Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 26, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 18,460,978 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 89,631 | $ 129,096 |
Interest-bearing deposits in other banks | 266,895 | 164,183 |
Cash and cash equivalents | 356,526 | 293,279 |
Certificates of deposit held in other banks | 39,334 | 61,746 |
Securities available for sale (amortized cost of $298,693 and $270,711, respectively) | 302,650 | 273,463 |
Loans held for sale | 8,515 | 12,299 |
Loans, net of allowance for loan losses of $29,984 and $27,043, respectively | 4,098,573 | 3,960,809 |
Premises and equipment, net | 92,599 | 93,015 |
Other real estate owned | 1,745 | 2,168 |
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 22,400 | 14,256 |
Bank-owned life insurance (BOLI) | 41,126 | 40,861 |
Deferred tax asset | 4,754 | 5,892 |
Goodwill | 258,319 | 258,643 |
Core deposit intangible, net | 15,653 | 16,357 |
Other assets | 19,773 | 22,212 |
Total assets | 5,261,967 | 5,055,000 |
Deposits: | ||
Noninterest-bearing | 1,070,611 | 1,071,656 |
Interest-bearing | 3,101,341 | 2,956,623 |
Total deposits | 4,171,952 | 4,028,279 |
FHLB advances | 380,805 | 288,325 |
Repurchase agreements | 0 | 12,160 |
Other borrowings | 63,890 | 68,295 |
Other borrowings, related parties | 50 | 2,503 |
Junior subordinated debentures | 18,147 | 18,147 |
Other liabilities | 10,865 | 9,982 |
Total liabilities | $ 4,645,709 | $ 4,427,691 |
Commitments and contingencies | ||
Temporary equity: Series A preferred stock (0 and 23,938.35 shares issued and outstanding, respectively) | $ 0 | $ 23,938 |
Stockholders’ equity: | ||
Common stock (18,461,480 and 18,399,194 shares outstanding, respectively) | 185 | 184 |
Additional paid-in capital | 531,243 | 530,107 |
Retained earnings | 81,665 | 70,698 |
Accumulated other comprehensive income | 3,165 | 2,382 |
Total stockholders’ equity | 616,258 | 603,371 |
Total liabilities, temporary equity and stockholders’ equity | $ 5,261,967 | $ 5,055,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized cost of securities available for sale | $ 298,693 | $ 270,711 |
Allowance for loan losses | $ 29,984 | $ 27,043 |
Common stock, shares outstanding (shares) | 18,461,480 | 18,399,194 |
Series A Preferred Stock | ||
Preferred stock, shares issued (shares) | 0 | 23,938.35 |
Preferred stock, shares outstanding (shares) | 0 | 23,938.35 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Interest and fees on loans | $ 49,910 | $ 39,580 |
Interest on taxable securities | 730 | 609 |
Interest on nontaxable securities | 451 | 414 |
Interest on interest-bearing deposits and other | 373 | 133 |
Total interest income | 51,464 | 40,736 |
Interest expense: | ||
Interest on deposits | 3,651 | 2,709 |
Interest on FHLB advances | 1,001 | 752 |
Interest on repurchase agreements and other borrowings | 1,003 | 1,069 |
Interest on junior subordinated debentures | 149 | 128 |
Total interest expense | 5,804 | 4,658 |
Net interest income | 45,660 | 36,078 |
Provision for loan losses | 2,997 | 1,670 |
Net interest income after provision for loan losses | 42,663 | 34,408 |
Noninterest income: | ||
Service charges on deposit accounts | 1,695 | 1,585 |
Mortgage fee income | 1,376 | 1,300 |
Gain on sale of other real estate | 43 | 130 |
Gain on sale of premises and equipment | 38 | 0 |
Increase in cash surrender value of BOLI | 265 | 270 |
Other | 1,053 | 681 |
Total noninterest income | 4,470 | 3,966 |
Noninterest expense: | ||
Salaries and employee benefits | 16,774 | 14,424 |
Occupancy | 4,040 | 3,910 |
Data processing | 1,182 | 688 |
FDIC assessment | 726 | 519 |
Advertising and public relations | 295 | 346 |
Communications | 535 | 539 |
Net other real estate owned expenses (including taxes) | 33 | 59 |
Other real estate impairment | 55 | 0 |
Core deposit intangible amortization | 488 | 372 |
Professional fees | 660 | 490 |
Acquisition expense, including legal | 639 | 472 |
Other | 3,092 | 2,567 |
Total noninterest expense | 28,519 | 24,386 |
Income before taxes | 18,614 | 13,988 |
Income tax expense | 6,162 | 4,536 |
Net income | $ 12,452 | $ 9,452 |
Basic earnings per share (usd per share) | $ 0.67 | $ 0.55 |
Diluted earnings per share (usd per share) | $ 0.67 | $ 0.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,452 | $ 9,452 |
Other comprehensive income before tax: | ||
Change in net unrealized gains on available for sale securities during the year | 1,205 | 1,381 |
Reclassification adjustment for gain on sale of securities available for sale included in net income | 0 | 0 |
