92 | |
Ending Balance | 122 | 233 | 371 | 122 |
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 | $ 217 | ||
Consumer | Non-PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | (401) | (178) | ||
Consumer | PCD Loans | ||||
Analysis of allowance for loan losses | ||||
(Benefit) provision for credit losses | $ 59 | $ (18) |
LHI and ACL - Collateral Depend
LHI and ACL - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | $ 7,341,143 | $ 6,427,924 | |||
ACL Allocation | 77,754 | 105,084 | $ 29,834 | $ 29,834 | $ 19,255 |
Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 542,566 | 524,344 | |||
ACL Allocation | 5,982 | 8,148 | 1,378 | 2,143 | 1,614 |
Real Estate | Commercial Real Estate | NOOCRE | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 2,120,309 | 1,904,132 | |||
ACL Allocation | 30,548 | 35,237 | 8,139 | 8,126 | 5,070 |
Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 2,006,876 | 1,559,546 | |||
ACL Allocation | 21,632 | 37,554 | 12,369 | 12,369 | 8,554 |
Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 11,998 | 13,000 | |||
ACL Allocation | 233 | 371 | $ 122 | $ 122 | $ 19 |
Real Estate | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 20,673 | 25,088 | |||
Real Estate | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 0 | 199 | |||
Real Estate | Real Estate | Commercial Real Estate | NOOCRE | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 17,908 | 16,080 | |||
Real Estate | Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 1,702 | 8,666 | |||
Real Estate | Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
Loans | 1,063 | 143 | |||
Collateral Pledged | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 7,808 | 4,729 | |||
Collateral Pledged | Real Estate | Residential Real Estate | 1 - 4 family residential | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 0 | 11 | |||
Collateral Pledged | Real Estate | Commercial Real Estate | NOOCRE | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 7,808 | 0 | |||
Collateral Pledged | Commercial | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | 0 | 4,668 | |||
Collateral Pledged | Consumer | |||||
Servicing Asset at Amortized Cost [Line Items] | |||||
ACL Allocation | $ 0 | $ 50 |
LHI and ACL - Nonaccrual (Detai
LHI and ACL - Nonaccrual (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | ||
Nonaccrual | $ 49,687,000 | $ 81,096,000 |
Nonaccrual With No ACL | 20,428,000 | 30,292,000 |
Financing receivable, nonaccrual, interest income | 2,718,000 | 3,368,000 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 15,267,000 | 29,318,000 |
Nonaccrual With No ACL | 4,207,000 | 1,015,000 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 1,216,000 | 1,374,000 |
Nonaccrual With No ACL | 1,216,000 | 1,220,000 |
1 - 4 family residential | Residential Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 990,000 | 3,308,000 |
Nonaccrual With No ACL | 990,000 | 3,199,000 |
OOCRE | Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 14,236,000 | 6,266,000 |
Nonaccrual With No ACL | 13,824,000 | 5,645,000 |
NOOCRE | Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 17,978,000 | 40,830,000 |
Nonaccrual With No ACL | 191,000 | 19,213,000 |
PCD Loans | ||
Loans and Allowance for Loan Losses | ||
Financing receivable, nonaccrual, interest income | $ 11,056,000 | $ 1,508,000 |
LHI and ACL - Past Due (Details
LHI and ACL - Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Non-Accrual and Past Due Loans | ||
Loans | $ 7,341,143 | $ 6,427,924 |
Total 90 Days Past Due and Still Accruing | 235 | 4,204 |
PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 58,093 | 112,255 |
Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 32,284 | 67,933 |
30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 9,207 | 14,349 |
60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 5,465 | 6,684 |
90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 17,612 | 46,900 |
PPP loans excluded | 206 | |
Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 7,250,766 | 6,247,736 |
Real Estate | Construction and Land | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,062,144 | 693,030 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Construction and Land | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,348 | 2,685 |
Real Estate | Construction and Land | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Construction and Land | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Construction and Land | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Construction and Land | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Construction and Land | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,059,796 | 690,345 |
Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Loans | 55,827 | 13,844 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Farmland | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Farmland | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Farmland | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Farmland | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Farmland | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 55,827 | 13,844 |
Real Estate | 1 - 4 family residential | Residential Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 542,566 | 524,344 |
Total 90 Days Past Due and Still Accruing | 24 | 1,670 |
Real Estate | 1 - 4 family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,178 | 8,741 |
Real Estate | 1 - 4 family residential | Residential Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 3,081 | 7,262 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,073 | 2,338 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 122 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,008 | 4,802 |
Real Estate | 1 - 4 family residential | Residential Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 538,307 | 508,341 |
Real Estate | Multi-family residential | Residential Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 310,241 | 424,962 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 310,241 | 424,962 |
Real Estate | OOCRE | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 665,537 | 717,472 |
Total 90 Days Past Due and Still Accruing | 0 | 1,280 |
Real Estate | OOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 27,564 | 37,991 |
Real Estate | OOCRE | Commercial Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 17,125 | 7,235 |
Real Estate | OOCRE | Commercial Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 4,538 | 2,278 |
Real Estate | OOCRE | Commercial Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 965 | 2,143 |
Real Estate | OOCRE | Commercial Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 11,622 | 2,814 |
Real Estate | OOCRE | Commercial Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 620,848 | 672,246 |
Real Estate | NOOCRE | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,120,309 | 1,904,132 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Real Estate | NOOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 18,200 | 43,176 |
Real Estate | NOOCRE | Commercial Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,128 | 28,172 |
Real Estate | NOOCRE | Commercial Real Estate | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 936 | 7,675 |
Real Estate | NOOCRE | Commercial Real Estate | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 2,911 |
Real Estate | NOOCRE | Commercial Real Estate | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 192 | 17,586 |
Real Estate | NOOCRE | Commercial Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,100,981 | 1,832,784 |
Commercial | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,006,876 | 1,559,546 |
Total 90 Days Past Due and Still Accruing | 191 | 1,230 |
Commercial | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 8,626 | 19,460 |
Commercial | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 9,628 | 23,774 |
Commercial | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,525 | 1,983 |
Commercial | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 4,395 | 1,431 |
Commercial | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 3,708 | 20,360 |
Commercial | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,988,622 | 1,516,312 |
Mortgage warehouse | ||
Non-Accrual and Past Due Loans | ||
Loans | 565,645 | 577,594 |
Total 90 Days Past Due and Still Accruing | 0 | 0 |
Mortgage warehouse | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Mortgage warehouse | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Mortgage warehouse | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Mortgage warehouse | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Mortgage warehouse | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 565,645 | 577,594 |
Consumer | ||
Non-Accrual and Past Due Loans | ||
Loans | 11,998 | 13,000 |
Total 90 Days Past Due and Still Accruing | 20 | 24 |
Consumer | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 177 | 202 |
Consumer | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,322 | 1,490 |
Consumer | 30 to 59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 135 | 75 |
Consumer | 60 to 89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Loans | 105 | 77 |
Consumer | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,082 | 1,338 |
Consumer | Total Current | ||
Non-Accrual and Past Due Loans | ||
Loans | 10,499 | 11,308 |
Financial Asset Acquired with Credit Deterioration | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 58,093 | 112,255 |
Financial Asset Acquired with Credit Deterioration | 90 Days or Greater | ||
Non-Accrual and Past Due Loans | ||
Total 90 Days Past Due and Still Accruing | 9,345 | 32,627 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Construction and Land | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 2,348 | 2,685 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Farmland | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | 1 - 4 family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 1,178 | 8,741 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Multi-family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | OOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 27,564 | 37,991 |
Financial Asset Acquired with Credit Deterioration | Real Estate | NOOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 18,200 | 43,176 |
