Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 09, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | TBK | ||
Entity Registrant Name | TRIUMPH BANCORP, INC. | ||
Entity Central Index Key | 1,539,638 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 20,825,937 | ||
Entity Public Float | $ 393,376,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 59,114 | $ 38,613 |
Interest bearing deposits with other banks | 75,015 | 75,901 |
Total cash and cash equivalents | 134,129 | 114,514 |
Securities - available for sale | 255,609 | 275,029 |
Securities - held to maturity, fair value $7,527 and $30,821, respectively | 8,557 | 29,352 |
Loans, net of allowance for loan and lease losses of $18,748 and $15,405, respectively | 2,792,108 | 2,012,219 |
Assets held for sale | 71,362 | |
Federal Home Loan Bank stock, at cost | 16,006 | 8,430 |
Premises and equipment, net | 62,861 | 45,460 |
Other real estate owned, net | 9,191 | 6,077 |
Goodwill | 44,126 | 28,810 |
Intangible assets, net | 19,652 | 17,721 |
Bank-owned life insurance | 44,364 | 36,509 |
Deferred tax asset, net | 8,959 | 18,825 |
Other assets | 32,109 | 48,121 |
Total assets | 3,499,033 | 2,641,067 |
Liabilities | ||
Noninterest bearing | 564,225 | 363,351 |
Interest bearing | 2,057,123 | 1,652,434 |
Total deposits | 2,621,348 | 2,015,785 |
Customer repurchase agreements | 11,488 | 10,490 |
Federal Home Loan Bank advances | 365,000 | 230,000 |
Subordinated notes | 48,828 | 48,734 |
Junior subordinated debentures | 38,623 | 32,740 |
Other liabilities | 22,048 | 13,973 |
Total liabilities | 3,107,335 | 2,351,722 |
Commitments and contingencies - See Notes 13 and 14 | ||
Stockholders' equity - See Note 18 | ||
Preferred Stock | 9,658 | 9,746 |
Common stock | 209 | 182 |
Additional paid-in-capital | 264,855 | 197,157 |
Treasury stock, at cost | (1,784) | (1,374) |
Retained earnings | 119,356 | 83,910 |
Accumulated other comprehensive income (loss) | (596) | (276) |
Total stockholders’ equity | 391,698 | 289,345 |
Total liabilities and stockholders' equity | $ 3,499,033 | $ 2,641,067 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Statement Of Financial Position [Abstract] | ||||
Securities - Held to maturity, Fair value | $ 7,527 | $ 30,821 | ||
Allowance for loan and lease losses | $ 18,748 | $ 15,405 | $ 12,567 | $ 8,843 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income: | |||
Loans, including fees | $ 121,567 | $ 84,244 | $ 61,637 |
Factored receivables, including fees | 47,177 | 35,213 | 33,944 |
Securities | 6,823 | 4,309 | 2,558 |
FHLB & FRB stock | 207 | 73 | 156 |
Cash deposits | 1,450 | 653 | 465 |
Total interest income | 177,224 | 124,492 | 98,760 |
Interest expense: | |||
Deposits | 13,082 | 9,156 | 6,906 |
Subordinated notes | 3,344 | 835 | |
Junior subordinated debentures | 1,955 | 1,427 | 1,121 |
Other borrowings | 3,159 | 716 | 82 |
Total interest expense | 21,540 | 12,134 | 8,109 |
Net interest income | 155,684 | 112,358 | 90,651 |
Provision for loan losses | 11,628 | 6,693 | 4,529 |
Net interest income after provision for loan losses | 144,056 | 105,665 | 86,122 |
Noninterest income: | |||
Service charges on deposits | 4,181 | 3,447 | 2,732 |
Card income | 3,822 | 2,732 | 2,234 |
Net OREO gains (losses) and valuation adjustments | (850) | (1,427) | (108) |
Net gains (losses) on sale of securities | 35 | (56) | 259 |
Net gains on sale of loans | 16 | 1,630 | |
Fee income | 2,503 | 2,240 | 1,931 |
Insurance commissions | 2,981 | 1,295 | 296 |
Bargain purchase gain | 15,117 | ||
Gain on sale of subsidiary | 20,860 | ||
Asset management fees | 1,717 | 6,574 | 5,646 |
Other | 5,407 | 6,135 | 3,560 |
Total noninterest income | 40,656 | 20,956 | 33,297 |
Noninterest expense: | |||
Salaries and employee benefits | 72,696 | 54,531 | 50,175 |
Occupancy, furniture and equipment | 9,833 | 7,301 | 6,259 |
FDIC insurance and other regulatory assessments | 1,201 | 913 | 1,086 |
Professional fees | 7,192 | 5,529 | 4,429 |
Amortization of intangible assets | 5,201 | 3,782 | 3,979 |
Advertising and promotion | 3,226 | 2,716 | 2,061 |
Communications and technology | 8,843 | 6,491 | 4,360 |
Other | 15,422 | 11,849 | 9,516 |
Total noninterest expense | 123,614 | 93,112 | 81,865 |
Net income before income tax | 61,098 | 33,509 | 37,554 |
Income tax expense | 24,878 | 12,809 | 8,421 |
Net income | 36,220 | 20,700 | 29,133 |
Dividends on preferred stock | (774) | (887) | (780) |
Net income available to common stockholders | $ 35,446 | $ 19,813 | $ 28,353 |
Earnings per common share | |||
Basic | $ 1.85 | $ 1.11 | $ 1.60 |
Diluted | $ 1.81 | $ 1.10 | $ 1.57 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 36,220 | $ 20,700 | $ 29,133 |
Unrealized gains (losses) on securities available for sale: | |||
Unrealized holding gains (losses) arising during the period | (298) | (934) | (787) |
Reclassification of amount realized through sale of securities | (35) | 56 | (259) |
Tax effect | 13 | 325 | 372 |
Total other comprehensive income (loss) | (320) | (553) | (674) |
Comprehensive income | $ 35,900 | $ 20,147 | $ 28,459 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A Preferred Dividends | Series B Preferred Dividends | TARP Preferred dividends | Preferred Stock | Common Stock | Additional Paid-in-Capital | Treasury Stock | Retained Earnings | Retained EarningsSeries A Preferred Dividends | Retained EarningsSeries B Preferred Dividends | Retained EarningsTARP Preferred dividends | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 237,509 | $ 9,746 | $ 180 | $ 191,049 | $ (161) | $ 35,744 | $ 951 | ||||||
Beginning Balance (in shares) at Dec. 31, 2014 | 17,963,783 | 10,984 | |||||||||||
Issuance of restricted stock awards | $ 1 | (1) | |||||||||||
Issuance of restricted stock awards (in shares) | 77,956 | ||||||||||||
Forfeiture of restricted stock awards | 56 | $ (56) | |||||||||||
Forfeiture of restricted stock awards (in shares) | (3,632) | 3,632 | |||||||||||
Excess tax benefit on restricted stock vested | 116 | 116 | |||||||||||
Stock based compensation | 3,077 | 3,077 | |||||||||||
Purchase of treasury stock | (343) | $ (343) | |||||||||||
Purchase of treasury stock (in shares) | 19,907 | (19,907) | |||||||||||
Preferred dividends | $ (365) | $ (415) | $ (365) | $ (415) | |||||||||
Net income | 29,133 | 29,133 | |||||||||||
Other comprehensive income (loss) | (674) | (674) | |||||||||||
Ending Balance at Dec. 31, 2015 | 268,038 | 9,746 | $ 181 | 194,297 | $ (560) | 64,097 | 277 | ||||||
Ending Balance (in shares) at Dec. 31, 2015 | 18,018,200 | 34,523 | |||||||||||
Issuance of restricted stock awards | $ 1 | (1) | |||||||||||
Issuance of restricted stock awards (in shares) | 101,642 | ||||||||||||
Forfeiture of restricted stock awards | 160 | $ (160) | |||||||||||
Forfeiture of restricted stock awards (in shares) | (9,820) | 9,820 | |||||||||||
Excess tax benefit on restricted stock vested | 334 | 334 | |||||||||||
Stock based compensation | 2,367 | 2,367 | |||||||||||
Purchase of treasury stock | (654) | $ (654) | |||||||||||
Purchase of treasury stock (in shares) | 31,775 | (31,775) | |||||||||||
Preferred dividends | (366) | (417) | $ (104) | (366) | (417) | $ (104) | |||||||
TARP preferred stock assumed in acquisition | 10,500 | 10,500 | |||||||||||
Redemption of TARP preferred stock | (10,500) | (10,500) | |||||||||||
Net income | 20,700 | 20,700 | |||||||||||
Other comprehensive income (loss) | (553) | (553) | |||||||||||
Ending Balance at Dec. 31, 2016 | 289,345 | 9,746 | $ 182 | 197,157 | $ (1,374) | 83,910 | (276) | ||||||
Ending Balance (in shares) at Dec. 31, 2016 | 18,078,247 | 76,118 | |||||||||||
Issuance of common stock, net of expenses | 65,509 | $ 25 | 65,484 | ||||||||||
Issuance of common stock, net of expenses (in shares) | 2,530,000 | ||||||||||||
Issuance of restricted stock awards (in shares) | 45,732 | ||||||||||||
Forfeiture of restricted stock awards | 44 | $ (44) | |||||||||||
Forfeiture of restricted stock awards (in shares) | (1,636) | 1,636 | |||||||||||
Stock based compensation | 1,801 | 1,801 | |||||||||||
Stock option exercises, net | 283 | 283 | |||||||||||
Stock option exercises, net (in shares) | 23,059 | ||||||||||||
Warrant exercises, net | $ 2 | (2) | |||||||||||
Warrant exercises, net (in shares) | 153,134 | ||||||||||||
Purchase of treasury stock | (366) | $ (366) | |||||||||||
Purchase of treasury stock (in shares) | 14,197 | (14,197) | |||||||||||
Preferred stock converted to common stock | (88) | 88 | |||||||||||
Preferred stock converted to common stock (in shares) | 6,106 | ||||||||||||
Preferred dividends | $ (365) | $ (409) | $ (365) | $ (409) | |||||||||
Net income | 36,220 | 36,220 | |||||||||||
Other comprehensive income (loss) | (320) | (320) | |||||||||||
Ending Balance at Dec. 31, 2017 | $ 391,698 | $ 9,658 | $ 209 | $ 264,855 | $ (1,784) | $ 119,356 | $ (596) | ||||||
Ending Balance (in shares) at Dec. 31, 2017 | 20,820,445 | 91,951 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 36,220,000 | $ 20,700,000 | $ 29,133,000 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation | 4,001,000 | 2,817,000 | 2,143,000 |
Net accretion on loans and deposits | (7,071,000) | (7,482,000) | (4,928,000) |
Amortization of subordinated notes issuance costs | 94,000 | 23,000 | |
Amortization of junior subordinated debentures | 413,000 | 325,000 | 264,000 |
Net amortization on securities | 638,000 | 2,285,000 | 590,000 |
Amortization of intangible assets | 5,201,000 | 3,782,000 | 3,979,000 |
Deferred taxes | 10,164,000 | 1,887,000 | (280,000) |
Provision for loan losses | 11,628,000 | 6,693,000 | 4,529,000 |
Stock based compensation | 1,801,000 | 2,367,000 | 3,077,000 |
Origination of loans held for sale | (891,000) | (59,261,000) | |
Proceeds from sale of loans originated for sale | 2,248,000 | 62,838,000 | |
Net (gains) losses on sale of securities | (35,000) | 56,000 | (259,000) |
Net (gains) losses on loans transferred to loans held for sale | 80,000 | (154,000) | |
Net gains on sale of loans | (16,000) | (1,630,000) | |
Net OREO (gains) losses and valuation adjustments | 850,000 | 1,427,000 | 108,000 |
Income from CLO warehouse investments | (2,226,000) | (3,184,000) | (1,151,000) |
Bargain purchase gain | (15,117,000) | ||
Gain on sale of subsidiary | (20,860,000) | ||
(Increase) decrease in other assets | 1,515,000 | 1,197,000 | 1,075,000 |
Increase (decrease) in other liabilities | 4,860,000 | (3,097,000) | 186,000 |
Net cash provided by (used in) operating activities | 47,273,000 | 30,983,000 | 25,296,000 |
Cash flows from investing activities: | |||
Purchases of securities available for sale | (8,042,000) | (19,942,000) | (30,544,000) |
Proceeds from sales of securities available for sale | 32,441,000 | 34,338,000 | 17,635,000 |
Proceeds from maturities, calls, and pay downs of securities available for sale | 89,443,000 | 31,847,000 | 11,132,000 |
Purchases of securities held to maturity | (5,092,000) | (29,117,000) | |
Proceeds from maturities, calls, and pay downs of securities held to maturity | 28,216,000 | 136,000 | |
Purchases of loans (shared national credits) | (995,000) | (28,619,000) | |
Proceeds from sale of loans | 3,834,000 | 24,538,000 | |
Net change in loans | (586,120,000) | (295,315,000) | (252,390,000) |
Purchases of premises and equipment, net | (7,953,000) | (4,325,000) | (2,437,000) |
Net proceeds from sale of OREO | 5,179,000 | 3,320,000 | 3,881,000 |
Net cash paid for CLO warehouse investments | (10,000,000) | (25,000,000) | (20,500,000) |
Net proceeds from CLO warehouse investments | 30,000,000 | 25,500,000 | 2,450,000 |
(Purchases) redemptions of FHLB and Federal Reserve Bank stock, net | (7,261,000) | (4,062,000) | 1,085,000 |
Cash paid for acquisitions, net of cash acquired | 45,315,000 | (14,479,000) | (127,591,000) |
Proceeds from sale of loans obtained through Doral Money Inc. acquisition | 36,765,000 | ||
Proceeds from sale of subsidiary, net | 10,269,000 | ||
Net cash provided by (used in) investing activities | (379,771,000) | (273,556,000) | (389,133,000) |
Cash flows from financing activities: | |||
Net increase in deposits | 151,463,000 | 114,002,000 | 83,998,000 |
Increase (decrease) in customer repurchase agreements | 998,000 | 1,173,000 | 35,000 |
Increase (decrease) in Federal Home Loan Bank advances | 135,000,000 | 100,000,000 | 127,000,000 |
Proceeds from issuance of subordinated notes, net | 48,676,000 | ||
Proceeds from issuance of other borrowings | 99,975,000 | ||
Repayment of other borrowings | (1,659,000) | ||
Issuance of common stock, net of expenses | 65,509,000 | ||
Purchase of treasury stock | (366,000) | (654,000) | (343,000) |
Dividends on preferred stock | (774,000) | (887,000) | (780,000) |
Stock option exercises | 283,000 | ||
Net cash provided by (used in) financing activities | 352,113,000 | 251,810,000 | 308,226,000 |
Net increase (decrease) in cash and cash equivalents | 19,615,000 | 9,237,000 | (55,611,000) |
Cash and cash equivalents at beginning of period | 114,514,000 | 105,277,000 | 160,888,000 |
Cash and cash equivalents at end of period | 134,129,000 | 114,514,000 | 105,277,000 |
Supplemental cash flow information: | |||
Interest paid | 20,393,000 | 10,453,000 | 7,864,000 |
Income taxes paid, net | 12,890,000 | 10,942,000 | 5,878,000 |
Supplemental noncash disclosures: | |||
Loans transferred to OREO | 6,585,000 | 470,000 | 743,000 |
Premises transferred to OREO | 276,000 | 2,215,000 | |
Loans transferred to loans held for sale | 3,914,000 | 24,384,000 | 0 |
Consideration received from sale of subsidiary | 12,123,000 | ||
Assets transferred to assets held for sale | $ 71,362,000 | ||
Securities transferred in satisfaction of other borrowings | 98,316,000 | ||
Loan purchases, not yet settled (shared national credits) | 995,000 | ||
Held to maturity securities transferred to available for sale | $ 747,000 | ||
TARP Preferred Stock | |||
Cash flows from financing activities: | |||
Redemption of TARP preferred stock | $ (10,500,000) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Triumph Bancorp, Inc. (collectively with its subsidiaries, “Triumph”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Advance Business Capital LLC, which currently operates under the d/b/a of Triumph Business Capital (“TBC”), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). On March 31, 2017 the Company sold its membership interest in its wholly owned subsidiary Triumph Capital Advisors, LLC (“TCA”). See Note 2 – Business Combinations and Divestitures for details of the TCA sale and its impact on the Company’s consolidated financial statements. On January 19, 2018, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Healthcare Finance (“THF”), and exit its healthcare asset-based lending line of business. THF operates within the TBK Bank, SSB subsidiary. The decision to sell THF was made prior to the end of the year, and at December 31, 2017, the fair value of the Disposal Group exceeded its carrying amount. As a result of this decision, the carrying amount of the Disposal Group was transferred to assets held for sale. See Note 2 – Business Combinations and Divestitures for additional information pertaining to the Disposal Group and the impact of the transaction on the Company’s consolidated financial statements. Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes. Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ . Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows. Securities The Company determines the classification of securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition. The Company conducts regular reviews of the bond agency ratings of securities and considers whether the securities were issued by or have principal and interest payments guaranteed by the federal government or its agencies. These reviews focus on the underlying rating of the issuer and also include the insurance rating of securities that have an insurance component or guarantee. The ratings and financial condition of the issuers are monitored, as well as the financial condition and ratings of the insurers and guarantors. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized through earnings, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. Loans Held for Sale The Company elects the fair value option for recording mortgage loans originated and intended for sale in the secondary market in accordance with Accounting Standards Codification (“ASC”) 825, “Financial Instruments”. The fair value of mortgage loans held for sale is determined based on outstanding commitments from investors to purchase such loans and upon prevailing market rates. Increases or decreases in the fair value of these loans held for sale, if any, are charged to earnings through net gains on sale of loans. Mortgage loans held for sale are generally sold with servicing rights released. Gains and losses on sales of mortgage loans are based on the difference between the final selling price and the fair value of the related loan sold. The Company originated and sold mortgage loans during the years ended December 31, 2016 and 2015 and these activities are reflected in the Consolidated Statements of Income and the Consolidated Statements of Cash Flows for these respective years; however, there were no mortgage loans held for sale carried on the Consolidated Balance Sheets at December 31, 2017 and 2016 as the Company made the decision to exit the residential mortgage production business in the fourth quarter of 2015. Management occasionally transfers non-mortgage loans from held for investment to held for sale. Gains or losses on the sale of these loans are recorded in noninterest income. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, and any direct principal charge-offs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan 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. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable are considered purchased credit impaired (“PCI”). PCI loans are individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized on the balance sheet and do not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on PCI loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). For acquired loans not deemed credit-impaired at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to the acquisition date, methods utilized to estimate the required allowance for loan and lease losses for these loans is similar to originated loans; however, a provision for credit losses will be recorded only to the extent the required allowance exceeds any remaining purchase discounts. Once an acquired loan undergoes new underwriting and meets the criteria for a new loan, such as in the case of a loan renewal, any remaining fair value adjustments are accreted into interest income and the loan establishes a new amortized cost basis that is fully subject to the Company's allowance for loan and lease loss methodology. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased are recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income as incurred by the client. Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Allowance for Loan and Lease Losses The allowance for loan and lease losses (the “ALLL”) is a valuation allowance maintained to cover incurred losses that are estimated in accordance with US GAAP. It is our estimate of credit losses inherent in our loan portfolio at each balance sheet date. Our methodology for analyzing the allowance for loan and lease losses consists of general and specific components. For the general component, we stratify the loan portfolio into homogeneous groups of loans that possess similar loss potential characteristics and apply a loss ratio to these groups of loans to estimate the credit losses in the loan portfolio. We use both historical loss ratios and qualitative loss factors assigned to major loan collateral types to establish general component loss allocations. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data and external economic indicators, which are not yet reflected in the historical loss ratios, and that could impact the Company's loan portfolios. Management sets and adjusts qualitative loss factors by regularly reviewing changes in underlying loan composition of specific portfolios. Management also considers credit quality and trends relating to delinquency, non-performing and adversely rated loans within the Company's loan portfolio when evaluating qualitative loss factors. Additionally, management adjusts qualitative factors to account for the potential impact of external economic factors and other pertinent economic data specific to our primary market area and lending portfolios. For the specific component, the allowance for loan and lease losses includes loans where management has concerns about the borrower's ability to repay and on individually analyzed loans found to be impaired. Management evaluates current information and events regarding a borrower's ability to repay its obligations and considers a loan to be impaired when the ultimate collectability of amounts due, according to the contractual terms of the loan agreement, is in doubt. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If an impaired loan is collateral-dependent, the fair value of the collateral, less the estimated cost to sell, is used to determine the amount of impairment. If an impaired loan is not collateral-dependent, the impairment amount is determined using the negative difference, if any, between the estimated discounted cash flows and the loan amount due. For impaired loans, the amount of the impairment can be adjusted, based on current data, until such time as the actual basis is established by acquisition of the collateral or until the basis is collected. Impairment losses are reflected in the allowance for loan and lease losses through a charge to the provision for credit losses. Subsequent recoveries are credited to the allowance for loan and lease losses. Cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal. Loan losses are charged against the ALLL when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. Allocations of the ALLL may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. The Company considers these loans to be homogeneous in nature due to the smaller dollar amount and the similar underwriting criteria. PCI loans are not considered impaired on the acquisition date. For PCI loans, a decline in the present value of current expected cash flows compared to the previously estimated expected cash flows, due in any part to change in credit, is considered an impairment event and a provision for loan losses will be recorded during the period as necessary. A loan that has been modified or renewed is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. TDRs are separately identified for impairment and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral up to the carrying amount of the loan. The following loan portfolio categories have been identified for purposes of determining the general component of the ALLL: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, 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. 1-4 family residential properties — 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. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans 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. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Commercial loans also include shared national credits purchased by the Company. A portion of the commercial loan portfolio consists of specialty commercial finance products as follows: Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less. Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Premium Finance — Loans that provide customized premium financing solutions for the acquisition of property and casualty insurance coverage. In effect, these short term premium finance loans allow insureds to pay their insurance premiums over the life of the underlying policy, instead of paying the entire premium at the outset. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships ( , the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships ( , the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use typically on an unsecured basis. 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 has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. Federal Home Loan Bank (“FHLB”) Stock The Company is a member of the FHLB system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, are restricted as to redemption, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from thirty to forty years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from three to ten years. Foreclosed Assets Assets acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or the fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan and lease losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed . Goodwill Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. In accordance with ASC 350-20, "Intangibles- Goodwill and Other", the Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount, in accordance with ASC 350-20. The Company’s annual goodwill impairment testing date is October 1. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the two-step test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualitative method, that the fair value is more likely than not less than the carrying amount, the Company uses the two-step test. Under the two-step test, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two of the goodwill impairment test compares the implied estimated fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for that reporting unit exceeds the implied fair value of that unit’s goodwill, an impairment loss is recognized in an amount equal to that excess. Our annual goodwill impairment test did not identify any goodwill impairment for the years ended December 31, 2017 and 2016. Identifiable Intangible Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets primarily relate to core deposits and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value with a charge to amortization of intangible assets. Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Income Taxes The Company files a consolidated tax return with its subsidiaries and is taxed as a C corporation. 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. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax bene |
Business Combinations and Dives
Business Combinations and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Business Combinations and Divestitures | NOTE 2 – Business combinations AND DIVESTITURES Triumph Healthcare Finance On January 19, 2018, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Healthcare Finance (“THF”) and exit its healthcare asset-based lending line of business. The decision to sell THF was made prior to the end of the year, and at December 31, 2017, the fair value of the Disposal Group exceeded its carrying amount. As a result of this decision, the carrying amount of the Disposal Group was transferred to assets held for sale. A summary of the carrying amount of the assets in the Disposal Group transferred to held for sale is as follows: (Dollars in thousands) Loans $ 70,771 Allowance for loan and lease losses (2,103 ) Loans, net of allowance for loan and lease losses 68,668 Premises and equipment, net 33 Goodwill 1,024 Intangible assets, net 1,007 Other assets 630 Total carrying amount $ 71,362 The loans in the Disposal Group transferred to assets held for sale were previously included in the commercial loan portfolio. Loans in the Disposal Group with a recorded investment of $245,000 were classified as nonaccrual and impaired without a valuation allowance, and loans in the Disposal Group with a recorded investment of $5,431,000 were classified as substandard at December 31, 2017. The Disposal Group is included in the Banking segment. Valley Bancorp, Inc. Effective December 9, 2017, the Company acquired Valley Bancorp, Inc. (“Valley”) and its community banking subsidiary, Valley Bank & Trust, in an all-cash transaction. Valley Bank & Trust serves individuals and business customers from seven locations across the northern front range including Brighton, Dacono, Denver, Hudson, Westminster and Strasburg, Colorado. Valley Bank & Trust was merged into TBK Bank upon closing. The acquisition expanding the Company’s market in Colorado and further diversified the Company’s loan, customer, and deposit base. A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 38,473 Securities 97,687 Loans 171,199 FHLB stock 315 Premises and equipment 6,238 Other real estate owned 2,282 Intangible assets 6,072 Bank-owned life insurance 7,153 Other assets 1,882 331,301 Liabilities assumed: Deposits 293,398 Junior subordinated debentures 5,470 Other liabilities 2,881 301,749 Fair value of net assets acquired 29,552 Consideration transferred 40,075 Goodwill $ 10,523 The Company has recognized goodwill of $10,523,000, which was calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Banking segment. The goodwill in this acquisition resulted from expected synergies and expansion in the Colorado market. The goodwill will be deducted for tax purposes. The intangible assets recognized in the transaction will be amortized utilizing an accelerated method over their ten year estimated useful lives. The initial accounting for the acquisition has not been completed because the fair values of the assets acquired and liabilities assumed have not yet been finalized. In connection with the acquisition, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The acquired loans were initially recorded at fair value with no carryover of any allowance for loan and lease losses. Acquired loans were segregated between those considered to be purchased credit impaired (“PCI”) loans and those without credit impairment at acquisition. The following table presents details of the estimated fair value of acquired loans at the acquisition date: Loans, Excluding PCI Total (Dollars in thousands) PCI Loans Loans Loans Commercial real estate $ 73,273 $ 254 $ 73,527 Construction, land development, land 19,770 1,199 20,969 1-4 family residential properties 26,264 — 26,264 Farmland 16,934 — 16,934 Commercial 31,893 — 31,893 Factored receivables — — — Consumer 1,612 — 1,612 Mortgage warehouse — — — $ 169,746 $ 1,453 $ 171,199 The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 214,139 Contractual cash flows not expected to be collected $ 3,646 Fair value at acquisition $ 169,746 The following presents information at the acquisition date for PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 2,599 Contractual cash flows not expected to be collected (nonaccretable difference) 775 Expected cash flows at acquisition 1,824 Interest component of expected cash flows (accretable yield) 371 Fair value of loans acquired with deterioration of credit quality $ 1,453 The operations of Valley are included in the Company’s operating results beginning December 9, 2017. Expenses related to the acquisition, including professional fees and other transaction costs, totaling $1,251,000 were recorded in noninterest expense in the consolidated statements of income during the year ended December 31, 2017. Independent Bank – Colorado Branches On October 6, 2017, the Company completed its acquisition of nine branch locations in Colorado from Independent Bank Group, Inc.’s banking subsidiary Independent Bank for an aggregate deposit premium of $6,771,000 or 4.2%. The branches were merged into TBK Bank upon closing. The primary purpose of the acquisition was to improve the Company’s core deposit base and continue to build upon the diversification of the Company’s loan portfolio. A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 1,611 Loans 95,794 Premises and equipment 7,524 Intangible assets 3,255 Other assets 1,644 109,828 Liabilities assumed: Deposits 160,702 Other liabilities 249 160,951 Fair value of net assets acquired (51,123 ) Cash received from seller, net of $6,771 deposit premium 45,306 Goodwill $ 5,817 The Company has recognized goodwill of $5,817,000, which was calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Banking segment. The goodwill in this acquisition resulted from expected synergies and expansion in the Colorado market. The goodwill will be deducted for tax purposes. The intangible assets recognized in the transaction will be amortized utilizing an accelerated method over their ten year estimated useful lives. The initial accounting for the acquisition has not been completed because the fair values of the assets acquired and liabilities assumed have not yet been finalized. The loans acquired in the transaction were initially recorded at fair value with no carryover of any allowance for loan and lease losses. There were no loans acquired that were considered to be purchased credit impaired (“PCI”) loans. The following table presents details of the estimated fair value of acquired loans at the acquisition date: (Dollars in thousands) Commercial real estate $ 13,382 Construction, land development, land 537 1-4 family residential properties 6,986 Farmland 31,490 Commercial 43,104 Factored receivables — Consumer 295 Mortgage warehouse — $ 95,794 The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 122,498 Contractual cash flows not expected to be collected $ 3,415 Fair value at acquisition $ 95,794 The operations of the branches acquired are included in the Company’s operating results beginning October 6, 2017. Expenses related to the acquisition, including professional fees and other transaction costs, totaling $437,000 were recorded in noninterest expense in the consolidated statements of income during the year ended December 31, 2017. Triumph Capital Advisors, LLC On March 31, 2017, the Company sold its wholly owned asset management subsidiary, Triumph Capital Advisors, LLC, to an unrelated third party. The transaction was completed to enhance shareholder value and provide a platform for TCA to operate without the impact of regulations intended for depository institutions and their holding companies. A summary of the consideration received and the gain on sale is as follows: (Dollars in thousands) Consideration received (fair value): Cash $ 10,554 Loan receivable 10,500 Revenue share 1,623 Total consideration received 22,677 Carrying value of TCA membership interest 1,417 Gain on sale of subsidiary 21,260 Transaction costs 400 Gain on sale of subsidiary, net of transaction costs $ 20,860 The Company financed a portion of the consideration received with a $10,500,000 term credit facility. Terms of the floating rate credit facility provide for quarterly principal and interest payments with an interest rate floor of 5.50%, maturing on March 31, 2023. The Company received a $25,000 origination fee associated with the term credit facility that was deferred and is being accreted over the contractual life of the loan as a yield adjustment. In addition, the Company is entitled to receive an annual earn-out payment representing 3% of TCA’s future annual gross revenue, with a total maximum earn-out amount of $2,500,000. The revenue share earn-out was considered contingent consideration which the Company recorded as an asset at its estimated fair value of $1,623,000 on the date of sale. The fair value of the revenue share asset was $1,737,000 at December 31, 2017. The Company incurred pre-tax expenses related to the transaction, including professional fees and other direct transaction costs, totaling $400,000 which were netted against the gain on sale of subsidiary in the consolidated statements of income. Southern Transportation Insurance Agency On September 1, 2016, the Company acquired Southern Transportation Insurance Agency, Ltd. in an all-cash transaction for $2,150,000. The purpose of the acquisition was to expand the Company’s product offerings for clients in the transportation industry. The Company recognized an intangible asset of $1,580,000 and goodwill of $570,000, which were allocated to the Company’s Banking segment. Goodwill resulted from expected enhanced product offerings and will be deducted for tax purposes. The intangible assets recognized in the transaction will be amortized utilizing a straight line method over their eight year estimated useful lives. ColoEast Bankshares, Inc. On August 1, 2016, the Company acquired 100% of the outstanding common stock of ColoEast Bankshares, Inc. (“ColoEast”) and its community banking subsidiary, Colorado East Bank & Trust, in an all-cash transaction for $70,000,000. The Company also assumed $10,500,000 of ColoEast preferred stock issued in conjunction with the U.S. Government’s Treasury Asset Relief Program (“TARP Preferred Stock”). Colorado East Bank & Trust, which was merged into TBK Bank upon closing, offers personal checking, savings, CD, money market, HSA, IRA, NOW and business accounts, as well as commercial and consumer loans from 18 branches and one loan production office located throughout Colorado and far western Kansas. The acquisition expanded the Company’s market into Colorado and Kansas and further diversified the Company’s loan, customer, and deposit base. A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: Initial Values Measurement Recorded at Period Adjusted (Dollars in thousands) Acquisition Date Adjustments Values Assets acquired: Cash and cash equivalents $ 57,671 $ — $ 57,671 Securities 161,693 — 161,693 Loans 460,775 — 460,775 FHLB and Federal Reserve Bank stock 550 — 550 Premises and equipment 23,940 — 23,940 Other real estate owned 3,105 (143 ) 2,962 Intangible assets 7,238 — 7,238 Bank-owned life insurance 6,400 — 6,400 Deferred income taxes 4,511 (70 ) 4,441 Other assets 10,022 — 10,022 735,905 (213 ) 735,692 Liabilities assumed: Deposits 652,952 — 652,952 Junior subordinated debentures 7,728 — 7,728 Other liabilities 6,784 — 6,784 667,464 — 667,464 Fair value of net assets acquired 68,441 (213 ) 68,228 Cash paid 70,000 — 70,000 TARP Preferred Stock assumed 10,500 — 10,500 Consideration transferred 80,500 — 80,500 Goodwill $ 12,059 $ 213 $ 12,272 The consideration was comprised of a combination of cash and the assumption of ColoEast’s TARP Preferred Stock. The Company recognized goodwill of $12,272,000, which included measurement period adjustments related to the final valuation of other real estate owned acquired in the transaction and the finalization of income taxes associated with the transaction. Goodwill was calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of identifiable net assets acquired and was allocated to the Company’s Banking segment. The goodwill in this acquisition resulted from expected synergies and expansion into the Colorado and Kansas markets The TARP Preferred Stock assumed in the acquisition was redeemed by the Company at par on August 31, 2016. In connection with the ColoEast acquisition, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The acquired loans were initially recorded at fair value with no carryover of any allowance for loan and lease losses. Acquired loans were segregated between those considered to be purchased credit impaired (“PCI”) loans and those without credit impairment at acquisition. The following table presents details on acquired loans at the acquisition date: Loans, Excluding PCI Total (Dollars in thousands) PCI Loans Loans Loans Commercial real estate $ 86,569 $ 10,907 $ 97,476 Construction, land development, land 58,718 2,933 61,651 1-4 family residential properties 36,412 91 36,503 Farmland 100,977 233 101,210 Commercial 151,605 5,129 156,734 Factored receivables 694 — 694 Consumer 6,507 — 6,507 $ 441,482 $ 19,293 $ 460,775 The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 530,404 Contractual cash flows not expected to be collected $ 21,272 Fair value at acquisition $ 441,482 Information about the acquired loan portfolio subject to PCI accounting guidance as of August 1, 2016 is as follows: (Dollars in thousands) Contractually required principal and interest payments $ 25,124 Contractual cash flows not expected to be collected (nonaccretable difference) 1,707 Expected cash flows at acquisition 23,417 Interest component of expected cash flows (accretable yield) 4,124 Fair value of loans acquired with deterioration of credit quality $ 19,293 The following table presents pro forma information for the years ended December 31, 2016 and 2015 as if the ColoEast acquisition had occurred at the beginning of 2015. The pro forma information includes adjustments for interest income on loans acquired, interest expense on junior subordinated debentures assumed, depreciation expense on property acquired, amortization of intangibles arising from the transaction, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been completed on the assumed date. (Dollars in thousands) December 31, 2016 December 31, 2015 Net interest income $ 128,322 $ 117,051 Noninterest income $ 22,671 $ 36,539 Net income $ 21,220 $ 31,624 Basic earnings per common share $ 1.14 $ 1.73 Diluted earnings per common share $ 1.13 $ 1.70 The operations of ColoEast are included in the Company’s operating results beginning August 1, 2016. Expenses related to the acquisition, including professional fees and other transaction costs, totaling $1,618,000 were recorded in noninterest expense in the consolidated statements of income during the year ended December 31, 2016. Doral Money Acquisition On March 3, 2015, the Company acquired 100% of the equity of Doral Money, Inc. (“DMI”), a subsidiary of Doral Bank, and the management contracts associated with two active CLOs with approximately $700,000,000 of managed assets. The consideration transferred in the acquisition consisted of cash paid of $135,864,000. The primary purpose of the acquisition was to expand the managed CLO assets at Triumph Capital Advisors, LLC. A summary of the fair values of assets acquired, liabilities assumed, net consideration transferred, and the resulting bargain purchase gain is as follows: Initial Values Measurement Recorded at Period Adjusted (Dollars in thousands) Acquisition Date Adjustments Values Assets acquired: Cash $ 8,273 $ — $ 8,273 CLO Securities 98,316 — 98,316 Intangible asset - CLO management contracts 1,918 — 1,918 Loans 36,765 900 37,665 Prepaid corporate income tax 3,014 1,688 4,702 Other assets 772 — 772 149,058 2,588 151,646 Liabilities assumed: Deferred tax liability 663 — 663 Other liabilities 22 (20 ) 2 685 (20 ) 665 Fair value of net assets acquired 148,373 2,608 150,981 Net consideration transferred 135,864 — 135,864 Bargain purchase gain $ (12,509 ) $ (2,608 ) $ (15,117 ) The Company completed the acquisition via an FDIC bid process for DMI as part of the Doral Bank failure and the resulting nontaxable bargain purchase gain represents the excess of the fair value of the net assets acquired over the fair value of the net consideration transferred. The Company incurred pre-tax expenses related to the acquisition of approximately $243,000 which are included in professional fees in the consolidated statements of income in the period incurred. