Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | IBTX | |
Entity Registrant Name | Independent Bank Group, Inc. | |
Entity Central Index Key | 1,564,618 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,108,394 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 117,398 | $ 153,158 |
Interest-bearing deposits in other banks | 306,798 | 170,889 |
Cash and cash equivalents | 424,196 | 324,047 |
Securities available for sale (amortized cost of $178,386 and $203,277, respectively) | 180,465 | 206,062 |
Loans held for sale | 7,237 | 4,453 |
Loans, net of allowance for loan losses of $21,764 and $18,552, respectively | 3,352,846 | 3,182,045 |
Premises and equipment, net | 88,118 | 88,902 |
Other real estate owned | 2,958 | 4,763 |
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 11,941 | 12,321 |
Bank-owned life insurance (BOLI) | 40,322 | 39,784 |
Deferred tax asset | 2,482 | 2,235 |
Goodwill | 229,818 | 229,457 |
Core deposit intangible, net | 11,716 | 12,455 |
Other assets | 23,628 | 26,115 |
Total assets | 4,375,727 | 4,132,639 |
Deposits: | ||
Noninterest-bearing | 886,087 | 818,022 |
Interest-bearing | 2,581,397 | 2,431,576 |
Total deposits | 3,467,484 | 3,249,598 |
FHLB advances | 194,366 | 229,405 |
Repurchase agreements | 5,374 | 4,012 |
Other borrowings | 68,853 | 69,410 |
Other borrowings, related parties | 2,911 | 3,320 |
Junior subordinated debentures | 18,147 | 18,147 |
Other liabilities | 59,145 | 17,896 |
Total liabilities | $ 3,816,280 | $ 3,591,788 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Series A preferred stock (23,938.35 shares issued and outsanding) | $ 23,938 | $ 23,938 |
Common stock (17,108,394 and 17,032,669 shares outstanding, respectively) | 171 | 170 |
Additional paid-in capital | 478,497 | 476,609 |
Retained earnings | 54,896 | 37,731 |
Accumulated other comprehensive income | 1,945 | 2,403 |
Total stockholders’ equity | 559,447 | 540,851 |
Total liabilities and stockholders’ equity | $ 4,375,727 | $ 4,132,639 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Amortized cost of securities available for sale | $ 178,386 | $ 203,277 |
Allowance for loan losses | $ 21,764 | $ 18,552 |
Preferred stock, shares issued (in shares) | 23,938.35 | 23,938.35 |
Preferred stock, shares outstanding (in shares) | 23,938.35 | 23,938.35 |
Common stock, shares outstanding (shares) | 17,108,394 | 17,032,669 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Interest and fees on loans | $ 41,625 | $ 33,881 | $ 81,205 | $ 58,004 |
Interest on taxable securities | 551 | 777 | 1,160 | 1,476 |
Interest on nontaxable securities | 449 | 367 | 863 | 624 |
Interest on federal funds sold and other | 122 | 53 | 255 | 136 |
Total interest income | 42,747 | 35,078 | 83,483 | 60,240 |
Interest expense: | ||||
Interest on deposits | 3,018 | 2,437 | 5,727 | 4,344 |
Interest on FHLB advances | 718 | 965 | 1,470 | 1,817 |
Interest on repurchase agreements and other borrowings | 1,096 | 136 | 2,165 | 271 |
Interest on junior subordinated debentures | 135 | 136 | 263 | 269 |
Total interest expense | 4,967 | 3,674 | 9,625 | 6,701 |
Net interest income | 37,780 | 31,404 | 73,858 | 53,539 |
Provision for loan losses | 1,659 | 1,379 | 3,329 | 2,632 |
Net interest income after provision for loan losses | 36,121 | 30,025 | 70,529 | 50,907 |
Noninterest income: | ||||
Service charges on deposit accounts | 1,908 | 1,453 | 3,713 | 2,664 |
Mortgage fee income | 1,429 | 967 | 2,729 | 1,697 |
Gain on sale of other real estate | 49 | 0 | 179 | 39 |
Gain on sale of securities available for sale | 90 | 0 | 90 | 0 |
Increase in cash surrender value of BOLI | 268 | 260 | 538 | 409 |
Other | 365 | 439 | 826 | 644 |
Total noninterest income | 4,109 | 3,119 | 8,075 | 5,453 |
Noninterest expense: | ||||
Salaries and employee benefits | 14,650 | 16,112 | 29,074 | 25,246 |
Occupancy | 4,027 | 3,227 | 7,937 | 5,765 |
Data processing | 666 | 452 | 1,354 | 948 |
FDIC assessment | 493 | 516 | 1,012 | 820 |
Advertising and public relations | 253 | 180 | 599 | 414 |
Communications | 554 | 402 | 1,093 | 722 |
Net other real estate owned expenses (including taxes) | 37 | 57 | 96 | 136 |
Operations of IBG Adriatica, net | 0 | 0 | 0 | 23 |
Other real estate impairment | 25 | 0 | 25 | 0 |
Core deposit intangible amortization | 367 | 299 | 739 | 498 |
Professional fees | 677 | 596 | 1,167 | 964 |
Acquisition expense, including legal | 28 | 1,523 | 500 | 1,999 |
Other | 2,678 | 1,979 | 5,245 | 3,884 |
Total noninterest expense | 24,455 | 25,343 | 48,841 | 41,419 |
Income before taxes | 15,775 | 7,801 | 29,763 | 14,941 |
Income tax expense | 5,204 | 2,682 | 9,740 | 5,021 |
Net income | $ 10,571 | $ 5,119 | $ 20,023 | $ 9,920 |
Basic earnings per share (usd per share) | $ 0.61 | $ 0.32 | $ 1.16 | $ 0.70 |
Diluted earnings per share (usd per share) | $ 0.61 | $ 0.32 | $ 1.16 | $ 0.69 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,571 | $ 5,119 | $ 20,023 | $ 9,920 |
Other comprehensive income (loss) before tax: | ||||
Change in net unrealized gains (losses) on available for sale securities during the year | (2,087) | 2,157 | (706) | 4,586 |
Reclassification adjustment for gain on sale of securities available for sale included in net income | (90) | 0 | (90) | 0 |
Other comprehensive income (loss) before tax | (2,177) | 2,157 | (796) | 4,586 |
Income tax expense (benefit) | (821) | 755 | (338) | 1,605 |
Other comprehensive income (loss), net of tax | (1,356) | 1,402 | (458) | 2,981 |
Comprehensive income | $ 9,215 | $ 6,521 | $ 19,565 | $ 12,901 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock $.01 Par Value 100 million shares authorized | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2013 | 12,330,158 | |||||
Beginning balance at Dec. 31, 2013 | $ 233,772 | $ 0 | $ 123 | $ 222,116 | $ 12,663 | $ (1,130) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 9,920 | 9,920 | ||||
Other comprehensive (loss), net of tax | 2,981 | 2,981 | ||||
Restricted stock granted (shares) | 189,069 | |||||
Restricted stock granted | 0 | $ 2 | (2) | |||
Stock based compensation expense | 1,170 | 1,170 | ||||
Income tax benefit (deficiency) on restricted stock vested | 1,022 | 1,022 | ||||
Preferred stock dividends | (49) | (49) | ||||
Dividends ($0.16 per share in 2015 and $0.12 per share in 2014) | (1,738) | (1,738) | ||||
Series A preferred stock issued | 23,938 | 23,938 | ||||
Common stock issued for acquisition of bank (shares) | 3,851,480 | |||||
Common stock issued for acquisition of bank | 220,075 | $ 39 | 220,036 | |||
Ending balance (in shares) at Jun. 30, 2014 | 16,370,707 | |||||
Ending balance at Jun. 30, 2014 | 491,091 | 23,938 | $ 164 | 444,342 | 20,796 | 1,851 |
Beginning balance (in shares) at Dec. 31, 2014 | 17,032,669 | |||||
Beginning balance at Dec. 31, 2014 | 540,851 | 23,938 | $ 170 | 476,609 | 37,731 | 2,403 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 20,023 | 20,023 | ||||
Other comprehensive (loss), net of tax | (458) | (458) | ||||
Offering costs related to acquired bank | (144) | (144) | ||||
Restricted stock granted (shares) | 87,124 | |||||
Restricted stock granted | 0 | $ 1 | (1) | |||
Stock based compensation expense | 2,099 | 2,099 | ||||
Income tax benefit (deficiency) on restricted stock vested | (66) | (66) | ||||
Preferred stock dividends | (120) | (120) | ||||
Dividends ($0.16 per share in 2015 and $0.12 per share in 2014) | (2,738) | (2,738) | ||||
Ending balance (in shares) at Jun. 30, 2015 | 17,108,394 | |||||
Ending balance at Jun. 30, 2015 | $ 559,447 | $ 23,938 | $ 171 | $ 478,497 | $ 54,896 | $ 1,945 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (usd per share) | $ 0.16 | $ 0.12 |
Common stock par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Preferred stock par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 20,023 | $ 9,920 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 3,074 | 2,435 |
Amortization of core deposit intangibles | 739 | 498 |
Amortization of premium on securities, net | 772 | 942 |
Stock based compensation expense | 2,099 | 1,170 |
FHLB stock dividends | (22) | (17) |
Gain on sale of securities available for sale | (90) | 0 |
Gain recognized on other real estate transactions | (179) | (39) |
Impairment of other real estate | 25 | 0 |
Deferred tax (benefit) expense | 194 | (7) |
Provision for loan losses | 3,329 | 2,632 |
Increase in cash surrender value of life insurance | (538) | (409) |
Loans originated for sale | (113,721) | (63,946) |
Proceeds from sale of loans | 110,937 | 61,829 |
Net change in other assets | 4,681 | (1,018) |
Net change in other liabilities | (12,252) | (5,679) |
Net cash provided by operating activities | 19,071 | 8,311 |
Cash flows from investing activities: | ||
Proceeds from maturities, calls and pay downs of securities available for sale | 171,680 | 48,967 |
Proceeds from sale of securities available for sale | 12,128 | 0 |
Purchases of securities available for sale | (156,599) | (21,514) |
Net purchases of FHLB stock | 402 | 2,519 |
Net loans originated | (173,971) | (264,091) |
Additions to premises and equipment | (4,290) | (1,577) |
Proceeds from sale of premises and equipment | 0 | 11 |
Proceeds from sale of other real estate owned | 1,437 | 1,255 |
Capitalized additions to other real estate | (10) | (28) |
Cash received from acquired banks | 0 | 167,771 |
Cash paid in connection with acquisitions | 0 | (44,010) |
Net cash used in investing activities | (149,223) | (110,697) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 175,533 | 59,416 |
Net increase in time deposits | 42,353 | 157,466 |
Net change in FHLB advances | (35,039) | (13,041) |
Net change in repurchase agreements | 1,362 | 199 |
Proceeds from short-term borrowing | 50,000 | 0 |
Repayments of other borrowings | (966) | 0 |
Offering costs paid in connection with acquired banks | (144) | (442) |
Dividends paid | (2,798) | (1,738) |
Net cash provided by financing activities | 230,301 | 201,860 |
Net change in cash and cash equivalents | 100,149 | 99,474 |
Cash and cash equivalents at beginning of year | 324,047 | 93,054 |
Cash and cash equivalents at end of period | $ 424,196 | $ 192,528 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations: Independent Bank Group, Inc. (IBG) through its subsidiary, Independent Bank, a Texas state banking corporation (Bank) (collectively known as the Company), provides a full range of banking services to individual and corporate customers in the North Texas, Central Texas and Houston areas through its various branch locations in those areas. The Company is engaged in traditional community banking activities, which include commercial and retail lending, deposit gathering, investment and liquidity management activities. The Company’s primary deposit products are demand deposits, money market accounts and certificates of deposit, and its primary lending products are commercial business and real estate, real estate mortgage and consumer loans. Basis of Presentation: The accompanying consolidated financial statements include the accounts of IBG, its wholly-owned subsidiaries, the Bank and IBG Adriatica Holdings, Inc. (Adriatica) and the Bank’s wholly-owned subsidiaries, IBG Real Estate Holdings, Inc. and IBG Aircraft Acquisition, Inc. Adriatica was formed in 2011 to acquire a mixed use residential and retail real estate development in McKinney, Texas. Adriatica became inactive during the first quarter of 2014. All material intercompany transactions and balances have been eliminated in consolidation. In addition, the Company wholly-owns IB Trust I (Trust I), IB Trust II (Trust II), IB Trust III (Trust III), IB Centex Trust I (Centex Trust I) and Community Group Statutory Trust I (CGI Trust I). The Trusts were formed to issue trust preferred securities and do not meet the criteria for consolidation. The consolidated interim financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report of Form10-K for the year ended December 31, 2014. The consolidated statement of condition at December 31, 2014 had been derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Segment Reporting: The Company has one reportable segment. The Company’s chief operating decision-maker uses consolidated results to make operating and strategic decisions. Subsequent events: Companies are required to evaluate events and transactions that occur after the balance sheet date but before the date the financial statements are issued. They must recognize in the financial statements the effect of all events or transactions that provide additional evidence of conditions that existed at the balance sheet date, including the estimates inherent in the financial statement preparation process. Entities shall not recognize the impact of events or transactions that provide evidence about conditions that did not exist at the balance sheet date but arose after that date. The Company has evaluated subsequent events through the date of filing these financial statements with the SEC and noted no subsequent events requiring financial statement recognition or disclosure, except as disclosed in Note 12. Earnings per share: Basic earnings per common share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. The unvested share-based payment awards that contain rights to non forfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock warrants. The dilutive effect of participating non vested common stock was not included as it was anti-dilutive. Proceeds from the assumed exercise of dilutive stock warrants are assumed to be used to repurchase common stock at the average market price. Three Months Ended September 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic earnings per share: Net income $ 10,571 $ 5,119 $ 20,023 $ 9,920 Less: Preferred stock dividends (60 ) (49 ) (120 ) (49 ) Net income after preferred stock dividends 10,511 5,070 19,903 9,871 Less: Undistributed earnings allocated to participating securities 183 80 362 140 Dividends paid on participating securities 27 18 58 29 Net income available to common shareholders $ 10,301 $ 4,972 $ 19,483 $ 9,702 Weighted-average basic shares outstanding 16,769,194 15,483,257 16,740,881 13,951,830 Basic earnings per share $ 0.61 $ 0.32 $ 1.16 $ 0.70 Diluted earnings per share: Net income available to common shareholders $ 10,301 $ 4,972 $ 19,483 $ 9,702 Total weighted-average basic shares outstanding 16,769,194 15,483,257 16,740,881 13,951,830 Add dilutive stock warrants 87,023 101,383 82,852 101,513 Total weighted-average diluted shares outstanding 16,856,217 15,584,640 16,823,733 14,053,343 Diluted earnings per share $ 0.61 $ 0.32 $ 1.16 $ 0.69 Anti-dilutive participating securities 24,379 142,125 43,661 90,203 |
Statement of Cash Flows
Statement of Cash Flows | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flows | Statement of Cash Flows As allowed by the accounting standards, the Company has chosen to report on a net basis its cash receipts and cash payments for time deposits accepted and repayments of those deposits, and loans made to customers and principal collections on those loans. The Company uses the indirect method to present cash flows from operating activities. Other supplemental cash flow information is presented below: Six Months Ended June 30, 2015 2014 Cash transactions: Interest expense paid $ 9,805 $ 6,483 Income taxes paid $ 12,900 $ 5,625 Noncash transactions: Accrued preferred stock dividends $ 60 $ 49 Transfers of loans to other real estate owned $ — $ 120 Loans to facilitate the sale of other real estate owned $ 159 $ 48 Securities purchased, not yet settled $ 3,000 $ 1,746 Excess tax benefit (tax deficiency) on restricted stock vested $ (66 ) $ 1,022 Transfer of bank premises to other real estate $ — $ 391 The supplemental schedule of noncash investing activities from Company acquisition activity is as follows: Six Months Ended June 30, 2015 2014 Assets acquired Cash and cash equivalents $ — $ 167,771 Securities available for sale — 75,881 Loans — 858,065 Premises and equipment — 9,811 Other real estate owned — 1,191 Goodwill — 171,722 Core deposit intangibles — 8,147 Other assets — 27,624 Total assets $ — $ 1,320,212 Liabilities assumed: Deposits $ — $ 925,712 Repurchase agreements — 3,733 FHLB advances — 95,000 Other liabilities — 7,302 Total liabilities $ — $ 1,031,747 Cash paid to shareholders of acquired banks $ — $ 44,010 Series A preferred stock exchanged in connection with acquired bank $ — $ 23,938 Fair value of common stock issued to shareholders of acquired banks $ — $ 220,517 In addition, the following measurement-period adjustments were made during the period relating to Company acquisition activity: Six Months Ended June 30, 2015 2014 Assets acquired: Loans $ — $ (328 ) Goodwill 361 749 Other real estate owned (373 ) — Core deposit intangibles — (18 ) Deferred tax asset 193 109 Other assets — 10 Total assets $ 181 $ 522 Liabilities assumed: Deposits $ — $ 505 Other liabilities 181 17 Total liabilities $ 181 $ 522 |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