Other comprehensive income before tax | 1,205 | 1,381 |
Income tax expense | 422 | 483 |
Other comprehensive income, net of tax | 783 | 898 |
Comprehensive income | $ 13,235 | $ 10,350 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Series A Preferred Stock $.01 Par Value 10 million shares authorized | Common Stock $.01 Par Value 100 million shares authorized | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Income |
Beginning balance (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 | 9,452 | 9,452 | ||||
Other comprehensive income, net of tax | 898 | 898 | ||||
Offering costs related to acquired bank | (144) | (144) | ||||
Restricted stock granted (shares) | 87,124 | |||||
Restricted stock granted | 0 | $ 1 | (1) | |||
Stock based compensation expense | 1,097 | 1,097 | ||||
Income tax benefit (deficiency) on restricted stock vested | 3 | 3 | ||||
Preferred stock dividends | (60) | (60) | ||||
Dividends ($0.08 per share in 2016 and $0.08 per share in 2015) | (1,369) | (1,369) | ||||
Ending balance (shares) at Mar. 31, 2015 | 17,119,793 | |||||
Ending balance at Mar. 31, 2015 | 550,728 | 23,938 | $ 171 | 477,564 | 45,754 | 3,301 |
Beginning balance (shares) at Dec. 31, 2015 | 18,399,194 | |||||
Beginning balance at Dec. 31, 2015 | 603,371 | 0 | $ 184 | 530,107 | 70,698 | 2,382 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,452 | 12,452 | ||||
Other comprehensive income, net of tax | 783 | 783 | ||||
Restricted stock forfeited (shares) | (5,534) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 67,820 | |||||
Restricted stock granted | 0 | $ 1 | (1) | |||
Stock based compensation expense | 1,220 | 1,220 | ||||
Income tax benefit (deficiency) on restricted stock vested | (83) | (83) | ||||
Preferred stock dividends | (8) | (8) | ||||
Dividends ($0.08 per share in 2016 and $0.08 per share in 2015) | (1,477) | (1,477) | ||||
Ending balance (shares) at Mar. 31, 2016 | 18,461,480 | |||||
Ending balance at Mar. 31, 2016 | $ 616,258 | $ 0 | $ 185 | $ 531,243 | $ 81,665 | $ 3,165 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (usd per share) | $ 0.08 | $ 0.08 |
Common stock par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (shares) | 100,000,000 | 100,000,000 |
Preferred stock par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (shares) | 10,000,000 | 10,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 12,452 | $ 9,452 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 1,639 | 1,521 |
Accretion of income recognized on acquired loans | (1,333) | (113) |
Amortization of core deposit intangibles | 488 | 372 |
Amortization of premium on securities, net | 377 | 426 |
Stock based compensation expense | 1,220 | 1,097 |
FHLB stock dividends | (36) | (12) |
Gain on sale of premises and equipment | (38) | 0 |
Gain recognized on other real estate transactions | (43) | (130) |
Impairment of other real estate | 55 | 0 |
Deferred tax expense (benefit) | 594 | (599) |
Provision for loan losses | 2,997 | 1,670 |
Increase in cash surrender value of life insurance | (265) | (270) |
Loans originated for sale | (49,481) | (55,984) |
Proceeds from sale of loans | 53,265 | 53,403 |
Net change in other assets | 1,326 | 6,446 |
Net change in other liabilities | 780 | (13,081) |
Net cash provided by operating activities | 23,997 | 4,198 |
Cash flows from investing activities: | ||
Proceeds from maturities, calls and pay downs of securities available for sale | 16,479 | 8,868 |
Purchases of securities available for sale | (44,838) | 0 |
Proceeds from maturities of certificates held in other banks | 22,412 | 0 |
Net purchases of FHLB stock | (8,108) | 0 |
Net loans originated | (138,693) | (102,533) |
Additions to premises and equipment | (1,269) | (2,782) |
Proceeds from sale of premises and equipment | 84 | 0 |
Proceeds from sale of other real estate owned | 411 | 316 |
Capitalized additions to other real estate owned | 0 | (10) |
Net cash used in investing activities | (153,522) | (96,141) |
Cash flows from financing activities: | ||
Net increase in demand deposits, NOW and savings accounts | 163,847 | 98,901 |
Net (decrease) increase in time deposits | (40,862) | 38,179 |
Proceeds from FHLB advances | 225,000 | 55,000 |
Repayments of FHLB advances | (132,520) | (65,019) |
Net change in repurchase agreements | 8,528 | 1,771 |
Repayments of other borrowings | (5,798) | (625) |
Redemption of preferred stock | (23,938) | 0 |
Offering costs paid in connection with acquired banks | 0 | (144) |
Dividends paid | (1,485) | (1,369) |
Net cash provided by financing activities | 192,772 | 126,694 |
Net change in cash and cash equivalents | 63,247 | 34,751 |