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | NOTE 3 — SECURITIES Securities have been classified in the financial statements as available for sale or held to maturity. The amortized cost of securities and their approximate fair values at December 31, 2017 and 2016 are as follows: Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available for sale securities: U.S. Government agency obligations $ 110,531 $ 76 $ (717 ) $ 109,890 U.S. Treasury notes 1,940 — (6 ) 1,934 Mortgage-backed securities, residential 33,537 306 (180 ) 33,663 Asset backed securities 11,883 47 (85 ) 11,845 State and municipal 74,684 150 (443 ) 74,391 Corporate bonds 15,271 52 (3 ) 15,320 SBA pooled securities 3,535 27 (2 ) 3,560 Mutual fund 5,000 6 — 5,006 Total available for sale securities $ 256,381 $ 664 $ (1,436 ) $ 255,609 Gross Gross (Dollars in thousands) Amortized Unrecognized Unrecognized Fair December 31, 2017 Cost Gains Losses Value Held to maturity securities: CLO securities $ 8,557 $ — $ (1,030 ) $ 7,527 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available for sale securities: U.S. Government agency obligations $ 180,945 $ 640 $ (643 ) $ 180,942 Mortgage-backed securities, residential 24,710 453 (173 ) 24,990 Asset backed securities 13,031 30 (159 ) 12,902 State and municipal 27,339 6 (708 ) 26,637 Corporate bonds 27,287 106 (3 ) 27,390 SBA pooled securities 156 1 — 157 Mutual fund 2,000 11 — 2,011 Total available for sale securities $ 275,468 $ 1,247 $ (1,686 ) $ 275,029 Gross Gross (Dollars in thousands) Amortized Unrecognized Unrecognized Fair December 31, 2016 Cost Gains Losses Value Held to maturity securities: CLO securities $ 29,352 $ 1,527 $ (58 ) $ 30,821 The amortized cost and estimated fair value of securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ 30,577 $ 30,540 $ — $ — Due from one year to five years 118,179 117,532 — — Due from five years to ten years 32,427 32,363 — — Due after ten years 21,243 21,100 8,557 7,527 202,426 201,535 8,557 7,527 Mortgage-backed securities, residential 33,537 33,663 — — Asset backed securities 11,883 11,845 — — SBA pooled securities 3,535 3,560 — — Mutual fund 5,000 5,006 — — $ 256,381 $ 255,609 $ 8,557 $ 7,527 Proceeds from sales of securities and the associated gross gains and losses for the years ended December 31, 2017, 2016, and 2015 are as follows: (Dollars in thousands) 2017 2016 2015 Proceeds $ 32,441 $ 34,338 $ 17,635 Gross gains 35 17 259 Gross losses — (73 ) — Securities with a carrying amount of approximately $85,985,000 and $194,571,000 at December 31, 2017 and 2016, respectively, were pledged to secure public deposits, customer repurchase agreements, and for other purposes required or permitted by law. Information pertaining to securities with gross unrealized losses at December 31, 2017 and 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are summarized as follows: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses Available for sale securities: U.S. Government agency obligations $ 47,605 $ (166 ) $ 40,053 $ (551 ) $ 87,658 $ (717 ) U.S. Treasury notes 1,934 (6 ) — — 1,934 (6 ) Mortgage-backed securities, residential 10,349 (21 ) 6,200 (159 ) 16,549 (180 ) Asset backed securities 4,898 (85 ) — — 4,898 (85 ) State and municipal 32,257 (216 ) 12,138 (227 ) 44,395 (443 ) Corporate bonds 4,073 (2 ) 149 (1 ) 4,222 (3 ) SBA pooled securities 1,654 (2 ) — — 1,654 (2 ) Mutual fund — — — — — — Total available for sale securities $ 102,770 $ (498 ) $ 58,540 $ (938 ) $ 161,310 $ (1,436 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized December 31, 2017 Value Losses Value Losses Value Losses Held to maturity securities: CLO securities $ 1,835 $ (28 ) $ 5,692 $ (1,002 ) $ 7,527 $ (1,030 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses Available for sale securities: U.S. Government agency obligations $ 95,362 $ (643 ) $ — $ — $ 95,362 $ (643 ) Mortgage-backed securities, residential 6,594 (173 ) — — 6,594 (173 ) Asset backed securities — — 7,946 (159 ) 7,946 (159 ) State and municipal 25,771 (708 ) — — 25,771 (708 ) Corporate bonds 372 (3 ) — — 372 (3 ) SBA pooled securities — — — — — — Mutual fund — — — — — — $ 128,099 $ (1,527 ) $ 7,946 $ (159 ) $ 136,045 $ (1,686 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized December 31, 2016 Value Losses Value Losses Value Losses Held to maturity securities: CLO securities $ 3,323 $ (58 ) $ — $ — $ 3,323 $ (58 ) Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been 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. At December 31, 2017, the Company had 169 securities in an unrealized loss position. 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. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2017, management believes the unrealized losses detailed in the previous table are temporary and no other than temporary impairment loss has been recognized in the Company’s consolidated statements of income. |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2017 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Loans and Allowance for Loan and Lease Losses | NOTE 4 - LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES The following table presents the recorded investment and unpaid principal for loans at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Recorded Unpaid Recorded Unpaid (Dollars in thousands) Investment Principal Difference Investment Principal Difference Commercial real estate $ 745,893 $ 753,803 $ (7,910 ) $ 442,237 $ 447,926 $ (5,689 ) Construction, land development, land 134,812 138,045 (3,233 ) 109,812 113,211 (3,399 ) 1-4 family residential properties 125,827 127,499 (1,672 ) 104,974 106,852 (1,878 ) Farmland 180,141 184,006 (3,865 ) 141,615 142,673 (1,058 ) Commercial 920,812 924,133 (3,321 ) 778,643 783,349 (4,706 ) Factored receivables 374,410 376,046 (1,636 ) 238,198 239,432 (1,234 ) Consumer 31,131 31,144 (13 ) 29,764 29,782 (18 ) Mortgage warehouse 297,830 297,830 — 182,381 182,381 — Total 2,810,856 $ 2,832,506 $ (21,650 ) 2,027,624 $ 2,045,606 $ (17,982 ) Allowance for loan and lease losses (18,748 ) (15,405 ) $ 2,792,108 $ 2,012,219 The difference between the recorded investment and unpaid principal balance is principally associated with (1) premiums and discounts associated with acquisition date fair value adjustments on acquired loans (both PCI and non-PCI) totaling $18,706,000 and $15,210,000 at December 31, 2017 and 2016, respectively, and (2) net deferred origination and factoring fees totaling $2,944,000 and $2,772,000 at December 31, 2017 and 2016, respectively. As of December 31, 2017, most of the Company’s non-factoring business activity is with customers located within certain states. The states of Texas (24%), Colorado (26%), Illinois (17%), and Iowa (7%), make up 74% of the Company’s gross loans, excluding factored receivables. Therefore, the Company’s exposure to credit risk is affected by changes in the economies in these states. At December 31, of the Company’s gross loans, excluding factored receivables. A majority (77%) of the Company’s factored receivables, representing approximately 10% of the total loan portfolio as of December 31, 2017, are receivables purchased from trucking fleets and owner-operators in the transportation industry. At December 31, 2016, 77% At December 31, 2017 and 2016, the Company had $32,459,000 and $23,597,000, respectively, of customer reserves associated with factored receivables. These amounts represent customer reserves held to settle any payment disputes or collection shortfalls, may be used to pay customers’ obligations to various third parties as directed by the customer, are periodically released to or withdrawn by customers, and are reported as deposits in the consolidated balance sheets. Loans with carrying amounts of $596,230,000 and $497,573,000 at December 31, 2017 and 2016, respectively, were pledged to secure Federal Home Loan Bank advance capacity. During the year ended December 31, 2017, loans with a carrying amount of $3,914,000 were transferred to loans held for sale as the Company made the decision to sell the loans. These loans were subsequently sold resulting in proceeds of $3,834,000 and a loss on sale of loans of $80,000, which was recorded as other noninterest income in the consolidated statements of income. During the year ended December 31, 2016, loans with a carrying amount of $24,384,000 were transferred to loans held for sale as the Company made the decision to sell the loans. These loans were subsequently sold resulting in proceeds of $24,538,000 and a gain on sale of loans of $154,000, which was recorded as other noninterest income in the consolidated statements of income. No loan transfers were recorded during the year ended December 31, 2015. Allowance for Loan and Lease Losses The activity in the ALLL during the years ended December 31, 2017, 2016 and 2015 is as follows: (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2017 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 1,813 $ 1,822 $ (259 ) $ 59 $ — $ 3,435 Construction, land development, land 465 825 (582 ) 175 — 883 1-4 family residential properties 253 24 (31 ) 47 — 293 Farmland 170 140 — — — 310 Commercial 8,014 5,785 (4,875 ) 1,329 (2,103 ) 8,150 Factored receivables 4,088 2,058 (1,667 ) 118 — 4,597 Consumer 420 859 (1,004 ) 508 — 783 Mortgage warehouse 182 115 — — — 297 $ 15,405 $ 11,628 $ (8,418 ) $ 2,236 $ (2,103 ) $ 18,748 (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2016 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 1,489 $ 313 $ (5 ) $ 16 $ — $ 1,813 Construction, land development, land 367 92 — 6 — 465 1-4 family residential properties 274 (22 ) (84 ) 85 — 253 Farmland 134 36 — — — 170 Commercial 5,276 5,390 (3,643 ) 991 — 8,014 Factored receivables 4,509 315 (856 ) 120 — 4,088 Consumer 216 689 (564 ) 79 — 420 Mortgage warehouse 302 (120 ) — — — 182 $ 12,567 $ 6,693 $ (5,152 ) $ 1,297 $ — $ 15,405 (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2015 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 533 $ 1,055 $ (152 ) $ 53 $ — $ 1,489 Construction, land development, land 333 34 — — — 367 1-4 family residential properties 215 60 (205 ) 204 — 274 Farmland 19 115 — — — 134 Commercial 4,003 1,375 (145 ) 43 — 5,276 Factored receivables 3,462 1,508 (540 ) 79 — 4,509 Consumer 140 218 (347 ) 205 — 216 Mortgage warehouse 138 164 — — — 302 $ 8,843 $ 4,529 $ (1,389 ) $ 584 $ — $ 12,567 The following table presents loans individually and collectively evaluated for impairment, as well as PCI loans, and their respective ALLL allocations: (Dollars in thousands) Loan Evaluation ALLL Allocations December 31, 2017 Individually Collectively PCI Total loans Individually Collectively PCI Total ALLL Commercial real estate $ 1,013 $ 735,118 $ 9,762 $ 745,893 $ 123 $ 3,312 $ — $ 3,435 Construction, land development, land 136 130,732 3,944 134,812 — 883 — 883 1-4 family residential properties 2,638 122,093 1,096 125,827 152 141 — 293 Farmland 3,800 176,232 109 180,141 — 310 — 310 Commercial 26,616 893,509 687 920,812 1,409 6,741 — 8,150 Factored receivables 4,726 369,684 — 374,410 949 3,648 — 4,597 Consumer 384 30,747 — 31,131 80 703 — 783 Mortgage warehouse — 297,830 — 297,830 — 297 — 297 $ 39,313 $ 2,755,945 $ 15,598 $ 2,810,856 $ 2,713 $ 16,035 $ — $ 18,748 (Dollars in thousands) Loan Evaluation ALLL Allocations December 31, 2016 Individually Collectively PCI Total loans Individually Collectively PCI Total ALLL Commercial real estate $ 1,456 $ 427,918 $ 12,863 $ 442,237 $ 100 $ 1,358 $ 355 $ 1,813 Construction, land development, land 362 105,493 3,957 109,812 25 440 — 465 1-4 family residential properties 1,095 101,551 2,328 104,974 1 252 — 253 Farmland 1,333 140,045 237 141,615 — 170 — 170 Commercial 33,033 738,088 7,522 778,643 2,101 5,913 — 8,014 Factored receivables 3,176 235,022 — 238,198 1,546 2,542 — 4,088 Consumer 73 29,691 — 29,764 — 420 — 420 Mortgage warehouse — 182,381 — 182,381 — 182 — 182 $ 40,528 $ 1,960,189 $ 26,907 $ 2,027,624 $ 3,773 $ 11,277 $ 355 $ 15,405 The following is a summary of information pertaining to impaired loans. PCI loans that have not deteriorated subsequent to acquisition are not considered impaired and therefore do not require an ALLL and are excluded from these tables. Impaired Loans and PCI Impaired Loans Impaired Loans With a Valuation Allowance Without a Valuation Allowance (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid December 31, 2017 Investment Principal Allowance Investment Principal Commercial real estate $ 165 $ 165 $ 123 $ 848 $ 881 Construction, land development, land — — — 136 136 1-4 family residential properties 237 235 152 2,401 2,519 Farmland — — — 3,800 4,071 Commercial 9,194 9,191 1,409 17,422 17,605 Factored receivables 4,726 4,726 949 — — Consumer 271 267 80 113 115 Mortgage warehouse — — — — — PCI — — — — — $ 14,593 $ 14,584 $ 2,713 $ 24,720 $ 25,327 Impaired Loans and PCI Impaired Loans Impaired Loans With a Valuation Allowance Without a Valuation Allowance (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid December 31, 2016 Investment Principal Allowance Investment Principal Commercial real estate $ 517 $ 517 $ 100 $ 939 $ 1,011 Construction, land development, land 277 275 25 85 86 1-4 family residential properties 8 14 1 1,087 1,215 Farmland — — — 1,333 1,364 Commercial 15,022 15,018 2,101 18,011 18,096 Factored receivables 3,176 3,176 1,546 — — Consumer — — — 73 73 Mortgage warehouse — — — — — PCI 525 525 355 — — $ 19,525 $ 19,525 $ 4,128 $ 21,528 $ 21,845 The following table presents average impaired loans and interest recognized on impaired loans for the years ended December 31, 2017, 2016, and 2015: Years Ended December 31, 2017 December 31, 2016 December 31, 2015 Average Interest Average Interest Average Interest (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Impaired Loans Recognized Commercial real estate $ 1,234 $ 33 $ 1,090 $ 46 $ 1,329 $ — Construction, land development, land 249 — 181 4 — — 1-4 family residential properties 1,867 45 857 18 623 42 Farmland 2,567 45 667 45 — — Commercial 29,825 599 20,474 980 7,552 187 Factored receivables 3,951 — 3,299 — 2,347 — Consumer 229 9 37 5 — — Mortgage warehouse — — — — — — PCI 262 — 525 — 263 — $ 40,184 $ 731 $ 27,130 $ 1,098 $ 12,114 $ 229 Past Due and Nonaccrual Loans The following is a summary of contractually past due and nonaccrual loans at December 31, 2017 and 2016: Past Due Past Due 90 (Dollars in thousands) 30-89 Days Days or More December 31, 2017 Still Accruing Still Accruing Nonaccrual Total Commercial real estate $ 1,374 $ — $ 1,012 $ 2,386 Construction, land development, land — — 136 136 1-4 family residential properties 1,378 62 2,625 4,065 Farmland 250 109 3,412 3,771 Commercial 6,630 39 22,247 28,916 Factored receivables 20,858 1,454 — 22,312 Consumer 947 — 384 1,331 Mortgage warehouse 165 — — 165 PCI 72 — 2,333 2,405 $ 31,674 $ 1,664 $ 32,149 $ 65,487 Past Due Past Due 90 (Dollars in thousands) 30-89 Days Days or More December 31, 2016 Still Accruing Still Accruing Nonaccrual Total Commercial real estate $ 699 $ 144 $ 1,163 $ 2,006 Construction, land development, land 619 — 362 981 1-4 family residential properties 956 — 1,039 1,995 Farmland 3,583 141 541 4,265 Commercial 11,060 1,077 26,619 38,756 Factored receivables 11,921 2,153 — 14,074 Consumer 667 2 73 742 Mortgage warehouse — — — — PCI 2,020 104 8,233 10,357 $ 31,525 $ 3,621 $ 38,030 $ 73,176 The following table presents information regarding nonperforming loans at the dates indicated: (Dollars in thousands) December 31, 2017 December 31, 2016 Nonaccrual loans (1) $ 32,149 $ 38,030 Factored receivables greater than 90 days past due 1,454 2,153 Troubled debt restructurings accruing interest 5,128 5,123 $ 38,731 $ 45,306 (1) Credit Quality Information The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including: current collateral and financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes every loan and is performed on a regular basis. Large groups of smaller balance homogeneous loans, such as consumer loans, are analyzed primarily based on payment status. The Company uses the following definitions for risk ratings: Pass: Loans classified as pass are loans with low to average risk and not otherwise classified as substandard or doubtful. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the repayment of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. PCI: At acquisition, PCI loans had the characteristics of substandard loans and it was probable, at acquisition, that all contractually required principal payments would not be collected. The Company evaluates these loans on a projected cash flow basis with this evaluation performed quarterly. As of December 31, 2017 and 2016 based on the most recent analysis performed, the risk category of loans is as follows: (Dollars in thousands) December 31, 2017 Pass Substandard Doubtful PCI Total Commercial real estate $ 732,175 $ 3,956 $ — $ 9,762 $ 745,893 Construction, land development, land 130,732 136 — 3,944 134,812 1-4 family residential 122,044 2,687 — 1,096 125,827 Farmland 171,017 9,015 — 109 180,141 Commercial 878,957 41,168 — 687 920,812 Factored receivables 370,839 2,325 1,246 — 374,410 Consumer 30,739 392 — — 31,131 Mortgage warehouse 297,830 — — — 297,830 $ 2,734,333 $ 59,679 $ 1,246 $ 15,598 $ 2,810,856 (Dollars in thousands) December 31, 2016 Pass Substandard Doubtful PCI Total Commercial real estate $ 422,423 $ 6,951 $ — $ 12,863 $ 442,237 Construction, land development, land 105,493 362 — 3,957 109,812 1-4 family residential 101,339 1,307 — 2,328 104,974 Farmland 136,474 4,904 — 237 141,615 Commercial 729,634 41,487 — 7,522 778,643 Factored receivables 236,084 1,029 1,085 — 238,198 Consumer 29,688 76 — — 29,764 Mortgage warehouse 182,381 — — — 182,381 $ 1,943,516 $ 56,116 $ 1,085 $ 26,907 $ 2,027,624 Troubled Debt Restructurings The Company had a recorded investment in troubled debt restructurings of $19,137,000 and $18,386,000 as of December 31, 2017 and 2016, respectively. The Company had allocated specific allowances for these loans of $535,000 and $1,911,000 at December 31, 2017 and 2016, respectively, and had not committed to lend additional amounts. The following table presents loans modified as troubled debt restructurings that occurred during the years ended December 31, 2017, 2016, and 2015: Recorded Number of (Dollars in thousands) Investment Loans December 31, 2017 Commercial $ 8,831 8 December 31, 2016 Commercial real estate $ 809 3 Farmland 793 1 Commercial 16,612 27 $ 18,214 31 December 31, 2015 Commercial $ 1,544 4 Troubled debt restructurings during the years ended December 31, 2017, 2016, and 2015 were the result of extending amortization periods. The Company did not grant principal reductions or interest rate concessions on any restructured loans. There were no loans modified as troubled debt restructurings during the year ended December 31, 2017 for which there was a payment default during the year then ended. The Company had one borrower relationship with a recorded investment of $2,011,000 at December 31, 2016, comprised of 14 individual commercial loans that were modified as troubled debt restructurings during the year ended December 31, 2016 for which there were payment defaults during the year then ended. The payment defaults did not result in incremental allowance allocations or charge-offs. There were no loans modified as troubled debt restructurings during the year ended December 31, 2015 for which there was a payment default during the year then ended. Default is determined at 90 or more days past due. Residential Real Estate Loans In Process of Foreclosure At December 31, 2017 Purchased Credit Impaired Loans The Company has loans that were acquired for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The outstanding contractually required principal and interest and the carrying amount of these loans included in the balance sheet amounts of loans receivable at December 31, 2017 and 2016 are as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Contractually required principal and interest: Real estate loans $ 16,360 $ 25,013 Commercial loans 3,501 9,703 Outstanding contractually required principal and interest $ 19,861 $ 34,716 Gross carrying amount included in loans receivable $ 15,598 $ 26,907 The changes in accretable yield during the years ended December 31, 2017, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Accretable yield, beginning balance $ 4,261 $ 2,594 $ 4,977 Additions 371 4,124 — Accretion (3,442 ) (3,092 ) (4,023 ) Reclassification from nonaccretable to accretable yield 2,108 646 1,805 Disposals (505 ) (11 ) (165 ) Accretable yield, ending balance $ 2,793 $ 4,261 $ 2,594 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | NOTE 5 — OTHER REAL ESTATE OWNED Other real estate owned activity was as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Beginning balance $ 6,077 $ 5,177 $ 8,423 Acquired through business acquisition 2,282 2,962 — Loans transferred to OREO 6,585 470 743 Premises transferred to OREO 276 2,215 — Net OREO gains (losses) and valuation adjustments (850 ) (1,427 ) (108 ) Sales of OREO (5,179 ) (3,320 ) (3,881 ) Ending balance $ 9,191 $ 6,077 $ 5,177 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 6 — PREMISES AND EQUIPMENT Premises and equipment at December 31, 2017 and 2016 consisted of the following: December 31, December 31, (Dollars in thousands) 2017 2016 Land $ 10,534 $ 6,844 Buildings 45,841 30,646 Leasehold improvements 4,928 4,667 Furniture, fixtures and equipment 13,015 11,112 74,318 53,269 Accumulated depreciation (11,457 ) (7,809 ) $ 62,861 $ 45,460 Depreciation expense was $4,001,000, $2,817,000 and $2,143,000 for the years ended December 31, 2017, 2016 and 2015, respectively. The Company leases certain properties and equipment under operating leases. Rent expense was $2,261,000, $2,053,000 and $1,985,000 for the years ended December 31, 2017, 2016 and 2015, respectively. Rent commitments at December 31, 2017, before considering renewal options that generally are present, were as follows: (Dollars in thousands) 2018 $ 1,866 2019 1,479 2020 1,465 2021 653 2022 203 Thereafter 303 $ 5,969 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 7 - GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible assets consist of the following: December 31 December 31, (Dollars in thousands) 2017 2016 Goodwill $ 44,126 $ 28,810 December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in thousands) Amount Amortization Amount Amount Amortization Amount Core deposit intangibles $ 29,511 $ (11,335 ) $ 18,176 $ 21,825 $ (8,423 ) $ 13,402 Other intangible assets 1,764 (288 ) 1,476 6,006 (1,687 ) 4,319 $ 31,275 $ (11,623 ) $ 19,652 $ 27,831 $ (10,110 ) $ 17,721 The changes in goodwill and intangible assets by operating segment during the year are as follows: (Dollars in thousands) Asset December 31, 2017 Banking Factoring Management Total Beginning balance $ 36,139 $ 8,871 $ 1,521 $ 46,531 Acquired goodwill 16,340 — — 16,340 Acquired intangibles 9,478 — — 9,478 Amortization of intangibles (5,016 ) (3 ) (182 ) (5,201 ) Divestiture of intangibles — — (1,339 ) (1,339 ) Reclass of goodwill to assets held for sale (1,024 ) — — (1,024 ) Reclass of intangibles to assets held for sale (1,007 ) — — (1,007 ) Ending balance $ 54,910 $ 8,868 $ — $ 63,778 (Dollars in thousands) Asset December 31, 2016 Banking Factoring Management Total Beginning balance $ 17,482 $ 8,875 $ 1,497 $ 27,854 Acquired goodwill 12,842 — — 12,842 Acquired intangibles 8,818 — 799 9,617 Amortization of intangibles (3,003 ) (4 ) (775 ) (3,782 ) Ending balance $ 36,139 $ 8,871 $ 1,521 $ 46,531 (Dollars in thousands) Asset December 31, 2015 Banking Factoring Management Total Beginning balance $ 20,187 $ 8,870 $ — $ 29,057 Acquired goodwill — 8 2,768 2,776 Amortization of intangibles (2,705 ) (3 ) (1,271 ) (3,979 ) Ending balance $ 17,482 $ 8,875 $ 1,497 $ 27,854 No goodwill or intangibles have been assigned to the Corporate operating segment. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. The Company assesses goodwill for impairment at its reporting units that contain goodwill, Banking and Factoring. At the measurement date, these reporting units had positive equity and the Company elected to perform qualitative assessments to determine if it was more likely than not that the fair value of the reporting units exceeded their carrying values, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. After performing an impairment test comparing the carrying value of intangible assets to the fair value of intangible assets, it was determined that the carrying amount of core deposit intangibles related to public funds assigned to the Banking segment exceeded the fair value of these core deposit intangibles, resulting in an impairment charge of $1,276,000 for the year ended December 31, 2017. The impairment charge was recorded as amortization expense in the consolidated statements of income. The impairment of the core deposit intangibles was a result of the decline in public funds deposit balances caused by the Company’s intentional decision to reduce its reliance on the use of public funds. There were no impairment charges for the years ended December 31, 2016 and 2015. Generally, a cquired intangible assets are being amortized utilizing an accelerated method over their estimated useful lives, which range from 8 to 10 years. The future amortization schedule for the Company’s intangible assets is as follows: (Dollars in thousands) 2018 $ 4,296 2019 3,735 2020 3,178 2021 2,617 2022 2,059 Thereafter 3,767 $ 19,652 |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable Interest Entities | NOTE 8 — VARIABLE INTEREST ENTITIES Collateralized Loan Obligation Funds - Closed The Company, through its subsidiary TCA, acted as the asset manager or provided certain middle and back office staffing and services to the asset manager of various CLO funds. TCA earned asset management fees in accordance with the terms of its asset management or staffing and services agreements associated with the CLO funds. The Company holds investments in the subordinated notes of the following closed CLO funds: Offering Offering (Dollars in thousands) Date Amount Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 The carrying amounts of the Company’s investments in the subordinated notes of the CLO funds, which represent the Company’s maximum exposure to loss as a result of its involvement with the CLO funds, totaled $8,557,000 and $3,380,000 at December 31, 2017 and 2016, respectively, and are classified as held to maturity securities within the Company’s consolidated balance sheets. The Company performed a consolidation analysis to confirm whether the Company was required to consolidate the assets, liabilities, equity or operations of the closed CLO funds in its financial statements. The Company concluded that the closed CLO funds are variable interest entities and that the Company holds variable interests in the entities in the form of its investments in the subordinated notes of the entities. However, the Company also concluded that the Company does not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company is not the primary beneficiary and therefore is not required to consolidate the assets, liabilities, equity or operations of the CLO funds in the Company’s financial statements. Collateralized Loan Obligation Funds – Warehouse Phase From time to time, the Company may invest in the subordinated debt of entities formed to be the issuers of CLO offerings during their warehouse phases. The Company’s investments in these CLO funds are repaid when the CLO funds’ warehouse phases are closed and the CLO offerings are issued. The Company’s maximum exposure to loss as a result of its involvement with these CLO funds is limited to the carrying amount of its investments in the subordinated debt of the CLO funds. At December 31, 2017, the Company did not hold any investments in the subordinated debt of CLO funds during their warehouse phase. At December 31, 2016, the Company held an investment of $21,217,000 in the subordinated debt of a CLO fund during its warehouse phase, which was classified as other assets within the Company’s consolidated balance sheets. Income from the Company’s investments in CLO warehouse entities totaled $2,226,000, $3,184,000, and $1,151,000 during the years ended December 31, 2017, 2016, and 2015, respectively, and is included in other noninterest income within the Company’s consolidated statements of income. The Company performed a consolidation analysis of CLO funds during their warehouse phases and concluded that the CLO funds were variable interest entities and that the Company held a variable interest in the entities that could potentially be significant to the entities in the form of its investments in the subordinated notes of the entities. However, the Company also concluded that the Company did not have the power to direct the activities that most significantly impact the entities’ economic performance. As a result, the Company was not the primary beneficiary and therefore was not required to consolidate the assets, liabilities, equity, or operations of the entities in the Company’s financial statements . |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposits | NOTE 9 - Deposits Deposits at December 31, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) December 31, 2017 December 31, 2016 Noninterest bearing demand $ 564,225 $ 363,351 Interest bearing demand 403,244 340,362 Individual retirement accounts 108,505 103,022 Money market 283,969 213,253 Savings 235,296 171,354 Certificates of deposit 837,384 756,351 Brokered deposits 188,725 68,092 Total deposits $ 2,621,348 $ 2,015,785 At December 31, 2017, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered deposits, are as follows: (Dollars in thousands) December 31, 2017 Within one year $ 851,311 After one but within two years 185,402 After two but within three years 45,789 After three but within four years 32,054 After four but within five years 20,058 Total $ 1,134,614 Time deposits, including individual retirement accounts, certificates of deposit, and brokered deposits, with individual balances of $250,000 and greater totaled $158,197,000 and $149,258,000 at December 31, 2017 and 2016, respectively. |
Borrowings and Borrowing Capaci
Borrowings and Borrowing Capacity | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings And Borrowing Capacity | NOTE 10 — BORROWINGS AND BORROWING CAPACITY Customer Repurchase Agreements Customer repurchase agreements are overnight customer sweep arrangements. Information concerning customer repurchase agreements is summarized as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Amount outstanding at end of the year $ 11,488 $ 10,490 Weighted average interest rate at end of the year 0.02 % 0.02 % Average daily balance during the year $ 12,906 $ 11,984 Weighted average interest rate during the year 0.02 % 0.02 % Maximum month-end balance during the year $ 21,041 $ 15,329 Customer repurchase agreements are secured by pledged securities with carrying amounts as follows: December 31, December 31, (Dollars in thousands) 2017 2016 U.S. Government agency obligations $ 13,460 $ 10,488 Mortgage-backed securities, residential — 2,998 $ 13,460 $ 13,486 FHLB Advances FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows: Fixed Rate Variable Rate (Dollars in thousands) Balance Outstanding Weighted Average Interest Rate Balance Outstanding Weighted Average Interest Rate 2018 $ 290,000 1.40 % $ 45,000 1.33 % 2027 — — 30,000 1.39 % $ 290,000 1.40 % $ 75,000 1.35 % Information concerning FHLB advances is summarized as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Amount outstanding at end of the year $ 365,000 $ 230,000 Weighted average interest rate at end of the year 1.39 % 0.58 % Average daily balance during the year $ 300,451 $ 174,784 Weighted average interest rate during the year 1.05 % 0.41 % Maximum month-end balance during the year $ 385,000 $ 291,000 The Company’s unused borrowing capacity with the FHLB is as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Borrowing capacity $ 596,230 $ 497,147 Borrowings outstanding 365,000 230,000 Unused borrowing capacity $ 231,230 $ 267,147 Federal Funds Purchased The Company had no federal funds purchased at December 31, 2017 or 2016. However, as of December 31, 2017 the Company had unsecured federal funds lines of credit with seven unaffiliated banks totaling $137,500,000. Subordinated Notes On September 30, 2016, the Company issued $50,000,000 of Fixed-to-Floating Rate Subordinated Notes due 2026 (the “Notes”). The Notes initially bear interest at 6.50% per annum, payable semi-annually in arrears, to, but excluding, September 30, 2021, and, thereafter and to, but excluding, the maturity date or earlier redemption, interest shall be payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 5.345%. The Company may, at its option, beginning on September 30, 2021 and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part, at a redemption price equal to the outstanding principal amount of the Notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. The Notes are subordinated in right of payment to the Company’s existing and future senior indebtedness and are structurally subordinated to the Company’s subsidiaries’ existing and future indebtedness and other obligations. The Notes are included on the consolidated balance sheets as liabilities at their carrying values of $48,828,000 and $48,734,000 at December 31, 2017 and 2016, respectively Issuance costs related to the Notes totaled $1,324,000, including an underwriting discount of 1.5%, or $750,000, and have been netted against the subordinated notes liability on the balance sheet. The underwriting discount and other debt issuance costs are being amortized using the effective interest method through maturity and recognized as a component of interest expense. Junior Subordinated Debentures The following provides a summary of the Company’s junior subordinated debentures: Variable Interest Rate At (Dollars in thousands) Face Value Carrying Value Maturity Date Interest Rate December 31, 2017 National Bancshares Capital Trust II $ 15,464 $ 12,861 September 2033 LIBOR + 3.00% 4.59% National Bancshares Capital Trust III 17,526 12,389 July 2036 LIBOR + 1.64% 3.00% ColoEast Capital Trust I 5,155 3,417 September 2035 LIBOR + 1.60% 3.29% ColoEast Capital Trust II 6,700 4,485 March 2037 LIBOR + 1.79% 3.48% Valley Bancorp Statutory Trust I 3,093 2,844 September 2032 LIBOR + 3.40% 5.07% Valley Bancorp Statutory Trust II 3,093 2,627 July 2034 LIBOR + 2.75% 4.35% $ 51,031 $ 38,623 These debentures are unsecured obligations due to trusts that are unconsolidated subsidiaries. The debentures were issued in conjunction with the trusts’ issuances of obligated capital securities. The trusts used the proceeds from the issuances of their capital securities to buy floating rate junior subordinated deferrable interest debentures that bear the same interest rate and terms as the capital securities. These debentures are the trusts’ only assets and the interest payments from the debentures finance the distributions paid on the capital securities. These debentures rank junior and are subordinate in the right of payment to all other debt of the Company. As part of the purchase accounting adjustments made with the National Bancshares, Inc. acquisition on October 15, 2013, the ColoEast acquisition on August 1, 2016, and the Valley acquisition on December 9, 2017, the Company adjusted the carrying value of the junior subordinated debentures to fair value as of the respective acquisition dates. The discount on the debentures will continue to be amortized through maturity and recognized as a component of interest expense. The debentures may be called by the Company at par plus any accrued but unpaid interest. Interest on the debentures is calculated quarterly. The distribution rate payable on the capital securities is cumulative and payable quarterly in arrears. The Company has the right to defer payments on interest on the debentures at any time by extending the interest payment period for a period not exceeding 20 consecutive quarters with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the debentures. The debentures are included on the consolidated balance sheet as liabilities; however, for regulatory purposes, the carrying value of these obligations are eligible for inclusion in Tier I regulatory capital, subject to certain limitations. All of the carrying value of $38,623,000 and $32,740,000 was allowed in the calculation of Tier I regulatory capital as of December 31, 2017 and 2016, respectively |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 11 — EMPLOYEE BENEFIT PLANS 401(k) Plan The Company sponsors a 401(k) benefit plan that allows employee contributions up to the maximum tax-deferred limitations established by the Internal Revenue Code, which are matched by the Company equal to 100% of the first 4% of the compensation contributed. Expense related to the 401(k) matching contributions for the years ended December 31, 2017, 2016 and 2015 was $1,468,000, $1,179,000 and $1,100,000, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 12 — INCOME TAXES Income tax expense for the years ended December 31, 2017, 2016, and 2015 consisted of the following: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Income tax expense: Current $ 14,714 $ 10,922 $ 8,701 Deferred 10,174 1,941 666 Change in valuation allowance for deferred tax asset (10 ) (54 ) (946 ) Income tax expense $ 24,878 $ 12,809 $ 8,421 Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Tax provision computed at federal statutory rate $ 21,384 $ 11,728 $ 13,144 Effect of: State taxes, net 1,112 852 1,444 Tax reform impact (1) 2,984 — — Change in effective tax rate — — (142 ) Bargain purchase gain — — (5,291 ) Transaction costs — 325 — Bank-owned life insurance (246 ) (201 ) (158 ) Tax exempt interest (545 ) (129 ) (119 ) Change in valuation allowance for deferred tax asset (10 ) (54 ) (946 ) Other 199 288 489 Income tax expense $ 24,878 $ 12,809 $ 8,421 (1) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $2,984,000 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. 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 as of December 31, 2017 and 2016 are as follows: (Dollars in thousands) 2017 2016 Deferred tax assets Federal net operating loss carryforwards $ 7,180 $ 13,669 State net operating loss carryforwards 1,338 1,493 Acquired loan basis 1,159 4,888 Other real estate owned 394 2,788 AMT credit carryforward 2,855 2,855 Allowance for loan losses 4,825 4,853 Unrealized loss on securities available for sale 176 163 Other 1,218 2,562 Total deferred tax assets 19,145 33,271 Deferred tax liabilities Goodwill and intangible assets 2,233 4,558 Fair value adjustment on junior subordinated debentures 2,792 4,735 Premises and equipment 2,273 3,310 Installment gain on sale of subsidiary 2,230 — Other 396 1,606 Total deferred tax liabilities 9,924 14,209 Net deferred tax asset before valuation allowance 9,221 19,062 Valuation allowance (262 ) (237 ) Net deferred tax asset $ 8,959 $ 18,825 The Company's federal and state net operating loss carryforwards as of December 31, 2017 2017 The Company's federal and state net operating loss carryforwards as of December 31, 2016 2016. An Internal Revenue Code Section 382 (“Section 382”) ownership change was triggered as part of previous acquisitions. A significant portion of the deferred tax asset relating to the Company's net operating loss and Alternative Minimum Tax credit carryforwards are subject to the annual limitation rules under Section 382 . The utilization of tax carryforward attributes acquired from the EJ Financial Corp. (2010) acquisition is subject to an annual limitation of $341,000. The utilization of tax carryforward attributes acquired from the National Bancshares, Inc.(2013) acquisition is subject to an annual limitation of $2,040,000. Any remaining tax attribute carryforwards generated prior to the Section 382 ownership change in 2013 are subject to an annual limitation of $3,696,000. The utilization of deferred tax assets related to the net operating loss and tax credit carryforwards acquired from the 2016 ColoEast stock acquisition are subject to an annual limitation of $1,906,000 under Section 382 rules. At December 31, 2017 2016 The Company is subject to U.S. federal income tax as well as income tax in various states. The Company is generally not subject to examination by taxing authorities for years prior to 2014. |