Financial Asset Acquired with Credit Deterioration | Commercial | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 8,626 | 19,460 |
Financial Asset Acquired with Credit Deterioration | Mortgage warehouse | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Consumer | PCD | ||
Non-Accrual and Past Due Loans | ||
Loans | $ 177 | $ 202 |
LHI and ACL - Trouble Debt Rest
LHI and ACL - Trouble Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan | |
Troubled Debt Restructuring | ||
Recorded investment in TDRs | $ 25,518 | $ 29,157 |
Adjusted Payment Structure | 6,745 | |
Payment Deferrals | 20,799 | |
Total Modifications | $ 27,544 | |
Number of Loans | loan | 1 | 13 |
Loans modified as TDR | loan | 0 | 0 |
Interest income that would have been recorded if there was no modification | $ 778 | $ 1,537 |
Commercial Real Estate | OOCRE | ||
Troubled Debt Restructuring | ||
Adjusted Payment Structure | 5,326 | |
Payment Deferrals | 0 | |
Total Modifications | $ 5,326 | |
Number of Loans | loan | 5 | |
Commercial Real Estate | NOOCRE | ||
Troubled Debt Restructuring | ||
Adjusted Payment Structure | $ 0 | |
Payment Deferrals | 19,454 | |
Total Modifications | $ 19,454 | |
Number of Loans | loan | 4 | |
Commercial | ||
Troubled Debt Restructuring | ||
Adjusted Payment Structure | $ 1,419 | |
Payment Deferrals | 1,345 | |
Total Modifications | $ 2,764 | |
Number of Loans | loan | 4 |
LHI and ACL - Credit Quality In
LHI and ACL - Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Credit Quality Indicators | ||
Year One | $ 1,867,749 | $ 1,116,342 |
Year Two | 1,253,303 | 1,000,872 |
Year Three | 673,838 | 1,191,171 |
Year Four | 794,157 | 357,775 |
Year Five | 235,569 | 426,762 |
Prior | 868,776 | 830,986 |
Revolving Loans Amortized Cost Basis | 1,587,758 | 1,472,497 |
Revolving Loans Converted to Term | 59,993 | 31,519 |
Total | 7,341,143 | 6,427,924 |
Deferred loan fees, net | (9,489) | (2,468) |
Pass | ||
Credit Quality Indicators | ||
Year One | 1,841,709 | 1,112,617 |
Year Two | 1,241,076 | 950,257 |
Year Three | 662,869 | 1,049,368 |
Year Four | 647,461 | 308,163 |
Year Five | 202,918 | 349,349 |
Prior | 708,994 | 682,267 |
Revolving Loans Amortized Cost Basis | 1,561,600 | 1,398,329 |
Revolving Loans Converted to Term | 52,573 | 16,368 |
Total | 6,919,200 | 5,866,718 |
Special mention | ||
Credit Quality Indicators | ||
Year One | 10,378 | 1,407 |
Year Two | 4,547 | 36,278 |
Year Three | 2,886 | 84,021 |
Year Four | 66,204 | 33,756 |
Year Five | 17,488 | 40,083 |
Prior | 58,918 | 45,356 |
Revolving Loans Amortized Cost Basis | 3,482 | 27,415 |
Revolving Loans Converted to Term | 3,078 | 3,670 |
Total | 166,981 | 271,986 |
Substandard | ||
Credit Quality Indicators | ||
Year One | 15,662 | 2,318 |
Year Two | 6,303 | 14,337 |
Year Three | 8,083 | 39,038 |
Year Four | 66,557 | 12,438 |
Year Five | 6,787 | 18,531 |
Prior | 66,459 | 32,069 |
Revolving Loans Amortized Cost Basis | 22,676 | 46,753 |
Revolving Loans Converted to Term | 4,342 | 11,481 |
Total | 196,869 | 176,965 |
PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 1,377 | 0 |
Year Three | 0 | 18,744 |
Year Four | 13,935 | 3,418 |
Year Five | 8,376 | 18,799 |
Prior | 34,405 | 71,294 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 58,093 | 112,255 |
Commercial | ||
Credit Quality Indicators | ||
Year One | 453,833 | 253,032 |
Year Two | 195,554 | 165,184 |
Year Three | 131,233 | 144,430 |
Year Four | 95,545 | 67,921 |
Year Five | 47,275 | 32,434 |
Prior | 65,164 | 57,986 |
Revolving Loans Amortized Cost Basis | 992,211 | 816,214 |
Revolving Loans Converted to Term | 26,061 | 22,345 |
Total | 2,006,876 | 1,559,546 |
Commercial | Pass | ||
Credit Quality Indicators | ||
Year One | 430,213 | 251,004 |
Year Two | 187,370 | 158,158 |
Year Three | 124,798 | 112,961 |
Year Four | 65,186 | 50,734 |
Year Five | 40,254 | 19,821 |
Prior | 52,491 | 41,856 |
Revolving Loans Amortized Cost Basis | 968,229 | 758,832 |
Revolving Loans Converted to Term | 19,130 | 13,400 |
Total | 1,887,671 | 1,406,766 |
Commercial | Special mention | ||
Credit Quality Indicators | ||
Year One | 7,958 | 1,306 |
Year Two | 2,341 | 2,539 |
Year Three | 149 | 8,224 |
Year Four | 15,136 | 10,033 |
Year Five | 1,069 | 1,201 |
Prior | 3,368 | 2,165 |
Revolving Loans Amortized Cost Basis | 3,482 | 26,922 |
Revolving Loans Converted to Term | 2,589 | 3,670 |
Total | 36,092 | 56,060 |
Commercial | Substandard | ||
Credit Quality Indicators | ||
Year One | 15,662 | 722 |
Year Two | 5,843 | 4,487 |
Year Three | 6,286 | 23,245 |
Year Four | 14,908 | 3,772 |
Year Five | 4,167 | 7,216 |
Prior | 2,779 | 2,083 |
Revolving Loans Amortized Cost Basis | 20,500 | 30,460 |
Revolving Loans Converted to Term | 4,342 | 5,275 |
Total | 74,487 | 77,260 |
Commercial | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 315 | 3,382 |
Year Five | 1,785 | 4,196 |
Prior | 6,526 | 11,882 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 8,626 | 19,460 |
Mortgage warehouse | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 565,395 | 577,594 |
Revolving Loans Converted to Term | 250 | 0 |
Total | 565,645 | 577,594 |
Mortgage warehouse | Pass | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 564,850 | 577,594 |
Revolving Loans Converted to Term | 250 | 0 |
Total | 565,100 | 577,594 |
Mortgage warehouse | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 0 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 545 | |
Revolving Loans Converted to Term | 0 | |
Total | 545 | |
Consumer | ||
Credit Quality Indicators | ||
Year One | 3,362 | 2,489 |
Year Two | 1,566 | 1,216 |
Year Three | 534 | 1,038 |
Year Four | 408 | 3,995 |
Year Five | 3,043 | 912 |
Prior | 990 | 812 |
Revolving Loans Amortized Cost Basis | 2,070 | 2,538 |
Revolving Loans Converted to Term | 25 | 0 |
Total | 11,998 | 13,000 |
Consumer | Pass | ||
Credit Quality Indicators | ||
Year One | 3,362 | 2,489 |
Year Two | 1,566 | 1,216 |
Year Three | 512 | 1,038 |
Year Four | 408 | 3,899 |
Year Five | 2,777 | 887 |
Prior | 784 | 353 |
Revolving Loans Amortized Cost Basis | 1,006 | 1,475 |
Revolving Loans Converted to Term | 25 | 0 |
Total | 10,440 | 11,357 |
Consumer | Special mention | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 65 | 25 |
Prior | 14 | 227 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 79 | 252 |
Consumer | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 22 | 0 |
Year Four | 0 | 60 |
Year Five | 177 | 0 |
Prior | 39 | 66 |
Revolving Loans Amortized Cost Basis | 1,064 | 1,063 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 1,302 | 1,189 |
Consumer | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 36 |
Year Five | 24 | 0 |
Prior | 153 | 166 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 177 | 202 |
Construction and Land | Real Estate | ||
Credit Quality Indicators | ||
Year One | 389,420 | 155,358 |
Year Two | 454,855 | 282,497 |
Year Three | 116,855 | 182,548 |
Year Four | 57,949 | 11,791 |
Year Five | 5,741 | 9,938 |
Prior | 31,530 | 29,832 |
Revolving Loans Amortized Cost Basis | 4,631 | 21,066 |
Revolving Loans Converted to Term | 1,163 | 0 |
Total | 1,062,144 | 693,030 |
Construction and Land | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 389,420 | 155,358 |
Year Two | 453,262 | 282,497 |
Year Three | 116,855 | 179,372 |
Year Four | 57,637 | 11,791 |
Year Five | 5,741 | 9,938 |
Prior | 29,182 | 27,147 |
Revolving Loans Amortized Cost Basis | 4,631 | 21,066 |
Revolving Loans Converted to Term | 1,163 | 0 |
Total | 1,057,891 | 687,169 |
Construction and Land | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 1,593 | 0 |
Year Three | 0 | 2,666 |
Year Four | 312 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 1,905 | 2,666 |
Construction and Land | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | |
Year Two | 0 | |
Year Three | 510 | |
Year Four | 0 | |
Year Five | 0 | |
Prior | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term | 0 | |
Total | 510 | |
Construction and Land | Real Estate | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 2,348 | 2,685 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 2,348 | 2,685 |
Farmland | Real Estate | ||
Credit Quality Indicators | ||
Year One | 16,849 | 867 |
Year Two | 28,655 | 972 |
Year Three | 27 | 3,367 |
Year Four | 3,367 | 3,688 |
Year Five | 2,957 | 0 |
Prior | 2,643 | 3,656 |
Revolving Loans Amortized Cost Basis | 1,329 | 1,294 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 55,827 | 13,844 |
Farmland | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 16,849 | 867 |
Year Two | 28,655 | 972 |
Year Three | 27 | 3,367 |
Year Four | 3,367 | 3,688 |
Year Five | 2,957 | 0 |
Prior | 2,643 | 3,656 |
Revolving Loans Amortized Cost Basis | 1,329 | 1,294 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 55,827 | 13,844 |
Residential Real Estate | Single Family | Real Estate | ||
Credit Quality Indicators | ||
Year One | 191,333 | 120,580 |
Year Two | 101,377 | 80,694 |
Year Three | 54,826 | 92,186 |
Year Four | 59,861 | 50,766 |
Year Five | 27,824 | 31,936 |
Prior | 88,094 | 125,225 |
Revolving Loans Amortized Cost Basis | 13,226 | 19,989 |
Revolving Loans Converted to Term | 6,025 | 2,968 |
Total | 542,566 | 524,344 |
Residential Real Estate | Single Family | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 191,333 | 120,580 |
Year Two | 101,377 | 79,617 |
Year Three | 54,826 | 91,890 |
Year Four | 59,861 | 49,338 |
Year Five | 27,743 | 31,936 |
Prior | 85,661 | 115,797 |
Revolving Loans Amortized Cost Basis | 12,659 | 19,065 |
Revolving Loans Converted to Term | 6,025 | 2,968 |
Total | 539,485 | 511,191 |
Residential Real Estate | Single Family | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 1,077 |
Year Three | 0 | 154 |
Year Four | 0 | 760 |
Year Five | 0 | 0 |
Prior | 352 | 687 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 352 | 2,678 |
Residential Real Estate | Single Family | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 142 |
Year Four | 0 | 668 |
Year Five | 81 | 0 |
Prior | 903 | 0 |
Revolving Loans Amortized Cost Basis | 567 | 924 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 1,551 | 1,734 |
Residential Real Estate | Single Family | Real Estate | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 0 | 0 |
Prior | 1,178 | 8,741 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 1,178 | 8,741 |
Residential Real Estate | Multi-family residential | Real Estate | ||
Credit Quality Indicators | ||
Year One | 67,979 | 107,332 |
