Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 27, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 945,616,000 | ||
Entity Common Stock, Shares Outstanding | 54,495,326 | ||
Documents Incorporated by Reference | Portions of the registrant’s Definitive Proxy Statement relating to the 2024 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, 2023. | ||
Entity Central Index Key | 0001501570 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 58,914 | $ 60,551 |
Interest bearing deposits in other banks | 570,149 | 375,526 |
Total cash and cash equivalents | 629,063 | 436,077 |
Debt securities AFS, at fair value | 1,076,639 | 1,096,292 |
Debt securities HTM (fair value of $160,021 and $158,781 at December 31, 2023 and 2022, respectively) | 180,403 | 186,168 |
Equity securities | 21,521 | 19,864 |
Investment in unconsolidated subsidiaries | 1,018 | 1,018 |
FHLB and FRB stock | 53,699 | 101,568 |
Total investments | 1,333,280 | 1,404,910 |
LHFS | 79,072 | 20,641 |
LHI, MW | 377,796 | 446,227 |
LHI, excluding MW | 9,206,544 | 9,036,424 |
Less: ACL | (109,816) | (91,052) |
Total LHI, net | 9,474,524 | 9,391,599 |
BOLI | 84,833 | 84,496 |
Premises and equipment, net | 105,727 | 108,824 |
Intangible assets, net of accumulated amortization | 41,753 | 53,213 |
Goodwill | 404,452 | 404,452 |
Other assets | 241,633 | 250,149 |
Total assets | 12,394,337 | 12,154,361 |
Deposits: | ||
Noninterest-bearing deposits | 2,218,036 | 2,640,617 |
Interest-bearing transaction and savings deposits | 4,348,385 | 3,514,729 |
Certificates and other time deposits | 3,191,737 | 2,086,642 |
Correspondent money market account | 580,037 | 881,246 |
Total deposits | 10,338,195 | 9,123,234 |
Accounts payable and other liabilities | 195,036 | 177,579 |
Advances from FHLB | 100,000 | 1,175,000 |
Subordinated debentures and subordinated notes | 229,783 | 228,775 |
Total liabilities | 10,863,014 | 10,704,588 |
Stockholders’ equity: | ||
Common stock, $0.01 par value: Authorized shares - 75,000,000 Issued shares - 60,976,462 and 60,668,049 at December 31, 2023 and December 31, 2022, respectively | 610 | 607 |
APIC | 1,317,516 | 1,306,852 |
Retained earnings | 444,242 | 379,299 |
AOCI | (63,463) | (69,403) |
Treasury stock, 6,638,094 and 6,638,094 shares at cost at December 31, 2023 and 2022, respectively | (167,582) | (167,582) |
Total stockholders’ equity | 1,531,323 | 1,449,773 |
Total liabilities and stockholders’ equity | $ 12,394,337 | $ 12,154,361 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Held-to-maturity debt securities, fair value | $ 160,021 | $ 158,781 |
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) | 60,976,462 | 60,668,049 |
Treasury stock (in shares) | 6,638,094 | 6,638,094 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND DIVIDEND INCOME | |||
Interest and fees on loans | $ 648,245 | $ 399,679 | $ 280,526 |
Debt securities | 44,364 | 38,736 | 32,132 |
Deposits in financial institutions and Fed Funds sold | 28,331 | 6,275 | 589 |
Equity securities and other investments | 5,934 | 4,720 | 3,237 |
Total interest and dividend income | 726,874 | 449,410 | 316,484 |
INTEREST EXPENSE | |||
Transaction and savings deposits | 148,975 | 42,785 | 6,858 |
Certificates and other time deposits | 125,409 | 15,307 | 9,079 |
Advances from FHLB | 41,024 | 15,501 | 7,336 |
Subordinated debentures and subordinated notes | 12,352 | 11,160 | 12,428 |
Total interest expense | 327,760 | 84,753 | 35,701 |
NET INTEREST INCOME | 399,114 | 364,657 | 280,783 |
Provision (benefit) for credit losses | 42,512 | 26,950 | (3,349) |
(Benefit) provision for credit losses on unfunded commitments | (2,041) | 820 | (1,481) |
Net interest income after provision for credit losses | 358,643 | 336,887 | 285,613 |
NONINTEREST INCOME | |||
Service charges and fees on deposit accounts | 20,248 | 20,139 | 16,742 |
Loan fees | 6,348 | 10,442 | 7,607 |
Loss on sale of debt securities | (5,321) | 0 | (188) |
Gain on sale of mortgage LHFS | 77 | 550 | 1,592 |
Gain on sale of SBA LHFS | 2,711 | 2,838 | 14,477 |
Gain on sale of USDA LHFS | 17,271 | 11,222 | 1,283 |
Equity method investment (loss) income | (30,589) | (5,141) | 5,760 |
Customer swap income | 1,618 | 7,898 | 2,491 |
Other | 6,742 | 4,874 | 8,641 |
Total noninterest income | 19,105 | 52,822 | 58,405 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 122,070 | 117,841 | 94,748 |
Occupancy and equipment | 19,351 | 18,744 | 17,263 |
Professional and regulatory fees | 26,166 | 14,142 | 12,945 |
Data processing and software expense | 18,539 | 14,013 | 9,946 |
Marketing | 8,704 | 7,179 | 5,344 |
Amortization of intangibles | 9,838 | 9,979 | 10,057 |
Telephone and communications | 1,551 | 1,484 | 1,434 |
M&A expense | 0 | 1,379 | 826 |
Other | 27,245 | 18,314 | 15,149 |
Total noninterest expense | 233,464 | 203,075 | 167,712 |
Income before income tax expense | 144,284 | 186,634 | 176,306 |
Income tax expense | 36,023 | 40,319 | 36,722 |
NET INCOME | $ 108,261 | $ 146,315 | $ 139,584 |
Basic earnings per share (in dollars per share) | $ 2 | $ 2.75 | $ 2.83 |
Diluted earnings per share (in dollars per share) | $ 1.98 | $ 2.71 | $ 2.77 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET INCOME | $ 108,261 | $ 146,315 | $ 139,584 |
Net unrealized gains (losses) on debt securities AFS: | |||
Change in net unrealized gains (losses) on debt securities AFS during the period, net | 5,752 | (131,005) | (23,596) |
Amortization from transfer of debt securities from AFS to HTM | 3,122 | 3,790 | 0 |
Reclassification adjustment for net losses included in net income | 5,321 | 0 | 188 |
Net unrealized gains (losses) on securities AFS | 14,195 | (127,215) | (23,408) |
Net unrealized (losses) gains on derivative instruments designated as cash flow hedges | (7,744) | (41,499) | 33,338 |
Other comprehensive income (loss), before tax | 6,451 | (168,714) | 9,930 |
Income tax expense (benefit) | 511 | (35,241) | 2,085 |
Other comprehensive income (loss), net of tax | 5,940 | (133,473) | 7,845 |
COMPREHENSIVE INCOME | $ 114,201 | $ 12,842 | $ 147,429 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | APIC | Retained Earnings | AOCI |
Beginning balance (in shares) at Dec. 31, 2020 | 49,337,768 | |||||
Beginning balance at Dec. 31, 2020 | $ 1,203,376 | $ 555 | $ (152,073) | $ 1,126,437 | $ 172,232 | $ 56,225 |
Beginning balance (in shares) at Dec. 31, 2020 | 6,162,350 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
RSUs vested, net of shares withheld to cover taxes (in shares) | 118,454 | |||||
RSUs vested, net of shares withheld to cover taxes | (577) | $ 2 | (579) | |||
Exercise of employee stock options, net (in shares) | 376,851 | |||||
Exercise of employee stock options, net | 6,165 | $ 3 | 6,162 | |||
Stock warrants exercised (in shares) | 15,000 | |||||
Stock warrants exercised | 165 | 165 | ||||
Number of shares repurchased (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 (loss) | 7,845 | 7,845 | ||||
Ending balance (in shares) at Dec. 31, 2021 | 49,372,329 | |||||
Ending balance at Dec. 31, 2021 | 1,315,079 | $ 560 | $ (167,582) | 1,142,758 | 275,273 | 64,070 |
Ending balance (in shares) at Dec. 31, 2021 | 6,638,094 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
RSUs vested, net of shares withheld to cover taxes (in shares) | 259,733 | |||||
RSUs vested, net of shares withheld to cover taxes | (3,363) | $ 3 | (3,366) | |||
Exercise of employee stock options, net (in shares) | 83,419 | |||||
Exercise of employee stock options, net | 1,160 | $ 1 | 1,159 | |||
Common stock follow on offering (in shares) | 4,314,474 | |||||
Common stock follow on offering | 154,415 | $ 43 | 154,372 | |||
Stock based compensation | 11,929 | 11,929 | ||||
Net income | 146,315 | 146,315 | ||||
Dividends paid | (42,289) | (42,289) | ||||
Other comprehensive income (loss) | (133,473) | (133,473) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 54,029,955 | |||||
Ending balance at Dec. 31, 2022 | $ 1,449,773 | $ 607 | $ (167,582) | 1,306,852 | 379,299 | (69,403) |
Ending balance (in shares) at Dec. 31, 2022 | 6,638,094 | 6,638,094 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
RSUs vested, net of shares withheld to cover taxes (in shares) | 246,604 | |||||
RSUs vested, net of shares withheld to cover taxes | $ (2,307) | $ 3 | (2,310) | |||
Exercise of employee stock options, net (in shares) | 61,809 | |||||
Exercise of employee stock options, net | 924 | $ 0 | 924 | |||
Stock based compensation | 12,050 | 12,050 | ||||
Net income | 108,261 | 108,261 | ||||
Dividends paid | (43,318) | (43,318) | ||||
Other comprehensive income (loss) | 5,940 | 5,940 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 54,338,368 | |||||
Ending balance at Dec. 31, 2023 | $ 1,531,323 | $ 610 | $ (167,582) | $ 1,317,516 | $ 444,242 | $ (63,463) |
Ending balance (in shares) at Dec. 31, 2023 | 6,638,094 | 6,638,094 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted stock units | |||
Shares withheld to cover tax withholdings (in shares) | 92,134 | 83,447 | 23,613 |
Employee Stock Option | |||
Shares withheld to cover tax withholdings (in shares) | 121 | 6,904 | 13,015 |
Shares withheld to cover exercise price (in shares) | 9,729 | 28,064 | 71,089 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net income | $ 108,261 | $ 146,315 | $ 139,584 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of fixed assets and intangibles | 19,485 | 18,668 | 15,731 |
Net accretion of time deposit premium, debt discount and debt issuance costs | (134) | 977 | (713) |
Provision (benefit) for credit losses and unfunded commitments | 40,471 | 27,770 | (4,830) |
Accretion of loan discounts | (3,882) | (5,047) | (7,193) |
Stock-based compensation expense | 12,050 | 11,929 | 10,573 |
Deferred tax (benefit) expense | (2,649) | (5,662) | 4,647 |
Excess tax expense (benefit) from stock compensation | 340 | (1,056) | (838) |
Net amortization of premiums on debt securities | 2,135 | 4,708 | 2,885 |
Unrealized (gain) loss on equity securities recognized in earnings | (105) | 1,246 | 325 |
Change in cash surrender value and mortality rates of BOLI | (337) | (1,302) | (339) |
Net loss on sales of debt securities | 5,321 | 0 | 188 |
Change in fair value of government guaranteed loans using fair value option | (4,417) | (1,072) | (1,845) |
Gain on sales of mortgage LHFS | (77) | (550) | (1,592) |
Gain on sales of government guaranteed loans | (15,565) | (12,988) | (6,194) |
Originations of LHFS | (92,375) | (52,991) | (119,989) |
Proceeds from sales of LHFS | 53,410 | 61,130 | 112,606 |
Servicing asset (recoveries) impairment, net | (919) | 1,823 | 71 |
Loss on sales of OREO | 0 | 0 | 416 |
Equity method investment loss (income) | 1,172 | 5,141 | (5,760) |
Impairment on equity method investment | 29,417 | 0 | 0 |
Termination of derivatives designated as hedging instruments | 0 | 0 | 43,900 |
(Increase) decrease in other assets | 44,484 | 55,770 | (11,139) |
Increase in accounts payable and other liabilities | 36,969 | 49,457 | 719 |
Net cash provided by operating activities | 144,087 | 192,726 | 193,491 |
INVESTING ACTIVITIES: | |||
Net cash paid for acquisitions | 0 | 0 | (55,522) |
Purchases of AFS debt securities | (1,377,537) | (452,599) | (201,385) |
Proceeds from sales of AFS debt securities | 109,793 | 0 | 13,300 |
Proceeds from maturities, calls and pay downs of AFS debt securities | 1,295,897 | 103,683 | 193,227 |
Purchases of HTM debt securities | 0 | (17,460) | (32,286) |
Maturity, calls and paydowns on HTM debt securities | 4,004 | 4,487 | 3,370 |
Purchases of equity method securities | 0 | 0 | (54,970) |
Purchases of other investments | (46,317) | 35,393 | 1,436 |
Sales (purchases) of securities under agreements to resell | 0 | 102,288 | (102,288) |
Net loans originated | 215,899 | 2,193,503 | 626,512 |
Proceeds from sale of government guaranteed loans | 91,776 | 93,739 | 44,912 |
Net additions to premises and equipment | (1,854) | (4,620) | (13,575) |
Proceeds from sales of premises and equipment | 0 | 0 | 14,551 |
Proceeds from sales of OREO and repossessed assets | 0 | 0 | 2,225 |
Net cash used in investing activities | (47,503) | (2,399,378) | (816,389) |
FINANCING ACTIVITIES: | |||
Net increase in deposits | 1,216,103 | 1,759,653 | 851,468 |
Proceeds from FHLB advances | 48,817,233 | 35,049,938 | 0 |
Repayments of FHLB advances | (49,892,233) | (34,652,500) | (156) |
Redemption of subordinated debt | 0 | 0 | (35,000) |
Net change in securities sold under agreement to repurchase | 0 | (4,069) | 1,844 |
Net proceeds on sale of common stock in public offering | 0 | 154,415 | 0 |
Proceeds from exercise of employee stock options | 924 | 1,160 | 6,313 |
Payments to tax authorities for stock-based compensation | (2,307) | (3,363) | (725) |
Proceeds from exercise of stock warrants | 0 | 0 | 165 |
Purchase of treasury stock | 0 | 0 | (15,509) |
Dividends paid | (43,318) | (42,289) | (36,543) |
Net cash provided by financing activities | 96,402 | 2,262,945 | 771,857 |
Net increase in cash and cash equivalents | 192,986 | 56,293 | 148,959 |
Cash and cash equivalents at beginning of year | 436,077 | 379,784 | 230,825 |
Cash and cash equivalents at end of year | $ 629,063 | $ 436,077 | $ 379,784 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Organization 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. 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 11 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 TDB and the Board of Governors of the Federal Reserve are the primary regulators of the Company and the Bank, and both regulatory agencies perform periodic examinations to ensure regulatory compliance. The accounting principles followed by the Company and the methods of applying them are in conformity with U.S. GAAP and prevailing practices of the banking industry. Intercompany transactions and balances are eliminated in consolidation. ASC The FASB 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 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. 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. 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, 2023, 2022 and 2021. Transfers of debt securities from AFS to HTM Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. 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, 2023 and 2022. 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. LHFS 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 LHFS are sold with servicing released. Gains and losses on sales of LHFS 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, 2023, the Company had held for sale government guaranteed 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 an increase in fair value for loans the Company elected to carry at fair value of $4,417 for the year ended December 31, 2023 as compared to a decrease in the fair value for loans the Company elected to carry at fair value of $1,072 for the year ended December 31, 2022. There was an increase of $1,845 in fair value for loans using the fair value option for the year ended December 31, 2021. Gain on Sale of Guaranteed Portion of SBA and 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 gain on sale of SBA LHFS and gain on sale of USDA LHFS 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 ungua ranteed portion of the loan retained by the Company. For the years ended December 31, 2023, 2022 and 2021, the Company recognized $15,565, $12,988, and $6,194, respectively, of gain on sales of government guaranteed loans. Gain on Sale of Mortgage LHFS Certain mortgage LHFS are sold with servicing released. Gains and losses on sales of mortgage LHFS are based on the difference between the selling price and the carrying value of the loan sold. 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. 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 LHI 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 DCF method or a loss-rate method to estimate expected credit losses. The Company uses a 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. Modifications to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. 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 TLM. 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 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. 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 consolidated statements of income and the fair value amounts are included in other assets and accounts payable and other liabilities on the Company’s 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 Tra |
SUPPLEMENTAL STATEMENT OF CASH
SUPPLEMENTAL STATEMENT OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL STATEMENT OF CASH FLOWS | SUPPLEMENTAL STATEMENT OF CASH FLOWS Other supplemental cash flow information is presented below: Year Ended December 31, 2023 2022 2021 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 294,539 $ 77,298 $ 37,139 Cash paid for income taxes 53,584 36,165 14,349 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability $ 7,492 $ — $ 6,232 Contingent consideration in connection with acquisitions — — 5,000 Transfer of AFS debt securities to HTM debt securities — 117,001 — Net foreclosure of OREO and repossessed assets — — 334 LHI transferred to LHFS 10,500 — 10,890 Adjustments to Purchase Price Accounting Related to M&A Year Ended December 31, 2023 2022 2021 Noncash assets acquired 1 LHI $ — $ (681) $ 29,338 Intangible assets, net — — 13,913 Goodwill — 681 32,931 Other assets — — 690 Total assets $ — $ — $ 76,872 Noncash liabilities assumed 1 Accounts payable and other liabilities — — 16,350 Total liabilities $ — $ — $ 16,350 Total equity 1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of NAC. |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS ASU 2023-06, “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements. ASU 2023-07, “ Segment Reporting - Improvement to Reportable Segment Disclosure s ” amends the disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 is effective January 1, 2024 and is not expected to have a significant impact on our financial statements. ASU 2023-09, “ Income Taxes - Improvements to Income Tax Disclosures ” enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements. |
SHARE TRANSACTIONS
SHARE TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
SHARE TRANSACTIONS | SHARE TRANSACTIONS The Company's Board 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 the expiration date of December 31, 2022. The shares were repurchased in the open market or in privately negotiated transactions from time to time, depending upon market conditions and other factors, and in accordance with applicable regulations of the SEC. The Stock Buyback Program does not obligate the Company to purchase any shares. The Stock Buyback Program may have been terminated or amended by the Board at any time prior to its expiration. The Company did not repurchase any shares during the year ended December 31, 2023 or 2022. In August 2022, the IRA was enacted. Among other things, the IRA imposed a new 1% excise tax on the fair market value of stock repurchased after December 31, 2022 by publicly traded U.S. corporations. With certain exceptions, the value of stock repurchased is determined net of stock issued in the year, including pursuant to compensatory arrangements. Common Stock Offering On March 8, 2022, the Company completed an underwritten public offering of 3,947,369 shares of its common stock at $38.00 per share. On March 10, 2022, the representatives of the underwriters delivered to the Company a written notice of exercise by the underwriters of the underwriters' option to purchase an additional 367,105 shares of the Company's common stock at $38.00 per share, which subsequently closed on March 14, 2022. Net proceeds, after deducting underwriting discounts and offering expenses, of such offering were approximately $154,372 . The Company intends to use the net proceeds from the offering for general corporate purposes and to support its continued growth, including investments in the Bank and future strategic acquisitions. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
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 $9,897 and $9,792 at December 31, 2023 and 2022, respectively. No gains or losses on equity securities with a readily determinable fair value were realized during the year ended December 31, 2023, 2022 or 2021. The gross unrealized gain (loss) 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: 2023 2022 2021 Unrealized gain (loss) recognized on equity securities with a readily determinable fair value $ 105 $ (1,246) $ (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 $11,624 and $10,072 at December 31, 2023 and 2022, respectively. Securities purchased under agreements to resell The Company held no securities purchased under agreements to resell as of December 31, 2023 and 2022. During the twelve months ended December 31, 2023, there was no interest income recorded in equity securities and other investments in the Company’s consolidated statements of income. During the twelve months ended December 31, 2022, interest income recorded in equity securities and other investments in the Company's consolidated statements of income was $1,386. Interest income of securities purchased under agreements to resell typically mature 30 days from the settlement date, qualify as a secured borrowing and are measured at amortized cost. 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, 2023 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 244,652 $ 1,034 $ 29,566 $ — $ 216,120 Municipal securities 46,631 108 3,258 — 43,481 Mortgage-backed securities 194,486 4,430 13,465 — 185,451 Collateralized mortgage obligations 563,421 4,634 46,999 — 521,056 Asset-backed securities 47,738 1,045 2,130 — 46,653 Collateralized loan obligations 64,250 — 372 — 63,878 $ 1,161,178 $ 11,251 $ 95,790 $ — $ 1,076,639 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value HTM Mortgage-backed securities $ 33,716 $ — $ 6,037 $ — $ 27,679 Collateralized mortgage obligations 34,483 — 4,567 — 29,916 Municipal securities 112,204 86 9,864 — 102,426 $ 180,403 $ 86 $ 20,468 $ — $ 160,021 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 268,179 $ 1,445 $ 17,379 $ — $ 252,245 Municipal securities 49,886 3 4,198 — 45,691 Mortgage-backed securities 156,408 23 17,420 — 139,011 Collateralized mortgage obligations 609,456 — 55,850 — 553,606 Asset-backed securities 42,015 289 2,613 — 39,691 Collateralized loan obligations 69,750 — 3,702 — 66,048 $ 1,195,694 $ 1,760 $ 101,162 $ — $ 1,096,292 Gross Gross Amortized Unrealized Unrealized HTM Cost Gains Losses ACL Fair Value Mortgage-backed securities $ 36,342 $ — $ 6,753 $ — $ 29,589 Collateralized mortgage obligations 36,169 — 5,884 — 30,285 Municipal securities 113,657 6 14,756 — 98,907 $ 186,168 $ 6 $ 27,393 $ — $ 158,781 The Company did not transfer any debt securities from AFS to HTM at fair value during the year ended December 31, 2023. For the year ended December 31, 2022, the Company elected to transfer 25 AFS debt securities with an aggregate fair value of $117,001 to a classification of HTM debt securities on January 1, 2022. In accordance with FASB ASC 320-10-35-10, the transfer from AFS to HTM must be recorded at the fair value of the AFS debt securities at the time of transfer. The net unrealized holding gain retained in AOCI for securities transferred from AFS to HTM was $3,122 and $3,790 at December 31, 2023 and December 31, 2022, respectively. The following tables disclose the Company’s 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, 2023 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 34,989 $ 5,970 $ 162,148 $ 23,596 $ 197,137 $ 29,566 Municipal securities 6,792 45 22,052 3,213 28,844 3,258 Mortgage-backed securities — — 104,486 13,465 104,486 13,465 Collateralized mortgage obligations — — 419,044 46,999 419,044 46,999 Asset-backed securities 9,011 1,559 8,847 571 17,858 2,130 Collateralized loan obligations — — 63,878 372 63,878 372 $ 50,792 $ 7,574 $ 780,455 $ 88,216 $ 831,247 $ 95,790 HTM Mortgage-backed securities $ — $ — $ 27,679 $ 6,037 $ 27,679 $ 6,037 Collateralized mortgage obligations — — 29,916 4,567 29,916 4,567 Municipal securities 7,845 270 79,713 9,594 87,558 9,864 $ 7,845 $ 270 $ 137,308 $ 20,198 $ 145,153 $ 20,468 December 31, 2022 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 197,946 $ 15,697 $ 15,568 $ 1,682 $ 213,514 $ 17,379 Municipal securities 33,919 848 8,813 3,350 42,732 4,198 Mortgage-backed securities 115,467 11,104 22,780 6,317 138,247 17,421 Collateralized mortgage obligations 482,358 42,553 71,198 13,296 553,556 55,849 Asset-backed securities 15,195 991 11,207 1,621 26,402 2,612 Collateralized loan obligations 23,673 1,328 42,375 2,375 66,048 3,703 $ 868,558 $ 72,521 $ 171,941 $ 28,641 $ 1,040,499 $ 101,162 HTM Mortgage-backed securities $ 804 $ 85 $ 28,784 $ 6,668 $ 29,588 $ 6,753 Collateralized mortgage obligations 25,285 4,676 4,999 1,208 30,284 5,884 Municipal securities 85,671 11,411 9,161 3,345 94,832 14,756 $ 111,760 $ 16,172 $ 42,944 $ 11,221 $ 154,704 $ 27,393 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 142 and 175 at December 31, 2023 and December 31, 2022, 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, 2023, 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 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, 2023 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 2,018 $ 1,906 $ — $ — Due from one year to five years 46,645 46,682 4,445 4,448 Due from five years to ten years 188,526 163,397 12,806 12,628 Due after ten years 54,094 47,616 94,953 85,350 291,283 259,601 112,204 102,426 Mortgage-backed securities and collateralized mortgage obligations 757,907 706,507 68,199 57,595 Asset-backed securities 47,738 46,653 — — Collateralized loan obligations 64,250 63,878 — — $ 1,161,178 $ 1,076,639 $ 180,403 $ 160,021 December 31, 2022 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 53,692 $ 54,179 $ — $ — Due from five years to ten years 205,911 190,406 8,275 8,129 Due after ten years 58,462 53,351 105,382 90,778 318,065 297,936 113,657 98,907 Mortgage-backed securities and collateralized mortgage obligations 765,864 692,617 72,511 59,874 Asset-backed securities 42,015 39,691 — — Collateralized loan obligations 69,750 66,048 — — $ 1,195,694 $ 1,096,292 $ 186,168 $ 158,781 Proceeds from sales of debt securities AFS and gross realized gains and losses for the years ended December 31, 2023, 2022 and 2021 were as follows: December 31, 2023 2022 2021 Proceeds from sales $ 109,793 $ — $ 13,300 Gross realized gains — — — Gross realized losses 5,321 — 188 As of December 31, 2023 and December 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of stockholders' equity. As further explained in Note 11, Advances from the FHLB, there was a blanket floating lien on all debt securities to secure FHLB advances as of December 31, 2023 and December 31, 2022. |
LHI AND ACL
LHI AND ACL | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