Securities Available for Sale | Securities Available for Sale Securities available for sale have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities and their approximate fair values at June 30, 2015 and December 31, 2014, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale June 30, 2015: U.S. treasuries $ 999 $ 7 $ — $ 1,006 Government agency securities 55,374 304 (136 ) 55,542 Obligations of state and municipal subdivisions 72,810 1,324 (764 ) 73,370 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 49,203 1,344 — 50,547 $ 178,386 $ 2,979 $ (900 ) $ 180,465 December 31, 2014: U.S. treasuries $ 999 $ 7 $ — $ 1,006 Government agency securities 58,174 199 (350 ) 58,023 Obligations of state and municipal subdivisions 75,599 1,837 (537 ) 76,899 Corporate bonds 1,068 13 — 1,081 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 67,437 1,616 — 69,053 $ 203,277 $ 3,672 $ (887 ) $ 206,062 At June 30, 2015, three securities totaling $3,000 were purchased but did not settle until after month-end. In addition, the Company purchased a $50,000 treasury bill, which is recorded in cash and cash equivalents on the accompanying balance sheet due to the short term maturity. The payable for these purchases is reflected in other liabilities in the accompanying balance sheet. Securities with a carrying amount of approximately $ 154,054 and $ 174,741 at June 30, 2015 and December 31, 2014, respectively, were pledged to secure public fund deposits and repurchase agreements. Proceeds from sale of securities available for sale and gross gains and gross losses for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds from sale 12,128 — 12,128 — Gross gains 90 — 90 — Gross losses — — — — The amortized cost and estimated fair value of securities available for sale at June 30, 2015 , by contractual maturity, are shown below. Maturities of pass-through certificates will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 2,475 $ 2,476 Due from one year to five years 57,431 57,460 Due from five to ten years 32,263 32,505 Thereafter 37,014 37,477 129,183 129,918 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 49,203 50,547 $ 178,386 $ 180,465 The number of securities, unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2015 and December 31, 2014, are summarized as follows: Less Than 12 Months Greater Than 12 Months Total Description of Securities Number of Securities Estimated Fair Value Unrealized Losses Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Securities Available for Sale June 30, 2015 Government agency securities 4 $ 6,286 $ (12 ) 10 $ 17,875 $ (124 ) $ 24,161 $ (136 ) Obligations of state and municipal subdivisions 51 20,601 (227 ) 23 10,455 (537 ) 31,056 (764 ) 55 $ 26,887 $ (239 ) 33 $ 28,330 $ (661 ) $ 55,217 $ (900 ) December 31, 2014 Government agency securities 6 $ 6,396 $ (24 ) 14 $ 22,671 $ (326 ) $ 29,067 $ (350 ) Obligations of state and municipal subdivisions 44 16,636 (197 ) 13 8,541 (340 ) 25,177 (537 ) 50 $ 23,032 $ (221 ) 27 $ 31,212 $ (666 ) $ 54,244 $ (887 ) Unrealized losses are generally due to changes in interest rates. The Company has the intent to hold these securities until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their cost basis. As such, the losses are deemed to be temporary. |
Loans, Net and Allowance for Lo
Loans, Net and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Loan Losses Loans, net at June 30, 2015 and December 31, 2014, consisted of the following: June 30, December 31, 2015 2014 Commercial $ 685,944 $ 672,052 Real estate: Commercial 1,654,277 1,450,434 Commercial construction, land and land development 286,656 334,964 Residential 527,760 514,025 Single family interim construction 136,395 138,278 Agricultural 37,313 38,822 Consumer 47,031 52,267 Other 177 242 3,375,553 3,201,084 Deferred loan fees (943 ) (487 ) Allowance for loan losses (21,764 ) (18,552 ) $ 3,352,846 $ 3,182,045 The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and non-performing and potential problem loans. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short term loans may be made on an unsecured basis. Additionally, our commercial loan portfolio includes loans made to customers in the energy industry, which is a complex, technical and cyclical industry. Experienced bankers with specialized energy lending experience originate our energy loans. Companies in this industry produce, extract, develop, exploit and explore for oil and natural gas. Loans are primarily collateralized with proven producing oil and gas reserves based on a technical evaluation of these reserves. At June 30, 2015 and December 31, 2014, there were approximately $ 226.6 million and $ 231.7 million of exploration and production (E&P) energy loans outstanding, respectively. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors the diversification of the portfolio on a quarterly basis by type and geographic location. Management also tracks the level of owner occupied property versus non owner occupied property. Land and commercial land development loans are underwritten using feasibility studies, independent appraisal reviews and financial analysis of the developers or property owners. Generally, borrowers must have a proven track record of success. Commercial construction loans are generally based upon estimates of cost and value of the completed project. These estimates may not be accurate. Commercial construction loans often involve the disbursement of substantial funds with the repayment dependent on the success of the ultimate project. Sources of repayment for these loans may be pre-committed permanent financing or sale of the developed property. The loans in this portfolio are geographically diverse and due to the increased risk are monitored closely by management and the board of directors on a quarterly basis. Residential real estate and single family interim construction loans are underwritten primarily based on borrowers’ credit scores, documented income and minimum collateral values. Relatively small loan amounts are spread across many individual borrowers, which minimizes risk in the residential portfolio. In addition, management evaluates trends in past dues and current economic factors on a regular basis. Agricultural loans are collateralized by real estate and/or agricultural-related assets. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods limited to twenty years. Agricultural non-real estate loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines to grain farmers to plant and harvest corn and soybeans. Specific underwriting standards have been established for agricultural-related loans, including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. Agricultural loans carry significant credit risks as they involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Consumer loans represent less than 2% of the outstanding total loan portfolio. Collateral consists primarily of automobiles and other personal assets. Credit score analysis is used to supplement the underwriting process. Most of the Company’s lending activity occurs within the State of Texas, primarily in the north, central and southeast Texas regions. A large percentage of the Company’s portfolio consists of commercial and residential real estate loans. As of June 30, 2015 and December 31, 2014 , there were no concentrations of loans related to a single industry in excess of 10% of total loans. The allowance for loan losses is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance is derived from the following two components: 1) allowances established on individual impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates, and 2) allowances based on actual historical loss experience for the last three years for similar types of loans in the Company’s loan portfolio adjusted for primarily changes in the lending policies and procedures; collection, charge-off and recovery practices; nature and volume of the loan portfolio; volume and severity of nonperforming loans; existence and effect of any concentrations of credit and the level of such concentrations and current, national and local economic and business conditions. This second component also includes an unallocated allowance to cover uncertainties that could affect management’s estimate of probable losses. The unallocated allowance reflects the imprecision inherent in the underlying assumptions used in the methodologies for estimating this component. The Company’s management continually evaluates the allowance for loan losses determined from the allowances established on individual loans and the amounts determined from historical loss percentages adjusted for the qualitative factors above. Should any of the factors considered by management change, the Company’s estimate of loan losses could also change and would affect the level of future provision expense. While the calculation of the allowance for loan losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for loan losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Loans requiring an allocated loan loss provision are generally identified at the servicing officer level based on review of weekly past due reports and/or the loan officer’s communication with borrowers. In addition, past due loans are discussed at weekly officer loan committee meetings to determine if classification is warranted. The Company’s credit department has implemented an internal risk based loan review process to identity potential internally classified loans that supplements the annual independent external loan review. The external review generally covers all loans greater than $2.4 million . These reviews include analysis of borrower’s financial condition, payment histories and collateral values to determine if a loan should be internally classified. Generally, once classified, an impaired loan analysis is completed by the credit department to determine if the loan is impaired and the amount of allocated allowance required. The Texas economy, specifically the Company’s lending area of north, central and southeast Texas, has generally performed better than certain other parts of the country. However, the recent drop in oil prices has the potential to have negative impact on the Texas economy. The risk of loss associated with all segments of the portfolio could increase due to this impact. The economy and other risk factors are minimized by the Company’s underwriting standards, which include the following principles: 1) financial strength of the borrower including strong earnings, high net worth, significant liquidity and acceptable debt to worth ratio, 2) managerial business competence, 3) ability to repay, 4) loan to value, 5) projected cash flow and 6) guarantor financial statements as applicable. The following is a summary of the activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2015 and 2014 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended June 30, 2015 Balance at the beginning of period $ 6,078 $ 10,654 $ 2,194 $ 734 $ 238 $ 156 $ — $ 173 $ 20,227 Provision for loan losses 658 1,054 122 4 (4 ) 57 — (232 ) 1,659 Charge-offs (106 ) — — — — (41 ) — — (147 ) Recoveries 2 12 2 — — 9 — — 25 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Six months ended June 30, 2015 Balance at the beginning of period $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Provision for loan losses 1,681 1,580 109 69 (12 ) 86 — (184 ) 3,329 Charge-offs (106 ) — — — — (77 ) — — (183 ) Recoveries 6 30 4 — — 26 — — 66 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Three months ended June 30, 2014 Balance at the beginning of period $ 2,620 $ 8,117 $ 2,278 $ 536 $ 244 $ 353 $ — $ 693 $ 14,841 Provision for loan losses 1,056 945 42 38 28 16 — (746 ) 1,379 Charge-offs (5 ) — (31 ) — — (28 ) — — (64 ) Recoveries 5 38 2 10 — 8 — — 63 Balance at end of period $ 3,676 $ 9,100 $ 2,291 $ 584 $ 272 $ 349 $ — $ (53 ) $ 16,219 Six months ended June 30, 2014 Balance at the beginning of period $ 2,401 $ 7,872 $ 2,440 $ 577 $ 238 $ 363 $ — $ 69 $ 13,960 Provision for loan losses 1,634 1,201 (121 ) (4 ) 34 10 — (122 ) 2,632 Charge-offs (368 ) (21 ) (32 ) — — (42 ) — — (463 ) Recoveries 9 48 4 11 — 18 — — 90 Balance at end of period $ 3,676 $ 9,100 $ 2,291 $ 584 $ 272 $ 349 $ — $ (53 ) $ 16,219 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of June 30, 2015 and December 31, 2014: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total June 30, 2015 Allowance for losses: Individually evaluated for impairment $ 1,629 $ 126 $ 10 $ — $ — $ — $ — $ — $ 1,765 Collectively evaluated for impairment 5,003 11,594 2,308 738 234 181 — (59 ) 19,999 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Loans: Individually evaluated for impairment $ 5,677 $ 6,291 $ 3,280 $ — $ — $ 82 $ — $ — $ 15,330 Collectively evaluated for impairment 677,232 1,889,844 522,808 136,395 37,313 46,924 177 — 3,310,693 Acquired with deteriorated credit quality 3,035 44,798 1,672 — — 25 — — 49,530 Ending balance $ 685,944 $ 1,940,933 $ 527,760 $ 136,395 $ 37,313 $ 47,031 $ 177 $ — $ 3,375,553 December 31, 2014 Allowance for losses: Individually evaluated for impairment $ 339 $ 124 $ 8 $ — $ — $ 4 $ — $ — $ 475 Collectively evaluated for impairment 4,712 9,986 2,197 669 246 142 — 125 18,077 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Loans: Individually evaluated for impairment $ 1,479 $ 6,768 $ 3,387 $ — $ — $ 75 $ — $ — $ 11,709 Collectively evaluated for impairment 666,830 1,724,514 508,833 138,278 38,822 52,159 242 — 3,129,678 Acquired with deteriorated credit quality 3,743 54,116 1,805 — — 33 — — 59,697 Ending balance $ 672,052 $ 1,785,398 $ 514,025 $ 138,278 $ 38,822 $ 52,267 $ 242 $ — $ 3,201,084 Nonperforming loans by loan class at June 30, 2015 and December 31, 2014, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2015 Nonaccrual loans $ 5,654 $ 150 $ 683 $ — $ — $ 78 $ — $ 6,565 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 23 4,166 2,584 — — 4 — 6,777 $ 5,677 $ 4,316 $ 3,267 $ — $ — $ 82 $ — $ 13,342 December 31, 2014 Nonaccrual loans $ 1,449 $ 70 $ 2,117 $ — $ — $ 67 $ — $ 3,703 Loans past due 90 days and still accruing 157 288 — — — 6 — 451 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 30 4,668 1,254 — — 8 — 5,960 $ 1,636 $ 5,026 $ 3,371 $ — $ — $ 81 $ — $ 10,114 The accrual of interest is discontinued on a loan when management believes after considering collection efforts and other factors that the borrower's financial condition is such that collection of interest is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Impaired loans are those loans where it is probable that all amounts due will not be collected according to contractual terms of the loan agreement. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on 1) the present value of expected future cash flows discounted at the loans effective interest rate; 2) the loan's observable market price; or 3) the fair value of collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use the other methods to determine the level of impairment of a loan if such loan is not collateral dependent. All commercial, real estate, agricultural loans and troubled debt restructurings are considered for individual impairment analysis. Smaller balance consumer loans are collectively evaluated for impairment. Impaired loans by loan class at June 30, 2015 and December 31, 2014, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2015 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 5,631 $ 1,536 $ 67 $ — $ — $ — $ — $ 7,234 Impaired loans with no allowance for loan losses 46 4,755 3,213 — — 82 — 8,096 Total $ 5,677 $ 6,291 $ 3,280 $ — $ — $ 82 $ — $ 15,330 Unpaid principal balance of impaired loans $ 5,687 $ 6,792 $ 3,419 $ — $ — $ 121 $ — $ 16,019 Allowance for loan losses on impaired loans $ 1,629 $ 126 $ 10 $ — $ — $ — $ — $ 1,765 December 31, 2014 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 1,475 $ 2,056 $ 13 $ — $ — $ 7 $ — $ 3,551 Impaired loans with no allowance for loan losses 4 4,712 3,374 — — 68 — 8,158 Total $ 1,479 $ 6,768 $ 3,387 $ — $ — $ 75 $ — $ 11,709 Unpaid principal balance of impaired loans $ 1,482 $ 7,274 $ 3,605 $ — $ — $ 93 $ — $ 12,454 Allowance for loan losses on impaired loans $ 339 $ 124 $ 8 $ — $ — $ 4 $ — $ 475 For the three months ended June 30, 2015 Average recorded investment in impaired loans $ 5,788 $ 6,389 $ 3,248 $ — $ — $ 79 $ — $ 15,504 Interest income recognized on impaired loans $ 22 $ 97 $ 63 $ — $ — $ — $ — $ 182 For the six months ended June 30, 2015 Average recorded investment in impaired loans $ 4,352 $ 6,515 $ 3,294 $ — $ — $ 78 $ — $ 14,239 Interest income recognized on impaired loans $ 43 $ 192 $ 93 $ — $ — $ 1 $ — $ 329 For the three months ended June 30, 2014 Average recorded investment in impaired loans $ 197 $ 7,835 $ 3,210 $ — $ — $ 54 $ — $ 11,296 Interest income recognized on impaired loans $ 2 $ 109 $ 49 $ — $ — $ — $ — $ 160 For the six months ended June 30, 2014 Average recorded investment in impaired loans $ 298 $ 7,894 $ 3,200 $ 57 $ — $ 59 $ — $ 11,508 Interest income recognized on impaired loans $ 5 $ 233 $ 78 $ — $ — $ 1 $ — $ 317 Certain impaired loans have adequate collateral and do not require a related allowance for loan loss. The Company will charge off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. The restructuring of a loan is considered a “troubled debt restructuring” if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. A “troubled debt restructured” loan is identified as impaired and measured for credit impairment as of each reporting period in accordance with the guidance in Accounting Standards Codification (ASC) 310-10-35. The recorded investment in troubled debt restructurings, including those on nonaccrual, was $6,791 and $7,302 as of June 30, 2015 and December 31, 2014. Following is a summary of loans modified under troubled debt restructurings during the three months ended June 30, 2015 and 2014 : . Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total Troubled debt restructurings during the three months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the six months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the three months ended June 30, 2014 Number of contracts — 1 — — — — — 1 Pre-restructuring outstanding recorded investment $ — $ 408 $ — $ — $ — $ — $ — $ 408 Post-restructuring outstanding recorded investment $ — $ 408 $ — $ — $ — $ — $ — $ 408 Troubled debt restructurings during the six months ended June 30, 2014 Number of contracts — 2 — — — — — 2 Pre-restructuring outstanding recorded investment $ — $ 1,108 $ — $ — $ — $ — $ — $ 1,108 Post-restructuring outstanding recorded investment $ — $ 1,108 $ — $ — $ — $ — $ — $ 1,108 At June 30, 2015 and 2014, there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three and six months ended June 30, 2015 and 2014, respectively. At June 30, 2015 and 2014, the Company had no commitments to lend additional funds to any borrowers with loans whose terms have been modified under troubled debt restructurings. Modifications primarily relate to extending the amortization periods of the loans and interest rate concessions. The majority of these loans were identified as impaired prior to restructuring; therefore, the modifications did not materially impact the Company’s determination of the allowance for loan losses. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents information regarding the aging of past due loans by loan class as of June 30, 2015 and December 31, 2014: Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans June 30, 2015 Commercial $ 189 $ 5,628 $ 5,817 $ 680,127 $ 685,944 Commercial real estate, land and land development 1,098 — 1,098 1,939,835 1,940,933 Residential real estate 477 395 872 526,888 527,760 Single-family interim construction — — — 136,395 136,395 Agricultural — — — 37,313 37,313 Consumer 1,541 25 1,566 45,465 47,031 Other — — — 177 177 $ 3,305 $ 6,048 $ 9,353 $ 3,366,200 $ 3,375,553 December 31, 2014 Commercial $ 6,006 $ 157 $ 6,163 $ 665,889 $ 672,052 Commercial real estate, land and land development 973 288 1,261 1,784,137 1,785,398 Residential real estate 1,258 554 1,812 512,213 514,025 Single-family interim construction 410 — 410 137,868 138,278 Agricultural — — — 38,822 38,822 Consumer 1,899 8 1,907 50,360 52,267 Other — — — 242 242 $ 10,546 $ 1,007 $ 11,553 $ 3,189,531 $ 3,201,084 The Company’s internal classified report is segregated into the following categories: 1) Pass/Watch, 2) Other Assets Especially Mentioned (OAEM), 3) Substandard and 4) Doubtful. The loans placed in the Pass/Watch category reflect the Company’s opinion that the loans reflect potential weakness that requires monitoring on a more frequent basis. The loans in the OAEM category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk and warrant extra attention. These loans are reviewed monthly by officers and senior management to determine if a change in category is warranted. The loans placed in the Substandard category are considered to be potentially inadequately protected by the current debt service capacity of the borrower and/or the pledged collateral. These credits, even if apparently protected by collateral value, have shown weakness related to adverse financial, managerial, economic, market or political conditions, which may jeopardize repayment of principal and interest. There is possibility that some future loss could be sustained by the Company if such weakness is not corrected. The Doubtful category includes loans that are in default or principal exposure is probable. Substandard and Doubtful loans are individually evaluated to determine if they should be classified as impaired and an allowance is allocated if deemed necessary under ASC 310-10. The loans that are not impaired are included with the remaining “pass” credits in determining the portion of the allowance for loan loss based on historical loss experience and other qualitative factors. The portfolio is segmented into categories including: commercial loans, consumer loans, commercial real estate loans, residential real estate loans and agricultural loans. The adjusted historical loss percentage is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20. A summary of loans by credit quality indicator by class as of June 30, 2015 and December 31, 2014 , is as follows: Pass Pass/ Watch OAEM Substandard Doubtful Total June 30, 2015 Commercial $ 539,351 $ 91,716 $ 48,809 $ 6,068 $ — $ 685,944 Commercial real estate, construction, land and land development 1,918,918 5,637 5,894 10,484 — 1,940,933 Residential real estate 520,133 1,997 1,032 4,598 — 527,760 Single-family interim construction 136,395 — — — — 136,395 Agricultural 37,258 55 — — — 37,313 Consumer 46,806 79 38 108 — 47,031 Other 177 — — — — 177 $ 3,199,038 $ 99,484 $ 55,773 $ 21,258 $ — $ 3,375,553 December 31, 2014 Commercial $ 647,894 $ 16,919 $ 977 $ 6,262 $ — $ 672,052 Commercial real estate, construction, land and land development 1,759,533 8,667 6,008 11,190 — 1,785,398 Residential real estate 505,920 2,188 325 5,592 — 514,025 Single-family interim construction 138,278 — — — — 138,278 Agricultural 38,422 57 — 343 — 38,822 Consumer 52,055 39 50 123 — 52,267 Other 242 — — — — 242 $ 3,142,344 $ 27,870 $ 7,360 $ 23,510 $ — $ 3,201,084 The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired (PCI) loans). Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. There are no PCI loans outstanding for acquisitions prior to 2012. No additional PCI loans were acquired during the six months ended June 30, 2015. The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans by acquired bank as of the respective acquisition date for the acquisitions occurring in 2014: Acquisition Date October 1, 2014 April 15, 2014 January 1, 2014 Houston City Bancshares, Inc. BOH Holdings, Inc. Live Oak Financial Corp. Outstanding balance $ 12,021 $ 55,718 $ 3,583 Nonaccretable difference (1,240 ) (5,798 ) (519 ) Accretable yield (561 ) (2,579 ) (182 ) Carrying amount $ 10,220 $ 47,341 $ 2,882 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at June 30, 2015 and December 31, 2014, were as follows: June 30, 2015 December 31, 2014 Outstanding balance $ 57,476 $ 69,371 Carrying amount 49,530 59,697 There was no allocation established in the allowance for loan losses relating to PCI loans at June 30, 2015 or December 31, 2014. The changes in accretable yield during the six months ended June 30, 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. Activity in accretable yield for the six months ended June 30, 2014 was not material. Balance at January 1, 2015 $ 2,546 Additions — Accretion (460 ) Transfers from nonaccretable 748 Balance at June 30, 2015 $ 2,834 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. The commitments involve, to varying degrees, elements of credit and interest rate 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 is represented by the contractual amount of this instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At June 30, 2015 and December 31, 2014 , the approximate amounts of these financial instruments were as follows: June 30, December 31, 2015 2014 Commitments to extend credit $ 657,881 $ 565,881 Standby letters of credit 6,471 8,571 $ 664,352 $ 574,452 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 drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, farm crops, property, plant and equipment and income-producing commercial properties. Letters of credit are written conditional commitments used by the Company to guarantee the performance of a customer to a third party. The Company’s policies generally require that letter of credit arrangements contain security and debt covenants similar to those contained in loan arrangements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the table above. If the commitment is funded, the Company would be entitled to seek recovery from the customer. As of June 30, 2015 and December 31, 2014 , no amounts have been recorded as liabilities for the Company’s potential obligations under these guarantees. Litigation The Company is involved in certain legal actions arising from normal business activities. Management believes that the outcome of such proceedings will not materially affect the financial position, results of operations or cash flows of the Company. Independent Bank is a party to a legal proceeding inherited by Independent Bank in connection with its acquisition of BOH Holdings, Inc. and its subsidiary, Bank of Houston. Please see Part II, Item 1. for more details on this lawsuit. Lease Commitments The Company leases certain branch facilities and other facilities. Rent expense related to these leases amounted to $ 501 and $984 for the three and six months ended June 30, 2015, respectively, and $ 318 and $516 for the three and six months ended June 30, 2014, respectively. Other In March 2015, the Company entered into a purchase agreement totaling $8,800 to purchase a new aircraft for the Company. Through June 30, 2015, the Company has made payments totaling $2,000 with the remaining $6,800 due at time of delivery of the aircraft, which is scheduled for September 2015. The Company is currently in negotiations to sell its current aircraft. |
Repurchase Agreements and Other
Repurchase Agreements and Other Borrowings | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Repurchase Agreements and Other Borrowings | Repurchase Agreements and Other Borrowings At June 30, 2015 and December 31, 2014, repurchase agreements totaled $5,374 and $4,012 , respectively. Securities held in safekeeping totaling $ 6,544 are pledged as security on these repurchase agreement accounts. Other borrowings, including those borrowings due to related parties totaled $71,764 and $72,730 at June 30, 2015 and December 31, 2014, respectively. Scheduled principal payments of $625 and $341 were made on January 15, 2015 and April 15, 2015, respectively, for subordinated debentures issued to individuals. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three and six months ended June 30, 2015 and 2014 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense for the period $ 5,204 $ 2,682 $ 9,740 $ 5,021 Effective tax rate 33.0 % 34.4 % 32.7 % 33.6 % The effective tax rates differ from the statutory federal tax rate of 35% largely due to tax exempt interest income earned on certain investment securities and loans and the nontaxable earnings on bank owned life insurance. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The following table represents assets reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2015 and December 31, 2014 by level within the ASC Topic 820 fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using Assets/ Liabilities Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,006 $ — $ 1,006 $ — Government agency securities 55,542 — 55,542 — Obligations of state and municipal subdivisions 73,370 — 73,370 — Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 50,547 — 50,547 — December 31, 2014 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,006 $ — $ 1,006 $ — Government agency securities 58,023 — 58,023 — Obligations of state and municipal subdivisions 76,899 — 76,899 — Corporate bonds 1,081 — 1,081 — Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 69,053 — 69,053 — There were no transfers between level categorizations and no changes in valuation methodologies for the periods presented. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury and other yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. In accordance with ASC Topic 820, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the assets carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at June 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at Reporting Date Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Period Ended Total Losses June 30, 2015 Measured on a nonrecurring basis: Assets: Impaired loans $ 3,339 $ — $ — $ 3,339 $ 1,291 Other real estate 209 — — 209 $ 25 December 31, 2014 Measured on a nonrecurring basis: Assets: Impaired loans $ 4,943 $ — $ — $ 4,943 $ 188 Other real estate 138 — — 138 22 Impaired loans (loans which are not expected to repay all principal and interest amounts due in accordance with the original contractual terms) are measured at an observable market price (if available) or at the fair value of the loan’s collateral (if collateral dependent). Fair value of the loan’s collateral is determined by appraisals or independent valuation, which is then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. Therefore, the Company has categorized its impaired loans as Level 3. The Company has no nonfinancial assets or nonfinancial liabilities measured at fair value on a recurring basis. Other real estate is measured at fair value on a nonrecurring basis (upon initial recognition or subsequent impairment). Other real estate is classified within Level 3 of the valuation hierarchy. When transferred from the loan portfolio, other real estate is adjusted to fair value less estimated selling costs and is subsequently carried at the lower of carrying value or fair value less estimated selling costs. The fair value is determined using an external appraisal process, discounted based on internal criteria. In addition, mortgage loans held for sale are required to be measured at the lower of cost or fair value. The fair value of mortgage loans held for sale is based upon binding quotes or bids from third party investors. As of June 30, 2015 and December 31, 2014, all mortgage loans held for sale were recorded at cost. The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Loans and loans held for sale: For variable-rate loans that reprice frequently and have no significant changes in credit risk, fair values are based on carrying values. Fair values for certain mortgage loans (for example, one-to-four family residential), commercial real estate and commercial 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. Federal Home Loan Bank of Dallas and other restricted stock: The carrying value of restricted securities such as stock in the Federal Home Loan Bank of Dallas and Independent Bankers Financial Corporation approximates fair value. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Home Loan Bank advances, line of credit and federal funds purchased: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Repurchase agreements and other borrowings: The carrying value of repurchase agreements approximates fair value due to the short term nature. The fair values of private subordinated debentures are based upon prevailing rates on similar debt in the market place. The subordinated notes that are publicly traded are valued based on indicative bid prices based upon market pricing observations in the current market. Junior subordinated debentures: The fair value of junior subordinated debentures is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Accrued interest: The carrying amounts of accrued interest approximate their fair values. Off-balance sheet instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of commitments is not material. The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial instruments were as follows at June 30, 2015 and December 31, 2014: Fair Value Measurements at Reporting Date Using Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets: Cash and cash equivalents $ 424,196 $ 424,196 $ 424,196 $ — $ — Securities available for sale 180,465 180,465 — 180,465 — Loans held for sale 7,237 7,237 — 7,237 — Loans, net 3,352,846 3,367,536 — 3,362,067 5,469 FHLB of Dallas stock and other restricted stock 11,941 11,941 — 11,941 — Accrued interest receivable 9,483 9,483 — 9,483 — Financial liabilities: Deposits 3,467,484 3,470,459 — 3,470,459 — Accrued interest payable 2,739 2,739 — 2,739 — FHLB advances 194,366 202,278 — 202,278 — Repurchase agreements 5,374 5,374 — 5,374 — Other borrowings 71,764 74,241 — 74,241 — Junior subordinated debentures 18,147 18,120 — 18,120 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2014 Financial assets: Cash and cash equivalents $ 324,047 $ 324,047 $ 324,047 $ — $ — Securities available for sale 206,062 206,062 — 206,062 — Loans held for sale 4,453 4,453 — 4,453 — Loans, net 3,182,045 3,203,337 — 3,200,261 3,076 FHLB of Dallas stock and other restricted stock 12,321 12,321 — 12,321 — Accrued interest receivable 9,655 9,655 — 9,655 — Financial liabilities: Deposits 3,249,598 3,252,114 — 3,252,114 — Accrued interest payable 2,919 2,919 — 2,919 — FHLB advances 229,405 228,607 — 228,607 — Repurchase agreements 4,012 4,012 — 4,012 — Other borrowings 72,730 75,164 — 75,164 — Junior subordinated debentures 18,147 18,134 — 18,134 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — |
Stock Awards and Stock Warrants
Stock Awards and Stock Warrants | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Awards and Stock Warrants | Stock Awards and Stock Warrants The Company grants common stock awards to certain employees of the Company. The common stock issued prior to 2013 vests five years from the date the award is granted and the related compensation expense is recognized over the vesting period. In connection with the initial public offering in April 2013, the Board of Directors adopted a new 2013 Equity Incentive Plan. Under this plan, the Compensation Committee may grant awards in the form of restricted stock, restricted stock rights, restricted stock units, qualified and nonqualified stock options, performance-based share awards and other equity-based awards. The Plan reserved 800,000 shares of common stock to be awarded by the Company’s compensation committee. The shares currently issued under the 2013 Plan are restricted and will vest evenly over the required employment period, generally ranging from three to five years. Shares granted under a previous plan prior to 2012 and those in and subsequent to 2013 under the 2013 Equity Incentive Plan were issued at the date of grant and receive dividends. Shares issued under a revised plan in 2012 are not outstanding shares of the Company until they vest and do not receive dividends. The following table summarizes the activity in nonvested shares for the six months ended June 30, 2015 and 2014 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2014 373,886 $ 41.58 Granted during the period 87,124 31.41 Vested during the period (79,642 ) 42.18 Forfeited during the period (14,599 ) 28.82 Nonvested shares, June 30, 2015 366,769 $ 40.19 Nonvested shares, December 31, 2013 306,524 $ 22.75 Granted during the period 189,069 56.70 Vested during the period (113,964 ) 19.93 Nonvested shares, June 30, 2014 381,629 $ 40.41 Compensation expense related to these awards is recorded based on the fair value of the award at the date of grant and totaled $1,002 and $2,099 for the three and six months ended June 30, 2015 , respectively and $780 and $1,170 for the three and six months ended June 30, 2014, respectively. Compensation expense is recorded in salaries and employee benefits in the accompanying consolidated statements of income. At June 30, 2015 , future compensation expense is estimated to be $12,559 and will be recognized over a remaining weighted average period of 3.56 years. The fair value of common stock awards that vested during the six months ended June 30, 2015 and 2014 was $3,045 and $6,015 , respectively. The Company has recorded $ (66) and $ 1,022 to additional paid in capital, which represents the income tax deficiency and excess tax benefit, respectively, recognized on the vested shares for the six months ended June 30, 2015 and 2014, respectively. At June 30, 2015 , the future vesting schedule of the nonvested shares is as follows: First year 106,359 Second year 131,752 Third year 92,058 Fourth year 34,600 Fifth year 2,000 Total nonvested shares 366,769 The Company has warrants outstanding representing the right to purchase 150,544 shares of Company stock at $17.19 per share to certain Company directors and shareholders. The warrants were issued in return for the shareholders' agreement to repurchase the subordinated debt outstanding to an unaffiliated bank in the event of Company default. The subordinated debt was paid off by the Company in 2013. The warrants expire in December 2018. |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Under banking law, there are legal restrictions limiting the amount of dividends the Bank can declare. Approval of the regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. For state banks, subject to regulatory capital requirements, payment of dividends is generally allowed to the extent of net profits. The Company (on a consolidated basis) and the 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 consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of 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. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the "Basel III Capital Rules"). The Basel III Capital Rules, among other things, (i) introduce a new capital measure called "Common Equity Tier 1" ("CET1"), (ii) specify that Tier 1 capital consist of Common Equity Tier 1 and "Additional Tier 1 Capital" instruments meeting specified requirements, (iii) define Common Equity Tier 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to Common Equity Tier 1 and not to the other components of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for the Company on January 1, 2015 with certain transition provisions fully phased in on January 1, 2019. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of June 30, 2015 and December 31, 2014, the Company and the Bank meet all capital adequacy requirements to which they are subject. As of June 30, 2015 and December 31, 2014, the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized," the Bank must maintain minimum total risk based, CET1, Tier 1 risk based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The actual capital amounts and ratios of the Company and Bank as of June 30, 2015 and December 31, 2014, are presented in the following table: Actual Minimum for Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30, 2015 Total capital to risk weighted assets: Consolidated $ 428,491 12.05 % $ 284,542 8.00 % N/A N/A Bank 423,024 11.90 284,338 8.00 $ 355,423 10.00 % Tier 1 capital to risk weighted assets: Consolidated 337,669 9.49 213,407 6.00 N/A N/A Bank 401,260 11.29 213,254 6.00 284,338 8.00 % Common equity tier 1 to risk weighted assets Consolidated 296,131 8.33 160,055 4.50 N/A N/A Bank 401,260 11.29 159,940 4.50 231,025 6.50 % Tier 1 capital to average assets: Consolidated 337,669 8.40 160,876 4.00 N/A N/A Bank 401,260 9.99 160,727 4.00 200,909 5.00 % December 31, 2014 Total capital to risk weighted assets: Consolidated $ 402,326 12.59 % $ 255,633 8.00 % N/A N/A Bank 397,512 12.46 255,219 8.00 $ 319,024 10.00 % Tier 1 capital to risk weighted assets: Consolidated 314,136 9.83 127,817 4.00 N/A N/A Bank 378,960 11.88 127,609 4.00 191,414 6.00 % Tier 1 capital to average assets: Consolidated 314,136 8.15 154,270 4.00 N/A N/A Bank 378,960 9.93 152,598 4.00 190,747 5.00 % |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations BOH Holdings During the six months ended June 30, 2015, the Company made measurement-period adjustments to previously-reported acquisition accounting estimates for the April 15, 2014 acquisition of BOH Holdings. Additional termination accruals were identified that related to BOH accounts that existed prior to the acquisition and resulted in increases of $118 to goodwill and $63 to deferred tax asset and a decrease of $181 to other liabilities. The measurement period for the BOH Holdings acquisition ended April 15, 2015. Houston Community Bancshares During the six months ended June 30, 2015, the Company made measurement-period adjustments to previously-reported acquisition accounting estimates for the October 1, 2014 acquisition of Houston Community Bancshares (HCB). The adjustments related to the disposition of two other real estate owned properties and the writedown of one other real estate owned property due to a restriction on the property which the Company became aware of that affected the marketability. The adjustment resulted in increases of $243 to goodwill and $130 to deferred tax asset and a decrease to other real estate owned of $373 . |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Line of Credit Renewal On July 22, 2015, the Company renewed its unsecured line of credit with two unrelated commercial banks and increased the line from $35 million to $50 million . The line bears interest at LIBOR plus 2.50% and matures on July 19, 2016. Acquisition of Grand Bank On July 23, 2015, the Company announced that it has entered into a definitive agreement to acquire Grand Bank in Dallas, Texas for an approximate $80.1 million purchase price to be paid with a combination of cash and stock. The transaction is subject to certain conditions, including the approval by Grand Bank’s shareholders and customary regulatory approvals and is expected to close during the fourth quarter of 2015. Declaration of Dividends On July 31, 2015, the Company declared a quarterly cash dividend in the amount of $0.08 per share of common stock to the stockholders of record on August 10, 2015. The dividend will be paid on August 20, 2015. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: The accompanying consolidated financial statements include the accounts of IBG, its wholly-owned subsidiaries, the Bank and IBG Adriatica Holdings, Inc. (Adriatica) and the Bank’s wholly-owned subsidiaries, IBG Real Estate Holdings, Inc. and IBG Aircraft Acquisition, Inc. Adriatica was formed in 2011 to acquire a mixed use residential and retail real estate development in McKinney, Texas. Adriatica became inactive during the first quarter of 2014. All material intercompany transactions and balances have been eliminated in consolidation. In addition, the Company wholly-owns IB Trust I (Trust I), IB Trust II (Trust II), IB Trust III (Trust III), IB Centex Trust I (Centex Trust I) and Community Group Statutory Trust I (CGI Trust I). The Trusts were formed to issue trust preferred securities and do not meet the criteria for consolidation. The consolidated interim financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report of Form10-K for the year ended December 31, 2014. The consolidated statement of condition at December 31, 2014 had been derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. |
Segment Reporting | Segment Reporting: The Company has one reportable segment. The Company’s chief operating decision-maker uses consolidated results to make operating and strategic decisions. |
Subsequent Events | Subsequent events: Companies are required to evaluate events and transactions that occur after the balance sheet date but before the date the financial statements are issued. They must recognize in the financial statements the effect of all events or transactions that provide additional evidence of conditions that existed at the balance sheet date, including the estimates inherent in the financial statement preparation process. Entities shall not recognize the impact of events or transactions that provide evidence about conditions that did not exist at the balance sheet date but arose after that date. The Company has evaluated subsequent events through the date of filing these financial statements with the SEC and noted no subsequent events requiring financial statement recognition or disclosure, except as disclosed in Note 12. |
Earnings Per Share | Earnings per share: Basic earnings per common share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. The unvested share-based payment awards that contain rights to non forfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock warrants. The dilutive effect of participating non vested common stock was not included as it was anti-dilutive. Proceeds from the assumed exercise of dilutive stock warrants are assumed to be used to repurchase common stock at the average market price. |
Allowance for Loan Losses | The allowance is derived from the following two components: 1) allowances established on individual impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates, and 2) allowances based on actual historical loss experience for the last three years for similar types of loans in the Company’s loan portfolio adjusted for primarily changes in the lending policies and procedures; collection, charge-off and recovery practices; nature and volume of the loan portfolio; volume and severity of nonperforming loans; existence and effect of any concentrations of credit and the level of such concentrations and current, national and local economic and business conditions. This second component also includes an unallocated allowance to cover uncertainties that could affect management’s estimate of probable losses. The unallocated allowance reflects the imprecision inherent in the underlying assumptions used in the methodologies for estimating this component. The Company’s management continually evaluates the allowance for loan losses determined from the allowances established on individual loans and the amounts determined from historical loss percentages adjusted for the qualitative factors above. Should any of the factors considered by management change, the Company’s estimate of loan losses could also change and would affect the level of future provision expense. While the calculation of the allowance for loan losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for loan losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. |
Nonaccrual Loan and Lease Status | The accrual of interest is discontinued on a loan when management believes after considering collection efforts and other factors that the borrower's financial condition is such that collection of interest is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Impaired loans are those loans where it is probable that all amounts due will not be collected according to contractual terms of the loan agreement. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on 1) the present value of expected future cash flows discounted at the loans effective interest rate; 2) the loan's observable market price; or 3) the fair value of collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use the other methods to determine the level of impairment of a loan if such loan is not collateral dependent. |