Year Two | 59,239 | 106,559 |
Year Three | 54,321 | 152,401 |
Year Four | 89,818 | 18,722 |
Year Five | 11,815 | 32,672 |
Prior | 27,020 | 7,218 |
Revolving Loans Amortized Cost Basis | 49 | 58 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 310,241 | 424,962 |
Residential Real Estate | Multi-family residential | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 67,979 | 107,332 |
Year Two | 59,239 | 106,559 |
Year Three | 54,321 | 139,721 |
Year Four | 68,531 | 18,722 |
Year Five | 11,815 | 32,672 |
Prior | 27,020 | 7,218 |
Revolving Loans Amortized Cost Basis | 49 | 58 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 288,954 | 412,282 |
Residential Real Estate | Multi-family residential | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 12,680 |
Year Four | 21,287 | 0 |
Year Five | 0 | 0 |
Prior | 0 | 0 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 21,287 | 12,680 |
Commercial Real Estate | OOCRE | Real Estate | ||
Credit Quality Indicators | ||
Year One | 116,833 | 114,111 |
Year Two | 113,305 | 66,210 |
Year Three | 58,016 | 109,244 |
Year Four | 98,552 | 86,784 |
Year Five | 62,269 | 111,328 |
Prior | 210,611 | 217,856 |
Revolving Loans Amortized Cost Basis | 2,986 | 5,733 |
Revolving Loans Converted to Term | 2,965 | 6,206 |
Total | 665,537 | 717,472 |
Commercial Real Estate | OOCRE | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 114,413 | 113,741 |
Year Two | 111,516 | 65,262 |
Year Three | 56,964 | 75,940 |
Year Four | 73,112 | 79,253 |
Year Five | 54,921 | 79,202 |
Prior | 174,500 | 176,668 |
Revolving Loans Amortized Cost Basis | 2,986 | 5,532 |
Revolving Loans Converted to Term | 2,965 | 0 |
Total | 591,377 | 595,598 |
Commercial Real Estate | OOCRE | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Year One | 2,420 | 0 |
Year Two | 0 | 948 |
Year Three | 1,052 | 22,725 |
Year Four | 0 | 3,701 |
Year Five | 0 | 12,860 |
Prior | 6,232 | 4,326 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 9,704 | 44,560 |
Commercial Real Estate | OOCRE | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | 370 |
Year Two | 412 | 0 |
Year Three | 0 | 10,579 |
Year Four | 25,440 | 3,830 |
Year Five | 781 | 11,315 |
Prior | 10,259 | 6,822 |
Revolving Loans Amortized Cost Basis | 0 | 201 |
Revolving Loans Converted to Term | 0 | 6,206 |
Total | 36,892 | 39,323 |
Commercial Real Estate | OOCRE | Real Estate | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 1,377 | 0 |
Year Three | 0 | 0 |
Year Four | 0 | 0 |
Year Five | 6,567 | 7,951 |
Prior | 19,620 | 30,040 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 27,564 | 37,991 |
Commercial Real Estate | NOOCRE | Real Estate | ||
Credit Quality Indicators | ||
Year One | 628,140 | 362,573 |
Year Two | 298,752 | 297,540 |
Year Three | 258,026 | 505,957 |
Year Four | 388,657 | 114,108 |
Year Five | 74,645 | 207,542 |
Prior | 442,724 | 388,401 |
Revolving Loans Amortized Cost Basis | 5,861 | 28,011 |
Revolving Loans Converted to Term | 23,504 | 0 |
Total | 2,120,309 | 1,904,132 |
Commercial Real Estate | NOOCRE | Real Estate | Pass | ||
Credit Quality Indicators | ||
Year One | 628,140 | 361,246 |
Year Two | 298,091 | 255,976 |
Year Three | 254,566 | 445,079 |
Year Four | 319,359 | 90,738 |
Year Five | 56,710 | 174,893 |
Prior | 336,713 | 309,572 |
Revolving Loans Amortized Cost Basis | 5,861 | 13,413 |
Revolving Loans Converted to Term | 23,015 | 0 |
Total | 1,922,455 | 1,650,917 |
Commercial Real Estate | NOOCRE | Real Estate | Special mention | ||
Credit Quality Indicators | ||
Year One | 0 | 101 |
Year Two | 613 | 31,714 |
Year Three | 1,685 | 37,572 |
Year Four | 29,469 | 19,262 |
Year Five | 16,354 | 25,997 |
Prior | 48,952 | 37,951 |
Revolving Loans Amortized Cost Basis | 0 | 493 |
Revolving Loans Converted to Term | 489 | 0 |
Total | 97,562 | 153,090 |
Commercial Real Estate | NOOCRE | Real Estate | Substandard | ||
Credit Quality Indicators | ||
Year One | 0 | 1,226 |
Year Two | 48 | 9,850 |
Year Three | 1,775 | 4,562 |
Year Four | 26,209 | 4,108 |
Year Five | 1,581 | 0 |
Prior | 52,479 | 23,098 |
Revolving Loans Amortized Cost Basis | 0 | 14,105 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 82,092 | 56,949 |
Commercial Real Estate | NOOCRE | Real Estate | PCD | ||
Credit Quality Indicators | ||
Year One | 0 | 0 |
Year Two | 0 | 0 |
Year Three | 0 | 18,744 |
Year Four | 13,620 | 0 |
Year Five | 0 | 6,652 |
Prior | 4,580 | 17,780 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term | 0 | 0 |
Total | 18,200 | 43,176 |
PCD Loans | PCD | ||
Credit Quality Indicators | ||
Total | 58,093 | 112,255 |
PCD Loans | Commercial | PCD | ||
Credit Quality Indicators | ||
Total | 8,626 | 19,460 |
PCD Loans | Mortgage warehouse | PCD | ||
Credit Quality Indicators | ||
Total | 0 | 0 |
PCD Loans | Consumer | PCD | ||
Credit Quality Indicators | ||
Total | 177 | 202 |
PCD Loans | Construction and Land | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 2,348 | 2,685 |
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 | 1,178 | 8,741 |
PCD Loans | Residential Real Estate | Multi-family residential | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 0 | 0 |
PCD Loans | Commercial Real Estate | OOCRE | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | 27,564 | 37,991 |
PCD Loans | Commercial Real Estate | NOOCRE | Real Estate | PCD | ||
Credit Quality Indicators | ||
Total | $ 18,200 | $ 43,176 |
LHI and ACL - Servicing Assets
LHI and ACL - Servicing Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 509,977,000 | $ 264,019,000 | |
Summary of changes in related servicing assets | |||
Balance at beginning of year | 3,363,000 | 3,113,000 | |
Servicing assets acquired through acquisition | 13,913,000 | 0 | |
Increase from loan sales | 1,330,000 | 1,121,000 | |
Servicing asset impairment, net of recoveries | (71,000) | (368,000) | |
Amortization charged as a reduction to income | (830,000) | (503,000) | |
Balance at year-end | 17,705,000 | 3,363,000 | $ 3,113,000 |
Valuation allowance recorded | 628,000 | 556,000 | |
Proceeds from sale of loans | 112,606,000 | 125,375,000 | 34,483,000 |
Gain on sale of loans | 1,592,000 | 1,239,000 | 475,000 |
Small Business Administration Loans | |||
Summary of changes in related servicing assets | |||
Proceeds from sale of loans | 40,001,000 | 41,488,000 | 64,830,000 |
Gain on sale of loans | 4,911,000 | 3,379,000 | $ 4,388,000 |
Interest-Only-Strip | |||
Summary of changes in related servicing assets | |||
Interest receivable | $ 0 | $ 0 |
Bank Premises, Furniture and _3
Bank Premises, Furniture and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 130,830 | $ 133,499 | |
Less accumulated depreciation and amortization | 21,559 | 18,436 | |
Bank premises, furniture and equipment, net | 109,271 | 115,063 | |
Depreciation | 3,123 | 4,535 | $ 3,911 |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 53,955 | 61,035 | |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 2,903 | 3,303 | |
Tenant improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 779 | 779 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 7,358 | 5,923 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 38,709 | 44,078 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 25,662 | 17,751 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 1,464 | $ 630 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use asset | $ 17,060 | $ 14,875 |
Total lease liability | $ 18,023 | $ 15,601 |
Operating lease, right of use asset, balance sheet location [Extensible List] | Other assets | Other assets |
Operating lease liability, balance sheet location [Extensible List] | Accounts payable and other liabilities | Accounts payable and other liabilities |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 1 year | |
Extension options (in years) | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 8 years | |
Extension options (in years) | 10 years |
Leases - Lease Costs and Other
Leases - Lease Costs and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,298 | $ 4,131 |
Variable lease cost | 641 | 810 |
Net lease cost | 4,939 | 4,941 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 4,051 | $ 3,994 |
Weighted-average remaining lease term - operating leases, in years | 6 years | 3 years 3 months 18 days |
Weighted-average discount rate - operating leases | 1.94% | 1.56% |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Within one year | $ 4,107 | |
After one but within two years | 3,879 | |
After two but within three years | 3,478 | |
After three but within four years | 2,637 | |
After four but within five years | 1,680 | |
After five years | 3,991 | |
Total undiscounted cash flows | 19,772 | |
Less: Discount on cash flows | (1,749) | |
Total lease liability | $ 18,023 | $ 15,601 |
Intangible Assets - Finite-Live
Intangible Assets - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross Intangible Asset | $ 108,638 | $ 93,395 | |
Valuation Allowance | 627 | 556 | |
Accumulated amortization | 41,994 | 31,106 | |
Net intangible assets | 66,017 | 61,733 | |
Amortization of intangible assets | 10,057 | 10,790 | $ 10,887 |
Amortization of Intangible Assets, Occupancy and Equipment, and Other Income | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 10,888 | $ 11,297 | $ 12,022 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 5 years | 6 years | |
Gross Intangible Asset | $ 81,769 | $ 81,769 | |
Valuation Allowance | 0 | 0 | |
Accumulated amortization | 33,771 | 24,011 | |
Net intangible assets | $ 47,998 | $ 57,758 | |
Servicing asset | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 7 years 2 months 12 days | 7 years 4 months 24 days | |
Gross Intangible Asset | $ 22,090 | $ 6,847 | |
Valuation Allowance | 627 | 556 | |
Accumulated amortization | 3,758 | 2,928 | |
Net intangible assets | $ 17,705 | $ 3,363 | |
Intangible lease assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 1 year 3 months 18 days | 1 year 4 months 24 days | |
Gross Intangible Asset | $ 4,779 | $ 4,779 | |
Valuation Allowance | 0 | 0 | |
Accumulated amortization | 4,465 | 4,167 | |
Net intangible assets | $ 314 | $ 612 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Estimated aggregate future amortization expense [Abstract] | ||
2022 | $ 12,453 | |
2023 | 12,262 | |
2024 | 12,199 | |
2025 | 11,863 | |
2026 | 11,777 | |
Thereafter | 5,463 | |
Net intangible assets | $ 66,017 | $ 61,733 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 370,840 | $ 370,840 |