LHI AND ACL | LHI AND ACL LHI in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 LHI, carried at amortized cost: Real estate: Construction and land $ 1,734,254 $ 1,787,400 Farmland 31,114 43,500 1 - 4 family residential 937,119 894,456 Multi-family residential 605,817 322,679 OOCRE 794,088 715,829 NOOCRE 2,350,725 2,341,379 Commercial 2,752,063 2,942,348 MW 377,796 446,227 Consumer 10,149 7,806 9,593,125 9,501,624 Deferred loan fees, net (8,785) (18,973) ACL (109,816) (91,052) Total LHI, net $ 9,474,524 $ 9,391,599 Included in the total LHI, net, as of December 31, 2023 and 2022 was an accretable discount related to purchased performing and PCD loans acquired in the approximate amounts of $5,334 and $8,260, 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, 2023 and 2022 is a discount on retained loans from sale of originated SBA and USDA loans of $7,629 and $5,238, respectively. During the year ended December 31, 2022, the Company purchased $223,924 in pooled residential real estate loans at a net discount, with a remaining balance of $162,632 as of December 31, 2023. The remaining net purchase discount of $3,231 and $4,135 related to these 1-4 family residential loans purchased is included in the total LHI, net as of December 31, 2023 and December 31, 2022, respectively. No additional pooled residential real estate loans were purchased during the twelve months ended December 31, 2023. 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 TLM. The activity in the ACL related to LHI is as follows: December 31, 2023 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW Consumer Total Balance at beginning of year $ 13,120 $ 127 $ 9,533 $ 2,607 $ 8,707 $ 26,704 $ 30,142 $ — $ 112 $ 91,052 Credit loss (benefit) expense non-PCD loans 7,958 (26) 26 2,467 2,352 13,706 15,458 260 159 42,360 Credit (benefit) loss expense PCD loans (46) — (2) — 48 618 (466) — — 152 Charge-offs — — (21) (192) (855) (13,649) (10,413) — (236) (25,366) Recoveries — — 3 — — 350 1,165 — 100 1,618 Ending Balance $ 21,032 $ 101 $ 9,539 $ 4,882 $ 10,252 $ 27,729 $ 35,886 $ 260 $ 135 $ 109,816 December 31, 2022 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW Consumer Total Balance at beginning of year $ 7,293 $ 187 $ 5,982 $ 2,664 $ 9,215 $ 30,548 $ 21,632 $ — $ 233 $ 77,754 Credit loss (benefit) expense non-PCD loans 5,855 (60) 3,757 (57) 4,633 (2,588) 18,933 — 2,355 32,828 Credit loss (expense) benefit PCD loans (28) — (237) — (2,766) 429 (2,000) — (1,276) (5,878) Charge-offs — — — — (2,646) (2,410) (9,731) — (1,285) (16,072) Recoveries — — 31 — 271 725 1,308 — 85 2,420 Ending Balance $ 13,120 $ 127 $ 9,533 $ 2,607 $ 8,707 $ 26,704 $ 30,142 $ — $ 112 $ 91,052 December 31, 2021 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW 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 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, 2023 and 2022. 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, 2023 and 2022 : December 31, 2023 December 31, 2022 Real Property ACL Allocation Real Property ACL Allocation OOCRE $ 3,059 $ 47 $ 1,193 $ 129 NOOCRE 21,169 — 20,896 2,138 Commercial 20,711 3,339 1,240 396 Consumer — — 15 — Total $ 44,939 $ 3,386 $ 23,344 $ 2,663 Nonaccrual loans, aggregated by class of loans, as of December 31, 2023 and 2022, were as follows: December 31, December 31, Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Construction and land $ 6,793 $ 6,793 $ — $ — 1 - 4 family residential 1,965 1,965 862 862 OOCRE 9,719 9,493 9,737 8,545 NOOCRE 33,479 33,479 21,377 13,178 Commercial 40,868 10,610 11,397 2,521 Consumer 24 24 169 169 Total $ 92,848 $ 62,364 $ 43,542 $ 25,275 There was $13,715 and $13,178 of PCD loans that are accounted for on a pooled basis included in nonaccrual loans at December 31, 2023 and 2022, respectively. During the year ended December 31, 2023 and 2022, interest income not recognized on non-accrual loans was $6,470 and $6,567, respectively. An age analysis of past due loans, aggregated by class of loans, as of December 31, 2023 and 2022 is as follows: December 31, 2023 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due (1) Total Current PCD Total Total 90 Days Past Due and Still Accruing (2) Construction and land $ 29,379 $ — $ 6,793 $ 36,172 $ 1,698,082 $ — $ 1,734,254 $ — Farmland — — — — 31,114 — 31,114 — 1 - 4 family residential 4,359 2,535 3,691 10,585 925,404 1,130 937,119 1,726 Multi-family residential 15,095 — — 15,095 590,722 — 605,817 — OOCRE 916 114 10,185 11,215 764,703 18,170 794,088 466 NOOCRE 3,182 642 20,547 24,371 2,312,270 14,084 2,350,725 783 Commercial 3,485 1,394 8,446 13,325 2,735,830 2,908 2,752,063 — MW — — — — 377,796 — 377,796 — Consumer 76 — — 76 10,060 13 10,149 — $ 56,492 $ 4,685 $ 49,662 $ 110,839 $ 9,445,981 $ 36,305 $ 9,593,125 $ 2,975 (1) Total past due loans includes $13,715 of pooled PCD loans as of December 31, 2023. (2) Loans 90 days past due and still accruing excludes $676 of PCD loans of as of December 31, 2023. December 31, 2022 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due (1) Total Current PCD Total Total 90 Days Past Due and Still Accruing (2) Construction and land $ 1,121 $ 2,111 $ — $ 3,232 $ 1,782,624 $ 1,544 $ 1,787,400 $ — Farmland — — — — 43,500 — 43,500 — 1 - 4 family residential 4,319 129 499 4,947 888,329 1,180 894,456 123 Multi-family residential 1,000 — — 1,000 321,679 — 322,679 — OOCRE 3,342 1,186 1,193 5,721 690,291 19,817 715,829 — NOOCRE 5,156 — 20,896 26,052 2,302,579 12,748 2,341,379 — Commercial 3,088 2,188 1,675 6,951 2,931,696 3,701 2,942,348 — MW — — — — 446,227 — 446,227 — Consumer 352 — 45 397 7,386 23 7,806 2 $ 18,378 $ 5,614 $ 24,308 $ 48,300 $ 9,414,311 $ 39,013 $ 9,501,624 $ 125 (1) Total past due loans includes $13,178 of pooled PCD loans as of December 31, 2022. (2) Loans 90 days past due and still accruing excludes $2,004 of pooled PCD loans as of December 31, 2022. Loans 90 days past due and still accruing interest 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. Modifications to Borrowers Experiencing Financial Difficulty The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the twelve months ended December 31, 2023: Loan Modifications Made to Borrowers Experiencing Financial Difficulty Interest Rate Reduction Amortized Cost Basis % of Loan Class Financial Impact 1-4 Family Residential Rentals 1 $ 41,066 4.4 % Reduced weighted-average contractual interest rate from floating 7.5% to fixed 6.0% 1 1-4 Family Residential Rentals is included in the 1-4 family residential loan portfolio and is reported as such in accordance with Federal Financial Institutions Examination Council guidelines. Term Extension Amortized Cost Basis % of Loan Class Financial Impact NOOCRE $ 23,624 1.0 % Principal and interest deferred over three months Commercial 24,733 0.9 % Principal and interest deferred over three months $ 48,357 No modifications to borrowers in financial difficulty had a payment default during the period and were modified in the 12 months before default to borrowers experiencing financial difficulty. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the performance of loans that have been modified in the last 12 months: Payment Status Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due 1-4 Family Residential Rentals $ 41,066 $ — $ — $ — NOOCRE 23,624 — — — Commercial 23,346 — — 1,387 Total $ 88,036 $ — $ — $ 1,387 The Company has no t committed to lend additional amounts to customers with outstanding loans classified as Troubled Loan Modifications as of December 31, 2023 or December 31, 2022. 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 re-underwritten 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 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, Construction and land: Pass $ 116,333 $ 740,244 $ 538,946 $ 109,017 $ 3,089 $ 3,661 $ 181,940 $ — $ 1,693,230 Special mention 593 13,782 4,980 3,439 — 8,760 2,677 — 34,231 Substandard — 6,547 — 246 — — — — 6,793 Total construction and land $ 116,926 $ 760,573 $ 543,926 $ 112,702 $ 3,089 $ 12,421 $ 184,617 $ — $ 1,734,254 Construction and land gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland: Pass $ 2,531 $ 4,398 $ — $ 17,999 $ 15 $ 4,944 $ 1,227 $ — $ 31,114 Total farmland $ 2,531 $ 4,398 $ — $ 17,999 $ 15 $ 4,944 $ 1,227 $ — $ 31,114 Farmland gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1 - 4 family residential: Pass $ 73,289 $ 140,824 $ 193,914 $ 79,767 $ 38,589 $ 270,193 $ 114,275 $ 17,255 $ 928,106 Special mention 3,732 531 — — — 238 — — 4,501 Substandard — 144 902 — 106 1,701 529 — 3,382 PCD — — — — — 1,130 — — 1,130 Total 1-4 family residential $ 77,021 $ 141,499 $ 194,816 $ 79,767 $ 38,695 $ 273,262 $ 114,804 $ 17,255 $ 937,119 1-4 Family gross charge-offs $ — $ — $ — $ — $ 21 $ — $ — $ — $ 21 Multi-family residential: Pass $ 9,441 $ 82,040 $ 257,714 $ 196,575 $ 8,054 $ 14,570 $ 10,627 $ — $ 579,021 Special mention — — — — — 11,701 — — 11,701 Substandard — — — — — 15,095 — — 15,095 Total multi-family residential $ 9,441 $ 82,040 $ 257,714 $ 196,575 $ 8,054 $ 41,366 $ 10,627 $ — $ 605,817 Multifamily gross charge-offs $ — $ — $ — $ — $ 192 $ — $ — $ — $ 192 OOCRE: Pass $ 129,463 $ 178,777 $ 113,207 $ 90,219 $ 39,876 $ 166,270 $ 4,618 $ — $ 722,430 Special mention 5,481 — 2,479 1,019 1,961 14,775 210 — 25,925 Substandard — 9,357 2,131 3,644 736 11,695 — — 27,563 PCD — — — — — 18,170 — — 18,170 Total OOCRE $ 134,944 $ 188,134 $ 117,817 $ 94,882 $ 42,573 $ 210,910 $ 4,828 $ — $ 794,088 OOCRE gross charge-offs $ — $ — $ — $ 369 $ 5 $ 481 $ — $ — $ 855 NOOCRE: Pass $ 33,525 $ 724,110 $ 500,354 $ 247,385 $ 148,046 $ 381,559 $ 30,524 $ 577 $ 2,066,080 Special mention — 5,950 25,985 26,175 68,616 55,805 — — 182,531 Substandard — 3,858 2,774 364 2,620 78,414 — — 88,030 PCD — — — — — 14,084 — — 14,084 Total NOOCRE $ 33,525 $ 733,918 $ 529,113 $ 273,924 $ 219,282 $ 529,862 $ 30,524 $ 577 $ 2,350,725 NOOCRE gross charge-offs $ — $ — $ — $ — $ — $ 13,649 $ — $ — $ 13,649 Commercial: Pass $ 314,939 $ 384,713 $ 86,757 $ 38,554 $ 43,535 $ 45,812 $ 1,725,663 $ 1,044 $ 2,641,017 Special mention 4,584 13,583 12,794 541 — 10,144 9,392 35 51,073 Substandard 640 16,974 3,978 545 3,767 15,843 15,244 74 57,065 PCD — — — — — 2,908 — — 2,908 Total commercial $ 320,163 $ 415,270 $ 103,529 $ 39,640 $ 47,302 $ 74,707 $ 1,750,299 $ 1,153 $ 2,752,063 Commercial gross charge-offs $ — $ 2,158 $ — $ 2,572 $ 1,083 $ 4,600 $ — $ — $ 10,413 MW: Pass $ 1,905 $ — $ — $ — $ — $ — $ 375,891 $ — $ 377,796 Total MW $ 1,905 $ — $ — $ — $ — $ — $ 375,891 $ — $ 377,796 MW gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 4,552 $ 1,045 $ 276 $ 604 $ 89 $ 1,678 $ 1,728 $ — $ 9,972 Special mention — — — — — 85 — — 85 Substandard — — 4 — 12 63 — — 79 PCD — — — — — 13 — — 13 Total consumer $ 4,552 $ 1,045 $ 280 $ 604 $ 101 $ 1,839 $ 1,728 $ — $ 10,149 Consumers gross charge-offs $ — $ 29 $ 2 $ — $ — $ 205 $ — $ — $ 236 Total Pass $ 685,978 $ 2,256,151 $ 1,691,168 $ 780,120 $ 281,293 $ 888,687 $ 2,446,493 $ 18,876 $ 9,048,766 Total Special Mention 14,390 33,846 46,238 31,174 70,577 101,508 12,279 35 310,047 Total Substandard 640 36,880 9,789 4,799 7,241 122,811 15,773 74 198,007 Total PCD — — — — — 36,305 — — 36,305 Total $ 701,008 $ 2,326,877 $ 1,747,195 $ 816,093 $ 359,111 $ 1,149,311 $ 2,474,545 $ 18,985 $ 9,593,125 Total gross charge-offs $ — $ 2,187 $ 2 $ 2,941 $ 1,301 $ 18,935 $ — $ — $ 25,366 Term loans amortized cost basis by origination year excludes $8,785 of deferred loan fees, net. Term Loans Amortized Cost Basis by Origination Year 1 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, Construction and land: Pass $ 347,855 $ 709,208 $ 378,229 $ 69,241 $ 30,673 $ 14,025 $ 215,263 $ 140 $ 1,764,634 Special mention — 18,662 2,560 — — — — — 21,222 PCD — — — — — 1,544 — — 1,544 Total construction and land $ 347,855 $ 727,870 $ 380,789 $ 69,241 $ 30,673 $ 15,569 $ 215,263 $ 140 $ 1,787,400 Farmland: Pass $ 2,546 $ 16,242 $ 18,530 $ 21 $ — $ 5,069 $ 1,092 $ — $ 43,500 Total farmland $ 2,546 $ 16,242 $ 18,530 $ 21 $ — $ 5,069 $ 1,092 $ — $ 43,500 1 - 4 family residential: Pass $ 135,006 $ 188,635 $ 87,861 $ 43,293 $ 41,960 $ 257,768 $ 86,900 $ 726 $ 842,149 Special mention — — — — — 278 26,068 — 26,346 Substandard — 184 — — 1,028 23,569 — 24,781 PCD — — — — — 1,180 — — 1,180 Total 1 - 4 family residential $ 135,006 $ 188,819 $ 87,861 $ 43,293 $ 41,960 $ 260,254 $ 136,537 $ 726 $ 894,456 Multi-family residential: Pass $ 72,044 $ 80,793 $ 110,426 $ 8,402 $ 32,822 $ 2,494 $ — $ — $ 306,981 Substandard — — — 1,954 13,744 — — — 15,698 Total multi-family residential $ 72,044 $ 80,793 $ 110,426 $ 10,356 $ 46,566 $ 2,494 $ — $ — $ 322,679 OOCRE: Pass $ 191,044 $ 106,698 $ 84,230 $ 43,965 $ 49,461 $ 167,968 $ 5,225 $ — $ 648,591 Special mention — 2,321 1,409 1,964 — 3,447 — 45 9,186 Substandard — — — — 23,231 15,004 — — 38,235 PCD — — — — — 19,817 — — 19,817 Total OOCRE $ 191,044 $ 109,019 $ 85,639 $ 45,929 $ 72,692 $ 206,236 $ 5,225 $ 45 $ 715,829 NOOCRE: Pass $ 752,476 $ 531,735 $ 215,076 $ 149,246 $ 196,424 $ 305,434 $ 16,642 $ 465 $ 2,167,498 Special mention — — 22,774 19,464 12,274 51,451 — — 105,963 Substandard — 0 — 0 — 0 1,310 7,659 46,201 — — 55,170 PCD — — — — 12,697 51 — — 12,748 Total NOOCRE $ 752,476 $ 531,735 $ 237,850 $ 170,020 $ 229,054 $ 403,137 $ 16,642 $ 465 $ 2,341,379 Commercial: Pass $ 473,084 $ 132,396 $ 90,543 $ 83,996 $ 40,030 $ 31,269 $ 1,906,074 $ 553 $ 2,757,945 Special mention — 666 — 4,543 7,385 270 114,447 — 127,311 Substandard 17,894 4,058 5,189 4,195 10,954 4,732 6,292 77 53,391 PCD — — — — 273 3,428 — — 3,701 Total commercial $ 490,978 $ 137,120 $ 95,732 $ 92,734 $ 58,642 $ 39,699 $ 2,026,813 $ 630 $ 2,942,348 MW: Pass $ — $ — $ — $ — $ — $ — $ 444,393 $ — $ 444,393 Special mention — — — — — — 1,626 — 1,626 Substandard — — — — 46 162 — — 208 Total MW $ — $ — $ — $ — $ 46 $ 162 $ 446,019 $ — $ 446,227 Consumer: Pass $ 1,965 $ 452 $ 872 $ 216 $ 135 $ 2,298 $ 1,618 $ — $ 7,556 Special mention — — — — — 58 — — 58 Substandard — — — — — 169 — — 169 PCD — — — — — 23 — — 23 Total consumer $ 1,965 $ 452 $ 872 $ 216 $ 135 $ 2,548 $ 1,618 $ — $ 7,806 Total Pass $ 1,976,020 $ 1,766,159 $ 985,767 $ 398,380 $ 391,505 $ 786,325 $ 2,677,207 $ 1,884 $ 8,983,247 Total Special Mention — 21,649 26,743 25,971 19,659 55,504 142,141 45 291,712 Total Substandard 17,894 4,242 5,189 7,459 55,634 67,296 29,861 77 187,652 Total PCD — — — — 12,970 26,043 — — 39,013 Total $ 1,993,914 $ 1,792,050 $ 1,017,699 $ 431,810 $ 479,768 $ 935,168 $ 2,849,209 $ 2,006 $ 9,501,624 1 Term loans amortized cost basis by origination year excludes $18,973 of deferred loan fees, net. Servicing Assets The Company was servicing loans of approximately $579,698 and $543,220 as of December 31, 2023 and 2022, respectively. A summary of the changes in the related servicing assets are as follows: Year Ended December 31, 2023 2022 Balance at beginning of year $ 14,880 $ 17,705 Increase from loan sales 2,170 2,670 Servicing asset impairment, net of recoveries 919 (1,823) Amortization charged as a reduction to income (4,711) (3,672) Balance at year-end $ 13,258 $ 14,880 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, 2023 and 2022 there was a valuation allowance of $1,532 and $2,451, 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, 2023 and 2022 . The following table reflects principal sold and related gain for SBA and USDA LHFI. The gain on sale of these loans is recorded in gain on sale of SBA LHFS and gain on sale of USDA LHFS in the Company's consolidated statements of income. Year Ended December 31, 2023 2022 2021 SBA LHFI principal sold $ 16,608 $ 9,491 $ 40,001 Gain on sale of SBA LHFI 1,291 848 4,911 USDA LHFI principal sold 64,080 72,670 — Gain on sale of USDA LHFI 9,797 10,731 — LHFS The following table reflects LHFS. December 31, 2023 December 31, 2022 SBA/USDA construction and land $ 41,492 $ 12,296 1 - 4 family residential 788 866 SBA/USDA OOCRE 16,758 5,915 NOOCRE 10,500 — SBA/USDA commercial 9,534 1,564 Total LHFS $ 79,072 $ 20,641 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 Building and improvements $ 55,911 $ 56,517 Site improvements 2,845 2,903 Tenant improvements 779 779 Leasehold improvements 8,432 7,497 Land 37,368 38,709 Furniture, fixtures and equipment 29,437 27,417 Construction in progress 2,348 1,579 137,120 135,401 Less accumulated depreciation and amortization 31,393 26,577 $ 105,727 $ 108,824 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
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 respectively, and is recorded in other assets accounts payable and accrued expenses The table below summarizes the Company’s net lease cost: For the Year Ended December 31, 2023 2022 Operating lease cost $ 5,432 $ 5,161 Variable lease cost 989 640 Net lease cost $ 6,421 $ 5,801 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,130 $ 4,781 Weighted-average remaining lease term - operating leases, in years 6.2 years 5.4 years Weighted-average discount rate - operating leases 3.26 % 2.88 % 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, 2023 Lease payments due: Within one year $ 5,299 After one but within two years 4,610 After two but within three years 3,287 After three but within four years 2,175 After four but within five years 1,978 After five years 5,759 Total undiscounted cash flows 23,108 Less: Discount on cash flows (2,603) Total lease liability $ 20,505 There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the years ended December 31, 2023 and 2022. As of December 31, 2023, the Company did not have any leases that had not yet commenced, but will create significant rights and obligations for the Company. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Changes in the carrying amount of goodwill in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 Balance at beginning of year $ 404,452 $ 403,771 NAC acquisition 1 — 681 Balance at end of year $ 404,452 $ 404,452 1 During the first quarter of 2022, the purchased accounting adjustments for NAC were finalized resulting in an increase in goodwill during 2022. Intangible assets in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 3.0 years $ 81,769 $ — $ 53,274 $ 28,495 Servicing asset 7.2 years 26,930 1,532 12,140 13,258 Intangible lease assets 0.0 years 4,779 — 4,779 — $ 113,478 $ 1,532 $ 70,193 $ 41,753 December 31, 2022 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 4.0 years $ 81,769 $ — $ 43,523 $ 38,246 Servicing asset 7.4 years 24,760 2,451 7,429 14,880 Intangible lease assets 0.3 years 4,779 — 4,692 87 $ 111,308 $ 2,451 $ 55,644 $ 53,213 For the years ended December 31, 2023, 2022 and 2021, amortization expense related to intangible assets of approximately $14,549, $13,650 and $10,888 , 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, 2023 and 2022, a valuation allowance related to intangible assets was $1,532 and $2,451, respectively. The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2023 was as follows: Year Amount 2024 $ 11,595 2025 11,259 2026 10,640 2027 2,377 2028 1,844 Thereafter 4,038 $ 41,753 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
DEPOSITS | DEPOSITS Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 Noninterest-bearing demand accounts $ 2,218,036 $ 2,640,617 Interest-bearing demand accounts 927,193 622,814 Savings accounts 136,868 118,293 Limited access money market accounts 3,864,361 3,654,868 Certificates of deposit, greater than $250 1,312,744 853,659 Certificates of deposit, less than $250 1,878,993 1,232,983 Total $ 10,338,195 $ 9,123,234 As of December 31, 2023, the scheduled maturities of certificates of deposit were as follows: Year Amount 2024 $ 2,854,476 2025 322,311 2026 7,532 2027 3,638 2028 3,780 Total $ 3,191,737 The aggregate amount of demand deposit overdrafts that have been reclassified as loans were $243 and $395 as of December 31, 2023 and 2022, respectively. Brokered deposits at December 31, 2023 and 2022 totaled approximately $2,031,413 and $1,307,996, respectively. |
ADVANCES FROM FHLB
ADVANCES FROM FHLB | 12 Months Ended |
Dec. 31, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
ADVANCES FROM FHLB | ADVANCES FROM FHLB Advances from the FHLB totaled $100,000 and $1,175,000 at December 31, 2023 and 2022, respectively. As of December 31, 2023, the advances were collateralized by a blanket floating lien on certain debt securities and loans, had a weighted average rate of 5.54% and maturity dates of 2024. The Company had the availability to borrow additional funds of approximately $2,191,608 as of December 31, 2023. Contractual maturities of FHLB advances at December 31, 2023 were as follows: 2024 $ 100,000 Total $ 100,000 |
OTHER CREDIT EXTENSIONS
OTHER CREDIT EXTENSIONS | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
OTHER CREDIT EXTENSIONS | OTHER CREDIT EXTENSIONS As of December 31, 2023 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 $125,000. As of December 31, 2022, 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, 2023 and 2022. The FHLB allows us to borrow on a blanket floating lien status collateralized by certain securities and loans. As of December 31, 2023 and 2022, total available borrowing capacity of $2,191,608 and $787,324, respectively, was available under this arrangement with outstanding balances of $100,000 and $1,175,000, respectively, and a weighted average interest rate of 4.70% and 1.73% fo r the year ended December 31, 2023 and 2022, respectively . The FHLB has also issued standby letters of credit to the Company for $1,377,257 and $1,029,508 as of December 31, 2023 and 2022 , respectively. Our current FHLB advances mature within 0.5 years. Other than FHLB borrowings, we had no other short-term borrowings a t the dates indicated. |
SUBORDINATED DEBENTURES AND SUB
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES | SUBORDINATED DEBENTURES AND SUBORDINATED NOTES Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2023 2022 Junior subordinated debentures (1) $ 30,908 $ 30,686 Subordinated notes (2) 198,875 198,089 $ 229,783 $ 228,775 (1) Junior subordinated debentures are net of a discount of $2,960 and $3,182 as of December 31, 2023 and 2022, respectively. (2) Subordinated notes include debt issuance costs of $1,125 and $1,911 as of December 31, 2023 and 2022, respectively. Junior Subordinated Debentures In connection with a previous acquisition, the Company assumed $3,093 in fixed to floating rate junior subordinated debentures underlying common securities and preferred capital securities (the “Parkway Trust Securities”), issued by Parkway National Capital Trust I (“Parkway Trust”), a statutory business trust and acquired wholly owned subsidiary of the Company. The Company became a guarantor and, as such, unconditionally guaranteed payment of accrued and unpaid distributions required to be paid on the Parkway Trust Securities subject to certain exceptions, the redemption price when a capital security is called for redemption and amounts due if Parkway Trust is liquidated or terminated. The Company owns all of the outstanding common securities of the Parkway Trust. The Parkway Trust used the proceeds from the issuance of the Parkway Trust Securities to buy the debentures originally issued by Fidelity Resource Company. These debentures are the Parkway Trust’s only assets and the interest payments from the debentures finance the distributions paid on the Parkway Trust Securities. The Parkway Trust Securities pay cumulative cash distributions quarterly at a rate per annum equal to the 3-month SOFR 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, 2023 and 2022 was 7.50% and 6.62%, 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 SOFR plus 4.00%. Principal payments are due at maturity in July 2038. The effective rate as of December 31, 2023 and 2022 was 9.66% and 7.74%. 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 SOFR plus 1.85%. Principal payments are due at maturity in April 2036. The effective rate as of December 31, 2023 and 2022 was 7.51% and 5.93%. 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 SOFR plus 1.80%. Principal payments are due at maturity in September 2037. The effective rate as of December 31, 2023 and 2022 was 7.45% and 6.57%. 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 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, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The provision for income taxes is summarized as follows: Year Ended December 31, 2023 2022 2021 Income tax expense (benefit): Current $ 38,672 $ 45,981 $ 32,075 Deferred (2,649) (5,662) 4,647 Total income tax expense $ 36,023 $ 40,319 $ 36,722 The table below reconciles income tax expense for the years ended December 31, 2023, 2022 and 2021 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, 2023 2022 2021 Federal income tax expense rate at 21% for December 31, 2023, 2022 and 2021 $ 30,300 $ 39,193 $ 37,024 Bank-owned life insurance (663) (448) (852) Non-deductible transaction costs — — 78 Tax exempt interest income (899) (579) (545) Deferred tax true up 4 54 24 162(m) Disallowance 512 1,183 504 State taxes, net of federal benefit 1,510 1,769 1,039 Excess benefit on share-based compensation 340 (1,056) (838) Valuation allowance on Thrive impairment 4,249 — — Other 670 203 288 Total income tax expense $ 36,023 $ 40,319 $ 36,722 Effective tax rate 25.0 % 21.6 % 20.8 % 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, 2023 2022 Deferred tax assets: ACL $ 25,449 $ 21,647 Equity compensation 4,669 4,286 Purchase premium/loan discounts 984 1,546 Lease liability 4,428 3,708 Net unrealized loss on debt securities AFS 16,870 17,204 Purchased securities 1,836 2,520 Investment in Thrive 5,156 — Other 5,567 9,219 Total gross deferred tax assets $ 64,959 $ 60,130 Valuation allowance on Thrive impairment (4,249) — Total net deferred tax assets $ 60,710 $ 60,130 Deferred tax liabilities: Intangibles 8,089 9,340 Bank premises and equipment 5,326 6,163 ROU asset 4,169 3,587 Other 2,885 3,214 Total deferred tax liabilities 20,469 22,304 Net deferred tax asset $ 40,241 $ 37,826 Included within other assets in the Company's consolidated balance sheet as of December 31, 2023 is a current tax receivable of $19,131 and included within other assets is a net deferred tax asset of $40,241. Included within other assets in the Company's consolidated balance sheets as of December 31, 2022 is a current tax receivable of $1,741 and included in other assets is a net deferred tax asset of $37,826. Additionally, included within accounts payable and accrued expenses in the Company's consolidated balance sheets as of December 31, 2023 and December 31, 2022 is a $34 and a $573 current state tax payable, respectively. At December 31, 2023, we determined it was more likely than not that a portion of our deferred tax assets would not be realized in their entirety. Thus, the Company recorded a $4,249 valuation allowance in continuing operations relating to the impairment on our investment in Thrive as of December 31, 2023. The deferred tax asset is not realizable due to the capital loss that will not be recognized. There was no valuation allowance in the comparable period in 2022. The following table provides a rollforward of the Company's gross federal and state unrecognized tax benefits for the years ending December 31, 2023, 2022 and 2021. December 31 2023 2022 2021 Unrecognized tax benefits at the beginning of the year: $ 293 $ 503 $ 549 Gross increases, related to tax positions taken in a prior period 278 — — Gross decreases, related to tax positions taken in a prior period — (44) (101) Gross increases, related to tax positions taken in current period 133 75 55 Settlement with taxing authority — (241) — Expiration of statute of limitations (25) — — Unrecognized tax benefits at the end of the year $ 679 $ 293 $ 503 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
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 11 "Advances from the FHLB", Note 13 "Borrowed Funds" and Note 17 "Off-Balance Sheet Loan Commitments" for further discussion on commitments. |
FAIR VALUE DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended |
Dec. 31, 2023 | |
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. LHFS: 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, customer 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, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2023 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,076,639 $ — $ 1,076,639 Equity securities with a readily determinable fair value 9,897 — — 9,897 LHFS (1) — 67,784 — 67,784 Interest rate swaps designated as hedging instruments — 18,814 — 18,814 Correspondent interest rate swaps not designated as hedging instruments — 28,007 — 28,007 Customer interest rate swaps not designated as hedging instruments — 2,118 — 2,118 Correspondent interest rate caps and collars not designated as hedging instruments — 1,344 — 1,344 Financial Liabilities: Interest rate swaps designated as hedging instruments $ — $ 47,121 $ — $ 47,121 Correspondent interest rate swaps not designated as hedging instruments — 2,322 — 2,322 Customer interest rate swaps not designated as hedging instruments — 27,288 — 27,288 Customer interest rate caps and collars not designated as hedging instruments — 1,344 — 1,344 (1) Represents LHFS elected to be carried at fair value upon origination or acquisition. December 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,096,292 $ — $ 1,096,292 Equity securities with a readily determinable fair value 9,792 — — 9,792 LHFS (1) — 19,775 — 19,775 Interest rate swaps designated as hedging instruments — 26,523 — 26,523 Correspondent interest rate swaps not designated as hedging instruments — 38,839 — 38,839 Customer interest rate swaps not designated as hedging instruments — 1,004 — 1,004 Correspondent interest rate caps and collars not designated as hedging instruments — 1,494 — 1,494 Financial Liabilities: Interest rate swaps designated as hedging instruments — 54,171 — 54,171 Correspondent interest rate swaps not designated as hedging instruments — 1,126 — 1,126 Customer interest rate swaps not designated as hedging instruments — 38,188 — 38,188 Customer interest rate caps and collars not designated as hedging instruments — 1,494 — 1,494 (1) Represents LHFS 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, 2023 and 2022. 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, 2023 and 2022, 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, 2023 Assets: Collateral dependent loans with an ACL $ — $ — $ 14,274 $ 14,274 Servicing assets with a valuation allowance — — 6,682 6,682 As of December 31, 2022 Assets: Collateral dependent loans with an ACL $ — $ — $ 7,969 $ 7,969 Servicing assets with a valuation allowance — — 10,984 10,984 At December 31, 2023, collateral dependent loans with an ACL had a recorded investment of $17,660, with $3,386 specific allowance for credit loss allocated. At December 31, 2022, collateral dependent loans with an ACL had a recorded investment of $10,632, with $2,663 specific allowance for credit loss allocated. At December 31, 2023, servicing assets of $8,214 had a valuation allowance totaling $1,532. At December 31, 2022, servicing assets of $13,435 had a valuation allowance totaling $2,451. There were no liabilities measured at fair value on a non-recurring basis as of December 31, 2023 and 2022. 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). LHFS: LHFS, 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. 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. Accrued interest receivable: The carrying amounts of accrued interest approximate their fair values due to short-term maturity. BOLI: 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, 2023 and 2022. 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. 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, 2023 and 2022 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2023 Financial assets: Cash and cash equivalents $ 629,063 $ — $ 629,063 $ — HTM debt securities 180,403 — 160,021 — LHFS (1) 11,288 — 11,288 — LHI (2) 9,577,180 — — 9,322,744 Accrued interest receivable 53,313 — 53,313 — BOLI 84,833 — 84,833 — Servicing asset 6,576 — 6,576 — Equity securities without a readily determinable fair value 11,624 N/A N/A N/A FHLB and FRB stock 53,699 N/A N/A N/A Financial liabilities: Deposits $ 10,338,195 $ — $ 9,779,849 $ — Advances from FHLB 100,000 — 141,999 — Accrued interest payable 41,948 — 41,948 — Subordinated debentures and subordinated notes 229,783 — 229,783 — December 31, 2022 Financial assets: Cash and cash equivalents $ 436,077 $ — $ 436,077 $ — HTM debt securities 186,168 — 158,781 — LHFS (1) 866 — 866 — LHI (2) 9,399,614 — — 9,163,616 Accrued interest receivable 44,035 — 44,035 — BOLI 84,496 — 84,496 — Servicing asset 3,896 — 3,896 — Equity securities without readily determinable fair value 10,072 N/A N/A N/A FHLB and FRB stock 101,568 N/A N/A N/A Financial liabilities: Deposits $ 9,123,234 $ — $ 8,341,419 $ — Advances from FHLB 1,175,000 — 1,156,852 — Accrued interest payable 8,795 — 8,795 — Subordinated debentures and subordinated notes 228,775 — 228,775 — (1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS 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, 2023 | |