Legal Contingencies
Legal Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Legal Contingencies | NOTE 13 - Legal Contingencies Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements. The Company does not anticipate any material losses as a result of commitments and contingent liabilities. |
Off-Balance Sheet Loan Commitme
Off-Balance Sheet Loan Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Loan Commitments | NOTE 14 - OFF-BALANCE SHEET LOAN COMMITMENTS From time to time, 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. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows: December 31, 2017 December 31, 2016 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Commitments to make loans $ — $ — $ 7,345 $ 7,580 Unused lines of credit $ 133,634 $ 242,236 $ 109,611 $ 145,475 Standby letters of credit $ 1,998 $ 8,169 $ 2,547 $ 4,706 Mortgage warehouse commitments $ 9,411 $ 230,221 $ 14,387 $ 219,560 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 are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Mortgage warehouse commitments are unconditionally cancellable and represent the unused capacity on mortgage warehouse 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. The Company funds an allowance for loan and lease losses on off-balance sheet lending-related commitments through a charge to other noninterest expense on the Company’s consolidated statements of income. At December 31, 2017 and 2016, the allowance for loan and lease losses on off-balance sheet lending-related commitments totaled $501,000 and $315,000, respectively, and was included in other liabilities on the Company’s consolidated balance sheets. In addition to the commitments above, the Company had overdraft protection available in the amounts of $2,397,000 and $1,882,000 at December 31, 2017 and 2016, respectively. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | NOTE 15 - Fair Value Disclosures Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Assets measured at fair value on a recurring basis are summarized in the table below. There were no liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2017 Level 1 Level 2 Level 3 Fair Value Securities available for sale U.S. Government agency obligations $ — $ 109,890 $ — $ 109,890 U.S. Treasury notes — 1,934 — 1,934 Mortgage-backed securities, residential — 33,663 — 33,663 Asset backed securities — 11,845 — 11,845 State and municipal — 74,391 — 74,391 Corporate bonds — 15,320 — 15,320 SBA pooled securities — 3,560 — 3,560 Mutual fund 5,006 — — 5,006 $ 5,006 $ 250,603 $ — $ 255,609 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2016 Level 1 Level 2 Level 3 Fair Value Securities available for sale U.S. Government agency obligations $ — $ 180,942 $ — $ 180,942 Mortgage-backed securities, residential — 24,990 — 24,990 Asset backed securities — 12,902 — 12,902 State and municipal — 26,637 — 26,637 Corporate bonds — 27,390 — 27,390 SBA pooled securities — 157 — 157 Mutual fund 2,011 — — 2,011 $ 2,011 $ 273,018 $ — $ 275,029 The Company used the following methods and assumptions to estimate fair value of financial instruments that are measured at fair value on a recurring basis: Securities available for sale The fair values of equity securities available for sale are determined based on quoted market prices in active markets and are classified in Level 1 of the valuation hierarchy. There were no transfers between levels for the years ended December 31, 2017 and 2016. Assets measured at fair value on a non-recurring basis are summarized in the table below. There were no liabilities measured at fair value on a non-recurring basis at December 31, 2017 and 2016. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2017 Level 1 Level 2 Level 3 Fair Value Impaired loans Commercial real estate $ — $ — $ 42 $ 42 1-4 family residential properties — — 85 85 Commercial — — 7,785 7,785 Factored receivables — — 3,777 3,777 Consumer — — 191 191 Other real estate owned (1) Commercial — — 138 138 Construction, land development, land — — 202 202 $ — $ — $ 12,220 $ 12,220 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2016 Level 1 Level 2 Level 3 Fair Value Impaired loans Commercial real estate $ — $ — $ 417 $ 417 Construction, land development, land — — 252 252 1-4 family residential properties — — 7 7 Commercial — — 12,921 12,921 Factored receivables — — 1,630 1,630 PCI — — 170 170 Other real estate owned (1) Commercial — — 698 698 1-4 family residential properties — — 485 485 Construction, land development, land — — 467 467 $ — $ — $ 17,047 $ 17,047 (1) As of December 31, 2017 and 2016, the only Level 3 assets with material unobservable inputs are associated with impaired loans and OREO. Impaired Loans with Specific Allocation of ALLL A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due pursuant to the contractual terms of the loan agreement. Impairment is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the impaired 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. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value. For non-real estate loans, fair value of the impaired loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. OREO OREO is primarily comprised of real estate acquired in partial or full satisfaction of loans. OREO is recorded at its estimated fair value less estimated selling and closing costs at the date of transfer, with any excess of the related loan balance over the fair value less expected selling costs charged to the ALLL. Subsequent changes in fair value are reported as adjustments to the carrying amount and are recorded against earnings. The Company outsources the valuation of OREO with material balances to third party appraisers. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 8% of the appraised value . The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at December 31, 2017 and 2016 were as follows: December 31, 2017 Carrying Fair Value Measurements Using Total (Dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 134,129 $ 134,129 $ — $ — $ 134,129 Securities - held to maturity 8,557 — — 7,527 7,527 Loans not previously presented, net 2,780,228 — — 2,800,362 2,800,362 Loans included in assets held for sale, net 68,668 — — 69,268 69,268 FHLB stock 16,006 N/A N/A N/A N/A Accrued interest receivable 15,517 15,517 — — 15,517 Financial liabilities: Deposits 2,621,348 — 2,616,034 — 2,616,034 Customer repurchase agreements 11,488 — 11,488 — 11,488 Federal Home Loan Bank advances 365,000 — 365,000 — 365,000 Subordinated notes 48,828 — 52,310 — 52,310 Junior subordinated debentures 38,623 — 41,563 — 41,563 Accrued interest payable 3,323 3,323 — — 3,323 December 31, 2016 Carrying Fair Value Measurements Using Total (Dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 114,514 $ 114,514 $ — $ — $ 114,514 Securities - held to maturity 29,352 — 27,498 3,323 30,821 Loans not previously presented, net 1,996,822 — — 2,002,487 2,002,487 FHLB stock 8,430 N/A N/A N/A N/A Accrued interest receivable 12,663 12,663 — — 12,663 Financial liabilities: Deposits 2,015,785 — 2,014,922 — 2,014,922 Customer repurchase agreements 10,490 — 10,490 — 10,490 Federal Home Loan Bank advances 230,000 — 230,000 — 230,000 Subordinated notes 48,734 — 50,920 — 50,920 Junior subordinated debentures 32,740 — 32,905 — 32,905 Accrued interest payable 2,682 2,682 — — 2,682 For those financial instruments not previously described, the following methods and assumptions were used by the Company in estimating the fair values of financial instruments as disclosed herein: Cash and Cash Equivalents For financial instruments with a shorter term or with no stated maturity, prevailing market rates, and limited credit risk, the carrying amounts approximate fair value and are considered a Level 1 classification. Securities held to maturity The fair values of the Company’s investments in the subordinated notes of Trinitas IV, Trinitas V, and Trinitas VI classified as securities held to maturity are determined based on the securities’ discounted projected future cash flows (net present value), resulting in a Level 3 classification. The fair values of the Company’s other securities held to maturity at December 31, 2016 were determined by third party 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, resulting in a Level 2 classification. There were no such securities held at December 31, 2017. Loans Loans include loans held for investment and loans included in assets held for sale. Loans exclude impaired loans previously described above. For variable rate loans that reprice frequently and have no significant changes in credit risk, excluding previously presented impaired loans measured at fair value on a non-recurring basis, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loans are considered a Level 3 classification. FHLB stock FHLB stock is restricted to member banks and there are restrictions placed on its transferability. As a result, the fair value of FHLB stock was not practicable to determine. Deposits The fair values disclosed for demand deposits and non-maturity transaction accounts are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts) and are considered a Level 2 classification. Fair values for fixed rate time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Customer repurchase agreements The carrying amount of customer repurchase agreements approximates fair value due to their short term nature. The customer repurchase agreement fair value is considered a Level 2 classification. Federal Home Loan Bank advances The Company’s FHLB advances have variable rates or a maturity of less than three months and therefore fair value materially approximates carrying value and is considered a Level 2 classification. Subordinated notes The subordinated notes were valued based on quoted market prices, but due to limited trading activity for the subordinated notes in these markets, the subordinated notes are considered a Level 2 classification. Junior subordinated debentures The junior subordinated debentures were valued by discounting future cash flows using current interest rates for similar financial instruments, resulting in a Level 2 classification. Accrued Interest Receivable and Accrued Interest Payable The carrying amounts of accrued interest receivable and accrued interest payable approximate their fair values given the short term nature of the receivables and are considered a Level 1 classification. |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | NOTE 16 — RELATED-PARTY TRANSACTIONS Loans to related parties and their affiliates were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 Beginning balance $ 29,285 $ 35,765 New loans and advances 14,440 88,711 Effect of changes in composition of related parties (15,004 ) (6,018 ) Repayments (2,109 ) (89,173 ) Ending balance $ 26,612 $ 29,285 Advances and repayments of related party loans for the year ended December 31, 2016 included activity on revolving credit and asset-based lending arrangements. Related party deposits at December 31, 2017 and 2016 were $9,360,000 and $14,634,000, respectively. Trinitas Capital Management, LLC Trinitas Capital Management, LLC (“Trinitas”) is an independent CLO asset manager formed in 2015. Prior to the sale of TCA on March 31, 2017, certain of the Company’s officers and other personnel served as officers or managers of Trinitas and certain members of the Company’s board of directors also hold minority membership interests in Trinitas. The Company does not hold any membership interests in Trinitas. As described in Note 8 – Variable Interest Entities, the Company, through its subsidiary TCA, provided certain middle and back office staffing and services to Trinitas as the asset manager of various CLO funds issued by Trinitas. For the years ended December 31, 2017 and 2016, TCA earned fees from Trinitas totaling $521,000 and $907,000, respectively. No asset management fees were earned by TCA from Trinitas for the year ended December 31, 2015. As a result of the TCA sale, as of March 31, 2017 the Company no longer acts as a staffing and services provider for Trinitas. The Company holds investments in the subordinated notes of Trinitas IV, Trinitas V, and Trinitas VI, CLOs managed by Trinitas, with a carrying amount of $8,557,000 $3,380,000 at December 31, 2017 and 2016, respectively Triumph Consolidated Cos., LLC As described in Note 18 – Equity and Noncontrolling Interests, Triumph Consolidated Cos., LLC ertain of the Company’s directors and executive officers were directors, officers, investors, or other interest holders in Triumph Consolidated Cos., LLC. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Matters | NOTE 17 — REGULATORY MATTERS The Company (on a consolidated basis) and TBK Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s or TBK Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and TBK Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and TBK Bank to maintain minimum amounts and ratios (set forth in the table below) of total, common equity Tier 1, and Tier 1 capital to risk weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2017, the Company and TBK Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2017, TBK Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” TBK Bank must maintain minimum total risk based, common equity Tier 1 risk based, Tier 1 risk based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since December 31, 2017 that management believes have changed TBK Bank’s category. The actual capital amounts and ratios for the Company and TBK Bank as of December 31, 2017 and 2016 are presented in the following table: To Be Well Capitalized Under Minimum for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 Total capital (to risk weighted assets) Triumph Bancorp, Inc. $ 436,036 13.2% $ 264,026 8.0% N/A N/A TBK Bank, SSB $ 361,068 11.4% $ 254,139 8.0% $ 317,674 10.0% Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 367,958 11.1% $ 198,019 6.0% N/A N/A TBK Bank, SSB $ 341,910 10.8% $ 190,603 6.0% $ 254,137 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 320,265 9.7% $ 148,514 4.5% N/A N/A TBK Bank, SSB $ 341,910 10.8% $ 142,952 4.5% $ 206,486 6.5% Tier 1 capital (to average assets) Triumph Bancorp, Inc. $ 367,958 11.8% $ 124,754 4.0% N/A N/A TBK Bank, SSB $ 341,910 11.1% $ 123,088 4.0% $ 153,860 5.0% As of December 31, 2016 Total capital (to risk weighted assets) Triumph Bancorp, Inc. $ 342,059 14.6% $ 187,449 8.0% N/A N/A TBK Bank, SSB $ 293,313 12.9% $ 181,640 8.0% $ 227,050 10.0% Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 277,605 11.8% $ 140,587 6.0% N/A N/A TBK Bank, SSB $ 277,593 12.2% $ 136,230 6.0% $ 181,640 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 238,439 10.2% $ 105,440 4.5% N/A N/A TBK Bank, SSB $ 277,593 12.2% $ 102,173 4.5% $ 147,583 6.5% Tier 1 capital (to average assets) Triumph Bancorp, Inc. $ 277,605 10.9% $ 102,303 4.0% N/A N/A TBK Bank, SSB $ 277,593 11.0% $ 100,802 4.0% $ 126,002 5.0% Dividends paid by TBK Bank are limited to, without prior regulatory approval, current year earnings and earnings less dividends paid during the preceding two years. Beginning in January 2016, the implementation of the capital conservation buffer set forth by the Basel III regulatory capital framework was effective for the Company starting at 0.625% of risk weighted assets above the minimum risk based capital ratio requirements and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. The capital conservation buffer was 1.25% and 0.625% at December 31, 2017 and 2016, respectively. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company’s ability to make capital distributions, including dividend payments and stock repurchases, and to pay discretionary bonuses to executive officers. At December 31, 2017, the Company’s and TBK Bank’s risk based capital exceeded the required capital conservation buffer. |
Equity and Noncontrolling Inter
Equity and Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity and Noncontrolling Interests | NOTE 18 - EQUITY AND NONCONTROLLING INTERESTS The following summarizes the Company’s capital structure: Common Stock Common Stock December 31, (Dollars in thousands, except per share amounts) 2017 2016 Shares authorized 50,000,000 50,000,000 Shares issued 20,912,396 18,154,365 Treasury shares 91,951 76,118 Shares outstanding 20,820,445 18,078,247 Par value per share $ 0.01 $ 0.01 Preferred Stock Preferred Stock Preferred Stock Series A Series B December 31, December 31, (Dollars in thousands, except per share amounts) 2017 2016 2017 2016 Shares authorized 50,000 50,000 115,000 115,000 Shares issued 45,500 45,500 51,076 51,956 Shares outstanding 45,500 45,500 51,076 51,956 Par value per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 Liquidation preference per share $ 100 $ 100 $ 100 $ 100 Liquidation preference amount $ 4,550 $ 4,550 $ 5,108 $ 5,196 Common Stock Offering On August 1, 2017, the Company completed an underwritten common stock offering issuing 2,530,000 shares of the Company’s common stock, including 330,000 shares sold pursuant to the underwriters’ full exercise of their option to purchase additional shares, at $27.50 per share for total gross proceeds of $69,575,000. Net proceeds after underwriting discounts and offering expenses were $65,509,000. Warrants During 2012, the Company issued a warrant to Triumph Consolidated Cos., LLC to purchase 259,067 shares of the Company’s common stock. The warrant had an exercise price of $11.58 per share, was immediately exercisable, and had an expiration date of December 12, 2022. TCC exercised the warrant in full on August 2, 2017 and was issued 153,134 shares of common stock, net of shares withheld by the Company to cover the exercise price. The shares of common stock were issued in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended. Preferred Stock Series A The following summarizes the terms of the Company’s Series A Non-Cumulative Non-Voting Preferred Stock (the “Preferred Stock Series A”) as of December 31, 2017 and 2016. Series A holders are entitled to quarterly cash dividends accruing at the rate per annum of Prime + 2%, with an 8.00% floor, applied to the liquidation preference value of the stock. Any dividends not paid shall not accumulate but will be waived and not payable by the Company. Payments of dividends are subject to declaration by the board of the Company. Subject to regulatory approval, Series A holders have the right to receive a special, one-time dividend with respect to their respective shares within 30 days after the occurrence of any of the following events: (i) the sale of all of the limited liability company interests of TBK Bank (as successor in interest to TCF) in TBC, (ii) a merger of TBC resulting in TBK Bank (as successor in interest to TCF) no longer owning any limited liability company interests in TBC or (iii) the sale of all or substantially all of the assets of TBC, subject to certain organizational restructuring exceptions. The Company paid all dividends when due on these shares during the year ended December 31, 2017. The Preferred Stock Series A is not redeemable by the holder, ranks pari passu with the Company’s Preferred Stock Series B (as described below), and is senior to the Company’s common stock. The Preferred Stock Series A are redeemable at liquidation value by the Company subject to regulatory approval at any time on or after October 15, 2018. The Preferred Stock Series A shares are convertible to common stock at the option of the holder any time at a preferred to common stock conversion ratio of 6.94008. No Preferred Stock Series A shares were converted to common stock during the years ended December 31, 2017, 2016, and 2015. Preferred Stock Series B The following summarizes the terms of the Company’s Series B Non-Cumulative Non-Voting Preferred Stock (the “Preferred Stock Series B”) as of December 31, 2017 and 2016. Series B holders are entitled to quarterly cash dividends accruing at the rate per annum of 8.00% applied to the liquidation value of the stock. Any dividends not paid shall not accumulate but will be waived and not payable by the Company. Payments of dividends are subject to declaration by the board of the Company. The Company paid all dividends when due on these shares during the year ended December 31, 2017. The Preferred Stock Series B is not redeemable by the holder, ranks pari passu with the Company’s Preferred Stock Series A, and is senior to the Company’s common stock. The Preferred Stock Series B are redeemable at liquidation value by the Company subject to regulatory approval at any time on or after October 15, 2018. The Preferred Stock Series B shares are convertible to common stock at the option of the holder any time at a preferred to common stock conversion ratio of 6.94008. During the year ended December 31, 2017, 880 shares of Preferred Stock Series B with a liquidation value of $88,000 were converted to 6,106 shares of common stock. No Preferred Stock Series B shares were converted to common stock during the years ended December 31, 2016 and 2015. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | NOTE 19 — STOCK BASED COMPENSATION Stock based compensation expense that has been charged against income was $1,801,000, $2,367,000 and $3,077,000 for the years ended December 31, 2017, 2016 and 2015, respectively. 2014 Omnibus Incentive Plan The Company’s 2014 Omnibus Incentive Plan (“Omnibus Incentive Plan”) provides for the grant of nonqualified and incentive stock options, stock appreciation rights, restricted stock awards, restricted stock units, and other awards that may be settled in, or based upon the value of, the Company’s common stock. The aggregate number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,200,000 shares. Restricted Stock Awards A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2017 were as follows: Weighted Average Grant Date Nonvested RSAs Shares Fair Value Nonvested at January 1, 2017 126,644 $ 14.92 Granted 45,732 25.80 Vested (67,964 ) 16.50 Forfeited (1,636 ) 16.61 Nonvested at December 31, 2017 102,776 $ 18.68 RSAs granted to employees under the Omnibus Incentive Plan generally vest over three to four years, but vesting periods may vary. Nonvested restricted stock awards are included in the Company’s common stock outstanding. Compensation expense for RSAs granted under the Omnibus Incentive Plan will be recognized over the vesting period of the awards based on the fair value of the stock at the issue date. As of December 31, 2017, there was $798,000 of total unrecognized compensation cost related to nonvested RSAs granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining weighted average period of 2.84 years. Stock Options A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2017 were as follows: Weighted Average Remaining Aggregate Weighted Average Contractual Term Intrinsic Value Stock Options Shares Exercise Price (In Years) (In Thousands) Outstanding at January 1, 2017 163,661 $ 15.87 Granted 58,729 25.80 Exercised (34,977 ) 15.87 Forfeited or expired (2,085 ) 19.69 Outstanding at December 31, 2017 185,328 $ 18.97 $ 8.57 $ 2,321 Fully vested shares and shares expected to vest at December 31, 2017 185,328 $ 18.97 8.57 $ 2,321 Shares exercisable at December 31, 2017 31,742 $ 15.87 $ 8.25 $ 496 Year Ended December 31, (Dollars in thousands, except per share amounts) 2017 2016 Aggregate intrinsic value of options exercised $ 251 $ — Cash received from option exercises $ 283 $ — Tax benefit realized from option exercises $ 88 $ — Weighted average fair value of options granted $ 8.71 $ 5.85 Stock options awarded to employees under the Omnibus Incentive Plan are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant, vest over four years, and have ten year contractual terms. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. Expected volatilities of options granted during the year ended December 31, 2017 were determined based on a blend of the Company’s historical volatility and historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. Expected volatilities of options granted during the year ended December 31, 2016 were determined based on historical volatilities of a peer group of companies with a similar size, industry, stage of life cycle, and capital structure. The expected term of the options granted was determined based on the SEC simplified method, which calculates the expected term as the mid-point between the weighted average time to vesting and the contractual term. The risk-free interest rate for the expected term of the options was derived from the Treasury constant maturity yield curve on the valuation date. The fair value of the stock options granted was determined using the following weighted average assumptions: 2017 2016 Risk-free interest rate 2.11 % 1.49 % Expected term 6.25 Years 6.25 Years Expected stock price volatility 29.70 % 34.96 % Dividend yield — — As of December 31, 2017, there was $512,000 of unrecognized compensation cost related to nonvested stock options granted under the Omnibus Incentive Plan. The cost is expected to be recognized over a remaining weighted average period of 2.85 years. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | NOTE 20 — PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION The following tables present parent company only condensed financial information. Condensed Parent Company Only Balance Sheets: December 31, December 31, (Dollars in thousands) 2017 2016 ASSETS Cash and cash equivalents $ 47,826 $ 10,222 Securities - held to maturity 8,557 3,380 Loans 11,046 984 Investment in bank subsidiary 407,050 320,629 Investment in non-bank subsidiaries 12,650 15,634 Other assets 4,880 29,149 Total assets $ 492,009 $ 379,998 LIABILITIES AND EQUITY Subordinated notes $ 48,828 $ 48,734 Junior subordinated debentures 38,623 32,740 Intercompany payables 10,169 8,500 Accrued expenses and other liabilities 2,691 1,351 Total liabilities 100,311 91,325 Stockholders' equity (1) 391,698 288,673 Total liabilities and equity $ 492,009 $ 379,998 Condensed Parent Company Only Statements of Income: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Interest income $ 1,415 $ 793 $ 718 Interest expense (5,300 ) (2,262 ) (291 ) Provision for loan losses (91 ) — — Gain on sale of subsidiary 20,860 — — Other income 1,572 2,991 1,040 Loss on intercompany sale of loans (1) — (794 ) — Salaries and employee benefits (5,686 ) (581 ) (2,781 ) Other expense (3,138 ) (1,940 ) (3,099 ) Income (loss) before income tax and undistributed subsidiary income 9,632 (1,793 ) (4,413 ) Income tax (expense) benefit (3,087 ) (487 ) 700 Equity in undistributed subsidiary income 30,347 22,308 32,846 Net income 36,892 20,028 29,133 Dividends on preferred stock (774 ) (887 ) (780 ) Net income available to common stockholders $ 36,118 $ 19,141 $ 28,353 Comprehensive income attributable to Parent $ 35,900 $ 20,147 $ 28,459 Condensed Parent Company Only Statements of Cash Flows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 36,892 $ 20,028 $ 29,133 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed subsidiary income (30,347 ) (22,308 ) (32,846 ) Net accretion of securities (800 ) (174 ) — Amortization of junior subordinated debentures 413 325 67 Amortization of subordinated notes issuance costs 94 23 — Loss on intercompany sale of loans (1) — 794 — Loss on sale of loans — 80 — Income from CLO warehouse investments (2,226 ) (3,184 ) (1,151 ) Change in other assets 6,689 3,293 980 Change in accrued expenses and other liabilities 2,950 (5,279 ) 10,316 Net cash provided by (used in) operating activities 13,665 (6,402 ) 6,499 Cash flows from investing activities: Investment in subsidiaries (6,199 ) 14,295 325 Purchases of securities held to maturity (5,092 ) (3,342 ) — Proceeds from maturities, calls, and pay downs of securities held to maturity 715 136 — Purchases of loans (shared national credits) — — (18,601 ) Proceeds from sale of loans — 16,058 — Net change in loans (10,062 ) 539 146 Net cash paid for CLO warehouse investments (10,000 ) (25,000 ) (20,500 ) Net proceeds from CLO warehouse investments 30,000 25,500 2,450 Cash used in acquisition of subsidiaries, net (40,075 ) (69,946 ) — Net cash provided by (used in) investing activities (40,713 ) (41,760 ) (36,180 ) Cash flows from financing activities: Proceeds from issuance of subordinated notes, net — 48,676 — Issuance of common stock, net of expenses 65,509 — — Dividends on preferred stock (774 ) (887 ) (780 ) Redemption of TARP preferred stock — (10,500 ) — Purchase of Treasury Stock (366 ) (654 ) (343 ) Stock option exercises 283 — — Net cash provided by (used in) financing activities 64,652 36,635 (1,123 ) Net increase (decrease) in cash and cash equivalents 37,604 (11,527 ) (30,804 ) Cash and cash equivalents at beginning of period 10,222 21,749 52,553 Cash and cash equivalents at end of period $ 47,826 $ 10,222 $ 21,749 (1) During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016: Year Ended December 31, (Dollars in thousands) 2016 Parent company stockholders' equity $ 288,673 Parent company loss on intercompany sale of loans 794 TBK Bank discount accretion (122 ) Consolidated stockholders' equity $ 289,345 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 21 – EARNINGS PER SHARE The factors used in the earnings per share computation follow: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Basic Net income to common stockholders $ 35,446 $ 19,813 $ 28,353 Weighted average common shares outstanding 19,133,745 17,856,828 17,720,479 Basic earnings per common share $ 1.85 $ 1.11 $ 1.60 Diluted Net income to common stockholders $ 35,446 $ 19,813 $ 28,353 Dilutive effect of preferred stock 774 — 780 Net income to common stockholders - diluted $ 36,220 $ 19,813 $ 29,133 Weighted average common shares outstanding 19,133,745 17,856,828 17,720,479 Dilutive effects of: Restricted stock 68,079 110,565 79,821 Assumed exercises of stock options 45,653 3,128 — Assumed exercises of stock warrants 82,567 83,010 48,238 Assumed conversion of Preferred A 315,773 — 315,773 Assumed conversion of Preferred B 354,471 — 360,578 Average shares and dilutive potential common shares 20,000,288 18,053,531 18,524,889 Diluted earnings per common share $ 1.81 $ 1.10 $ 1.57 Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: Years Ended December 31, 2017 2016 2015 Shares assumed to be converted from Preferred Stock Series A — 315,773 — Shares assumed to be converted from Preferred Stock Series B — 360,578 — Restricted stock awards — — — Stock options 57,926 — — |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | NOTE 22 – BUSINESS SEGMENT INFORMATION The following presents the Company’s operating segments. The accounting policies of the segments are substantially similar to those described in Note 1 – Summary of Significant Accounting Policies. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate. The provision for loan loss is allocated based on the segment’s ALLL determination. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis but not allocated for segment purposes. The Factoring segment includes only factoring originated by TBC. General factoring services not originated through TBC are included in the Banking segment. On March 31, 2017, we sold our 100% membership interest in TCA. As a result, the Asset Management segment had no operations subsequent to March 31, 2017. (Dollars in thousands) Asset Year Ended December 31, 2017 Banking Factoring Management Corporate Consolidated Total interest income $ 130,480 $ 45,346 $ 3 $ 1,395 $ 177,224 Intersegment interest allocations 8,023 (8,023 ) — — — Total interest expense 16,240 — — 5,300 21,540 Net interest income (expense) 122,263 37,323 3 (3,905 ) 155,684 Provision for loan losses 9,310 2,227 — 91 11,628 Net interest income (expense) after provision 112,953 35,096 3 (3,996 ) 144,056 Gain on sale of subsidiary — — — 20,860 20,860 Other noninterest income 14,336 2,737 1,717 1,006 19,796 Noninterest expense 90,632 22,641 1,456 8,885 123,614 Operating income (loss) $ 36,657 $ 15,192 $ 264 $ 8,985 $ 61,098 (Dollars in thousands) Asset Year Ended December 31, 2016 Banking Factoring Management Corporate Consolidated Total interest income $ 90,823 $ 32,824 $ 145 $ 700 $ 124,492 Intersegment interest allocations 4,583 (4,583 ) — — — Total interest expense 9,872 — — 2,262 12,134 Net interest income (expense) 85,534 28,241 145 (1,562 ) 112,358 Provision for loan losses 6,239 454 — — 6,693 Net interest income (expense) after provision 79,295 27,787 145 (1,562 ) 105,665 Noninterest income 9,077 2,256 6,632 2,991 20,956 Noninterest expense 65,795 19,551 5,234 2,532 93,112 Operating income (loss) $ 22,577 $ 10,492 $ 1,543 $ (1,103 ) $ 33,509 (Dollars in thousands) Asset Year Ended December 31, 2015 Banking Factoring Management Corporate Consolidated Total interest income $ 65,831 $ 32,103 $ 108 $ 718 $ 98,760 Intersegment interest allocations 3,144 (3,144 ) — — — Total interest expense 6,978 — 10 1,121 8,109 Net interest income (expense) 61,997 28,959 98 (403 ) 90,651 Provision for loan losses 3,226 1,303 — — 4,529 Net interest income (expense) after provision 58,771 27,656 98 (403 ) 86,122 Bargain purchase gain — — 15,117 — 15,117 Other noninterest income 9,644 1,739 5,757 1,040 18,180 Noninterest expense 51,249 17,871 6,866 5,879 81,865 Operating income (loss) $ 17,166 $ 11,524 $ 14,106 $ (5,242 ) $ 37,554 (Dollars in thousands) Asset December 31, 2017 Banking Factoring Management Corporate Eliminations Consolidated Total assets $ 3,444,322 $ 360,922 $ — $ 504,656 $ (810,867 ) $ 3,499,033 Gross loans held for investment $ 2,784,147 $ 346,293 $ — $ 11,936 $ (331,520 ) $ 2,810,856 (Dollars in thousands) Asset December 31, 2016 Banking Factoring Management Corporate Eliminations Consolidated Total assets $ 2,588,509 $ 223,994 $ 4,879 $ 391,745 $ (568,060 ) $ 2,641,067 Gross loans held for investment $ 1,961,552 $ 212,784 $ — $ 1,866 $ (148,578 ) $ 2,027,624 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | NOTE 23 — QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents quarterly financial data for the years ended December 31, 2017 and 2016. Year Ended December 31, 2017 Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 52,217 $ 45,137 $ 43,538 $ 36,332 Interest expense 6,421 5,625 4,981 4,513 Net interest income 45,796 39,512 38,557 31,819 Provision for loan losses 1,931 572 1,447 7,678 Net interest income after provision 43,865 38,940 37,110 24,141 Gain on sale of subsidiary — — — 20,860 Other noninterest income 3,998 4,171 5,202 6,425 Noninterest income 3,998 4,171 5,202 27,285 Noninterest expense 33,231 28,225 27,321 34,837 Net income before income taxes 14,632 14,886 14,991 16,589 Income tax expense 8,327 5,104 5,331 6,116 Net income 6,305 9,782 9,660 10,473 Dividends on preferred stock (194 ) (195 ) (193 ) (192 ) Net income available to common stockholders $ 6,111 $ 9,587 $ 9,467 $ 10,281 Earnings per common share Basic $ 0.29 $ 0.48 $ 0.53 $ 0.57 Diluted $ 0.29 $ 0.47 $ 0.51 $ 0.55 Year Ended December 31, 2016 Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 37,774 $ 33,471 $ 28,354 $ 24,893 Interest expense 4,230 3,053 2,447 2,404 Net interest income 33,544 30,418 25,907 22,489 Provision for loan losses 2,446 2,819 1,939 (511 ) Net interest income after provision 31,098 27,599 23,968 23,000 Noninterest income 6,208 6,099 3,668 4,981 Noninterest expense 26,911 25,792 20,331 20,078 Net income before income taxes 10,395 7,906 7,305 7,903 Income tax expense 4,134 3,099 2,679 2,897 Net income 6,261 4,807 4,626 5,006 Dividends on preferred stock (197 ) (301 ) (195 ) (194 ) Net income available to common stockholders $ 6,064 $ 4,506 $ 4,431 $ 4,812 Earnings per common share Basic $ 0.34 $ 0.25 $ 0.25 $ 0.27 Diluted $ 0.33 $ 0.25 $ 0.25 $ 0.27 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 24 — SUBSEQUENT EVENTS Triumph Healthcare Finance On January 19, 2018, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Healthcare Finance (“THF”) and exit its healthcare asset-based lending line of business. See additional details in Note 2 – Business Combinations and Divestitures. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Triumph Bancorp, Inc. (collectively with its subsidiaries, “Triumph”, or the “Company” as applicable) is a financial holding company headquartered in Dallas, Texas. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Triumph CRA Holdings, LLC (“TCRA”), TBK Bank, SSB (“TBK Bank”), TBK Bank’s wholly owned factoring subsidiary Advance Business Capital LLC, which currently operates under the d/b/a of Triumph Business Capital (“TBC”), and TBK Bank’s wholly owned subsidiary Triumph Insurance Group, Inc. (“TIG”). On March 31, 2017 the Company sold its membership interest in its wholly owned subsidiary Triumph Capital Advisors, LLC (“TCA”). See Note 2 – Business Combinations and Divestitures for details of the TCA sale and its impact on the Company’s consolidated financial statements. On January 19, 2018, the Company entered into an agreement to sell the assets (the “Disposal Group”) of Triumph Healthcare Finance (“THF”), and exit its healthcare asset-based lending line of business. THF operates within the TBK Bank, SSB subsidiary. The decision to sell THF was made prior to the end of the year, and at December 31, 2017, the fair value of the Disposal Group exceeded its carrying amount. As a result of this decision, the carrying amount of the Disposal Group was transferred to assets held for sale. See Note 2 – Business Combinations and Divestitures for additional information pertaining to the Disposal Group and the impact of the transaction on the Company’s consolidated financial statements. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Company consolidates subsidiaries in which it holds, directly or indirectly, a controlling financial interest. The Company determines whether it has a controlling financial interest in an entity by first evaluating whether the entity is a voting interest entity or a variable interest entity under U.S. generally accepted accounting principles (“GAAP”). Voting interest entities are entities in which the total equity investment at risk is sufficient to enable the entity to finance itself independently and provides the equity holders with the obligation to absorb losses, the right to receive residual returns and the right to make decisions about the entity’s activities. The Company consolidates voting interest entities in which it has at least a majority of the voting interest. Variable interest entities (“VIEs”) are entities that lack one or more of the characteristics of a voting interest entity. A controlling financial interest in a VIE is present when an enterprise has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The enterprise with a controlling financial interest, known as the primary beneficiary, consolidates the VIE. In consolidation, all significant intercompany accounts and transactions are eliminated. Investments in unconsolidated entities are accounted for using the equity method of accounting when the Company has the ability to exercise significant influence over operating and financing decisions. Investments that do not meet the criteria for equity method accounting are accounted for using the cost method of accounting. The accounting and reporting policies of the Company and its subsidiaries conform to GAAP and general practice within the banking industry. Certain reclassifications have been made to prior year amounts to conform to the current year presentation. The Company uses the accrual basis of accounting for financial reporting purposes. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with GAAP management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ . |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, other short term investments and federal funds sold. All highly liquid investments with an initial maturity of less than 90 days are considered to be cash equivalents. Certain items, including loan and deposit transactions, customer repurchase agreements, and FHLB advances and repayments, are presented net in the statement of cash flows. |