Troubled Debt Restructuring | Certain impaired loans have adequate collateral and do not require a related allowance for loan loss. The Company will charge off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. The restructuring of a loan is considered a “troubled debt restructuring” if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. A “troubled debt restructured” loan is identified as impaired and measured for credit impairment as of each reporting period in accordance with the guidance in Accounting Standards Codification (ASC) 310-10-35. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Earning Per Share | Three Months Ended September 30, Six Months Ended June 30, 2015 2014 2015 2014 Basic earnings per share: Net income $ 10,571 $ 5,119 $ 20,023 $ 9,920 Less: Preferred stock dividends (60 ) (49 ) (120 ) (49 ) Net income after preferred stock dividends 10,511 5,070 19,903 9,871 Less: Undistributed earnings allocated to participating securities 183 80 362 140 Dividends paid on participating securities 27 18 58 29 Net income available to common shareholders $ 10,301 $ 4,972 $ 19,483 $ 9,702 Weighted-average basic shares outstanding 16,769,194 15,483,257 16,740,881 13,951,830 Basic earnings per share $ 0.61 $ 0.32 $ 1.16 $ 0.70 Diluted earnings per share: Net income available to common shareholders $ 10,301 $ 4,972 $ 19,483 $ 9,702 Total weighted-average basic shares outstanding 16,769,194 15,483,257 16,740,881 13,951,830 Add dilutive stock warrants 87,023 101,383 82,852 101,513 Total weighted-average diluted shares outstanding 16,856,217 15,584,640 16,823,733 14,053,343 Diluted earnings per share $ 0.61 $ 0.32 $ 1.16 $ 0.69 Anti-dilutive participating securities 24,379 142,125 43,661 90,203 |
Statement of Cash Flows (Tables
Statement of Cash Flows (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Six Months Ended June 30, 2015 2014 Cash transactions: Interest expense paid $ 9,805 $ 6,483 Income taxes paid $ 12,900 $ 5,625 Noncash transactions: Accrued preferred stock dividends $ 60 $ 49 Transfers of loans to other real estate owned $ — $ 120 Loans to facilitate the sale of other real estate owned $ 159 $ 48 Securities purchased, not yet settled $ 3,000 $ 1,746 Excess tax benefit (tax deficiency) on restricted stock vested $ (66 ) $ 1,022 Transfer of bank premises to other real estate $ — $ 391 The supplemental schedule of noncash investing activities from Company acquisition activity is as follows: Six Months Ended June 30, 2015 2014 Assets acquired Cash and cash equivalents $ — $ 167,771 Securities available for sale — 75,881 Loans — 858,065 Premises and equipment — 9,811 Other real estate owned — 1,191 Goodwill — 171,722 Core deposit intangibles — 8,147 Other assets — 27,624 Total assets $ — $ 1,320,212 Liabilities assumed: Deposits $ — $ 925,712 Repurchase agreements — 3,733 FHLB advances — 95,000 Other liabilities — 7,302 Total liabilities $ — $ 1,031,747 Cash paid to shareholders of acquired banks $ — $ 44,010 Series A preferred stock exchanged in connection with acquired bank $ — $ 23,938 Fair value of common stock issued to shareholders of acquired banks $ — $ 220,517 In addition, the following measurement-period adjustments were made during the period relating to Company acquisition activity: Six Months Ended June 30, 2015 2014 Assets acquired: Loans $ — $ (328 ) Goodwill 361 749 Other real estate owned (373 ) — Core deposit intangibles — (18 ) Deferred tax asset 193 109 Other assets — 10 Total assets $ 181 $ 522 Liabilities assumed: Deposits $ — $ 505 Other liabilities 181 17 Total liabilities $ 181 $ 522 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
Amortized Cost of Securities and Approximate Fair Values | The amortized cost of securities and their approximate fair values at June 30, 2015 and December 31, 2014, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale June 30, 2015: U.S. treasuries $ 999 $ 7 $ — $ 1,006 Government agency securities 55,374 304 (136 ) 55,542 Obligations of state and municipal subdivisions 72,810 1,324 (764 ) 73,370 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 49,203 1,344 — 50,547 $ 178,386 $ 2,979 $ (900 ) $ 180,465 December 31, 2014: U.S. treasuries $ 999 $ 7 $ — $ 1,006 Government agency securities 58,174 199 (350 ) 58,023 Obligations of state and municipal subdivisions 75,599 1,837 (537 ) 76,899 Corporate bonds 1,068 13 — 1,081 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 67,437 1,616 — 69,053 $ 203,277 $ 3,672 $ (887 ) $ 206,062 |
Schedule of Realized Gain (Loss) | Proceeds from sale of securities available for sale and gross gains and gross losses for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Proceeds from sale 12,128 — 12,128 — Gross gains 90 — 90 — Gross losses — — — — |
Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of securities available for sale at June 30, 2015 , by contractual maturity, are shown below. Maturities of pass-through certificates will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. June 30, 2015 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 2,475 $ 2,476 Due from one year to five years 57,431 57,460 Due from five to ten years 32,263 32,505 Thereafter 37,014 37,477 129,183 129,918 Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 49,203 50,547 $ 178,386 $ 180,465 |
Summary of Unrealized Losses and Fair Value Securities in Continuous Unrealized Loss Position | The number of securities, unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2015 and December 31, 2014, are summarized as follows: Less Than 12 Months Greater Than 12 Months Total Description of Securities Number of Securities Estimated Fair Value Unrealized Losses Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Securities Available for Sale June 30, 2015 Government agency securities 4 $ 6,286 $ (12 ) 10 $ 17,875 $ (124 ) $ 24,161 $ (136 ) Obligations of state and municipal subdivisions 51 20,601 (227 ) 23 10,455 (537 ) 31,056 (764 ) 55 $ 26,887 $ (239 ) 33 $ 28,330 $ (661 ) $ 55,217 $ (900 ) December 31, 2014 Government agency securities 6 $ 6,396 $ (24 ) 14 $ 22,671 $ (326 ) $ 29,067 $ (350 ) Obligations of state and municipal subdivisions 44 16,636 (197 ) 13 8,541 (340 ) 25,177 (537 ) 50 $ 23,032 $ (221 ) 27 $ 31,212 $ (666 ) $ 54,244 $ (887 ) |
Loans, Net and Allowance for 25
Loans, Net and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Compositions of Loans | Loans, net at June 30, 2015 and December 31, 2014, consisted of the following: June 30, December 31, 2015 2014 Commercial $ 685,944 $ 672,052 Real estate: Commercial 1,654,277 1,450,434 Commercial construction, land and land development 286,656 334,964 Residential 527,760 514,025 Single family interim construction 136,395 138,278 Agricultural 37,313 38,822 Consumer 47,031 52,267 Other 177 242 3,375,553 3,201,084 Deferred loan fees (943 ) (487 ) Allowance for loan losses (21,764 ) (18,552 ) $ 3,352,846 $ 3,182,045 |
Summary of Activity in Allowance for Loan Losses by Loan Class | The following is a summary of the activity in the allowance for loan losses by loan class for the three and six months ended June 30, 2015 and 2014 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended June 30, 2015 Balance at the beginning of period $ 6,078 $ 10,654 $ 2,194 $ 734 $ 238 $ 156 $ — $ 173 $ 20,227 Provision for loan losses 658 1,054 122 4 (4 ) 57 — (232 ) 1,659 Charge-offs (106 ) — — — — (41 ) — — (147 ) Recoveries 2 12 2 — — 9 — — 25 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Six months ended June 30, 2015 Balance at the beginning of period $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Provision for loan losses 1,681 1,580 109 69 (12 ) 86 — (184 ) 3,329 Charge-offs (106 ) — — — — (77 ) — — (183 ) Recoveries 6 30 4 — — 26 — — 66 Balance at end of period $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Three months ended June 30, 2014 Balance at the beginning of period $ 2,620 $ 8,117 $ 2,278 $ 536 $ 244 $ 353 $ — $ 693 $ 14,841 Provision for loan losses 1,056 945 42 38 28 16 — (746 ) 1,379 Charge-offs (5 ) — (31 ) — — (28 ) — — (64 ) Recoveries 5 38 2 10 — 8 — — 63 Balance at end of period $ 3,676 $ 9,100 $ 2,291 $ 584 $ 272 $ 349 $ — $ (53 ) $ 16,219 Six months ended June 30, 2014 Balance at the beginning of period $ 2,401 $ 7,872 $ 2,440 $ 577 $ 238 $ 363 $ — $ 69 $ 13,960 Provision for loan losses 1,634 1,201 (121 ) (4 ) 34 10 — (122 ) 2,632 Charge-offs (368 ) (21 ) (32 ) — — (42 ) — — (463 ) Recoveries 9 48 4 11 — 18 — — 90 Balance at end of period $ 3,676 $ 9,100 $ 2,291 $ 584 $ 272 $ 349 $ — $ (53 ) $ 16,219 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of June 30, 2015 and December 31, 2014: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total June 30, 2015 Allowance for losses: Individually evaluated for impairment $ 1,629 $ 126 $ 10 $ — $ — $ — $ — $ — $ 1,765 Collectively evaluated for impairment 5,003 11,594 2,308 738 234 181 — (59 ) 19,999 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 6,632 $ 11,720 $ 2,318 $ 738 $ 234 $ 181 $ — $ (59 ) $ 21,764 Loans: Individually evaluated for impairment $ 5,677 $ 6,291 $ 3,280 $ — $ — $ 82 $ — $ — $ 15,330 Collectively evaluated for impairment 677,232 1,889,844 522,808 136,395 37,313 46,924 177 — 3,310,693 Acquired with deteriorated credit quality 3,035 44,798 1,672 — — 25 — — 49,530 Ending balance $ 685,944 $ 1,940,933 $ 527,760 $ 136,395 $ 37,313 $ 47,031 $ 177 $ — $ 3,375,553 December 31, 2014 Allowance for losses: Individually evaluated for impairment $ 339 $ 124 $ 8 $ — $ — $ 4 $ — $ — $ 475 Collectively evaluated for impairment 4,712 9,986 2,197 669 246 142 — 125 18,077 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Loans: Individually evaluated for impairment $ 1,479 $ 6,768 $ 3,387 $ — $ — $ 75 $ — $ — $ 11,709 Collectively evaluated for impairment 666,830 1,724,514 508,833 138,278 38,822 52,159 242 — 3,129,678 Acquired with deteriorated credit quality 3,743 54,116 1,805 — — 33 — — 59,697 Ending balance $ 672,052 $ 1,785,398 $ 514,025 $ 138,278 $ 38,822 $ 52,267 $ 242 $ — $ 3,201,084 |
Summary of Nonperforming Loans by Loan Class | Nonperforming loans by loan class at June 30, 2015 and December 31, 2014, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2015 Nonaccrual loans $ 5,654 $ 150 $ 683 $ — $ — $ 78 $ — $ 6,565 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 23 4,166 2,584 — — 4 — 6,777 $ 5,677 $ 4,316 $ 3,267 $ — $ — $ 82 $ — $ 13,342 December 31, 2014 Nonaccrual loans $ 1,449 $ 70 $ 2,117 $ — $ — $ 67 $ — $ 3,703 Loans past due 90 days and still accruing 157 288 — — — 6 — 451 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 30 4,668 1,254 — — 8 — 5,960 $ 1,636 $ 5,026 $ 3,371 $ — $ — $ 81 $ — $ 10,114 |
Impaired Loans by Loan Class | Impaired loans by loan class at June 30, 2015 and December 31, 2014, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total June 30, 2015 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 5,631 $ 1,536 $ 67 $ — $ — $ — $ — $ 7,234 Impaired loans with no allowance for loan losses 46 4,755 3,213 — — 82 — 8,096 Total $ 5,677 $ 6,291 $ 3,280 $ — $ — $ 82 $ — $ 15,330 Unpaid principal balance of impaired loans $ 5,687 $ 6,792 $ 3,419 $ — $ — $ 121 $ — $ 16,019 Allowance for loan losses on impaired loans $ 1,629 $ 126 $ 10 $ — $ — $ — $ — $ 1,765 December 31, 2014 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 1,475 $ 2,056 $ 13 $ — $ — $ 7 $ — $ 3,551 Impaired loans with no allowance for loan losses 4 4,712 3,374 — — 68 — 8,158 Total $ 1,479 $ 6,768 $ 3,387 $ — $ — $ 75 $ — $ 11,709 Unpaid principal balance of impaired loans $ 1,482 $ 7,274 $ 3,605 $ — $ — $ 93 $ — $ 12,454 Allowance for loan losses on impaired loans $ 339 $ 124 $ 8 $ — $ — $ 4 $ — $ 475 For the three months ended June 30, 2015 Average recorded investment in impaired loans $ 5,788 $ 6,389 $ 3,248 $ — $ — $ 79 $ — $ 15,504 Interest income recognized on impaired loans $ 22 $ 97 $ 63 $ — $ — $ — $ — $ 182 For the six months ended June 30, 2015 Average recorded investment in impaired loans $ 4,352 $ 6,515 $ 3,294 $ — $ — $ 78 $ — $ 14,239 Interest income recognized on impaired loans $ 43 $ 192 $ 93 $ — $ — $ 1 $ — $ 329 For the three months ended June 30, 2014 Average recorded investment in impaired loans $ 197 $ 7,835 $ 3,210 $ — $ — $ 54 $ — $ 11,296 Interest income recognized on impaired loans $ 2 $ 109 $ 49 $ — $ — $ — $ — $ 160 For the six months ended June 30, 2014 Average recorded investment in impaired loans $ 298 $ 7,894 $ 3,200 $ 57 $ — $ 59 $ — $ 11,508 Interest income recognized on impaired loans $ 5 $ 233 $ 78 $ — $ — $ 1 $ — $ 317 |
Summary of Troubled Debt Restructurings | Following is a summary of loans modified under troubled debt restructurings during the three months ended June 30, 2015 and 2014 : . Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total Troubled debt restructurings during the three months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the six months ended June 30, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the three months ended June 30, 2014 Number of contracts — 1 — — — — — 1 Pre-restructuring outstanding recorded investment $ — $ 408 $ — $ — $ — $ — $ — $ 408 Post-restructuring outstanding recorded investment $ — $ 408 $ — $ — $ — $ — $ — $ 408 Troubled debt restructurings during the six months ended June 30, 2014 Number of contracts — 2 — — — — — 2 Pre-restructuring outstanding recorded investment $ — $ 1,108 $ — $ — $ — $ — $ — $ 1,108 Post-restructuring outstanding recorded investment $ — $ 1,108 $ — $ — $ — $ — $ — $ 1,108 |
Aging of Past Due Loans by Loan Class | The following table presents information regarding the aging of past due loans by loan class as of June 30, 2015 and December 31, 2014: Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans June 30, 2015 Commercial $ 189 $ 5,628 $ 5,817 $ 680,127 $ 685,944 Commercial real estate, land and land development 1,098 — 1,098 1,939,835 1,940,933 Residential real estate 477 395 872 526,888 527,760 Single-family interim construction — — — 136,395 136,395 Agricultural — — — 37,313 37,313 Consumer 1,541 25 1,566 45,465 47,031 Other — — — 177 177 $ 3,305 $ 6,048 $ 9,353 $ 3,366,200 $ 3,375,553 December 31, 2014 Commercial $ 6,006 $ 157 $ 6,163 $ 665,889 $ 672,052 Commercial real estate, land and land development 973 288 1,261 1,784,137 1,785,398 Residential real estate 1,258 554 1,812 512,213 514,025 Single-family interim construction 410 — 410 137,868 138,278 Agricultural — — — 38,822 38,822 Consumer 1,899 8 1,907 50,360 52,267 Other — — — 242 242 $ 10,546 $ 1,007 $ 11,553 $ 3,189,531 $ 3,201,084 |
Summary of Loans by Credit Quality Indicator by Class | A summary of loans by credit quality indicator by class as of June 30, 2015 and December 31, 2014 , is as follows: Pass Pass/ Watch OAEM Substandard Doubtful Total June 30, 2015 Commercial $ 539,351 $ 91,716 $ 48,809 $ 6,068 $ — $ 685,944 Commercial real estate, construction, land and land development 1,918,918 5,637 5,894 10,484 — 1,940,933 Residential real estate 520,133 1,997 1,032 4,598 — 527,760 Single-family interim construction 136,395 — — — — 136,395 Agricultural 37,258 55 — — — 37,313 Consumer 46,806 79 38 108 — 47,031 Other 177 — — — — 177 $ 3,199,038 $ 99,484 $ 55,773 $ 21,258 $ — $ 3,375,553 December 31, 2014 Commercial $ 647,894 $ 16,919 $ 977 $ 6,262 $ — $ 672,052 Commercial real estate, construction, land and land development 1,759,533 8,667 6,008 11,190 — 1,785,398 Residential real estate 505,920 2,188 325 5,592 — 514,025 Single-family interim construction 138,278 — — — — 138,278 Agricultural 38,422 57 — 343 — 38,822 Consumer 52,055 39 50 123 — 52,267 Other 242 — — — — 242 $ 3,142,344 $ 27,870 $ 7,360 $ 23,510 $ — $ 3,201,084 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans by acquired bank as of the respective acquisition date for the acquisitions occurring in 2014: Acquisition Date October 1, 2014 April 15, 2014 January 1, 2014 Houston City Bancshares, Inc. BOH Holdings, Inc. Live Oak Financial Corp. Outstanding balance $ 12,021 $ 55,718 $ 3,583 Nonaccretable difference (1,240 ) (5,798 ) (519 ) Accretable yield (561 ) (2,579 ) (182 ) Carrying amount $ 10,220 $ 47,341 $ 2,882 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at June 30, 2015 and December 31, 2014, were as follows: June 30, 2015 December 31, 2014 Outstanding balance $ 57,476 $ 69,371 Carrying amount 49,530 59,697 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | The changes in accretable yield during the six months ended June 30, 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. Activity in accretable yield for the six months ended June 30, 2014 was not material. Balance at January 1, 2015 $ 2,546 Additions — Accretion (460 ) Transfers from nonaccretable 748 Balance at June 30, 2015 $ 2,834 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | At June 30, 2015 and December 31, 2014 , the approximate amounts of these financial instruments were as follows: June 30, December 31, 2015 2014 Commitments to extend credit $ 657,881 $ 565,881 Standby letters of credit 6,471 8,571 $ 664,352 $ 574,452 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three and six months ended June 30, 2015 and 2014 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Income tax expense for the period $ 5,204 $ 2,682 $ 9,740 $ 5,021 Effective tax rate 33.0 % 34.4 % 32.7 % 33.6 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets at Fair Value on Recurring Basis | The following table represents assets reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2015 and December 31, 2014 by level within the ASC Topic 820 fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using Assets/ Liabilities Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,006 $ — $ 1,006 $ — Government agency securities 55,542 — 55,542 — Obligations of state and municipal subdivisions 73,370 — 73,370 — Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 50,547 — 50,547 — December 31, 2014 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,006 $ — $ 1,006 $ — Government agency securities 58,023 — 58,023 — Obligations of state and municipal subdivisions 76,899 — 76,899 — Corporate bonds 1,081 — 1,081 — Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR 69,053 — 69,053 — |