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, 2023 and 2022: December 31, 2023 2022 Commitments to extend credit $ 3,083,501 $ 4,511,671 MW commitments 803,704 1,088,558 Standby and commercial letters of credit 111,590 98,179 $ 3,998,795 $ 5,698,408 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, 2023 2022 Beginning balance for ACL on unfunded commitments $ 10,086 $ 9,266 (Benefit) provision for credit losses on unfunded commitments (2,041) 820 Ending balance of ACL on unfunded commitments $ 8,045 $ 10,086 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and December 31, 2022 were as shown in the table below. December 31, 2023 December 31, 2022 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 money market deposit account payments $ 250,000 $ 12,208 $ — $ 250,000 $ 21,234 $ — Interest rate swaps on fixed rate advances/brokered CDs 200,000 — 4,296 — — — Interest rate swaps on customer loan interest payments 375,000 — 40,055 375,000 — 49,211 Interest rate collars on customer loan interest payments 450,000 2,304 2,770 450,000 3,267 4,960 Interest rate floor on customer loan interest payments 200,000 4,302 — 100,000 2,022 — Total derivatives designated as hedging instruments $ 1,475,000 $ 18,814 $ 47,121 $ 1,175,000 $ 26,523 $ 54,171 Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps $ 893,702 $ 28,007 $ 2,322 $ 805,311 $ 38,839 $ 1,126 Interest rate caps and collars 285,370 1,344 — 68,370 1,494 — Commercial customer counterparty: Interest rate swaps 893,702 2,118 27,288 805,311 1,004 38,188 Interest rate caps and collars 285,370 — 1,344 68,370 — 1,494 Total derivatives not designated as hedging instruments $ 2,358,144 $ 31,469 $ 30,954 $ 1,747,362 $ 41,337 $ 40,808 Offsetting derivative assets/liabilities — (29,463) (29,463) — (30,982) (30,982) Total derivatives $ 3,833,144 $ 20,820 $ 48,612 $ 2,922,362 $ 36,878 $ 63,997 Pre-tax gain (loss) included in the Company's consolidated statements of income and related to derivative instruments for the years ended December 31, 2023 and 2022 was as follows: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Net (loss) gain 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 (loss) gain 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 $ (4,386) $ 4,386 Interest Expense $ (3,569) $ 3,569 Interest Expense Interest rate swaps on money market deposit account and funding source payments (13,322) 11,798 Interest Expense 16,693 3,208 Interest Expense Interest rate swaps, collars and floor on customer loan interest payments 9,964 (19,196) Interest Income (54,623) (1,757) Total $ (7,744) $ (3,012) $ (41,499) $ 5,020 Net Gain recognized in other noninterest income Net Gain recognized in other noninterest income Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ 1,633 $ 7,217 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 November 2023, the Company entered into an interest rate swap for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the USD-SOFR-OIS Compound rate on variable rate forecasted funding from November 2023 through October 2026. In October 2023, the Company entered into an interest rate swap for a notional amount of $100,000 to hedge for the variability of cash flows, currently the benchmark of USD-SOFR-OIS Compound rate due to the rollover of its quarterly fixed-rate FHLB, brokered CDs, or other fixed rate advances every quarter from November 2023 through October 2026. In February 2023, the Company entered into an interest rate floor for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate on a pool of customer floating rate loans from February 2023 through February 2027. In October 2022, the Company entered into an interest rate floor for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate on a pool of customer floating rate loans from November 2022 through October 2025. The Company also entered into an interest rate collar for a notional amount of $100,000 to hedge for changes in cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate on a separate pool of customer floating rate loans from November 2022 through October 2026. In August 2022, the Company entered into an interest rate collar for a notional amount of $350,000 to hedge for changes in its cash flows attributable to changes in the contractually specified interest rate, currently the 1M SOFR CME rate of its customer floating rate loan portfolio from August 2022 through August 2025. In March 2021, the Company entered into three fixed receive/pay variable interest rate swaps, each with a notional amount of $125,000, to hedge the variability of cash flow payments attributable to changes in interest rates in regards to forecasted of three-month attributable to changes in interest rates in regards to forecasted money market account borrowings from March 2021 through March 2028 and March 2021 through March 2031. 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. The interest rate swap was terminated on February 24, 2021. The pre-tax gain of $43,900, resulting from the termination of the interest rate swap, will remain in other comprehensive income (loss) and will be accreted over a 10 year period starting in March 2022 unless forecasted transactions become probable of not occurring. The gain accreted into income during the twelve months ended December 31, 2023 was $4,386. 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, 2023 and December 31, 2022. December 31, 2023 Notional Amount Fixed Rate Floating Rate Maturity (Wtd. Avg.) Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 893,702 2.4% - 7.4% LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0%- 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 4.1 years $ (25,170) Interest rate caps and collars $ 285,370 3.5% - 7.5% SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0% 0.8 years $ (1,344) Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 893,702 2.4% - 7.4% LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0%- 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 4.1 years $ 25,685 Interest rate caps and collars $ 285,370 3.5% - 7.5% SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0% 0.8 years $ 1,344 December 31, 2022 Notional Amount Fixed Rate Floating Rate Maturity (Wtd. Avg.) Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 805,311 2.4% - 8.5% LIBOR 1 month + 2.8% - 5.0% 1 SOFR CME 1 month + 0.0% - 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 5.1 years $ (37,183) Interest rate caps and collars $ 68,370 3.5% LIBOR 1 month + 0.0% 1.8 years $ (1,494) Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 805,311 2.4% - 8.5% LIBOR 1 month + 2.8% - 5.0% 1 SOFR CME 1 month + 0.0% - 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 5.1 years $ 37,713 Interest rate caps and collars $ 68,370 3.5% LIBOR 1 month + 0.0% 1.8 years $ 1,494 1 The derivative utilizing LIBOR 1 month as of December 31, 2023 is utilizing the allowable fallback provision. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Defined Contribution Plan |
STOCK AND INCENTIVE PLANS
STOCK AND INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021, 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, 2023, 2022 and 2021, there was no stock compensation expense related to the 2010 Incentive Plan. A summary of the status of options granted under the 2010 Incentive Plan at December 31, 2023, 2022 and 2021 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, 2020 20,000 $ 10.09 1.06 years Exercised (19,000) 10.00 Outstanding at December 31, 2021 1,000 $ 10.43 1.07 years Exercised — — Outstanding at December 31, 2022 1,000 $ 10.43 1.07 years Exercised (1,000) 10.43 Outstanding and exercisable at December 31, 2023 — $ — 0.00 years $ — As of December 31, 2023, 2022, and 2021 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, 2023, 2022 and 2021 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2023 2022 2021 Nonperformance-based stock options exercised $ 16 $ — $ 568 2022 Amended Plan and Green Acquired Omnibus Plans At the Company’s 2022 annual meeting of shareholders, the Company sought approval from its shareholders to authorize the amendment and restatement of the 2019 Amended and Restated Omnibus Incentive Plan (now referred to as the “2022 Equity Plan”) to, among other things, increase the aggregate number of shares that are available for grant thereunder, (the “Shareholder Approval”). Other terms amended in the 2022 Equity Plan included adding a one-year minimum vesting requirement on equity awards and clarifying certain provisions with respect to (i) the Compensation Committee’s authority and responsibilities in the administration of the 2022 Equity Plan, (ii) prohibitions against (x) dividend payments and voting rights with respect to any unvested awards, (y) the repricing of stock options and SARs, and (z) transfers of awards, and (iii) the definitions of termination of service, disability, and retirement. The Compensation Committee of the Board approved the amendment and restatement of the 2022 Equity Plan in May 2022 and Shareholder Approval was received in May 2022. 2023 Grants of Restricted Stock Units In the year ended December 31, 2023, the Company granted RSUs and PSUs under the 2022 Equity Plan. The majority of the RSUs granted to employees during the year ended December 31, 2023 with annual graded vesting over a three year period from the grant date. The PSUs granted in February 2023 are subject to a service, performance and market conditions. The performance and market condition determine the number of awards to vest. The service period is from February 1, 2023 to January 31, 2026, the performance conditions performance period is from January 1, 2023 to December 31, 2025 and the market condition performance period is from February 1, 2023 to January 31, 2026. 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 2022 Equity Plan and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (the “Veritex (Green) 2014 Plan”) was as follows: Year ended December 31, 2023 2022 2022 Equity Plan $ 10,200 $ 11,109 Veritex (Green) 2014 Plan 1,850 820 2022 Equity Plan A summary of the status of the Company’s stock options under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the years then ended, is as follows: 2022 Equity Plan Nonperformance-based stock options Equity Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2020 975,801 $ 24.26 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 Granted 1,500 $ 31.26 Exercised (54,049) 23.51 Outstanding at December 31, 2022 657,494 $ 24.47 5.58 years Forfeited (1,666) 17.38 Canceled (35,970) 28.95 Exercised (17,285) 18.29 Outstanding at December 31, 2023 602,573 $ 24.40 4.84 years $ 779,874 Options exercisable at December 31, 2023 591,573 $ 24.45 4.84 years $ 760,974 Weighted average fair value of options granted during the period $ — As of December 31, 2023, 2022 and 2021 there was no, $172 and $803 of total unrecognized compensation expense related to stock options awarded under the 2022 Equity Plan, respectively. A summary of the status of the Company’s RSUs under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the year then ended is as follows: 2022 Equity Plan RSUs Equity Awards Units Weighted 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 Granted 546,405 33.79 Vested into shares (175,159) 27.88 Forfeited (14,193) 33.18 Outstanding at December 31, 2022 955,104 $ 28.38 Granted 293,086 27.17 Vested into shares (269,144) 29.68 Forfeited (30,533) 32.23 Outstanding at December 31, 2023 948,513 $ 27.52 A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the years then ended is as follows: 2022 Equity Plan PSUs Equity Awards Units Weighted Outstanding at December 31, 2020 100,195 $ 23.20 Granted 56,276 25.94 Outstanding at December 31, 2021 156,471 $ 24.17 Granted 39,429 40.38 Incremental PSUs granted upon performance conditions met 34,194 23.90 Vested into shares (103,387) Outstanding at December 31, 2022 126,707 $ 31.19 Granted 53,310 27.55 Vested into shares (41,781) 26.42 Forfeited (8,468) 30.90 Outstanding at December 31, 2023 129,768 $ 30.28 As of December 31, 2023, 2022, and 2021 there was $14,692, $17,160 and $10,413 of total unrecognized compensation expense related to RSUs and PSUs awarded under the 2022 Equity Plan, respectively. The unrecognized compensation expense at December 31, 2023 is expected to be recognized over the remaining weighted average requisite service period of 1.84 years. A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021 is presented below: Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31, 2023 2022 2021 Nonperformance-based stock options exercised $ 66 $ 792 $ 9,214 RSUs vested 3,924 6,356 2,781 PSUs vested 1,070 4,040 — 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, 2023, 2022 and 2021 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 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 Exercised (62,592) 19.59 Outstanding at December 31, 2022 155,212 $ 19.83 5.20 years Cancelled (9,717) 21.38 Exercised (20,996) 20.95 Outstanding at December 31, 2023 124,499 $ 22.00 3.70 years $ 616 Options exercisable at December 31, 2023 124,499 $ 22.00 3.70 years $ 616 As of December 31, 2023 and 2022 there was no unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. As of December 31, 2021 there was $100 of total unrecognized compensation expense related to options awarded under the Veritex (Green) 2014 Plan. A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2023, 2022 and 2021 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan RSUs Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 156,187 $ 22.64 Granted 5,692 26.12 Vested into shares (33,335) 21.38 Forfeited (5,760) 23.62 Outstanding at December 31, 2021 122,784 $ 21.13 Granted 4,231 40.38 Vested into shares (32,931) 21.80 Forfeited (7,851) 29.13 Outstanding at December 31, 2022 86,233 $ 21.09 Vested into shares (19,282) 29.66 Forfeited (2,232) 29.13 Outstanding at December 31, 2023 64,719 $ 18.26 A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2023, 2022 and 2021 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan PSUs Units Weighted Average Grant Date Fair Value 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 Granted 4,411 40.38 Incremental PSUs granted upon performance condition met 10,566 19.69 Vested into shares (31,703) 21.38 Outstanding at December 31, 2022 19,173 $ 30.74 Vested into shares (8,531) 25.94 Outstanding at December 31, 2023 10,642 $ 31.93 As of December 31, 2023, 2022 and 2021, there was $1,781, $3,825 and $1,252, 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 0.85 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, 2023, 2022 and 2021 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2023 2022 2021 Non-performance-based stock options exercised $ 71 $ 1,157 $ 4,599 RSUs vested 2,384 1,312 713 PSUs vested 227 1,261 — 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, 2023, 2022 and 2021 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, 2020 131,083 $ 11.60 Forfeited (2,198) Exercised (62,742) 10.51 Outstanding at December 31, 2021 66,143 $ 12.56 Canceled (21,235) 11 Exercised (1,746) 13.20 Outstanding at December 31, 2022 43,162 $ 13.11 Exercised (32,378) 13.26 Outstanding and exercisable at December 31, 2023 10,784 $ 12.65 4.06 years $ 115 A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2023, 2022, and 2021 is presented below: Fair Value of Options Exercised in the year ended December 31, 2023 2022 2021 Non-performance-based stock options exercised $ 379 $ 47 $ 1,838 |
SIGNIFICANT CONCENTRATIONS OF C
SIGNIFICANT CONCENTRATIONS OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2023 | |
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. The contractual amounts of credit related financial instruments such as commitments to extend credit, MW commitments, credit card arrangements, and letters of credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer default, and the value of any existing collateral become worthless. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
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 $30,132 and $35,005 as of December 31, 2023 and 2022, respectively. During the year ended December 31, 2023, new advances of approximately $6,648 were made to related parties with approximately $11,521 principal payments received. During the year ended December 31, 2022, new advances of approximately $33,624 were made to related parties with approximately $11,270 principal payments received. There were $9,062 and $7,895 in unfunded commitments to related parties as of December 31, 2023 and 2022, respectively. At December 31, 2023, 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, 2023 and 2022 totaled ap proxim ately $349,567 and $275,807, respectively. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | 12 Months Ended |
Dec. 31, 2023 | |
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 RBC, 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 CET1 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 RBC ratios, and a banking organization with any RBC 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 CET1, Tier 1, and total capital ratios and Tier 1 leverage ratios as set forth in the table below. As of December 31, 2023 and December 31, 2022, 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, 2023 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 was delayed through the year 2021, with the effects 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 ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to RWA) Company $ 1,500,703 13.18 % $ 910,897 8.0 % n/a n/a Bank 1,467,960 12.90 910,363 8.0 $ 1,137,953 10.0 % Tier 1 capital (to RWA) Company 1,202,252 10.56 683,098 6.0 n/a n/a Bank 1,368,384 12.03 682,486 6.0 909,981 8.0 CET1 (to RWA) Company 1,172,362 10.29 512,695 4.5 n/a n/a Bank 1,368,384 12.03 511,864 4.5 739,360 6.5 Tier 1 capital (to average assets) Company 1,202,252 10.03 479,462 4.0 n/a n/a Bank 1,368,384 11.43 478,875 4.0 598,593 5.0 As of December 31, 2022 Total capital (to RWA) Company $ 1,395,904 11.63 % $ 960,209 8.0 % n/a n/a Bank 1,368,082 11.41 959,216 8.0 $ 1,199,020 10.0 % Tier 1 capital (to RWA) Company 1,121,021 9.34 720,142 6.0 n/a n/a Bank 1,291,288 10.77 719,381 6.0 959,174 8.0 CET1 (to RWA) Company 1,091,353 9.09 540,274 4.5 n/a n/a Bank 1,291,288 10.77 539,535 4.5 779,329 6.5 Tier 1 capital (to average assets) Company 1,121,021 9.82 456,628 4.0 n/a n/a Bank 1,291,288 11.32 456,286 4.0 570,357 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 $60,000 and $35,000 were paid by the Bank to the Holdco during the years ended December 31, 2023 and 2022, respectively. Dividends of $43,318, or $0.20 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2023. Dividends of $42,289, or $0.20 per outstanding share on the applicable record date, were paid by the Company during the year ended December 31, 2022. 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 4.90% as of December 31, 2023. |
PARENT COMPANY ONLY FINANCIAL S
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Assets Cash and cash equivalents $ 25,728 $ 18,278 Investment in subsidiaries 1,728,364 1,650,727 Other assets 17,088 13,043 Total assets $ 1,771,180 $ 1,682,048 Liabilities and Stockholders’ Equity Other liabilities $ 10,074 $ 3,500 Other borrowings 229,783 228,775 Total liabilities 239,857 232,275 Stockholders’ equity Common stock $ 610 $ 607 Additional paid-in capital 1,317,516 1,306,852 Retained earnings 444,242 379,299 Accumulated other comprehensive income (63,463) (69,403) Treasury stock (167,582) (167,582) Total stockholders’ equity 1,531,323 1,449,773 Total liabilities and stockholders’ equity $ 1,771,180 $ 1,682,048 Statements of Income Year Ended December 31, 2023 2022 2021 Cash dividends from subsidiary $ 60,000 $ 35,000 $ 8,440 Excess of earnings over dividend from subsidiary 59,647 121,350 142,289 Other 79 43 43 119,726 156,393 150,772 Interest on borrowings 12,352 11,156 12,426 Salaries and employee benefits 770 685 668 Other 1,364 891 1,057 14,486 12,732 14,151 Earnings before income tax benefit 105,240 143,661 136,621 Income tax benefit (3,021) (2,654) (2,963) Net income $ 108,261 $ 146,315 $ 139,584 Statements of Cash Flows Year Ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 108,261 $ 146,315 $ 139,584 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount and debt issuance costs, net 786 790 817 Equity in undistributed net income of Bank (59,647) (121,350) (142,289) (Increase) decrease in other assets (5,552) (7,801) 902 Decrease (increase) in other liabilities 8,303 504 (3,177) Net cash provided by (used in) operating activities 52,151 18,458 (4,163) Cash flows from investing activities: Advances to subsidiaries — (154,610) — Net cash used in investing activities — (154,610) — Cash flows from financing activities: Net proceeds from sale of common stock in public offering — 154,415 — Proceeds from exercise of stock warrants — — 165 Redemption of subordinated debt — — (35,000) Proceeds from exercise of employee stock options 924 1,160 6,313 Payments to tax authorities for stock-based compensation (2,307) (3,363) (725) Repurchase of treasury stock — — (15,509) Dividends paid (43,318) (42,289) (36,543) Net cash (used in) provided by financing activities (44,701) 109,923 (81,299) Net increase (decrease) in cash and cash equivalents 7,450 (26,229) (85,462) Cash and cash equivalents at beginning of year 18,278 44,507 129,969 Cash and cash equivalents at end of year $ 25,728 $ 18,278 $ 44,507 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
NET INCOME | $ 108,261 | $ 146,315 | $ 139,584 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounting Standards Codification ("ASC") | ASC The FASB 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 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 Certain items in the Company's prior year financial statements were reclassified to conform to the current presentation. |
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 | 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. |
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. |
Transfers of debt securities from AFS to HTM | Transfers of debt securities from AFS to HTM Transfers of debt securities into the HTM category from the AFS category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in other comprehensive income and in the carrying value of the HTM securities. Such amounts are amortized over the remaining life of the security. |
Equity Securities | Equity Securities |
ACL | 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 . 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 LHI 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 DCF method or a loss-rate method to estimate expected credit losses. The Company uses a 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. Modifications to Borrowers Experiencing Financial Difficulty The Company adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326) Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) effective January 1, 2023. The amendments in ASU 2022-02 eliminated the recognition and measure of troubled debt restructurings and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. 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 TLM. 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. |
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. |
LHFS | LHFS 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 LHFS are sold with servicing released. Gains and losses on sales of LHFS are based on the difference between the selling price and the carrying value of the related loan sold. |
Fair Value Option | Fair Value Option |
Gain on Sale of Loans | Gain on Sale of Guaranteed Portion of SBA and 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 gain on sale of SBA LHFS and gain on sale of USDA LHFS 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 ungua ranteed portion of the loan retained by the Company. For the years ended December 31, 2023, 2022 and 2021, the Company recognized $15,565, $12,988, and $6,194, respectively, of gain on sales of government guaranteed loans. Gain on Sale of Mortgage LHFS Certain mortgage LHFS are sold with servicing released. Gains and losses on sales of mortgage LHFS are based on the difference between the selling price and the carrying value of the loan sold. |
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. |
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 consolidated statements of income and the fair value amounts are included in other assets and accounts payable and other liabilities on the Company’s 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 LHFS 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 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. On July 16, 2021, the Bank acquired a 49% interest in Thrive for $54,914 in cash and obtained the right to designate a member to Thrive’s board of directors. As a result of the investment, the Company has a $35,816 basis difference which is being accounted for as equity method goodwill. 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. The Company recorded an impairment of $29.4 million on our equity method investment in Thrive related to Thrive’s entry into a definitive agreement in December 2023 to be acquired by Lower and the negative impact of rising rates on the fair value and volume of loans originated by Thrive. |
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, 2023, 2022 and 2021. |
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. |
BOLI | BOLI The Company has purchased life insurance policies on certain employees. These 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. During the second quarter of 2023, the Company observed a sustained decline in the market valuation of the Company’s common stock as a result of significant volatility in the banking industry with multiple high-profile bank failures and industry wide concerns related to liquidity, deposit outflows, unrealized securities losses and eroding consumer confidence in the banking system. As a result, the Company performed an interim quantitative impairment test with a trigger date of May 31, 2023. The Company determined the fair value of its reporting unit using a combination of a market and an income approach. Upon completion of the quantitative evaluation, the Company determined that the fair value of the Company's reporting unit exceeded its related carrying value, and therefore goodwill was not impaired. During the third quarter of 2023, the Company evaluated current conditions and concluded there have been no significant changes in the economic environment or projections, and no decline in fair value during the quarter. The Company performed its annual goodwill impairment test as of October 31, 2023 using a quantitative 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. All in-place lease intangibles were fully amortized in 2023. 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 Expense |
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 tax effect of unrealized gains and losses on available-for-sale debt securities and derivative instruments designated as hedges is recorded to other comprehensive income and is not a component of income tax expense/(benefit). GAAP does not permit the adjustment of tax amounts in AOCI for changes in tax rates; as a result the effects become “stranded” in AOCI. Stranded tax effects caused by the revaluation of deferred taxes are reclassified from AOCI to retained earnings in accordance with ASU 2018-02 “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” 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, 2023 and 2022, 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 $103, $22 and $126 of interest or penalties related to income tax for the years ended December 31, 2023, 2022 and 2021, 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 2020 and state income tax examinations for tax years prior to 2019 . |
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 Customers | 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. |
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. Gains and losses on AFS debt securities are reclassified to net income as the gains or losses are realized upon sale of the securities. For securities transferred from AFS to the HTM classification, the remaining pre-tax gains and losses will be amortized over the remaining life of the securities, as an adjustment of yield on the transferred securities. For cash flow hedges, gains and losses on the derivative(s) are recorded in accumulated other comprehensive income and subsequently reclassified into interest income in the same period that the hedged transaction affects earnings. Comprehensive income is reported in the accompanying consolidated statements of comprehensive income. |
Earnings Per Share ("EPS") | Earnings Per Share ("EPS") |
New Accounting Pronouncement | NEW ACCOUNTING PRONOUNCEMENTS ASU 2023-06, “Disclosure Improvements - Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative” amends the ASC to incorporate certain disclosure requirements from SEC Release No. 33-10532 - Disclosure Update and Simplification that was issued in 2018. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, with early adoption prohibited. ASU 2023-06 is not expected to have a significant impact on our financial statements. ASU 2023-07, “ Segment Reporting - Improvement to Reportable Segment Disclosure s ” amends the disclosure requirements related to segment reporting primarily through enhanced disclosure about significant segment expenses and by requiring disclosure of segment information on an annual and interim basis. ASU 2023-07 is effective January 1, 2024 and is not expected to have a significant impact on our financial statements. ASU 2023-09, “ Income Taxes - Improvements to Income Tax Disclosures ” enhances the transparency and decision usefulness of income tax disclosures. ASU 2023-09 will require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. Entities will also be required to disclose income/(loss) from continuing operations before income tax expense/(benefit) disaggregated between domestic and foreign, as well as income tax expense/(benefit) from continuing operations disaggregated by federal, state and foreign. ASU 2023-09 is effective January 1, 2025 and is not expected to have a significant impact on our financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Estimated Lives of the Respective Assets | Buildings and improvements, furniture and equipment are carried at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the respective assets as follows: Buildings and improvements 10 - 40 years Site improvements 15 years Tenant improvements Lease term Leasehold improvements Lease term Furniture and equipment 3 - 10 years |