Cash and cash equivalents at beginning of year | 293,279 | 324,047 |
Cash and cash equivalents at end of period | $ 356,526 | $ 358,798 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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., IBG Aircraft Company III, Preston Grand, Inc, and McKinney Avenue Holdings, Inc. and its wholly owned subsidiary, McKinney Avenue SPE 1, Inc. McKinney Avenue Holdings, Inc. and its subsidiary were formed during the first quarter 2016 for the purpose of possible future asset holdings. Adriatica became inactive in 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, 2015. The consolidated statement of condition at December 31, 2015 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. Reclassifications: Certain prior period financial statement amounts have been reclassified to conform to current period presentation. Redemption of Small Business Lending Fund Series A Preferred Stock: On January 14, 2016, the Company redeemed all outstanding shares of its Senior Non-Cumulative Perpetual Small Business Lending Fund Series A Preferred Stock held by the Treasury and related accrued dividends. 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 Securities and Exchange Commission (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 participating nonvested common stock was not included in dilutive shares as it was anti-dilutive for the three months ended March 31, 2015. 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 March 31, 2016 2015 Basic earnings per share: Net income $ 12,452 $ 9,452 Less: Preferred stock dividends (8 ) (60 ) Net income after preferred stock dividends 12,444 9,392 Less: Undistributed earnings allocated to participating securities 211 178 Dividends paid on participating securities 28 30 Net income available to common shareholders $ 12,205 $ 9,184 Weighted-average basic shares outstanding 18,089,853 16,712,527 Basic earnings per share $ 0.67 $ 0.55 Diluted earnings per share: Net income available to common shareholders $ 12,205 $ 9,184 Total weighted-average basic shares outstanding 18,089,853 16,712,527 Add dilutive stock warrants 61,492 77,933 Add dilutive participating securities 22,255 — Total weighted-average diluted shares outstanding 18,173,600 16,790,460 Diluted earnings per share $ 0.67 $ 0.55 Anti-dilutive participating securities — 19,705 |
Statement of Cash Flows
Statement of Cash Flows | 3 Months Ended |
Mar. 31, 2016 | |
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: Three Months Ended March 31, 2016 2015 Cash transactions: Interest expense paid $ 6,823 $ 5,754 Income taxes paid $ 760 $ 6,150 Noncash transactions: Accrued preferred stock dividends $ — $ 60 Excess tax benefit (tax deficiency) on restricted stock vested $ (83 ) $ 3 Transfer of repurchase agreements to deposits $ 20,688 $ — The supplemental schedule of noncash investing activities from Company acquisition activity includes the following measurement-period adjustments made during the period: Three Months Ended March 31, 2016 2015 Assets acquired: Loans $ 735 $ — Goodwill (324 ) 182 Core deposit intangibles (216 ) — Deferred tax asset (175 ) — Total assets $ 20 $ 182 Liabilities assumed: Other liabilities 20 182 Total liabilities $ 20 $ 182 |
Securities Available for Sale
Securities Available for Sale | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale March 31, 2016 U.S. treasuries $ 999 $ 2 $ — $ 1,001 Government agency securities 171,397 420 (197 ) 171,620 Obligations of state and municipal subdivisions 78,603 2,401 (189 ) 80,815 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 47,694 1,520 — 49,214 $ 298,693 $ 4,343 $ (386 ) $ 302,650 December 31, 2015 U.S. treasuries $ 999 $ 3 $ — $ 1,002 Government agency securities 135,630 237 (567 ) 135,300 Obligations of state and municipal subdivisions 83,442 2,222 (248 ) 85,416 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 50,640 1,202 (97 ) 51,745 $ 270,711 $ 3,664 $ (912 ) $ 273,463 Securities with a carrying amount of approximately $ 193,326 and $ 195,479 at March 31, 2016 and December 31, 2015, respectively, were pledged to secure public fund deposits and repurchase agreements. There were no sales of securities during the three months ended March 31, 2016 and 2015. The amortized cost and estimated fair value of securities available for sale at March 31, 2016 , 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. March 31, 2016 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 18,520 $ 18,530 Due from one year to five years 168,443 168,695 Due from five to ten years 28,662 29,256 Thereafter 