Securities | Securities The Company determines the classification of securities at the time of purchase. Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading are classified as available for sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), net of tax. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific-identification method. Amortization of premiums and discounts are recognized in interest income over the period to maturity using the interest method. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuers’ financial condition. The Company conducts regular reviews of the bond agency ratings of securities and considers whether the securities were issued by or have principal and interest payments guaranteed by the federal government or its agencies. These reviews focus on the underlying rating of the issuer and also include the insurance rating of securities that have an insurance component or guarantee. The ratings and financial condition of the issuers are monitored, as well as the financial condition and ratings of the insurers and guarantors. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized through earnings, and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. |
Loans Held for Sale | Loans Held for Sale The Company elects the fair value option for recording mortgage loans originated and intended for sale in the secondary market in accordance with Accounting Standards Codification (“ASC”) 825, “Financial Instruments”. The fair value of mortgage loans held for sale is determined based on outstanding commitments from investors to purchase such loans and upon prevailing market rates. Increases or decreases in the fair value of these loans held for sale, if any, are charged to earnings through net gains on sale of loans. Mortgage loans held for sale are generally sold with servicing rights released. Gains and losses on sales of mortgage loans are based on the difference between the final selling price and the fair value of the related loan sold. The Company originated and sold mortgage loans during the years ended December 31, 2016 and 2015 and these activities are reflected in the Consolidated Statements of Income and the Consolidated Statements of Cash Flows for these respective years; however, there were no mortgage loans held for sale carried on the Consolidated Balance Sheets at December 31, 2017 and 2016 as the Company made the decision to exit the residential mortgage production business in the fourth quarter of 2015. Management occasionally transfers non-mortgage loans from held for investment to held for sale. Gains or losses on the sale of these loans are recorded in noninterest income. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the unpaid principal balance outstanding, net of unearned income, deferred loan fees and costs, and any direct principal charge-offs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income over the remaining life of the loan without anticipating prepayments. Loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement or any portion thereof remains unpaid after the due date of the scheduled payment. Loans are classified as nonaccrual when, in the opinion of management, collection of principal or interest is doubtful. The accrual of interest income on loans is typically discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection, or if full collection of interest or principal becomes uncertain. Consumer loans are typically charged off no later than 120 days past due. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not received for a loan 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. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Acquired Loans Acquired loans are recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Loans acquired in a business combination that have evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable are considered purchased credit impaired (“PCI”). PCI loans are individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized on the balance sheet and do not result in any yield adjustments, loss accruals or valuation allowances. Increases in expected cash flows, including prepayments, subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows are recognized as impairment. Valuation allowances on PCI loans reflect only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). For acquired loans not deemed credit-impaired at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. Subsequent to the acquisition date, methods utilized to estimate the required allowance for loan and lease losses for these loans is similar to originated loans; however, a provision for credit losses will be recorded only to the extent the required allowance exceeds any remaining purchase discounts. Once an acquired loan undergoes new underwriting and meets the criteria for a new loan, such as in the case of a loan renewal, any remaining fair value adjustments are accreted into interest income and the loan establishes a new amortized cost basis that is fully subject to the Company's allowance for loan and lease loss methodology. Factored Receivables The Company purchases invoices from its factoring clients in schedules or batches. Cash is advanced to the client to the extent of the applicable advance rate, less fees, as set forth in the individual factoring agreements. The face value of the invoices purchased are recorded by the Company as factored receivables, and the unadvanced portions of the invoices purchased, less fees, are considered client reserves. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Unearned factoring fees and unearned net origination fees are deferred and recognized over the weighted average collection period for each client. Subsequent factoring fees are recognized in interest income as incurred by the client and deducted from the clients’ reserve balances. Other factoring-related fees, which include wire transfer fees, carrier payment fees, fuel advance fees, and other similar fees, are reported by the Company as non-interest income as incurred by the client. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses (the “ALLL”) is a valuation allowance maintained to cover incurred losses that are estimated in accordance with US GAAP. It is our estimate of credit losses inherent in our loan portfolio at each balance sheet date. Our methodology for analyzing the allowance for loan and lease losses consists of general and specific components. For the general component, we stratify the loan portfolio into homogeneous groups of loans that possess similar loss potential characteristics and apply a loss ratio to these groups of loans to estimate the credit losses in the loan portfolio. We use both historical loss ratios and qualitative loss factors assigned to major loan collateral types to establish general component loss allocations. Qualitative loss factors are based on management's judgment of company, market, industry or business specific data and external economic indicators, which are not yet reflected in the historical loss ratios, and that could impact the Company's loan portfolios. Management sets and adjusts qualitative loss factors by regularly reviewing changes in underlying loan composition of specific portfolios. Management also considers credit quality and trends relating to delinquency, non-performing and adversely rated loans within the Company's loan portfolio when evaluating qualitative loss factors. Additionally, management adjusts qualitative factors to account for the potential impact of external economic factors and other pertinent economic data specific to our primary market area and lending portfolios. For the specific component, the allowance for loan and lease losses includes loans where management has concerns about the borrower's ability to repay and on individually analyzed loans found to be impaired. Management evaluates current information and events regarding a borrower's ability to repay its obligations and considers a loan to be impaired when the ultimate collectability of amounts due, according to the contractual terms of the loan agreement, is in doubt. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. If an impaired loan is collateral-dependent, the fair value of the collateral, less the estimated cost to sell, is used to determine the amount of impairment. If an impaired loan is not collateral-dependent, the impairment amount is determined using the negative difference, if any, between the estimated discounted cash flows and the loan amount due. For impaired loans, the amount of the impairment can be adjusted, based on current data, until such time as the actual basis is established by acquisition of the collateral or until the basis is collected. Impairment losses are reflected in the allowance for loan and lease losses through a charge to the provision for credit losses. Subsequent recoveries are credited to the allowance for loan and lease losses. Cash receipts for accruing loans are applied to principal and interest under the contractual terms of the loan agreement. Cash receipts on impaired loans for which the accrual of interest has been discontinued are applied first to principal. Loan losses are charged against the ALLL when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the ALLL. Allocations of the ALLL may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. The Company considers these loans to be homogeneous in nature due to the smaller dollar amount and the similar underwriting criteria. PCI loans are not considered impaired on the acquisition date. For PCI loans, a decline in the present value of current expected cash flows compared to the previously estimated expected cash flows, due in any part to change in credit, is considered an impairment event and a provision for loan losses will be recorded during the period as necessary. A loan that has been modified or renewed is considered a troubled debt restructuring (“TDR”) when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made for the borrower's benefit that would not otherwise be considered for a borrower or transaction with similar credit risk characteristics. TDRs are separately identified for impairment and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral up to the carrying amount of the loan. The following loan portfolio categories have been identified for purposes of determining the general component of the ALLL: Commercial Real Estate — This category of loans consists of the following loan types: Non-farm Non-residential — This category includes real estate loans for a variety of commercial property types and purposes, including owner occupied commercial real estate loans primarily secured by commercial office or industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. Repayment terms vary considerably, interest rates are fixed or variable, and are structured for full, partial, or no amortization of principal. This category also includes investment real estate loans that are primarily secured by office and industrial buildings, warehouses, small retail shopping centers and various special purpose properties. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Multi-family residential — Investment real estate loans are primarily secured by non-owner occupied apartment or multifamily residential buildings. Generally, these types of loans are thought to involve a greater degree of credit risk than owner occupied commercial real estate as they are more sensitive to adverse economic conditions. Construction, land development, 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. 1-4 family residential properties — 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. Farmland — These loans are principally loans to purchase farmland. Commercial — Commercial loans are loans 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. Commercial loans are generally secured by accounts receivable, inventory and other business assets. Commercial loans also include shared national credits purchased by the Company. A portion of the commercial loan portfolio consists of specialty commercial finance products as follows: Equipment — Equipment finance loans are commercial loans primarily secured by new or used revenue producing, essential-use equipment from major manufacturers that is movable, may be used in more than one type of business, and generally has broad resale markets. Core markets include transportation, construction, and waste. Loan terms do not exceed the economic life of the equipment and typically are 60 months or less. Asset-based Lending — These loans are originated to borrowers to support general working capital needs. The asset-based loan structure involves advances of loan proceeds against a borrowing base which typically consists of accounts receivable, identified readily marketable inventory, or other collateral of the borrower. The maximum amount a customer may borrow at any time is fixed as a percentage of the borrowing base outstanding. Premium Finance — Loans that provide customized premium financing solutions for the acquisition of property and casualty insurance coverage. In effect, these short term premium finance loans allow insureds to pay their insurance premiums over the life of the underlying policy, instead of paying the entire premium at the outset. Factored Receivables — The Company operates as a factor by purchasing accounts receivable from its clients, then collecting the receivable from the account debtor. The Company’s smaller factoring relationships are typically structured as “non-recourse” relationships ( , the Company retains the credit risk associated with the ability of the account debtor on a purchased invoice to ultimately make payment) and the Company’s larger factoring relationships are typically structured as “recourse” relationships ( , the Company’s client agrees to repurchase any invoices for which payment is not ultimately received from the account debtor). Advances initially made to the client to acquire the receivables are typically at a discount to the invoice value. The discount balance is held in client reserves, net of the Company’s compensation. The client reserves are held to settle any payment disputes or collection shortfalls, may be used to pay clients’ obligations to various third parties as directed by the client, are periodically released to or withdrawn by clients, and are reported as deposits. Consumer — Loans used for personal use typically on an unsecured basis. 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 has a policy that requires that it separately validate that each residential mortgage loan was underwritten consistent with the underwriting requirements of the final investor or market standards prior to advancing funds. The Company is repaid with the proceeds received from sale of the mortgage loan to the final investor. |
Federal Home Loan Bank ("FHLB") Stock | Federal Home Loan Bank (“FHLB”) Stock The Company is a member of the FHLB system. Members of the FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock is carried at cost, are restricted as to redemption, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Buildings and related components are generally depreciated using the straight-line method with useful lives ranging from thirty to forty years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from three to ten years. |
Foreclosed Assets | Foreclosed Assets Assets acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan at the time of foreclosure or the fair value less costs to sell, establishing a new cost basis. Any write-down in the carrying value of a property at the time of acquisition is charged-off to the allowance for loan and lease losses. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed . |
Goodwill | Goodwill Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. In accordance with ASC 350-20, "Intangibles- Goodwill and Other", the Company evaluates goodwill for impairment on an annual basis or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value below its carrying amount, in accordance with ASC 350-20. The Company’s annual goodwill impairment testing date is October 1. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining the need to perform the two-step test for goodwill impairment (the qualitative method). If the qualitative method cannot be used or if it determines, based on the qualitative method, that the fair value is more likely than not less than the carrying amount, the Company uses the two-step test. Under the two-step test, the Company compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of a reporting unit exceeds its estimated fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. Step two of the goodwill impairment test compares the implied estimated fair value of reporting unit goodwill with the carrying amount of that goodwill. If the carrying amount of goodwill for that reporting unit exceeds the implied fair value of that unit’s goodwill, an impairment loss is recognized in an amount equal to that excess. Our annual goodwill impairment test did not identify any goodwill impairment for the years ended December 31, 2017 and 2016. |
Identifiable Intangible Assets | Identifiable Intangible Assets Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. The Company's intangible assets primarily relate to core deposits and customer relationships. Intangible assets with definite useful lives are amortized on an accelerated basis over their estimated life. Intangible assets, premises and equipment and other long-lived assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value with a charge to amortization of intangible assets. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. The purchase of these life insurance policies allows the Company to use tax-advantaged rates of return. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Income Taxes | Income Taxes The Company files a consolidated tax return with its subsidiaries and is taxed as a C corporation. 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. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to income tax matters in income tax expense. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that may use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and/or the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. Changes in assumptions or in market conditions could significantly affect these estimates. In the ordinary course of business, the Company generally does not sell or transfer non-impaired loans and deposits. As such, the disclosures that present the December 31, 2017 and 2016 estimated fair value for non-impaired loans and deposits are highly judgmental and may not represent amounts to be received if the Company were to sell or transfer such items. |
Asset Management Fees | Asset Management Fees On March 31, 2017, the Company sold its membership interests in TCA. At the date of sale, the Company ceased to provide fee based asset management services. Prior to the sale of TCA, asset management fee income was recognized through the Company’s collateralized loan obligation (“CLO”) asset management business operated by TCA and consisted of senior (or base) asset management fees, subordinated management fees, and performance-based incentive fees. Senior and subordinated management fees were based upon a fixed fee rate applied to the amount of outstanding assets being managed by TCA and were accrued by the Company as earned. Performance-based incentive fees were variable in nature and dependent upon the performance of a managed CLO above a prescribed level. The Company did not accrue for performance-based incentive fees that were not finalized until the end of a specified contract period, but recorded such revenues only when final payment was confirmed and related services were completed. The Company did not recognized any revenue that is at risk due to future asset management performance contingencies. TCA also entered into transactions whereby it earned asset management fee income through the provision of middle and back office services to other CLO asset managers. |
Operating Segments | Operating Segments The Company’s reportable segments are comprised of strategic business units primarily based upon industry categories and to a lesser extent, the core competencies relating to product origination, distribution methods, operations and servicing. Segment determination also considered organizational structure and our segment reporting is consistent with the presentation of financial information to the chief operating decision maker to evaluate segment performance, develop strategy, and allocate resources. Our chief operating decision maker is the Chief Executive Officer of Triumph Bancorp, Inc. We have determined our reportable segments are Banking, Factoring, Asset Management, and Corporate. The banking segment includes the operations of TBK Bank. The banking segment derives its revenue principally from investments in interest earning assets as well as noninterest income typical for the banking industry. The banking segment also includes commercial factoring services which are originated through the commercial finance division of TBK Bank. The factoring segment includes the operations of TBC with revenue derived from factoring services. The asset management segment includes the operations of TCA with revenue derived from fees for managing CLO funds and providing middle and back office services to other CLO managers. On March 31, 2017 the Company sold its membership interests in TCA. As a result, the asset management segment had no operations or assets subsequent to March 31, 2017. The corporate segment includes holding company financing and investment activities and management and administrative expenses to support the overall operations of the Company. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income includes unrealized gains and losses on securities available for sale, net of taxes, which are also recognized as a separate component of equity. |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe such matters exist that will have a material effect on the financial statements. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been relinquished. Control over transferred assets is deemed to be relinquished when (i) the assets have been isolated from the Company, (ii) the transferee has the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (iii) the Company does not maintain effective control over the transferred assets through either (a) an agreement that entitles and obligates the Company to repurchase or redeem them before their maturity or (b) the ability to unilaterally cause the holder to return specific assets. |
Stock-Based Compensation | Stock Based Compensation Compensation cost is recognized for stock options and restricted stock awards 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, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is net income less dividends on preferred stock divided by the weighted average number of common shares outstanding during the period excluding nonvested restricted stock awards. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock warrants, restricted stock awards, stock options, and preferred shares that are convertible to common shares. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). The FASB issued this ASU to improve the accounting for share-based payments. ASU 2016-09 simplifies several aspects of the accounting for share-based payment award transactions, including: the presentation of income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and calculation of diluted earnings per share. The new standard was effective for the Company on January 1, 2017. Adoption of ASU 2016-09 did not have a material impact on the Company’s financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities” (“ASU 2017-08”). These amendments shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As permitted by the amendment, the Company elected to early adopt the provisions of this ASU as of January 1, 2017. Adoption of ASU 2017-08 did not have a material impact on the Company’s consolidated financial statements. |
Newly Issued, But Not Yet Effective Accounting Standards | Newly Issued, But Not Yet Effective Accounting Standards In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaces most existing revenue recognition guidance in GAAP. The new standard was effective for the Company on January 1, 2018 and management has completed its analysis of the impact of the standard’s adoption. Adoption of the ASU did not have a significant impact on the Company’s consolidated financial statements and related disclosures. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of ASU 2014-09. The Company’s revenue recognition pattern for revenue streams within the scope of ASU 2014-09, including but not limited to service charges on deposit accounts and gains/losses on the sale of OREO, did not change significantly from current practice. The standard permits the use of either the full retrospective or modified retrospective transition method. The Company elected to use the modified retrospective transition method which requires application of ASU 2014-09 to uncompleted contracts at the date of adoption however, periods prior to the date of adoption will not be retrospectively revised as the impact of the ASU on uncompleted contracts at the date of adoption was not material. In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and is not expected to have a significant impact on our consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (“ASU 2016-02”). The FASB issued this ASU to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet by lessees for those leases classified as operating leases under current U.S. GAAP and disclosing key information about leasing arrangements. The amendments in this ASU are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s consolidated financial statements. The Company leases certain properties and equipment under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU, however, the majority of the Company’s properties and equipment are owned, not leased. At December 31, 2017, the Company had contractual operating lease commitments of approximately $5,969,000, before considering renewal options that are generally present. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on debt securities and purchased financial assets with credit deterioration. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 31, 2019, and interim periods within those years for public business entities that are SEC filers. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018, however, the Company does not currently plan to early adopt the ASU. The Company has formed a cross functional team that is assessing the Company’s data and system needs and evaluating the impact that adoption of this standard will have on the financial condition and results of operations of the Company. |
Business Combinations and Div33
Business Combinations and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Valley Bancorp, Inc. | |
Business Acquisition [Line Items] | |
Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 38,473 Securities 97,687 Loans 171,199 FHLB stock 315 Premises and equipment 6,238 Other real estate owned 2,282 Intangible assets 6,072 Bank-owned life insurance 7,153 Other assets 1,882 331,301 Liabilities assumed: Deposits 293,398 Junior subordinated debentures 5,470 Other liabilities 2,881 301,749 Fair value of net assets acquired 29,552 Consideration transferred 40,075 Goodwill $ 10,523 |
Summary of Acquired Loans | In connection with the acquisition, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The acquired loans were initially recorded at fair value with no carryover of any allowance for loan and lease losses. Acquired loans were segregated between those considered to be purchased credit impaired (“PCI”) loans and those without credit impairment at acquisition. The following table presents details of the estimated fair value of acquired loans at the acquisition date: Loans, Excluding PCI Total (Dollars in thousands) PCI Loans Loans Loans Commercial real estate $ 73,273 $ 254 $ 73,527 Construction, land development, land 19,770 1,199 20,969 1-4 family residential properties 26,264 — 26,264 Farmland 16,934 — 16,934 Commercial 31,893 — 31,893 Factored receivables — — — Consumer 1,612 — 1,612 Mortgage warehouse — — — $ 169,746 $ 1,453 $ 171,199 |
Valley Bancorp, Inc. | PCI Loans | |
Business Acquisition [Line Items] | |
Schedule of Loans Acquired in Business Combination | The following presents information at the acquisition date for PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 2,599 Contractual cash flows not expected to be collected (nonaccretable difference) 775 Expected cash flows at acquisition 1,824 Interest component of expected cash flows (accretable yield) 371 Fair value of loans acquired with deterioration of credit quality $ 1,453 |
Valley Bancorp, Inc. | Non-PCI | |
Business Acquisition [Line Items] | |
Schedule of Loans Acquired in Business Combination | The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 214,139 Contractual cash flows not expected to be collected $ 3,646 Fair value at acquisition $ 169,746 |
Independent Bank - Colorado Branches | |
Business Acquisition [Line Items] | |
Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the estimated fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 1,611 Loans 95,794 Premises and equipment 7,524 Intangible assets 3,255 Other assets 1,644 109,828 Liabilities assumed: Deposits 160,702 Other liabilities 249 160,951 Fair value of net assets acquired (51,123 ) Cash received from seller, net of $6,771 deposit premium 45,306 Goodwill $ 5,817 |
Summary of Acquired Loans | The loans acquired in the transaction were initially recorded at fair value with no carryover of any allowance for loan and lease losses. There were no loans acquired that were considered to be purchased credit impaired (“PCI”) loans. The following table presents details of the estimated fair value of acquired loans at the acquisition date: (Dollars in thousands) Commercial real estate $ 13,382 Construction, land development, land 537 1-4 family residential properties 6,986 Farmland 31,490 Commercial 43,104 Factored receivables — Consumer 295 Mortgage warehouse — $ 95,794 |
Independent Bank - Colorado Branches | Non-PCI | |
Business Acquisition [Line Items] | |
Schedule of Loans Acquired in Business Combination | The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 122,498 Contractual cash flows not expected to be collected $ 3,415 Fair value at acquisition $ 95,794 |
ColoEast Bankshares, Inc. | |
Business Acquisition [Line Items] | |
Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the fair values of assets acquired, liabilities assumed, consideration transferred, and the resulting goodwill is as follows: Initial Values Measurement Recorded at Period Adjusted (Dollars in thousands) Acquisition Date Adjustments Values Assets acquired: Cash and cash equivalents $ 57,671 $ — $ 57,671 Securities 161,693 — 161,693 Loans 460,775 — 460,775 FHLB and Federal Reserve Bank stock 550 — 550 Premises and equipment 23,940 — 23,940 Other real estate owned 3,105 (143 ) 2,962 Intangible assets 7,238 — 7,238 Bank-owned life insurance 6,400 — 6,400 Deferred income taxes 4,511 (70 ) 4,441 Other assets 10,022 — 10,022 735,905 (213 ) 735,692 Liabilities assumed: Deposits 652,952 — 652,952 Junior subordinated debentures 7,728 — 7,728 Other liabilities 6,784 — 6,784 667,464 — 667,464 Fair value of net assets acquired 68,441 (213 ) 68,228 Cash paid 70,000 — 70,000 TARP Preferred Stock assumed 10,500 — 10,500 Consideration transferred 80,500 — 80,500 Goodwill $ 12,059 $ 213 $ 12,272 |
Summary of Acquired Loans | The following table presents details on acquired loans at the acquisition date: Loans, Excluding PCI Total (Dollars in thousands) PCI Loans Loans Loans Commercial real estate $ 86,569 $ 10,907 $ 97,476 Construction, land development, land 58,718 2,933 61,651 1-4 family residential properties 36,412 91 36,503 Farmland 100,977 233 101,210 Commercial 151,605 5,129 156,734 Factored receivables 694 — 694 Consumer 6,507 — 6,507 $ 441,482 $ 19,293 $ 460,775 |
Schedule of Pro Forma Information on Acquisition | The following table presents pro forma information for the years ended December 31, 2016 and 2015 as if the ColoEast acquisition had occurred at the beginning of 2015. The pro forma information includes adjustments for interest income on loans acquired, interest expense on junior subordinated debentures assumed, depreciation expense on property acquired, amortization of intangibles arising from the transaction, and the related income tax effects. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been completed on the assumed date. (Dollars in thousands) December 31, 2016 December 31, 2015 Net interest income $ 128,322 $ 117,051 Noninterest income $ 22,671 $ 36,539 Net income $ 21,220 $ 31,624 Basic earnings per common share $ 1.14 $ 1.73 Diluted earnings per common share $ 1.13 $ 1.70 |
ColoEast Bankshares, Inc. | PCI Loans | |
Business Acquisition [Line Items] | |
Schedule of Loans Acquired in Business Combination | Information about the acquired loan portfolio subject to PCI accounting guidance as of August 1, 2016 is as follows: (Dollars in thousands) Contractually required principal and interest payments $ 25,124 Contractual cash flows not expected to be collected (nonaccretable difference) 1,707 Expected cash flows at acquisition 23,417 Interest component of expected cash flows (accretable yield) 4,124 Fair value of loans acquired with deterioration of credit quality $ 19,293 |
ColoEast Bankshares, Inc. | Non-PCI | |
Business Acquisition [Line Items] | |
Schedule of Loans Acquired in Business Combination | The following presents information at the acquisition date for non-PCI loans acquired in the transaction: (Dollars in thousands) Contractually required principal and interest payments $ 530,404 Contractual cash flows not expected to be collected $ 21,272 Fair value at acquisition $ 441,482 |
Doral Money Acquisition | |
Business Acquisition [Line Items] | |
Summary of Fair Values of the Identifiable Assets Acquired and Liabilities Assumed | A summary of the fair values of assets acquired, liabilities assumed, net consideration transferred, and the resulting bargain purchase gain is as follows: Initial Values Measurement Recorded at Period Adjusted (Dollars in thousands) Acquisition Date Adjustments Values Assets acquired: Cash $ 8,273 $ — $ 8,273 CLO Securities 98,316 — 98,316 Intangible asset - CLO management contracts 1,918 — 1,918 Loans 36,765 900 37,665 Prepaid corporate income tax 3,014 1,688 4,702 Other assets 772 — 772 149,058 2,588 151,646 Liabilities assumed: Deferred tax liability 663 — 663 Other liabilities 22 (20 ) 2 685 (20 ) 665 Fair value of net assets acquired 148,373 2,608 150,981 Net consideration transferred 135,864 — 135,864 Bargain purchase gain $ (12,509 ) $ (2,608 ) $ (15,117 ) |
Triumph Healthcare Finance | |
Business Acquisition [Line Items] | |
Summary of Assets Held for Sale and Consideration Received and Gain on Sale | A summary of the carrying amount of the assets in the Disposal Group transferred to held for sale is as follows: (Dollars in thousands) Loans $ 70,771 Allowance for loan and lease losses (2,103 ) Loans, net of allowance for loan and lease losses 68,668 Premises and equipment, net 33 Goodwill 1,024 Intangible assets, net 1,007 Other assets 630 Total carrying amount $ 71,362 |
Triumph Capital Advisors, LLC | |
Business Acquisition [Line Items] | |