North Avenue Capital, LLC acquisition (preliminary) | 32,931 | 0 |
Ending Balance | $ 403,771 | $ 370,840 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statistical Disclosure for Banks [Abstract] | ||
Noninterest-bearing demand accounts | $ 2,510,723 | $ 2,097,099 |
Interest-bearing demand accounts | 579,406 | 453,111 |
Savings accounts | 128,062 | 106,820 |
Limited access money market accounts | 2,568,844 | 2,398,525 |
Certificates of deposit, greater than $250 | 651,345 | 827,594 |
Certificates of deposit, less than $250 | 925,235 | 629,697 |
Total deposits | $ 7,363,615 | $ 6,512,846 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statistical Disclosure for Banks [Abstract] | ||
2022 | $ 1,017,162 | |
2023 | 523,160 | |
2024 | 21,234 | |
2025 | 11,200 | |
2026 | 3,824 | |
Total | $ 1,576,580 | $ 1,457,291 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statistical Disclosure for Banks [Abstract] | ||
Demand deposit overdrafts reclassified as loans | $ 2,128 | $ 106 |
Brokered deposits | $ 182,303 | $ 199,801 |
Advances from the FHLB - Additi
Advances from the FHLB - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Advances from FHLB | $ 777,562 | $ 777,718 |
Availability to borrow additional funds | $ 777,466 | |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Advances from Federal Home Loan Bank, weighted average rate | 0.94% |
Advances from the FHLB - Contra
Advances from the FHLB - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Advances from Federal Home Loan Banks [Abstract] | ||
2022 | $ 27,562 | |
2025 and thereafter | 750,000 | |
Advances from FHLB | $ 777,562 | $ 777,718 |
Other Credit Extensions (Detail
Other Credit Extensions (Details) | Dec. 31, 2021USD ($)facility | Dec. 31, 2020USD ($)facility |
Federal Funds Credit Extensions With Commercial Banks | ||
Other Credit Extensions | ||
Number of credit facilities | facility | 5 | 5 |
Maximum available borrowings | $ 175,000,000 | $ 175,000,000 |
Outstanding borrowings | 0 | 0 |
Federal Reserve Bank Secured Line Of Credit | ||
Other Credit Extensions | ||
Maximum available borrowings | 995,139,000 | 871,485,000 |
Outstanding borrowings | 0 | 0 |
Amounts of commercial loans pledged as collateral | $ 805,747,000 | $ 94,222,000 |
Borrowed Funds - Summary (Detai
Borrowed Funds - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | $ 227,764 | $ 262,778 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 30,465 | 30,244 |
Unamortized discount (premium), net | 3,403 | 3,624 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 197,299 | 232,534 |
Unamortized discount (premium), net | 0 | (1,038) |
Debt issuance costs, net | $ 2,701 | $ 3,504 |
Borrowed Funds - Narrative (Det
Borrowed Funds - Narrative (Details) | Sep. 28, 2021USD ($)shares | Oct. 05, 2020USD ($) | Nov. 08, 2019USD ($) | Jan. 01, 2019USD ($) | Jan. 31, 2019 | Dec. 31, 2021USD ($)quarter | Dec. 31, 2020USD ($)shares | Dec. 31, 2013USD ($)$ / sharesshares | Aug. 01, 2017USD ($) |
Affiliated Entity | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of subordinated notes issued to related party | $ 5,000,000 | ||||||||
Fixed rate (as a percent) | 6.00% | ||||||||
Number of shares that warrants issued to related party may be converted into (in shares) | shares | 25,000,000 | ||||||||
Exercise price of warrants issued to related party (in dollars per share) | $ / shares | $ 11 | ||||||||
Price used to calculate fair value of warrants issued to related party (in dollars per share) | $ / shares | $ 0.80 | ||||||||
Number of warrants exercised (in shares) | shares | 15,000 | 10,000 | |||||||
Fair value of warrants exercised | $ 165,000 | $ 110,000 | |||||||
Parkway Trust Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Distribution effective rate (as a percent) | 2.05% | 2.07% | |||||||
Parkway Trust Securities | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable distribution rate (as a percent) | 1.85% | ||||||||
Parkway Trust Securities | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 3,093,000 | ||||||||
SovDallas Trust Securities | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 8,609,000 | ||||||||
Debt instrument, effective percentage | 4.13% | 4.23% | |||||||
SovDallas Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest on securities, addition to LIBOR | 4.00% | ||||||||
Patriot I Trust Securities | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 5,155,000 | ||||||||
Debt instrument, effective percentage | 1.97% | 2.09% | |||||||
Patriot I Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.85% | ||||||||
Patriot II Trust Securities | Junior Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | 17,011,000 | ||||||||
Debt instrument, effective percentage | 2.00% | 2.02% | |||||||
Patriot II Trust Securities | Junior Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.80% | ||||||||
The 8.50% Fixed-to-Floating Notes | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 35,000,000 | ||||||||
Interest rate, stated percentage | 8.50% | ||||||||
Redemption price, percentage | 100.00% | ||||||||
The 8.50% Fixed-to-Floating Notes | Subordinated Debt | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 6.685% | ||||||||
2019 Notes | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 75,000,000 | ||||||||
Basis spread on variable rate | 3.47% | ||||||||
Interest rate, stated percentage | 4.75% | ||||||||
Redemption price, percentage | 100.00% | ||||||||
2020 Notes | Subordinated Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, face amount | $ 125,000,000 | ||||||||
Interest rate, stated percentage | 4.125% | ||||||||
2020 Notes | Subordinated Debt | Overnight Funding Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.995% | ||||||||
Maximum | Parkway Trust Securities | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest distribution quarterly periods | quarter | 20 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax expense (benefit): | |||
Current | $ 32,075 | $ 23,587 | $ 16,068 |
Deferred | 4,647 | (9,384) | 9,053 |
Total income tax expense | $ 36,722 | $ 14,203 | $ 25,121 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense rate at 21% for December 31, 2021, 2020 and 2019 | $ 37,024 | $ 18,498 | $ 24,330 |
Bank-owned life insurance | (852) | (407) | (422) |
Non-deductible transaction costs | 78 | 0 | 308 |
Tax exempt interest income | (545) | (452) | (391) |
Impact of IRS Settlement | 0 | 0 | (1,556) |
Deferred tax true up | 24 | (1,181) | 0 |
162(m) Disallowance | 504 | 65 | 1,512 |
State Taxes | 1,039 | 902 | 760 |
Excess benefit on share-based compensation | (838) | (1,435) | 205 |
Net Operating Loss ("NOL") Carryback | 0 | (1,799) | 0 |
Other | 288 | 12 | 375 |
Total income tax expense | $ 36,722 | $ 14,203 | $ 25,121 |
Effective tax rate (in percent) | 20.80% | 16.10% | 21.70% |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
ACL | $ 18,274 | $ 24,324 |
Equity compensation | 4,111 | 3,390 |
Purchase premium/loan discounts | 1,555 | 2,945 |
Bonuses | 3,036 | 1,437 |
Lease liability | 3,785 | 3,276 |
Deferred fee income | 1,967 | 65 |
Purchase securities | 2,507 | 2,905 |
Other | 1,317 | 2,399 |
Total deferred tax assets | 36,552 | 40,741 |
Deferred tax liabilities: | ||
Intangibles | 10,372 | 11,911 |
Bank premises and equipment | 5,773 | 4,036 |
ROU asset | 3,583 | 3,124 |
Net unrealized gain on AFS debt securities and derivative instruments | 17,030 | 14,944 |
Other | 1,864 | 2,063 |
Total deferred tax liabilities | 38,622 | 36,078 |
Net deferred tax (liability) asset | $ (2,070) | |
Net deferred tax (liability) asset | $ 4,663 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Taxes payable, current | $ 806 | $ 270 |
Other Assets | ||
Operating Loss Carryforwards [Line Items] | ||
Current tax receivable | 9,366 | 25,520 |
Deferred tax asset | $ 2,070 | $ 4,663 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the year: | $ 549 | $ 0 | $ 0 |
Gross increases, related to tax positions taken in a prior period | 0 | 281 | 2,155 |
Gross decreases, related to tax positions taken in a prior period | (101) | 0 | 0 |
Gross increases, related to tax positions taken in current period | 55 | 268 | 0 |
Settlement with taxing authority | 0 | 0 | (2,155) |
Unrecognized tax benefits at the end of the year | $ 503 | $ 549 | $ 0 |
Fair Value Disclosures - Recurr
Fair Value Disclosures - Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
AFS debt securities | $ 993,058 | $ 1,024,329 |
Equity securities with a readily determinable fair value | 11,038 | 11,363 |
PPP Loans | 53,369 | 358,042 |
Derivative asset, fair value | 9,181 | 28,482 |
Derivative liability, fair value | 3,736 | 13,923 |
Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 7,001 | 17,543 |
Derivative liability, fair value | 1,404 | 2,255 |
Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 4,789 | 10,938 |
Derivative liability, fair value | 4,941 | 11,667 |
Recurring | ||
Assets: | ||
AFS debt securities | 993,058 | 1,024,329 |
Equity securities with a readily determinable fair value | 11,038 | 11,363 |
PPP Loans | 53,369 | 358,042 |
Loans held for sale | 9,867 | 6,681 |
Recurring | Level 1 | ||
Assets: | ||
AFS debt securities | 0 | 0 |
Equity securities with a readily determinable fair value | 11,038 | 11,363 |
PPP Loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
AFS debt securities | 993,058 | 1,024,329 |
Equity securities with a readily determinable fair value | 0 | 0 |
PPP Loans | 53,369 | 358,042 |
Loans held for sale | 9,867 | 6,681 |
Recurring | Level 3 | ||
Assets: | ||
AFS debt securities | 0 | 0 |
Equity securities with a readily determinable fair value | 0 | 0 |
PPP Loans | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swap | Recurring | Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 7,001 | 17,543 |
Derivative liability, fair value | 1,404 | 2,255 |
Interest rate swap | Recurring | Level 1 | Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Interest rate swap | Recurring | Level 2 | Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 7,001 | 17,543 |
Derivative liability, fair value | 1,404 | 2,255 |
Interest rate swap | Recurring | Level 3 | Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Interest rate swap | Financial institution counterparty | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1,527 | 0 |
Derivative liability, fair value | 3,498 | 11,666 |