Schedule of Intangible Assets | Intangible assets are initially recognized based on a valuation performed as of the acquisition date and are amortized on a straight-line basis over their estimated useful lives of the respective intangible assets as follows. All in-place lease intangibles were fully amortized in 2023. 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, 2023 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 3.0 years $ 81,769 $ — $ 53,274 $ 28,495 Servicing asset 7.2 years 26,930 1,532 12,140 13,258 Intangible lease assets 0.0 years 4,779 — 4,779 — $ 113,478 $ 1,532 $ 70,193 $ 41,753 December 31, 2022 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 4.0 years $ 81,769 $ — $ 43,523 $ 38,246 Servicing asset 7.4 years 24,760 2,451 7,429 14,880 Intangible lease assets 0.3 years 4,779 — 4,692 87 $ 111,308 $ 2,451 $ 55,644 $ 53,213 |
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, 2023, 2022 and 2021. Year Ended December 31, 2023 2022 2021 Earnings (numerator) Net income $ 108,261 $ 146,315 $ 139,584 Shares (denominator) Weighted average shares outstanding for basic EPS (thousands) 54,256 53,170 49,405 Dilutive effect of employee stock-based awards 340 782 947 Adjusted weighted average shares outstanding $ 54,596 $ 53,952 $ 50,352 EPS: Basic $ 2.00 $ 2.75 $ 2.83 Diluted $ 1.98 $ 2.71 $ 2.77 |
SUPPLEMENTAL STATEMENT OF CAS_2
SUPPLEMENTAL STATEMENT OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Year Ended December 31, 2023 2022 2021 Supplemental Disclosures of Cash Flow Information: Cash paid for interest $ 294,539 $ 77,298 $ 37,139 Cash paid for income taxes 53,584 36,165 14,349 Supplemental Disclosures of Non-Cash Flow Information: Setup of ROU asset and lease liability $ 7,492 $ — $ 6,232 Contingent consideration in connection with acquisitions — — 5,000 Transfer of AFS debt securities to HTM debt securities — 117,001 — Net foreclosure of OREO and repossessed assets — — 334 LHI transferred to LHFS 10,500 — 10,890 |
Schedule of Supplemental Noncash Investing Activities | Adjustments to Purchase Price Accounting Related to M&A Year Ended December 31, 2023 2022 2021 Noncash assets acquired 1 LHI $ — $ (681) $ 29,338 Intangible assets, net — — 13,913 Goodwill — 681 32,931 Other assets — — 690 Total assets $ — $ — $ 76,872 Noncash liabilities assumed 1 Accounts payable and other liabilities — — 16,350 Total liabilities $ — $ — $ 16,350 Total equity 1 Noncash assets acquired and noncash liabilities assumed during 2021 related to our acquisition of NAC. |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Gross Unrealized Gain Recognized on Equity Securities | The gross unrealized gain (loss) 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: 2023 2022 2021 Unrealized gain (loss) recognized on equity securities with a readily determinable fair value $ 105 $ (1,246) $ (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, 2023 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 244,652 $ 1,034 $ 29,566 $ — $ 216,120 Municipal securities 46,631 108 3,258 — 43,481 Mortgage-backed securities 194,486 4,430 13,465 — 185,451 Collateralized mortgage obligations 563,421 4,634 46,999 — 521,056 Asset-backed securities 47,738 1,045 2,130 — 46,653 Collateralized loan obligations 64,250 — 372 — 63,878 $ 1,161,178 $ 11,251 $ 95,790 $ — $ 1,076,639 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value HTM Mortgage-backed securities $ 33,716 $ — $ 6,037 $ — $ 27,679 Collateralized mortgage obligations 34,483 — 4,567 — 29,916 Municipal securities 112,204 86 9,864 — 102,426 $ 180,403 $ 86 $ 20,468 $ — $ 160,021 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses ACL Fair Value AFS Corporate bonds $ 268,179 $ 1,445 $ 17,379 $ — $ 252,245 Municipal securities 49,886 3 4,198 — 45,691 Mortgage-backed securities 156,408 23 17,420 — 139,011 Collateralized mortgage obligations 609,456 — 55,850 — 553,606 Asset-backed securities 42,015 289 2,613 — 39,691 Collateralized loan obligations 69,750 — 3,702 — 66,048 $ 1,195,694 $ 1,760 $ 101,162 $ — $ 1,096,292 Gross Gross Amortized Unrealized Unrealized HTM Cost Gains Losses ACL Fair Value Mortgage-backed securities $ 36,342 $ — $ 6,753 $ — $ 29,589 Collateralized mortgage obligations 36,169 — 5,884 — 30,285 Municipal securities 113,657 6 14,756 — 98,907 $ 186,168 $ 6 $ 27,393 $ — $ 158,781 |
Schedule of Investment Securities That Have Been in a Continuous Unrealized Loss Position | The following tables disclose the Company’s 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, 2023 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 34,989 $ 5,970 $ 162,148 $ 23,596 $ 197,137 $ 29,566 Municipal securities 6,792 45 22,052 3,213 28,844 3,258 Mortgage-backed securities — — 104,486 13,465 104,486 13,465 Collateralized mortgage obligations — — 419,044 46,999 419,044 46,999 Asset-backed securities 9,011 1,559 8,847 571 17,858 2,130 Collateralized loan obligations — — 63,878 372 63,878 372 $ 50,792 $ 7,574 $ 780,455 $ 88,216 $ 831,247 $ 95,790 HTM Mortgage-backed securities $ — $ — $ 27,679 $ 6,037 $ 27,679 $ 6,037 Collateralized mortgage obligations — — 29,916 4,567 29,916 4,567 Municipal securities 7,845 270 79,713 9,594 87,558 9,864 $ 7,845 $ 270 $ 137,308 $ 20,198 $ 145,153 $ 20,468 December 31, 2022 Less Than 12 Months 12 Months or More Totals Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss AFS Corporate bonds $ 197,946 $ 15,697 $ 15,568 $ 1,682 $ 213,514 $ 17,379 Municipal securities 33,919 848 8,813 3,350 42,732 4,198 Mortgage-backed securities 115,467 11,104 22,780 6,317 138,247 17,421 Collateralized mortgage obligations 482,358 42,553 71,198 13,296 553,556 55,849 Asset-backed securities 15,195 991 11,207 1,621 26,402 2,612 Collateralized loan obligations 23,673 1,328 42,375 2,375 66,048 3,703 $ 868,558 $ 72,521 $ 171,941 $ 28,641 $ 1,040,499 $ 101,162 HTM Mortgage-backed securities $ 804 $ 85 $ 28,784 $ 6,668 $ 29,588 $ 6,753 Collateralized mortgage obligations 25,285 4,676 4,999 1,208 30,284 5,884 Municipal securities 85,671 11,411 9,161 3,345 94,832 14,756 $ 111,760 $ 16,172 $ 42,944 $ 11,221 $ 154,704 $ 27,393 |
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, 2023 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due in one year or less $ 2,018 $ 1,906 $ — $ — Due from one year to five years 46,645 46,682 4,445 4,448 Due from five years to ten years 188,526 163,397 12,806 12,628 Due after ten years 54,094 47,616 94,953 85,350 291,283 259,601 112,204 102,426 Mortgage-backed securities and collateralized mortgage obligations 757,907 706,507 68,199 57,595 Asset-backed securities 47,738 46,653 — — Collateralized loan obligations 64,250 63,878 — — $ 1,161,178 $ 1,076,639 $ 180,403 $ 160,021 December 31, 2022 AFS HTM Amortized Fair Amortized Fair Cost Value Cost Value Due from one year to five years $ 53,692 $ 54,179 $ — $ — Due from five years to ten years 205,911 190,406 8,275 8,129 Due after ten years 58,462 53,351 105,382 90,778 318,065 297,936 113,657 98,907 Mortgage-backed securities and collateralized mortgage obligations 765,864 692,617 72,511 59,874 Asset-backed securities 42,015 39,691 — — Collateralized loan obligations 69,750 66,048 — — $ 1,195,694 $ 1,096,292 $ 186,168 $ 158,781 |
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, 2023, 2022 and 2021 were as follows: December 31, 2023 2022 2021 Proceeds from sales $ 109,793 $ — $ 13,300 Gross realized gains — — — Gross realized losses 5,321 — 188 |
LHI AND ACL (Tables)
LHI AND ACL (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Summary of Loans | LHI in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 LHI, carried at amortized cost: Real estate: Construction and land $ 1,734,254 $ 1,787,400 Farmland 31,114 43,500 1 - 4 family residential 937,119 894,456 Multi-family residential 605,817 322,679 OOCRE 794,088 715,829 NOOCRE 2,350,725 2,341,379 Commercial 2,752,063 2,942,348 MW 377,796 446,227 Consumer 10,149 7,806 9,593,125 9,501,624 Deferred loan fees, net (8,785) (18,973) ACL (109,816) (91,052) Total LHI, net $ 9,474,524 $ 9,391,599 |
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, 2023 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW Consumer Total Balance at beginning of year $ 13,120 $ 127 $ 9,533 $ 2,607 $ 8,707 $ 26,704 $ 30,142 $ — $ 112 $ 91,052 Credit loss (benefit) expense non-PCD loans 7,958 (26) 26 2,467 2,352 13,706 15,458 260 159 42,360 Credit (benefit) loss expense PCD loans (46) — (2) — 48 618 (466) — — 152 Charge-offs — — (21) (192) (855) (13,649) (10,413) — (236) (25,366) Recoveries — — 3 — — 350 1,165 — 100 1,618 Ending Balance $ 21,032 $ 101 $ 9,539 $ 4,882 $ 10,252 $ 27,729 $ 35,886 $ 260 $ 135 $ 109,816 December 31, 2022 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW Consumer Total Balance at beginning of year $ 7,293 $ 187 $ 5,982 $ 2,664 $ 9,215 $ 30,548 $ 21,632 $ — $ 233 $ 77,754 Credit loss (benefit) expense non-PCD loans 5,855 (60) 3,757 (57) 4,633 (2,588) 18,933 — 2,355 32,828 Credit loss (expense) benefit PCD loans (28) — (237) — (2,766) 429 (2,000) — (1,276) (5,878) Charge-offs — — — — (2,646) (2,410) (9,731) — (1,285) (16,072) Recoveries — — 31 — 271 725 1,308 — 85 2,420 Ending Balance $ 13,120 $ 127 $ 9,533 $ 2,607 $ 8,707 $ 26,704 $ 30,142 $ — $ 112 $ 91,052 December 31, 2021 Construction and Land Farmland Residential Multifamily OOCRE NOOCRE Commercial MW 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 |
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, 2023 and 2022 : December 31, 2023 December 31, 2022 Real Property ACL Allocation Real Property ACL Allocation OOCRE $ 3,059 $ 47 $ 1,193 $ 129 NOOCRE 21,169 — 20,896 2,138 Commercial 20,711 3,339 1,240 396 Consumer — — 15 — Total $ 44,939 $ 3,386 $ 23,344 $ 2,663 |
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, 2023 and 2022, were as follows: December 31, December 31, Nonaccrual Nonaccrual With No ACL Nonaccrual Nonaccrual With No ACL Construction and land $ 6,793 $ 6,793 $ — $ — 1 - 4 family residential 1,965 1,965 862 862 OOCRE 9,719 9,493 9,737 8,545 NOOCRE 33,479 33,479 21,377 13,178 Commercial 40,868 10,610 11,397 2,521 Consumer 24 24 169 169 Total $ 92,848 $ 62,364 $ 43,542 $ 25,275 |
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, 2023 and 2022 is as follows: December 31, 2023 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due (1) Total Current PCD Total Total 90 Days Past Due and Still Accruing (2) Construction and land $ 29,379 $ — $ 6,793 $ 36,172 $ 1,698,082 $ — $ 1,734,254 $ — Farmland — — — — 31,114 — 31,114 — 1 - 4 family residential 4,359 2,535 3,691 10,585 925,404 1,130 937,119 1,726 Multi-family residential 15,095 — — 15,095 590,722 — 605,817 — OOCRE 916 114 10,185 11,215 764,703 18,170 794,088 466 NOOCRE 3,182 642 20,547 24,371 2,312,270 14,084 2,350,725 783 Commercial 3,485 1,394 8,446 13,325 2,735,830 2,908 2,752,063 — MW — — — — 377,796 — 377,796 — Consumer 76 — — 76 10,060 13 10,149 — $ 56,492 $ 4,685 $ 49,662 $ 110,839 $ 9,445,981 $ 36,305 $ 9,593,125 $ 2,975 (1) Total past due loans includes $13,715 of pooled PCD loans as of December 31, 2023. (2) Loans 90 days past due and still accruing excludes $676 of PCD loans of as of December 31, 2023. December 31, 2022 30 to 59 Days 60 to 89 Days 90 Days or Greater Total Past Due (1) Total Current PCD Total Total 90 Days Past Due and Still Accruing (2) Construction and land $ 1,121 $ 2,111 $ — $ 3,232 $ 1,782,624 $ 1,544 $ 1,787,400 $ — Farmland — — — — 43,500 — 43,500 — 1 - 4 family residential 4,319 129 499 4,947 888,329 1,180 894,456 123 Multi-family residential 1,000 — — 1,000 321,679 — 322,679 — OOCRE 3,342 1,186 1,193 5,721 690,291 19,817 715,829 — NOOCRE 5,156 — 20,896 26,052 2,302,579 12,748 2,341,379 — Commercial 3,088 2,188 1,675 6,951 2,931,696 3,701 2,942,348 — MW — — — — 446,227 — 446,227 — Consumer 352 — 45 397 7,386 23 7,806 2 $ 18,378 $ 5,614 $ 24,308 $ 48,300 $ 9,414,311 $ 39,013 $ 9,501,624 $ 125 (1) Total past due loans includes $13,178 of pooled PCD loans as of December 31, 2022. (2) |
Schedule of Terms of Certain Loans That Were Modified as Troubled Debt Restructurings | The following table shows the amortized cost basis at the end of the reporting period of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of financing receivable and type of concession granted during the twelve months ended December 31, 2023: Loan Modifications Made to Borrowers Experiencing Financial Difficulty Interest Rate Reduction Amortized Cost Basis % of Loan Class Financial Impact 1-4 Family Residential Rentals 1 $ 41,066 4.4 % Reduced weighted-average contractual interest rate from floating 7.5% to fixed 6.0% 1 1-4 Family Residential Rentals is included in the 1-4 family residential loan portfolio and is reported as such in accordance with Federal Financial Institutions Examination Council guidelines. Term Extension Amortized Cost Basis % of Loan Class Financial Impact NOOCRE $ 23,624 1.0 % Principal and interest deferred over three months Commercial 24,733 0.9 % Principal and interest deferred over three months $ 48,357 Payment Status Current 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due 1-4 Family Residential Rentals $ 41,066 $ — $ — $ — NOOCRE 23,624 — — — Commercial 23,346 — — 1,387 Total $ 88,036 $ — $ — $ 1,387 |
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 re-underwritten 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 2023 2022 2021 2020 2019 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, Construction and land: Pass $ 116,333 $ 740,244 $ 538,946 $ 109,017 $ 3,089 $ 3,661 $ 181,940 $ — $ 1,693,230 Special mention 593 13,782 4,980 3,439 — 8,760 2,677 — 34,231 Substandard — 6,547 — 246 — — — — 6,793 Total construction and land $ 116,926 $ 760,573 $ 543,926 $ 112,702 $ 3,089 $ 12,421 $ 184,617 $ — $ 1,734,254 Construction and land gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Farmland: Pass $ 2,531 $ 4,398 $ — $ 17,999 $ 15 $ 4,944 $ 1,227 $ — $ 31,114 Total farmland $ 2,531 $ 4,398 $ — $ 17,999 $ 15 $ 4,944 $ 1,227 $ — $ 31,114 Farmland gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 1 - 4 family residential: Pass $ 73,289 $ 140,824 $ 193,914 $ 79,767 $ 38,589 $ 270,193 $ 114,275 $ 17,255 $ 928,106 Special mention 3,732 531 — — — 238 — — 4,501 Substandard — 144 902 — 106 1,701 529 — 3,382 PCD — — — — — 1,130 — — 1,130 Total 1-4 family residential $ 77,021 $ 141,499 $ 194,816 $ 79,767 $ 38,695 $ 273,262 $ 114,804 $ 17,255 $ 937,119 1-4 Family gross charge-offs $ — $ — $ — $ — $ 21 $ — $ — $ — $ 21 Multi-family residential: Pass $ 9,441 $ 82,040 $ 257,714 $ 196,575 $ 8,054 $ 14,570 $ 10,627 $ — $ 579,021 Special mention — — — — — 11,701 — — 11,701 Substandard — — — — — 15,095 — — 15,095 Total multi-family residential $ 9,441 $ 82,040 $ 257,714 $ 196,575 $ 8,054 $ 41,366 $ 10,627 $ — $ 605,817 Multifamily gross charge-offs $ — $ — $ — $ — $ 192 $ — $ — $ — $ 192 OOCRE: Pass $ 129,463 $ 178,777 $ 113,207 $ 90,219 $ 39,876 $ 166,270 $ 4,618 $ — $ 722,430 Special mention 5,481 — 2,479 1,019 1,961 14,775 210 — 25,925 Substandard — 9,357 2,131 3,644 736 11,695 — — 27,563 PCD — — — — — 18,170 — — 18,170 Total OOCRE $ 134,944 $ 188,134 $ 117,817 $ 94,882 $ 42,573 $ 210,910 $ 4,828 $ — $ 794,088 OOCRE gross charge-offs $ — $ — $ — $ 369 $ 5 $ 481 $ — $ — $ 855 NOOCRE: Pass $ 33,525 $ 724,110 $ 500,354 $ 247,385 $ 148,046 $ 381,559 $ 30,524 $ 577 $ 2,066,080 Special mention — 5,950 25,985 26,175 68,616 55,805 — — 182,531 Substandard — 3,858 2,774 364 2,620 78,414 — — 88,030 PCD — — — — — 14,084 — — 14,084 Total NOOCRE $ 33,525 $ 733,918 $ 529,113 $ 273,924 $ 219,282 $ 529,862 $ 30,524 $ 577 $ 2,350,725 NOOCRE gross charge-offs $ — $ — $ — $ — $ — $ 13,649 $ — $ — $ 13,649 Commercial: Pass $ 314,939 $ 384,713 $ 86,757 $ 38,554 $ 43,535 $ 45,812 $ 1,725,663 $ 1,044 $ 2,641,017 Special mention 4,584 13,583 12,794 541 — 10,144 9,392 35 51,073 Substandard 640 16,974 3,978 545 3,767 15,843 15,244 74 57,065 PCD — — — — — 2,908 — — 2,908 Total commercial $ 320,163 $ 415,270 $ 103,529 $ 39,640 $ 47,302 $ 74,707 $ 1,750,299 $ 1,153 $ 2,752,063 Commercial gross charge-offs $ — $ 2,158 $ — $ 2,572 $ 1,083 $ 4,600 $ — $ — $ 10,413 MW: Pass $ 1,905 $ — $ — $ — $ — $ — $ 375,891 $ — $ 377,796 Total MW $ 1,905 $ — $ — $ — $ — $ — $ 375,891 $ — $ 377,796 MW gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 4,552 $ 1,045 $ 276 $ 604 $ 89 $ 1,678 $ 1,728 $ — $ 9,972 Special mention — — — — — 85 — — 85 Substandard — — 4 — 12 63 — — 79 PCD — — — — — 13 — — 13 Total consumer $ 4,552 $ 1,045 $ 280 $ 604 $ 101 $ 1,839 $ 1,728 $ — $ 10,149 Consumers gross charge-offs $ — $ 29 $ 2 $ — $ — $ 205 $ — $ — $ 236 Total Pass $ 685,978 $ 2,256,151 $ 1,691,168 $ 780,120 $ 281,293 $ 888,687 $ 2,446,493 $ 18,876 $ 9,048,766 Total Special Mention 14,390 33,846 46,238 31,174 70,577 101,508 12,279 35 310,047 Total Substandard 640 36,880 9,789 4,799 7,241 122,811 15,773 74 198,007 Total PCD — — — — — 36,305 — — 36,305 Total $ 701,008 $ 2,326,877 $ 1,747,195 $ 816,093 $ 359,111 $ 1,149,311 $ 2,474,545 $ 18,985 $ 9,593,125 Total gross charge-offs $ — $ 2,187 $ 2 $ 2,941 $ 1,301 $ 18,935 $ — $ — $ 25,366 Term loans amortized cost basis by origination year excludes $8,785 of deferred loan fees, net. Term Loans Amortized Cost Basis by Origination Year 1 2022 2021 2020 2019 2018 Prior Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Total As of December 31, Construction and land: Pass $ 347,855 $ 709,208 $ 378,229 $ 69,241 $ 30,673 $ 14,025 $ 215,263 $ 140 $ 1,764,634 Special mention — 18,662 2,560 — — — — — 21,222 PCD — — — — — 1,544 — — 1,544 Total construction and land $ 347,855 $ 727,870 $ 380,789 $ 69,241 $ 30,673 $ 15,569 $ 215,263 $ 140 $ 1,787,400 Farmland: Pass $ 2,546 $ 16,242 $ 18,530 $ 21 $ — $ 5,069 $ 1,092 $ — $ 43,500 Total farmland $ 2,546 $ 16,242 $ 18,530 $ 21 $ — $ 5,069 $ 1,092 $ — $ 43,500 1 - 4 family residential: Pass $ 135,006 $ 188,635 $ 87,861 $ 43,293 $ 41,960 $ 257,768 $ 86,900 $ 726 $ 842,149 Special mention — — — — — 278 26,068 — 26,346 Substandard — 184 — — 1,028 23,569 — 24,781 PCD — — — — — 1,180 — — 1,180 Total 1 - 4 family residential $ 135,006 $ 188,819 $ 87,861 $ 43,293 $ 41,960 $ 260,254 $ 136,537 $ 726 $ 894,456 Multi-family residential: Pass $ 72,044 $ 80,793 $ 110,426 $ 8,402 $ 32,822 $ 2,494 $ — $ — $ 306,981 Substandard — — — 1,954 13,744 — — — 15,698 Total multi-family residential $ 72,044 $ 80,793 $ 110,426 $ 10,356 $ 46,566 $ 2,494 $ — $ — $ 322,679 OOCRE: Pass $ 191,044 $ 106,698 $ 84,230 $ 43,965 $ 49,461 $ 167,968 $ 5,225 $ — $ 648,591 Special mention — 2,321 1,409 1,964 — 3,447 — 45 9,186 Substandard — — — — 23,231 15,004 — — 38,235 PCD — — — — — 19,817 — — 19,817 Total OOCRE $ 191,044 $ 109,019 $ 85,639 $ 45,929 $ 72,692 $ 206,236 $ 5,225 $ 45 $ 715,829 NOOCRE: Pass $ 752,476 $ 531,735 $ 215,076 $ 149,246 $ 196,424 $ 305,434 $ 16,642 $ 465 $ 2,167,498 Special mention — — 22,774 19,464 12,274 51,451 — — 105,963 Substandard — 0 — 0 — 0 1,310 7,659 46,201 — — 55,170 PCD — — — — 12,697 51 — — 12,748 Total NOOCRE $ 752,476 $ 531,735 $ 237,850 $ 170,020 $ 229,054 $ 403,137 $ 16,642 $ 465 $ 2,341,379 Commercial: Pass $ 473,084 $ 132,396 $ 90,543 $ 83,996 $ 40,030 $ 31,269 $ 1,906,074 $ 553 $ 2,757,945 Special mention — 666 — 4,543 7,385 270 114,447 — 127,311 Substandard 17,894 4,058 5,189 4,195 10,954 4,732 6,292 77 53,391 PCD — — — — 273 3,428 — — 3,701 Total commercial $ 490,978 $ 137,120 $ 95,732 $ 92,734 $ 58,642 $ 39,699 $ 2,026,813 $ 630 $ 2,942,348 MW: Pass $ — $ — $ — $ — $ — $ — $ 444,393 $ — $ 444,393 Special mention — — — — — — 1,626 — 1,626 Substandard — — — — 46 162 — — 208 Total MW $ — $ — $ — $ — $ 46 $ 162 $ 446,019 $ — $ 446,227 Consumer: Pass $ 1,965 $ 452 $ 872 $ 216 $ 135 $ 2,298 $ 1,618 $ — $ 7,556 Special mention — — — — — 58 — — 58 Substandard — — — — — 169 — — 169 PCD — — — — — 23 — — 23 Total consumer $ 1,965 $ 452 $ 872 $ 216 $ 135 $ 2,548 $ 1,618 $ — $ 7,806 Total Pass $ 1,976,020 $ 1,766,159 $ 985,767 $ 398,380 $ 391,505 $ 786,325 $ 2,677,207 $ 1,884 $ 8,983,247 Total Special Mention — 21,649 26,743 25,971 19,659 55,504 142,141 45 291,712 Total Substandard 17,894 4,242 5,189 7,459 55,634 67,296 29,861 77 187,652 Total PCD — — — — 12,970 26,043 — — 39,013 Total $ 1,993,914 $ 1,792,050 $ 1,017,699 $ 431,810 $ 479,768 $ 935,168 $ 2,849,209 $ 2,006 $ 9,501,624 1 Term loans amortized cost basis by origination year excludes $18,973 of deferred loan fees, net. |
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, 2023 2022 Balance at beginning of year $ 14,880 $ 17,705 Increase from loan sales 2,170 2,670 Servicing asset impairment, net of recoveries 919 (1,823) Amortization charged as a reduction to income (4,711) (3,672) Balance at year-end $ 13,258 $ 14,880 |
Schedule of Loans Held-for-Sale, Principal Sold | The following table reflects principal sold and related gain for SBA and USDA LHFI. The gain on sale of these loans is recorded in gain on sale of SBA LHFS and gain on sale of USDA LHFS in the Company's consolidated statements of income. Year Ended December 31, 2023 2022 2021 SBA LHFI principal sold $ 16,608 $ 9,491 $ 40,001 Gain on sale of SBA LHFI 1,291 848 4,911 USDA LHFI principal sold 64,080 72,670 — Gain on sale of USDA LHFI 9,797 10,731 — |
Schedule of Financing Receivable Held-for-Sale | The following table reflects LHFS. December 31, 2023 December 31, 2022 SBA/USDA construction and land $ 41,492 $ 12,296 1 - 4 family residential 788 866 SBA/USDA OOCRE 16,758 5,915 NOOCRE 10,500 — SBA/USDA commercial 9,534 1,564 Total LHFS $ 79,072 $ 20,641 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Bank Premises, Furniture and Equipment | Premises and equipment in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 Building and improvements $ 55,911 $ 56,517 Site improvements 2,845 2,903 Tenant improvements 779 779 Leasehold improvements 8,432 7,497 Land 37,368 38,709 Furniture, fixtures and equipment 29,437 27,417 Construction in progress 2,348 1,579 137,120 135,401 Less accumulated depreciation and amortization 31,393 26,577 $ 105,727 $ 108,824 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Operating lease cost $ 5,432 $ 5,161 Variable lease cost 989 640 Net lease cost $ 6,421 $ 5,801 The table below summarizes other information related to the Company’s operating leases: For the Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,130 $ 4,781 Weighted-average remaining lease term - operating leases, in years 6.2 years 5.4 years Weighted-average discount rate - operating leases 3.26 % 2.88 % |
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, 2023 Lease payments due: Within one year $ 5,299 After one but within two years 4,610 After two but within three years 3,287 After three but within four years 2,175 After four but within five years 1,978 After five years 5,759 Total undiscounted cash flows 23,108 Less: Discount on cash flows (2,603) Total lease liability $ 20,505 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 2022 Balance at beginning of year $ 404,452 $ 403,771 NAC acquisition 1 — 681 Balance at end of year $ 404,452 $ 404,452 1 During the first quarter of 2022, the purchased accounting adjustments for NAC were finalized resulting in an increase in goodwill during 2022. |
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. All in-place lease intangibles were fully amortized in 2023. 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, 2023 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 3.0 years $ 81,769 $ — $ 53,274 $ 28,495 Servicing asset 7.2 years 26,930 1,532 12,140 13,258 Intangible lease assets 0.0 years 4,779 — 4,779 — $ 113,478 $ 1,532 $ 70,193 $ 41,753 December 31, 2022 Remaining Weighted Gross Net Amortization Intangible Valuation Accumulated Intangible Period Asset Allowance Amortization Asset Core deposit intangibles 4.0 years $ 81,769 $ — $ 43,523 $ 38,246 Servicing asset 7.4 years 24,760 2,451 7,429 14,880 Intangible lease assets 0.3 years 4,779 — 4,692 87 $ 111,308 $ 2,451 $ 55,644 $ 53,213 |
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, 2023 was as follows: Year Amount 2024 $ 11,595 2025 11,259 2026 10,640 2027 2,377 2028 1,844 Thereafter 4,038 $ 41,753 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statistical Disclosure for Banks [Abstract] | |
Schedule Summarized of the Deposits | Deposits in the accompanying consolidated balance sheets are summarized as follows: December 31, 2023 2022 Noninterest-bearing demand accounts $ 2,218,036 $ 2,640,617 Interest-bearing demand accounts 927,193 622,814 Savings accounts 136,868 118,293 Limited access money market accounts 3,864,361 3,654,868 Certificates of deposit, greater than $250 1,312,744 853,659 Certificates of deposit, less than $250 1,878,993 1,232,983 Total $ 10,338,195 $ 9,123,234 |
Scheduled Maturities of Certificate of Deposits | As of December 31, 2023, the scheduled maturities of certificates of deposit were as follows: Year Amount 2024 $ 2,854,476 2025 322,311 2026 7,532 2027 3,638 2028 3,780 Total $ 3,191,737 |
ADVANCES FROM FHLB (Tables)
ADVANCES FROM FHLB (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Advance from Federal Home Loan Bank [Abstract] | |
Schedule of Contractual Maturities of FHLB Advances | Contractual maturities of FHLB advances at December 31, 2023 were as follows: 2024 $ 100,000 Total $ 100,000 |
SUBORDINATED DEBENTURES AND S_2
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Junior Subordinated Debentures and Subordinated Notes | Borrowed funds in the accompanying consolidated balance sheets are as follows: December 31, 2023 2022 Junior subordinated debentures (1) $ 30,908 $ 30,686 Subordinated notes (2) 198,875 198,089 $ 229,783 $ 228,775 (1) Junior subordinated debentures are net of a discount of $2,960 and $3,182 as of December 31, 2023 and 2022, respectively. (2) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Income Taxes | The provision for income taxes is summarized as follows: Year Ended December 31, 2023 2022 2021 Income tax expense (benefit): Current $ 38,672 $ 45,981 $ 32,075 Deferred (2,649) (5,662) 4,647 Total income tax expense $ 36,023 $ 40,319 $ 36,722 |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles income tax expense for the years ended December 31, 2023, 2022 and 2021 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, 2023 2022 2021 Federal income tax expense rate at 21% for December 31, 2023, 2022 and 2021 $ 30,300 $ 39,193 $ 37,024 Bank-owned life insurance (663) (448) (852) Non-deductible transaction costs — — 78 Tax exempt interest income (899) (579) (545) Deferred tax true up 4 54 24 162(m) Disallowance 512 1,183 504 State taxes, net of federal benefit 1,510 1,769 1,039 Excess benefit on share-based compensation 340 (1,056) (838) Valuation allowance on Thrive impairment 4,249 — — Other 670 203 288 Total income tax expense $ 36,023 $ 40,319 $ 36,722 Effective tax rate 25.0 % 21.6 % 20.8 % |
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, 2023 2022 Deferred tax assets: ACL $ 25,449 $ 21,647 Equity compensation 4,669 4,286 Purchase premium/loan discounts 984 1,546 Lease liability 4,428 3,708 Net unrealized loss on debt securities AFS 16,870 17,204 Purchased securities 1,836 2,520 Investment in Thrive 5,156 — Other 5,567 9,219 Total gross deferred tax assets $ 64,959 $ 60,130 Valuation allowance on Thrive impairment (4,249) — Total net deferred tax assets $ 60,710 $ 60,130 Deferred tax liabilities: Intangibles 8,089 9,340 Bank premises and equipment 5,326 6,163 ROU asset 4,169 3,587 Other 2,885 3,214 Total deferred tax liabilities 20,469 22,304 Net deferred tax asset $ 40,241 $ 37,826 |
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, 2023, 2022 and 2021. December 31 2023 2022 2021 Unrecognized tax benefits at the beginning of the year: $ 293 $ 503 $ 549 Gross increases, related to tax positions taken in a prior period 278 — — Gross decreases, related to tax positions taken in a prior period — (44) (101) Gross increases, related to tax positions taken in current period 133 75 55 Settlement with taxing authority — (241) — Expiration of statute of limitations (25) — — Unrecognized tax benefits at the end of the year $ 679 $ 293 $ 503 |
FAIR VALUE DISCLOSURES (Tables)
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: December 31, 2023 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,076,639 $ — $ 1,076,639 Equity securities with a readily determinable fair value 9,897 — — 9,897 LHFS (1) — 67,784 — 67,784 Interest rate swaps designated as hedging instruments — 18,814 — 18,814 Correspondent interest rate swaps not designated as hedging instruments — 28,007 — 28,007 Customer interest rate swaps not designated as hedging instruments — 2,118 — 2,118 Correspondent interest rate caps and collars not designated as hedging instruments — 1,344 — 1,344 Financial Liabilities: Interest rate swaps designated as hedging instruments $ — $ 47,121 $ — $ 47,121 Correspondent interest rate swaps not designated as hedging instruments — 2,322 — 2,322 Customer interest rate swaps not designated as hedging instruments — 27,288 — 27,288 Customer interest rate caps and collars not designated as hedging instruments — 1,344 — 1,344 (1) Represents LHFS elected to be carried at fair value upon origination or acquisition. December 31, 2022 Level 1 Level 2 Level 3 Total Inputs Inputs Inputs Fair Value Financial Assets: AFS debt securities $ — $ 1,096,292 $ — $ 1,096,292 Equity securities with a readily determinable fair value 9,792 — — 9,792 LHFS (1) — 19,775 — 19,775 Interest rate swaps designated as hedging instruments — 26,523 — 26,523 Correspondent interest rate swaps not designated as hedging instruments — 38,839 — 38,839 Customer interest rate swaps not designated as hedging instruments — 1,004 — 1,004 Correspondent interest rate caps and collars not designated as hedging instruments — 1,494 — 1,494 Financial Liabilities: Interest rate swaps designated as hedging instruments — 54,171 — 54,171 Correspondent interest rate swaps not designated as hedging instruments — 1,126 — 1,126 Customer interest rate swaps not designated as hedging instruments — 38,188 — 38,188 Customer interest rate caps and collars not designated as hedging instruments — 1,494 — 1,494 (1) Represents LHFS 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, 2023 and 2022, 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, 2023 Assets: Collateral dependent loans with an ACL $ — $ — $ 14,274 $ 14,274 Servicing assets with a valuation allowance — — 6,682 6,682 As of December 31, 2022 Assets: Collateral dependent loans with an ACL $ — $ — $ 7,969 $ 7,969 Servicing assets with a valuation allowance — — 10,984 10,984 |