35,374 36,955 250,999 253,436 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 47,694 49,214 $ 298,693 $ 302,650 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 March 31, 2016 and December 31, 2015, 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 March 31, 2016 Government agency securities 29 $ 78,228 $ (189 ) 2 $ 1,992 $ (8 ) $ 80,220 $ (197 ) Obligations of state and municipal subdivisions 27 12,845 (106 ) 8 4,652 (83 ) 17,497 (189 ) 56 $ 91,073 $ (295 ) 10 $ 6,644 $ (91 ) $ 97,717 $ (386 ) December 31, 2015 Government agency securities 25 $ 84,798 $ (531 ) 4 $ 4,964 $ (36 ) $ 89,762 $ (567 ) Obligations of state and municipal subdivisions 32 16,202 (88 ) 19 8,662 (160 ) 24,864 (248 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 6 10,765 (97 ) — — — 10,765 (97 ) 63 $ 111,765 $ (716 ) 23 $ 13,626 $ (196 ) $ 125,391 $ (912 ) 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 | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Loan Losses Loans, net at March 31, 2016 and December 31, 2015, consisted of the following: March 31, December 31, 2016 2015 Commercial $ 714,789 $ 731,818 Real estate: Commercial 2,080,550 1,949,734 Commercial construction, land and land development 418,197 419,611 Residential 619,647 607,990 Single family interim construction 218,746 187,984 Agricultural 46,616 50,178 Consumer 31,821 41,966 Other 130 124 4,130,496 3,989,405 Deferred loan fees (1,939 ) (1,553 ) Allowance for loan losses (29,984 ) (27,043 ) $ 4,098,573 $ 3,960,809 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 March 31, 2016 and December 31, 2015, there were approximately $ 173.2 million and $ 182.5 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 1% 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 March 31, 2016 and December 31, 2015 , 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; change in value of underlying collateral; 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 annually. 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 ongoing volatility in oil prices has the potential to have a negative impact on the Texas economy, specifically in Houston. The risk of loss associated with all segments of the portfolio could increase due to this impact. The Company increased its allowance for loan losses during the quarter ended March 31, 2016 in consideration of this risk to the energy portfolio. 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 months ended March 31, 2016 and 2015 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended March 31, 2016 Balance at the beginning of period $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Provision for loan losses 1,592 1,046 133 220 (28 ) (3 ) 30 7 2,997 Charge-offs — (54 ) — — — (1 ) (23 ) — (78 ) Recoveries 8 2 1 — — 2 9 — 22 Balance at end of period $ 12,173 $ 14,001 $ 2,473 $ 989 $ 187 $ 162 $ 16 $ (17 ) $ 29,984 Three months ended March 31, 2015 Balance at the beginning of period $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Provision for loan losses 1,023 526 (13 ) 65 (8 ) 29 — 48 1,670 Charge-offs — — — — — (36 ) — — (36 ) Recoveries 4 18 2 — — 17 — — 41 Balance at end of period $ 6,078 $ 10,654 $ 2,194 $ 734 $ 238 $ 156 $ — $ 173 $ 20,227 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of March 31, 2016 and December 31, 2015: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total March 31, 2016 Allowance for losses: Individually evaluated for impairment $ 3,563 $ 4 $ — $ — $ — $ — $ — $ — $ 3,567 Collectively evaluated for impairment 8,610 13,997 2,473 989 187 162 16 (17 ) 26,417 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 12,173 $ 14,001 $ 2,473 $ 989 $ 187 $ 162 $ 16 $ (17 ) $ 29,984 Loans: Individually evaluated for impairment $ 23,973 $ 2,186 $ 3,178 $ — $ — $ 76 $ — $ — $ 29,413 Collectively evaluated for impairment 686,828 2,462,162 614,438 218,746 46,616 31,725 130 — 4,060,645 Acquired with deteriorated credit quality 3,988 34,399 2,031 — — 20 — — 40,438 Ending balance $ 714,789 $ 2,498,747 $ 619,647 $ 218,746 $ 46,616 $ 31,821 $ 130 $ — $ 4,130,496 December 31, 2015 Allowance for losses: Individually evaluated for impairment $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ — $ 3,203 Collectively evaluated for impairment 7,488 12,891 2,339 769 215 162 — (24 ) 23,840 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Loans: Individually evaluated for impairment $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ — $ 15,470 Collectively evaluated for impairment 720,732 2,321,209 602,206 187,984 50,008 41,835 124 — 3,924,098 Acquired with deteriorated credit quality 