Assets and Liabilities at Fair Value on Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at June 30, 2015 and December 31, 2014, for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at Reporting Date Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Period Ended Total Losses June 30, 2015 Measured on a nonrecurring basis: Assets: Impaired loans $ 3,339 $ — $ — $ 3,339 $ 1,291 Other real estate 209 — — 209 $ 25 December 31, 2014 Measured on a nonrecurring basis: Assets: Impaired loans $ 4,943 $ — $ — $ 4,943 $ 188 Other real estate 138 — — 138 22 |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial instruments were as follows at June 30, 2015 and December 31, 2014: Fair Value Measurements at Reporting Date Using Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) June 30, 2015 Financial assets: Cash and cash equivalents $ 424,196 $ 424,196 $ 424,196 $ — $ — Securities available for sale 180,465 180,465 — 180,465 — Loans held for sale 7,237 7,237 — 7,237 — Loans, net 3,352,846 3,367,536 — 3,362,067 5,469 FHLB of Dallas stock and other restricted stock 11,941 11,941 — 11,941 — Accrued interest receivable 9,483 9,483 — 9,483 — Financial liabilities: Deposits 3,467,484 3,470,459 — 3,470,459 — Accrued interest payable 2,739 2,739 — 2,739 — FHLB advances 194,366 202,278 — 202,278 — Repurchase agreements 5,374 5,374 — 5,374 — Other borrowings 71,764 74,241 — 74,241 — Junior subordinated debentures 18,147 18,120 — 18,120 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2014 Financial assets: Cash and cash equivalents $ 324,047 $ 324,047 $ 324,047 $ — $ — Securities available for sale 206,062 206,062 — 206,062 — Loans held for sale 4,453 4,453 — 4,453 — Loans, net 3,182,045 3,203,337 — 3,200,261 3,076 FHLB of Dallas stock and other restricted stock 12,321 12,321 — 12,321 — Accrued interest receivable 9,655 9,655 — 9,655 — Financial liabilities: Deposits 3,249,598 3,252,114 — 3,252,114 — Accrued interest payable 2,919 2,919 — 2,919 — FHLB advances 229,405 228,607 — 228,607 — Repurchase agreements 4,012 4,012 — 4,012 — Other borrowings 72,730 75,164 — 75,164 — Junior subordinated debentures 18,147 18,134 — 18,134 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — |
Stock Awards and Stock Warran29
Stock Awards and Stock Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Shares Activity | The following table summarizes the activity in nonvested shares for the six months ended June 30, 2015 and 2014 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2014 373,886 $ 41.58 Granted during the period 87,124 31.41 Vested during the period (79,642 ) 42.18 Forfeited during the period (14,599 ) 28.82 Nonvested shares, June 30, 2015 366,769 $ 40.19 Nonvested shares, December 31, 2013 306,524 $ 22.75 Granted during the period 189,069 56.70 Vested during the period (113,964 ) 19.93 Nonvested shares, June 30, 2014 381,629 $ 40.41 |
Schedule of Vesting of Restricted Stock Award | At June 30, 2015 , the future vesting schedule of the nonvested shares is as follows: First year 106,359 Second year 131,752 Third year 92,058 Fourth year 34,600 Fifth year 2,000 Total nonvested shares 366,769 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | The actual capital amounts and ratios of the Company and Bank as of June 30, 2015 and December 31, 2014, are presented in the following table: Actual Minimum for Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio June 30, 2015 Total capital to risk weighted assets: Consolidated $ 428,491 12.05 % $ 284,542 8.00 % N/A N/A Bank 423,024 11.90 284,338 8.00 $ 355,423 10.00 % Tier 1 capital to risk weighted assets: Consolidated 337,669 9.49 213,407 6.00 N/A N/A Bank 401,260 11.29 213,254 6.00 284,338 8.00 % Common equity tier 1 to risk weighted assets Consolidated 296,131 8.33 160,055 4.50 N/A N/A Bank 401,260 11.29 159,940 4.50 231,025 6.50 % Tier 1 capital to average assets: Consolidated 337,669 8.40 160,876 4.00 N/A N/A Bank 401,260 9.99 160,727 4.00 200,909 5.00 % December 31, 2014 Total capital to risk weighted assets: Consolidated $ 402,326 12.59 % $ 255,633 8.00 % N/A N/A Bank 397,512 12.46 255,219 8.00 $ 319,024 10.00 % Tier 1 capital to risk weighted assets: Consolidated 314,136 9.83 127,817 4.00 N/A N/A Bank 378,960 11.88 127,609 4.00 191,414 6.00 % Tier 1 capital to average assets: Consolidated 314,136 8.15 154,270 4.00 N/A N/A Bank 378,960 9.93 152,598 4.00 190,747 5.00 % |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2015segment | |
Accounting Policies [Abstract] | |
Number of reportable segments (segment) | 1 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | ||||
Net income | $ 10,571 | $ 5,119 | $ 20,023 | $ 9,920 |
Less: Preferred stock dividends | (60) | (49) | (120) | (49) |
Net income after preferred stock dividends | 10,511 | 5,070 | 19,903 | 9,871 |
Undistributed earnings allocated to participating securities | 183 | 80 | 362 | 140 |
Dividends paid on participating securities | 27 | 18 | 58 | 29 |
Net income available to common shareholders | $ 10,301 | $ 4,972 | $ 19,483 | $ 9,702 |
Weighted-average basic shares outstanding (shares) | 16,769,194 | 15,483,257 | 16,740,881 | 13,951,830 |
Basic earnings per share (usd per share) | $ 0.61 | $ 0.32 | $ 1.16 | $ 0.70 |
Add dilutive stock warrants (shares) | 87,023 | 101,383 | 82,852 | 101,513 |
Total weighted-average diluted shares outstanding (shares) | 16,856,217 | 15,584,640 | 16,823,733 | 14,053,343 |
Diluted earnings per share (usd per share) | $ 0.61 | $ 0.32 | $ 1.16 | $ 0.69 |
Anti-dilutive participating securities (shares) | 24,379 | 142,125 | 43,661 | 90,203 |
Statement of Cash Flows - Addit
Statement of Cash Flows - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 |
Cash transactions: | |||
Interest expense paid | $ 9,805 | $ 6,483 | |
Income taxes paid | 12,900 | 5,625 | |
Noncash transactions: | |||
Transfers of loans to other real estate owned | 0 | 120 | |
Loans to facilitate the sale of other real estate owned | 159 | 48 | |
Securities purchased, not yet settled | $ 3,000 | 3,000 | 1,746 |
Excess tax benefit (tax deficiency) on restricted stock vested | (66) | 1,022 | |
Transfer of bank premises to other real estate | 0 | 391 | |
Series A Preferred Stock | |||
Noncash transactions: | |||
Dividends declared, not yet paid | $ 60 | $ 60 | $ 49 |
Statement of Cash Flows - Nonca
Statement of Cash Flows - Noncash Investing Activities from Acquisitions and Branch Sale (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Assets acquired | ||
Cash and cash equivalents | $ 0 | $ 167,771 |
Securities available for sale | 0 | 75,881 |
Loans | 0 | 858,065 |
Premises and equipment | 0 | 9,811 |
Other real estate owned | 0 | 1,191 |
Goodwill | 0 | 171,722 |
Core deposit intangibles | 0 | 8,147 |
Other assets | 0 | 27,624 |
Total assets | 0 | 1,320,212 |
Liabilities assumed: | ||
Deposits | 0 | 925,712 |
Repurchase agreements | 0 | 3,733 |
FHLB advances | 0 | 95,000 |
Other liabilities | 0 | 7,302 |
Total liabilities | 0 | 1,031,747 |
Cash paid to shareholders of acquired banks | 0 | 44,010 |
Fair value of common stock issued to shareholders of acquired banks | 0 | 220,517 |
Series A Preferred Stock | ||
Liabilities assumed: | ||
Fair value of common stock issued to shareholders of acquired banks | $ 0 | $ 23,938 |
Statement of Cash Flows - Measu
Statement of Cash Flows - Measurement-Period Adjustments (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Assets acquired | ||
Loans | $ 0 | $ (328) |
Goodwill | 361 | 749 |
Other real estate owned | (373) | 0 |
Core deposit intangibles | 0 | (18) |
Deferred tax asset | 193 | 109 |
Other assets | 0 | 10 |
Total assets | 181 | 522 |
Liabilities assumed: | ||
Deposits | 0 | 505 |
Other liabilities | 181 | 17 |
Total liabilities | $ 181 | $ 522 |
Securities Available for Sale -
Securities Available for Sale - Additional Information (Details) $ in Thousands | Jun. 30, 2015USD ($)security | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Cash and Cash Equivalents [Line Items] | |||||
Number of available-for-sale securities acquired, not yet settled | security | 3 | ||||
Securities purchased, not yet settled | $ 3,000 | $ 3,000 | $ 1,746 | ||
Cash and cash equivalents | 424,196 | 424,196 | $ 192,528 | $ 324,047 | $ 93,054 |
Carrying value of securities pledged | 154,054 | 154,054 | $ 174,741 | ||
U.S. treasuries | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 50,000 | $ 50,000 |
Securities Available for Sale-A
Securities Available for Sale-Amortized Cost of Securities and Approximate Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 178,386 | $ 203,277 |
Gross Unrealized Gains | 2,979 | 3,672 |
Gross Unrealized Losses | (900) | (887) |
Fair Value | 180,465 | 206,062 |
U.S. treasuries | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 999 | 999 |
Gross Unrealized Gains | 7 | 7 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,006 | 1,006 |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 55,374 | 58,174 |
Gross Unrealized Gains | 304 | 199 |
Gross Unrealized Losses | (136) | (350) |
Fair Value | 55,542 | 58,023 |
Obligations of state and municipal subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 72,810 | 75,599 |
Gross Unrealized Gains | 1,324 | 1,837 |
Gross Unrealized Losses | (764) | (537) |
Fair Value | 73,370 | 76,899 |
Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,068 | |
Gross Unrealized Gains | 13 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,081 | |
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 49,203 | 67,437 |
Gross Unrealized Gains | 1,344 | 1,616 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 50,547 | $ 69,053 |
Securities Available for Sale-P
Securities Available for Sale-Proceeds from Sale of Securities and Gross Gains and Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Available-for-sale Securities [Abstract] | ||||
Proceeds from sale | $ 12,128 | $ 0 | $ 12,128 | $ 0 |
Gross gains | 90 | 0 | 90 | 0 |
Gross losses | $ 0 | $ 0 | $ 0 | $ 0 |
Securities Available for Sale39
Securities Available for Sale-Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Due in one year or less | $ 2,475 | |
Due from one year to five years | 57,431 | |
Due from five to ten years | 32,263 | |
Thereafter | 37,014 | |
SIngle maturity dates, amortized cost basis | 129,183 | |
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | 49,203 | |
Amortized Cost | 178,386 | $ 203,277 |
Fair Value | ||
Due in one year or less | 2,476 | |
Due from one year to five years | 57,460 | |
Due from five to ten years | 32,505 | |
Thereafter | 37,477 | |
Single maturity date fair value | 129,918 | |
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | 50,547 | |
Fair Value | $ 180,465 | $ 206,062 |
Securities Available for Sale-S
Securities Available for Sale-Summary of Unrealized Losses and Fair Value of Securities in COntinuous Unrealized Loss Positions (Details) $ in Thousands | Jun. 30, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 55 | 50 |
Less than 12 months: Estimated Fair Value | $ 26,887 | $ 23,032 |
Less than 12 months: Unrealized Losses | $ (239) | $ (221) |
Number of Securities, Greater than 12 Months | security | 33 | 27 |
Greater Than 12 Months: Estimated Fair Value | $ 28,330 | $ 31,212 |
Greater Than 12 Months: Unrealized Losses | (661) | (666) |
Total: Estimated Fair Value | 55,217 | 54,244 |
Total: Unrealized Losses | $ (900) | $ (887) |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 4 | 6 |
Less than 12 months: Estimated Fair Value | $ 6,286 | $ 6,396 |
Less than 12 months: Unrealized Losses | $ (12) | $ (24) |
Number of Securities, Greater than 12 Months | security | 10 | 14 |
Greater Than 12 Months: Estimated Fair Value | $ 17,875 | $ 22,671 |
Greater Than 12 Months: Unrealized Losses | (124) | (326) |
Total: Estimated Fair Value | 24,161 | 29,067 |
Total: Unrealized Losses | $ (136) | $ (350) |
Obligations of state and municipal subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 51 | 44 |
Less than 12 months: Estimated Fair Value | $ 20,601 | $ 16,636 |
Less than 12 months: Unrealized Losses | $ (227) | $ (197) |
Number of Securities, Greater than 12 Months | security | 23 | 13 |
Greater Than 12 Months: Estimated Fair Value | $ 10,455 | $ 8,541 |
Greater Than 12 Months: Unrealized Losses | (537) | (340) |
Total: Estimated Fair Value | 31,056 | 25,177 |
Total: Unrealized Losses | $ (764) | $ (537) |
Loans, Net and Allowance for 41
Loans, Net and Allowance for Loan Losses - Additional Information (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015USD ($)component | Dec. 31, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 3,352,846 | $ 3,182,045 |
Number of components allowance for loan losses is derived from | component | 2 | |
Recorded investment in troubled debt restructuring including nonaccraul | $ 6,791 | 7,302 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans requiring external review | 2,400 | |
Commercial, E&P Energy Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 226,600 | $ 231,700 |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratio (percent) | 80.00% | |
Loan, amortization period | 20 years | |
Period of operating lines | 1 year | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of total loan portfolio (less than) | 2.00% |
Loans, Net and Allowance for 42
Loans, Net and Allowance for Loan Losses - Composition of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | $ 3,375,553 | $ 3,201,084 | ||||
Deferred loan fees | (943) | (487) | ||||
Allowance for loan losses | (21,764) | $ (20,227) | (18,552) | $ (16,219) | $ (14,841) | $ (13,960) |
Loans, net | 3,352,846 | 3,182,045 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 685,944 | 672,052 | ||||
Allowance for loan losses | (6,632) | (6,078) | (5,051) | (3,676) | (2,620) | (2,401) |
Commercial Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 1,654,277 | 1,450,434 | ||||
Commercial construction, land and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 286,656 | 334,964 | ||||
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 527,760 | 514,025 | ||||
Allowance for loan losses | (2,318) | (2,194) | (2,205) | (2,291) | (2,278) | (2,440) |
Single-Family Interim Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 136,395 | 138,278 | ||||
Allowance for loan losses | (738) | (734) | (669) | (584) | (536) | (577) |
Agricultural | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 37,313 | 38,822 | ||||
Allowance for loan losses | (234) | (238) | (246) | (272) | (244) | (238) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 47,031 | 52,267 | ||||
Allowance for loan losses | (181) | (156) | (146) | (349) | (353) | (363) |