Interest rate swap | Financial institution counterparty | Recurring | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1,527 | |
Derivative liability, fair value | 3,498 | 11,666 |
Interest rate swap | Financial institution counterparty | Recurring | Level 1 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | 0 |
Interest rate swap | Financial institution counterparty | Recurring | Level 2 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1,527 | |
Derivative liability, fair value | 3,498 | 11,666 |
Interest rate swap | Financial institution counterparty | Recurring | Level 3 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | 0 |
Interest rate swap | Commercial customer counterparty | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 3,261 | 10,937 |
Derivative liability, fair value | 1,442 | 0 |
Interest rate swap | Commercial customer counterparty | Recurring | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 3,261 | 10,937 |
Interest rate swap | Commercial customer counterparty | Recurring | Level 1 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Interest rate swap | Commercial customer counterparty | Recurring | Level 2 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 3,261 | 10,937 |
Interest rate swap | Commercial customer counterparty | Recurring | Level 3 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Interest rate caps and collars | Financial institution counterparty | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | 1 |
Derivative liability, fair value | 1 | 0 |
Interest rate caps and collars | Financial institution counterparty | Recurring | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1 | |
Derivative liability, fair value | 1 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 1 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 2 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1 | |
Derivative liability, fair value | 1 | |
Interest rate caps and collars | Financial institution counterparty | Recurring | Level 3 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | |
Interest rate caps and collars | Commercial customer counterparty | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1 | 0 |
Derivative liability, fair value | 0 | 1 |
Interest rate caps and collars | Commercial customer counterparty | Recurring | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1 | |
Derivative liability, fair value | 1,442 | 1 |
Interest rate caps and collars | Commercial customer counterparty | Recurring | Level 1 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | 0 | 0 |
Interest rate caps and collars | Commercial customer counterparty | Recurring | Level 2 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 1 | |
Derivative liability, fair value | 1,442 | 1 |
Interest rate caps and collars | Commercial customer counterparty | Recurring | Level 3 | Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 0 | |
Derivative liability, fair value | $ 0 | $ 0 |
Fair Value Disclosures - Non-re
Fair Value Disclosures - Non-recurring Basis (Details) - Non-recurring - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Collateral dependent loans with an ACL | $ 10,100,000 | $ 2,386,000 |
Servicing assets with a valuation allowance | 3,223,000 | 2,975,000 |
Collateral dependent loans with an ACL, gross | 17,908,000 | 7,115,000 |
Impaired loans, specific allowance | 7,808,000 | 4,729,000 |
Servicing asset at fair value, gross | 3,850,000 | 3,531,000 |
Valuation allowance for servicing asset | 627,000 | 556,000 |
Liabilities measured at fair value | 0 | 0 |
Level 1 | ||
Assets: | ||
Collateral dependent loans with an ACL | 0 | 0 |
Servicing assets with a valuation allowance | 0 | 0 |
Level 2 | ||
Assets: | ||
Collateral dependent loans with an ACL | 0 | 0 |
Servicing assets with a valuation allowance | 0 | 0 |
Level 3 | ||
Assets: | ||
Collateral dependent loans with an ACL | 10,100,000 | 2,386,000 |
Servicing assets with a valuation allowance | $ 3,223,000 | $ 2,975,000 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Held-to-maturity debt securities | $ 61,446 | $ 34,283 |
Securities purchased under agreement to resell | 102,288 | 0 |
Equity securities without a readily determinable fair value | 4,355 | 3,575 |
FHLB and FRB stock | 71,892 | 71,236 |
Financial liabilities: | ||
Subordinated debentures and subordinated notes | 227,764 | 262,778 |
Securities sold under agreement to repurchase | 4,069 | 2,225 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 379,784 | 230,825 |
Held-to-maturity debt securities | 59,436 | 30,872 |
Securities purchased under agreement to resell | 102,288 | |
Loans held for sale | 16,140 | 14,733 |
Accrued interest receivable | 22,008 | 23,798 |
Bank-owned life insurance | 83,194 | 82,855 |
Servicing asset | 14,482 | 388 |
Equity securities without a readily determinable fair value | 4,355 | 3,575 |
FHLB and FRB stock | 71,892 | 71,236 |
Financial liabilities: | ||
Deposits | 7,363,615 | 6,512,846 |
Advances from FHLB | 777,562 | 77,718 |
Accrued interest payable | 1,507 | 2,665 |
Subordinated debentures and subordinated notes | 227,764 | 262,778 |
Securities sold under agreement to repurchase | 4,069 | 2,225 |
Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity debt securities | 0 | 0 |
Securities purchased under agreement to resell | 0 | |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | 0 | 0 |
Securities sold under agreement to repurchase | 0 | 0 |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 379,784 | 230,825 |
Held-to-maturity debt securities | 61,446 | 34,283 |
Securities purchased under agreement to resell | 102,288 | |
Loans held for sale | 16,140 | 14,733 |
Accrued interest receivable | 22,008 | 23,798 |
Bank-owned life insurance | 83,194 | 82,855 |
Servicing asset | 14,482 | 486 |
Financial liabilities: | ||
Deposits | 7,145,175 | 6,608,849 |
Advances from FHLB | 796,480 | 782,321 |
Accrued interest payable | 1,507 | 2,665 |
Subordinated debentures and subordinated notes | 227,764 | 262,778 |
Securities sold under agreement to repurchase | 4,026 | 2,199 |
Level 3 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Held-to-maturity debt securities | 0 | 0 |
Securities purchased under agreement to resell | 0 | |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Servicing asset | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Advances from FHLB | 0 | 0 |
Accrued interest payable | 0 | 0 |
Subordinated debentures and subordinated notes | 0 | 0 |
Securities sold under agreement to repurchase | 0 | 0 |
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount | ||
Financial assets: | ||
LHI | 7,259,233 | 6,317,986 |
Real Estate, Commercial and Consumer Portfolio Segments | Level 1 | Total Fair Value | ||
Financial assets: | ||
LHI | 0 | 0 |
Real Estate, Commercial and Consumer Portfolio Segments | Level 2 | Total Fair Value | ||
Financial assets: | ||
LHI | 0 | 0 |
Real Estate, Commercial and Consumer Portfolio Segments | Level 3 | Total Fair Value | ||
Financial assets: | ||
LHI | $ 7,283,992 | $ 6,335,402 |
Off-Balance Sheet Loan Commit_3
Off-Balance Sheet Loan Commitments - Financial Instruments Approximate Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 4,591,760 | $ 3,142,601 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 3,809,509 | 2,743,571 |
MW commitments | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 716,370 | 354,603 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 65,881 | $ 44,427 |
Off-Balance Sheet Loan Commit_4
Off-Balance Sheet Loan Commitments - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Unfunded Commitments [Roll Forward] | |||
Beginning balance for ACL on unfunded commitments | $ 10,747 | $ 878 | |
Impact of CECL adoption | 0 | 840 | |
(Benefit) provision for credit losses on unfunded commitments | (1,481) | 9,029 | $ 0 |
Ending balance of ACL on unfunded commitments | $ 9,266 | $ 10,747 | $ 878 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Balance Sheet Information (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Derivative [Line Items] | |||
Notional Amount | $ 1,468,406,000 | $ 1,441,668,000 | |
Asset Derivative | |||
Gross derivatives | 9,181,000 | 28,482,000 | |
Offsetting derivative assets | (2,609,000) | 1,000 | |
Liability Derivative | |||
Gross derivatives | 3,736,000 | 13,923,000 | |
Offsetting derivative liabilities | (2,609,000) | 1,000 | |
Derivatives designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount | 625,000,000 | 750,000,000 | |
Asset Derivative | |||
Gross derivatives | 7,001,000 | 17,543,000 | |
Liability Derivative | |||
Gross derivatives | 1,404,000 | 2,255,000 | |
Derivatives designated as hedging instruments | Interest rate swap on borrowing advances | |||
Derivative [Line Items] | |||
Notional Amount | 0 | 500,000,000 | |
Asset Derivative | |||
Gross derivatives | 0 | 17,543,000 | |
Liability Derivative | |||
Gross derivatives | 0 | 0 | |
Derivatives designated as hedging instruments | Interest rate swap on money market deposit account payments | |||
Derivative [Line Items] | |||
Notional Amount | 250,000,000 | 250,000,000 | $ 250,000 |
Asset Derivative | |||
Gross derivatives | 4,541,000 | 0 | |
Liability Derivative | |||
Gross derivatives | 0 | 2,255,000 | |
Derivatives designated as hedging instruments | Interest rate swap on customer loan interest payments | |||
Derivative [Line Items] | |||
Notional Amount | 125,000,000 | 0 | |
Asset Derivative | |||
Gross derivatives | 0 | 0 | |
Liability Derivative | |||
Gross derivatives | 867,000 | 0 | |
Derivatives designated as hedging instruments | Interest rate swap on customer loan interest payments | |||
Derivative [Line Items] | |||
Notional Amount | 125,000,000 | 0 | |
Asset Derivative | |||
Gross derivatives | 0 | 0 | |
Liability Derivative | |||
Gross derivatives | 537,000 | 0 | |
Derivatives designated as hedging instruments | Interest rate swap on customer loan interest payments | |||
Derivative [Line Items] | |||
Notional Amount | 125,000,000 | 0 | |
Asset Derivative | |||
Gross derivatives | 2,460,000 | 0 | |
Liability Derivative | |||
Gross derivatives | 0 | 0 | |
Derivatives designated as hedging instruments | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | $ 500,000 | ||
Derivatives not designated as hedging instruments | |||
Derivative [Line Items] | |||
Notional Amount | 843,406,000 | 691,668,000 | |
Asset Derivative | |||
Gross derivatives | 4,789,000 | 10,938,000 | |
Liability Derivative | |||