3,704 43,465 2,648 — — 20 — — 49,837 Ending balance $ 731,818 $ 2,369,345 $ 607,990 $ 187,984 $ 50,178 $ 41,966 $ 124 $ — $ 3,989,405 Nonperforming loans by loan class at March 31, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total March 31, 2016 Nonaccrual loans $ 23,961 $ 60 $ 558 $ — $ — $ 76 $ — $ 24,655 Loans past due 90 days and still accruing — — 472 — — 3 — 475 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 12 2,126 2,611 — — — — 4,749 $ 23,973 $ 2,186 $ 3,641 $ — $ — $ 79 $ — $ 29,879 December 31, 2015 Nonaccrual loans $ 7,366 $ 591 $ 552 $ — $ 170 $ 111 $ — $ 8,790 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 16 3,480 2,574 — — — — 6,070 $ 7,382 $ 4,071 $ 3,126 $ — $ 170 $ 111 $ — $ 14,860 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 March 31, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total March 31, 2016 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,799 $ 78 $ — $ — $ — $ — $ — $ 6,877 Impaired loans with no allowance for loan losses 17,174 2,108 3,178 — — 76 — 22,536 Total $ 23,973 $ 2,186 $ 3,178 $ — $ — $ 76 $ — $ 29,413 Unpaid principal balance of impaired loans $ 24,109 $ 2,227 $ 3,195 $ — $ — $ 99 $ — $ 29,630 Allowance for loan losses on impaired loans $ 3,563 $ 4 $ — $ — $ — $ — $ — $ 3,567 December 31, 2015 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 7,221 $ 1,930 $ — $ — $ — $ 5 $ — $ 9,156 Impaired loans with no allowance for loan losses 161 2,741 3,136 — 170 106 — 6,314 Total $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ 15,470 Unpaid principal balance of impaired loans $ 7,520 $ 4,936 $ 3,204 $ — $ 172 $ 133 $ — $ 15,965 Allowance for loan losses on impaired loans $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ 3,203 For the three months ended March 31, 2016 Average recorded investment in impaired loans $ 15,677 $ 3,429 $ 3,157 $ — $ 85 $ 94 $ — $ 22,442 Interest income recognized on impaired loans $ 366 $ 36 $ 40 $ — $ — $ — $ — $ 442 For the three months ended March 31, 2015 Average recorded investment in impaired loans $ 3,689 $ 6,627 $ 3,302 $ — $ — $ 76 $ — $ 13,694 Interest income recognized on impaired loans $ 21 $ 93 $ 29 $ — $ — $ — $ — $ 143 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. 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. The recorded investment in troubled debt restructurings, including those on nonaccrual, was $4,845 and $6,691 as of March 31, 2016 and December 31, 2015. Following is a summary of loans modified under troubled debt restructurings during the three months ended March 31, 2016 and 2015 : . 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 March 31, 2016 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the three months ended March 31, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — At March 31, 2016 and 2015, there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three months ended March 31, 2016 and 2015, respectively. At March 31, 2016 and 2015, the Company had no commitments to lend additional funds to any borrowers with loans whose terms have been modified under troubled debt restructurings. 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 March 31, 2016 and December 31, 2015: Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans March 31, 2016 Commercial $ 21,573 $ 6,770 $ 28,343 $ 686,446 $ 714,789 Commercial real estate, land and land development 1,520 — 1,520 2,497,227 2,498,747 Residential real estate 1,259 708 1,967 617,680 619,647 Single-family interim construction 967 — 967 217,779 218,746 Agricultural 43 — 43 46,573 46,616 Consumer 125 3 128 31,693 31,821 Other — — — 130 130 $ 25,487 $ 7,481 $ 32,968 $ 4,097,528 $ 4,130,496 December 31, 2015 Commercial $ 2,740 $ 7,220 $ 9,960 $ 721,858 $ 731,818 Commercial real estate, land and land development 2,059 — 2,059 2,367,286 2,369,345 Residential real estate 1,456 330 1,786 606,204 607,990 Single-family interim construction 503 — 503 187,481 187,984 Agricultural 89 170 259 49,919 50,178 Consumer 290 26 316 41,650 41,966 Other — — — 124 124 $ 7,137 $ 7,746 $ 14,883 $ 3,974,522 $ 3,989,405 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 March 31, 2016 and December 31, 2015 , is as follows: Pass Pass/ Watch OAEM Substandard Doubtful Total March 31, 2016 Commercial $ 590,490 $ 55,912 $ 19,446 $ 48,941 $ — $ 714,789 Commercial real estate, construction, land and land development 2,482,565 11,469 3,281 1,432 — 2,498,747 Residential real estate 612,026 1,436 1,288 4,897 — 619,647 Single-family interim construction 217,779 — 967 — — 218,746 Agricultural 44,850 64 1,702 — — 46,616 Consumer 31,540 