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 177 | 242 | ||||
Allowance for loan losses | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Net and Allowance for 43
Loans, Net and Allowance for Loan Losses Loans, Net and Allowance for Loan Losses - Rollforward of Activity in Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | $ 20,227 | $ 14,841 | $ 18,552 | $ 13,960 |
Provision for loan losses | 1,659 | 1,379 | 3,329 | 2,632 |
Charge-offs | (147) | (64) | (183) | (463) |
Recoveries | 25 | 63 | 66 | 90 |
Balance at end of period | 21,764 | 16,219 | 21,764 | 16,219 |
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 6,078 | 2,620 | 5,051 | 2,401 |
Provision for loan losses | 658 | 1,056 | 1,681 | 1,634 |
Charge-offs | (106) | (5) | (106) | (368) |
Recoveries | 2 | 5 | 6 | 9 |
Balance at end of period | 6,632 | 3,676 | 6,632 | 3,676 |
Commercial Real Estate, Land and Land Development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 10,654 | 8,117 | 10,110 | 7,872 |
Provision for loan losses | 1,054 | 945 | 1,580 | 1,201 |
Charge-offs | 0 | 0 | 0 | (21) |
Recoveries | 12 | 38 | 30 | 48 |
Balance at end of period | 11,720 | 9,100 | 11,720 | 9,100 |
Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 2,194 | 2,278 | 2,205 | 2,440 |
Provision for loan losses | 122 | 42 | 109 | (121) |
Charge-offs | 0 | (31) | 0 | (32) |
Recoveries | 2 | 2 | 4 | 4 |
Balance at end of period | 2,318 | 2,291 | 2,318 | 2,291 |
Single-Family Interim Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 734 | 536 | 669 | 577 |
Provision for loan losses | 4 | 38 | 69 | (4) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 10 | 0 | 11 |
Balance at end of period | 738 | 584 | 738 | 584 |
Agricultural | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 238 | 244 | 246 | 238 |
Provision for loan losses | (4) | 28 | (12) | 34 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 234 | 272 | 234 | 272 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 156 | 353 | 146 | 363 |
Provision for loan losses | 57 | 16 | 86 | 10 |
Charge-offs | (41) | (28) | (77) | (42) |
Recoveries | 9 | 8 | 26 | 18 |
Balance at end of period | 181 | 349 | 181 | 349 |
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 0 | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 0 | 0 | 0 | 0 |
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at the beginning of period | 173 | 693 | 125 | 69 |
Provision for loan losses | (232) | (746) | (184) | (122) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | $ (59) | $ (53) | $ (59) | $ (53) |
Loans, Net and Allowance for 44
Loans, Net and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Allowance for losses: | ||||||
Individually evaluated for impairment | $ 1,765 | $ 475 | ||||
Collectively evaluated for impairment | 19,999 | 18,077 | ||||
Ending balance | 21,764 | $ 20,227 | 18,552 | $ 16,219 | $ 14,841 | $ 13,960 |
Loans: | ||||||
Individually evaluated for impairment | 15,330 | 11,709 | ||||
Collectively evaluated for impairment | 3,310,693 | 3,129,678 | ||||
Ending balance | 3,375,553 | 3,201,084 | ||||
Commercial | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 1,629 | 339 | ||||
Collectively evaluated for impairment | 5,003 | 4,712 | ||||
Ending balance | 6,632 | 6,078 | 5,051 | 3,676 | 2,620 | 2,401 |
Loans: | ||||||
Individually evaluated for impairment | 5,677 | 1,479 | ||||
Collectively evaluated for impairment | 677,232 | 666,830 | ||||
Ending balance | 685,944 | 672,052 | ||||
Commercial Real Estate, Land and Land Development | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 126 | 124 | ||||
Collectively evaluated for impairment | 11,594 | 9,986 | ||||
Ending balance | 11,720 | 10,654 | 10,110 | 9,100 | 8,117 | 7,872 |
Loans: | ||||||
Individually evaluated for impairment | 6,291 | 6,768 | ||||
Collectively evaluated for impairment | 1,889,844 | 1,724,514 | ||||
Ending balance | 1,940,933 | 1,785,398 | ||||
Residential Real Estate | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 10 | 8 | ||||
Collectively evaluated for impairment | 2,308 | 2,197 | ||||
Ending balance | 2,318 | 2,194 | 2,205 | 2,291 | 2,278 | 2,440 |
Loans: | ||||||
Individually evaluated for impairment | 3,280 | 3,387 | ||||
Collectively evaluated for impairment | 522,808 | 508,833 | ||||
Ending balance | 527,760 | 514,025 | ||||
Single-Family Interim Construction | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 738 | 669 | ||||
Ending balance | 738 | 734 | 669 | 584 | 536 | 577 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 136,395 | 138,278 | ||||
Ending balance | 136,395 | 138,278 | ||||
Agricultural | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 234 | 246 | ||||
Ending balance | 234 | 238 | 246 | 272 | 244 | 238 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 37,313 | 38,822 | ||||
Ending balance | 37,313 | 38,822 | ||||
Consumer | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 4 | ||||
Collectively evaluated for impairment | 181 | 142 | ||||
Ending balance | 181 | 156 | 146 | 349 | 353 | 363 |
Loans: | ||||||
Individually evaluated for impairment | 82 | 75 | ||||
Collectively evaluated for impairment | 46,924 | 52,159 | ||||
Ending balance | 47,031 | 52,267 | ||||
Other | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 177 | 242 | ||||
Ending balance | 177 | 242 | ||||
Unallocated | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | (59) | 125 | ||||
Ending balance | (59) | $ 173 | 125 | $ (53) | $ 693 | $ 69 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Ending balance | 0 | 0 | ||||
Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 49,530 | 59,697 | ||||
Receivables Acquired with Deteriorated Credit Quality | Commercial | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 3,035 | 3,743 | ||||
Receivables Acquired with Deteriorated Credit Quality | Commercial Real Estate, Land and Land Development | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 44,798 | 54,116 | ||||
Receivables Acquired with Deteriorated Credit Quality | Residential Real Estate | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 1,672 | 1,805 | ||||
Receivables Acquired with Deteriorated Credit Quality | Single-Family Interim Construction | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 0 | 0 | ||||
Receivables Acquired with Deteriorated Credit Quality | Agricultural | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 0 | 0 | ||||
Receivables Acquired with Deteriorated Credit Quality | Consumer | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 25 | 33 | ||||
Receivables Acquired with Deteriorated Credit Quality | Other | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 0 | 0 | ||||
Receivables Acquired with Deteriorated Credit Quality | Unallocated | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | $ 0 | $ 0 |
Loans, Net and Allowance for 45
Loans, Net and Allowance for Loan Losses - Summary of Non Performing Loans by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 6,565 | $ 3,703 |
Loans past due 90 days and still accruing | 0 | 451 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 6,777 | 5,960 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 13,342 | 10,114 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 78 | 67 |
Loans past due 90 days and still accruing | 0 | 6 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 4 | 8 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 82 | 81 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 0 | 0 |
Single-Family Interim Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 0 | 0 |
Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 0 | 0 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 5,654 | 1,449 |
Loans past due 90 days and still accruing | 0 | 157 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 23 | 30 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 5,677 | 1,636 |
Commercial Real Estate, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 150 | 70 |
Loans past due 90 days and still accruing | 0 | 288 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 4,166 | 4,668 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 4,316 | 5,026 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 683 | 2,117 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 2,584 | 1,254 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | $ 3,267 | $ 3,371 |
Loans, Net and Allowance for 46
Loans, Net and Allowance for Loan Losses - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | $ 7,234 | $ 7,234 | $ 3,551 | ||
Impaired loans with no allowance for loan losses | 8,096 | 8,096 | 8,158 | ||
Total | 15,330 | 15,330 | 11,709 | ||
Unpaid principal balance of impaired loans | 16,019 | 16,019 | 12,454 | ||
Allowance for loan losses on impaired loans | 1,765 | 1,765 | 475 | ||
Average recorded investment in impaired loans | 15,504 | $ 11,296 | 14,239 | $ 11,508 | |
Interest income recognized on impaired loans | 182 | 160 | 329 | 317 | |
Commercial | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 5,631 | 5,631 | 1,475 | ||
Impaired loans with no allowance for loan losses | 46 | 46 | 4 | ||
Total | 5,677 | 5,677 | 1,479 | ||
Unpaid principal balance of impaired loans | 5,687 | 5,687 | 1,482 | ||
Allowance for loan losses on impaired loans | 1,629 | 1,629 | 339 | ||
Average recorded investment in impaired loans | 5,788 | 197 | 4,352 | 298 | |
Interest income recognized on impaired loans | 22 | 2 | 43 | 5 | |
Commercial Real Estate, Land and Land Development | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 1,536 | 1,536 | 2,056 | ||
Impaired loans with no allowance for loan losses | 4,755 | 4,755 | 4,712 | ||
Total | 6,291 | 6,291 | 6,768 | ||
Unpaid principal balance of impaired loans | 6,792 | 6,792 | 7,274 | ||
Allowance for loan losses on impaired loans | 126 | 126 | 124 | ||
Average recorded investment in impaired loans | 6,389 | 7,835 | 6,515 | 7,894 | |
Interest income recognized on impaired loans | 97 | 109 | 192 | 233 | |
Residential Real Estate | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 67 | 67 | 13 | ||
Impaired loans with no allowance for loan losses | 3,213 | 3,213 | 3,374 | ||
Total | 3,280 | 3,280 | 3,387 | ||
Unpaid principal balance of impaired loans | 3,419 | 3,419 | 3,605 | ||
Allowance for loan losses on impaired loans | 10 | 10 | 8 | ||
Average recorded investment in impaired loans | 3,248 | 3,210 | 3,294 | 3,200 | |
Interest income recognized on impaired loans | 63 | 49 | 93 | 78 | |
Single-Family Interim Construction | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Unpaid principal balance of impaired loans | 0 | 0 | 0 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 0 | ||
Average recorded investment in impaired loans | 0 | 0 | 0 | 57 | |
Interest income recognized on impaired loans | 0 | 0 | 0 | 0 | |
Agricultural | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Unpaid principal balance of impaired loans | 0 | 0 | 0 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 0 | ||
Average recorded investment in impaired loans | 0 | 0 | 0 | 0 | |
Interest income recognized on impaired loans | 0 | 0 | 0 | 0 | |
Consumer | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 7 | ||
Impaired loans with no allowance for loan losses | 82 | 82 | 68 | ||
Total | 82 | 82 | 75 | ||
Unpaid principal balance of impaired loans | 121 | 121 | 93 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 4 | ||
Average recorded investment in impaired loans | 79 | 54 | 78 | 59 | |
Interest income recognized on impaired loans | 0 | 0 | 1 | 1 | |
Other | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Unpaid principal balance of impaired loans | 0 | 0 | 0 | ||
Allowance for loan losses on impaired loans | 0 | 0 | $ 0 | ||
Average recorded investment in impaired loans | 0 | 0 | 0 | 0 | |
Interest income recognized on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Net and Allowance for 47
Loans, Net and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | Jun. 30, 2015USD ($)contract | Jun. 30, 2014USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 1 | 0 | 2 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 408 | $ 0 | $ 1,108 |
Post-restructuring outstanding recorded investment | $ 0 | $ 408 | $ 0 | $ 1,108 |
Commercial | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial Real Estate, Land and Land Development | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 1 | 0 | 2 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 408 | $ 0 | $ 1,108 |
Post-restructuring outstanding recorded investment | $ 0 | $ 408 | $ 0 | $ 1,108 |
Residential Real Estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Single-Family Interim Construction | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Agricultural | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Other Loan | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 0 | 0 | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Net and Allowance for 48
Loans, Net and Allowance for Loan Losses - Aging of Past Due Loans by Loan Class (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | $ 9,353 | $ 11,553 |
Current Loans | 3,366,200 | 3,189,531 |
Ending balance | 3,375,553 | 3,201,084 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 5,817 | 6,163 |
Current Loans | 680,127 | 665,889 |
Ending balance | 685,944 | 672,052 |
Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,098 | 1,261 |
Current Loans | 1,939,835 | 1,784,137 |
Ending balance | 1,940,933 | 1,785,398 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 872 | 1,812 |
Current Loans | 526,888 | 512,213 |
Ending balance | 527,760 | 514,025 |
Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 410 |
Current Loans | 136,395 | 137,868 |
Ending balance | 136,395 | 138,278 |
Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Current Loans | 37,313 | 38,822 |
Ending balance | 37,313 | 38,822 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,566 | 1,907 |
Current Loans | 45,465 | 50,360 |
Ending balance | 47,031 | 52,267 |
Other Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Current Loans | 177 | 242 |
Ending balance | 177 | 242 |
Loans 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 3,305 | 10,546 |
Loans 30-89 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 189 | 6,006 |
Loans 30-89 Days Past Due | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,098 | 973 |
Loans 30-89 Days Past Due | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 477 | 1,258 |
Loans 30-89 Days Past Due | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 410 |
Loans 30-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Loans 30-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,541 | 1,899 |
Loans 30-89 Days Past Due | Other Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Loans 90 or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 6,048 | 1,007 |
Loans 90 or More Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 5,628 | 157 |
Loans 90 or More Past Due | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 288 |
Loans 90 or More Past Due | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 395 | 554 |
Loans 90 or More Past Due | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Loans 90 or More Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Loans 90 or More Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 25 | 8 |
Loans 90 or More Past Due | Other Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | $ 0 | $ 0 |
Loans, Net and Allowance for 49
Loans, Net and Allowance for Loan Losses - Summary of Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | $ 3,375,553 | $ 3,201,084 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 685,944 | 672,052 |
Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,940,933 | 1,785,398 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 527,760 | 514,025 |
Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 136,395 | 138,278 |
Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 37,313 | 38,822 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 47,031 | 52,267 |
Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 177 | 242 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 3,199,038 | 3,142,344 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 539,351 | 647,894 |
Pass | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,918,918 | 1,759,533 |