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, 2023 and 2022 were as follows: Fair Value Carrying Amount Level 1 Level 2 Level 3 December 31, 2023 Financial assets: Cash and cash equivalents $ 629,063 $ — $ 629,063 $ — HTM debt securities 180,403 — 160,021 — LHFS (1) 11,288 — 11,288 — LHI (2) 9,577,180 — — 9,322,744 Accrued interest receivable 53,313 — 53,313 — BOLI 84,833 — 84,833 — Servicing asset 6,576 — 6,576 — Equity securities without a readily determinable fair value 11,624 N/A N/A N/A FHLB and FRB stock 53,699 N/A N/A N/A Financial liabilities: Deposits $ 10,338,195 $ — $ 9,779,849 $ — Advances from FHLB 100,000 — 141,999 — Accrued interest payable 41,948 — 41,948 — Subordinated debentures and subordinated notes 229,783 — 229,783 — December 31, 2022 Financial assets: Cash and cash equivalents $ 436,077 $ — $ 436,077 $ — HTM debt securities 186,168 — 158,781 — LHFS (1) 866 — 866 — LHI (2) 9,399,614 — — 9,163,616 Accrued interest receivable 44,035 — 44,035 — BOLI 84,496 — 84,496 — Servicing asset 3,896 — 3,896 — Equity securities without readily determinable fair value 10,072 N/A N/A N/A FHLB and FRB stock 101,568 N/A N/A N/A Financial liabilities: Deposits $ 9,123,234 $ — $ 8,341,419 $ — Advances from FHLB 1,175,000 — 1,156,852 — Accrued interest payable 8,795 — 8,795 — Subordinated debentures and subordinated notes 228,775 — 228,775 — (1) LHFS primarily represent commercial loans moved to held for sale or mortgage LHFS 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, 2023 | |
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, 2023 and 2022: December 31, 2023 2022 Commitments to extend credit $ 3,083,501 $ 4,511,671 MW commitments 803,704 1,088,558 Standby and commercial letters of credit 111,590 98,179 $ 3,998,795 $ 5,698,408 |
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, 2023 2022 Beginning balance for ACL on unfunded commitments $ 10,086 $ 9,266 (Benefit) provision for credit losses on unfunded commitments (2,041) 820 Ending balance of ACL on unfunded commitments $ 8,045 $ 10,086 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and December 31, 2022 were as shown in the table below. December 31, 2023 December 31, 2022 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 money market deposit account payments $ 250,000 $ 12,208 $ — $ 250,000 $ 21,234 $ — Interest rate swaps on fixed rate advances/brokered CDs 200,000 — 4,296 — — — Interest rate swaps on customer loan interest payments 375,000 — 40,055 375,000 — 49,211 Interest rate collars on customer loan interest payments 450,000 2,304 2,770 450,000 3,267 4,960 Interest rate floor on customer loan interest payments 200,000 4,302 — 100,000 2,022 — Total derivatives designated as hedging instruments $ 1,475,000 $ 18,814 $ 47,121 $ 1,175,000 $ 26,523 $ 54,171 Derivatives not designated as hedging instruments: Financial institution counterparty: Interest rate swaps $ 893,702 $ 28,007 $ 2,322 $ 805,311 $ 38,839 $ 1,126 Interest rate caps and collars 285,370 1,344 — 68,370 1,494 — Commercial customer counterparty: Interest rate swaps 893,702 2,118 27,288 805,311 1,004 38,188 Interest rate caps and collars 285,370 — 1,344 68,370 — 1,494 Total derivatives not designated as hedging instruments $ 2,358,144 $ 31,469 $ 30,954 $ 1,747,362 $ 41,337 $ 40,808 Offsetting derivative assets/liabilities — (29,463) (29,463) — (30,982) (30,982) Total derivatives $ 3,833,144 $ 20,820 $ 48,612 $ 2,922,362 $ 36,878 $ 63,997 |
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, 2023 and 2022 was as follows: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Net (loss) gain 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 (loss) gain 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 $ (4,386) $ 4,386 Interest Expense $ (3,569) $ 3,569 Interest Expense Interest rate swaps on money market deposit account and funding source payments (13,322) 11,798 Interest Expense 16,693 3,208 Interest Expense Interest rate swaps, collars and floor on customer loan interest payments 9,964 (19,196) Interest Income (54,623) (1,757) Total $ (7,744) $ (3,012) $ (41,499) $ 5,020 Net Gain recognized in other noninterest income Net Gain recognized in other noninterest income Derivatives not designated as hedging instruments: Interest rate swaps, caps and collars $ 1,633 $ 7,217 |
Schedule of Derivative Instruments Outstanding | The following is a summary of the interest rate swaps outstanding as of December 31, 2023 and December 31, 2022. December 31, 2023 Notional Amount Fixed Rate Floating Rate Maturity (Wtd. Avg.) Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 893,702 2.4% - 7.4% LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0%- 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 4.1 years $ (25,170) Interest rate caps and collars $ 285,370 3.5% - 7.5% SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0% 0.8 years $ (1,344) Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 893,702 2.4% - 7.4% LIBOR 1 month + 3.0% SOFR CME 1 month + 0.0%- 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 4.1 years $ 25,685 Interest rate caps and collars $ 285,370 3.5% - 7.5% SOFR CME 1 month + 0.0% - 2.5% SOFR + 0.0% 0.8 years $ 1,344 December 31, 2022 Notional Amount Fixed Rate Floating Rate Maturity (Wtd. Avg.) Fair Value Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 805,311 2.4% - 8.5% LIBOR 1 month + 2.8% - 5.0% 1 SOFR CME 1 month + 0.0% - 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 5.1 years $ (37,183) Interest rate caps and collars $ 68,370 3.5% LIBOR 1 month + 0.0% 1.8 years $ (1,494) Correspondent interest rate derivative: Interest rate swaps - pay fixed/receive floating $ 805,311 2.4% - 8.5% LIBOR 1 month + 2.8% - 5.0% 1 SOFR CME 1 month + 0.0% - 3.8% SOFR - NYFD 30 day average + 2.5% - 3.0% 5.1 years $ 37,713 Interest rate caps and collars $ 68,370 3.5% LIBOR 1 month + 0.0% 1.8 years $ 1,494 1 The derivative utilizing LIBOR 1 month as of December 31, 2023 is utilizing the allowable fallback provision. |
STOCK AND INCENTIVE PLANS (Tabl
STOCK AND INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 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, 2020 20,000 $ 10.09 1.06 years Exercised (19,000) 10.00 Outstanding at December 31, 2021 1,000 $ 10.43 1.07 years Exercised — — Outstanding at December 31, 2022 1,000 $ 10.43 1.07 years Exercised (1,000) 10.43 Outstanding and exercisable at December 31, 2023 — $ — 0.00 years $ — A summary of the status of the Company’s stock options under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the years then ended, is as follows: 2022 Equity Plan Nonperformance-based stock options Equity Awards Shares Weighted Average Exercise Weighted Aggregate Intrinsic Value Outstanding at December 31, 2020 975,801 $ 24.26 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 Granted 1,500 $ 31.26 Exercised (54,049) 23.51 Outstanding at December 31, 2022 657,494 $ 24.47 5.58 years Forfeited (1,666) 17.38 Canceled (35,970) 28.95 Exercised (17,285) 18.29 Outstanding at December 31, 2023 602,573 $ 24.40 4.84 years $ 779,874 Options exercisable at December 31, 2023 591,573 $ 24.45 4.84 years $ 760,974 Weighted average fair value of options granted during the period $ — A summary of the status of the Company’s stock options under the Veritex (Green) 2014 Plan as of December 31, 2023, 2022 and 2021 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 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 Exercised (62,592) 19.59 Outstanding at December 31, 2022 155,212 $ 19.83 5.20 years Cancelled (9,717) 21.38 Exercised (20,996) 20.95 Outstanding at December 31, 2023 124,499 $ 22.00 3.70 years $ 616 Options exercisable at December 31, 2023 124,499 $ 22.00 3.70 years $ 616 A summary of the status of the Company’s stock options under the Green 2010 Plan as of December 31, 2023, 2022 and 2021 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, 2020 131,083 $ 11.60 Forfeited (2,198) Exercised (62,742) 10.51 Outstanding at December 31, 2021 66,143 $ 12.56 Canceled (21,235) 11 Exercised (1,746) 13.20 Outstanding at December 31, 2022 43,162 $ 13.11 Exercised (32,378) 13.26 Outstanding and exercisable at December 31, 2023 10,784 $ 12.65 4.06 years $ 115 |
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, 2023, 2022 and 2021 is presented below: Fair Value of Options Exercised or Restricted Stock Units Vested as of December 31, 2023 2022 2021 Nonperformance-based stock options exercised $ 16 $ — $ 568 A summary of the fair value of the Company’s stock options exercised and restricted stock units vested under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021 is presented below: Fair Value of Options Exercised, RSUs and PSUs Vested as of December 31, 2023 2022 2021 Nonperformance-based stock options exercised $ 66 $ 792 $ 9,214 RSUs vested 3,924 6,356 2,781 PSUs vested 1,070 4,040 — Fair Value of Options Exercised or Restricted Stock Units Vested in the year ended December 31, 2023 2022 2021 Non-performance-based stock options exercised $ 71 $ 1,157 $ 4,599 RSUs vested 2,384 1,312 713 PSUs vested 227 1,261 — A summary of the fair value of the Company’s stock options exercised under the Green 2010 Plan during the year ended December 31, 2023, 2022, and 2021 is presented below: Fair Value of Options Exercised in the year ended December 31, 2023 2022 2021 Non-performance-based stock options exercised $ 379 $ 47 $ 1,838 |
Summary of Stock Compensation Expense | Stock compensation expense of options, RSUs and PSUs granted under the 2022 Equity Plan and the Veritex (Green) 2014 Omnibus Equity Incentive Plan (the “Veritex (Green) 2014 Plan”) was as follows: Year ended December 31, 2023 2022 2022 Equity Plan $ 10,200 $ 11,109 Veritex (Green) 2014 Plan 1,850 820 |
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 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the year then ended is as follows: 2022 Equity Plan RSUs Equity Awards Units Weighted 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 Granted 546,405 33.79 Vested into shares (175,159) 27.88 Forfeited (14,193) 33.18 Outstanding at December 31, 2022 955,104 $ 28.38 Granted 293,086 27.17 Vested into shares (269,144) 29.68 Forfeited (30,533) 32.23 Outstanding at December 31, 2023 948,513 $ 27.52 A summary of the status of the Company’s PSUs under the 2022 Equity Plan as of December 31, 2023, 2022 and 2021, and changes during the years then ended is as follows: 2022 Equity Plan PSUs Equity Awards Units Weighted Outstanding at December 31, 2020 100,195 $ 23.20 Granted 56,276 25.94 Outstanding at December 31, 2021 156,471 $ 24.17 Granted 39,429 40.38 Incremental PSUs granted upon performance conditions met 34,194 23.90 Vested into shares (103,387) Outstanding at December 31, 2022 126,707 $ 31.19 Granted 53,310 27.55 Vested into shares (41,781) 26.42 Forfeited (8,468) 30.90 Outstanding at December 31, 2023 129,768 $ 30.28 A summary of the status of the Company’s RSUs under the Veritex (Green) 2014 Plan as of December 31, 2023, 2022 and 2021 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan RSUs Units Weighted Average Grant Date Fair Value Outstanding at December 31, 2020 156,187 $ 22.64 Granted 5,692 26.12 Vested into shares (33,335) 21.38 Forfeited (5,760) 23.62 Outstanding at December 31, 2021 122,784 $ 21.13 Granted 4,231 40.38 Vested into shares (32,931) 21.80 Forfeited (7,851) 29.13 Outstanding at December 31, 2022 86,233 $ 21.09 Vested into shares (19,282) 29.66 Forfeited (2,232) 29.13 Outstanding at December 31, 2023 64,719 $ 18.26 A summary of the status of the Company’s PSUs under the Veritex (Green) 2014 Plan as of December 31, 2023, 2022 and 2021 and changes during the years then ended, is as follows: Veritex (Green) 2014 Plan PSUs Units Weighted Average Grant Date Fair Value 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 Granted 4,411 40.38 Incremental PSUs granted upon performance condition met 10,566 19.69 Vested into shares (31,703) 21.38 Outstanding at December 31, 2022 19,173 $ 30.74 Vested into shares (8,531) 25.94 Outstanding at December 31, 2023 10,642 $ 31.93 |
CAPITAL REQUIREMENTS AND REST_2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2023 Total capital (to RWA) Company $ 1,500,703 13.18 % $ 910,897 8.0 % n/a n/a Bank 1,467,960 12.90 910,363 8.0 $ 1,137,953 10.0 % Tier 1 capital (to RWA) Company 1,202,252 10.56 683,098 6.0 n/a n/a Bank 1,368,384 12.03 682,486 6.0 909,981 8.0 CET1 (to RWA) Company 1,172,362 10.29 512,695 4.5 n/a n/a Bank 1,368,384 12.03 511,864 4.5 739,360 6.5 Tier 1 capital (to average assets) Company 1,202,252 10.03 479,462 4.0 n/a n/a Bank 1,368,384 11.43 478,875 4.0 598,593 5.0 As of December 31, 2022 Total capital (to RWA) Company $ 1,395,904 11.63 % $ 960,209 8.0 % n/a n/a Bank 1,368,082 11.41 959,216 8.0 $ 1,199,020 10.0 % Tier 1 capital (to RWA) Company 1,121,021 9.34 720,142 6.0 n/a n/a Bank 1,291,288 10.77 719,381 6.0 959,174 8.0 CET1 (to RWA) Company 1,091,353 9.09 540,274 4.5 n/a n/a Bank 1,291,288 10.77 539,535 4.5 779,329 6.5 Tier 1 capital (to average assets) Company 1,121,021 9.82 456,628 4.0 n/a n/a Bank 1,291,288 11.32 456,286 4.0 570,357 5.0 |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheets | Balance Sheet December 31, 2023 2022 Assets Cash and cash equivalents $ 25,728 $ 18,278 Investment in subsidiaries 1,728,364 1,650,727 Other assets 17,088 13,043 Total assets $ 1,771,180 $ 1,682,048 Liabilities and Stockholders’ Equity Other liabilities $ 10,074 $ 3,500 Other borrowings 229,783 228,775 Total liabilities 239,857 232,275 Stockholders’ equity Common stock $ 610 $ 607 Additional paid-in capital 1,317,516 1,306,852 Retained earnings 444,242 379,299 Accumulated other comprehensive income (63,463) (69,403) Treasury stock (167,582) (167,582) Total stockholders’ equity 1,531,323 1,449,773 Total liabilities and stockholders’ equity $ 1,771,180 $ 1,682,048 |
Statements of Income | Statements of Income Year Ended December 31, 2023 2022 2021 Cash dividends from subsidiary $ 60,000 $ 35,000 $ 8,440 Excess of earnings over dividend from subsidiary 59,647 121,350 142,289 Other 79 43 43 119,726 156,393 150,772 Interest on borrowings 12,352 11,156 12,426 Salaries and employee benefits 770 685 668 Other 1,364 891 1,057 14,486 12,732 14,151 Earnings before income tax benefit 105,240 143,661 136,621 Income tax benefit (3,021) (2,654) (2,963) Net income $ 108,261 $ 146,315 $ 139,584 |
Statements of Cash Flows | Statements of Cash Flows Year Ended December 31, 2023 2022 2021 Cash flows from operating activities: Net income $ 108,261 $ 146,315 $ 139,584 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization of debt discount and debt issuance costs, net 786 790 817 Equity in undistributed net income of Bank (59,647) (121,350) (142,289) (Increase) decrease in other assets (5,552) (7,801) 902 Decrease (increase) in other liabilities 8,303 504 (3,177) Net cash provided by (used in) operating activities 52,151 18,458 (4,163) Cash flows from investing activities: Advances to subsidiaries — (154,610) — Net cash used in investing activities — (154,610) — Cash flows from financing activities: Net proceeds from sale of common stock in public offering — 154,415 — Proceeds from exercise of stock warrants — — 165 Redemption of subordinated debt — — (35,000) Proceeds from exercise of employee stock options 924 1,160 6,313 Payments to tax authorities for stock-based compensation (2,307) (3,363) (725) Repurchase of treasury stock — — (15,509) Dividends paid (43,318) (42,289) (36,543) Net cash (used in) provided by financing activities (44,701) 109,923 (81,299) Net increase (decrease) in cash and cash equivalents 7,450 (26,229) (85,462) Cash and cash equivalents at beginning of year 18,278 44,507 129,969 Cash and cash equivalents at end of year $ 25,728 $ 18,278 $ 44,507 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Nature of Organization (Details) | 12 Months Ended |
Dec. 31, 2023 branch | |
Dallas-Fort Worth | |
Product Information [Line Items] | |
Number of branches | 18 |
Houston | |
Product Information [Line Items] | |
Number of branches | 11 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Segment Reporting (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment loss, equity securities | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Option (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Fair value, option, change in fair value of government guaranteed loans and PPP loans | $ (4,417) | $ (1,072) | $ 1,845 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Gain on Sale of Guaranteed Portion of SBA Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Gain (loss) on sale of government guaranteed loans | $ 15,565 | $ 12,988 | $ 6,194 |
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 ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jul. 16, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||
Purchases of equity method securities | $ 0 | $ 0 | $ 54,970 | |
Goodwill | 404,452 | $ 404,452 | $ 403,771 | |
Thrive Mortgage, LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 49% | |||
Purchases of equity method securities | $ 54,914 | |||
Goodwill | $ 35,816 | |||
Impairment | $ 29,400 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Bank Premises and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | Buildings 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 | Buildings 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_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges | $ 0 | $ 0 | $ 0 |
Core deposit intangible | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 7 years | ||
Core deposit intangible | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful live | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Marketing Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Marketing expense | $ 8,704 | $ 7,179 | $ 5,344 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Income tax, penalties and interest expense | $ 103 | $ 22 | $ 126 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings (numerator) | |||
Net income | $ 108,261 | $ 146,315 | $ 139,584 |
Shares (denominator) | |||
Weighted average shares outstanding for basic EPS (in shares) | 54,256,000 | 53,170,000 | 49,405,000 |
Dilutive effect of employee stock-based awards (in shares) | 340,000 | 782,000 | 947,000 |
Adjusted weighted average shares outstanding (in shares) | 54,596,000 | 53,952,000 | 50,352,000 |
EPS: | |||
Basic (in dollars per share) | $ 2 | $ 2.75 | $ 2.83 |
Diluted (in dollars per share) | $ 1.98 | $ 2.71 | $ 2.77 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 1,268,000 | 177 | 29 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 604,000 | ||
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Excluded from diluted EPS weighted average shares (in shares) | 664,000 |
SUPPLEMENTAL STATEMENT OF CAS_3
SUPPLEMENTAL STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Disclosures of Cash Flow Information: | |||
Cash paid for interest | $ 294,539 | $ 77,298 | $ 37,139 |
Cash paid for income taxes | 53,584 | 36,165 | 14,349 |
Supplemental Disclosures of Non-Cash Flow Information: | |||
Setup of ROU asset and lease liability | 7,492 | 0 | 6,232 |
Contingent consideration in connection with acquisitions | 0 | 0 | 5,000 |
Transfer of AFS debt securities to HTM debt securities | 0 | 117,001 | 0 |
Net foreclosure of OREO and repossessed assets | 0 | 0 | 334 |
LHI transferred to LHFS | 10,500 | 0 | 10,890 |
Noncash assets acquired | |||
LHI | 0 | (681) | 29,338 |
Intangible assets, net | 0 | 0 | 13,913 |
Goodwill | 0 | 681 | 32,931 |
Other assets | 0 | 0 | 690 |
Total assets | 0 | 0 | 76,872 |
Noncash liabilities assumed | |||
Accounts payable and other liabilities | 0 | 0 | 16,350 |
Total liabilities | $ 0 | $ 0 | $ 16,350 |
SHARE TRANSACTIONS (Details)
SHARE TRANSACTIONS (Details) - USD ($) | 12 Months Ended | |||||
Mar. 14, 2022 | Mar. 10, 2022 | Mar. 08, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||||
Net proceeds on sale of common stock in public offering | $ 154,372,000 | $ 0 | $ 154,415,000 | $ 0 | ||
Public Offering | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 3,947,369 | |||||
Sale of stock, price per share (in dollars per share) | $ 38 | $ 38 | ||||
Over-Allotment Option | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of stock, number of shares issued in transaction (in shares) | 367,105 | |||||
Common Stock | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 250,000,000 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) investment Security | Dec. 31, 2022 USD ($) Security investment | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | ||||
Equity securities | $ 9,897,000 | $ 9,792,000 | ||
Realized gain (loss) on equity securities | 0 | 0 | $ 0 | |
Equity securities without a readily determinable fair value | 11,624,000 | 10,072,000 | ||
Securities purchased under agreement to resell | 0 | |||
Interest income, securities purchased under agreements to resell | $ 0 | $ 1,386,000 | ||
Transfer from AFS to HTM at fair value | Security | 0 | 25 | ||
Aggregate fair value of AFS transferred | $ 117,001,000 | |||
Net unrealized holding gain | $ 3,122,000 | $ 3,790,000 | ||
Number of investment positions in an unrealized loss position | investment | 142 | 175 |
SECURITIES - Securities (Detail
SECURITIES - Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Unrealized gain (loss) recognized on equity securities with a readily determinable fair value | $ 105 | $ (1,246) | $ (325) |
SECURITIES - Carrying Amount an
SECURITIES - Carrying Amount and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
AFS | ||
Amortized cost | $ 1,161,178 | $ 1,195,694 |
Gross unrealized gains | 11,251 | 1,760 |
Gross unrealized losses | 95,790 | 101,162 |
ACL | 0 | 0 |
Fair Value | 1,076,639 | 1,096,292 |
HTM | ||
Amortized cost | 180,403 | 186,168 |
Gross unrealized gains | 86 | 6 |
Gross unrealized losses | 20,468 | 27,393 |
ACL | 0 | 0 |
Fair Value | 160,021 | 158,781 |
Corporate bonds | ||
AFS | ||
Amortized cost | 244,652 | 268,179 |
Gross unrealized gains | 1,034 | 1,445 |
Gross unrealized losses | 29,566 | 17,379 |
ACL | 0 | 0 |
Fair Value | 216,120 | 252,245 |
Municipal securities | ||
AFS | ||
Amortized cost | 46,631 | 49,886 |
Gross unrealized gains | 108 | 3 |
Gross unrealized losses | 3,258 | 4,198 |
ACL | 0 | 0 |
Fair Value | 43,481 | 45,691 |
HTM | ||
Amortized cost | 112,204 | 113,657 |
Gross unrealized gains | 86 | 6 |
Gross unrealized losses | 9,864 | 14,756 |
ACL | 0 | 0 |
Fair Value | 102,426 | 98,907 |
Mortgage-backed securities | ||
AFS | ||
Amortized cost | 194,486 | 156,408 |
Gross unrealized gains | 4,430 | 23 |
Gross unrealized losses | 13,465 | 17,420 |
ACL | 0 | 0 |
Fair Value | 185,451 | 139,011 |
HTM | ||
Amortized cost | 33,716 | 36,342 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 6,037 | 6,753 |
ACL | 0 | 0 |
Fair Value | 27,679 | 29,589 |
Collateralized mortgage obligations | ||
AFS | ||
Amortized cost | 563,421 | 609,456 |
Gross unrealized gains | 4,634 | 0 |
Gross unrealized losses | 46,999 | 55,850 |
ACL | 0 | 0 |
Fair Value | 521,056 | 553,606 |
HTM | ||
Amortized cost | 34,483 | 36,169 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 4,567 | 5,884 |
ACL | 0 | 0 |
Fair Value | 29,916 | 30,285 |
Asset-backed securities | ||
AFS | ||
Amortized cost | 47,738 | 42,015 |
Gross unrealized gains | 1,045 | 289 |
Gross unrealized losses | 2,130 | 2,613 |
ACL | 0 | 0 |
Fair Value | 46,653 | 39,691 |
Collateralized loan obligations | ||
AFS | ||
Amortized cost | 64,250 | 69,750 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 372 | 3,702 |
ACL | 0 | 0 |
Fair Value | $ 63,878 | $ 66,048 |
SECURITIES - Unrealized Loss Po
SECURITIES - Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
AFS Fair Value | ||
Less than 12 months | $ 50,792 | $ 868,558 |
12 months or more | 780,455 | 171,941 |
Totals | 831,247 | 1,040,499 |
AFS Unrealized Loss | ||
Less than 12 months | 7,574 | 72,521 |
12 months or more | 88,216 | 28,641 |
Totals | 95,790 | 101,162 |
HTM Fair Value | ||
Less than 12 months | 7,845 | 111,760 |
12 months or more | 137,308 | 42,944 |
Totals | 145,153 | 154,704 |
HTM Unrealized Loss | ||
Less than 12 months | 270 | 16,172 |
12 months or more | 20,198 | 11,221 |
Totals | 20,468 | 27,393 |
Corporate bonds | ||
AFS Fair Value | ||
Less than 12 months | 34,989 | 33,919 |
12 months or more | 162,148 | 8,813 |
Totals | 197,137 | 42,732 |
AFS Unrealized Loss | ||
Less than 12 months | 5,970 | 848 |
12 months or more | 23,596 | 3,350 |
Totals | 29,566 | 4,198 |
Municipal securities | ||
AFS Fair Value | ||
Less than 12 months | 6,792 | 197,946 |
12 months or more | 22,052 | 15,568 |
Totals | 28,844 | 213,514 |
AFS Unrealized Loss | ||
Less than 12 months | 45 | 15,697 |
12 months or more | 3,213 | 1,682 |
Totals | 3,258 | 17,379 |
HTM Fair Value | ||
Less than 12 months | 7,845 | 85,671 |
12 months or more | 79,713 | 9,161 |
Totals | 87,558 | 94,832 |
HTM Unrealized Loss | ||
Less than 12 months | 270 | 11,411 |
12 months or more | 9,594 | 3,345 |
Totals | 9,864 | 14,756 |
Mortgage-backed securities | ||
AFS Fair Value | ||
Less than 12 months | 0 | 115,467 |
12 months or more | 104,486 | 22,780 |
Totals | 104,486 | 138,247 |
AFS Unrealized Loss | ||
Less than 12 months | 0 | 11,104 |
12 months or more | 13,465 | 6,317 |
Totals | 13,465 | 17,421 |
HTM Fair Value | ||
Less than 12 months | 0 | 804 |
12 months or more | 27,679 | 28,784 |
Totals | 27,679 | 29,588 |
HTM Unrealized Loss | ||
Less than 12 months | 0 | 85 |
12 months or more | 6,037 | 6,668 |
Totals | 6,037 | 6,753 |
Collateralized mortgage obligations | ||
AFS Fair Value | ||
Less than 12 months | 0 | 482,358 |
12 months or more | 419,044 | 71,198 |
Totals | 419,044 | 553,556 |
AFS Unrealized Loss | ||
Less than 12 months | 0 | 42,553 |
12 months or more | 46,999 | 13,296 |
Totals | 46,999 | 55,849 |
HTM Fair Value | ||
Less than 12 months | 0 | 25,285 |
12 months or more | 29,916 | 4,999 |
Totals | 29,916 | 30,284 |
HTM Unrealized Loss | ||
Less than 12 months | 0 | 4,676 |
12 months or more | 4,567 | 1,208 |
Totals | 4,567 | 5,884 |
Asset-backed securities | ||
AFS Fair Value | ||
Less than 12 months | 9,011 | 15,195 |
12 months or more | 8,847 | 11,207 |
Totals | 17,858 | 26,402 |
AFS Unrealized Loss | ||
Less than 12 months | 1,559 | 991 |
12 months or more | 571 | 1,621 |
Totals | 2,130 | 2,612 |
Collateralized loan obligations | ||
AFS Fair Value | ||
Less than 12 months | 0 | 23,673 |
12 months or more | 63,878 | 42,375 |
Totals | 63,878 | 66,048 |
AFS Unrealized Loss | ||
Less than 12 months | 0 | 1,328 |
12 months or more | 372 | 2,375 |
Totals | $ 372 | $ 3,703 |
SECURITIES - Maturities (Detail
SECURITIES - Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available For Sale Amortized Cost | ||
Due in one year or less | $ 2,018 | |
Due from one year to five years | 46,645 | $ 53,692 |
Due from five years to ten years | 188,526 | 205,911 |
Due after ten years | 54,094 | 58,462 |
Total investment securities available for sale, single maturity date | 291,283 | 318,065 |
Amortized cost | 1,161,178 | 1,195,694 |
Available For Sale Fair value | ||
Due in one year or less | 1,906 | |
Due from one year to five years | 46,682 | 54,179 |
Due from five years to ten years | 163,397 | 190,406 |
Due after ten years | 47,616 | 53,351 |
Total investment securities available for sale | 259,601 | 297,936 |
Fair value | 1,076,639 | 1,096,292 |
Held-to-Maturity Amortized Cost | ||
Due in one year or less | 0 | |
Due from one year to five years | 4,445 | 0 |
Due from five years to ten years | 12,806 | 8,275 |
Due after ten years | 94,953 | 105,382 |
Total investment securities held to maturity, single maturity date | 112,204 | 113,657 |
Amortized cost | 180,403 | 186,168 |
Held-to-Maturity Fair Value | ||
Due in one year or less | 0 | |
Due from one year to five years | 4,448 | 0 |
Due from five years to ten years | 12,628 | 8,129 |
Due after ten years | 85,350 | 90,778 |
Total investment securities held to maturity | 102,426 | 98,907 |
Fair value | 160,021 | 158,781 |
Mortgage-backed securities and collateralized mortgage obligations | ||
Available For Sale Amortized Cost | ||
Amortized cost | 757,907 | 765,864 |
Amortized cost | 194,486 | 156,408 |
Available For Sale Fair value | ||
Fair value | 706,507 | 692,617 |
Fair value | 185,451 | 139,011 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 68,199 | 72,511 |
Amortized cost | 33,716 | 36,342 |
Held-to-Maturity Fair Value | ||
Fair value | 57,595 | 59,874 |
Asset-backed securities | ||
Available For Sale Amortized Cost | ||
Amortized cost | 47,738 | 42,015 |
Amortized cost | 47,738 | 42,015 |
Available For Sale Fair value | ||
Fair value | 46,653 | 39,691 |
Fair value | 46,653 | 39,691 |
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 | 64,250 | 69,750 |
Amortized cost | 64,250 | 69,750 |
Available For Sale Fair value | ||
Fair value | 63,878 | 66,048 |
Fair value | 63,878 | 66,048 |
Held-to-Maturity Amortized Cost | ||
Amortized cost | 0 | 0 |
Held-to-Maturity Fair Value | ||
Fair value | $ 0 | $ 0 |
SECURITIES - Proceeds From Sale
SECURITIES - Proceeds From Sale of Debt Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 109,793 | $ 0 | $ 13,300 |
Gross realized gains | 0 | 0 | 0 |
Gross realized losses | $ 5,321 | $ 0 | $ 188 |
LHI AND ACL - Balance Sheet Sum
LHI AND ACL - Balance Sheet Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans and Allowance for Loan Losses | ||||
Real Property | $ 9,501,624 | $ 9,593,125 | ||
Deferred loan fees, net | (18,973) | (8,785) | ||
ACL | (91,052) | (109,816) | $ (77,754) | $ (105,084) |
Total LHI, net | 9,391,599 | 9,474,524 | ||
Contractual principal balance | 8,260 | 5,334 | ||
Discount on retained loans from sale | 5,238 | 7,629 | ||
Real Estate | Construction and Land | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 1,787,400 | 1,734,254 | ||
ACL | (13,120) | (21,032) | (7,293) | (7,768) |
Real Estate | Farmland | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 43,500 | 31,114 | ||