Summary of Assets Held for Sale and Consideration Received and Gain on Sale | A summary of the consideration received and the gain on sale is as follows: (Dollars in thousands) Consideration received (fair value): Cash $ 10,554 Loan receivable 10,500 Revenue share 1,623 Total consideration received 22,677 Carrying value of TCA membership interest 1,417 Gain on sale of subsidiary 21,260 Transaction costs 400 Gain on sale of subsidiary, net of transaction costs $ 20,860 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost of Securities and Their Approximate Fair Values | Securities have been classified in the financial statements as available for sale or held to maturity. The amortized cost of securities and their approximate fair values at December 31, 2017 and 2016 are as follows: Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2017 Cost Gains Losses Value Available for sale securities: U.S. Government agency obligations $ 110,531 $ 76 $ (717 ) $ 109,890 U.S. Treasury notes 1,940 — (6 ) 1,934 Mortgage-backed securities, residential 33,537 306 (180 ) 33,663 Asset backed securities 11,883 47 (85 ) 11,845 State and municipal 74,684 150 (443 ) 74,391 Corporate bonds 15,271 52 (3 ) 15,320 SBA pooled securities 3,535 27 (2 ) 3,560 Mutual fund 5,000 6 — 5,006 Total available for sale securities $ 256,381 $ 664 $ (1,436 ) $ 255,609 Gross Gross (Dollars in thousands) Amortized Unrecognized Unrecognized Fair December 31, 2017 Cost Gains Losses Value Held to maturity securities: CLO securities $ 8,557 $ — $ (1,030 ) $ 7,527 Gross Gross (Dollars in thousands) Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available for sale securities: U.S. Government agency obligations $ 180,945 $ 640 $ (643 ) $ 180,942 Mortgage-backed securities, residential 24,710 453 (173 ) 24,990 Asset backed securities 13,031 30 (159 ) 12,902 State and municipal 27,339 6 (708 ) 26,637 Corporate bonds 27,287 106 (3 ) 27,390 SBA pooled securities 156 1 — 157 Mutual fund 2,000 11 — 2,011 Total available for sale securities $ 275,468 $ 1,247 $ (1,686 ) $ 275,029 Gross Gross (Dollars in thousands) Amortized Unrecognized Unrecognized Fair December 31, 2016 Cost Gains Losses Value Held to maturity securities: CLO securities $ 29,352 $ 1,527 $ (58 ) $ 30,821 |
Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of securities at December 31, 2017, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available for Sale Securities Held to Maturity Securities Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ 30,577 $ 30,540 $ — $ — Due from one year to five years 118,179 117,532 — — Due from five years to ten years 32,427 32,363 — — Due after ten years 21,243 21,100 8,557 7,527 202,426 201,535 8,557 7,527 Mortgage-backed securities, residential 33,537 33,663 — — Asset backed securities 11,883 11,845 — — SBA pooled securities 3,535 3,560 — — Mutual fund 5,000 5,006 — — $ 256,381 $ 255,609 $ 8,557 $ 7,527 |
Schedule of Proceeds from Sales of Securities and the Associated Gross Gains and Losses | Proceeds from sales of securities and the associated gross gains and losses for the years ended December 31, 2017, 2016, and 2015 are as follows: (Dollars in thousands) 2017 2016 2015 Proceeds $ 32,441 $ 34,338 $ 17,635 Gross gains 35 17 259 Gross losses — (73 ) — |
Schedule of Information Pertaining to Securities with Gross Unrealized Losses | Information pertaining to securities with gross unrealized losses at December 31, 2017 and 2016, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are summarized as follows: Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2017 Value Losses Value Losses Value Losses Available for sale securities: U.S. Government agency obligations $ 47,605 $ (166 ) $ 40,053 $ (551 ) $ 87,658 $ (717 ) U.S. Treasury notes 1,934 (6 ) — — 1,934 (6 ) Mortgage-backed securities, residential 10,349 (21 ) 6,200 (159 ) 16,549 (180 ) Asset backed securities 4,898 (85 ) — — 4,898 (85 ) State and municipal 32,257 (216 ) 12,138 (227 ) 44,395 (443 ) Corporate bonds 4,073 (2 ) 149 (1 ) 4,222 (3 ) SBA pooled securities 1,654 (2 ) — — 1,654 (2 ) Mutual fund — — — — — — Total available for sale securities $ 102,770 $ (498 ) $ 58,540 $ (938 ) $ 161,310 $ (1,436 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized December 31, 2017 Value Losses Value Losses Value Losses Held to maturity securities: CLO securities $ 1,835 $ (28 ) $ 5,692 $ (1,002 ) $ 7,527 $ (1,030 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses Available for sale securities: U.S. Government agency obligations $ 95,362 $ (643 ) $ — $ — $ 95,362 $ (643 ) Mortgage-backed securities, residential 6,594 (173 ) — — 6,594 (173 ) Asset backed securities — — 7,946 (159 ) 7,946 (159 ) State and municipal 25,771 (708 ) — — 25,771 (708 ) Corporate bonds 372 (3 ) — — 372 (3 ) SBA pooled securities — — — — — — Mutual fund — — — — — — $ 128,099 $ (1,527 ) $ 7,946 $ (159 ) $ 136,045 $ (1,686 ) Less than 12 Months 12 Months or More Total (Dollars in thousands) Fair Unrecognized Fair Unrecognized Fair Unrecognized December 31, 2016 Value Losses Value Losses Value Losses Held to maturity securities: CLO securities $ 3,323 $ (58 ) $ — $ — $ 3,323 $ (58 ) |
Loans and Allowance for Loan 35
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Schedule of Recorded Investment and Unpaid Principal | The following table presents the recorded investment and unpaid principal for loans at December 31, 2017 and 2016: December 31, 2017 December 31, 2016 Recorded Unpaid Recorded Unpaid (Dollars in thousands) Investment Principal Difference Investment Principal Difference Commercial real estate $ 745,893 $ 753,803 $ (7,910 ) $ 442,237 $ 447,926 $ (5,689 ) Construction, land development, land 134,812 138,045 (3,233 ) 109,812 113,211 (3,399 ) 1-4 family residential properties 125,827 127,499 (1,672 ) 104,974 106,852 (1,878 ) Farmland 180,141 184,006 (3,865 ) 141,615 142,673 (1,058 ) Commercial 920,812 924,133 (3,321 ) 778,643 783,349 (4,706 ) Factored receivables 374,410 376,046 (1,636 ) 238,198 239,432 (1,234 ) Consumer 31,131 31,144 (13 ) 29,764 29,782 (18 ) Mortgage warehouse 297,830 297,830 — 182,381 182,381 — Total 2,810,856 $ 2,832,506 $ (21,650 ) 2,027,624 $ 2,045,606 $ (17,982 ) Allowance for loan and lease losses (18,748 ) (15,405 ) $ 2,792,108 $ 2,012,219 |
Summary of Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The activity in the ALLL during the years ended December 31, 2017, 2016 and 2015 is as follows: (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2017 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 1,813 $ 1,822 $ (259 ) $ 59 $ — $ 3,435 Construction, land development, land 465 825 (582 ) 175 — 883 1-4 family residential properties 253 24 (31 ) 47 — 293 Farmland 170 140 — — — 310 Commercial 8,014 5,785 (4,875 ) 1,329 (2,103 ) 8,150 Factored receivables 4,088 2,058 (1,667 ) 118 — 4,597 Consumer 420 859 (1,004 ) 508 — 783 Mortgage warehouse 182 115 — — — 297 $ 15,405 $ 11,628 $ (8,418 ) $ 2,236 $ (2,103 ) $ 18,748 (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2016 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 1,489 $ 313 $ (5 ) $ 16 $ — $ 1,813 Construction, land development, land 367 92 — 6 — 465 1-4 family residential properties 274 (22 ) (84 ) 85 — 253 Farmland 134 36 — — — 170 Commercial 5,276 5,390 (3,643 ) 991 — 8,014 Factored receivables 4,509 315 (856 ) 120 — 4,088 Consumer 216 689 (564 ) 79 — 420 Mortgage warehouse 302 (120 ) — — — 182 $ 12,567 $ 6,693 $ (5,152 ) $ 1,297 $ — $ 15,405 (Dollars in thousands) Beginning Reclassification Ending Year ended December 31, 2015 Balance Provision Charge-offs Recoveries To Held For Sale Balance Commercial real estate $ 533 $ 1,055 $ (152 ) $ 53 $ — $ 1,489 Construction, land development, land 333 34 — — — 367 1-4 family residential properties 215 60 (205 ) 204 — 274 Farmland 19 115 — — — 134 Commercial 4,003 1,375 (145 ) 43 — 5,276 Factored receivables 3,462 1,508 (540 ) 79 — 4,509 Consumer 140 218 (347 ) 205 — 216 Mortgage warehouse 138 164 — — — 302 $ 8,843 $ 4,529 $ (1,389 ) $ 584 $ — $ 12,567 |
Summary of Individual and Collective Allowance for Loan Losses and Loan Balances by Class | The following table presents loans individually and collectively evaluated for impairment, as well as PCI loans, and their respective ALLL allocations: (Dollars in thousands) Loan Evaluation ALLL Allocations December 31, 2017 Individually Collectively PCI Total loans Individually Collectively PCI Total ALLL Commercial real estate $ 1,013 $ 735,118 $ 9,762 $ 745,893 $ 123 $ 3,312 $ — $ 3,435 Construction, land development, land 136 130,732 3,944 134,812 — 883 — 883 1-4 family residential properties 2,638 122,093 1,096 125,827 152 141 — 293 Farmland 3,800 176,232 109 180,141 — 310 — 310 Commercial 26,616 893,509 687 920,812 1,409 6,741 — 8,150 Factored receivables 4,726 369,684 — 374,410 949 3,648 — 4,597 Consumer 384 30,747 — 31,131 80 703 — 783 Mortgage warehouse — 297,830 — 297,830 — 297 — 297 $ 39,313 $ 2,755,945 $ 15,598 $ 2,810,856 $ 2,713 $ 16,035 $ — $ 18,748 (Dollars in thousands) Loan Evaluation ALLL Allocations December 31, 2016 Individually Collectively PCI Total loans Individually Collectively PCI Total ALLL Commercial real estate $ 1,456 $ 427,918 $ 12,863 $ 442,237 $ 100 $ 1,358 $ 355 $ 1,813 Construction, land development, land 362 105,493 3,957 109,812 25 440 — 465 1-4 family residential properties 1,095 101,551 2,328 104,974 1 252 — 253 Farmland 1,333 140,045 237 141,615 — 170 — 170 Commercial 33,033 738,088 7,522 778,643 2,101 5,913 — 8,014 Factored receivables 3,176 235,022 — 238,198 1,546 2,542 — 4,088 Consumer 73 29,691 — 29,764 — 420 — 420 Mortgage warehouse — 182,381 — 182,381 — 182 — 182 $ 40,528 $ 1,960,189 $ 26,907 $ 2,027,624 $ 3,773 $ 11,277 $ 355 $ 15,405 |
Summary of Information Pertaining to Impaired Loans | The following is a summary of information pertaining to impaired loans. PCI loans that have not deteriorated subsequent to acquisition are not considered impaired and therefore do not require an ALLL and are excluded from these tables. Impaired Loans and PCI Impaired Loans Impaired Loans With a Valuation Allowance Without a Valuation Allowance (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid December 31, 2017 Investment Principal Allowance Investment Principal Commercial real estate $ 165 $ 165 $ 123 $ 848 $ 881 Construction, land development, land — — — 136 136 1-4 family residential properties 237 235 152 2,401 2,519 Farmland — — — 3,800 4,071 Commercial 9,194 9,191 1,409 17,422 17,605 Factored receivables 4,726 4,726 949 — — Consumer 271 267 80 113 115 Mortgage warehouse — — — — — PCI — — — — — $ 14,593 $ 14,584 $ 2,713 $ 24,720 $ 25,327 Impaired Loans and PCI Impaired Loans Impaired Loans With a Valuation Allowance Without a Valuation Allowance (Dollars in thousands) Recorded Unpaid Related Recorded Unpaid December 31, 2016 Investment Principal Allowance Investment Principal Commercial real estate $ 517 $ 517 $ 100 $ 939 $ 1,011 Construction, land development, land 277 275 25 85 86 1-4 family residential properties 8 14 1 1,087 1,215 Farmland — — — 1,333 1,364 Commercial 15,022 15,018 2,101 18,011 18,096 Factored receivables 3,176 3,176 1,546 — — Consumer — — — 73 73 Mortgage warehouse — — — — — PCI 525 525 355 — — $ 19,525 $ 19,525 $ 4,128 $ 21,528 $ 21,845 The following table presents average impaired loans and interest recognized on impaired loans for the years ended December 31, 2017, 2016, and 2015: Years Ended December 31, 2017 December 31, 2016 December 31, 2015 Average Interest Average Interest Average Interest (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Impaired Loans Recognized Commercial real estate $ 1,234 $ 33 $ 1,090 $ 46 $ 1,329 $ — Construction, land development, land 249 — 181 4 — — 1-4 family residential properties 1,867 45 857 18 623 42 Farmland 2,567 45 667 45 — — Commercial 29,825 599 20,474 980 7,552 187 Factored receivables 3,951 — 3,299 — 2,347 — Consumer 229 9 37 5 — — Mortgage warehouse — — — — — — PCI 262 — 525 — 263 — $ 40,184 $ 731 $ 27,130 $ 1,098 $ 12,114 $ 229 |
Summary of Contractually Past Due and Nonaccrual Loans | Past Due and Nonaccrual Loans The following is a summary of contractually past due and nonaccrual loans at December 31, 2017 and 2016: Past Due Past Due 90 (Dollars in thousands) 30-89 Days Days or More December 31, 2017 Still Accruing Still Accruing Nonaccrual Total Commercial real estate $ 1,374 $ — $ 1,012 $ 2,386 Construction, land development, land — — 136 136 1-4 family residential properties 1,378 62 2,625 4,065 Farmland 250 109 3,412 3,771 Commercial 6,630 39 22,247 28,916 Factored receivables 20,858 1,454 — 22,312 Consumer 947 — 384 1,331 Mortgage warehouse 165 — — 165 PCI 72 — 2,333 2,405 $ 31,674 $ 1,664 $ 32,149 $ 65,487 Past Due Past Due 90 (Dollars in thousands) 30-89 Days Days or More December 31, 2016 Still Accruing Still Accruing Nonaccrual Total Commercial real estate $ 699 $ 144 $ 1,163 $ 2,006 Construction, land development, land 619 — 362 981 1-4 family residential properties 956 — 1,039 1,995 Farmland 3,583 141 541 4,265 Commercial 11,060 1,077 26,619 38,756 Factored receivables 11,921 2,153 — 14,074 Consumer 667 2 73 742 Mortgage warehouse — — — — PCI 2,020 104 8,233 10,357 $ 31,525 $ 3,621 $ 38,030 $ 73,176 |
Schedule of Nonperforming Loans | The following table presents information regarding nonperforming loans at the dates indicated: (Dollars in thousands) December 31, 2017 December 31, 2016 Nonaccrual loans (1) $ 32,149 $ 38,030 Factored receivables greater than 90 days past due 1,454 2,153 Troubled debt restructurings accruing interest 5,128 5,123 $ 38,731 $ 45,306 (1) |
Summary of Risk Category of Loans | As of December 31, 2017 and 2016 based on the most recent analysis performed, the risk category of loans is as follows: (Dollars in thousands) December 31, 2017 Pass Substandard Doubtful PCI Total Commercial real estate $ 732,175 $ 3,956 $ — $ 9,762 $ 745,893 Construction, land development, land 130,732 136 — 3,944 134,812 1-4 family residential 122,044 2,687 — 1,096 125,827 Farmland 171,017 9,015 — 109 180,141 Commercial 878,957 41,168 — 687 920,812 Factored receivables 370,839 2,325 1,246 — 374,410 Consumer 30,739 392 — — 31,131 Mortgage warehouse 297,830 — — — 297,830 $ 2,734,333 $ 59,679 $ 1,246 $ 15,598 $ 2,810,856 (Dollars in thousands) December 31, 2016 Pass Substandard Doubtful PCI Total Commercial real estate $ 422,423 $ 6,951 $ — $ 12,863 $ 442,237 Construction, land development, land 105,493 362 — 3,957 109,812 1-4 family residential 101,339 1,307 — 2,328 104,974 Farmland 136,474 4,904 — 237 141,615 Commercial 729,634 41,487 — 7,522 778,643 Factored receivables 236,084 1,029 1,085 — 238,198 Consumer 29,688 76 — — 29,764 Mortgage warehouse 182,381 — — — 182,381 $ 1,943,516 $ 56,116 $ 1,085 $ 26,907 $ 2,027,624 |
Schedule of Loans Modified as Troubled Debt Restructurings | The following table presents loans modified as troubled debt restructurings that occurred during the years ended December 31, 2017, 2016, and 2015: Recorded Number of (Dollars in thousands) Investment Loans December 31, 2017 Commercial $ 8,831 8 December 31, 2016 Commercial real estate $ 809 3 Farmland 793 1 Commercial 16,612 27 $ 18,214 31 December 31, 2015 Commercial $ 1,544 4 |
Schedule of Outstanding Contractually Required Principal and Interest and Carrying Amount of PCI Loans Receivable | The outstanding contractually required principal and interest and the carrying amount of these loans included in the balance sheet amounts of loans receivable at December 31, 2017 and 2016 are as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Contractually required principal and interest: Real estate loans $ 16,360 $ 25,013 Commercial loans 3,501 9,703 Outstanding contractually required principal and interest $ 19,861 $ 34,716 Gross carrying amount included in loans receivable $ 15,598 $ 26,907 |
Schedule of Changes in Accretable Yield for the PCI Loans | The changes in accretable yield during the years ended December 31, 2017, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Accretable yield, beginning balance $ 4,261 $ 2,594 $ 4,977 Additions 371 4,124 — Accretion (3,442 ) (3,092 ) (4,023 ) Reclassification from nonaccretable to accretable yield 2,108 646 1,805 Disposals (505 ) (11 ) (165 ) Accretable yield, ending balance $ 2,793 $ 4,261 $ 2,594 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Real Estate [Abstract] | |
Summary of Other Real Estate Owned Activity | Other real estate owned activity was as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Beginning balance $ 6,077 $ 5,177 $ 8,423 Acquired through business acquisition 2,282 2,962 — Loans transferred to OREO 6,585 470 743 Premises transferred to OREO 276 2,215 — Net OREO gains (losses) and valuation adjustments (850 ) (1,427 ) (108 ) Sales of OREO (5,179 ) (3,320 ) (3,881 ) Ending balance $ 9,191 $ 6,077 $ 5,177 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at December 31, 2017 and 2016 consisted of the following: December 31, December 31, (Dollars in thousands) 2017 2016 Land $ 10,534 $ 6,844 Buildings 45,841 30,646 Leasehold improvements 4,928 4,667 Furniture, fixtures and equipment 13,015 11,112 74,318 53,269 Accumulated depreciation (11,457 ) (7,809 ) $ 62,861 $ 45,460 |
Schedule of Operating Leases Rent Commitments | Rent commitments at December 31, 2017, before considering renewal options that generally are present, were as follows: (Dollars in thousands) 2018 $ 1,866 2019 1,479 2020 1,465 2021 653 2022 203 Thereafter 303 $ 5,969 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Goodwill and intangible assets consist of the following: December 31 December 31, (Dollars in thousands) 2017 2016 Goodwill $ 44,126 $ 28,810 December 31, 2017 December 31, 2016 Gross Carrying Accumulated Net Carrying Gross Carrying Accumulated Net Carrying (Dollars in thousands) Amount Amortization Amount Amount Amortization Amount Core deposit intangibles $ 29,511 $ (11,335 ) $ 18,176 $ 21,825 $ (8,423 ) $ 13,402 Other intangible assets 1,764 (288 ) 1,476 6,006 (1,687 ) 4,319 $ 31,275 $ (11,623 ) $ 19,652 $ 27,831 $ (10,110 ) $ 17,721 |
Schedule of Changes in Goodwill and Intangible Assets by Operating Segment | The changes in goodwill and intangible assets by operating segment during the year are as follows: (Dollars in thousands) Asset December 31, 2017 Banking Factoring Management Total Beginning balance $ 36,139 $ 8,871 $ 1,521 $ 46,531 Acquired goodwill 16,340 — — 16,340 Acquired intangibles 9,478 — — 9,478 Amortization of intangibles (5,016 ) (3 ) (182 ) (5,201 ) Divestiture of intangibles — — (1,339 ) (1,339 ) Reclass of goodwill to assets held for sale (1,024 ) — — (1,024 ) Reclass of intangibles to assets held for sale (1,007 ) — — (1,007 ) Ending balance $ 54,910 $ 8,868 $ — $ 63,778 (Dollars in thousands) Asset December 31, 2016 Banking Factoring Management Total Beginning balance $ 17,482 $ 8,875 $ 1,497 $ 27,854 Acquired goodwill 12,842 — — 12,842 Acquired intangibles 8,818 — 799 9,617 Amortization of intangibles (3,003 ) (4 ) (775 ) (3,782 ) Ending balance $ 36,139 $ 8,871 $ 1,521 $ 46,531 (Dollars in thousands) Asset December 31, 2015 Banking Factoring Management Total Beginning balance $ 20,187 $ 8,870 $ — $ 29,057 Acquired goodwill — 8 2,768 2,776 Amortization of intangibles (2,705 ) (3 ) (1,271 ) (3,979 ) Ending balance $ 17,482 $ 8,875 $ 1,497 $ 27,854 |
Schedule of Future Amortization Schedule for the Company's Intangible Assets | The future amortization schedule for the Company’s intangible assets is as follows: (Dollars in thousands) 2018 $ 4,296 2019 3,735 2020 3,178 2021 2,617 2022 2,059 Thereafter 3,767 $ 19,652 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Variable Interest Entities | The Company holds investments in the subordinated notes of the following closed CLO funds: Offering Offering (Dollars in thousands) Date Amount Trinitas CLO IV, LTD (Trinitas IV) June 2, 2016 $ 406,650 Trinitas CLO V, LTD (Trinitas V) September 22, 2016 $ 409,000 Trinitas CLO VI, LTD (Trinitas VI) June 20, 2017 $ 717,100 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Summary of Deposits | Deposits at December 31, 2017 and December 31, 2016 are summarized as follows: (Dollars in thousands) December 31, 2017 December 31, 2016 Noninterest bearing demand $ 564,225 $ 363,351 Interest bearing demand 403,244 340,362 Individual retirement accounts 108,505 103,022 Money market 283,969 213,253 Savings 235,296 171,354 Certificates of deposit 837,384 756,351 Brokered deposits 188,725 68,092 Total deposits $ 2,621,348 $ 2,015,785 |
Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits | At December 31, 2017, scheduled maturities of time deposits, including certificates of deposits, individual retirement accounts and brokered deposits, are as follows: (Dollars in thousands) December 31, 2017 Within one year $ 851,311 After one but within two years 185,402 After two but within three years 45,789 After three but within four years 32,054 After four but within five years 20,058 Total $ 1,134,614 |
Borrowings and Borrowing Capa41
Borrowings and Borrowing Capacity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Customer Repurchase Agreements | Information concerning customer repurchase agreements is summarized as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Amount outstanding at end of the year $ 11,488 $ 10,490 Weighted average interest rate at end of the year 0.02 % 0.02 % Average daily balance during the year $ 12,906 $ 11,984 Weighted average interest rate during the year 0.02 % 0.02 % Maximum month-end balance during the year $ 21,041 $ 15,329 |
Schedule of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity | FHLB Advances FHLB advances are collateralized by assets, including a blanket pledge of certain loans. FHLB advances and weighted average interest rates at end of period by contractual maturity are summarized as follows: Fixed Rate Variable Rate (Dollars in thousands) Balance Outstanding Weighted Average Interest Rate Balance Outstanding Weighted Average Interest Rate 2018 $ 290,000 1.40 % $ 45,000 1.33 % 2027 — — 30,000 1.39 % $ 290,000 1.40 % $ 75,000 1.35 % |
Schedule of Information Concerning FHLB Advances | Information concerning FHLB advances is summarized as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Amount outstanding at end of the year $ 365,000 $ 230,000 Weighted average interest rate at end of the year 1.39 % 0.58 % Average daily balance during the year $ 300,451 $ 174,784 Weighted average interest rate during the year 1.05 % 0.41 % Maximum month-end balance during the year $ 385,000 $ 291,000 |
Schedule of FHLB Advances | The Company’s unused borrowing capacity with the FHLB is as follows: December 31, December 31, (Dollars in thousands) 2017 2016 Borrowing capacity $ 596,230 $ 497,147 Borrowings outstanding 365,000 230,000 Unused borrowing capacity $ 231,230 $ 267,147 |
Summary of Junior Subordinated Debentures | The following provides a summary of the Company’s junior subordinated debentures: Variable Interest Rate At (Dollars in thousands) Face Value Carrying Value Maturity Date Interest Rate December 31, 2017 National Bancshares Capital Trust II $ 15,464 $ 12,861 September 2033 LIBOR + 3.00% 4.59% National Bancshares Capital Trust III 17,526 12,389 July 2036 LIBOR + 1.64% 3.00% ColoEast Capital Trust I 5,155 3,417 September 2035 LIBOR + 1.60% 3.29% ColoEast Capital Trust II 6,700 4,485 March 2037 LIBOR + 1.79% 3.48% Valley Bancorp Statutory Trust I 3,093 2,844 September 2032 LIBOR + 3.40% 5.07% Valley Bancorp Statutory Trust II 3,093 2,627 July 2034 LIBOR + 2.75% 4.35% $ 51,031 $ 38,623 |
Pledged Securities | |
Schedule of Customer Repurchase Agreements | Customer repurchase agreements are secured by pledged securities with carrying amounts as follows: December 31, December 31, (Dollars in thousands) 2017 2016 U.S. Government agency obligations $ 13,460 $ 10,488 Mortgage-backed securities, residential — 2,998 $ 13,460 $ 13,486 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Income tax expense for the years ended December 31, 2017, 2016, and 2015 consisted of the following: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Income tax expense: Current $ 14,714 $ 10,922 $ 8,701 Deferred 10,174 1,941 666 Change in valuation allowance for deferred tax asset (10 ) (54 ) (946 ) Income tax expense $ 24,878 $ 12,809 $ 8,421 |
Summary of Effective Income Tax Rate Reconciliation | Effective tax rates differ from federal statutory rates applied to income before income taxes due to the following: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Tax provision computed at federal statutory rate $ 21,384 $ 11,728 $ 13,144 Effect of: State taxes, net 1,112 852 1,444 Tax reform impact (1) 2,984 — — Change in effective tax rate — — (142 ) Bargain purchase gain — — (5,291 ) Transaction costs — 325 — Bank-owned life insurance (246 ) (201 ) (158 ) Tax exempt interest (545 ) (129 ) (119 ) Change in valuation allowance for deferred tax asset (10 ) (54 ) (946 ) Other 199 288 489 Income tax expense $ 24,878 $ 12,809 $ 8,421 (1) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $2,984,000 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. |
Significant Components of Deferred Tax Assets and Liabilities | 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 as of December 31, 2017 and 2016 are as follows: (Dollars in thousands) 2017 2016 Deferred tax assets Federal net operating loss carryforwards $ 7,180 $ 13,669 State net operating loss carryforwards 1,338 1,493 Acquired loan basis 1,159 4,888 Other real estate owned 394 2,788 AMT credit carryforward 2,855 2,855 Allowance for loan losses 4,825 4,853 Unrealized loss on securities available for sale 176 163 Other 1,218 2,562 Total deferred tax assets 19,145 33,271 Deferred tax liabilities Goodwill and intangible assets 2,233 4,558 Fair value adjustment on junior subordinated debentures 2,792 4,735 Premises and equipment 2,273 3,310 Installment gain on sale of subsidiary 2,230 — Other 396 1,606 Total deferred tax liabilities 9,924 14,209 Net deferred tax asset before valuation allowance 9,221 19,062 Valuation allowance (262 ) (237 ) Net deferred tax asset $ 8,959 $ 18,825 |
Off-Balance Sheet Loan Commit43
Off-Balance Sheet Loan Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments with Off-Balance Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows: December 31, 2017 December 31, 2016 Fixed Variable Fixed Variable (Dollars in thousands) Rate Rate Rate Rate Commitments to make loans $ — $ — $ 7,345 $ 7,580 Unused lines of credit $ 133,634 $ 242,236 $ 109,611 $ 145,475 Standby letters of credit $ 1,998 $ 8,169 $ 2,547 $ 4,706 Mortgage warehouse commitments $ 9,411 $ 230,221 $ 14,387 $ 219,560 |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on a Recurring Basis | There were no liabilities measured at fair value on a recurring basis at December 31, 2017 and 2016. (Dollars in thousands) Fair Value Measurements Using Total December 31, 2017 Level 1 Level 2 Level 3 Fair Value Securities available for sale U.S. Government agency obligations $ — $ 109,890 $ — $ 109,890 U.S. Treasury notes — 1,934 — 1,934 Mortgage-backed securities, residential — 33,663 — 33,663 Asset backed securities — 11,845 — 11,845 State and municipal — 74,391 — 74,391 Corporate bonds — 15,320 — 15,320 SBA pooled securities — 3,560 — 3,560 Mutual fund 5,006 — — 5,006 $ 5,006 $ 250,603 $ — $ 255,609 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2016 Level 1 Level 2 Level 3 Fair Value Securities available for sale U.S. Government agency obligations $ — $ 180,942 $ — $ 180,942 Mortgage-backed securities, residential — 24,990 — 24,990 Asset backed securities — 12,902 — 12,902 State and municipal — 26,637 — 26,637 Corporate bonds — 27,390 — 27,390 SBA pooled securities — 157 — 157 Mutual fund 2,011 — — 2,011 $ 2,011 $ 273,018 $ — $ 275,029 |
Fair Value of Assets Measured on Non-recurring Basis | There were no liabilities measured at fair value on a non-recurring basis at December 31, 2017 and 2016 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2017 Level 1 Level 2 Level 3 Fair Value Impaired loans Commercial real estate $ — $ — $ 42 $ 42 1-4 family residential properties — — 85 85 Commercial — — 7,785 7,785 Factored receivables — — 3,777 3,777 Consumer — — 191 191 Other real estate owned (1) Commercial — — 138 138 Construction, land development, land — — 202 202 $ — $ — $ 12,220 $ 12,220 (Dollars in thousands) Fair Value Measurements Using Total December 31, 2016 Level 1 Level 2 Level 3 Fair Value Impaired loans Commercial real estate $ — $ — $ 417 $ 417 Construction, land development, land — — 252 252 1-4 family residential properties — — 7 7 Commercial — — 12,921 12,921 Factored receivables — — 1,630 1,630 PCI — — 170 170 Other real estate owned (1) Commercial — — 698 698 1-4 family residential properties — — 485 485 Construction, land development, land — — 467 467 $ — $ — $ 17,047 $ 17,047 (1) |
Estimated Fair Value of Company's Financial Assets and Financial Liabilities | The estimated fair values of the Company’s financial instruments not measured at fair value on a recurring or non-recurring basis at December 31, 2017 and 2016 were as follows: December 31, 2017 Carrying Fair Value Measurements Using Total (Dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 134,129 $ 134,129 $ — $ — $ 134,129 Securities - held to maturity 8,557 — — 7,527 7,527 Loans not previously presented, net 2,780,228 — — 2,800,362 2,800,362 Loans included in assets held for sale, net 68,668 — — 69,268 69,268 FHLB stock 16,006 N/A N/A N/A N/A Accrued interest receivable 15,517 15,517 — — 15,517 Financial liabilities: Deposits 2,621,348 — 2,616,034 — 2,616,034 Customer repurchase agreements 11,488 — 11,488 — 11,488 Federal Home Loan Bank advances 365,000 — 365,000 — 365,000 Subordinated notes 48,828 — 52,310 — 52,310 Junior subordinated debentures 38,623 — 41,563 — 41,563 Accrued interest payable 3,323 3,323 — — 3,323 December 31, 2016 Carrying Fair Value Measurements Using Total (Dollars in thousands) Amount Level 1 Level 2 Level 3 Fair Value Financial assets: Cash and cash equivalents $ 114,514 $ 114,514 $ — $ — $ 114,514 Securities - held to maturity 29,352 — 27,498 3,323 30,821 Loans not previously presented, net 1,996,822 — — 2,002,487 2,002,487 FHLB stock 8,430 N/A N/A N/A N/A Accrued interest receivable 12,663 12,663 — — 12,663 Financial liabilities: Deposits 2,015,785 — 2,014,922 — 2,014,922 Customer repurchase agreements 10,490 — 10,490 — 10,490 Federal Home Loan Bank advances 230,000 — 230,000 — 230,000 Subordinated notes 48,734 — 50,920 — 50,920 Junior subordinated debentures 32,740 — 32,905 — 32,905 Accrued interest payable 2,682 2,682 — — 2,682 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Loans to Principal Officers, Directors, and their Affiliates | Loans to related parties and their affiliates were as follows: Years Ended December 31, (Dollars in thousands) 2017 2016 Beginning balance $ 29,285 $ 35,765 New loans and advances 14,440 88,711 Effect of changes in composition of related parties (15,004 ) (6,018 ) Repayments (2,109 ) (89,173 ) Ending balance $ 26,612 $ 29,285 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The actual capital amounts and ratios for the Company and TBK Bank as of December 31, 2017 and 2016 are presented in the following table: To Be Well Capitalized Under Minimum for Capital Prompt Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2017 Total capital (to risk weighted assets) Triumph Bancorp, Inc. $ 436,036 13.2% $ 264,026 8.0% N/A N/A TBK Bank, SSB $ 361,068 11.4% $ 254,139 8.0% $ 317,674 10.0% Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 367,958 11.1% $ 198,019 6.0% N/A N/A TBK Bank, SSB $ 341,910 10.8% $ 190,603 6.0% $ 254,137 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 320,265 9.7% $ 148,514 4.5% N/A N/A TBK Bank, SSB $ 341,910 10.8% $ 142,952 4.5% $ 206,486 6.5% Tier 1 capital (to average assets) Triumph Bancorp, Inc. $ 367,958 11.8% $ 124,754 4.0% N/A N/A TBK Bank, SSB $ 341,910 11.1% $ 123,088 4.0% $ 153,860 5.0% As of December 31, 2016 Total capital (to risk weighted assets) Triumph Bancorp, Inc. $ 342,059 14.6% $ 187,449 8.0% N/A N/A TBK Bank, SSB $ 293,313 12.9% $ 181,640 8.0% $ 227,050 10.0% Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 277,605 11.8% $ 140,587 6.0% N/A N/A TBK Bank, SSB $ 277,593 12.2% $ 136,230 6.0% $ 181,640 8.0% Common equity Tier 1 capital (to risk weighted assets) Triumph Bancorp, Inc. $ 238,439 10.2% $ 105,440 4.5% N/A N/A TBK Bank, SSB $ 277,593 12.2% $ 102,173 4.5% $ 147,583 6.5% Tier 1 capital (to average assets) Triumph Bancorp, Inc. $ 277,605 10.9% $ 102,303 4.0% N/A N/A TBK Bank, SSB $ 277,593 11.0% $ 100,802 4.0% $ 126,002 5.0% |
Equity and Noncontrolling Int47
Equity and Noncontrolling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary of Capital Structure | The following summarizes the Company’s capital structure: Common Stock Common Stock December 31, (Dollars in thousands, except per share amounts) 2017 2016 Shares authorized 50,000,000 50,000,000 Shares issued 20,912,396 18,154,365 Treasury shares 91,951 76,118 Shares outstanding 20,820,445 18,078,247 Par value per share $ 0.01 $ 0.01 Preferred Stock Preferred Stock Preferred Stock Series A Series B December 31, December 31, (Dollars in thousands, except per share amounts) 2017 2016 2017 2016 Shares authorized 50,000 50,000 115,000 115,000 Shares issued 45,500 45,500 51,076 51,956 Shares outstanding 45,500 45,500 51,076 51,956 Par value per share $ 0.01 $ 0.01 $ 0.01 $ 0.01 Liquidation preference per share $ 100 $ 100 $ 100 $ 100 Liquidation preference amount $ 4,550 $ 4,550 $ 5,108 $ 5,196 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Changes in Company's Nonvested Restricted Stock Awards | A summary of changes in the Company’s nonvested Restricted Stock Awards (“RSAs”) under the Omnibus Incentive Plan for the year ended December 31, 2017 were as follows: Weighted Average Grant Date Nonvested RSAs Shares Fair Value Nonvested at January 1, 2017 126,644 $ 14.92 Granted 45,732 25.80 Vested (67,964 ) 16.50 Forfeited (1,636 ) 16.61 Nonvested at December 31, 2017 102,776 $ 18.68 |
Summary of Changes in Company's Stock Options | A summary of changes in the Company’s stock options under the Omnibus Incentive Plan for the year ended December 31, 2017 were as follows: Weighted Average Remaining Aggregate Weighted Average Contractual Term Intrinsic Value Stock Options Shares Exercise Price (In Years) (In Thousands) Outstanding at January 1, 2017 163,661 $ 15.87 Granted 58,729 25.80 Exercised (34,977 ) 15.87 Forfeited or expired (2,085 ) 19.69 Outstanding at December 31, 2017 185,328 $ 18.97 $ 8.57 $ 2,321 Fully vested shares and shares expected to vest at December 31, 2017 185,328 $ 18.97 8.57 $ 2,321 Shares exercisable at December 31, 2017 31,742 $ 15.87 $ 8.25 $ 496 |
Schedule of Information Related to Stock Options | Year Ended December 31, (Dollars in thousands, except per share amounts) 2017 2016 Aggregate intrinsic value of options exercised $ 251 $ — Cash received from option exercises $ 283 $ — Tax benefit realized from option exercises $ 88 $ — Weighted average fair value of options granted $ 8.71 $ 5.85 |
Fair Value of Stock Options Granted Weighted-Average Assumptions | The fair value of the stock options granted was determined using the following weighted average assumptions: 2017 2016 Risk-free interest rate 2.11 % 1.49 % Expected term 6.25 Years 6.25 Years Expected stock price volatility 29.70 % 34.96 % Dividend yield — — |
Parent Company Only Condensed49
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Only Balance Sheets | Condensed Parent Company Only Balance Sheets: December 31, December 31, (Dollars in thousands) 2017 2016 ASSETS Cash and cash equivalents $ 47,826 $ 10,222 Securities - held to maturity 8,557 3,380 Loans 11,046 984 Investment in bank subsidiary 407,050 320,629 Investment in non-bank subsidiaries 12,650 15,634 Other assets 4,880 29,149 Total assets $ 492,009 $ 379,998 LIABILITIES AND EQUITY Subordinated notes $ 48,828 $ 48,734 Junior subordinated debentures 38,623 32,740 Intercompany payables 10,169 8,500 Accrued expenses and other liabilities 2,691 1,351 Total liabilities 100,311 91,325 Stockholders' equity (1) 391,698 288,673 Total liabilities and equity $ 492,009 $ 379,998 |
Condensed Parent Company Only Statements of Income | Condensed Parent Company Only Statements of Income: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Interest income $ 1,415 $ 793 $ 718 Interest expense (5,300 ) (2,262 ) (291 ) Provision for loan losses (91 ) — — Gain on sale of subsidiary 20,860 — — Other income 1,572 2,991 1,040 Loss on intercompany sale of loans (1) — (794 ) — Salaries and employee benefits (5,686 ) (581 ) (2,781 ) Other expense (3,138 ) (1,940 ) (3,099 ) Income (loss) before income tax and undistributed subsidiary income 9,632 (1,793 ) (4,413 ) Income tax (expense) benefit (3,087 ) (487 ) 700 Equity in undistributed subsidiary income 30,347 22,308 32,846 Net income 36,892 20,028 29,133 Dividends on preferred stock (774 ) (887 ) (780 ) Net income available to common stockholders $ 36,118 $ 19,141 $ 28,353 Comprehensive income attributable to Parent $ 35,900 $ 20,147 $ 28,459 |