Gross derivatives | 4,941,000 | 11,667,000 | |
Financial institution counterparty | Derivatives not designated as hedging instruments | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 379,787,000 | 303,918,000 | |
Asset Derivative | |||
Gross derivatives | 1,527,000 | 0 | |
Liability Derivative | |||
Gross derivatives | 3,498,000 | 11,666,000 | |
Financial institution counterparty | Derivatives not designated as hedging instruments | Interest rate caps and collars | |||
Derivative [Line Items] | |||
Notional Amount | 41,916,000 | 41,916,000 | |
Asset Derivative | |||
Gross derivatives | 0 | 1,000 | |
Liability Derivative | |||
Gross derivatives | 1,000 | 0 | |
Commercial customer counterparty | Derivatives not designated as hedging instruments | Interest rate swaps | |||
Derivative [Line Items] | |||
Notional Amount | 379,787,000 | 303,918,000 | |
Asset Derivative | |||
Gross derivatives | 3,261,000 | 10,937,000 | |
Liability Derivative | |||
Gross derivatives | 1,442,000 | 0 | |
Commercial customer counterparty | Derivatives not designated as hedging instruments | Interest rate caps and collars | |||
Derivative [Line Items] | |||
Notional Amount | 41,916,000 | 41,916,000 | |
Asset Derivative | |||
Gross derivatives | 1,000 | 0 | |
Liability Derivative | |||
Gross derivatives | $ 0 | $ 1,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - AOCI Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivative | $ 33,338 | $ 11,265 | |
Gain (loss) reclassified from accumulated other comprehensive income into income | $ 3,777 | 1,332 | |
Interest rate swap on borrowing advances | Interest Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivative | 26,357 | 13,859 | |
Gain (loss) reclassified from accumulated other comprehensive income into income | 0 | 0 | |
Interest rate swap on money market deposit account payments | Interest Expense | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivative | 6,995 | (1,781) | |
Gain (loss) reclassified from accumulated other comprehensive income into income | (803) | (605) | |
Interest rate swap on customer loan interest payments | Interest Income | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivative | 0 | (813) | |
Gain (loss) reclassified from accumulated other comprehensive income into income | 866 | 1,937 | |
Interest rate swap on customer loan interest payments | Interest Income | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net gain (loss) recognized in other comprehensive income on derivative | (14) | 0 | |
Gain (loss) reclassified from accumulated other comprehensive income into income | 3,714 | 0 | |
Interest rate caps and collars | Derivatives not designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Net Gain recognized in other noninterest income | $ 1,913 | $ 2,481 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Narrative (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 1,468,406,000 | $ 1,441,668,000 | |
Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | 625,000,000 | 750,000,000 | |
Interest rate swaps | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 500,000 | ||
Interest rate swap on money market deposit account payments | Derivatives designated as hedging instruments | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 250,000,000 | $ 250,000,000 | $ 250,000 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Summary of Interest Rate Swaps Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Notional Amount | $ 1,468,406 | $ 1,441,668 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 843,406 | 691,668 |
Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 379,787 | $ 303,918 |
Maturity (in years) | 4 years 9 months 18 days | 4 years 1 month 6 days |
Fair Value | $ 1,820 | $ (11,666) |
Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 41,916 | $ 41,916 |
Maturity (in years) | 7 months 6 days | 1 year 7 months 6 days |
Fair Value | $ 1 | $ 1 |
Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 379,787 | $ 303,918 |
Maturity (in years) | 4 years 9 months 18 days | 4 years 1 month 6 days |
Fair Value | $ (1,972) | $ 10,937 |
Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 41,916 | $ 41,916 |
Maturity (in years) | 7 months 6 days | 1 year 7 months 6 days |
Fair Value | $ (1) | $ (1) |
Prime Rate | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 25.00% | |
Prime Rate | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 25.00% | |
Minimum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 2.97% | 3.14% |
Minimum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.00% | 2.50% |
Minimum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 3.14% | |
Minimum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 2.50% | 3.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.20% | 0.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | 0.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.20% | 0.00% |
Minimum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0.00% | 0.00% |
Minimum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.48% | |
Minimum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.48% | |
Minimum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.50% | |
Minimum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.50% | |
Maximum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 8.47% | 8.47% |
Maximum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 5.00% | 3.00% |
Maximum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 8.47% | |
Maximum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.00% | 5.80% |
Maximum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 5.00% | 5.00% |
Maximum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 2.50% | |
Maximum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 5.00% | 5.00% |
Maximum | London Interbank Offered Rate (LIBOR) | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 2.50% | |
Maximum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.90% | |
Maximum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.90% | |
Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.964% | |
Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.964% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | ||
Matching contributions to 401(k) profit sharing Plan | $ 3,755 | $ 3,210 |
Stock and Incentive Plans - Nar
Stock and Incentive Plans - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)installment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2010shares | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights, installments | installment | 3 | |||
2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 1,000,000 | |||
Stock based compensation expense | $ 0 | $ 0 | $ 3,000 | |
2019 Amended Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | 8,614,000 | 6,080,000 | ||
Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,959,000 | 1,903,000 | ||
Restricted shares | 2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 100,000 | |||
Term of continuous service for vesting awards (in years) | 4 years | |||
Stock option | 2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 900,000 | |||
Term of continuous service for vesting awards (in years) | 5 years | |||
Contractual terms for non-controlling participants (in years) | 10 years | |||
Stock option | 2019 Amended Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 803,000 | 2,470,000 | 2,948,000 | |
Requisite service period to recognize compensation cost (in years) | 7 months 13 days | |||
Stock option | Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 100,000 | 626,000 | 1,062,000 | |
Requisite service period to recognize compensation cost (in years) | 1 month 28 days | |||
Performance-based stock options | 2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 500,000 | |||
Restricted stock units | 2019 Amended Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 10,413,000 | 8,222,000 | 4,329,000 | |
Requisite service period to recognize compensation cost (in years) | 1 year 9 months 21 days | |||
Restricted stock units | Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 1,252,000 | 2,484,000 | 1,991,000 | |
Requisite service period to recognize compensation cost (in years) | 1 year 2 months 1 day | |||
Non-performance Based Stock Options | 2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 0 | $ 0 | $ 0 |
Stock and Incentive Plans - 201
Stock and Incentive Plans - 2010 Plan - Options (Details) - Non-performance Based Stock Options - 2010 Stock Option and Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 20,000 | 257,500 | 275,000 | |
Exercised (in shares) | (19,000) | (237,500) | (17,500) | |
Outstanding at the end of period (in shares) | 1,000 | 20,000 | 257,500 | 275,000 |
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.09 | $ 10.28 | $ 10.12 | |
Exercised (in dollars per share) | 10 | 10.12 | 10.24 | |
Outstanding at the end of period (in dollars per share) | $ 10.43 | $ 10.09 | $ 10.28 | $ 10.12 |
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year, term (in years) | 1 year 25 days | 1 year 21 days | 1 year 4 months 13 days | 2 years 4 months 20 days |
Exercisable, term (in years) | 1 year 25 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 147 |
Stock and Incentive Plans - Sto
Stock and Incentive Plans - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
2019 Amended Plan | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 8,614 | $ 6,080 |
Veritex (Green) 2014 Plan | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 1,959 | $ 1,903 |
Stock and Incentive Plans - 2_2
Stock and Incentive Plans - 2019 Amended Plan - Options (Details) - 2019 Amended Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Non-performance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 975,801 | 849,768 | 449,520 | |
Granted during the period (in shares) | 500 | 185,025 | 200,561 | |
Conversion to equity awards (in shares) | 253,633 | |||
Forfeited (in shares) | (13,996) | (25,053) | (41,336) | |
Exercised (in shares) | (252,262) | (33,939) | (12,610) | |
Outstanding at the end of period (in shares) | 710,043 | 975,801 | 849,768 | 449,520 |
Options exercisable at end of period (in shares) | 403,726 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 24.26 | $ 23.61 | $ 24.47 | |
Granted during the period (in dollars per share) | 36.54 | 26.73 | 22.72 | |
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 25.93 | 27.37 | 25.51 | |
Exercised (in dollars per share) | 23.87 | 19.10 | 15.42 | |