ACL | (127) | (101) | (187) | (56) |
Real Estate | Residential Real Estate | ||||
Loans and Allowance for Loan Losses | ||||
Purchase of real estate loans | 223,924 | |||
Financing receivable, before allowance for credit loss | 162,632 | |||
Discount on retained loans from sale | 4,135 | 3,231 | ||
Real Estate | Residential Real Estate | 1 - 4 family residential | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 894,456 | 937,119 | ||
ACL | (9,533) | (9,539) | (5,982) | (8,148) |
Real Estate | Residential Real Estate | Multi-family residential | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 322,679 | 605,817 | ||
ACL | (2,607) | (4,882) | (2,664) | (6,231) |
Real Estate | Commercial Real Estate | OOCRE | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 715,829 | 794,088 | ||
ACL | (8,707) | (10,252) | (9,215) | (9,719) |
Real Estate | Commercial Real Estate | NOOCRE | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 2,341,379 | 2,350,725 | ||
ACL | (26,704) | (27,729) | (30,548) | (35,237) |
Commercial | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 2,942,348 | 2,752,063 | ||
ACL | (30,142) | (35,886) | (21,632) | (37,554) |
Mortgage warehouse | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 446,227 | 377,796 | ||
Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Real Property | 7,806 | 10,149 | ||
ACL | $ (112) | $ (135) | $ (233) | $ (371) |
LHI AND ACL - Allowance for Cre
LHI AND ACL - Allowance for Credit Loss Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of allowance for loan losses | |||
Balance at beginning of year | $ 91,052 | $ 77,754 | $ 105,084 |
Provision (benefit) for credit losses | 42,512 | 26,950 | (3,349) |
Charge-offs | (25,366) | (16,072) | (26,390) |
Recoveries | 1,618 | 2,420 | 2,409 |
Ending Balance | 109,816 | 91,052 | 77,754 |
Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 42,360 | 32,828 | (25,862) |
PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 152 | (5,878) | 22,513 |
Real Estate | Construction and Land | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 13,120 | 7,293 | 7,768 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 21,032 | 13,120 | 7,293 |
Real Estate | Construction and Land | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 7,958 | 5,855 | (547) |
Real Estate | Construction and Land | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | (46) | (28) | 72 |
Real Estate | Farmland | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 127 | 187 | 56 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 101 | 127 | 187 |
Real Estate | Farmland | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | (26) | (60) | 131 |
Real Estate | Farmland | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 0 | 0 | 0 |
Real Estate | Residential Real Estate | 1 - 4 family residential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 9,533 | 5,982 | 8,148 |
Charge-offs | (21) | 0 | (379) |
Recoveries | 3 | 31 | 64 |
Ending Balance | 9,539 | 9,533 | 5,982 |
Real Estate | Residential Real Estate | 1 - 4 family residential | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 26 | 3,757 | (2,153) |
Real Estate | Residential Real Estate | 1 - 4 family residential | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | (2) | (237) | 302 |
Real Estate | Residential Real Estate | Multi-family residential | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 2,607 | 2,664 | 6,231 |
Charge-offs | (192) | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 4,882 | 2,607 | 2,664 |
Real Estate | Residential Real Estate | Multi-family residential | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 2,467 | (57) | (3,567) |
Real Estate | Residential Real Estate | Multi-family residential | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 0 | 0 | 0 |
Real Estate | Commercial Real Estate | OOCRE | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 8,707 | 9,215 | 9,719 |
Charge-offs | (855) | (2,646) | (2,400) |
Recoveries | 0 | 271 | 500 |
Ending Balance | 10,252 | 8,707 | 9,215 |
Real Estate | Commercial Real Estate | OOCRE | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 2,352 | 4,633 | (2,325) |
Real Estate | Commercial Real Estate | OOCRE | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 48 | (2,766) | 3,721 |
Real Estate | Commercial Real Estate | NOOCRE | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 26,704 | 30,548 | 35,237 |
Charge-offs | (13,649) | (2,410) | (7,936) |
Recoveries | 350 | 725 | 0 |
Ending Balance | 27,729 | 26,704 | 30,548 |
Real Estate | Commercial Real Estate | NOOCRE | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 13,706 | (2,588) | (7,490) |
Real Estate | Commercial Real Estate | NOOCRE | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 618 | 429 | 10,737 |
Commercial | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 30,142 | 21,632 | 37,554 |
Charge-offs | (10,413) | (9,731) | (15,576) |
Recoveries | 1,165 | 1,308 | 1,542 |
Ending Balance | 35,886 | 30,142 | 21,632 |
Commercial | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 15,458 | 18,933 | (9,510) |
Commercial | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | (466) | (2,000) | 7,622 |
Mortgage Warehouse | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 260 | 0 | 0 |
Mortgage Warehouse | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 260 | 0 | 0 |
Mortgage Warehouse | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 0 | 0 | 0 |
Consumer | |||
Analysis of allowance for loan losses | |||
Balance at beginning of year | 112 | 233 | 371 |
Charge-offs | (236) | (1,285) | (99) |
Recoveries | 100 | 85 | 303 |
Ending Balance | 135 | 112 | 233 |
Consumer | Non-PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | 159 | 2,355 | (401) |
Consumer | PCD Loans | |||
Analysis of allowance for loan losses | |||
Provision (benefit) for credit losses | $ 0 | $ (1,276) | $ 59 |
LHI AND ACL - Collateral Depend
LHI AND ACL - Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | $ 9,593,125 | $ 9,501,624 | ||
ACL Allocation | 109,816 | 91,052 | $ 77,754 | $ 105,084 |
Real Estate | Commercial Real Estate | OOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 794,088 | 715,829 | ||
ACL Allocation | 10,252 | 8,707 | 9,215 | 9,719 |
Real Estate | Commercial Real Estate | NOOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 2,350,725 | 2,341,379 | ||
ACL Allocation | 27,729 | 26,704 | 30,548 | 35,237 |
Commercial | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 2,752,063 | 2,942,348 | ||
ACL Allocation | 35,886 | 30,142 | 21,632 | 37,554 |
Consumer | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 10,149 | 7,806 | ||
ACL Allocation | 135 | 112 | $ 233 | $ 371 |
Real Estate | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 44,939 | 23,344 | ||
Real Estate | Real Estate | Commercial Real Estate | OOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 3,059 | 1,193 | ||
Real Estate | Real Estate | Commercial Real Estate | NOOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 21,169 | 20,896 | ||
Real Estate | Commercial | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 20,711 | 1,240 | ||
Real Estate | Consumer | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
Real Property | 0 | 15 | ||
Collateral Pledged | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
ACL Allocation | 3,386 | 2,663 | ||
Collateral Pledged | Real Estate | Commercial Real Estate | OOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
ACL Allocation | 47 | 129 | ||
Collateral Pledged | Real Estate | Commercial Real Estate | NOOCRE | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
ACL Allocation | 0 | 2,138 | ||
Collateral Pledged | Commercial | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
ACL Allocation | 3,339 | 396 | ||
Collateral Pledged | Consumer | ||||
Servicing Asset at Amortized Cost [Line Items] | ||||
ACL Allocation | $ 0 | $ 0 |
LHI AND ACL - Nonaccrual (Detai
LHI AND ACL - Nonaccrual (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Loans and Allowance for Loan Losses | ||
Nonaccrual | $ 92,848 | $ 43,542 |
Nonaccrual With No ACL | 62,364 | 25,275 |
Financing receivable, nonaccrual, interest income | 6,470 | 6,567 |
Commercial | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 40,868 | 11,397 |
Nonaccrual With No ACL | 10,610 | 2,521 |
Consumer | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 24 | 169 |
Nonaccrual With No ACL | 24 | 169 |
Construction and Land | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 6,793 | 0 |
Nonaccrual With No ACL | 6,793 | 0 |
1 - 4 family residential | Residential Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 1,965 | 862 |
Nonaccrual With No ACL | 1,965 | 862 |
OOCRE | Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 9,719 | 9,737 |
Nonaccrual With No ACL | 9,493 | 8,545 |
NOOCRE | Commercial Real Estate | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual | 33,479 | 21,377 |
Nonaccrual With No ACL | 33,479 | 13,178 |
PCD Loans | ||
Loans and Allowance for Loan Losses | ||
Nonaccrual With No ACL | $ 13,715 | $ 13,178 |
LHI AND ACL - Past Due (Details
LHI AND ACL - Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Non-Accrual and Past Due Loans | ||
Real Property | $ 9,593,125 | $ 9,501,624 |
Total 90 days past due and still accruing | 2,975 | 125 |
Nonaccrual With No ACL | 62,364 | 25,275 |
PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 36,305 | 39,013 |
Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 110,839 | 48,300 |
30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 56,492 | 18,378 |
60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 4,685 | 5,614 |
90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 49,662 | 24,308 |
Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 9,445,981 | 9,414,311 |
Real Estate | Construction and Land | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,734,254 | 1,787,400 |
Total 90 days past due and still accruing | 0 | 0 |
Nonaccrual With No ACL | 6,793 | 0 |
Real Estate | Construction and Land | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,544 | |
Real Estate | Construction and Land | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 36,172 | 3,232 |
Real Estate | Construction and Land | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 29,379 | 1,121 |
Real Estate | Construction and Land | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 2,111 |
Real Estate | Construction and Land | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 6,793 | 0 |
Real Estate | Construction and Land | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,698,082 | 1,782,624 |
Real Estate | Farmland | ||
Non-Accrual and Past Due Loans | ||
Real Property | 31,114 | 43,500 |
Total 90 days past due and still accruing | 0 | 0 |
Real Estate | Farmland | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Farmland | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Farmland | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Farmland | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Farmland | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 31,114 | 43,500 |
Real Estate | 1 - 4 family residential | Residential Real Estate | ||
Non-Accrual and Past Due Loans | ||
Real Property | 937,119 | 894,456 |
Total 90 days past due and still accruing | 1,726 | 123 |
Nonaccrual With No ACL | 1,965 | 862 |
Real Estate | 1 - 4 family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,130 | 1,180 |
Real Estate | 1 - 4 family residential | Residential Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 10,585 | 4,947 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 4,359 | 4,319 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,535 | 129 |
Real Estate | 1 - 4 family residential | Residential Real Estate | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 3,691 | 499 |
Real Estate | 1 - 4 family residential | Residential Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 925,404 | 888,329 |
Real Estate | Multi-family residential | Residential Real Estate | ||
Non-Accrual and Past Due Loans | ||
Real Property | 605,817 | 322,679 |
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 | ||
Real Property | 15,095 | 1,000 |
Real Estate | Multi-family residential | Residential Real Estate | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 15,095 | 1,000 |
Real Estate | Multi-family residential | Residential Real Estate | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Real Estate | Multi-family residential | Residential Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 590,722 | 321,679 |
Real Estate | OOCRE | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Real Property | 794,088 | 715,829 |
Total 90 days past due and still accruing | 466 | 0 |
Nonaccrual With No ACL | 9,493 | 8,545 |
Real Estate | OOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 18,170 | 19,817 |
Real Estate | OOCRE | Commercial Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 11,215 | 5,721 |
Real Estate | OOCRE | Commercial Real Estate | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 916 | 3,342 |
Real Estate | OOCRE | Commercial Real Estate | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 114 | 1,186 |
Real Estate | OOCRE | Commercial Real Estate | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 10,185 | 1,193 |
Real Estate | OOCRE | Commercial Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 764,703 | 690,291 |
Real Estate | NOOCRE | Commercial Real Estate | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,350,725 | 2,341,379 |
Total 90 days past due and still accruing | 783 | 0 |
Nonaccrual With No ACL | 33,479 | 13,178 |
Real Estate | NOOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 14,084 | 12,748 |
Real Estate | NOOCRE | Commercial Real Estate | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 24,371 | 26,052 |
Real Estate | NOOCRE | Commercial Real Estate | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 3,182 | 5,156 |
Real Estate | NOOCRE | Commercial Real Estate | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 642 | 0 |
Real Estate | NOOCRE | Commercial Real Estate | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 20,547 | 20,896 |
Real Estate | NOOCRE | Commercial Real Estate | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,312,270 | 2,302,579 |
Commercial | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,752,063 | 2,942,348 |
Total 90 days past due and still accruing | 0 | 0 |
Nonaccrual With No ACL | 10,610 | 2,521 |
Commercial | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,908 | 3,701 |
Commercial | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 13,325 | 6,951 |
Commercial | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 3,485 | 3,088 |
Commercial | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,394 | 2,188 |
Commercial | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 8,446 | 1,675 |
Commercial | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,735,830 | 2,931,696 |
Mortgage warehouse | ||
Non-Accrual and Past Due Loans | ||
Real Property | 377,796 | 446,227 |
Total 90 days past due and still accruing | 0 | 0 |
Mortgage warehouse | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Mortgage warehouse | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Mortgage warehouse | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Mortgage warehouse | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Mortgage warehouse | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 377,796 | 446,227 |
Consumer | ||
Non-Accrual and Past Due Loans | ||
Real Property | 10,149 | 7,806 |
Total 90 days past due and still accruing | 0 | 2 |
Nonaccrual With No ACL | 24 | 169 |
Consumer | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 13 | 23 |
Consumer | Total Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 76 | 397 |
Consumer | 30-59 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 76 | 352 |
Consumer | 60-89 Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Consumer | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 45 |
Consumer | Total Current | ||
Non-Accrual and Past Due Loans | ||
Real Property | 10,060 | 7,386 |
Financial Asset Acquired with Credit Deterioration | ||
Non-Accrual and Past Due Loans | ||
Nonaccrual With No ACL | 13,715 | 13,178 |
Financial Asset Acquired with Credit Deterioration | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 36,305 | 39,013 |
Financial Asset Acquired with Credit Deterioration | 90+ Days Past Due | ||
Non-Accrual and Past Due Loans | ||
Total 90 days past due and still accruing | 676 | 2,004 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Construction and Land | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 1,544 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Farmland | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | 1 - 4 family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 1,130 | 1,180 |
Financial Asset Acquired with Credit Deterioration | Real Estate | Multi-family residential | Residential Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Real Estate | OOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 18,170 | 19,817 |
Financial Asset Acquired with Credit Deterioration | Real Estate | NOOCRE | Commercial Real Estate | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 14,084 | 12,748 |
Financial Asset Acquired with Credit Deterioration | Commercial | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 2,908 | 3,701 |
Financial Asset Acquired with Credit Deterioration | Mortgage warehouse | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | 0 | 0 |
Financial Asset Acquired with Credit Deterioration | Consumer | PCD | ||
Non-Accrual and Past Due Loans | ||
Real Property | $ 13 | $ 23 |
LHI and ACL - Trouble Debt Rest
LHI and ACL - Trouble Debt Restructuring (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | $ 88,036 |
30-59 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
60-89 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
90+ Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 1,387 |
Commercial | Commercial Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 23,346 |
Commercial | Commercial Real Estate | 30-59 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
Commercial | Commercial Real Estate | 60-89 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
Commercial | Commercial Real Estate | 90+ Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 1,387 |
1 - 4 family residential | Real Estate | Residential Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 41,066 |
1 - 4 family residential | Real Estate | Residential Real Estate | 30-59 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
1 - 4 family residential | Real Estate | Residential Real Estate | 60-89 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
1 - 4 family residential | Real Estate | Residential Real Estate | 90+ Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
NOOCRE | Real Estate | Commercial Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 23,624 |
NOOCRE | Real Estate | Commercial Real Estate | 30-59 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
NOOCRE | Real Estate | Commercial Real Estate | 60-89 Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
NOOCRE | Real Estate | Commercial Real Estate | 90+ Days Past Due | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 0 |
Interest Rate Reduction | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | 48,357 |
Interest Rate Reduction | Commercial | Commercial Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | $ 24,733 |
Financing receivable, troubled debt restructuring, postmodification percentage (in percent) | 0.90% |
Interest Rate Reduction | 1 - 4 family residential | Real Estate | Residential Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | $ 41,066 |
Financing receivable, troubled debt restructuring, postmodification percentage (in percent) | 4.40% |
Interest Rate Reduction | NOOCRE | Real Estate | Commercial Real Estate | |
Troubled Debt Restructuring | |
Financing receivable, troubled debt restructuring, postmodification | $ 23,624 |
Financing receivable, troubled debt restructuring, postmodification percentage (in percent) | 1% |
Contractual Interest Rate Reduction | Real Estate | Residential Real Estate | Minimum | |
Troubled Debt Restructuring | |
Weighted-average contractual interest rate (in percent) | 7.50% |
Contractual Interest Rate Reduction | Real Estate | Residential Real Estate | Maximum | |
Troubled Debt Restructuring | |
Weighted-average contractual interest rate (in percent) | 6% |
LHI and ACL - Narrative (Detail
LHI and ACL - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) loan | Dec. 31, 2022 loan | |
Receivables [Abstract] | ||
Financing receivable, modified, subsequent default | $ | $ 0 | |
Financing receivable, modifications, number of contracts | loan | 0 | 0 |
LHI AND ACL - Credit Quality In
LHI AND ACL - Credit Quality Indicators (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Total consumer loans held for investment | |||
Year one | $ 701,008 | $ 1,993,914 | |
Year two | 2,326,877 | 1,792,050 | |
Year three | 1,747,195 | 1,017,699 | |
Year four | 816,093 | 431,810 | |
Year five | 359,111 | 479,768 | |
Prior | 1,149,311 | 935,168 | |
Revolving Loans Amortized Cost Basis | 2,474,545 | 2,849,209 | |
Revolving Loans Converted to Term | 18,985 | 2,006 | |
Total | 9,593,125 | 9,501,624 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 2,187 | ||
2021 | 2 | ||
2020 | 2,941 | ||
2019 | 1,301 | ||
Prior | 18,935 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 25,366 | 16,072 | $ 26,390 |
Deferred loan fees, net | (8,785) | (18,973) | |
Pass | |||
Total consumer loans held for investment | |||
Year one | 685,978 | 1,976,020 | |
Year two | 2,256,151 | 1,766,159 | |
Year three | 1,691,168 | 985,767 | |
Year four | 780,120 | 398,380 | |
Year five | 281,293 | 391,505 | |
Prior | 888,687 | 786,325 | |
Revolving Loans Amortized Cost Basis | 2,446,493 | 2,677,207 | |
Revolving Loans Converted to Term | 18,876 | 1,884 | |
Total | 9,048,766 | 8,983,247 | |
Special mention | |||
Total consumer loans held for investment | |||
Year one | 14,390 | 0 | |
Year two | 33,846 | 21,649 | |
Year three | 46,238 | 26,743 | |
Year four | 31,174 | 25,971 | |
Year five | 70,577 | 19,659 | |
Prior | 101,508 | 55,504 | |
Revolving Loans Amortized Cost Basis | 12,279 | 142,141 | |
Revolving Loans Converted to Term | 35 | 45 | |
Total | 310,047 | 291,712 | |
Substandard | |||
Total consumer loans held for investment | |||
Year one | 640 | 17,894 | |
Year two | 36,880 | 4,242 | |
Year three | 9,789 | 5,189 | |
Year four | 4,799 | 7,459 | |
Year five | 7,241 | 55,634 | |
Prior | 122,811 | 67,296 | |
Revolving Loans Amortized Cost Basis | 15,773 | 29,861 | |
Revolving Loans Converted to Term | 74 | 77 | |
Total | 198,007 | 187,652 | |
PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 12,970 | |
Prior | 36,305 | 26,043 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 36,305 | 39,013 | |
Commercial | |||
Total consumer loans held for investment | |||
Year one | 320,163 | 490,978 | |
Year two | 415,270 | 137,120 | |
Year three | 103,529 | 95,732 | |
Year four | 39,640 | 92,734 | |
Year five | 47,302 | 58,642 | |
Prior | 74,707 | 39,699 | |
Revolving Loans Amortized Cost Basis | 1,750,299 | 2,026,813 | |
Revolving Loans Converted to Term | 1,153 | 630 | |
Total | 2,752,063 | 2,942,348 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 2,158 | ||
2021 | 0 | ||
2020 | 2,572 | ||
2019 | 1,083 | ||
Prior | 4,600 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 10,413 | 9,731 | 15,576 |
Commercial | Pass | |||
Total consumer loans held for investment | |||
Year one | 314,939 | 473,084 | |
Year two | 384,713 | 132,396 | |
Year three | 86,757 | 90,543 | |
Year four | 38,554 | 83,996 | |
Year five | 43,535 | 40,030 | |
Prior | 45,812 | 31,269 | |
Revolving Loans Amortized Cost Basis | 1,725,663 | 1,906,074 | |
Revolving Loans Converted to Term | 1,044 | 553 | |
Total | 2,641,017 | 2,757,945 | |
Commercial | Special mention | |||
Total consumer loans held for investment | |||
Year one | 4,584 | 0 | |
Year two | 13,583 | 666 | |
Year three | 12,794 | 0 | |
Year four | 541 | 4,543 | |
Year five | 0 | 7,385 | |
Prior | 10,144 | 270 | |
Revolving Loans Amortized Cost Basis | 9,392 | 114,447 | |
Revolving Loans Converted to Term | 35 | 0 | |
Total | 51,073 | 127,311 | |
Commercial | Substandard | |||
Total consumer loans held for investment | |||
Year one | 640 | 17,894 | |
Year two | 16,974 | 4,058 | |
Year three | 3,978 | 5,189 | |
Year four | 545 | 4,195 | |
Year five | 3,767 | 10,954 | |
Prior | 15,843 | 4,732 | |
Revolving Loans Amortized Cost Basis | 15,244 | 6,292 | |
Revolving Loans Converted to Term | 74 | 77 | |
Total | 57,065 | 53,391 | |
Commercial | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 273 | |
Prior | 2,908 | 3,428 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 2,908 | 3,701 | |
Mortgage warehouse | |||
Total consumer loans held for investment | |||
Year one | 1,905 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 46 | |
Prior | 0 | 162 | |
Revolving Loans Amortized Cost Basis | 375,891 | 446,019 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 377,796 | 446,227 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 0 | ||
Mortgage warehouse | Pass | |||
Total consumer loans held for investment | |||
Year one | 1,905 | 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 | 375,891 | 444,393 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 377,796 | 444,393 | |
Mortgage warehouse | Special mention | |||
Total consumer loans held for investment | |||
Year one | 0 | ||
Year two | 0 | ||
Year three | 0 | ||
Year four | 0 | ||
Year five | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 1,626 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 1,626 | ||
Mortgage warehouse | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | ||
Year two | 0 | ||
Year three | 0 | ||
Year four | 0 | ||
Year five | 46 | ||
Prior | 162 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 208 | ||
Consumer | |||
Total consumer loans held for investment | |||
Year one | 4,552 | 1,965 | |
Year two | 1,045 | 452 | |
Year three | 280 | 872 | |
Year four | 604 | 216 | |
Year five | 101 | 135 | |
Prior | 1,839 | 2,548 | |
Revolving Loans Amortized Cost Basis | 1,728 | 1,618 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 10,149 | 7,806 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 29 | ||
2021 | 2 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 205 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 236 | 1,285 | 99 |
Consumer | Pass | |||
Total consumer loans held for investment | |||
Year one | 4,552 | 1,965 | |
Year two | 1,045 | 452 | |
Year three | 276 | 872 | |
Year four | 604 | 216 | |
Year five | 89 | 135 | |
Prior | 1,678 | 2,298 | |
Revolving Loans Amortized Cost Basis | 1,728 | 1,618 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 9,972 | 7,556 | |
Consumer | Special mention | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 85 | 58 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 85 | 58 | |
Consumer | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 4 | 0 | |
Year four | 0 | 0 | |
Year five | 12 | 0 | |
Prior | 63 | 169 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 79 | 169 | |
Consumer | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 13 | 23 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 13 | 23 | |
Construction and Land | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 116,926 | 347,855 | |
Year two | 760,573 | 727,870 | |
Year three | 543,926 | 380,789 | |
Year four | 112,702 | 69,241 | |
Year five | 3,089 | 30,673 | |
Prior | 12,421 | 15,569 | |
Revolving Loans Amortized Cost Basis | 184,617 | 215,263 | |
Revolving Loans Converted to Term | 0 | 140 | |
Total | 1,734,254 | 1,787,400 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 0 | 0 | 0 |
Construction and Land | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 116,333 | 347,855 | |
Year two | 740,244 | 709,208 | |
Year three | 538,946 | 378,229 | |
Year four | 109,017 | 69,241 | |
Year five | 3,089 | 30,673 | |
Prior | 3,661 | 14,025 | |
Revolving Loans Amortized Cost Basis | 181,940 | 215,263 | |
Revolving Loans Converted to Term | 0 | 140 | |
Total | 1,693,230 | 1,764,634 | |
Construction and Land | Real Estate | Special mention | |||
Total consumer loans held for investment | |||
Year one | 593 | 0 | |
Year two | 13,782 | 18,662 | |
Year three | 4,980 | 2,560 | |
Year four | 3,439 | 0 | |
Year five | 0 | 0 | |
Prior | 8,760 | 0 | |
Revolving Loans Amortized Cost Basis | 2,677 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 34,231 | 21,222 | |
Construction and Land | Real Estate | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | ||
Year two | 6,547 | ||
Year three | 0 | ||
Year four | 246 | ||
Year five | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 6,793 | ||
Construction and Land | Real Estate | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | ||
Year two | 0 | ||
Year three | 0 | ||
Year four | 0 | ||
Year five | 0 | ||
Prior | 1,544 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 1,544 | ||
Farmland | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 2,531 | 2,546 | |
Year two | 4,398 | 16,242 | |
Year three | 0 | 18,530 | |
Year four | 17,999 | 21 | |
Year five | 15 | 0 | |
Prior | 4,944 | 5,069 | |
Revolving Loans Amortized Cost Basis | 1,227 | 1,092 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 31,114 | 43,500 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 0 | 0 | 0 |
Farmland | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 2,531 | 2,546 | |
Year two | 4,398 | 16,242 | |
Year three | 0 | 18,530 | |
Year four | 17,999 | 21 | |
Year five | 15 | 0 | |
Prior | 4,944 | 5,069 | |
Revolving Loans Amortized Cost Basis | 1,227 | 1,092 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 31,114 | 43,500 | |
Residential Real Estate | Single Family | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 77,021 | 135,006 | |
Year two | 141,499 | 188,819 | |
Year three | 194,816 | 87,861 | |
Year four | 79,767 | 43,293 | |
Year five | 38,695 | 41,960 | |