Condensed Parent Company Only Statements of Cash Flows | Condensed Parent Company Only Statements of Cash Flows: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Cash flows from operating activities: Net income $ 36,892 $ 20,028 $ 29,133 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed subsidiary income (30,347 ) (22,308 ) (32,846 ) Net accretion of securities (800 ) (174 ) — Amortization of junior subordinated debentures 413 325 67 Amortization of subordinated notes issuance costs 94 23 — Loss on intercompany sale of loans (1) — 794 — Loss on sale of loans — 80 — Income from CLO warehouse investments (2,226 ) (3,184 ) (1,151 ) Change in other assets 6,689 3,293 980 Change in accrued expenses and other liabilities 2,950 (5,279 ) 10,316 Net cash provided by (used in) operating activities 13,665 (6,402 ) 6,499 Cash flows from investing activities: Investment in subsidiaries (6,199 ) 14,295 325 Purchases of securities held to maturity (5,092 ) (3,342 ) — Proceeds from maturities, calls, and pay downs of securities held to maturity 715 136 — Purchases of loans (shared national credits) — — (18,601 ) Proceeds from sale of loans — 16,058 — Net change in loans (10,062 ) 539 146 Net cash paid for CLO warehouse investments (10,000 ) (25,000 ) (20,500 ) Net proceeds from CLO warehouse investments 30,000 25,500 2,450 Cash used in acquisition of subsidiaries, net (40,075 ) (69,946 ) — Net cash provided by (used in) investing activities (40,713 ) (41,760 ) (36,180 ) Cash flows from financing activities: Proceeds from issuance of subordinated notes, net — 48,676 — Issuance of common stock, net of expenses 65,509 — — Dividends on preferred stock (774 ) (887 ) (780 ) Redemption of TARP preferred stock — (10,500 ) — Purchase of Treasury Stock (366 ) (654 ) (343 ) Stock option exercises 283 — — Net cash provided by (used in) financing activities 64,652 36,635 (1,123 ) Net increase (decrease) in cash and cash equivalents 37,604 (11,527 ) (30,804 ) Cash and cash equivalents at beginning of period 10,222 21,749 52,553 Cash and cash equivalents at end of period $ 47,826 $ 10,222 $ 21,749 (1) During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016: Year Ended December 31, (Dollars in thousands) 2016 Parent company stockholders' equity $ 288,673 Parent company loss on intercompany sale of loans 794 TBK Bank discount accretion (122 ) Consolidated stockholders' equity $ 289,345 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Factors Used in Computation of Earnings Per Share | The factors used in the earnings per share computation follow: Years Ended December 31, (Dollars in thousands) 2017 2016 2015 Basic Net income to common stockholders $ 35,446 $ 19,813 $ 28,353 Weighted average common shares outstanding 19,133,745 17,856,828 17,720,479 Basic earnings per common share $ 1.85 $ 1.11 $ 1.60 Diluted Net income to common stockholders $ 35,446 $ 19,813 $ 28,353 Dilutive effect of preferred stock 774 — 780 Net income to common stockholders - diluted $ 36,220 $ 19,813 $ 29,133 Weighted average common shares outstanding 19,133,745 17,856,828 17,720,479 Dilutive effects of: Restricted stock 68,079 110,565 79,821 Assumed exercises of stock options 45,653 3,128 — Assumed exercises of stock warrants 82,567 83,010 48,238 Assumed conversion of Preferred A 315,773 — 315,773 Assumed conversion of Preferred B 354,471 — 360,578 Average shares and dilutive potential common shares 20,000,288 18,053,531 18,524,889 Diluted earnings per common share $ 1.81 $ 1.10 $ 1.57 Shares that were not considered in computing diluted earnings per common share because they were antidilutive are as follows: Years Ended December 31, 2017 2016 2015 Shares assumed to be converted from Preferred Stock Series A — 315,773 — Shares assumed to be converted from Preferred Stock Series B — 360,578 — Restricted stock awards — — — Stock options 57,926 — — |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | (Dollars in thousands) Asset Year Ended December 31, 2017 Banking Factoring Management Corporate Consolidated Total interest income $ 130,480 $ 45,346 $ 3 $ 1,395 $ 177,224 Intersegment interest allocations 8,023 (8,023 ) — — — Total interest expense 16,240 — — 5,300 21,540 Net interest income (expense) 122,263 37,323 3 (3,905 ) 155,684 Provision for loan losses 9,310 2,227 — 91 11,628 Net interest income (expense) after provision 112,953 35,096 3 (3,996 ) 144,056 Gain on sale of subsidiary — — — 20,860 20,860 Other noninterest income 14,336 2,737 1,717 1,006 19,796 Noninterest expense 90,632 22,641 1,456 8,885 123,614 Operating income (loss) $ 36,657 $ 15,192 $ 264 $ 8,985 $ 61,098 (Dollars in thousands) Asset Year Ended December 31, 2016 Banking Factoring Management Corporate Consolidated Total interest income $ 90,823 $ 32,824 $ 145 $ 700 $ 124,492 Intersegment interest allocations 4,583 (4,583 ) — — — Total interest expense 9,872 — — 2,262 12,134 Net interest income (expense) 85,534 28,241 145 (1,562 ) 112,358 Provision for loan losses 6,239 454 — — 6,693 Net interest income (expense) after provision 79,295 27,787 145 (1,562 ) 105,665 Noninterest income 9,077 2,256 6,632 2,991 20,956 Noninterest expense 65,795 19,551 5,234 2,532 93,112 Operating income (loss) $ 22,577 $ 10,492 $ 1,543 $ (1,103 ) $ 33,509 (Dollars in thousands) Asset Year Ended December 31, 2015 Banking Factoring Management Corporate Consolidated Total interest income $ 65,831 $ 32,103 $ 108 $ 718 $ 98,760 Intersegment interest allocations 3,144 (3,144 ) — — — Total interest expense 6,978 — 10 1,121 8,109 Net interest income (expense) 61,997 28,959 98 (403 ) 90,651 Provision for loan losses 3,226 1,303 — — 4,529 Net interest income (expense) after provision 58,771 27,656 98 (403 ) 86,122 Bargain purchase gain — — 15,117 — 15,117 Other noninterest income 9,644 1,739 5,757 1,040 18,180 Noninterest expense 51,249 17,871 6,866 5,879 81,865 Operating income (loss) $ 17,166 $ 11,524 $ 14,106 $ (5,242 ) $ 37,554 (Dollars in thousands) Asset December 31, 2017 Banking Factoring Management Corporate Eliminations Consolidated Total assets $ 3,444,322 $ 360,922 $ — $ 504,656 $ (810,867 ) $ 3,499,033 Gross loans held for investment $ 2,784,147 $ 346,293 $ — $ 11,936 $ (331,520 ) $ 2,810,856 (Dollars in thousands) Asset December 31, 2016 Banking Factoring Management Corporate Eliminations Consolidated Total assets $ 2,588,509 $ 223,994 $ 4,879 $ 391,745 $ (568,060 ) $ 2,641,067 Gross loans held for investment $ 1,961,552 $ 212,784 $ — $ 1,866 $ (148,578 ) $ 2,027,624 |
Quarterly Financial Data (Una52
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | The following presents quarterly financial data for the years ended December 31, 2017 and 2016. Year Ended December 31, 2017 Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 52,217 $ 45,137 $ 43,538 $ 36,332 Interest expense 6,421 5,625 4,981 4,513 Net interest income 45,796 39,512 38,557 31,819 Provision for loan losses 1,931 572 1,447 7,678 Net interest income after provision 43,865 38,940 37,110 24,141 Gain on sale of subsidiary — — — 20,860 Other noninterest income 3,998 4,171 5,202 6,425 Noninterest income 3,998 4,171 5,202 27,285 Noninterest expense 33,231 28,225 27,321 34,837 Net income before income taxes 14,632 14,886 14,991 16,589 Income tax expense 8,327 5,104 5,331 6,116 Net income 6,305 9,782 9,660 10,473 Dividends on preferred stock (194 ) (195 ) (193 ) (192 ) Net income available to common stockholders $ 6,111 $ 9,587 $ 9,467 $ 10,281 Earnings per common share Basic $ 0.29 $ 0.48 $ 0.53 $ 0.57 Diluted $ 0.29 $ 0.47 $ 0.51 $ 0.55 Year Ended December 31, 2016 Fourth Third Second First (Dollars in thousands) Quarter Quarter Quarter Quarter Interest income $ 37,774 $ 33,471 $ 28,354 $ 24,893 Interest expense 4,230 3,053 2,447 2,404 Net interest income 33,544 30,418 25,907 22,489 Provision for loan losses 2,446 2,819 1,939 (511 ) Net interest income after provision 31,098 27,599 23,968 23,000 Noninterest income 6,208 6,099 3,668 4,981 Noninterest expense 26,911 25,792 20,331 20,078 Net income before income taxes 10,395 7,906 7,305 7,903 Income tax expense 4,134 3,099 2,679 2,897 Net income 6,261 4,807 4,626 5,006 Dividends on preferred stock (197 ) (301 ) (195 ) (194 ) Net income available to common stockholders $ 6,064 $ 4,506 $ 4,431 $ 4,812 Earnings per common share Basic $ 0.34 $ 0.25 $ 0.25 $ 0.27 Diluted $ 0.33 $ 0.25 $ 0.25 $ 0.27 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalent maturity period | 90 days | |
Mortgage loans held for sale | $ 0 | $ 0 |
Number of days within which accrual of interest income discontinues | 90 days | |
Period of consumer loans charged off | 120 days | |
Useful life of assets | 60 months | |
Goodwill impairment | $ 0 | 0 |
Minimum probability for recognizing tax benefit | 50.00% | |
Unrecognized tax benefits | $ 0 | $ 0 |
Contractual obligation | 5,969,000 | |
Operating Lease Commitments | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Contractual obligation | $ 5,969,000 | |
Buildings and Improvements | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of assets | 30 years | |
Buildings and Improvements | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of assets | 40 years | |
Furniture, Fixtures and Equipment | Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of assets | 3 years | |
Furniture, Fixtures and Equipment | Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Useful life of assets | 10 years |
Business Combinations and Div54
Business Combinations and Divestitures - Additional Information (Details) | Jan. 19, 2018 | Dec. 09, 2017USD ($)locations | Oct. 06, 2017USD ($)Branch | Mar. 31, 2017USD ($) | Sep. 01, 2016USD ($) | Aug. 01, 2016USD ($) | Mar. 03, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | ||||||||||
Recorded investment, without valuation allowance | $ 24,720,000 | $ 21,528,000 | ||||||||
Loans | 2,810,856,000 | 2,027,624,000 | ||||||||
Goodwill | 44,126,000 | 28,810,000 | ||||||||
Business acquisition, related costs | $ 400,000 | |||||||||
Origination fees | 2,944,000 | 2,772,000 | ||||||||
PCI Loans | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loans | 15,598,000 | 26,907,000 | ||||||||
Valley Bank & Trust | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Number of locations | locations | 7 | |||||||||
Valley Bancorp, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of acquisition completion date | Dec. 9, 2017 | |||||||||
Goodwill | $ 10,523,000 | |||||||||
Business acquisition, related costs | 1,251,000 | |||||||||
Acquired loans at acquisition | 171,199,000 | |||||||||
Intangible asset | 6,072,000 | |||||||||
Total consideration transferred | 40,075,000 | |||||||||
Valley Bancorp, Inc. | PCI Loans | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired loans at acquisition | 1,453,000 | |||||||||
Valley Bancorp, Inc. | Banking | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 10,523,000 | |||||||||
Finite lived intangible assets, Amortization period | 10 years | |||||||||
Independent Bank - Colorado Branches | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Date of acquisition completion date | Oct. 6, 2017 | |||||||||
Goodwill | $ 5,817,000 | |||||||||
Finite lived intangible assets, Amortization period | 10 years | |||||||||
Business acquisition, related costs | 437,000 | |||||||||
Number of branches acquired | Branch | 9 | |||||||||
Aggregate deposit premium | $ 6,771,000 | |||||||||
Aggregate deposit premium, percentage | 4.20% | |||||||||
Acquired loans at acquisition | $ 95,794,000 | |||||||||
Intangible asset | 3,255,000 | |||||||||
Independent Bank - Colorado Branches | PCI Loans | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired loans at acquisition | $ 0 | |||||||||
Southern Transportation Insurance Agency, Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid for business acquisition | $ 2,150,000 | |||||||||
Southern Transportation Insurance Agency, Ltd. | Banking | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 570,000 | |||||||||
Finite lived intangible assets, Amortization period | 8 years | |||||||||
Intangible asset | $ 1,580,000 | |||||||||
ColoEast Bankshares, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | 12,272,000 | |||||||||
Business acquisition, related costs | 1,618,000 | |||||||||
Acquired loans at acquisition | $ 460,775,000 | |||||||||
Cash paid for business acquisition | $ 70,000,000 | 70,000,000 | ||||||||
Intangible asset | $ 7,238,000 | |||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||
TARP Preferred stock, redemption date | Aug. 31, 2016 | |||||||||
Total consideration transferred | $ 80,500,000 | |||||||||
ColoEast Bankshares, Inc. | Preferred Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Preferred stock issued | $ 10,500,000 | 10,500,000 | ||||||||
ColoEast Bankshares, Inc. | PCI Loans | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired loans at acquisition | 19,293,000 | |||||||||
ColoEast Bankshares, Inc. | Banking | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 12,272,000 | |||||||||
Finite lived intangible assets, Amortization period | 10 years | |||||||||
Doral Money Acquisition | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, related costs | $ 243,000 | |||||||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||||||||
CLO management contract acquired - Assets under management | $ 700,000,000 | |||||||||
Total consideration transferred | $ 135,864,000 | $ 135,864,000 | ||||||||
Substandard | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loans | 59,679,000 | $ 56,116,000 | ||||||||
Triumph Healthcare Finance | Loans Held for Sale | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Recorded investment, without valuation allowance | 245,000 | |||||||||
Triumph Healthcare Finance | Substandard | Loans Held for Sale | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Loans | 5,431,000 | |||||||||
Triumph Healthcare Finance | Subsequent Event | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Disposal of group agreement date | Jan. 19, 2018 | |||||||||
Triumph Capital Advisors, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Portion of consideration received | $ 10,500,000 | |||||||||
Percentage of annual earn-out payment | 3.00% | |||||||||
Maximum earn-out amount | $ 2,500,000 | |||||||||
Contingent consideration asset, estimated fair value | 1,623,000 | $ 1,737,000 | ||||||||
Triumph Capital Advisors, LLC | Loans Receivable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Portion of consideration received | $ 10,500,000 | |||||||||
Term credit facility, maturity date | Mar. 31, 2023 | |||||||||
Origination fees | $ 25,000 | |||||||||
Triumph Capital Advisors, LLC | Interest Rate Floor | Loans Receivable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Term credit facility, interest rate | 5.50% |
Business Combinations and Div55
Business Combinations and Divestitures - Summary of Assets Held for Sale and Consideration Received and Gain on Sale (Details) - USD ($) | Mar. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Total carrying amount | $ 71,362,000 | ||
Gain on sale of subsidiary, net of transaction costs | $ 20,860,000 | 20,860,000 | |
Triumph Healthcare Finance | |||
Business Acquisition [Line Items] | |||
Loans | 70,771,000 | ||
Allowance for loan and lease losses | (2,103,000) | ||
Loans, net of allowance for loan and lease losses | 68,668,000 | ||
Premises and equipment, net | 33,000 | ||
Goodwill | 1,024,000 | ||
Intangible assets, net | 1,007,000 | ||
Other assets | 630,000 | ||
Total carrying amount | 71,362,000 | ||
Triumph Capital Advisors, LLC | |||
Business Acquisition [Line Items] | |||
Cash | $ 10,554,000 | 10,554,000 | |
Loan receivable | 10,500,000 | 10,500,000 | |
Revenue share | 1,623,000 | 1,623,000 | $ 1,737,000 |
Total consideration received | 22,677,000 | $ 22,677,000 | |
Carrying value of TCA membership interest | 1,417,000 | ||
Gain on sale of subsidiary | 21,260,000 | ||
Transaction costs | 400,000 | ||
Gain on sale of subsidiary, net of transaction costs | $ 20,860,000 |
Business Combinations and Div56
Business Combinations and Divestitures - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) | Dec. 09, 2017 | Oct. 06, 2017 | Aug. 01, 2016 | Mar. 03, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 |
Liabilities assumed: | |||||||
Goodwill | $ 28,810,000 | $ 44,126,000 | |||||
Bargain purchase gain | $ (15,117,000) | ||||||
Valley Bancorp, Inc. | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | $ 38,473,000 | ||||||
Securities | 97,687,000 | ||||||
Loans | 171,199,000 | ||||||
FHLB stock | 315,000 | ||||||
Premises and equipment | 6,238,000 | ||||||
Other real estate owned | 2,282,000 | ||||||
Intangible assets | 6,072,000 | ||||||
Bank-owned life insurance | 7,153,000 | ||||||
Other assets | 1,882,000 | ||||||
Total Assets Acquired | 331,301,000 | ||||||
Liabilities assumed: | |||||||
Deposits | 293,398,000 | ||||||
Junior subordinated debentures | 5,470,000 | ||||||
Other liabilities | 2,881,000 | ||||||
Total liabilities | 301,749,000 | ||||||
Fair value of net assets acquired | 29,552,000 | ||||||
Consideration transferred | 40,075,000 | ||||||
Goodwill | $ 10,523,000 | ||||||
Independent Bank - Colorado Branches | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | $ 1,611,000 | ||||||
Loans | 95,794,000 | ||||||
Premises and equipment | 7,524,000 | ||||||
Intangible assets | 3,255,000 | ||||||
Other assets | 1,644,000 | ||||||
Total Assets Acquired | 109,828,000 | ||||||
Liabilities assumed: | |||||||
Deposits | 160,702,000 | ||||||
Other liabilities | 249,000 | ||||||
Total liabilities | 160,951,000 | ||||||
Fair value of net assets acquired | (51,123,000) | ||||||
Cash received from seller, net of $6,771 deposit premium | 45,306,000 | ||||||
Goodwill | $ 5,817,000 | ||||||
ColoEast Bankshares, Inc. | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | 57,671,000 | ||||||
Securities | 161,693,000 | ||||||
Loans | 460,775,000 | ||||||
FHLB and Federal Reserve Bank stock | 550,000 | ||||||
Premises and equipment | 23,940,000 | ||||||
Other real estate owned | 2,962,000 | ||||||
Intangible assets | 7,238,000 | ||||||
Bank-owned life insurance | 6,400,000 | ||||||
Deferred income taxes | 4,441,000 | ||||||
Other assets | 10,022,000 | ||||||
Total Assets Acquired | 735,692,000 | ||||||
Liabilities assumed: | |||||||
Deposits | 652,952,000 | ||||||
Junior subordinated debentures | 7,728,000 | ||||||
Other liabilities | 6,784,000 | ||||||
Total liabilities | 667,464,000 | ||||||
Fair value of net assets acquired | 68,228,000 | ||||||
Cash paid | $ 70,000,000 | 70,000,000 | |||||
Consideration transferred | 80,500,000 | ||||||
Goodwill | 12,272,000 | ||||||
ColoEast Bankshares, Inc. | Initial Values Recorded at Acquisition Date | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | 57,671,000 | ||||||
Securities | 161,693,000 | ||||||
Loans | 460,775,000 | ||||||
FHLB and Federal Reserve Bank stock | 550,000 | ||||||
Premises and equipment | 23,940,000 | ||||||
Other real estate owned | 3,105,000 | ||||||
Intangible assets | 7,238,000 | ||||||
Bank-owned life insurance | 6,400,000 | ||||||
Deferred income taxes | 4,511,000 | ||||||
Other assets | 10,022,000 | ||||||
Total Assets Acquired | 735,905,000 | ||||||
Liabilities assumed: | |||||||
Deposits | 652,952,000 | ||||||
Junior subordinated debentures | 7,728,000 | ||||||
Other liabilities | 6,784,000 | ||||||
Total liabilities | 667,464,000 | ||||||
Fair value of net assets acquired | 68,441,000 | ||||||
Cash paid | 70,000,000 | ||||||
Consideration transferred | 80,500,000 | ||||||
Goodwill | 12,059,000 | ||||||
ColoEast Bankshares, Inc. | Measurement Period Adjustments | |||||||
Assets acquired: | |||||||
Other real estate owned | (143,000) | ||||||
Deferred income taxes | (70,000) | ||||||
Total Assets Acquired | (213,000) | ||||||
Liabilities assumed: | |||||||
Fair value of net assets acquired | (213,000) | ||||||
Goodwill | 213,000 | ||||||
ColoEast Bankshares, Inc. | Preferred Stock | |||||||
Liabilities assumed: | |||||||
TARP Preferred Stock assumed | 10,500,000 | $ 10,500,000 | |||||
ColoEast Bankshares, Inc. | Preferred Stock | Initial Values Recorded at Acquisition Date | |||||||
Liabilities assumed: | |||||||
TARP Preferred Stock assumed | $ 10,500,000 | ||||||
Doral Money Acquisition | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | 8,273,000 | ||||||
Loans | 37,665,000 | ||||||
Other assets | 772,000 | ||||||
Total Assets Acquired | 151,646,000 | ||||||
CLO Securities | 98,316,000 | ||||||
Prepaid corporate income tax | 4,702,000 | ||||||
Liabilities assumed: | |||||||
Other liabilities | 2,000 | ||||||
Total liabilities | 665,000 | ||||||
Deferred tax liability | 663,000 | ||||||
Fair value of net assets acquired | 150,981,000 | ||||||
Consideration transferred | $ 135,864,000 | 135,864,000 | |||||
Bargain purchase gain | (15,117,000) | ||||||
Doral Money Acquisition | CLO Management Contracts | |||||||
Assets acquired: | |||||||
Intangible assets | 1,918,000 | ||||||
Doral Money Acquisition | Initial Values Recorded at Acquisition Date | |||||||
Assets acquired: | |||||||
Cash and cash equivalents | 8,273,000 | ||||||
Loans | 36,765,000 | ||||||
Other assets | 772,000 | ||||||
Total Assets Acquired | 149,058,000 | ||||||
CLO Securities | 98,316,000 | ||||||
Prepaid corporate income tax | 3,014,000 | ||||||
Liabilities assumed: | |||||||
Other liabilities | 22,000 | ||||||
Total liabilities | 685,000 | ||||||
Deferred tax liability | 663,000 | ||||||
Fair value of net assets acquired | 148,373,000 | ||||||
Consideration transferred | 135,864,000 | ||||||
Bargain purchase gain | (12,509,000) | ||||||
Doral Money Acquisition | Initial Values Recorded at Acquisition Date | CLO Management Contracts | |||||||
Assets acquired: | |||||||
Intangible assets | $ 1,918,000 | ||||||
Doral Money Acquisition | Measurement Period Adjustments | |||||||
Assets acquired: | |||||||
Loans | 900,000 | ||||||
Total Assets Acquired | 2,588,000 | ||||||
Prepaid corporate income tax | 1,688,000 | ||||||
Liabilities assumed: | |||||||
Other liabilities | (20,000) | ||||||
Total liabilities | (20,000) | ||||||
Fair value of net assets acquired | 2,608,000 | ||||||
Bargain purchase gain | $ (2,608,000) |
Business Combinations and Div57
Business Combinations and Divestitures - Summary of Acquired Loans (Details) - USD ($) | Dec. 09, 2017 | Oct. 06, 2017 | Aug. 01, 2016 |
Valley Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 171,199,000 | ||
Valley Bancorp, Inc. | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 169,746,000 | ||
Valley Bancorp, Inc. | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 1,453,000 | ||
Valley Bancorp, Inc. | Construction, land development, land | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 20,969,000 | ||
Valley Bancorp, Inc. | Construction, land development, land | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 19,770,000 | ||
Valley Bancorp, Inc. | Construction, land development, land | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 1,199,000 | ||
Valley Bancorp, Inc. | 1-4 family residential properties | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 26,264,000 | ||
Valley Bancorp, Inc. | 1-4 family residential properties | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 26,264,000 | ||
Valley Bancorp, Inc. | Farmland | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 16,934,000 | ||
Valley Bancorp, Inc. | Farmland | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 16,934,000 | ||
Valley Bancorp, Inc. | Commercial | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 31,893,000 | ||
Valley Bancorp, Inc. | Commercial | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 31,893,000 | ||
Valley Bancorp, Inc. | Consumer | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 1,612,000 | ||
Valley Bancorp, Inc. | Consumer | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 1,612,000 | ||
Valley Bancorp, Inc. | Commercial real estate | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 73,527,000 | ||
Valley Bancorp, Inc. | Commercial real estate | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 73,273,000 | ||
Valley Bancorp, Inc. | Commercial real estate | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 254,000 | ||
Independent Bank - Colorado Branches | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 95,794,000 | ||
Independent Bank - Colorado Branches | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 95,794,000 | ||
Independent Bank - Colorado Branches | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 0 | ||
Independent Bank - Colorado Branches | Construction, land development, land | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 537,000 | ||
Independent Bank - Colorado Branches | 1-4 family residential properties | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 6,986,000 | ||
Independent Bank - Colorado Branches | Farmland | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 31,490,000 | ||
Independent Bank - Colorado Branches | Commercial | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 43,104,000 | ||
Independent Bank - Colorado Branches | Consumer | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 295,000 | ||
Independent Bank - Colorado Branches | Commercial real estate | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 13,382,000 | ||
ColoEast Bankshares, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 460,775,000 | ||
ColoEast Bankshares, Inc. | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 441,482,000 | ||
ColoEast Bankshares, Inc. | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 19,293,000 | ||
ColoEast Bankshares, Inc. | Construction, land development, land | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 61,651,000 | ||
ColoEast Bankshares, Inc. | Construction, land development, land | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 58,718,000 | ||
ColoEast Bankshares, Inc. | Construction, land development, land | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 2,933,000 | ||
ColoEast Bankshares, Inc. | 1-4 family residential properties | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 36,503,000 | ||
ColoEast Bankshares, Inc. | 1-4 family residential properties | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 36,412,000 | ||
ColoEast Bankshares, Inc. | 1-4 family residential properties | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 91,000 | ||
ColoEast Bankshares, Inc. | Farmland | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 101,210,000 | ||
ColoEast Bankshares, Inc. | Farmland | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 100,977,000 | ||
ColoEast Bankshares, Inc. | Farmland | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 233,000 | ||
ColoEast Bankshares, Inc. | Factored receivables | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 694,000 | ||
ColoEast Bankshares, Inc. | Factored receivables | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 694,000 | ||
ColoEast Bankshares, Inc. | Consumer | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 6,507,000 | ||
ColoEast Bankshares, Inc. | Consumer | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 6,507,000 | ||
ColoEast Bankshares, Inc. | Commercial real estate | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 97,476,000 | ||
ColoEast Bankshares, Inc. | Commercial real estate | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 86,569,000 | ||
ColoEast Bankshares, Inc. | Commercial real estate | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 10,907,000 | ||
ColoEast Bankshares, Inc. | Commercial | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 156,734,000 | ||
ColoEast Bankshares, Inc. | Commercial | Non-Purchase Credit Impaired Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | 151,605,000 | ||
ColoEast Bankshares, Inc. | Commercial | PCI Loans | |||
Business Acquisition [Line Items] | |||
Acquired loans at acquisition | $ 5,129,000 |
Business Combinations and Div58
Business Combinations and Divestitures - Schedule of Loans Acquired in Business Combination (Details) - USD ($) | Dec. 09, 2017 | Oct. 06, 2017 | Aug. 01, 2016 |
Valley Bancorp, Inc. | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Fair value at acquisition | $ 171,199,000 | ||
Valley Bancorp, Inc. | PCI Loans | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Contractually required principal and interest payments | 2,599,000 | ||
Contractual cash flows not expected to be collected (nonaccretable difference) | 775,000 | ||
Expected cash flows at acquisition | 1,824,000 | ||
Interest component of expected cash flows (accretable yield) | 371,000 | ||
Fair value at acquisition | 1,453,000 | ||
Valley Bancorp, Inc. | Non-PCI | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Contractually required principal and interest payments | 214,139,000 | ||
Contractual cash flows not expected to be collected | 3,646,000 | ||
Fair value at acquisition | $ 169,746,000 | ||
Independent Bank - Colorado Branches | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Fair value at acquisition | $ 95,794,000 | ||
Independent Bank - Colorado Branches | PCI Loans | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Fair value at acquisition | 0 | ||
Independent Bank - Colorado Branches | Non-PCI | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Contractually required principal and interest payments | 122,498,000 | ||
Contractual cash flows not expected to be collected | 3,415,000 | ||
Fair value at acquisition | $ 95,794,000 | ||
ColoEast Bankshares, Inc. | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Fair value at acquisition | $ 460,775,000 | ||
ColoEast Bankshares, Inc. | PCI Loans | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Contractually required principal and interest payments | 25,124,000 | ||
Contractual cash flows not expected to be collected (nonaccretable difference) | 1,707,000 | ||
Expected cash flows at acquisition | 23,417,000 | ||
Interest component of expected cash flows (accretable yield) | 4,124,000 | ||
Fair value at acquisition | 19,293,000 | ||
ColoEast Bankshares, Inc. | Non-PCI | |||
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Acquired During Period [Line Items] | |||
Contractually required principal and interest payments | 530,404,000 | ||
Contractual cash flows not expected to be collected | 21,272,000 | ||
Fair value at acquisition | $ 441,482,000 |
Business Combinations and Div59
Business Combinations and Divestitures - Summary of Fair Values of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) | Oct. 06, 2017USD ($) |
Independent Bank - Colorado Branches | |
Business Acquisition [Line Items] | |
Deposit premium | $ 6,771,000 |
Business Combinations and Div60
Business Combinations and Divestitures - Schedule of Pro Forma Information on Acquisition (Details) - ColoEast Bankshares, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Net interest income | $ 128,322 | $ 117,051 |
Noninterest income | 22,671 | 36,539 |
Net income | $ 21,220 | $ 31,624 |
Basic earnings per common share | $ 1.14 | $ 1.73 |
Diluted earnings per common share | $ 1.13 | $ 1.70 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost of Securities and Their Approximate Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale securities: | ||
Total Available for sale securities, Amortized Cost | $ 256,381 | $ 275,468 |
Total Available for sale securities, Gross Unrealized Gains | 664 | 1,247 |
Total Available for sale securities, Gross Unrealized Losses | (1,436) | (1,686) |
Securities - available for sale | 255,609 | 275,029 |
Held to maturity securities: | ||
Held to maturity securities, Amortized Cost | 8,557 | 29,352 |
Held to maturity securities, Fair Value | 7,527 | 30,821 |
U.S. Treasury Notes | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 1,940 | |
Available for sale securities, Gross Unrealized Losses | (6) | |
Available for sale securities, Fair Value | 1,934 | |
Mutual Fund | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 5,000 | 2,000 |
Available for sale securities, Gross Unrealized Gains | 6 | 11 |
Available for sale securities, Fair Value | 5,006 | 2,011 |
U.S. Government Agency Obligations | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 110,531 | 180,945 |
Available for sale securities, Gross Unrealized Gains | 76 | 640 |
Available for sale securities, Gross Unrealized Losses | (717) | (643) |
Available for sale securities, Fair Value | 109,890 | 180,942 |
Mortgage-backed Securities, Residential | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 33,537 | 24,710 |
Available for sale securities, Gross Unrealized Gains | 306 | 453 |
Available for sale securities, Gross Unrealized Losses | (180) | (173) |
Available for sale securities, Fair Value | 33,663 | 24,990 |
Asset Backed Securities | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 11,883 | 13,031 |
Available for sale securities, Gross Unrealized Gains | 47 | 30 |
Available for sale securities, Gross Unrealized Losses | (85) | (159) |
Available for sale securities, Fair Value | 11,845 | 12,902 |
State and Municipal | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 74,684 | 27,339 |
Available for sale securities, Gross Unrealized Gains | 150 | 6 |
Available for sale securities, Gross Unrealized Losses | (443) | (708) |
Available for sale securities, Fair Value | 74,391 | 26,637 |
Corporate Bonds | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 15,271 | 27,287 |
Available for sale securities, Gross Unrealized Gains | 52 | 106 |
Available for sale securities, Gross Unrealized Losses | (3) | (3) |
Available for sale securities, Fair Value | 15,320 | 27,390 |
SBA Pooled Securities | ||
Available for sale securities: | ||
Available for sale securities, Amortized Cost | 3,535 | 156 |
Available for sale securities, Gross Unrealized Gains | 27 | 1 |
Available for sale securities, Gross Unrealized Losses | (2) | |
Available for sale securities, Fair Value | 3,560 | 157 |
CLO Securities | ||
Held to maturity securities: | ||
Held to maturity securities, Amortized Cost | 8,557 | 29,352 |
Held to maturity securities, Gross Unrecognized Gains | 1,527 | |
Held to maturity securities, Gross Unrecognized Losses | (1,030) | (58) |
Held to maturity securities, Fair Value | $ 7,527 | $ 30,821 |
Securities - Schedule of Amor62
Securities - Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for Sale Securities, Amortized Cost | ||
Due in one year or less, Amortized Cost | $ 30,577 | |
Due from one year to five years, Amortized Cost | 118,179 | |
Due from five years to ten years, Amortized Cost | 32,427 | |
Due after ten years, Amortized Cost | 21,243 | |
Available for Sale Securities, with single maturity date, Amortized Cost | 202,426 | |
Total Available for sale securities, Amortized Cost | 256,381 | $ 275,468 |
Available for Sale Securities, Fair Value | ||
Due in one year or less, Fair Value | 30,540 | |
Due from one year to five years, Fair Value | 117,532 | |
Due from five years to ten years, Fair Value | 32,363 | |
Due after ten years, Fair Value | 21,100 | |
Available for Sale Securities, with single maturity date, Fair Value | 201,535 | |
Available for Sale Securities, Fair Value | 255,609 | 275,029 |
Held to Maturity Securities, Amortized Cost | ||
Due after ten years, Amortized Cost | 8,557 | |
Held to Maturity Securities, with single maturity date, Amortized Cost | 8,557 | |
Held to maturity securities, Amortized Cost | 8,557 | 29,352 |
Held to Maturity Securities, Fair Value | ||
Due after ten years, Fair Value | 7,527 | |
Held to Maturity Securities, with single maturity date, Fair Value | 7,527 | |
Held to Maturity Securities, Fair Value | 7,527 | $ 30,821 |
Mutual Fund | ||
Available for Sale Securities, Amortized Cost | ||
Available for Sale Securities, without single maturity date, Amortized Cost | 5,000 | |
Available for Sale Securities, Fair Value | ||
Available for Sale Securities, without single maturity date, Fair Value | 5,006 | |
Mortgage-backed Securities, Residential | ||
Available for Sale Securities, Amortized Cost | ||
Available for Sale Securities, without single maturity date, Amortized Cost | 33,537 | |
Available for Sale Securities, Fair Value | ||
Available for Sale Securities, without single maturity date, Fair Value | 33,663 | |
Asset Backed Securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for Sale Securities, without single maturity date, Amortized Cost | 11,883 | |
Available for Sale Securities, Fair Value | ||
Available for Sale Securities, without single maturity date, Fair Value | 11,845 | |
SBA Pooled Securities | ||
Available for Sale Securities, Amortized Cost | ||
Available for Sale Securities, without single maturity date, Amortized Cost | 3,535 | |
Available for Sale Securities, Fair Value | ||
Available for Sale Securities, without single maturity date, Fair Value | $ 3,560 |
Securities - Schedule of Procee
Securities - Schedule of Proceeds from Sales of Securities and the Associated Gross Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investments Debt And Equity Securities [Abstract] | |||
Proceeds | $ 32,441 | $ 34,338 | $ 17,635 |
Gross gains | $ 35 | 17 | $ 259 |
Gross losses | $ (73) |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | Dec. 31, 2017USD ($)securities | Dec. 31, 2016USD ($) |
Investments Debt And Equity Securities [Abstract] | ||
Pledged securities, at carrying value | $ | $ 85,985 | $ 194,571 |
Number of securities which is in unrealized loss position | securities | 169 |
Securities - Schedule of Inform
Securities - Schedule of Information Pertaining to Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 102,770 | $ 128,099 |
Less than 12 Months, Unrealized Losses | (498) | (1,527) |
12 Months or More, Fair Value | 58,540 | 7,946 |
12 Months or More, Unrealized Losses | (938) | (159) |
Total, Fair Value | 161,310 | 136,045 |
Total, Unrealized Losses | (1,436) | (1,686) |
U.S. Government Agency Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 47,605 | 95,362 |
Less than 12 Months, Unrealized Losses | (166) | (643) |
12 Months or More, Fair Value | 40,053 | |
12 Months or More, Unrealized Losses | (551) | |
Total, Fair Value | 87,658 | 95,362 |
Total, Unrealized Losses | (717) | (643) |
Mortgage-backed Securities, Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 10,349 | 6,594 |
Less than 12 Months, Unrealized Losses | (21) | (173) |
12 Months or More, Fair Value | 6,200 | |
12 Months or More, Unrealized Losses | (159) | |
Total, Fair Value | 16,549 | 6,594 |
Total, Unrealized Losses | (180) | (173) |
U.S. Treasury notes | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,934 | |
Less than 12 Months, Unrealized Losses | (6) | |
Total, Fair Value | 1,934 | |
Total, Unrealized Losses | (6) | |
Asset Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 4,898 | |
Less than 12 Months, Unrealized Losses | (85) | |
12 Months or More, Fair Value | 7,946 | |
12 Months or More, Unrealized Losses | (159) | |
Total, Fair Value | 4,898 | 7,946 |
Total, Unrealized Losses | (85) | (159) |
State and Municipal | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 32,257 | 25,771 |
Less than 12 Months, Unrealized Losses | (216) | (708) |
12 Months or More, Fair Value | 12,138 | |
12 Months or More, Unrealized Losses | (227) | |
Total, Fair Value | 44,395 | 25,771 |
Total, Unrealized Losses | (443) | (708) |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 4,073 | 372 |
Less than 12 Months, Unrealized Losses | (2) | (3) |
12 Months or More, Fair Value | 149 | |
12 Months or More, Unrealized Losses | (1) | |
Total, Fair Value | 4,222 | 372 |
Total, Unrealized Losses | (3) | (3) |
SBA Pooled Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,654 | |
Less than 12 Months, Unrealized Losses | (2) | |
Total, Fair Value | 1,654 | |
Total, Unrealized Losses | (2) | |
CLO Securities | ||
Held to maturity securities: | ||
Less than 12 Months, Fair Value | 1,835 | 3,323 |
Less than 12 Months, Unrealized Losses | (28) | (58) |
12 Months or More, Fair Value | 5,692 | |
12 Months or More, Unrealized Losses | (1,002) | |
Total, Fair Value | 7,527 | 3,323 |
Total, Unrealized Losses | $ (1,030) | $ (58) |
Loans and Allowance for Loan 66
Loans and Allowance for Loan and Lease Losses - Schedule of Recorded Investment and Unpaid Principal for Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | $ 2,810,856 | $ 2,027,624 | ||
Unpaid Principal | 2,832,506 | 2,045,606 | ||
Difference | (21,650) | (17,982) | ||
Allowance for loan and lease losses | (18,748) | (15,405) | $ (12,567) | $ (8,843) |
Loans, net | 2,792,108 | 2,012,219 | ||
Commercial real estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 745,893 | 442,237 | ||
Unpaid Principal | 753,803 | 447,926 | ||
Difference | (7,910) | (5,689) | ||
Allowance for loan and lease losses | (3,435) | (1,813) | (1,489) | (533) |
Construction, land development, land | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 134,812 | 109,812 | ||
Unpaid Principal | 138,045 | 113,211 | ||
Difference | (3,233) | (3,399) | ||
Allowance for loan and lease losses | (883) | (465) | (367) | (333) |
1-4 family residential properties | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 125,827 | 104,974 | ||
Unpaid Principal | 127,499 | 106,852 | ||
Difference | (1,672) | (1,878) | ||
Allowance for loan and lease losses | (293) | (253) | (274) | (215) |
Farmland | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 180,141 | 141,615 | ||
Unpaid Principal | 184,006 | 142,673 | ||
Difference | (3,865) | (1,058) | ||
Allowance for loan and lease losses | (310) | (170) | (134) | (19) |
Commercial Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 920,812 | 778,643 | ||
Unpaid Principal | 924,133 | 783,349 | ||
Difference | (3,321) | (4,706) | ||
Allowance for loan and lease losses | (8,150) | (8,014) | (5,276) | (4,003) |
Factored receivables | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 374,410 | 238,198 | ||
Unpaid Principal | 376,046 | 239,432 | ||
Difference | (1,636) | (1,234) | ||
Allowance for loan and lease losses | (4,597) | (4,088) | (4,509) | (3,462) |
Consumer | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 31,131 | 29,764 | ||
Unpaid Principal | 31,144 | 29,782 | ||
Difference | (13) | (18) | ||
Allowance for loan and lease losses | (783) | (420) | (216) | (140) |
Mortgage warehouse | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loan, Total | 297,830 | 182,381 | ||
Unpaid Principal | 297,830 | 182,381 | ||
Allowance for loan and lease losses | $ (297) | $ (182) | $ (302) | $ (138) |
Loans and Allowance for Loan 67
Loans and Allowance for Loan and Lease Losses - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Premiums and discounts on acquired loans | $ 18,706,000 | $ 15,210,000 | ||
Net deferred origination and factoring fees | $ 2,944,000 | $ 2,772,000 | ||
Percentage of total loan portfolio on factored receivables | 10.00% | 9.00% | ||
Majority of factored receivables percentage of loan portfolio | 77.00% | 77.00% | ||
Pledged loans | $ 596,230,000 | $ 497,573,000 | ||