Outstanding at the end of period (in dollars per share) | 24.38 | $ 24.26 | $ 23.61 | $ 24.47 |
Options exercisable at end of period (in dollars per share) | 24.50 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 36.54 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year, term (in years) | 6 years 10 months 28 days | 7 years 5 months 12 days | 8 years 2 months 26 days | 8 years 2 months 26 days |
Exercisable, term (in years) | 6 years 4 months 17 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 10,935 | |||
Options exercisable, intrinsic value | $ 6,171 | |||
Liability Nonperformance Based Stock Options | ||||
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 0 | 0 | 0 | |
Granted during the period (in shares) | 0 | 0 | 253,633 | |
Conversion to equity awards (in shares) | (253,633) | |||
Forfeited (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | 0 | 0 | 0 | |
Outstanding at the end of period (in shares) | 0 | 0 | 0 | 0 |
Options exercisable at end of period (in shares) | 0 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 0 | $ 0 | $ 0 | |
Granted during the period (in dollars per share) | 0 | 0 | 21.38 | |
Conversion to equity awards (in dollars per share) | 21.38 | |||
Forfeited (in dollars per share) | 0 | 0 | 0 | |
Exercised (in dollars per share) | 0 | 0 | 0 | |
Outstanding at the end of period (in dollars per share) | 0 | $ 0 | $ 0 | $ 0 |
Options exercisable at end of period (in dollars per share) | 0 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0 | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 0 | |||
Options exercisable, intrinsic value | $ 0 |
Stock and Incentive Plans - 2_3
Stock and Incentive Plans - 2019 Amended Plan - Restricted Stock Units (Details) - 2019 Amended Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RSUs | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 441,132 | 175,688 | 133,455 |
Granted (in shares) | 281,149 | 360,400 | 127,459 |
Conversion to equity awards (in shares) | 165,739 | ||
Vested into shares (in shares) | (108,732) | (93,377) | (250,965) |
Forfeited (in shares) | (15,498) | (1,579) | |
Nonvested at the end of the period (in shares) | 598,051 | 441,132 | 175,688 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 20.39 | $ 21.65 | $ 19.67 |
Granted (in dollars per share) | 28.68 | 20.38 | 22.44 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 24.19 | 24.73 | 22.29 |
Forfeited (in dollars per share) | 28.47 | 29.13 | |
Nonvested at the end of the period (in dollars per share) | $ 23.39 | $ 20.39 | $ 21.65 |
Nonperformance based liability Restricted Stock Units | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 0 | 0 | 0 |
Granted (in shares) | 0 | 0 | 165,739 |
Conversion to equity awards (in shares) | (165,739) | ||
Vested into shares (in shares) | 0 | 0 | 0 |
Forfeited (in shares) | 0 | 0 | |
Nonvested at the end of the period (in shares) | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
Granted (in dollars per share) | 0 | 0 | 21.38 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | 0 | 0 |
Forfeited (in dollars per share) | 0 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
PSUs | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 100,195 | 63,727 | 63,988 |
Granted (in shares) | 56,276 | 39,398 | 38,746 |
Conversion to equity awards (in shares) | 32,249 | ||
Vested into shares (in shares) | (1,841) | (51,284) | |
Forfeited (in shares) | (1,089) | (19,972) | |
Nonvested at the end of the period (in shares) | 156,471 | 100,195 | 63,727 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 23.20 | $ 22.76 | $ 21.28 |
Granted (in dollars per share) | 25.94 | 25.94 | 22.53 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 19.69 | 25.31 | |
Forfeited (in dollars per share) | 19.69 | 21.38 | |
Nonvested at the end of the period (in dollars per share) | $ 24.17 | $ 23.20 | $ 22.76 |
Performance based Restricted Stock Units | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 0 | 0 | 0 |
Granted (in shares) | 0 | 0 | 32,249 |
Conversion to equity awards (in shares) | (32,249) | ||
Vested into shares (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Nonvested at the end of the period (in shares) | 0 | 0 | 0 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
Granted (in dollars per share) | 0 | 0 | 21.38 |
Conversion to equity awards (in dollars per share) | 21.38 | ||
Vested into shares (in dollars per share) | 0 | 0 | |
Forfeited (in dollars per share) | 0 | 0 | |
Nonvested at the end of the period (in dollars per share) | $ 0 | $ 0 | $ 0 |
Stock and Incentive Plans - Fai
Stock and Incentive Plans - Fair Value Options Exercised or Restricted Stock Units Vested (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 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] | |||
Nonperformance-based stock options exercised | $ 568 | $ 6,579 | $ 454 |
2019 Amended Plan | Non-performance Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | 9,214 | 954 | 334 |
2019 Amended Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 2,781 | 2,529 | 6,113 |
2019 Amended Plan | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 0 | 36 | 1,089 |
Veritex (Green) 2014 Plan | Non-performance Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | 4,599 | 1,021 | 3,054 |
Veritex (Green) 2014 Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 713 | 828 | 0 |
Green Bancorp Inc. 2010 Stock Option Plan | Non-performance Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | $ 1,838 | $ 12,231 | $ 5,554 |
Stock and Incentive Plans - Ver
Stock and Incentive Plans - Veritex (Green) 2014 Plan Options (Details) - Veritex (Green) 2014 Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares Underlying Options | |||
Outstanding at beginning of period (in shares) | 352,000 | 386,969 | 0 |
Converted in acquisition of Green (in shares) | 304,778 | ||
Granted during the period (in shares) | 31,075 | 211,793 | |
Forfeited (in shares) | (7,245) | (30,711) | (12,673) |
Exercised (in shares) | (126,951) | (35,333) | (116,929) |
Outstanding at the end of period (in shares) | 217,804 | 352,000 | 386,969 |
Options exercisable at end of period (in shares) | 149,602 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 19.99 | $ 19.30 | $ 0 |
Converted in acquisition of Green (in dollars per share) | 15.41 | ||
Granted during the period (in dollars per share) | 29.13 | 21.38 | |
Forfeited (in dollars per share) | 21.38 | 20.92 | 13.17 |
Exercised (in dollars per share) | 20.55 | 19.42 | 13.60 |
Outstanding at the end of period (in dollars per share) | 19.62 | $ 19.99 | $ 19.30 |
Options exercisable at end of period (in dollars per share) | $ 17.73 | ||
Weighted Average Contractual Term | |||
Outstanding at beginning of year, term (in years) | 6 years 1 month 17 days | ||
Exercisable, term (in years) | 5 years 6 months 29 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 4,424 | ||
Options exercisable, intrinsic value | $ 3,299 |
Stock and Incentive Plans - V_2
Stock and Incentive Plans - Veritex (Green) 2014 Plan Restricted Stock Units (Details) - Veritex (Green) 2014 Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Nonvested at the beginning of the period (in shares) | 156,187 | 116,250 | 0 |
Number of shares awarded (in shares) | 5,692 | 93,918 | 116,250 |
Vested into shares (in shares) | (33,335) | (38,744) | |
Forfeited (in shares) | (5,760) | (15,237) | |
Nonvested at the end of the period (in shares) | 122,784 | 156,187 | 116,250 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 22.64 | $ 21.38 | $ 0 |
Granted (in dollars per share) | 26.12 | 21.36 | 21.38 |
Vested (in dollars per share) | 21.38 | 21.38 | |
Forfeited (in dollars per share) | 25.21 | 23.62 | |
Nonvested at the end of the period (in dollars per share) | $ 21.13 | $ 22.64 | $ 21.38 |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Nonvested at the beginning of the period (in shares) | 30,728 | 25,320 | 0 |
Number of shares awarded (in shares) | 6,231 | 8,531 | 26,145 |
Forfeited (in shares) | (1,060) | (3,123) | (825) |
Nonvested at the end of the period (in shares) | 35,899 | 30,728 | 25,320 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 21.43 | $ 21.38 | $ 0 |
Granted (in dollars per share) | 25.94 | 25.94 | 21.38 |
Forfeited (in dollars per share) | 19.69 | 19.69 | 21.38 |
Nonvested at the end of the period (in dollars per share) | $ 22.26 | $ 21.43 | $ 21.38 |
Stock and Incentive Plans - Gre
Stock and Incentive Plans - Green Bancorp Inc. 2010 and 2006 Option Plan (Details) - Green Bancorp Inc. 2010 Stock Option Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Shares Underlying Options | |||
Outstanding at beginning of period (in shares) | 131,083 | 571,735 | 0 |
Converted in acquisition of Green (in shares) | 768,628 | ||
Forfeited (in shares) | (2,198) | (6,241) | |
Exercised (in shares) | (62,742) | (440,652) | (190,652) |
Outstanding at the end of period (in shares) | 66,143 | 131,083 | 571,735 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 11.60 | $ 10.64 | $ 0 |
Converted in acquisition of Green (in dollars per share) | 10.73 | ||
Forfeited (in dollars per share) | 13.69 | 13.69 | |
Exercised (in dollars per share) | 10.51 | 10.35 | 10.93 |
Outstanding at the end of period (in dollars per share) | $ 12.56 | $ 11.60 | $ 10.64 |
Outstanding at beginning of year, term (in years) | 2 years 2 months 1 day | ||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 1,800 |
Related Party Transactions (Det
Related Party Transactions (Details) - Employees, Officers, Directors and Affiliates - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Financing receivable with related parties | $ 12,651 | $ 34,944 |
New advances to the Company's employees, officers, directors and their affiliates | 6,185 | 12,477 |
Principal payments received from the loans to employees, officers, directors, and their affiliates | 16,976 | 19,991 |
Financing receivable no longer related party transactions | 11,502 | |
Unfunded commitments to related parties | 4,028 | 13,191 |
Deposits received from related parties | $ 303,190 | $ 506,068 |
Capital Requirements and Rest_3
Capital Requirements and Restrictions on Retained Earnings (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | |
Total capital (to risk-weighted assets "RWA") | |||
Actual Amount | $ 1,100,404 | $ 1,099,031 | |
Actual Ratio (as a percent) | 0.1160 | 0.1357 | |