Prior | 273,262 | 260,254 | |
Revolving Loans Amortized Cost Basis | 114,804 | 136,537 | |
Revolving Loans Converted to Term | 17,255 | 726 | |
Total | 937,119 | 894,456 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 21 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 21 | 0 | 379 |
Residential Real Estate | Single Family | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 73,289 | 135,006 | |
Year two | 140,824 | 188,635 | |
Year three | 193,914 | 87,861 | |
Year four | 79,767 | 43,293 | |
Year five | 38,589 | 41,960 | |
Prior | 270,193 | 257,768 | |
Revolving Loans Amortized Cost Basis | 114,275 | 86,900 | |
Revolving Loans Converted to Term | 17,255 | 726 | |
Total | 928,106 | 842,149 | |
Residential Real Estate | Single Family | Real Estate | Special mention | |||
Total consumer loans held for investment | |||
Year one | 3,732 | 0 | |
Year two | 531 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 238 | 278 | |
Revolving Loans Amortized Cost Basis | 0 | 26,068 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 4,501 | 26,346 | |
Residential Real Estate | Single Family | Real Estate | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 144 | 184 | |
Year three | 902 | 0 | |
Year four | 0 | 0 | |
Year five | 106 | ||
Prior | 1,701 | 1,028 | |
Revolving Loans Amortized Cost Basis | 529 | 23,569 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 3,382 | 24,781 | |
Residential Real Estate | Single Family | Real Estate | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 1,130 | 1,180 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 1,130 | 1,180 | |
Residential Real Estate | Multi-family residential | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 9,441 | 72,044 | |
Year two | 82,040 | 80,793 | |
Year three | 257,714 | 110,426 | |
Year four | 196,575 | 10,356 | |
Year five | 8,054 | 46,566 | |
Prior | 41,366 | 2,494 | |
Revolving Loans Amortized Cost Basis | 10,627 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 605,817 | 322,679 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 192 | ||
Prior | 0 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 192 | 0 | 0 |
Residential Real Estate | Multi-family residential | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 9,441 | 72,044 | |
Year two | 82,040 | 80,793 | |
Year three | 257,714 | 110,426 | |
Year four | 196,575 | 8,402 | |
Year five | 8,054 | 32,822 | |
Prior | 14,570 | 2,494 | |
Revolving Loans Amortized Cost Basis | 10,627 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 579,021 | 306,981 | |
Residential Real Estate | Multi-family residential | Real Estate | Special mention | |||
Total consumer loans held for investment | |||
Year one | 0 | ||
Year two | 0 | ||
Year three | 0 | ||
Year four | 0 | ||
Year five | 0 | ||
Prior | 11,701 | ||
Revolving Loans Amortized Cost Basis | 0 | ||
Revolving Loans Converted to Term | 0 | ||
Total | 11,701 | ||
Residential Real Estate | Multi-family residential | Real Estate | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 1,954 | |
Year five | 0 | 13,744 | |
Prior | 15,095 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 15,095 | 15,698 | |
Commercial Real Estate | OOCRE | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 134,944 | 191,044 | |
Year two | 188,134 | 109,019 | |
Year three | 117,817 | 85,639 | |
Year four | 94,882 | 45,929 | |
Year five | 42,573 | 72,692 | |
Prior | 210,910 | 206,236 | |
Revolving Loans Amortized Cost Basis | 4,828 | 5,225 | |
Revolving Loans Converted to Term | 0 | 45 | |
Total | 794,088 | 715,829 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 369 | ||
2019 | 5 | ||
Prior | 481 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 855 | 2,646 | 2,400 |
Commercial Real Estate | OOCRE | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 129,463 | 191,044 | |
Year two | 178,777 | 106,698 | |
Year three | 113,207 | 84,230 | |
Year four | 90,219 | 43,965 | |
Year five | 39,876 | 49,461 | |
Prior | 166,270 | 167,968 | |
Revolving Loans Amortized Cost Basis | 4,618 | 5,225 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 722,430 | 648,591 | |
Commercial Real Estate | OOCRE | Real Estate | Special mention | |||
Total consumer loans held for investment | |||
Year one | 5,481 | 0 | |
Year two | 0 | 2,321 | |
Year three | 2,479 | 1,409 | |
Year four | 1,019 | 1,964 | |
Year five | 1,961 | 0 | |
Prior | 14,775 | 3,447 | |
Revolving Loans Amortized Cost Basis | 210 | 0 | |
Revolving Loans Converted to Term | 0 | 45 | |
Total | 25,925 | 9,186 | |
Commercial Real Estate | OOCRE | Real Estate | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 9,357 | 0 | |
Year three | 2,131 | 0 | |
Year four | 3,644 | 0 | |
Year five | 736 | 23,231 | |
Prior | 11,695 | 15,004 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 27,563 | 38,235 | |
Commercial Real Estate | OOCRE | Real Estate | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 0 | |
Prior | 18,170 | 19,817 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 18,170 | 19,817 | |
Commercial Real Estate | NOOCRE | Real Estate | |||
Total consumer loans held for investment | |||
Year one | 33,525 | 752,476 | |
Year two | 733,918 | 531,735 | |
Year three | 529,113 | 237,850 | |
Year four | 273,924 | 170,020 | |
Year five | 219,282 | 229,054 | |
Prior | 529,862 | 403,137 | |
Revolving Loans Amortized Cost Basis | 30,524 | 16,642 | |
Revolving Loans Converted to Term | 577 | 465 | |
Total | 2,350,725 | 2,341,379 | |
Total gross charge-offs | |||
2023 | 0 | ||
2022 | 0 | ||
2021 | 0 | ||
2020 | 0 | ||
2019 | 0 | ||
Prior | 13,649 | ||
Revolving Loans Amortized Cost Basis, Write Off | 0 | ||
Revolving Loans Converted to Term, Write Off | 0 | ||
Total | 13,649 | 2,410 | $ 7,936 |
Commercial Real Estate | NOOCRE | Real Estate | Pass | |||
Total consumer loans held for investment | |||
Year one | 33,525 | 752,476 | |
Year two | 724,110 | 531,735 | |
Year three | 500,354 | 215,076 | |
Year four | 247,385 | 149,246 | |
Year five | 148,046 | 196,424 | |
Prior | 381,559 | 305,434 | |
Revolving Loans Amortized Cost Basis | 30,524 | 16,642 | |
Revolving Loans Converted to Term | 577 | 465 | |
Total | 2,066,080 | 2,167,498 | |
Commercial Real Estate | NOOCRE | Real Estate | Special mention | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 5,950 | 0 | |
Year three | 25,985 | 22,774 | |
Year four | 26,175 | 19,464 | |
Year five | 68,616 | 12,274 | |
Prior | 55,805 | 51,451 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 182,531 | 105,963 | |
Commercial Real Estate | NOOCRE | Real Estate | Substandard | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 3,858 | 0 | |
Year three | 2,774 | 0 | |
Year four | 364 | 1,310 | |
Year five | 2,620 | 7,659 | |
Prior | 78,414 | 46,201 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | 88,030 | 55,170 | |
Commercial Real Estate | NOOCRE | Real Estate | PCD | |||
Total consumer loans held for investment | |||
Year one | 0 | 0 | |
Year two | 0 | 0 | |
Year three | 0 | 0 | |
Year four | 0 | 0 | |
Year five | 0 | 12,697 | |
Prior | 14,084 | 51 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Revolving Loans Converted to Term | 0 | 0 | |
Total | $ 14,084 | $ 12,748 |
LHI AND ACL - Servicing Assets
LHI AND ACL - Servicing Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Servicing asset | $ 579,698,000 | $ 543,220,000 | |
Summary of changes in related servicing assets | |||
Balance at beginning of year | 14,880,000 | 17,705,000 | |
Increase from loan sales | 2,170,000 | 2,670,000 | |
Servicing asset impairment, net of recoveries | 919,000 | (1,823,000) | |
Amortization charged as a reduction to income | (4,711,000) | (3,672,000) | |
Balance at year-end | 13,258,000 | 14,880,000 | $ 17,705,000 |
Valuation allowance recorded | 1,532,000 | 2,451,000 | |
Interest receivable | 0 | 0 | |
Proceeds from sale of loans | 53,410,000 | 61,130,000 | 112,606,000 |
Gain on sale of loans | 77,000 | 550,000 | 1,592,000 |
Small Business Administration Loans | |||
Summary of changes in related servicing assets | |||
Proceeds from sale of loans | 16,608,000 | 9,491,000 | 40,001,000 |
Gain on sale of loans | 1,291,000 | 848,000 | 4,911,000 |
USDA Loans | |||
Summary of changes in related servicing assets | |||
Proceeds from sale of loans | 64,080,000 | 72,670,000 | 0 |
Gain on sale of loans | $ 9,797,000 | $ 10,731,000 | $ 0 |
LHI and ACL - Loans Held for Sa
LHI and ACL - Loans Held for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Loans and Allowance for Loan Losses | ||
Total LHFS | $ 79,072 | $ 20,641 |
SBA/USDA construction and land | ||
Loans and Allowance for Loan Losses | ||
Total LHFS | 41,492 | 12,296 |
1 - 4 family residential | ||
Loans and Allowance for Loan Losses | ||
Total LHFS | 788 | 866 |
SBA/USDA OOCRE | ||
Loans and Allowance for Loan Losses | ||
Total LHFS | 16,758 | 5,915 |
NOOCRE | ||
Loans and Allowance for Loan Losses | ||
Total LHFS | 10,500 | 0 |
SBA/USDA commercial | ||
Loans and Allowance for Loan Losses | ||
Total LHFS | $ 9,534 | $ 1,564 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 137,120 | $ 135,401 | |
Less accumulated depreciation and amortization | 31,393 | 26,577 | |
Bank premises, furniture and equipment, net | 105,727 | 108,824 | |
Depreciation | 4,816 | 5,018 | $ 3,123 |
Building and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 55,911 | 56,517 | |
Site improvements | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 2,845 | 2,903 | |
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 | 8,432 | 7,497 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 37,368 | 38,709 | |
Furniture, fixtures and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | 29,437 | 27,417 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Bank premises, furniture and equipment, gross | $ 2,348 | $ 1,579 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating lease, right-of-use asset | $ 19,308 | $ 16,762 |
Total lease liability | $ 20,505 | $ 17,327 |
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) | 9 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, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 5,432 | $ 5,161 |
Variable lease cost | 989 | 640 |
Net lease cost | 6,421 | 5,801 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5,130 | $ 4,781 |
Weighted-average remaining lease term - operating leases, in years | 6 years 2 months 12 days | 5 years 4 months 24 days |
Weighted-average discount rate - operating leases | 3.26% | 2.88% |
LEASES - Maturity (Details)
LEASES - Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Within one year | $ 5,299 | |
After one but within two years | 4,610 | |
After two but within three years | 3,287 | |
After three but within four years | 2,175 | |
After four but within five years | 1,978 | |
After five years | 5,759 | |
Total undiscounted cash flows | 23,108 | |
Less: Discount on cash flows | (2,603) | |
Total lease liability | $ 20,505 | $ 17,327 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Balance at beginning of year | ||
Balance at beginning of year | $ 404,452 | $ 403,771 |
NAC acquisition | 0 | 681 |
Balance at end of year | $ 404,452 | $ 404,452 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross intangible asset | $ 113,478 | $ 111,308 | |
Valuation allowance | 1,532 | 2,451 | |
Accumulated amortization | 70,193 | 55,644 | |
Net intangible assets | 41,753 | 53,213 | |
Amortization of intangible assets | 9,838 | 9,979 | $ 10,057 |
Amortization of Intangible Assets, Occupancy and Equipment, and Other Income | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Amortization of intangible assets | $ 14,549 | $ 13,650 | $ 10,888 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 3 years | 4 years | |
Gross intangible asset | $ 81,769 | $ 81,769 | |
Valuation allowance | 0 | 0 | |
Accumulated amortization | 53,274 | 43,523 | |
Net intangible assets | $ 28,495 | $ 38,246 | |
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 | $ 26,930 | $ 24,760 | |
Valuation allowance | 1,532 | 2,451 | |
Accumulated amortization | 12,140 | 7,429 | |
Net intangible assets | $ 13,258 | $ 14,880 | |
Intangible lease assets | |||
Finite-Lived Intangible Assets, Net [Abstract] | |||
Weighted amortization period | 0 years | 3 months 18 days | |
Gross intangible asset | $ 4,779 | $ 4,779 | |
Valuation allowance | 0 | 0 | |
Accumulated amortization | 4,779 | 4,692 | |
Net intangible assets | $ 0 | $ 87 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated aggregate future amortization expense [Abstract] | ||
2024 | $ 11,595 | |
2025 | 11,259 | |
2026 | 10,640 | |
2027 | 2,377 | |
2028 | 1,844 | |
Thereafter | 4,038 | |
Net intangible assets | $ 41,753 | $ 53,213 |
DEPOSITS - Summary of Deposits
DEPOSITS - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
Noninterest-bearing demand accounts | $ 2,218,036 | $ 2,640,617 |
Interest-bearing demand accounts | 927,193 | 622,814 |
Savings accounts | 136,868 | 118,293 |
Limited access money market accounts | 3,864,361 | 3,654,868 |
Certificates of deposit, greater than $250 | 1,312,744 | 853,659 |
Certificates of deposit, less than $250 | 1,878,993 | 1,232,983 |
Total deposits | $ 10,338,195 | $ 9,123,234 |
DEPOSITS - Scheduled Maturities
DEPOSITS - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
2024 | $ 2,854,476 | |
2025 | 322,311 | |
2026 | 7,532 | |
2027 | 3,638 | |
2028 | 3,780 | |
Total | $ 3,191,737 | $ 2,086,642 |
DEPOSITS - Additional Informati
DEPOSITS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statistical Disclosure for Banks [Abstract] | ||
Demand deposit overdrafts reclassified as loans | $ 243 | $ 395 |
Brokered deposits | $ 2,031,413 | $ 1,307,996 |
ADVANCES FROM FHLB - Additional
ADVANCES FROM FHLB - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Advances from FHLB | $ 100,000 | $ 1,175,000 |
Availability to borrow additional funds | $ 2,191,608 | |
Weighted Average | ||
Debt Instrument [Line Items] | ||
Advances from federal home loan bank, weighted average rate | 5.54% |
ADVANCES FROM FHLB - Contractua
ADVANCES FROM FHLB - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Advance from Federal Home Loan Bank [Abstract] | ||
2024 | $ 100,000 | |
Advances from FHLB | $ 100,000 | $ 1,175,000 |
OTHER CREDIT EXTENSIONS (Detail
OTHER CREDIT EXTENSIONS (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) facility | Dec. 31, 2022 USD ($) facility | |
Other Credit Extensions | ||
Advances from FHLB | $ 100,000,000 | $ 1,175,000,000 |
Federal Funds Credit Extensions With Commercial Banks | ||
Other Credit Extensions | ||
Number of credit facilities | facility | 5 | 5 |
Maximum available borrowings | $ 125,000,000 | $ 175,000,000 |
Outstanding borrowings | 0 | 0 |
Federal Home Loan Bank | ||
Other Credit Extensions | ||
Federal home loan bank, advances, activity for year, average balance of agreements outstanding | $ 2,191,608,000 | $ 787,324,000 |
Federal home loan bank, advances, activity for year, average interest rate for year | 4.70% | 1.73% |
Letters of credit outstanding, amount | $ 1,029,508,000 | |
Advances from FHLB | $ 100,000,000 | 1,175,000,000 |
Federal Home Loan Bank | FHLB | ||
Other Credit Extensions | ||
Letters of credit outstanding, amount | 1,377,257,000 | |
Federal Reserve Bank Advances | ||
Other Credit Extensions | ||
Maximum available borrowings | 2,927,549,000 | 1,138,661,000 |
Outstanding borrowings | $ 0 | 0 |
Federal home loan bank, advances, maturity period, variable rate | 6 months | |
Amounts of commercial loans pledged as collateral | $ 2,143,269,000 | $ 1,000,730,000 |
Bank Term Funding Program | ||
Other Credit Extensions | ||
Available borrowing capacity | $ 455,361,000 |
SUBORDINATED DEBENTURES AND S_3
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | $ 229,783 | $ 228,775 |
Junior Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 30,908 | 30,686 |
Unamortized discount (premium), net | 2,960 | 3,182 |
Subordinated Debt | ||
Debt Instrument [Line Items] | ||
Subordinated debentures and subordinated notes | 198,875 | 198,089 |
Debt issuance costs, net | $ 1,125 | $ 1,911 |
SUBORDINATED DEBENTURES AND S_4
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES - Narrative (Details) | 12 Months Ended | |||||
Oct. 05, 2020 USD ($) | Nov. 08, 2019 USD ($) | Dec. 31, 2023 USD ($) quarter | Dec. 31, 2022 | Jan. 01, 2019 USD ($) | Aug. 01, 2017 USD ($) | |
Parkway Trust Securities | ||||||
Debt Instrument [Line Items] | ||||||
Distribution effective rate (as a percent) | 7.50% | 6.62% | ||||
Parkway Trust Securities | Secured Overnight Financing Rate (SOFR) | ||||||
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 | 9.66% | 7.74% | ||||
SovDallas Trust Securities | Junior Subordinated Debt | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Interest on securities, addition to LIBOR | 4% | |||||
Patriot I Trust Securities | Junior Subordinated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 5,155,000 | |||||
Debt instrument, effective percentage | 7.51% | 5.93% | ||||
Patriot I Trust Securities | Junior Subordinated Debt | Secured Overnight Financing Rate (SOFR) | ||||||
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 | 7.45% | 6.57% | ||||
Patriot II Trust Securities | Junior Subordinated Debt | Secured Overnight Financing Rate (SOFR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.80% | |||||
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% | |||||
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 | Secured Overnight Financing Rate (SOFR) | ||||||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income tax expense (benefit): | |||
Current | $ 38,672 | $ 45,981 | $ 32,075 |
Deferred | (2,649) | (5,662) | 4,647 |
Total income tax expense | $ 36,023 | $ 40,319 | $ 36,722 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense rate at 21% for December 31, 2023, 2022 and 2021 | $ 30,300 | $ 39,193 | $ 37,024 |
Bank-owned life insurance | (663) | (448) | (852) |
Non-deductible transaction costs | 0 | 0 | 78 |
Tax exempt interest income | (899) | (579) | (545) |
Deferred tax true up | 4 | 54 | 24 |
162(m) Disallowance | 512 | 1,183 | 504 |
State taxes, net of federal benefit | 1,510 | 1,769 | 1,039 |
Excess benefit on share-based compensation | 340 | (1,056) | (838) |
Valuation allowance on Thrive impairment | 4,249 | 0 | 0 |
Other | 670 | 203 | 288 |
Total income tax expense | $ 36,023 | $ 40,319 | $ 36,722 |
Effective tax rate | 25% | 21.60% | 20.80% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
ACL | $ 25,449,000 | $ 21,647,000 |
Equity compensation | 4,669,000 | 4,286,000 |
Purchase premium/loan discounts | 984,000 | 1,546,000 |
Lease liability | 4,428,000 | 3,708,000 |
Net unrealized loss on debt securities AFS | 16,870,000 | 17,204,000 |
Purchased securities | 1,836,000 | 2,520,000 |
Investment in Thrive | 5,156,000 | 0 |
Other | 5,567,000 | 9,219,000 |
Total gross deferred tax assets | 64,959,000 | 60,130,000 |
Valuation allowance on Thrive impairment | (4,249,000) | 0 |
Total net deferred tax assets | 60,710,000 | 60,130,000 |
Deferred tax liabilities: | ||
Intangibles | 8,089,000 | 9,340,000 |
Bank premises and equipment | 5,326,000 | 6,163,000 |
ROU asset | 4,169,000 | 3,587,000 |
Other | 2,885,000 | 3,214,000 |
Total deferred tax liabilities | 20,469,000 | 22,304,000 |
Net deferred tax asset | $ 40,241,000 | $ 37,826,000 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Loss Carryforwards [Line Items] | ||
Taxes payable, current | $ 34,000 | $ 573,000 |
Valuation allowance on Thrive impairment | (4,249,000) | 0 |
Other Assets | ||
Operating Loss Carryforwards [Line Items] | ||
Current tax receivable | 19,131,000 | 1,741,000 |
Deferred tax asset | $ 40,241,000 | $ 37,826,000 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at the beginning of the year: | $ 293 | $ 503 | $ 549 |
Gross increases, related to tax positions taken in a prior period | 278 | 0 | 0 |
Gross decreases, related to tax positions taken in a prior period | 0 | (44) | (101) |
Gross increases, related to tax positions taken in current period | 133 | 75 | 55 |
Settlement with taxing authority | 0 | (241) | 0 |
Expiration of statute of limitations | (25) | 0 | 0 |
Unrecognized tax benefits at the end of the year | $ 679 | $ 293 | $ 503 |
FAIR VALUE DISCLOSURES - Recurr
FAIR VALUE DISCLOSURES - Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
AFS debt securities | $ 1,076,639 | $ 1,096,292 |
Equity securities with a readily determinable fair value | 9,897 | 9,792 |
Derivative asset, fair value | 20,820 | 36,878 |
Derivative liability, fair value | 48,612 | 63,997 |
Derivatives designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 18,814 | 26,523 |
Derivative liability, fair value | 47,121 | 54,171 |
Derivatives designated as hedging instruments | Interest rate swaps | ||
Assets: | ||
Derivative asset, fair value | 12,208 | 21,234 |
Derivative liability, fair value | 0 | 0 |
Derivatives not designated as hedging instruments | ||
Assets: | ||
Derivative asset, fair value | 31,469 | 41,337 |
Derivative liability, fair value | 30,954 | 40,808 |
Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 28,007 | 38,839 |
Derivative liability, fair value | 2,322 | 1,126 |
Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 2,118 | 1,004 |
Derivative liability, fair value | 27,288 | 38,188 |
Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 1,344 | 1,494 |
Derivative liability, fair value | 0 | 0 |
Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 1,344 | 1,494 |
Recurring | ||
Assets: | ||
AFS debt securities | 1,076,639 | 1,096,292 |
Equity securities with a readily determinable fair value | 9,897 | 9,792 |
LHFS | 67,784 | 19,775 |
Recurring | Derivatives designated as hedging instruments | Interest rate swaps | ||
Assets: | ||
Derivative asset, fair value | 18,814 | 26,523 |
Derivative liability, fair value | 47,121 | 54,171 |
Recurring | Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 28,007 | 38,839 |
Derivative liability, fair value | 2,322 | 1,126 |
Recurring | Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 2,118 | 1,004 |
Derivative liability, fair value | 27,288 | 38,188 |
Recurring | Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 1,344 | 1,494 |
Recurring | Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||
Assets: | ||
Derivative liability, fair value | 1,344 | 1,494 |
Recurring | Level 1 | ||
Assets: | ||
AFS debt securities | 0 | 0 |
Equity securities with a readily determinable fair value | 9,897 | 9,792 |
LHFS | 0 | 0 |
Recurring | Level 1 | Derivatives designated as hedging instruments | Interest rate swaps | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 1 | Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 1 | Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 1 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Recurring | Level 1 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||
Assets: | ||
Derivative liability, fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
AFS debt securities | 1,076,639 | 1,096,292 |
Equity securities with a readily determinable fair value | 0 | 0 |
LHFS | 67,784 | 19,775 |
Recurring | Level 2 | Derivatives designated as hedging instruments | Interest rate swaps | ||
Assets: | ||
Derivative asset, fair value | 18,814 | 26,523 |
Derivative liability, fair value | 47,121 | 54,171 |
Recurring | Level 2 | Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 28,007 | 38,839 |
Derivative liability, fair value | 2,322 | 1,126 |
Recurring | Level 2 | Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 2,118 | 1,004 |
Derivative liability, fair value | 27,288 | 38,188 |
Recurring | Level 2 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 1,344 | 1,494 |
Recurring | Level 2 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||
Assets: | ||
Derivative liability, fair value | 1,344 | 1,494 |
Recurring | Level 3 | ||
Assets: | ||
AFS debt securities | 0 | 0 |
Equity securities with a readily determinable fair value | 0 | 0 |
LHFS | 0 | 0 |
Recurring | Level 3 | Derivatives designated as hedging instruments | Interest rate swaps | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 3 | Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 3 | Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Derivative liability, fair value | 0 | 0 |
Recurring | Level 3 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||
Assets: | ||
Derivative asset, fair value | 0 | 0 |
Recurring | Level 3 | Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||
Assets: | ||
Derivative liability, fair value | $ 0 | $ 0 |
FAIR VALUE DISCLOSURES - Non-re
FAIR VALUE DISCLOSURES - Non-recurring Basis (Details) - Non-recurring - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Collateral dependent loans with an ACL | $ 14,274,000 | $ 7,969,000 |
Servicing assets with a valuation allowance | 6,682,000 | 10,984,000 |
Collateral dependent loans with an ACL, gross | 17,660,000 | 10,632,000 |
Impaired loans, specific allowance | 3,386,000 | 2,663,000 |
Servicing asset at fair value, gross | 8,214,000 | 13,435,000 |
Valuation allowance for servicing asset | (1,532,000) | (2,451,000) |
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 | 14,274,000 | 7,969,000 |
Servicing assets with a valuation allowance | $ 6,682,000 | $ 10,984,000 |
FAIR VALUE DISCLOSURES - Financ
FAIR VALUE DISCLOSURES - Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial assets: | ||
HTM debt securities | $ 160,021 | $ 158,781 |
Equity securities without a readily determinable fair value | 11,624 | 10,072 |
FHLB and FRB stock | 53,699 | 101,568 |
Financial liabilities: | ||
Subordinated debentures and subordinated notes | 229,783 | 228,775 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 629,063 | 436,077 |
HTM debt securities | 180,403 | 186,168 |
LHFS | 11,288 | 866 |
Accrued interest receivable | 53,313 | 44,035 |
BOLI | 84,833 | 84,496 |
Servicing asset | 6,576 | 3,896 |
Equity securities without a readily determinable fair value | 11,624 | 10,072 |
FHLB and FRB stock | 53,699 | 101,568 |
Financial liabilities: | ||
Deposits | 10,338,195 | 9,123,234 |
Advances from FHLB | 100,000 | 1,175,000 |
Accrued interest payable | 41,948 | 8,795 |
Subordinated debentures and subordinated notes | 229,783 | 228,775 |
Level 1 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
HTM debt securities | 0 | 0 |
LHFS | 0 | 0 |
Accrued interest receivable | 0 | 0 |
BOLI | 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 |
Level 2 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 629,063 | 436,077 |
HTM debt securities | 160,021 | 158,781 |
LHFS | 11,288 | 866 |
Accrued interest receivable | 53,313 | 44,035 |
BOLI | 84,833 | 84,496 |
Servicing asset | 6,576 | 3,896 |
Financial liabilities: | ||
Deposits | 9,779,849 | 8,341,419 |
Advances from FHLB | 141,999 | 1,156,852 |
Accrued interest payable | 41,948 | 8,795 |
Subordinated debentures and subordinated notes | 229,783 | 228,775 |
Level 3 | Total Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
HTM debt securities | 0 | 0 |
LHFS | 0 | 0 |
Accrued interest receivable | 0 | 0 |
BOLI | 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 |
Real Estate, Commercial and Consumer Portfolio Segments | Carrying Amount | ||
Financial assets: | ||
LHI | 9,577,180 | 9,399,614 |
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 | $ 9,322,744 | $ 9,163,616 |
OFF-BALANCE SHEET LOAN COMMIT_3
OFF-BALANCE SHEET LOAN COMMITMENTS - Financial Instruments Approximate Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 3,998,795 | $ 5,698,408 |
Commitments to extend credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 3,083,501 | 4,511,671 |
MW commitments | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | 803,704 | 1,088,558 |
Standby and commercial letters of credit | ||
Financial instruments with off-balance sheet risk | ||
Total commitments | $ 111,590 | $ 98,179 |
OFF-BALANCE SHEET LOAN COMMIT_4
OFF-BALANCE SHEET LOAN COMMITMENTS - Allowance for Unfunded Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for Unfunded Commitments [Roll Forward] | |||
Beginning balance for ACL on unfunded commitments | $ 10,086 | $ 9,266 | |
(Benefit) provision for credit losses on unfunded commitments | (2,041) | 820 | $ (1,481) |
Ending balance of ACL on unfunded commitments | $ 8,045 | $ 10,086 | $ 9,266 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS - Balance Sheet Information (Details) - USD ($) | Dec. 31, 2023 | Nov. 30, 2023 | Oct. 31, 2023 | Feb. 28, 2023 | Dec. 31, 2022 | Oct. 31, 2022 | Aug. 31, 2022 | Mar. 31, 2021 |
Derivative [Line Items] | ||||||||
Notional Amount | $ 3,833,144,000 | $ 2,922,362,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 20,820,000 | 36,878,000 | ||||||
Offsetting derivative assets | (29,463,000) | (30,982,000) | ||||||
Liability Derivative | ||||||||
Gross derivatives | 48,612,000 | 63,997,000 | ||||||
Offsetting derivative liabilities | (29,463,000) | (30,982,000) | ||||||
Derivatives designated as hedging instruments | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 1,475,000,000 | 1,175,000,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 18,814,000 | 26,523,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 47,121,000 | 54,171,000 | ||||||
Derivatives designated as hedging instruments | Interest rate swaps | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 250,000,000 | $ 100,000 | $ 100,000 | 250,000,000 | $ 125,000 | |||
Asset Derivative | ||||||||
Gross derivatives | 12,208,000 | 21,234,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Derivatives designated as hedging instruments | Interest rate swaps on fixed rate advances/brokered CDs | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 200,000,000 | 0 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 4,296,000 | 0 | ||||||
Derivatives designated as hedging instruments | Interest rate swaps on customer loan interest payments | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 375,000,000 | 375,000,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 40,055,000 | 49,211,000 | ||||||
Derivatives designated as hedging instruments | Interest rate collars on customer loan interest payments | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 450,000,000 | 450,000,000 | $ 100,000 | $ 350,000 | ||||
Asset Derivative | ||||||||
Gross derivatives | 2,304,000 | 3,267,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 2,770,000 | 4,960,000 | ||||||