Loans transferred to loans held for sale | 3,914,000 | 24,384,000 | $ 0 | |
Proceeds from loans transferred to loans held for sale | 3,834,000 | 24,538,000 | ||
Gain (loss) on transfer of loans to loans held for sale | (80,000) | 154,000 | ||
Recorded investments in troubled debt restructurings | 19,137,000 | 18,386,000 | ||
Allowance for loan and lease losses | $ 18,748,000 | 15,405,000 | $ 12,567,000 | $ 8,843,000 |
Number of defaults on modified loans | loan | 0 | 0 | ||
Troubled Debt Restructuring | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loan and lease losses | $ 535,000 | 1,911,000 | ||
Other non interest income | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gain (loss) on transfer of loans to loans held for sale | (80,000) | 154,000 | ||
Factored receivables | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Customer reserves | 32,459,000 | 23,597,000 | ||
Allowance for loan and lease losses | 4,597,000 | 4,088,000 | $ 4,509,000 | 3,462,000 |
Commercial Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loan and lease losses | 8,150,000 | 8,014,000 | 5,276,000 | 4,003,000 |
Recorded investments in troubled debt restructurings | $ 2,011,000 | |||
Number of defaults on modified loans | loan | 14 | |||
1-4 family residential properties | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Allowance for loan and lease losses | 293,000 | $ 253,000 | $ 274,000 | $ 215,000 |
1-4 family residential properties | Real Eatate Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Residential real estate loans in process of foreclosure | $ 484,000 | |||
Geographic Concentration Risk | Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of customers located within states | 74.00% | 73.00% | ||
Colorado | Geographic Concentration Risk | Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of customers located within states | 26.00% | 22.00% | ||
Illinois | Geographic Concentration Risk | Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of customers located within states | 17.00% | 21.00% | ||
Iowa | Geographic Concentration Risk | Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of customers located within states | 7.00% | 7.00% | ||
Texas | Geographic Concentration Risk | Accounts Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of customers located within states | 24.00% | 23.00% |
Loans and Allowance for Loan 68
Loans and Allowance for Loan and Lease Losses - Summary of Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 15,405 | $ 12,567 | $ 15,405 | $ 12,567 | $ 8,843 | ||||||
Provision for loan losses | $ 1,931 | $ 572 | $ 1,447 | 7,678 | $ 2,446 | $ 2,819 | $ 1,939 | (511) | 11,628 | 6,693 | 4,529 |
Charge-offs | (8,418) | (5,152) | (1,389) | ||||||||
Recoveries | 2,236 | 1,297 | 584 | ||||||||
Reclassification To Held for Sale | (2,103) | ||||||||||
Ending Balance | 18,748 | 15,405 | 18,748 | 15,405 | 12,567 | ||||||
Commercial real estate | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 1,813 | 1,489 | 1,813 | 1,489 | 533 | ||||||
Provision for loan losses | 1,822 | 313 | 1,055 | ||||||||
Charge-offs | (259) | (5) | (152) | ||||||||
Recoveries | 59 | 16 | 53 | ||||||||
Ending Balance | 3,435 | 1,813 | 3,435 | 1,813 | 1,489 | ||||||
Construction, land development, land | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 465 | 367 | 465 | 367 | 333 | ||||||
Provision for loan losses | 825 | 92 | 34 | ||||||||
Charge-offs | (582) | ||||||||||
Recoveries | 175 | 6 | |||||||||
Ending Balance | 883 | 465 | 883 | 465 | 367 | ||||||
1-4 family residential properties | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 253 | 274 | 253 | 274 | 215 | ||||||
Provision for loan losses | 24 | (22) | 60 | ||||||||
Charge-offs | (31) | (84) | (205) | ||||||||
Recoveries | 47 | 85 | 204 | ||||||||
Ending Balance | 293 | 253 | 293 | 253 | 274 | ||||||
Farmland | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 170 | 134 | 170 | 134 | 19 | ||||||
Provision for loan losses | 140 | 36 | 115 | ||||||||
Ending Balance | 310 | 170 | 310 | 170 | 134 | ||||||
Commercial Loans | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 8,014 | 5,276 | 8,014 | 5,276 | 4,003 | ||||||
Provision for loan losses | 5,785 | 5,390 | 1,375 | ||||||||
Charge-offs | (4,875) | (3,643) | (145) | ||||||||
Recoveries | 1,329 | 991 | 43 | ||||||||
Reclassification To Held for Sale | (2,103) | ||||||||||
Ending Balance | 8,150 | 8,014 | 8,150 | 8,014 | 5,276 | ||||||
Factored receivables | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 4,088 | 4,509 | 4,088 | 4,509 | 3,462 | ||||||
Provision for loan losses | 2,058 | 315 | 1,508 | ||||||||
Charge-offs | (1,667) | (856) | (540) | ||||||||
Recoveries | 118 | 120 | 79 | ||||||||
Ending Balance | 4,597 | 4,088 | 4,597 | 4,088 | 4,509 | ||||||
Consumer | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | 420 | 216 | 420 | 216 | 140 | ||||||
Provision for loan losses | 859 | 689 | 218 | ||||||||
Charge-offs | (1,004) | (564) | (347) | ||||||||
Recoveries | 508 | 79 | 205 | ||||||||
Ending Balance | 783 | 420 | 783 | 420 | 216 | ||||||
Mortgage warehouse | |||||||||||
Allowance for Loan and Lease Losses [Roll Forward] | |||||||||||
Beginning Balance | $ 182 | $ 302 | 182 | 302 | 138 | ||||||
Provision for loan losses | 115 | (120) | 164 | ||||||||
Ending Balance | $ 297 | $ 182 | $ 297 | $ 182 | $ 302 |
Loans and Allowance for Loan 69
Loans and Allowance for Loan and Lease Losses - Summary of Individual and Collective Allowance for Loan Losses and Loan Balances by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | $ 39,313 | $ 40,528 | ||
Loan Evaluation, Collectively | 2,755,945 | 1,960,189 | ||
Loans | 2,810,856 | 2,027,624 | ||
ALLL Allocations, Individually | 2,713 | 3,773 | ||
ALLL Allocations, Collectively | 16,035 | 11,277 | ||
ALLL Allocations, Total ALLL | 18,748 | 15,405 | $ 12,567 | $ 8,843 |
Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 15,598 | 26,907 | ||
ALLL Allocations, PCI | 355 | |||
Commercial real estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 1,013 | 1,456 | ||
Loan Evaluation, Collectively | 735,118 | 427,918 | ||
Loans | 745,893 | 442,237 | ||
ALLL Allocations, Individually | 123 | 100 | ||
ALLL Allocations, Collectively | 3,312 | 1,358 | ||
ALLL Allocations, Total ALLL | 3,435 | 1,813 | 1,489 | 533 |
Commercial real estate | Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 9,762 | 12,863 | ||
ALLL Allocations, PCI | 355 | |||
Construction, land development, land | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 136 | 362 | ||
Loan Evaluation, Collectively | 130,732 | 105,493 | ||
Loans | 134,812 | 109,812 | ||
ALLL Allocations, Individually | 25 | |||
ALLL Allocations, Collectively | 883 | 440 | ||
ALLL Allocations, Total ALLL | 883 | 465 | 367 | 333 |
Construction, land development, land | Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 3,944 | 3,957 | ||
1-4 family residential properties | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 2,638 | 1,095 | ||
Loan Evaluation, Collectively | 122,093 | 101,551 | ||
Loans | 125,827 | 104,974 | ||
ALLL Allocations, Individually | 152 | 1 | ||
ALLL Allocations, Collectively | 141 | 252 | ||
ALLL Allocations, Total ALLL | 293 | 253 | 274 | 215 |
1-4 family residential properties | Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 1,096 | 2,328 | ||
Farmland | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 3,800 | 1,333 | ||
Loan Evaluation, Collectively | 176,232 | 140,045 | ||
Loans | 180,141 | 141,615 | ||
ALLL Allocations, Collectively | 310 | 170 | ||
ALLL Allocations, Total ALLL | 310 | 170 | 134 | 19 |
Farmland | Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 109 | 237 | ||
Commercial Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 26,616 | 33,033 | ||
Loan Evaluation, Collectively | 893,509 | 738,088 | ||
Loans | 920,812 | 778,643 | ||
ALLL Allocations, Individually | 1,409 | 2,101 | ||
ALLL Allocations, Collectively | 6,741 | 5,913 | ||
ALLL Allocations, Total ALLL | 8,150 | 8,014 | 5,276 | 4,003 |
Commercial Loans | Purchased Credit Impaired Loans | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loans | 687 | 7,522 | ||
Factored receivables | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 4,726 | 3,176 | ||
Loan Evaluation, Collectively | 369,684 | 235,022 | ||
Loans | 374,410 | 238,198 | ||
ALLL Allocations, Individually | 949 | 1,546 | ||
ALLL Allocations, Collectively | 3,648 | 2,542 | ||
ALLL Allocations, Total ALLL | 4,597 | 4,088 | 4,509 | 3,462 |
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Individually | 384 | 73 | ||
Loan Evaluation, Collectively | 30,747 | 29,691 | ||
Loans | 31,131 | 29,764 | ||
ALLL Allocations, Individually | 80 | |||
ALLL Allocations, Collectively | 703 | 420 | ||
ALLL Allocations, Total ALLL | 783 | 420 | 216 | 140 |
Mortgage warehouse | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Loan Evaluation, Collectively | 297,830 | 182,381 | ||
Loans | 297,830 | 182,381 | ||
ALLL Allocations, Collectively | 297 | 182 | ||
ALLL Allocations, Total ALLL | $ 297 | $ 182 | $ 302 | $ 138 |
Loans and Allowance for Loan 70
Loans and Allowance for Loan and Lease Losses - Summary of Information Pertaining to Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | $ 14,593 | $ 19,525 | |
Unpaid Principal, With Valuation Allowance | 14,584 | 19,525 | |
Related Allowance, With Valuation Allowance | 2,713 | 4,128 | |
Recorded Investment, Without Valuation Allowance | 24,720 | 21,528 | |
Unpaid Principal, Without Valuation Allowance | 25,327 | 21,845 | |
Average Impaired Loans | 40,184 | 27,130 | $ 12,114 |
Interest Recognized | 731 | 1,098 | 229 |
Purchased Credit Impaired Loans | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 525 | ||
Unpaid Principal, With Valuation Allowance | 525 | ||
Related Allowance, With Valuation Allowance | 355 | ||
Average Impaired Loans | 262 | 525 | 263 |
Commercial real estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 165 | 517 | |
Unpaid Principal, With Valuation Allowance | 165 | 517 | |
Related Allowance, With Valuation Allowance | 123 | 100 | |
Recorded Investment, Without Valuation Allowance | 848 | 939 | |
Unpaid Principal, Without Valuation Allowance | 881 | 1,011 | |
Average Impaired Loans | 1,234 | 1,090 | 1,329 |
Interest Recognized | 33 | 46 | |
Construction, land development, land | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 277 | ||
Unpaid Principal, With Valuation Allowance | 275 | ||
Related Allowance, With Valuation Allowance | 25 | ||
Recorded Investment, Without Valuation Allowance | 136 | 85 | |
Unpaid Principal, Without Valuation Allowance | 136 | 86 | |
Average Impaired Loans | 249 | 181 | |
Interest Recognized | 4 | ||
1-4 family residential properties | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 237 | 8 | |
Unpaid Principal, With Valuation Allowance | 235 | 14 | |
Related Allowance, With Valuation Allowance | 152 | 1 | |
Recorded Investment, Without Valuation Allowance | 2,401 | 1,087 | |
Unpaid Principal, Without Valuation Allowance | 2,519 | 1,215 | |
Average Impaired Loans | 1,867 | 857 | 623 |
Interest Recognized | 45 | 18 | 42 |
Farmland | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, Without Valuation Allowance | 3,800 | 1,333 | |
Unpaid Principal, Without Valuation Allowance | 4,071 | 1,364 | |
Average Impaired Loans | 2,567 | 667 | |
Interest Recognized | 45 | 45 | |
Commercial Loans | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 9,194 | 15,022 | |
Unpaid Principal, With Valuation Allowance | 9,191 | 15,018 | |
Related Allowance, With Valuation Allowance | 1,409 | 2,101 | |
Recorded Investment, Without Valuation Allowance | 17,422 | 18,011 | |
Unpaid Principal, Without Valuation Allowance | 17,605 | 18,096 | |
Average Impaired Loans | 29,825 | 20,474 | 7,552 |
Interest Recognized | 599 | 980 | 187 |
Factored receivables | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 4,726 | 3,176 | |
Unpaid Principal, With Valuation Allowance | 4,726 | 3,176 | |
Related Allowance, With Valuation Allowance | 949 | 1,546 | |
Average Impaired Loans | 3,951 | 3,299 | $ 2,347 |
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment, With Valuation Allowance | 271 | ||
Unpaid Principal, With Valuation Allowance | 267 | ||
Related Allowance, With Valuation Allowance | 80 | ||
Recorded Investment, Without Valuation Allowance | 113 | 73 | |
Unpaid Principal, Without Valuation Allowance | 115 | 73 | |
Average Impaired Loans | 229 | 37 | |
Interest Recognized | $ 9 | $ 5 |
Loans and Allowance for Loan 71
Loans and Allowance for Loan and Lease Losses - Summary of Contractually Past Due and Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | $ 31,674 | $ 31,525 |
Past Due 90 Days or More Still Accruing | 1,664 | 3,621 |
Nonaccrual | 32,149 | 38,030 |
Total Past Due | 65,487 | 73,176 |
Purchased Credit Impaired Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 72 | 2,020 |
Past Due 90 Days or More Still Accruing | 104 | |
Nonaccrual | 2,333 | 8,233 |
Total Past Due | 2,405 | 10,357 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 1,374 | 699 |
Past Due 90 Days or More Still Accruing | 144 | |
Nonaccrual | 1,012 | 1,163 |
Total Past Due | 2,386 | 2,006 |
Construction, land development, land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 619 | |
Nonaccrual | 136 | 362 |
Total Past Due | 136 | 981 |
1-4 family residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 1,378 | 956 |
Past Due 90 Days or More Still Accruing | 62 | |
Nonaccrual | 2,625 | 1,039 |
Total Past Due | 4,065 | 1,995 |
Farmland | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 250 | 3,583 |
Past Due 90 Days or More Still Accruing | 109 | 141 |
Nonaccrual | 3,412 | 541 |
Total Past Due | 3,771 | 4,265 |
Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 6,630 | 11,060 |
Past Due 90 Days or More Still Accruing | 39 | 1,077 |
Nonaccrual | 22,247 | 26,619 |
Total Past Due | 28,916 | 38,756 |
Factored receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 20,858 | 11,921 |
Past Due 90 Days or More Still Accruing | 1,454 | 2,153 |
Total Past Due | 22,312 | 14,074 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 947 | 667 |
Past Due 90 Days or More Still Accruing | 2 | |
Nonaccrual | 384 | 73 |
Total Past Due | 1,331 | $ 742 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
30-89 Days Past Due | 165 | |
Total Past Due | $ 165 |
Loans and Allowance for Loan 72
Loans and Allowance for Loan and Lease Losses - Schedule of Nonperforming Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Nonaccrual loans | $ 32,149 | $ 38,030 | |
Past Due 90 Days or More Still Accruing | 1,664 | 3,621 | |
Factored receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Past Due 90 Days or More Still Accruing | 1,454 | 2,153 | |
Nonperforming Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Nonaccrual loans | [1] | 32,149 | 38,030 |
Troubled debt restructurings accruing interest | 5,128 | 5,123 | |
Total loans | 38,731 | 45,306 | |
Nonperforming Loans | Factored receivables | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Past Due 90 Days or More Still Accruing | $ 1,454 | $ 2,153 | |
[1] | Includes troubled debt restructurings of $14,009,000 and $13,263,000 at December 31, 2017 and 2016, respectively. |
Loans and Allowance for Loan 73
Loans and Allowance for Loan and Lease Losses - Schedule of Nonperforming Loans (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual loans | $ 32,149 | $ 38,030 |
Troubled Debt Restructuring | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Nonaccrual loans | $ 14,009 | $ 13,263 |
Loans and Allowance for Loan 74
Loans and Allowance for Loan and Lease Losses - Summary of Analysis Performed Risk category Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 2,810,856 | $ 2,027,624 |
Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 745,893 | 442,237 |
Construction, land development, land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 134,812 | 109,812 |
1-4 family residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 125,827 | 104,974 |
Farmland | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 180,141 | 141,615 |
Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 920,812 | 778,643 |
Factored receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 374,410 | 238,198 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 31,131 | 29,764 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 297,830 | 182,381 |
Purchased Credit Impaired Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 15,598 | 26,907 |
Purchased Credit Impaired Loans | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 9,762 | 12,863 |
Purchased Credit Impaired Loans | Construction, land development, land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,944 | 3,957 |
Purchased Credit Impaired Loans | 1-4 family residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,096 | 2,328 |
Purchased Credit Impaired Loans | Farmland | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 109 | 237 |
Purchased Credit Impaired Loans | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 687 | 7,522 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 2,734,333 | 1,943,516 |
Pass | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 732,175 | 422,423 |
Pass | Construction, land development, land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 130,732 | 105,493 |
Pass | 1-4 family residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 122,044 | 101,339 |
Pass | Farmland | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 171,017 | 136,474 |
Pass | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 878,957 | 729,634 |
Pass | Factored receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 370,839 | 236,084 |
Pass | Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 30,739 | 29,688 |
Pass | Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 297,830 | 182,381 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 59,679 | 56,116 |
Substandard | Commercial real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 3,956 | 6,951 |
Substandard | Construction, land development, land | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 136 | 362 |
Substandard | 1-4 family residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 2,687 | 1,307 |
Substandard | Farmland | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 9,015 | 4,904 |
Substandard | Commercial Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 41,168 | 41,487 |
Substandard | Factored receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 2,325 | 1,029 |
Substandard | Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 392 | 76 |
Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | 1,246 | 1,085 |
Doubtful | Factored receivables | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 1,246 | $ 1,085 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan and Lease Losses - Schedule of Loans Modified as Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | |
Accounts Notes And Loans Receivable [Line Items] | |||
Pre Modification Recorded Investment | $ | $ 18,214 | ||
Number of Loans | loan | 31 | ||
Commercial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Pre Modification Recorded Investment | $ | $ 8,831 | $ 16,612 | $ 1,544 |
Number of Loans | loan | 8 | 27 | 4 |
Commercial real estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Pre Modification Recorded Investment | $ | $ 809 | ||
Number of Loans | loan | 3 | ||
Farmland | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Pre Modification Recorded Investment | $ | $ 793 | ||
Number of Loans | loan | 1 |
Loans and Allowance for Loan 76
Loans and Allowance for Loan and Lease Losses - Schedule of Outstanding Contractually Required Principal and Interest and Carrying Amount of PCI Loans Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding contractually required principal and interest | $ 19,861 | $ 34,716 |
Loans | 2,810,856 | 2,027,624 |
Real Estate Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding contractually required principal and interest | 16,360 | 25,013 |
Commercial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding contractually required principal and interest | 3,501 | 9,703 |
Purchased Credit Impaired Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans | $ 15,598 | $ 26,907 |
Loans and Allowance for Loan 77
Loans and Allowance for Loan and Lease Losses - Schedule of Changes in Accretable Yield for the PCI Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretable yield, beginning balance | $ 4,261 | $ 2,594 | $ 4,977 |
Additions | 371 | 4,124 | |
Accretion | (3,442) | (3,092) | (4,023) |
Reclassification from nonaccretable to accretable yield | 2,108 | 646 | 1,805 |
Disposals | (505) | (11) | (165) |
Accretable yield, ending balance | $ 2,793 | $ 4,261 | $ 2,594 |
Other Real Estate Owned - Sched
Other Real Estate Owned - Schedule of Other Real Estate Owned Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Real Estate [Abstract] | |||
Beginning balance | $ 6,077 | $ 5,177 | $ 8,423 |
Acquired through business acquisition | 2,282 | 2,962 | |
Loans transferred to OREO | 6,585 | 470 | 743 |
Premises transferred to OREO | 276 | 2,215 | |
Net OREO gains (losses) and valuation adjustments | (850) | (1,427) | (108) |
Sales of OREO | (5,179) | (3,320) | (3,881) |
Ending balance | $ 9,191 | $ 6,077 | $ 5,177 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 74,318 | $ 53,269 |
Accumulated depreciation | (11,457) | (7,809) |
Premises and equipment, net | 62,861 | 45,460 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 10,534 | 6,844 |
Buildings | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 45,841 | 30,646 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 4,928 | 4,667 |
Furniture, Fixtures and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 13,015 | $ 11,112 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation | $ 4,001 | $ 2,817 | $ 2,143 |
Rent expense | $ 2,261 | $ 2,053 | $ 1,985 |
Premises and Equipment - Sche81
Premises and Equipment - Schedule of Operating Leases Rent Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 1,866 |
2,019 | 1,479 |
2,020 | 1,465 |
2,021 | 653 |
2,022 | 203 |
Thereafter | 303 |
Operating leases, total | $ 5,969 |
Goodwill and Intangible Asset82
Goodwill and Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 44,126 | $ 28,810 |
Finite-Lived Intangible Assets, Gross Carrying Amount | 31,275 | 27,831 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,623) | (10,110) |
Finite-Lived Intangible Assets, Net Carrying Amount | 19,652 | 17,721 |
Core Deposit Intangibles | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 29,511 | 21,825 |
Finite-Lived Intangible Assets, Accumulated Amortization | (11,335) | (8,423) |
Finite-Lived Intangible Assets, Net Carrying Amount | 18,176 | 13,402 |
Other Intangible Assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross Carrying Amount | 1,764 | 6,006 |
Finite-Lived Intangible Assets, Accumulated Amortization | (288) | (1,687) |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 1,476 | $ 4,319 |
Goodwill and Intangible Asset83
Goodwill and Intangible Assets - Schedule of Changes in Goodwill and Intangible Assets by Operating Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill and intangible assets, beginning | $ 46,531 | $ 27,854 | $ 29,057 |
Acquired goodwill | 16,340 | 12,842 | 2,776 |
Acquired intangibles | 9,478 | 9,617 | |
Amortization of intangibles | (5,201) | (3,782) | (3,979) |
Divestiture of intangibles | (1,339) | ||
Reclass of goodwill to assets held for sale | (1,024) | ||
Reclass of intangibles to assets held for sale | (1,007) | ||
Goodwill and intangible assets, ending | 63,778 | 46,531 | 27,854 |
Operating Segments | Banking | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill and intangible assets, beginning | 36,139 | 17,482 | 20,187 |
Acquired goodwill | 16,340 | 12,842 | |
Acquired intangibles | 9,478 | 8,818 | |
Amortization of intangibles | (5,016) | (3,003) | (2,705) |
Reclass of goodwill to assets held for sale | (1,024) | ||
Reclass of intangibles to assets held for sale | (1,007) | ||
Goodwill and intangible assets, ending | 54,910 | 36,139 | 17,482 |
Operating Segments | Factoring | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill and intangible assets, beginning | 8,871 | 8,875 | 8,870 |
Acquired goodwill | 8 | ||
Amortization of intangibles | (3) | (4) | (3) |
Goodwill and intangible assets, ending | 8,868 | 8,871 | 8,875 |
Operating Segments | Asset Management | |||
Goodwill And Intangible Assets [Line Items] | |||
Goodwill and intangible assets, beginning | 1,521 | 1,497 | |
Acquired goodwill | 2,768 | ||
Acquired intangibles | 799 | ||
Amortization of intangibles | (182) | (775) | (1,271) |
Divestiture of intangibles | $ (1,339) | ||
Goodwill and intangible assets, ending | $ 1,521 | $ 1,497 |
Goodwill and Intangible Asset84
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill and intangible assets, net | $ 63,778,000 | $ 46,531,000 | $ 27,854,000 | $ 29,057,000 |
Goodwill impairment | $ 0 | 0 | ||
Intangibles, impairment charge | $ 0 | $ 0 | ||
Minimum | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Finite lived intangible assets, Amortization period | 8 years | |||
Maximum | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Finite lived intangible assets, Amortization period | 10 years | |||
Core Deposit Intangibles | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Intangibles, impairment charge | $ 1,276,000 | |||
Corporate | Operating Segment | ||||
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill and intangible assets, net | $ 0 |
Goodwill and Intangible Asset85
Goodwill and Intangible Assets - Schedule of Future Amortization Related to Company's Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,018 | $ 4,296 | |
2,019 | 3,735 | |
2,020 | 3,178 | |
2,021 | 2,617 | |
2,022 | 2,059 | |
Thereafter | 3,767 | |
Finite-Lived Intangible Assets, Net Carrying Amount | $ 19,652 | $ 17,721 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Variable Interest Entity [Line Items] | |||
Asset management fees | $ 1,717 | $ 6,574 | $ 5,646 |
Held to maturity security | 8,557 | 29,352 | |
Income from investment in CLO warehouse entities | 2,226 | 3,184 | 1,151 |
Collateralized Loan Obligation Funds | |||
Variable Interest Entity [Line Items] | |||
Held to maturity security | 8,557 | 3,380 | |
Income from investment in CLO warehouse entities | 2,226 | 3,184 | $ 1,151 |
Collateralized Loan Obligation Funds | Warehouse CLO Funds | |||
Variable Interest Entity [Line Items] | |||
Equity investments | $ 0 | $ 21,217 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Closed CLO Funds (Details) - Collateralized Loan Obligation Funds - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Jun. 20, 2017 | Sep. 22, 2016 | Jun. 02, 2016 | |
Trinitas IV | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 406,650 | |||
Offering Date | Jun. 2, 2016 | |||
Trinitas V | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 409,000 | |||
Offering Date | Sep. 22, 2016 | |||
Trinitas VI | ||||
Variable Interest Entity [Line Items] | ||||
Offering Amount | $ 717,100 | |||
Offering Date | Jun. 20, 2017 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Noninterest bearing demand | $ 564,225 | $ 363,351 |
Interest bearing demand | 403,244 | 340,362 |
Individual retirement accounts | 108,505 | 103,022 |
Money market | 283,969 | 213,253 |
Savings | 235,296 | 171,354 |
Certificates of deposit | 837,384 | 756,351 |
Brokered deposits | 188,725 | 68,092 |
Total deposits | $ 2,621,348 | $ 2,015,785 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits, Including Certificates of Deposits, Individual Retirement Accounts and Brokered Deposits (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Deposits [Abstract] | |
Within one year | $ 851,311 |
After one but within two years | 185,402 |
After two but within three years | 45,789 |
After three but within four years | 32,054 |
After four but within five years | 20,058 |
Total | $ 1,134,614 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Time deposits | $ 158,197 | $ 149,258 |
Borrowings and Borrowing Capa91
Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at end of the year | $ 11,488 | $ 10,490 |
Weighted average interest rate at end of the year | 0.02% | 0.02% |
Average daily balance during the year | $ 12,906 | $ 11,984 |
Weighted average interest rate during the year | 0.02% | 0.02% |
Maximum month-end balance during the year | $ 21,041 | $ 15,329 |
Borrowings and Borrowing Capa92
Borrowings and Borrowing Capacity - Summary of Customer Repurchase Agreements are Secured by Pledged Securities with Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Pledged Securities | $ 85,985 | $ 194,571 |
Pledged Securities | Customer Repurchase Agreements | ||
Debt Instrument [Line Items] | ||
Pledged Securities | 13,460 | 13,486 |
Pledged Securities | Customer Repurchase Agreements | U.S. Government Agency Obligations | ||
Debt Instrument [Line Items] | ||
Pledged Securities | $ 13,460 | 10,488 |
Pledged Securities | Customer Repurchase Agreements | Mortgage-backed Securities, Residential | ||
Debt Instrument [Line Items] | ||
Pledged Securities | $ 2,998 |
Borrowings and Borrowing Capa93
Borrowings and Borrowing Capacity - Summary of FHLB Advances and Weighted Average Interest Rates by Contractual Maturity (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2018, Balance Outstanding, Fixed Rate | $ 290,000 |
Total Balance Outstanding, Fixed Rate | $ 290,000 |
2018, Fixed Weighted Average Interest Rate | 1.40% |
Total Fixed Weighted Average Interest Rate | 1.40% |
2018, Balance Outstanding, Variable Rate | $ 45,000 |
2027, Balance Outstanding, Variable Rate | 30,000 |
Total Balance Outstanding, Variable Rate | $ 75,000 |
2018, Variable Weighted Average Interest Rate | 1.33% |
2027, Variable Weighted Average Interest Rate | 1.39% |
Total Variable Weighted Average Interest Rate | 1.35% |
Borrowings and Borrowing Capa94
Borrowings and Borrowing Capacity - Summary of Information Concerning FHLB Advances (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Amount outstanding at end of the year | $ 365,000,000 | $ 230,000,000 |
Weighted average interest rate at end of the year | 1.39% | 0.58% |
Average daily balance during the year | $ 300,451,000 | $ 174,784,000 |
Weighted average interest rate during the year | 1.05% | 0.41% |
Maximum month-end balance during the year | $ 385,000,000 | $ 291,000,000 |
Borrowings and Borrowing Capa95
Borrowings and Borrowing Capacity - Schedule of FHLB Advances (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
FHLB Advances, Borrowing capacity | $ 596,230 | $ 497,147 |
FHLB Advances, Borrowings outstanding | 365,000 | 230,000 |
FHLB Advances, Unused borrowing capacity | $ 231,230 | $ 267,147 |
Borrowings and Borrowing Capa96
Borrowings and Borrowing Capacity - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Federal funds purchased | $ 0 | $ 0 | |
Unsecured federal funds line of credit | 137,500,000 | ||
Subordinated notes, carrying values | 48,828,000 | 48,734,000 | |
Junior subordinated debentures | 38,623,000 | 32,740,000 | |
Fixed-to-Floating Rate Subordinated Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Subordinated notes issued | $ 50,000,000 | ||
Initial interest rate | 6.50% | ||
Subordinated notes, carrying values | 48,828,000 | $ 48,734,000 | |
Issuance costs of notes | $ 1,324,000 | ||
Notes underwriting discount percentage | 1.50% | ||
Notes underwriting discount amount | $ 750,000 | ||
Fixed-to-Floating Rate Subordinated Notes due 2026 | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Description of floating rate basis | three-month LIBOR | ||
Interest Rate | 5.345% |
Borrowings and Borrowing Capa97
Borrowings and Borrowing Capacity - Summary of Junior Subordinated Debentures (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Face Value | $ 51,031,000 | |
Carrying Value | 38,623,000 | $ 32,740,000 |
National Bancshares Capital Trusts II | ||
Debt Instrument [Line Items] | ||
Face Value | 15,464,000 | |
Carrying Value | $ 12,861,000 | |
Maturity Date | 2033-09 | |
National Bancshares Capital Trusts II | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 3.00% | |
Interest Rate | 4.59% | |
National Bancshares Capital Trusts III | ||
Debt Instrument [Line Items] | ||
Face Value | $ 17,526,000 | |
Carrying Value | $ 12,389,000 | |
Maturity Date | 2036-07 | |
National Bancshares Capital Trusts III | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 1.64% | |
Interest Rate | 3.00% | |
ColoEast Capital Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 5,155,000 | |
Carrying Value | $ 3,417,000 | |
Maturity Date | 2035-09 | |
ColoEast Capital Trust I | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 1.60% | |
Interest Rate | 3.29% | |
ColoEast Capital Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 6,700,000 | |
Carrying Value | $ 4,485,000 | |
Maturity Date | 2037-03 | |
ColoEast Capital Trust II | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 1.79% | |
Interest Rate | 3.48% | |
Valley Bancorp Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,093,000 | |
Carrying Value | $ 2,844,000 | |
Maturity Date | 2032-09 | |
Valley Bancorp Statutory Trust I | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 3.40% | |
Interest Rate | 5.07% | |
Valley Bancorp Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Face Value | $ 3,093,000 | |
Carrying Value | $ 2,627,000 | |
Maturity Date | 2034-07 | |
Valley Bancorp Statutory Trust II | London Interbank Offered Rate (LIBOR) | ||
Debt Instrument [Line Items] | ||
Interest Rate, Description | LIBOR + 2.75% | |
Interest Rate | 4.35% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |||
Employer contribution towards compensation | 100.00% | ||
Compensation contributed percentage | 4.00% | ||
Compensation expenses | $ 1,468 | $ 1,179 | $ 1,100 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense: | |||||||||||
Current | $ 14,714 | $ 10,922 | $ 8,701 | ||||||||
Deferred | 10,174 | 1,941 | 666 | ||||||||
Change in valuation allowance for deferred tax asset | (10) | (54) | (946) | ||||||||
Income tax expense | $ 8,327 | $ 5,104 | $ 5,331 | $ 6,116 | $ 4,134 | $ 3,099 | $ 2,679 | $ 2,897 | $ 24,878 | $ 12,809 | $ 8,421 |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Income Tax Disclosure [Abstract] | ||||||||||||
Tax provision computed at federal statutory rate | $ 21,384,000 | $ 11,728,000 | $ 13,144,000 | |||||||||
Tax reform impact | [1] | 2,984,000 | ||||||||||
State taxes, net | 1,112,000 | 852,000 | 1,444,000 | |||||||||
Change in effective tax rate | (142,000) | |||||||||||
Bargain purchase gain | (5,291,000) | |||||||||||
Transaction costs | 325,000 | |||||||||||
Bank-owned life insurance | (246,000) | (201,000) | (158,000) | |||||||||
Tax exempt interest | (545,000) | (129,000) | (119,000) | |||||||||
Change in valuation allowance for deferred tax asset | (10,000) | (54,000) | (946,000) | |||||||||
Other | 199,000 | 288,000 | 489,000 | |||||||||
Income tax expense | $ 8,327,000 | $ 5,104,000 | $ 5,331,000 | $ 6,116,000 | $ 4,134,000 | $ 3,099,000 | $ 2,679,000 | $ 2,897,000 | $ 24,878,000 | $ 12,809,000 | $ 8,421,000 | |
[1] | On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $2,984,000 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. |
Income Taxes - Summary of Ef101
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Parenthetical) (Details) - USD ($) | Dec. 22, 2017 | Dec. 21, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Incremental income tax expense | [1] | $ 2,984,000 | ||
Federal statutory rate | 21.00% | 35.00% | ||
[1] | On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $2,984,000 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. Authoritative guidance and interpretation by regulatory bodies is ongoing, and as such, the accounting for the effects of the Tax Act is not final and the full impact of the new regulation is still being evaluated. |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets | ||
Federal net operating loss carryforwards | $ 7,180 | $ 13,669 |
State net operating loss carryforwards | 1,338 | 1,493 |
Acquired loan basis | 1,159 | 4,888 |
Other real estate owned | 394 | 2,788 |
AMT credit carryforward | 2,855 | 2,855 |
Allowance for loan losses | 4,825 | 4,853 |
Unrealized loss on securities available for sale | 176 | 163 |
Other | 1,218 | 2,562 |
Total deferred tax assets | 19,145 | 33,271 |
Deferred tax liabilities | ||
Goodwill and intangible assets | 2,233 | 4,558 |
Fair value adjustment on junior subordinated debentures | 2,792 | 4,735 |
Premises and equipment | 2,273 | 3,310 |
Installment gain on sale of subsidiary | 2,230 | |
Other | 396 | 1,606 |
Total deferred tax liabilities | 9,924 | 14,209 |
Net deferred tax asset before valuation allowance | 9,221 | 19,062 |
Valuation allowance | (262) | (237) |
Net deferred tax asset | $ 8,959 | $ 18,825 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | ||
Operating loss carryforwards, expiration start year | 2,021 | |
Operating loss carryforwards, expiration end year | 2,035 | |
Federal alternative minimum tax credit carryforward | $ 2,855,000 | $ 2,855,000 |
Tax credit carryforwards, annual limitation on use amount | 3,696,000 | |
Uncertain tax position | 0 | 0 |
EJ Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 341,000 | |
NBI Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 2,040,000 | |
ColoEast Acquisition | ||
Income Taxes [Line Items] | ||
Tax credit carryforwards, annual limitation on use amount | 1,906,000 | |
Federal | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, net | 34,190,000 | 39,055,000 |
State | ||
Income Taxes [Line Items] | ||
Operating loss carryforwards, net | $ 29,178,000 | $ 34,500,000 |
Off-Balance Sheet Loan Commi104
Off-Balance Sheet Loan Commitments - Summary of Financial Instruments with Off-Balance Sheet Risk - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments to Make Loans | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments, off balance sheet risk, Fixed Rate | $ 7,345 | |
Financial instruments, off balance sheet risk, Variable Rate | 7,580 | |
Unused Lines of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments, off balance sheet risk, Fixed Rate | $ 133,634 | 109,611 |
Financial instruments, off balance sheet risk, Variable Rate | 242,236 | 145,475 |
Mortgage Warehouse Commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments, off balance sheet risk, Fixed Rate | 9,411 | 14,387 |
Financial instruments, off balance sheet risk, Variable Rate | 230,221 | 219,560 |
Standby Letters of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments, off balance sheet risk, Fixed Rate | 1,998 | 2,547 |
Financial instruments, off balance sheet risk, Variable Rate | $ 8,169 | $ 4,706 |
Off-Balance Sheet Loan Commi105
Off-Balance Sheet Loan Commitments - Additional Information (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Overdraft protection available amounts | $ 2,397,000 | $ 1,882,000 |
Other Liabilities | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Allowance for loan and lease losses on off-balance sheet lending-related commitments | $ 501,000 | $ 315,000 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure, recurring | $ 0 | $ 0 |
Liabilities, fair value disclosure, nonrecurring | 0 | 0 |
Held to maturity securities, Fair Value | 7,527,000 | 30,821,000 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held to maturity securities, Fair Value | $ 7,527,000 | 3,323,000 |
Level 3 | Minimum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Selling and closing costs for loans as a percentage of appraised value | 5.00% | |
Real estate selling and closing costs as a percentage of appraised value | 5.00% | |
Level 3 | Maximum | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Selling and closing costs for loans as a percentage of appraised value | 8.00% | |