Pass | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 520,133 | 505,920 |
Pass | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 136,395 | 138,278 |
Pass | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 37,258 | 38,422 |
Pass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 46,806 | 52,055 |
Pass | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 177 | 242 |
Pass/ Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 99,484 | 27,870 |
Pass/ Watch | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 91,716 | 16,919 |
Pass/ Watch | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 5,637 | 8,667 |
Pass/ Watch | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,997 | 2,188 |
Pass/ Watch | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Pass/ Watch | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 55 | 57 |
Pass/ Watch | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 79 | 39 |
Pass/ Watch | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
OAEM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 55,773 | 7,360 |
OAEM | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 48,809 | 977 |
OAEM | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 5,894 | 6,008 |
OAEM | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,032 | 325 |
OAEM | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
OAEM | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
OAEM | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 38 | 50 |
OAEM | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 21,258 | 23,510 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 6,068 | 6,262 |
Substandard | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 10,484 | 11,190 |
Substandard | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 4,598 | 5,592 |
Substandard | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Substandard | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 343 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 108 | 123 |
Substandard | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Doubtful | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | $ 0 | $ 0 |
Loans, Net and Allowance for 50
Loans, Net and Allowance for Loan Losses - Outstanding Balance and Related Carrying Amount of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Oct. 01, 2014 | Apr. 15, 2014 | Jan. 01, 2014 |
Business Acquisition [Line Items] | |||||
Outstanding balance | $ 57,476 | $ 69,371 | |||
Carrying amount | $ 49,530 | $ 59,697 | |||
Houston City Bancshares, Inc. | |||||
Business Acquisition [Line Items] | |||||
Outstanding balance | $ 12,021 | ||||
Nonaccretable difference | (1,240) | ||||
Accretable yield | (561) | ||||
Carrying amount | $ 10,220 | ||||
BOH Holdings, Inc. | |||||
Business Acquisition [Line Items] | |||||
Outstanding balance | $ 55,718 | ||||
Nonaccretable difference | (5,798) | ||||
Accretable yield | (2,579) | ||||
Carrying amount | $ 47,341 | ||||
Live Oak Financial Corp. | |||||
Business Acquisition [Line Items] | |||||
Outstanding balance | $ 3,583 | ||||
Nonaccretable difference | (519) | ||||
Accretable yield | (182) | ||||
Carrying amount | $ 2,882 |
Loans, Net and Allowance for 51
Loans, Net and Allowance for Loan Losses Loans, Net and Allowance for Loan Losses - Purchased Credit Impaired Loans in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Outstanding balance | $ 57,476 | $ 69,371 |
Carrying amount | $ 49,530 | $ 59,697 |
Loans, Net and Allowance for 52
Loans, Net and Allowance for Loan Losses Loans, Net and Allowance for Loan Losses - Accretable Yield Rollforward (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |
Balance at January 1, 2015 | $ 2,546 |
Additions | 0 |
Accretion | (460) |
Transfers from nonaccretable | 748 |
Balance at June 30, 2015 | $ 2,834 |
Commitments and Contingencies53
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 664,352 | $ 574,452 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 657,881 | 565,881 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 6,471 | $ 8,571 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Other Commitments [Line Items] | ||||||
Rent expense | $ 501 | $ 318 | $ 984 | $ 516 | ||
Purchase agreement | $ 8,800 | |||||
Payments for aircraft | $ 2,000 | |||||
Scenario, Forecast | ||||||
Other Commitments [Line Items] | ||||||
Payments for aircraft | $ 6,800 |
Repurchase Agreements and Oth55
Repurchase Agreements and Other Borrowings - Note Payable (Details) - USD ($) $ in Thousands | Apr. 15, 2015 | Jan. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | |||||
Repurchase agreements | $ 5,374 | $ 4,012 | |||
Securities pledged under repurchase agreements | 6,544 | ||||
Other borrowings and due to related parties | 71,764 | $ 72,730 | |||
Repayments of subordinated debt | $ 341 | $ 625 | $ 966 | $ 0 |
Income Taxes - Tax Expense (Det
Income Taxes - Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 5,204 | $ 2,682 | $ 9,740 | $ 5,021 |
Effective tax rates (percent) | 33.00% | 34.40% | 32.70% | 33.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Federal income tax at statutory rate (percent) | 35.00% |
Fair Value Measurements-Assets
Fair Value Measurements-Assets and Liabilities at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | $ 1,006 | $ 1,006 |
Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 55,542 | 58,023 |
Obligations of state and municipal subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 73,370 | 76,899 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 1,081 | |
Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 50,547 | 69,053 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of state and municipal subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 1,006 | 1,006 |
Significant Other Observable Inputs (Level 2) | Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 55,542 | 58,023 |
Significant Other Observable Inputs (Level 2) | Obligations of state and municipal subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 73,370 | 76,899 |
Significant Other Observable Inputs (Level 2) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 1,081 | |
Significant Other Observable Inputs (Level 2) | Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 50,547 | 69,053 |
Significant Unobservable Inputs (Level 3) | U.S. treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Obligations of state and municipal subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | Residential pass-through securities guaranteed by FNMA, GNMA, FHLMC and FHR | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | $ 0 | $ 0 |
Fair Value Measurements-Asset59
Fair Value Measurements-Assets and Liabilities at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | $ 3,339 | $ 4,943 |
Period Ended Total Losses | 1,291 | 188 |
Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 209 | 138 |
Period Ended Total Losses | 25 | 22 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | 3,339 | 4,943 |
Significant Unobservable Inputs (Level 3) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, measured on a nonrecurring basis | $ 209 | $ 138 |
Fair Value Measurements-Carryin
Fair Value Measurements-Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Securities available for sale | $ 180,465 | $ 206,062 |
Financial liabilities: | ||
Repurchase agreements | 5,374 | 4,012 |
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 664,352 | 574,452 |
Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 657,881 | 565,881 |
Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 6,471 | 8,571 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 424,196 | 324,047 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
FHLB of Dallas stock and other restricted stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Other borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 180,465 | 206,062 |
Loans held for sale | 7,237 | 4,453 |
Loans, net | 3,362,067 | 3,200,261 |
FHLB of Dallas stock and other restricted stock | 11,941 | 12,321 |
Accrued interest receivable | 9,483 | 9,655 |
Financial liabilities: | ||
Deposits | 3,470,459 | 3,252,114 |
Accrued interest payable | 2,739 | 2,919 |
FHLB advances | 202,278 | 228,607 |
Repurchase agreements | 5,374 | 4,012 |
Other borrowings | 74,241 | 75,164 |
Junior subordinated debentures | 18,120 | 18,134 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 5,469 | 3,076 |
FHLB of Dallas stock and other restricted stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB advances | 0 | 0 |
Repurchase agreements | 0 | 0 |
Other borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 424,196 | 324,047 |
Securities available for sale | 180,465 | 206,062 |
Loans held for sale | 7,237 | 4,453 |
Loans, net | 3,352,846 | 3,182,045 |
FHLB of Dallas stock and other restricted stock | 11,941 | 12,321 |
Accrued interest receivable | 9,483 | 9,655 |
Financial liabilities: | ||
Deposits | 3,467,484 | 3,249,598 |
Accrued interest payable | 2,739 | 2,919 |
FHLB advances | 194,366 | 229,405 |
Repurchase agreements | 5,374 | 4,012 |
Other borrowings | 71,764 | 72,730 |
Junior subordinated debentures | 18,147 | 18,147 |
Carrying Amount | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Carrying Amount | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 424,196 | 324,047 |
Securities available for sale | 180,465 | 206,062 |
Loans held for sale | 7,237 | 4,453 |
Loans, net | 3,367,536 | 3,203,337 |
FHLB of Dallas stock and other restricted stock | 11,941 | 12,321 |
Accrued interest receivable | 9,483 | 9,655 |
Financial liabilities: | ||
Deposits | 3,470,459 | 3,252,114 |
Accrued interest payable | 2,739 | 2,919 |
FHLB advances | 202,278 | 228,607 |
Repurchase agreements | 5,374 | 4,012 |
Other borrowings | 74,241 | 75,164 |
Junior subordinated debentures | 18,120 | 18,134 |
Estimated Fair Value | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Estimated Fair Value | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | $ 0 | $ 0 |
Stock Awards and Stock Warran61
Stock Awards and Stock Warrants Stock Awards and Stock Warrants (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Number of Shares | ||
Nonvested shares, beginning balance (shares) | 373,886 | 306,524 |
Granted during the period (shares) | 87,124 | 189,069 |
Vested during the period (shares) | (79,642) | (113,964) |
Forfeited during the period (shares) | (14,599) | |
Nonvested shares, ending balance (shares) | 366,769 | 381,629 |
Weighted Average Grant Date Fair Value | ||
Nonvested shares, beginning balance (usd per share) | $ 41.58 | $ 22.75 |
Granted during the period (usd per share) | 31.41 | 56.70 |
Vested during the period (usd per share) | 42.18 | 19.93 |
Forfeited during the period (usd per share) | 28.82 | |
Nonvested shares, ending balance (usd per share) | $ 40.19 | $ 40.41 |
Stock Awards and Stock Warran62
Stock Awards and Stock Warrants - Future Vesting Schedule of Nonvested Shares (Details) | Jun. 30, 2015shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 366,769 |
First year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 106,359 |
Second year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 131,752 |
Third year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 92,058 |
Fourth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 34,600 |
Fifth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 2,000 |
Stock Awards and Stock Warran63
Stock Awards and Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock vesting period | 5 years | ||||
Compensation expense | $ 1,002 | $ 780 | $ 2,099 | $ 1,170 | |
Period for recognition | 3 years 6 months 21 days | ||||
Estimated future compensation expense | $ 12,559 | $ 12,559 | |||
Fair value of common stock awards vested | 3,045 | 6,015 | |||
AOCI income tax effect from share-based compensation, net | $ (66) | $ 1,022 | |||
Issuance of warrant (shares) | 150,544 | ||||
Purchase price of common stock, per share (usd per share) | $ 17.19 | ||||
2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance (shares) | 800,000 | 800,000 | |||
Minimum | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock vesting period | 3 years | ||||
Maximum | 2013 Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock vesting period | 5 years |
Regulatory Matters-Actual Capit
Regulatory Matters-Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Consolidated | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 428,491 | $ 402,326 |
Actual Ratio (percent) | 12.05% | 12.59% |
Minimum Required for Capital Adequacy Purposes Amount | $ 284,542 | $ 255,633 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 337,669 | $ 314,136 |
Actual Ratio (percent) | 9.49% | 9.83% |
Minimum Required for Capital Adequacy Purposes Amount | $ 213,407 | $ 127,817 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 6.00% | 4.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 296,131 | |
Actual Ratio (percent) | 8.33% | |
Minimum Required for Capital Adequacy Purposes Amount | $ 160,055 | |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.50% | |
Tier 1 capital to average assets: | ||
Actual Amount | $ 337,669 | $ 314,136 |
Actual Ratio (percent) | 8.40% | 8.15% |
Minimum Required for Capital Adequacy Purposes Amount | $ 160,876 | $ 154,270 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
Bank | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 423,024 | $ 397,512 |
Actual Ratio (percent) | 11.90% | 12.46% |
Minimum Required for Capital Adequacy Purposes Amount | $ 284,338 | $ 255,219 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 355,423 | $ 319,024 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 401,260 | $ 378,960 |
Actual Ratio (percent) | 11.29% | 11.88% |
Minimum Required for Capital Adequacy Purposes Amount | $ 213,254 | $ 127,609 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 6.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 284,338 | $ 191,414 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 8.00% | 6.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 401,260 | |
Actual Ratio (percent) | 11.29% | |
Minimum Required for Capital Adequacy Purposes Amount | $ 159,940 | |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.50% | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 231,025 | |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 6.50% | |
Tier 1 capital to average assets: | ||
Actual Amount | $ 401,260 | $ 378,960 |
Actual Ratio (percent) | 9.99% | 9.93% |
Minimum Required for Capital Adequacy Purposes Amount | $ 160,727 | $ 152,598 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 200,909 | $ 190,747 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 5.00% | 5.00% |
Business Combination - Addition
Business Combination - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2015USD ($)property | Jun. 30, 2014USD ($) | |
Business Acquisition [Line Items] | ||
Increase (decrease) in Goodwill | $ 361,000 | $ 749,000 |
Increase (decrease) in deferred tax asset | 193,000 | 109,000 |
Increase (decrease) in other liabilities | 0 | 505,000 |
Increase (decrease) in real estate owned | (373,000) | $ 0 |
BOH Holdings, Inc. | ||
Business Acquisition [Line Items] | ||
Increase (decrease) in Goodwill | 118,000 | |
Increase (decrease) in deferred tax asset | 63,000 | |
Increase (decrease) in other liabilities | (181,000) | |
Houston Community Bancshares | ||
Business Acquisition [Line Items] | ||
Increase (decrease) in Goodwill | 243,000 | |
Increase (decrease) in deferred tax asset | $ 130,000 | |
Disposition of real estate owned properties, number | property | 2 | |
Writedown of real estate owned property, number | property | 1 | |
Increase (decrease) in real estate owned | $ (373,000) |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event | Jul. 31, 2015$ / shares | Jul. 23, 2015USD ($) | Jul. 22, 2015USD ($)bank | Jul. 21, 2015USD ($) |
Subsequent Event [Line Items] | ||||
Dividends declared (per share) | $ / shares | $ 0.08 | |||
Grand Bank | ||||
Subsequent Event [Line Items] | ||||
Business combination, consideration transferred | $ 80,100,000 | |||
Revolving credit facility | Line of credit | ||||
Subsequent Event [Line Items] | ||||
Line of credit facility, number of unaffiliated banks | bank | 2 | |||
Maximum borrowing capacity | $ 50,000,000 | $ 35,000,000 | ||
Revolving credit facility | LIBOR | Line of credit | ||||
Subsequent Event [Line Items] | ||||
Basis spread on variable rate | 2.50% |