Derivatives designated as hedging instruments | Interest rate floor on customer loan interest payments | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 200,000,000 | $ 100,000 | 100,000,000 | $ 100,000 | ||||
Asset Derivative | ||||||||
Gross derivatives | 4,302,000 | 2,022,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Derivatives not designated as hedging instruments | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 2,358,144,000 | 1,747,362,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 31,469,000 | 41,337,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 30,954,000 | 40,808,000 | ||||||
Derivatives not designated as hedging instruments | Interest rate swaps | Financial institution counterparty | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 893,702,000 | 805,311,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 28,007,000 | 38,839,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 2,322,000 | 1,126,000 | ||||||
Derivatives not designated as hedging instruments | Interest rate swaps | Commercial customer counterparty | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 893,702,000 | 805,311,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 2,118,000 | 1,004,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 27,288,000 | 38,188,000 | ||||||
Derivatives not designated as hedging instruments | Interest rate caps and collars | Financial institution counterparty | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 285,370,000 | 68,370,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 1,344,000 | 1,494,000 | ||||||
Liability Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Derivatives not designated as hedging instruments | Interest rate caps and collars | Commercial customer counterparty | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 285,370,000 | 68,370,000 | ||||||
Asset Derivative | ||||||||
Gross derivatives | 0 | 0 | ||||||
Liability Derivative | ||||||||
Gross derivatives | $ 1,344,000 | $ 1,494,000 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS - AOCI Reclassification (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net (loss) gain recognized in other comprehensive income on derivative | $ (7,744) | $ (41,499) |
Gain (loss) reclassified from accumulated other comprehensive income into income | (3,012) | 5,020 |
Interest rate swap on borrowing advances | Interest Expense | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net (loss) gain recognized in other comprehensive income on derivative | (4,386) | (3,569) |
Gain (loss) reclassified from accumulated other comprehensive income into income | 4,386 | 3,569 |
Interest rate swaps on money market deposit account and funding source payments | Interest Expense | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net (loss) gain recognized in other comprehensive income on derivative | (13,322) | 16,693 |
Gain (loss) reclassified from accumulated other comprehensive income into income | 11,798 | 3,208 |
Interest rate swaps, collars and floor on customer loan interest payments | Interest Income | Derivatives designated as hedging instruments | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Net (loss) gain recognized in other comprehensive income on derivative | 9,964 | (54,623) |
Gain (loss) reclassified from accumulated other comprehensive income into income | (19,196) | (1,757) |
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 | $ 1,633 | $ 7,217 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS - Narrative (Details) - USD ($) | 12 Months Ended | ||||||||||
Feb. 24, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 30, 2023 | Oct. 31, 2023 | Feb. 28, 2023 | Oct. 31, 2022 | Aug. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | $ 3,833,144,000 | $ 2,922,362,000 | |||||||||
Pre-tax gain from termination of derivative | 0 | 0 | $ (43,900,000) | ||||||||
Derivatives designated as hedging instruments | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | 1,475,000,000 | 1,175,000,000 | |||||||||
Derivatives designated as hedging instruments | Interest rate swaps | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | $ 250,000,000 | 250,000,000 | $ 100,000 | $ 100,000 | $ 125,000 | ||||||
Pre-tax gain from termination of derivative | $ 43,900,000 | ||||||||||
Accretion period (in years) | 10 years | ||||||||||
Accretion into income | $ 4,386,000 | ||||||||||
Derivatives designated as hedging instruments | Interest rate floor | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | 200,000,000 | 100,000,000 | $ 100,000 | $ 100,000 | |||||||
Derivatives designated as hedging instruments | Interest rate collar | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | $ 450,000,000 | $ 450,000,000 | $ 100,000 | $ 350,000 | |||||||
Derivatives designated as hedging instruments | Forecasted Issuances of Three-month Term Debt | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | $ 500,000 | ||||||||||
Derivatives designated as hedging instruments | Forecasted Money Market Account Borrowings | |||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||||||
Notional amount | $ 250,000 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of Interest Rate Swaps Outstanding (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Derivative [Line Items] | ||
Notional Amount | $ 3,833,144 | $ 2,922,362 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional Amount | 2,358,144 | 1,747,362 |
Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 893,702 | $ 805,311 |
Maturity (in years) | 4 years 1 month 6 days | 5 years 1 month 6 days |
Fair Value | $ (25,170) | $ (37,183) |
Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 285,370 | $ 68,370 |
Maturity (in years) | 9 months 18 days | 1 year 9 months 18 days |
Fair Value | $ (1,344) | $ (1,494) |
Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 893,702 | $ 805,311 |
Maturity (in years) | 4 years 1 month 6 days | 5 years 1 month 6 days |
Fair Value | $ 25,685 | $ 37,713 |
Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Notional Amount | $ 285,370 | $ 68,370 |
Maturity (in years) | 9 months 18 days | 1 year 9 months 18 days |
Fair Value | $ 1,344 | $ 1,494 |
Minimum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 2.40% | 2.40% |
Minimum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.50% | 3.50% |
Minimum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 2.40% | 2.40% |
Minimum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 3.50% | 3.50% |
Minimum | LIBOR | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.80% | |
Minimum | LIBOR | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0% | |
Minimum | LIBOR | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 2.80% | |
Minimum | LIBOR | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0% | |
Minimum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0% | 0% |
Minimum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0% | |
Minimum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 0% | 0% |
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% | 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% | 2.50% |
Minimum | SOFR | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Floating Rate | 0% | |
Maximum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 7.40% | 8.50% |
Maximum | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 7.50% | |
Maximum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Fixed Rate | 7.40% | 8.50% |
Maximum | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate caps and collars | ||
Derivative [Line Items] | ||
Fixed Rate | 7.50% | |
Maximum | LIBOR | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3% | 5% |
Maximum | LIBOR | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3% | 5% |
Maximum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3.80% | 3.80% |
Maximum | Secured Overnight Financing Rate (SOFR) - CME | Derivatives not designated as hedging instruments | Commercial customer 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 | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3.80% | 3.80% |
Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Commercial customer counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3% | 3% |
Maximum | Secured Overnight Financing Rate (SOFR) - NYFD | Derivatives not designated as hedging instruments | Financial institution counterparty | Interest rate swaps | ||
Derivative [Line Items] | ||
Floating Rate | 3% | 3% |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Retirement Benefits [Abstract] | ||
Matching contributions to 401(k) profit sharing Plan | $ 4,905 | $ 4,661 |
STOCK AND INCENTIVE PLANS - Nar
STOCK AND INCENTIVE PLANS - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2010 | |
2010 Stock Option and Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,000,000 | |||
Stock based compensation expense | $ 0 | $ 0 | $ 0 | |
2022 Amended Plan and Green Acquired Omnibus Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period, requirements | 1 year | |||
2022 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 10,200,000 | 11,109,000 | ||
Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,850,000 | 820,000 | ||
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) | 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) | 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 | 2022 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 0 | 172,000 | 803,000 | |
Stock option | Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | 0 | 0 | 100,000 | |
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) | 500,000 | |||
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 | |
Restricted stock units | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Restricted stock units | 2022 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 14,692,000 | 17,160,000 | 10,413,000 | |
Requisite service period to recognize compensation cost (in years) | 10 months 6 days | |||
Restricted stock units | Veritex (Green) 2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense (in dollars) | $ 1,781,000 | $ 3,825,000 | $ 1,252,000 | |
Requisite service period to recognize compensation cost (in years) | 1 year 10 months 2 days |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 1,000 | 1,000 | 20,000 | |
Exercised (in shares) | (1,000) | 0 | (19,000) | |
Outstanding at the end of period (in shares) | 0 | 1,000 | 1,000 | 20,000 |
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.43 | $ 10.43 | $ 10.09 | |
Exercised (in dollars per share) | 10.43 | 0 | 10 | |
Outstanding at the end of period (in dollars per share) | $ 0 | $ 10.43 | $ 10.43 | $ 10.09 |
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year, term (in years) | 0 years | 1 year 25 days | 1 year 25 days | 1 year 21 days |
Exercisable, term (in years) | 0 years | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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 | $ 16 | $ 0 | $ 568 |
2022 Equity Plan | Non-performance Based Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Nonperformance-based stock options exercised | 66 | 792 | 9,214 |
2022 Equity Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 3,924 | 6,356 | 2,781 |
2022 Equity Plan | PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 1,070 | 4,040 | 0 |
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 | 71 | 1,157 | 4,599 |
Non-performance based restricted stock units vested | 227 | 1,261 | 0 |
Veritex (Green) 2014 Plan | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-performance based restricted stock units vested | 2,384 | 1,312 | 713 |
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 | $ 379 | $ 47 | $ 1,838 |
STOCK AND INCENTIVE PLANS - Sto
STOCK AND INCENTIVE PLANS - Stock Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
2022 Equity Plan | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 10,200 | $ 11,109 |
Veritex (Green) 2014 Plan | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 1,850 | $ 820 |
STOCK AND INCENTIVE PLANS - 2_2
STOCK AND INCENTIVE PLANS - 2019 Amended Plan - Options (Details) - 2022 Equity Plan - Non-performance Based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Shares Underlying Options | ||||
Outstanding at beginning of period (in shares) | 657,494 | 710,043 | 975,801 | |
Granted (in shares) | 1,500 | 500 | ||
Canceled (in shares) | (35,970) | |||
Forfeited (in shares) | (1,666) | (13,996) | ||
Exercised (in shares) | (17,285) | (54,049) | (252,262) | |
Outstanding at the end of period (in shares) | 602,573 | 657,494 | 710,043 | 975,801 |
Options exercisable at end of period (in shares) | 591,573 | |||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 24.47 | $ 24.38 | $ 24.26 | |
Granted (in dollars per share) | 31.26 | 36.54 | ||
Forfeited (in dollars per share) | 17.38 | 25.93 | ||
Cancelled (in dollars per share) | 28.95 | |||
Exercised (in dollars per share) | 18.29 | 23.51 | 23.87 | |
Outstanding at the end of period (in dollars per share) | 24.40 | $ 24.47 | $ 24.38 | $ 24.26 |
Options exercisable at end of period (in dollars per share) | 24.45 | |||
Weighted average fair value of options granted during the period (in dollars per share) | $ 0 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at beginning of year, term (in years) | 4 years 10 months 2 days | 5 years 6 months 29 days | 6 years 10 months 28 days | |
Exercisable, term (in years) | 4 years 10 months 2 days | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 779,874 | |||
Options exercisable, intrinsic value | $ 760,974 |
STOCK AND INCENTIVE PLANS - 2_3
STOCK AND INCENTIVE PLANS - 2019 Amended Plan - Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
2022 Equity Plan | RSUs | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 955,104 | 598,051 | 441,132 |
Granted (in shares) | 293,086 | 546,405 | 281,149 |
Vested into shares (in shares) | (269,144) | (175,159) | (108,732) |
Forfeited (in shares) | (30,533) | (14,193) | (15,498) |
Nonvested at the end of the period (in shares) | 948,513 | 955,104 | 598,051 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 28.38 | $ 23.39 | $ 20.39 |
Granted (in dollars per share) | 27.17 | 33.79 | 28.68 |
Vested into shares (in dollars per share) | 29.68 | 27.88 | 24.19 |
Forfeited (in dollars per share) | 32.23 | 33.18 | 28.47 |
Nonvested at the end of the period (in dollars per share) | $ 27.52 | $ 28.38 | $ 23.39 |
2022 Equity Plan | PSUs | |||
Activity in shares | |||
Nonvested at the beginning of the period (in shares) | 126,707 | 156,471 | 100,195 |
Granted (in shares) | 53,310 | 39,429 | 56,276 |
Vested into shares (in shares) | (41,781) | (103,387) | |
Nonvested at the end of the period (in shares) | 129,768 | 126,707 | 156,471 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 31.19 | $ 24.17 | $ 23.20 |
Granted (in dollars per share) | 27.55 | 40.38 | 25.94 |
Vested into shares (in dollars per share) | 26.42 | ||
Nonvested at the end of the period (in dollars per share) | $ 30.28 | $ 31.19 | $ 24.17 |
Omnibus Plan | PSUs | |||
Activity in shares | |||
Forfeited (in shares) | (8,468) | ||
Weighted Average Grant Date Fair Value | |||
Forfeited (in dollars per share) | $ 30.90 |
STOCK AND INCENTIVE PLANS - Ver
STOCK AND INCENTIVE PLANS - Veritex (Green) 2014 Plan Options (Details) - Veritex (Green) 2014 Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Non-performance Based Stock Options | |||
Shares Underlying Options | |||
Outstanding at beginning of period (in shares) | 155,212 | 217,804 | 352,000 |
Forfeited (in shares) | (7,245) | ||
Canceled (in shares) | (9,717) | ||
Exercised (in shares) | (20,996) | (62,592) | (126,951) |
Outstanding at the end of period (in shares) | 124,499 | 155,212 | 217,804 |
Options exercisable at end of period (in shares) | 124,499 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 19.83 | $ 19.62 | $ 19.99 |
Forfeited (in dollars per share) | 21.38 | ||
Cancelled (in dollars per share) | 21.38 | ||
Exercised (in dollars per share) | 20.95 | 19.59 | 20.55 |
Outstanding at the end of period (in dollars per share) | 22 | $ 19.83 | $ 19.62 |
Options exercisable at end of period (in dollars per share) | $ 22 | ||
Weighted Average Contractual Term | |||
Outstanding at beginning of year, term (in years) | 3 years 8 months 12 days | 5 years 2 months 12 days | 6 years 1 month 17 days |
Options exercisable at end of period (in years) | 3 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 616 | ||
Options exercisable, intrinsic value | $ 616 | ||
PSUs | |||
Aggregate Intrinsic Value | |||
Incremental PSUs granted upon performance condition met (in shares) | 10,566 | ||
Incremental PSUs granted upon performance condition met (in dollars per share) | $ 19.69 | ||
Vested into shares (in shares) | (8,531) | (31,703) | |
Vested (in dollars per share) | $ 25.94 | $ 21.38 |
STOCK AND INCENTIVE PLANS - V_2
STOCK AND INCENTIVE PLANS - Veritex (Green) 2014 Plan RSU and PSU (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Veritex (Green) 2014 Plan | 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) | 86,233 | 122,784 | 156,187 |
Number of shares awarded (in shares) | 4,231 | 5,692 | |
Vested into shares (in shares) | (19,282) | (32,931) | (33,335) |
Forfeited (in shares) | (2,232) | (7,851) | (5,760) |
Nonvested at the end of the period (in shares) | 64,719 | 86,233 | 122,784 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 21.09 | $ 21.13 | $ 22.64 |
Granted (in dollars per share) | 40.38 | 26.12 | |
Vested into shares (in dollars per share) | 29.66 | 21.80 | 21.38 |
Forfeited (in dollars per share) | 29.13 | 29.13 | 23.62 |
Nonvested at the end of the period (in dollars per share) | $ 18.26 | $ 21.09 | $ 21.13 |
Veritex (Green) 2014 Plan | 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) | 19,173 | 35,899 | 30,728 |
Number of shares awarded (in shares) | 4,411 | 6,231 | |
Incremental PSUs granted upon performance condition met (in shares) | 10,566 | ||
Vested into shares (in shares) | (8,531) | (31,703) | |
Forfeited (in shares) | (1,060) | ||
Nonvested at the end of the period (in shares) | 10,642 | 19,173 | 35,899 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 30.74 | $ 22.26 | $ 21.43 |
Granted (in dollars per share) | 40.38 | 25.94 | |
Incremental PSUs granted upon performance condition met (in dollars per share) | 19.69 | ||
Vested into shares (in dollars per share) | 25.94 | 21.38 | |
Forfeited (in dollars per share) | 19.69 | ||
Nonvested at the end of the period (in dollars per share) | $ 31.93 | $ 30.74 | $ 22.26 |
2022 Equity Plan | 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) | 955,104 | 598,051 | 441,132 |
Number of shares awarded (in shares) | 293,086 | 546,405 | 281,149 |
Vested into shares (in shares) | (269,144) | (175,159) | (108,732) |
Forfeited (in shares) | (30,533) | (14,193) | (15,498) |
Nonvested at the end of the period (in shares) | 948,513 | 955,104 | 598,051 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 28.38 | $ 23.39 | $ 20.39 |
Granted (in dollars per share) | 27.17 | 33.79 | 28.68 |
Vested into shares (in dollars per share) | 29.68 | 27.88 | 24.19 |
Forfeited (in dollars per share) | 32.23 | 33.18 | 28.47 |
Nonvested at the end of the period (in dollars per share) | $ 27.52 | $ 28.38 | $ 23.39 |
2022 Equity Plan | 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) | 126,707 | 156,471 | 100,195 |
Number of shares awarded (in shares) | 53,310 | 39,429 | 56,276 |
Incremental PSUs granted upon performance condition met (in shares) | 34,194 | ||
Vested into shares (in shares) | (41,781) | (103,387) | |
Nonvested at the end of the period (in shares) | 129,768 | 126,707 | 156,471 |
Weighted Average Grant Date Fair Value | |||
Nonvested at the beginning of the period (in dollars per share) | $ 31.19 | $ 24.17 | $ 23.20 |
Granted (in dollars per share) | 27.55 | 40.38 | 25.94 |
Incremental PSUs granted upon performance condition met (in dollars per share) | 23.90 | ||
Vested into shares (in dollars per share) | 26.42 | ||
Nonvested at the end of the period (in dollars per share) | $ 30.28 | $ 31.19 | $ 24.17 |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Shares Underlying Options | |||
Outstanding at beginning of period (in shares) | 43,162 | 66,143 | 131,083 |
Forfeited (in shares) | (2,198) | ||
Cancelled (in shares) | (21,235) | ||
Exercised (in shares) | (32,378) | (1,746) | (62,742) |
Outstanding at the end of period (in shares) | 10,784 | 43,162 | 66,143 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 13.11 | $ 12.56 | $ 11.60 |
Forfeited (in dollars per share) | |||
Cancelled (in dollars per share) | 11 | ||
Exercised (in dollars per share) | 13.26 | 13.20 | 10.51 |
Outstanding at the end of period (in dollars per share) | $ 12.65 | $ 13.11 | $ 12.56 |
Outstanding at beginning of year, term (in years) | 4 years 21 days | ||
Aggregate intrinsic value of outstanding stock options (in dollars) | $ 115 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Financing receivable, after allowance for credit loss | $ 9,474,524 | $ 9,391,599 |
Employees, Officers, Directors and Affiliates | ||
Related Party Transaction [Line Items] | ||
Financing receivable, after allowance for credit loss | 30,132 | 35,005 |
New advances to the company's employees, officers, directors and their affiliates | 6,648 | 33,624 |
Principal payments received from the loans to employees, officers, directors, and their affiliates | 11,521 | 11,270 |
Unfunded commitments to related parties | 9,062 | 7,895 |
Deposits received from related parties | $ 349,567 | $ 275,807 |
CAPITAL REQUIREMENTS AND REST_3
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | |
Total capital (to RWA) | |||
Actual amount | $ 1,500,703 | $ 1,395,904 | |
Actual ratio (as a percent) | 0.1318 | 0.1163 | |
For capital adequacy purposes amount | $ 910,897 | $ 960,209 | |
For capital adequacy purposes ratio (as a percent) | 0.080 | 0.080 | |
Tier 1 capital (to RWA) | |||
Actual amount | $ 1,202,252 | $ 1,121,021 | |
Actual ratio (as a percent) | 0.1056 | 0.0934 | |
For capital adequacy purposes amount | $ 683,098 | $ 720,142 | |
For capital adequacy purposes ratio (as a percent) | 0.060 | 0.060 | |
CET1 (to RWA) | |||
Common equity tier one capital | $ 1,172,362 | $ 1,091,353 | |
Common equity tier one capital ratio (as a percent) | 0.1029 | 0.0909 | |
Common equity tier one capital required for capital adequacy | $ 512,695 | $ 540,274 | |
For capital adequacy purposes amount (as a percent) | 0.045 | 0.045 | |
Tier 1 capital (to average assets) | |||
Actual amount | $ 1,202,252 | $ 1,121,021 | |
Actual ratio (as a percent) | 0.1003 | 0.0982 | |
For capital adequacy purposes amount | $ 479,462 | $ 456,628 | |
For capital adequacy purposes ratio (as a percent) | 0.040 | 0.040 | |
Dividends paid | $ 43,318 | $ 42,289 | $ 36,543 |
Bank's capital conservation buffer | 0.0490 | ||
Bank | |||
Total capital (to RWA) | |||
Actual amount | $ 1,467,960 | $ 1,368,082 | |
Actual ratio (as a percent) | 0.1290 | 0.1141 | |
For capital adequacy purposes amount | $ 910,363 | $ 959,216 | |
For capital adequacy purposes ratio (as a percent) | 0.080 | 0.080 | |
To be well capitalized under prompt corrective action provisions amount | $ 1,137,953 | $ 1,199,020 | |
To be well capitalized under prompt corrective action provisions ratio (as a percent) | 0.100 | 0.100 | |
Tier 1 capital (to RWA) | |||
Actual amount | $ 1,368,384 | $ 1,291,288 | |
Actual ratio (as a percent) | 0.1203 | 0.1077 | |
For capital adequacy purposes amount | $ 682,486 | $ 719,381 | |
For capital adequacy purposes ratio (as a percent) | 0.060 | 0.060 | |
To be well capitalized under prompt corrective action provisions amount | $ 909,981 | $ 959,174 | |
To be well capitalized under prompt corrective action provisions ratio (as a percent) | 0.080 | 0.080 | |
CET1 (to RWA) | |||
Common equity tier one capital | $ 1,368,384 | $ 1,291,288 | |
Common equity tier one capital ratio (as a percent) | 0.1203 | 0.1077 | |
Common equity tier one capital required for capital adequacy | $ 511,864 | $ 539,535 | |
For capital adequacy purposes amount (as a percent) | 0.045 | 0.045 | |
Common equity tier one capital required to be well-capitalized | $ 739,360 | $ 779,329 | |
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 | $ 1,368,384 | $ 1,291,288 | |
Actual ratio (as a percent) | 0.1143 | 0.1132 | |
For capital adequacy purposes amount | $ 478,875 | $ 456,286 | |
For capital adequacy purposes ratio (as a percent) | 0.040 | 0.040 | |
To be well capitalized under prompt corrective action provisions amount | $ 598,593 | $ 570,357 | |
To be well capitalized under prompt corrective action provisions ratio (as a percent) | 0.050 | 0.050 | |
Dividends paid to Holdco | $ 60,000 | $ 35,000 | |
Veritex Holdings, Inc. | |||
Tier 1 capital (to average assets) | |||
Dividends paid | $ 43,318 | $ 42,289 | |
Dividends paid (in dollars per share) | $ / shares | $ 0.20 | $ 0.20 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||||
Cash and cash equivalents | $ 629,063 | $ 436,077 | ||
Investment in unconsolidated subsidiaries | 1,018 | 1,018 | ||
Other assets | 241,633 | 250,149 | ||
Total assets | 12,394,337 | 12,154,361 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Total liabilities | 10,863,014 | 10,704,588 | ||
Stockholders’ equity: | ||||
Common stock | 610 | 607 | ||
Additional paid-in capital | 1,317,516 | 1,306,852 | ||
Retained earnings | 444,242 | 379,299 | ||
Accumulated other comprehensive income | (63,463) | (69,403) | ||
Total stockholders’ equity | 1,531,323 | 1,449,773 | $ 1,315,079 | $ 1,203,376 |
Total liabilities and stockholders’ equity | 12,394,337 | 12,154,361 | ||
Veritex Holdings, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 25,728 | 18,278 | ||
Investment in unconsolidated subsidiaries | 1,728,364 | 1,650,727 | ||
Other assets | 17,088 | 13,043 | ||
Total assets | 1,771,180 | 1,682,048 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Other liabilities | 10,074 | 3,500 | ||
Other borrowings | 229,783 | 228,775 | ||
Total liabilities | 239,857 | 232,275 | ||
Stockholders’ equity: | ||||
Common stock | 610 | 607 | ||
Additional paid-in capital | 1,317,516 | 1,306,852 | ||
Retained earnings | 444,242 | 379,299 | ||
Accumulated other comprehensive income | (63,463) | (69,403) | ||
Treasury stock | (167,582) | (167,582) | ||
Total stockholders’ equity | 1,531,323 | 1,449,773 | ||
Total liabilities and stockholders’ equity | $ 1,771,180 | $ 1,682,048 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | |||
Other | $ 5,934 | $ 4,720 | $ 3,237 |
Total interest and dividend income | 726,874 | 449,410 | 316,484 |
Salaries and employee benefits | 122,070 | 117,841 | 94,748 |
Other | 27,245 | 18,314 | 15,149 |
Total noninterest expense | 233,464 | 203,075 | 167,712 |
Income before income tax expense | 144,284 | 186,634 | 176,306 |
Income tax expense | 36,023 | 40,319 | 36,722 |
NET INCOME | 108,261 | 146,315 | 139,584 |
Veritex Holdings, Inc. | |||
Condensed Income Statements, Captions [Line Items] | |||
Excess of earnings over dividend from subsidiary | 59,647 | 121,350 | 142,289 |
Other | 79 | 43 | 43 |
Total interest and dividend income | 119,726 | 156,393 | 150,772 |
Interest on borrowings | 12,352 | 11,156 | 12,426 |
Salaries and employee benefits | 770 | 685 | 668 |
Other | 1,364 | 891 | 1,057 |
Total noninterest expense | 14,486 | 12,732 | 14,151 |
Income before income tax expense | 105,240 | 143,661 | 136,621 |
Income tax expense | (3,021) | (2,654) | (2,963) |
NET INCOME | 108,261 | 146,315 | 139,584 |
Veritex Holdings, Inc. | Investment, Affiliated Issuer | |||
Condensed Income Statements, Captions [Line Items] | |||
Cash dividends from subsidiary | $ 60,000 | $ 35,000 | $ 8,440 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net income | $ 108,261 | $ 146,315 | $ 139,584 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in undistributed net income of Bank | 30,589 | 5,141 | (5,760) |
(Increase) decrease in other assets | (44,484) | (55,770) | 11,139 |
Net cash provided by operating activities | 144,087 | 192,726 | 193,491 |
INVESTING ACTIVITIES: | |||
Net cash used in investing activities | (47,503) | (2,399,378) | (816,389) |
FINANCING ACTIVITIES: | |||
Proceeds from exercise of stock warrants | 0 | 0 | 165 |
Redemption of subordinated debt | 0 | 0 | (35,000) |
Proceeds from exercise of employee stock options | 924 | 1,160 | 6,313 |
Payments to tax authorities for stock-based compensation | (2,307) | (3,363) | (725) |
Purchase of treasury stock | 0 | 0 | (15,509) |
Dividends paid | (43,318) | (42,289) | (36,543) |
Net cash provided by financing activities | 96,402 | 2,262,945 | 771,857 |
Net increase in cash and cash equivalents | 192,986 | 56,293 | 148,959 |
Cash and cash equivalents at beginning of year | 436,077 | 379,784 | 230,825 |
Cash and cash equivalents at end of year | 629,063 | 436,077 | 379,784 |
Veritex Holdings, Inc. | |||
OPERATING ACTIVITIES: | |||
Net income | 108,261 | 146,315 | 139,584 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Amortization of debt discount and debt issuance costs, net | 786 | 790 | 817 |
Equity in undistributed net income of Bank | (59,647) | (121,350) | (142,289) |
(Increase) decrease in other assets | (5,552) | (7,801) | 902 |
Decrease (increase) in other liabilities | 8,303 | 504 | (3,177) |
Net cash provided by operating activities | 52,151 | 18,458 | (4,163) |
INVESTING ACTIVITIES: | |||
Advances to subsidiaries | 0 | (154,610) | 0 |
Net cash used in investing activities | 0 | (154,610) | 0 |
FINANCING ACTIVITIES: | |||
Net proceeds from sale of common stock in public offering | 0 | 154,415 | 0 |
Proceeds from exercise of stock warrants | 0 | 0 | 165 |
Redemption of subordinated debt | 0 | 0 | (35,000) |
Proceeds from exercise of employee stock options | 924 | 1,160 | 6,313 |
Payments to tax authorities for stock-based compensation | (2,307) | (3,363) | (725) |
Purchase of treasury stock | 0 | 0 | (15,509) |
Dividends paid | (43,318) | (42,289) | (36,543) |
Net cash provided by financing activities | (44,701) | 109,923 | (81,299) |
Net increase in cash and cash equivalents | 7,450 | (26,229) | (85,462) |
Cash and cash equivalents at beginning of year | 18,278 | 44,507 | 129,969 |
Cash and cash equivalents at end of year | $ 25,728 | $ 18,278 | $ 44,507 |