30 19 232 — 31,821 Other 130 — — — — 130 $ 3,979,380 $ 68,911 $ 26,703 $ 55,502 $ — $ 4,130,496 December 31, 2015 Commercial $ 616,149 $ 46,607 $ 44,469 $ 24,593 $ — $ 731,818 Commercial real estate, construction, land and land development 2,343,883 18,463 3,341 3,658 — 2,369,345 Residential real estate 599,937 2,150 982 4,921 — 607,990 Single-family interim construction 187,984 — — — — 187,984 Agricultural 48,185 66 1,757 170 — 50,178 Consumer 41,601 57 32 276 — 41,966 Other 124 — — — — 124 $ 3,837,863 $ 67,343 $ 50,581 $ 33,618 $ — $ 3,989,405 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 three months ended March 31, 2016. The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans as of the respective acquisition date for the acquisition occurring in 2015: Acquisition Date November 1, 2015 Grand Bank Outstanding balance $ 3,548 Nonaccretable difference (593 ) Accretable yield — Carrying amount $ 2,955 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at March 31, 2016 and December 31, 2015, were as follows: March 31, 2016 December 31, 2015 Outstanding balance $ 46,514 $ 57,178 Carrying amount 40,438 49,837 There was no allocation established in the allowance for loan losses relating to PCI loans at March 31, 2016 or December 31, 2015. The changes in accretable yield during the three months ended March 31, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. For the Three Months Ended March 31, 2016 2015 Balance at January 1, $ 2,380 $ 2,546 Additions — — Accretion (302 ) (184 ) Transfers from nonaccretable — — Balance at March 31, $ 2,078 $ 2,362 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , the approximate amounts of these financial instruments were as follows: March 31, December 31, 2016 2015 Commitments to extend credit $ 858,317 $ 838,341 Standby letters of credit 9,835 10,361 $ 868,152 $ 848,702 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 March 31, 2016 and December 31, 2015 , 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 $ 675 and $ 483 for the three months ended March 31, 2016 and 2015, respectively. |
Repurchase Agreements and Other
Repurchase Agreements and Other Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Repurchase Agreements and Other Borrowings | Repurchase Agreements and Other Borrowings At March 31, 2016 and December 31, 2015, repurchase agreements totaled $0 and $12,160 , respectively. During the three months ended March 31, 2016, repurchase agreements were transferred to deposit accounts. Other borrowings, including those borrowings due to related parties totaled $63,940 and $70,798 at March 31, 2016 and December 31, 2015, respectively. The balance of borrowings at March 31, 2016 is net of deferred originations costs of $1,060 . In January 2016, the Company redeemed two debenture issuances in full with principal payments totaling $5,798 plus all interest accrued at time of redemption. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three months ended March 31, 2016 and 2015 was as follows: Three Months Ended March 31, 2016 2015 Income tax expense for the period $ 6,162 $ 4,536 Effective tax rate 33.1 % 32.4 % 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 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) March 31, 2016 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,001 $ — $ 1,001 $ — Government agency securities 171,620 — 171,620 — Obligations of state and municipal subdivisions 80,815 — 80,815 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 49,214 — 49,214 — December 31, 2015 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,002 $ — $ 1,002 $ — Government agency securities 135,300 — 135,300 — Obligations of state and municipal subdivisions 85,416 — 85,416 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 51,745 — 51,745 — 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 March 31, 2016 and December 31, 2015, 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 March 31, 2016 Measured on a nonrecurring basis: Assets: Impaired loans $ 6,194 $ — $ — $ 6,194 $ 480 Other real estate 702 — — 702 55 December 31, 2015 Measured on a nonrecurring basis: Assets: Impaired loans $ 4,827 $ — $ — $ 4,827 $ 3,029 Other real estate 577 — — 577 35 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. 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 March 31, 2016 and December 31, 2015, 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. Certificates of deposit held in other banks: The fair value of certificates of deposit held in other banks is based upon current rates in the market. 