Real estate selling and closing costs as a percentage of appraised value | 8.00% | |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Held to maturity securities, Fair Value | $ 0 | $ 27,498,000 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available for sale securities: | ||
Available for Sale Securities, Fair Value | $ 255,609 | $ 275,029 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Available for Sale Securities, Fair Value | 255,609 | 275,029 |
Mutual Fund | ||
Available for sale securities: | ||
Securities available for sale | 5,006 | 2,011 |
Mutual Fund | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 5,006 | 2,011 |
U.S. Government Agency Obligations | ||
Available for sale securities: | ||
Securities available for sale | 109,890 | 180,942 |
U.S. Government Agency Obligations | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 109,890 | 180,942 |
U.S. Treasury notes | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 1,934 | |
Mortgage-backed Securities, Residential | ||
Available for sale securities: | ||
Securities available for sale | 33,663 | 24,990 |
Mortgage-backed Securities, Residential | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 33,663 | 24,990 |
Asset Backed Securities | ||
Available for sale securities: | ||
Securities available for sale | 11,845 | 12,902 |
Asset Backed Securities | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 11,845 | 12,902 |
State and Municipal | ||
Available for sale securities: | ||
Securities available for sale | 74,391 | 26,637 |
State and Municipal | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 74,391 | 26,637 |
Corporate Bonds | ||
Available for sale securities: | ||
Securities available for sale | 15,320 | 27,390 |
Corporate Bonds | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 15,320 | 27,390 |
SBA Pooled Securities | ||
Available for sale securities: | ||
Securities available for sale | 3,560 | 157 |
SBA Pooled Securities | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 3,560 | 157 |
Level 1 | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Available for Sale Securities, Fair Value | 5,006 | 2,011 |
Level 1 | Mutual Fund | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 5,006 | 2,011 |
Level 2 | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Available for Sale Securities, Fair Value | 250,603 | 273,018 |
Level 2 | U.S. Government Agency Obligations | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 109,890 | 180,942 |
Level 2 | U.S. Treasury notes | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 1,934 | |
Level 2 | Mortgage-backed Securities, Residential | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 33,663 | 24,990 |
Level 2 | Asset Backed Securities | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 11,845 | 12,902 |
Level 2 | State and Municipal | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 74,391 | 26,637 |
Level 2 | Corporate Bonds | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | 15,320 | 27,390 |
Level 2 | SBA Pooled Securities | Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Securities available for sale | $ 3,560 | $ 157 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value of Assets Measured on Non-recurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 12,220 | $ 17,047 |
Impaired Loans | 1-4 family residential properties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 85 | 7 |
Impaired Loans | Construction, land development, land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 252 | |
Impaired Loans | Commercial Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 7,785 | 12,921 |
Impaired Loans | Factored receivables | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 3,777 | 1,630 |
Impaired Loans | Consumer | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 191 | |
Impaired Loans | Commercial real estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 42 | 417 |
Impaired Loans | PCI | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 170 | |
Other real estate owned | 1-4 family residential properties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 485 | |
Other real estate owned | Construction, land development, land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 202 | 467 |
Other real estate owned | Commercial real estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 138 | 698 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 12,220 | 17,047 |
Level 3 | Impaired Loans | 1-4 family residential properties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 85 | 7 |
Level 3 | Impaired Loans | Construction, land development, land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 252 | |
Level 3 | Impaired Loans | Commercial Loans | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 7,785 | 12,921 |
Level 3 | Impaired Loans | Factored receivables | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 3,777 | 1,630 |
Level 3 | Impaired Loans | Consumer | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 191 | |
Level 3 | Impaired Loans | Commercial real estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 42 | 417 |
Level 3 | Impaired Loans | PCI | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 170 | |
Level 3 | Other real estate owned | 1-4 family residential properties | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 485 | |
Level 3 | Other real estate owned | Construction, land development, land | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 202 | 467 |
Level 3 | Other real estate owned | Commercial real estate | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 138 | $ 698 |
Fair Value Disclosures - Estima
Fair Value Disclosures - Estimated Fair Value of Company's Financial Assets and Financial Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||||
Cash and cash equivalents, Fair Value | $ 134,129,000 | $ 114,514,000 | ||
Securities - Held to maturity, Fair value | 7,527,000 | 30,821,000 | ||
Loans not previously presented, net, Fair Value | 2,800,362,000 | 2,002,487,000 | ||
Loans included in assets held for sale, net, Fair Value | 69,268,000 | |||
Accrued interest receivable, Fair Value | 15,517,000 | 12,663,000 | ||
Cash and cash equivalents, Carrying Amount | 134,129,000 | 114,514,000 | $ 105,277,000 | $ 160,888,000 |
Securities - held to maturity, Carrying Amount | 8,557,000 | 29,352,000 | ||
Loans not previously presented, net, Carrying Amount | 2,780,228,000 | 1,996,822,000 | ||
Loans included in assets held for sale, net, Carrying Amount | 68,668,000 | |||
FHLB stock, Carrying Amount | 16,006,000 | 8,430,000 | ||
Accrued interest receivable, Carrying Amount | 15,517,000 | 12,663,000 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 2,616,034,000 | 2,014,922,000 | ||
Customer repurchase agreements, Fair Value | 11,488,000 | 10,490,000 | ||
Federal Home Loan Bank advances, Fair Value | 365,000,000 | 230,000,000 | ||
Subordinated notes, Fair Value | 52,310,000 | 50,920,000 | ||
Junior subordinated debentures, Fair Value | 41,563,000 | 32,905,000 | ||
Accrued interest payable, Fair Value | 3,323,000 | 2,682,000 | ||
Deposits, Carrying Amount | 2,621,348,000 | 2,015,785,000 | ||
Customer repurchase agreements, Carrying Amount | 11,488,000 | 10,490,000 | ||
Federal Home Loan Bank advances | 365,000,000 | 230,000,000 | ||
Subordinated notes, carrying values | 48,828,000 | 48,734,000 | ||
Junior subordinated debentures, Carrying Amount | 38,623,000 | 32,740,000 | ||
Accrued interest payable, Carrying Amount | 3,323,000 | 2,682,000 | ||
Level 1 | ||||
Financial assets: | ||||
Cash and cash equivalents, Fair Value | 134,129,000 | 114,514,000 | ||
Accrued interest receivable, Fair Value | 15,517,000 | 12,663,000 | ||
Financial liabilities: | ||||
Accrued interest payable, Fair Value | 3,323,000 | 2,682,000 | ||
Level 2 | ||||
Financial assets: | ||||
Securities - Held to maturity, Fair value | 0 | 27,498,000 | ||
Financial liabilities: | ||||
Deposits, Fair Value | 2,616,034,000 | 2,014,922,000 | ||
Customer repurchase agreements, Fair Value | 11,488,000 | 10,490,000 | ||
Federal Home Loan Bank advances, Fair Value | 365,000,000 | 230,000,000 | ||
Subordinated notes, Fair Value | 52,310,000 | 50,920,000 | ||
Junior subordinated debentures, Fair Value | 41,563,000 | 32,905,000 | ||
Level 3 | ||||
Financial assets: | ||||
Securities - Held to maturity, Fair value | 7,527,000 | 3,323,000 | ||
Loans not previously presented, net, Fair Value | 2,800,362,000 | $ 2,002,487,000 | ||
Loans included in assets held for sale, net, Fair Value | $ 69,268,000 |
Related-Party Transactions - Sc
Related-Party Transactions - Schedule of Loans to Principal Officers, Directors, and their Affiliates (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 29,285 | $ 35,765 |
New loans and advances | 14,440 | 88,711 |
Effect of changes in composition of related parties | (15,004) | (6,018) |
Repayments | (2,109) | (89,173) |
Ending balance | $ 26,612 | $ 29,285 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Amount of deposits held | $ 9,360,000 | $ 14,634,000 | |
Asset management fees | 1,717,000 | 6,574,000 | $ 5,646,000 |
Held to Maturity Securities, Amortized Cost | 8,557,000 | 29,352,000 | |
Trinitas | |||
Related Party Transaction [Line Items] | |||
Asset management fees | 521,000 | 907,000 | $ 0 |
Collateralized Loan Obligation Funds | |||
Related Party Transaction [Line Items] | |||
Held to Maturity Securities, Amortized Cost | 8,557,000 | 3,380,000 | |
Collateralized Loan Obligation Funds | Trinitas IV, V and VI | |||
Related Party Transaction [Line Items] | |||
Held to Maturity Securities, Amortized Cost | $ 8,557,000 | $ 3,380,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Triumph Bancorp Inc | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to Risk Weighted Assets) Actual Amount | $ 436,036 | $ 342,059 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 13.20% | 14.60% |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 264,026 | $ 187,449 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 367,958 | $ 277,605 |
Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 11.10% | 11.80% |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 198,019 | $ 140,587 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 320,265 | $ 238,439 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 9.70% | 10.20% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 148,514 | $ 105,440 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Tier 1 Capital (to Average Assets) Actual Amount | $ 367,958 | $ 277,605 |
Tier 1 Capital (to Average Assets) Actual Ratio | 11.80% | 10.90% |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Amount | $ 124,754 | $ 102,303 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
TBK Bank SSB | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total capital (to Risk Weighted Assets) Actual Amount | $ 361,068 | $ 293,313 |
Total Capital (to Risk Weighted Assets) Actual Ratio | 11.40% | 12.90% |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 254,139 | $ 181,640 |
Total Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 317,674 | $ 227,050 |
Total Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 341,910 | $ 277,593 |
Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 10.80% | 12.20% |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 190,603 | $ 136,230 |
Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 254,137 | $ 181,640 |
Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Amount | $ 341,910 | $ 277,593 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Actual Ratio | 10.80% | 12.20% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Amount | $ 142,952 | $ 102,173 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) Minimum for Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 206,486 | $ 147,583 |
Common Equity Tier 1 Capital (to Risk Weighted Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 Capital (to Average Assets) Actual Amount | $ 341,910 | $ 277,593 |
Tier 1 Capital (to Average Assets) Actual Ratio | 11.10% | 11.00% |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Amount | $ 123,088 | $ 100,802 |
Tier 1 Capital (to Average Assets) Minimum for Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 153,860 | $ 126,002 |
Tier 1 Capital (to Average Assets) To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Regulatory Capital Requirements [Abstract] | ||
Capital conservation buffer rate in 2016 | 0.625% | |
Capital conservation buffer rate increase in 2017 | 0.625% | |
Capital conservation buffer rate increase in 2018 | 0.625% | |
Capital conservation buffer rate in 2019 | 2.50% | |
Capital conservation buffer rate | 1.25% | 0.625% |
Equity and Noncontrolling In114
Equity and Noncontrolling Interests - Summary of Capital Structure (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | ||
Shares authorized | 50,000,000 | 50,000,000 |
Shares issued | 20,912,396 | 18,154,365 |
Treasury shares | 91,951 | 76,118 |
Shares outstanding | 20,820,445 | 18,078,247 |
Par value per share | $ 0.01 | $ 0.01 |
Series A Preferred Dividends | ||
Class Of Stock [Line Items] | ||
Shares authorized | 50,000 | 50,000 |
Shares issued | 45,500 | 45,500 |
Shares outstanding | 45,500 | 45,500 |
Par value per share | $ 0.01 | $ 0.01 |
Liquidation preference per share | $ 100 | $ 100 |
Liquidation preference amount | $ 4,550 | $ 4,550 |
Series B Preferred Dividends | ||
Class Of Stock [Line Items] | ||
Shares authorized | 115,000 | 115,000 |
Shares issued | 51,076 | 51,956 |
Shares outstanding | 51,076 | 51,956 |
Par value per share | $ 0.01 | $ 0.01 |
Liquidation preference per share | $ 100 | $ 100 |
Liquidation preference amount | $ 5,108 | $ 5,196 |
Equity and Noncontrolling In115
Equity and Noncontrolling Interests - Additional Information (Details) - USD ($) | Aug. 02, 2017 | Aug. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2012 |
Class Of Stock [Line Items] | ||||||
Stock issued during period shares | 2,530,000 | |||||
Shares issued price per share | $ 27.50 | |||||
Gross proceeds from issuance of common stock | $ 69,575,000 | |||||
Net proceeds after underwriting discounts and offering expenses | $ 65,509,000 | $ 65,509,000 | ||||
Exercise price of warrants, per share | $ 11.58 | |||||
Warrant expiration date | Dec. 12, 2022 | |||||
Stock issued during period shares warrants excercised | 153,134 | |||||
Maximum time to receive shares at special events | 30 days | |||||
Series A Preferred Dividends | ||||||
Class Of Stock [Line Items] | ||||||
Dividend rate | Prime + 2% | Prime + 2% | ||||
Dividend rate | 8.00% | 8.00% | ||||
Company's redemption rights modified date | Oct. 15, 2018 | |||||
Conversion ratio - preferred to common | 6.94008 | |||||
Number of preferred stock converted | 0 | 0 | 0 | |||
Series B Preferred Dividends | ||||||
Class Of Stock [Line Items] | ||||||
Dividend rate | 8.00% | 8.00% | ||||
Company's redemption rights modified date | Oct. 15, 2018 | |||||
Conversion ratio - preferred to common | 6.94008 | |||||
Number of preferred stock converted | 880 | 0 | 0 | |||
880 Shares of Preferred Stock Series B | ||||||
Class Of Stock [Line Items] | ||||||
Liquidation preference value | $ 88,000 | |||||
Common stock issued upon conversion | 6,106 | |||||
Warrant | ||||||
Class Of Stock [Line Items] | ||||||
Warrants issued to Triumph Consolidated Cos LLC | 259,067 | |||||
Over-Allotment Option | ||||||
Class Of Stock [Line Items] | ||||||
Stock issued during period shares | 330,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation | $ 1,801 | $ 2,367 | $ 3,077 | |
2014 Omnibus Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares approved for issuance | 1,200,000 | |||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total unrecognized compensation cost | $ 798 | |||
Weighted-average period to recognize cost | 2 years 10 months 2 days | |||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation, award vesting period | 3 years | |||
2014 Omnibus Incentive Plan | Restricted Stock Awards (RSAs) | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation, award vesting period | 4 years | |||
2014 Omnibus Incentive Plan | Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock based compensation, award vesting period | 4 years | |||
Weighted-average period to recognize cost | 2 years 10 months 6 days | |||
Employees stock options contractual terms | 10 years | |||
Total unrecognized compensation cost | $ 512 |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Changes in Company's Nonvested Restricted Stock Awards (Details) - Restricted Stock Awards (RSAs) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested Shares, Beginning balance | shares | 126,644 |
Nonvested Shares, Granted | shares | 45,732 |
Nonvested Shares, Vested | shares | (67,964) |
Nonvested Shares, Forfeited | shares | (1,636) |
Nonvested Shares, Ending balance | shares | 102,776 |
Weighted Average Grant Date Fair Value, Nonvested, Beginning balance | $ / shares | $ 14.92 |
Weighted Average Grant Date Fair Value, Nonvested, Granted | $ / shares | 25.80 |
Weighted Average Grant Date Fair Value, Nonvested, Vested | $ / shares | 16.50 |
Weighted Average Grant Date Fair Value, Nonvested, Forfeited | $ / shares | 16.61 |
Weighted Average Grant Date Fair Value, Nonvested, Ending balance | $ / shares | $ 18.68 |
Stock Based Compensation - S118
Stock Based Compensation - Summary of Changes in Company's Stock Options (Details) - Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock Options, Beginning Balance | shares | 163,661 |
Stock Options, Granted | shares | 58,729 |
Stock Options, Exercised | shares | (34,977) |
Stock Options, Forfeited or expired | shares | (2,085) |
Stock Options, Ending Balance | shares | 185,328 |
Stock Options, Fully vested shares and shares expected to vest at December 31, 2017 | shares | 185,328 |
Stock Options, Shares exercisable at December 31, 2017 | shares | 31,742 |
Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 15.87 |
Weighted Average Exercise Price, Granted | $ / shares | 25.80 |
Weighted Average Exercise Price, Exercised | $ / shares | 15.87 |
Weighted Average Exercise Price, Forfeited or expired | $ / shares | 19.69 |
Weighted Average Exercise Price, Ending Balance | $ / shares | 18.97 |
Weighted Average Exercise Price, Fully vested shares and shares expected to vest at December 31, 2017 | $ / shares | 18.97 |
Weighted Average Exercise Price, Shares exercisable at December 31, 2017 | $ / shares | $ 15.87 |
Weighted Average Remaining Contractual Term, Outstanding at December 31, 2017 | 8 years 6 months 25 days |
Weighted Average Remaining Contractual Term, Fully vested shares and shares expected to vest at December 31, 2017 | 8 years 6 months 25 days |
Weighted Average Remaining Contractual Term, Shares exercisable at December 31, 2017 | 8 years 3 months |
Aggregate Intrinsic Value, Outstanding at December 31, 2017 | $ | $ 2,321 |
Aggregate Intrinsic Value, Fully vested shares and shares expected to vest at December 31, 2017 | $ | 2,321 |
Aggregate Intrinsic Value, Shares exercisable at Decembet 31, 2017 | $ | $ 496 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Information Related to Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Cash received from option exercises | $ 283 | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Aggregate intrinsic value of options exercised | 251 | |
Cash received from option exercises | 283 | |
Tax benefit realized from option exercises | $ 88 | |
Weighted average fair value of options granted | $ 8.71 | $ 5.85 |
Stock Based Compensation - Fair
Stock Based Compensation - Fair Value of Stock Options Granted Using Weighted-Average Assumptions (Details) - Stock Options | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rate | 2.11% | 1.49% |
Expected term | 6 years 3 months | 6 years 3 months |
Expected stock price volatility | 29.70% | 34.96% |
Parent Company Only Condense121
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
ASSETS | |||||
Cash and cash equivalents | $ 134,129 | $ 114,514 | $ 105,277 | $ 160,888 | |
Held to Maturity Securities, Amortized Cost | 8,557 | 29,352 | |||
Loans | 2,792,108 | 2,012,219 | |||
Other assets | 32,109 | 48,121 | |||
Total assets | 3,499,033 | 2,641,067 | |||
LIABILITIES AND EQUITY | |||||
Subordinated notes | 48,828 | 48,734 | |||
Junior subordinated debentures | 38,623 | 32,740 | |||
Total liabilities | 3,107,335 | 2,351,722 | |||
Stockholders' equity | 391,698 | 289,345 | |||
Total liabilities and stockholders' equity | 3,499,033 | 2,641,067 | |||
Parent Company | |||||
ASSETS | |||||
Cash and cash equivalents | 47,826 | 10,222 | $ 21,749 | $ 52,553 | |
Held to Maturity Securities, Amortized Cost | 8,557 | 3,380 | |||
Loans | 11,046 | 984 | |||
Investment in bank subsidiary | 407,050 | 320,629 | |||
Investment in non-bank subsidiaries | 12,650 | 15,634 | |||
Other assets | 4,880 | 29,149 | |||
Total assets | 492,009 | 379,998 | |||
LIABILITIES AND EQUITY | |||||
Subordinated notes | 48,828 | 48,734 | |||
Junior subordinated debentures | 38,623 | 32,740 | |||
Intercompany payables | 10,169 | 8,500 | |||
Accrued expenses and other liabilities | 2,691 | 1,351 | |||
Total liabilities | 100,311 | 91,325 | |||
Stockholders' equity | [1] | 391,698 | 288,673 | ||
Total liabilities and stockholders' equity | $ 492,009 | $ 379,998 | |||
[1] | During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016: Year Ended December 31, (Dollars in thousands) 2016 Parent company stockholders' equity $288,673 Parent company loss on intercompany sale of loans 794 TBK Bank discount accretion (122) Consolidated stockholders' equity $289,345 |
Parent Company Only Condense122
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Condensed Income Statements Captions [Line Items] | ||||||||||||
Interest income | $ 52,217 | $ 45,137 | $ 43,538 | $ 36,332 | $ 37,774 | $ 33,471 | $ 28,354 | $ 24,893 | $ 177,224 | $ 124,492 | $ 98,760 | |
Interest expense | (6,421) | (5,625) | (4,981) | (4,513) | (4,230) | (3,053) | (2,447) | (2,404) | (21,540) | (12,134) | (8,109) | |
Provision for loan losses | (1,931) | (572) | (1,447) | (7,678) | (2,446) | (2,819) | (1,939) | 511 | (11,628) | (6,693) | (4,529) | |
Gain on sale of subsidiary | 20,860 | 20,860 | ||||||||||
Other income | 3,998 | 4,171 | 5,202 | 6,425 | 19,796 | 18,180 | ||||||
Loss on intercompany sale of loans | (794) | |||||||||||
Salaries and employee benefits | (72,696) | (54,531) | (50,175) | |||||||||
Other expense | (15,422) | (11,849) | (9,516) | |||||||||
Income tax (expense) benefit | (8,327) | (5,104) | (5,331) | (6,116) | (4,134) | (3,099) | (2,679) | (2,897) | (24,878) | (12,809) | (8,421) | |
Net income | 6,305 | 9,782 | 9,660 | 10,473 | 6,261 | 4,807 | 4,626 | 5,006 | 36,220 | 20,700 | 29,133 | |
Dividends on preferred stock | (194) | (195) | (193) | (192) | (197) | (301) | (195) | (194) | (774) | (887) | (780) | |
Net income available to common stockholders | $ 6,111 | $ 9,587 | $ 9,467 | $ 10,281 | $ 6,064 | $ 4,506 | $ 4,431 | $ 4,812 | 35,446 | 19,813 | 28,353 | |
Parent Company | ||||||||||||
Condensed Income Statements Captions [Line Items] | ||||||||||||
Interest income | 1,415 | 793 | 718 | |||||||||
Interest expense | (5,300) | (2,262) | (291) | |||||||||
Provision for loan losses | (91) | |||||||||||
Gain on sale of subsidiary | 20,860 | |||||||||||
Other income | 1,572 | 2,991 | 1,040 | |||||||||
Loss on intercompany sale of loans | [1] | (794) | ||||||||||
Salaries and employee benefits | (5,686) | (581) | (2,781) | |||||||||
Other expense | (3,138) | (1,940) | (3,099) | |||||||||
Income (loss) before income tax and undistributed subsidiary income | 9,632 | (1,793) | (4,413) | |||||||||
Income tax (expense) benefit | (3,087) | (487) | 700 | |||||||||
Equity in undistributed subsidiary income | 30,347 | 22,308 | 32,846 | |||||||||
Net income | 36,892 | 20,028 | 29,133 | |||||||||
Dividends on preferred stock | (774) | (887) | (780) | |||||||||
Net income available to common stockholders | 36,118 | 19,141 | 28,353 | |||||||||
Comprehensive income attributable to Parent | $ 35,900 | $ 20,147 | $ 28,459 | |||||||||
[1] | During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016: Year Ended December 31, (Dollars in thousands) 2016 Parent company stockholders' equity $288,673 Parent company loss on intercompany sale of loans 794 TBK Bank discount accretion (122) Consolidated stockholders' equity $289,345 |
Parent Company Only Condense123
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Cash Flows (Details) - USD ($) | Aug. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||||||||||||
Net income | $ 6,305,000 | $ 9,782,000 | $ 9,660,000 | $ 10,473,000 | $ 6,261,000 | $ 4,807,000 | $ 4,626,000 | $ 5,006,000 | $ 36,220,000 | $ 20,700,000 | $ 29,133,000 | ||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Net accretion of securities | 638,000 | 2,285,000 | 590,000 | ||||||||||
Amortization of junior subordinated debentures | 413,000 | 325,000 | 264,000 | ||||||||||
Amortization of subordinated notes issuance costs | 94,000 | 23,000 | |||||||||||
Loss on intercompany sale of loans | 794,000 | ||||||||||||
Loss on sale of loans | 80,000 | (154,000) | |||||||||||
Income from CLO warehouse investments | (2,226,000) | (3,184,000) | (1,151,000) | ||||||||||
(Increase) decrease in other assets | 1,515,000 | 1,197,000 | 1,075,000 | ||||||||||
Net cash provided by (used in) operating activities | 47,273,000 | 30,983,000 | 25,296,000 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Purchases of securities held to maturity | (5,092,000) | (29,117,000) | |||||||||||
Proceeds from maturities, calls, and pay downs of securities held to maturity | 28,216,000 | 136,000 | |||||||||||
Purchases of loans (shared national credits) | (995,000) | (28,619,000) | |||||||||||
Proceeds from sale of loans | 3,834,000 | 24,538,000 | |||||||||||
Net change in loans | (586,120,000) | (295,315,000) | (252,390,000) | ||||||||||
Net cash paid for CLO warehouse investments | (10,000,000) | (25,000,000) | (20,500,000) | ||||||||||
Net proceeds from CLO warehouse investments | 30,000,000 | 25,500,000 | 2,450,000 | ||||||||||
Net cash provided by (used in) investing activities | (379,771,000) | (273,556,000) | (389,133,000) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from issuance of subordinated notes, net | 48,676,000 | ||||||||||||
Issuance of common stock, net of expenses | $ 65,509,000 | 65,509,000 | |||||||||||
Dividends on preferred stock | (774,000) | (887,000) | (780,000) | ||||||||||
Purchase of treasury stock | (366,000) | (654,000) | (343,000) | ||||||||||
Stock option exercises | 283,000 | ||||||||||||
Net cash provided by (used in) financing activities | 352,113,000 | 251,810,000 | 308,226,000 | ||||||||||
Net increase (decrease) in cash and cash equivalents | 19,615,000 | 9,237,000 | (55,611,000) | ||||||||||
Cash and cash equivalents at beginning of period | 114,514,000 | 105,277,000 | 114,514,000 | 105,277,000 | 160,888,000 | ||||||||
Cash and cash equivalents at end of period | 134,129,000 | 114,514,000 | 134,129,000 | 114,514,000 | 105,277,000 | ||||||||
TARP Preferred Stock | |||||||||||||
Cash flows from financing activities: | |||||||||||||
Redemption of TARP preferred stock | (10,500,000) | ||||||||||||
Parent Company | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | 36,892,000 | 20,028,000 | 29,133,000 | ||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||
Equity in undistributed subsidiary income | (30,347,000) | (22,308,000) | (32,846,000) | ||||||||||
Net accretion of securities | (800,000) | (174,000) | |||||||||||
Amortization of junior subordinated debentures | 413,000 | 325,000 | 67,000 | ||||||||||
Amortization of subordinated notes issuance costs | 94,000 | 23,000 | |||||||||||
Loss on intercompany sale of loans | [1] | 794,000 | |||||||||||
Loss on sale of loans | 80,000 | ||||||||||||
Income from CLO warehouse investments | (2,226,000) | (3,184,000) | (1,151,000) | ||||||||||
(Increase) decrease in other assets | 6,689,000 | 3,293,000 | 980,000 | ||||||||||
Change in accrued expenses and other liabilities | 2,950,000 | (5,279,000) | 10,316,000 | ||||||||||
Net cash provided by (used in) operating activities | 13,665,000 | (6,402,000) | 6,499,000 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Investment in subsidiaries | (6,199,000) | 14,295,000 | 325,000 | ||||||||||
Purchases of securities held to maturity | (5,092,000) | (3,342,000) | |||||||||||
Proceeds from maturities, calls, and pay downs of securities held to maturity | 715,000 | 136,000 | |||||||||||
Purchases of loans (shared national credits) | (18,601,000) | ||||||||||||
Proceeds from sale of loans | 16,058,000 | ||||||||||||
Net change in loans | (10,062,000) | 539,000 | 146,000 | ||||||||||
Net cash paid for CLO warehouse investments | (10,000,000) | (25,000,000) | (20,500,000) | ||||||||||
Net proceeds from CLO warehouse investments | 30,000,000 | 25,500,000 | 2,450,000 | ||||||||||
Cash used in acquisition of subsidiaries, net | (40,075,000) | (69,946,000) | |||||||||||
Net cash provided by (used in) investing activities | (40,713,000) | (41,760,000) | (36,180,000) | ||||||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from issuance of subordinated notes, net | 48,676,000 | ||||||||||||
Issuance of common stock, net of expenses | 65,509,000 | ||||||||||||
Dividends on preferred stock | (774,000) | (887,000) | (780,000) | ||||||||||
Purchase of treasury stock | (366,000) | (654,000) | (343,000) | ||||||||||
Stock option exercises | 283,000 | ||||||||||||
Net cash provided by (used in) financing activities | 64,652,000 | 36,635,000 | (1,123,000) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 37,604,000 | (11,527,000) | (30,804,000) | ||||||||||
Cash and cash equivalents at beginning of period | $ 10,222,000 | $ 21,749,000 | 10,222,000 | 21,749,000 | 52,553,000 | ||||||||
Cash and cash equivalents at end of period | $ 47,826,000 | $ 10,222,000 | $ 47,826,000 | 10,222,000 | $ 21,749,000 | ||||||||
Parent Company | TARP Preferred Stock | |||||||||||||
Cash flows from financing activities: | |||||||||||||
Redemption of TARP preferred stock | $ (10,500,000) | ||||||||||||
[1] | During the year ended December 31, 2016, a loss was recorded by the parent company as the result of an intercompany sale of loans to its subsidiary, TBK Bank, at the loans’ fair value. The discount on the purchase of the loans recorded by TBK Bank was fully amortized during the year ended December 31, 2017. The parent company loss on sale of the loans and the TBK Bank discount were eliminated in consolidation. The following table presents a reconciliation of parent company stockholders’ equity to consolidated stockholders’ equity at for the year ended December 31, 2016: Year Ended December 31, (Dollars in thousands) 2016 Parent company stockholders' equity $288,673 Parent company loss on intercompany sale of loans 794 TBK Bank discount accretion (122) Consolidated stockholders' equity $289,345 |
Parent Company Only Condense124
Parent Company Only Condensed Financial Information - Condensed Parent Company Only Statements of Cash Flows (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ||
Parent company stockholders' equity | $ 288,673 | |
Parent company loss on intercompany sale of loans | 794 | |
TBK Bank discount accretion | (122) | |
Consolidated stockholders' equity | $ 289,345 | $ 391,698 |
Earnings Per Share - Factors Us
Earnings Per Share - Factors Used in Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic | |||||||||||
Net income to common stockholders | $ 6,111 | $ 9,587 | $ 9,467 | $ 10,281 | $ 6,064 | $ 4,506 | $ 4,431 | $ 4,812 | $ 35,446 | $ 19,813 | $ 28,353 |
Weighted average common shares outstanding | 19,133,745 | 17,856,828 | 17,720,479 | ||||||||
Basic earnings per common share | $ 0.29 | $ 0.48 | $ 0.53 | $ 0.57 | $ 0.34 | $ 0.25 | $ 0.25 | $ 0.27 | $ 1.85 | $ 1.11 | $ 1.60 |
Diluted | |||||||||||
Net income to common stockholders | $ 6,111 | $ 9,587 | $ 9,467 | $ 10,281 | $ 6,064 | $ 4,506 | $ 4,431 | $ 4,812 | $ 35,446 | $ 19,813 | $ 28,353 |
Dilutive effect of preferred stock | 774 | 780 | |||||||||
Net income to common stockholders - diluted | $ 36,220 | $ 19,813 | $ 29,133 | ||||||||
Weighted average common shares outstanding | 19,133,745 | 17,856,828 | 17,720,479 | ||||||||
Dilutive effects of: | |||||||||||
Average shares and dilutive potential common shares | 20,000,288 | 18,053,531 | 18,524,889 | ||||||||
Diluted earnings per common share | $ 0.29 | $ 0.47 | $ 0.51 | $ 0.55 | $ 0.33 | $ 0.25 | $ 0.25 | $ 0.27 | $ 1.81 | $ 1.10 | $ 1.57 |
Restricted Stock | |||||||||||
Dilutive effects of: | |||||||||||
Stock based compensation | 68,079 | 110,565 | 79,821 | ||||||||
Stock Options | |||||||||||
Dilutive effects of: | |||||||||||
Stock based compensation | 45,653 | 3,128 | |||||||||
Antidilutive shares | 57,926 | ||||||||||
Series A Preferred Dividends | |||||||||||
Dilutive effects of: | |||||||||||
Assumed conversion of shares | 315,773 | 315,773 | |||||||||
Antidilutive shares | 315,773 | ||||||||||
Series B Preferred Dividends | |||||||||||
Dilutive effects of: | |||||||||||
Assumed conversion of shares | 354,471 | 360,578 | |||||||||
Antidilutive shares | 360,578 | ||||||||||
Warrant | |||||||||||
Dilutive effects of: | |||||||||||
Assumed exercises of stock warrants | 82,567 | 83,010 | 48,238 |
Business Segment Information -
Business Segment Information - Additional Information (Details) | Mar. 31, 2017 |
Triumph Capital Advisors, LLC | |
Segment Reporting Information [Line Items] | |
Percentage of membership interests sold | 100.00% |
Business Segment Information127
Business Segment Information - Banking Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | $ 52,217 | $ 45,137 | $ 43,538 | $ 36,332 | $ 37,774 | $ 33,471 | $ 28,354 | $ 24,893 | $ 177,224 | $ 124,492 | $ 98,760 |
Total interest expense | 6,421 | 5,625 | 4,981 | 4,513 | 4,230 | 3,053 | 2,447 | 2,404 | 21,540 | 12,134 | 8,109 |
Net interest income | 45,796 | 39,512 | 38,557 | 31,819 | 33,544 | 30,418 | 25,907 | 22,489 | 155,684 | 112,358 | 90,651 |
Provision for loan losses | 1,931 | 572 | 1,447 | 7,678 | 2,446 | 2,819 | 1,939 | (511) | 11,628 | 6,693 | 4,529 |
Net interest income after provision for loan losses | 43,865 | 38,940 | 37,110 | 24,141 | 31,098 | 27,599 | 23,968 | 23,000 | 144,056 | 105,665 | 86,122 |
Gain on sale of subsidiary | 20,860 | 20,860 | |||||||||
Bargain purchase gain | 15,117 | ||||||||||
Other noninterest income | 3,998 | 4,171 | 5,202 | 6,425 | 19,796 | 18,180 | |||||
Noninterest income | 3,998 | 4,171 | 5,202 | 27,285 | 6,208 | 6,099 | 3,668 | 4,981 | 40,656 | 20,956 | 33,297 |
Noninterest expense | 33,231 | 28,225 | 27,321 | 34,837 | 26,911 | 25,792 | 20,331 | 20,078 | 123,614 | 93,112 | 81,865 |
Operating income (loss) | 14,632 | $ 14,886 | $ 14,991 | $ 16,589 | 10,395 | $ 7,906 | $ 7,305 | $ 7,903 | 61,098 | 33,509 | 37,554 |
Total assets | 3,499,033 | 2,641,067 | 3,499,033 | 2,641,067 | |||||||
Loans | 2,810,856 | 2,027,624 | 2,810,856 | 2,027,624 | |||||||
Operating Segments | Banking | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 130,480 | 90,823 | 65,831 | ||||||||
Intersegment interest allocations | 8,023 | 4,583 | 3,144 | ||||||||
Total interest expense | 16,240 | 9,872 | 6,978 | ||||||||
Net interest income | 122,263 | 85,534 | 61,997 | ||||||||
Provision for loan losses | 9,310 | 6,239 | 3,226 | ||||||||
Net interest income after provision for loan losses | 112,953 | 79,295 | 58,771 | ||||||||
Other noninterest income | 14,336 | 9,644 | |||||||||
Noninterest income | 9,077 | ||||||||||
Noninterest expense | 90,632 | 65,795 | 51,249 | ||||||||
Operating income (loss) | 36,657 | 22,577 | 17,166 | ||||||||
Total assets | 3,444,322 | 2,588,509 | 3,444,322 | 2,588,509 | |||||||
Loans | 2,784,147 | 1,961,552 | 2,784,147 | 1,961,552 | |||||||
Operating Segments | Factoring | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 45,346 | 32,824 | 32,103 | ||||||||
Intersegment interest allocations | (8,023) | (4,583) | (3,144) | ||||||||
Net interest income | 37,323 | 28,241 | 28,959 | ||||||||
Provision for loan losses | 2,227 | 454 | 1,303 | ||||||||
Net interest income after provision for loan losses | 35,096 | 27,787 | 27,656 | ||||||||
Other noninterest income | 2,737 | 1,739 | |||||||||
Noninterest income | 2,256 | ||||||||||
Noninterest expense | 22,641 | 19,551 | 17,871 | ||||||||
Operating income (loss) | 15,192 | 10,492 | 11,524 | ||||||||
Total assets | 360,922 | 223,994 | 360,922 | 223,994 | |||||||
Loans | 346,293 | 212,784 | 346,293 | 212,784 | |||||||
Operating Segments | Asset Management | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 3 | 145 | 108 | ||||||||
Total interest expense | 10 | ||||||||||
Net interest income | 3 | 145 | 98 | ||||||||
Net interest income after provision for loan losses | 3 | 145 | 98 | ||||||||
Bargain purchase gain | 15,117 | ||||||||||
Other noninterest income | 1,717 | 5,757 | |||||||||
Noninterest income | 6,632 | ||||||||||
Noninterest expense | 1,456 | 5,234 | 6,866 | ||||||||
Operating income (loss) | 264 | 1,543 | 14,106 | ||||||||
Total assets | 4,879 | 4,879 | |||||||||
Operating Segments | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total interest income | 1,395 | 700 | 718 | ||||||||
Total interest expense | 5,300 | 2,262 | 1,121 | ||||||||
Net interest income | (3,905) | (1,562) | (403) | ||||||||
Provision for loan losses | 91 | ||||||||||
Net interest income after provision for loan losses | (3,996) | (1,562) | (403) | ||||||||
Gain on sale of subsidiary | 20,860 | ||||||||||
Other noninterest income | 1,006 | 1,040 | |||||||||
Noninterest income | 2,991 | ||||||||||
Noninterest expense | 8,885 | 2,532 | 5,879 | ||||||||
Operating income (loss) | 8,985 | (1,103) | $ (5,242) | ||||||||
Total assets | 504,656 | 391,745 | 504,656 | 391,745 | |||||||
Loans | 11,936 | 1,866 | 11,936 | 1,866 | |||||||
Eliminations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | (810,867) | (568,060) | (810,867) | (568,060) | |||||||
Loans | $ (331,520) | $ (148,578) | $ (331,520) | $ (148,578) |
Quarterly Financial Data (Un128
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 52,217 | $ 45,137 | $ 43,538 | $ 36,332 | $ 37,774 | $ 33,471 | $ 28,354 | $ 24,893 | $ 177,224 | $ 124,492 | $ 98,760 |
Interest expense | 6,421 | 5,625 | 4,981 | 4,513 | 4,230 | 3,053 | 2,447 | 2,404 | 21,540 | 12,134 | 8,109 |
Net interest income | 45,796 | 39,512 | 38,557 | 31,819 | 33,544 | 30,418 | 25,907 | 22,489 | 155,684 | 112,358 | 90,651 |
Provision for loan losses | 1,931 | 572 | 1,447 | 7,678 | 2,446 | 2,819 | 1,939 | (511) | 11,628 | 6,693 | 4,529 |
Net interest income after provision for loan losses | 43,865 | 38,940 | 37,110 | 24,141 | 31,098 | 27,599 | 23,968 | 23,000 | 144,056 | 105,665 | 86,122 |
Gain on sale of subsidiary | 20,860 | 20,860 | |||||||||
Other noninterest income | 3,998 | 4,171 | 5,202 | 6,425 | 19,796 | 18,180 | |||||
Total noninterest income | 3,998 | 4,171 | 5,202 | 27,285 | 6,208 | 6,099 | 3,668 | 4,981 | 40,656 | 20,956 | 33,297 |
Noninterest expense | 33,231 | 28,225 | 27,321 | 34,837 | 26,911 | 25,792 | 20,331 | 20,078 | 123,614 | 93,112 | 81,865 |
Operating income (loss) | 14,632 | 14,886 | 14,991 | 16,589 | 10,395 | 7,906 | 7,305 | 7,903 | 61,098 | 33,509 | 37,554 |
Income tax expense | 8,327 | 5,104 | 5,331 | 6,116 | 4,134 | 3,099 | 2,679 | 2,897 | 24,878 | 12,809 | 8,421 |
Net income | 6,305 | 9,782 | 9,660 | 10,473 | 6,261 | 4,807 | 4,626 | 5,006 | 36,220 | 20,700 | 29,133 |
Dividends on preferred stock | (194) | (195) | (193) | (192) | (197) | (301) | (195) | (194) | (774) | (887) | (780) |
Net income available to common stockholders | $ 6,111 | $ 9,587 | $ 9,467 | $ 10,281 | $ 6,064 | $ 4,506 | $ 4,431 | $ 4,812 | $ 35,446 | $ 19,813 | $ 28,353 |
Earnings per common share | |||||||||||
Basic | $ 0.29 | $ 0.48 | $ 0.53 | $ 0.57 | $ 0.34 | $ 0.25 | $ 0.25 | $ 0.27 | $ 1.85 | $ 1.11 | $ 1.60 |
Diluted | $ 0.29 | $ 0.47 | $ 0.51 | $ 0.55 | $ 0.33 | $ 0.25 | $ 0.25 | $ 0.27 | $ 1.81 | $ 1.10 | $ 1.57 |