For Capital Adequacy Purposes Amount | $ 758,899 | $ 647,918 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.080 | 0.080 | |
Tier 1 capital (to RWA) | |||
Actual Amount | $ 843,585 | $ 782,487 | |
Actual Ratio (as a percent) | 0.0889 | 0.0966 | |
For Capital Adequacy Purposes Amount | $ 569,349 | $ 486,017 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.060 | 0.060 | |
Common equity tier 1 (to RWA) | |||
Common Equity Tier One Capital | $ 814,138 | $ 753,261 | |
Common Equity Tier One Capital Ratio (as a percent) | 0.0858 | 0.0930 | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 426,995 | $ 364,481 | |
For Capital Adequacy Purposes Amount (as a percent) | 0.045 | 0.045 | |
Tier 1 capital (to average assets) | |||
Actual Amount | $ 843,585 | $ 782,487 | |
Actual Ratio (as a percent) | 0.0905 | 0.0943 | |
For Capital Adequacy Purposes Amount | $ 372,855 | $ 331,914 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.040 | 0.040 | |
Dividends paid | $ 36,543 | $ 34,057 | $ 26,796 |
Bank | |||
Total capital (to risk-weighted assets "RWA") | |||
Actual Amount | $ 1,053,871 | $ 968,481 | |
Actual Ratio (as a percent) | 0.1111 | 0.1196 | |
For Capital Adequacy Purposes Amount | $ 758,863 | $ 647,813 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.080 | 0.080 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 948,579 | $ 809,767 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.100 | 0.100 | |
Tier 1 capital (to RWA) | |||
Actual Amount | $ 994,351 | $ 884,471 | |
Actual Ratio (as a percent) | 0.1048 | 0.1092 | |
For Capital Adequacy Purposes Amount | $ 569,285 | $ 485,973 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.060 | 0.060 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 759,047 | $ 647,964 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.080 | 0.080 | |
Common equity tier 1 (to RWA) | |||
Common Equity Tier One Capital | $ 994,351 | $ 884,471 | |
Common Equity Tier One Capital Ratio (as a percent) | 0.1048 | 0.1092 | |
Common Equity Tier One Capital Required for Capital Adequacy | $ 426,964 | $ 364,480 | |
For Capital Adequacy Purposes Amount (as a percent) | 0.045 | 0.045 | |
Common Equity Tier One Capital Required to be Well-Capitalized | $ 616,725 | $ 526,471 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.065 | 0.065 | |
Tier 1 capital (to average assets) | |||
Actual Amount | $ 994,351 | $ 884,471 | |
Actual Ratio (as a percent) | 0.1069 | 0.1066 | |
For Capital Adequacy Purposes Amount | $ 372,068 | $ 331,884 | |
For Capital Adequacy Purposes Ratio (as a percent) | 0.040 | 0.040 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 465,085 | $ 414,855 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent) | 0.050 | 0.050 | |
Dividends paid to Holdco | $ 8,440 | $ 65,000 | |
Veritex Holdings, Inc. | |||
Tier 1 capital (to average assets) | |||
Dividends paid | $ 36,543 | $ 34,057 | |
Dividends paid (in dollars per share) | $ / shares | $ 0.20 | $ 0.17 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | Nov. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 403,771 | $ 370,840 | $ 370,840 | |
Merger and acquisition expense | 826 | $ 0 | $ 38,960 | |
North Avenue Capital, LLC | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 32,931 | |||
Cash paid for acquisition | 57,500 | |||
Contingent consideration liability | $ 5,000 | |||
Merger and acquisition expense | $ 826 |
Business Combinations - Acquire
Business Combinations - Acquired Assets and Assumed Liabilities (Details) - USD ($) $ in Thousands | Nov. 01, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Consideration: | ||||
Goodwill | $ 403,771 | $ 370,840 | $ 370,840 | |
North Avenue Capital, LLC | ||||
Assets acquired | ||||
Cash and cash equivalents | $ 1,978 | |||
LHI | 29,338 | |||
Servicing asset | 13,913 | |||
Other assets | 690 | |||
Total assets acquired | 45,919 | |||
Liabilities assumed | ||||
Accounts payable and other accrued expenses | 16,350 | |||
Total liabilities assumed | 16,350 | |||
Fair value of net assets acquired | 29,569 | |||
Consideration: | ||||
Cash paid | 57,500 | |||
Contingent consideration | 5,000 | |||
Total fair value of consideration | 62,500 | |||
Goodwill | $ 32,931 |
Business Combinations - Loans A
Business Combinations - Loans Acquired (Details) - North Avenue Capital, LLC $ in Thousands | Nov. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Total contractual principal and fair value | $ 29,338 |
Commercial | |
Business Acquisition [Line Items] | |
Total contractual principal and fair value | 27,174 |
Real Estate | |
Business Acquisition [Line Items] | |
Total contractual principal and fair value | $ 2,164 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Combination and Asset Acquisition [Abstract] | ||
Net interest income | $ 267,331 | $ 286,313 |
Net income | $ 84,368 | $ 93,939 |
Basic EPS (in USD per share) | $ 1.69 | $ 1.77 |
Diluted EPS (in USD per share) | $ 1.69 | $ 1.74 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||||
Cash and cash equivalents | $ 379,784 | $ 230,825 | ||
Investment in unconsolidated subsidiaries | 1,018 | 1,018 | ||
Other assets | 138,851 | 114,997 | ||
Total assets | 9,757,249 | 8,820,871 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Total liabilities | 8,442,170 | 7,617,495 | ||
Stockholders’ equity: | ||||
Common stock | 560 | 555 | ||
Additional paid-in capital | 1,142,758 | 1,126,437 | ||
Retained earnings | 275,273 | 172,232 | ||
Accumulated other comprehensive income | 64,070 | 56,225 | ||
Treasury stock | (167,582) | (152,073) | ||
Total stockholders’ equity | 1,315,079 | 1,203,376 | $ 1,190,797 | $ 530,638 |
Total liabilities and stockholders’ equity | 9,757,249 | 8,820,871 | ||
Veritex Holdings, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 44,507 | 129,969 | ||
Investment in unconsolidated subsidiaries | 1,496,310 | 1,335,603 | ||
Other assets | 3,736 | 4,638 | ||
Total assets | 1,544,553 | 1,470,210 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 1,710 | 4,056 | ||
Other borrowings | 227,764 | 262,778 | ||
Total liabilities | 229,474 | 266,834 | ||
Stockholders’ equity: | ||||
Common stock | 560 | 555 | ||
Additional paid-in capital | 1,142,758 | 1,126,437 | ||
Retained earnings | 275,273 | 172,232 | ||
Accumulated other comprehensive income | 64,070 | 56,225 | ||
Treasury stock | (167,582) | (152,073) | ||
Total stockholders’ equity | 1,315,079 | 1,203,376 | ||
Total liabilities and stockholders’ equity | $ 1,544,553 | $ 1,470,210 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||
Other | $ 3,237 | $ 3,320 | $ 2,949 |
Total interest and dividend income | 316,484 | 321,850 | 378,786 |
Salaries and employee benefits | 94,748 | 79,453 | 72,791 |
Merger and acquisition expense | 826 | 0 | 38,960 |
Other | 15,149 | 14,192 | 13,712 |
Total noninterest expense | 167,712 | 159,387 | 177,803 |
Income before income tax expense | 176,306 | 88,086 | 115,860 |
Income tax expense | 36,722 | 14,203 | 25,121 |
Net income | 139,584 | 73,883 | 90,739 |
Veritex Holdings, Inc. | |||
Condensed Income Statements, Captions [Line Items] | |||
Cash dividends from subsidiary | 8,440 | 65,000 | 56,750 |
Excess of earnings over dividend from subsidiary | 142,289 | 16,693 | 43,199 |
Other | 43 | 53 | 50 |
Total interest and dividend income | 150,772 | 81,746 | 99,999 |
Interest on borrowings | 12,426 | 8,529 | 4,672 |
Salaries and employee benefits | 668 | 612 | 790 |
Merger and acquisition expense | 0 | 0 | 4,942 |
Other | 1,057 | 798 | 797 |
Total noninterest expense | 14,151 | 9,939 | 11,201 |
Income before income tax expense | 136,621 | 71,807 | 88,798 |
Income tax expense | (2,963) | (2,076) | (1,941) |
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 139,584 | $ 73,883 | $ 90,739 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of Bank | (5,760) | 0 | 0 |
Net cash provided by operating activities | 193,491 | 107,650 | 103,960 |
Cash flows from investing activities: | |||
Net cash (paid) received for acquisitions | (55,522) | 0 | 112,710 |
Net cash used in investing activities | (816,389) | (874,555) | (46,339) |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated notes, net of debt issuance costs paid | 0 | 123,026 | 75,000 |
Proceeds from exercise of stock warrants | 165 | 109 | 0 |
Redemption of subordinated debt | (35,000) | (5,000) | 0 |
Proceeds from exercise of employee stock options | 6,313 | 4,301 | 3,938 |
Payments to tax authorities for stock-based compensation | (725) | (3,829) | (1,346) |
Purchase of treasury stock | (15,509) | (57,470) | (94,533) |
Dividends paid | (36,543) | (34,057) | (26,796) |
Net cash provided by financing activities | 771,857 | 746,180 | 109,480 |
Net increase (decrease) in cash and cash equivalents | 148,959 | (20,725) | 167,101 |
Cash and cash equivalents at beginning of year | 230,825 | 251,550 | 84,449 |
Cash and cash equivalents at end of year | 379,784 | 230,825 | 251,550 |
Veritex Holdings, Inc. | |||
Cash flows from operating activities: | |||
Net income | 139,584 | 73,883 | 90,739 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of debt discount and debt issuance costs, net | 817 | 1,263 | 2,353 |
Equity in undistributed net income of Bank | (142,289) | (16,693) | (43,199) |
Decrease (increase) in other assets | 902 | (1,853) | (1,861) |
(Increase) decrease in other liabilities | (3,177) | 726 | (5,024) |
Net cash provided by operating activities | (4,163) | 57,326 | 43,008 |
Cash flows from investing activities: | |||
Net cash used in investing activities | 0 | 0 | 5,818 |
Cash flows from financing activities: | |||
Proceeds from issuance of subordinated notes, net of debt issuance costs paid | 0 | 123,026 | 75,000 |
Proceeds from exercise of stock warrants | 165 | 109 | 0 |
Redemption of subordinated debt | (35,000) | (5,000) | 0 |
Proceeds from exercise of employee stock options | 6,313 | 4,301 | 3,938 |
Purchase of treasury stock | (15,509) | (57,470) | (94,533) |
Dividends paid | (36,543) | (34,057) | (26,796) |
Net cash provided by financing activities | (81,299) | 27,080 | (43,737) |
Net increase (decrease) in cash and cash equivalents | (85,462) | 84,406 | 5,089 |
Cash and cash equivalents at beginning of year | 129,969 | 45,563 | 40,474 |
Cash and cash equivalents at end of year | 44,507 | 129,969 | 45,563 |
Green Bancorp, Inc. | Veritex Holdings, Inc. | |||
Cash flows from investing activities: | |||
Net cash (paid) received for acquisitions | $ 0 | $ 0 | $ 5,818 |