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 debentures 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 March 31, 2016 and December 31, 2015: 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) March 31, 2016 Financial assets: Cash and cash equivalents $ 356,526 $ 356,526 $ 356,526 $ — $ — Certificates of deposit held in other banks 39,334 39,389 — 39,389 — Securities available for sale 302,650 302,650 — 302,650 — Loans held for sale 8,515 8,515 — 8,515 — Loans, net 4,098,573 4,102,030 — 4,098,720 3,310 FHLB of Dallas stock and other restricted stock 22,400 22,400 — 22,400 — Accrued interest receivable 10,472 10,472 — 10,472 — Financial liabilities: Deposits 4,171,952 4,175,251 — 4,175,251 — Accrued interest payable 1,773 1,773 — 1,773 — FHLB advances 380,805 380,237 — 380,805 — Other borrowings 63,940 64,025 — 64,025 — Junior subordinated debentures 18,147 18,140 — 18,140 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2015 Financial assets: Cash and cash equivalents $ 293,279 $ 293,279 $ 293,279 $ — $ — Certificates of deposit held in other banks 61,746 61,873 — 61,873 — Securities available for sale 273,463 273,463 — 273,463 — Loans held for sale 12,299 12,299 — 12,299 — Loans, net 3,960,809 3,966,199 — 3,960,246 5,953 FHLB of Dallas stock and other restricted stock 14,256 14,256 — 14,256 — Accrued interest receivable 10,991 10,991 — 10,991 — Financial liabilities: Deposits 4,028,279 4,031,365 — 4,031,365 — Accrued interest payable 2,792 2,792 — 2,792 — FHLB advances 288,325 295,345 — 295,345 — Repurchase agreements 12,160 12,160 — 12,160 — Other borrowings 70,798 70,935 — 70,935 — Junior subordinated debentures 18,147 18,128 — 18,128 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — |
Stock Awards and Stock Warrants
Stock Awards and Stock Warrants | 3 Months Ended |
Mar. 31, 2016 | |
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. During the three months ended March 31, 2016, 1,600 shares that were issued under the 2012 Plan vested during the period. The following table summarizes the activity in nonvested shares for the three months ended March 31, 2016 and 2015 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2015 373,572 $ 40.29 Granted during the period 66,220 29.91 Vested during the period (44,220 ) 32.61 Forfeited during the period (6,334 ) 42.25 Nonvested shares, March 31, 2016 389,238 $ 39.20 Nonvested shares, December 31, 2014 373,886 $ 41.58 Granted during the period 87,124 31.41 Vested during the period (19,016 ) 32.98 Nonvested shares, March 31, 2015 441,994 $ 40.16 Compensation expense related to these awards is recorded based on the fair value of the award at the date of grant and totaled $1,220 and $1,097 for the three months ended March 31, 2016 and 2015, respectively. Compensation expense is recorded in salaries and employee benefits in the accompanying consolidated statements of income. At March 31, 2016 , future compensation expense is estimated to be $11,385 and will be recognized over a remaining weighted average period of 2.62 years. The fair value of common stock awards that vested during the three months ended March 31, 2016 and 2015 was $1,306 and $635 , respectively. The Company has recorded $ (83) and $ 3 to additional paid in capital, which represents the income tax deficiency and excess tax benefit, respectively, recognized on the vested shares for the three months ended March 31, 2016 and 2015, respectively. At March 31, 2016 , the future vesting schedule of the nonvested shares is as follows: First year 144,098 Second year 125,752 Third year 81,388 Fourth year 35,800 Fifth year 2,200 Total nonvested shares 389,238 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 warrants were recorded as equity awards at fair value and were being amortized over the term of the debt. The subordinated debt was paid off by the Company in 2013. The warrants expire in December 2018. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
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. The Company is subject to the Basel III regulatory capital framework (the "Basel III Capital Rules"). Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company's ability to make capital distributions, including dividend payments and stock repurchases and to pay discretionary bonuses to executive officers. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of March 31, 2016 and December 31, 2015, the Company and the Bank meet all capital adequacy requirements to which they are subject, including the capital buffer requirement. As of March 31, 2016 and December 31, 2015, 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 March 31, 2016 and December 31, 2015, 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 March 31, 2016 Total capital to risk weighted assets: Consolidated $ 461,253 10.53 % $ 350,554 8.00 % N/A N/A Bank 455,475 10.35 352,216 8.00 $ 440,270 10.00 % Tier 1 capital to risk weighted assets: Consolidated 366,269 8.36 262,915 6.00 N/A N/A Bank 425,491 9.66 264,162 6.00 352,216 8.00 % Common equity tier 1 to risk weighted assets Consolidated 348,669 7.96 197,187 4.50 N/A N/A Bank 425,491 9.66 198,121 4.50 286,175 6.50 % Tier 1 capital to average assets: Consolidated 366,269 7.36 199,114 4.00 N/A N/A Bank 425,491 8.55 199,021 4.00 248,776 5.00 % December 31, 2015 Total capital to risk weighted assets: Consolidated $ 473,993 11.14 % $ 340,533 8.00 % N/A N/A Bank 470,495 11.06 340,259 8.00 $ 425,323 10.00 % Tier 1 capital to risk weighted assets: Consolidated 379,631 8.92 255,400 6.00 N/A N/A Bank 443,452 10.43 255,194 6.00 340,259 8.00 % Common equity tier 1 to risk weighted assets Consolidated 338,093 7.94 191,550 4.50 N/A N/A Bank 443,452 10.43 191,396 4.50 276,460 6.50 % Tier 1 capital to average assets: Consolidated 379,631 8.28 183,379 4.00 N/A N/A Bank 443,452 9.72 182,421 4.00 228,026 5.00 % |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Grand Bank During the three months ended March 31, 2016, the Company made measurement-period adjustments to previously-reported acquisition accounting estimates for the November 1, 2015 acquisition of Grand Bank. The adjustments were a result of finalizing the fair value valuation analysis for the acquired loans and core deposits, and additional termination accruals identified that related to Grand Bank accounts that existed prior to the acquisition. The adjustments resulted in decreases of $324 to goodwill, $175 to deferred tax asset, $216 to core deposit intangible, and increases of $735 to loans and $20 to other liabilities. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event Declaration of Dividends On April 27, 2016, the Company declared a quarterly cash dividend in the amount of $0.08 per share of common stock to the stockholders of record on May 9, 2016. The dividend will be paid on May 19, 2016. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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., IBG Aircraft Company III, Preston Grand, Inc, and McKinney Avenue Holdings, Inc. and its wholly owned subsidiary, McKinney Avenue SPE 1, Inc. McKinney Avenue Holdings, Inc. and its subsidiary were formed during the first quarter 2016 for the purpose of possible future asset holdings. Adriatica became inactive in 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, 2015. The consolidated statement of condition at December 31, 2015 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. |
Reclassifications | Reclassifications: Certain prior period financial statement amounts have been reclassified to conform to current period presentation. |
Redemption of Small Business Lending Fund Series A Preferred Stock | Redemption of Small Business Lending Fund Series A Preferred Stock: On January 14, 2016, the Company redeemed all outstanding shares of its Senior Non-Cumulative Perpetual Small Business Lending Fund Series A Preferred Stock held by the Treasury and related accrued dividends. |
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 Securities and Exchange Commission (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 participating nonvested common stock was not included in dilutive shares as it was anti-dilutive for the three months ended March 31, 2015. 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; change in value of underlying collateral; 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 Loan and Lease Receivable | 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. |
Loan Charge off Amounts | 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. |
Troubled Debt Restructuring | 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) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Earning Per Share | Three Months Ended March 31, 2016 2015 Basic earnings per share: Net income $ 12,452 $ 9,452 Less: Preferred stock dividends (8 ) (60 ) Net income after preferred stock dividends 12,444 9,392 Less: Undistributed earnings allocated to participating securities 211 178 Dividends paid on participating securities 28 30 Net income available to common shareholders $ 12,205 $ 9,184 Weighted-average basic shares outstanding 18,089,853 16,712,527 Basic earnings per share $ 0.67 $ 0.55 Diluted earnings per share: Net income available to common shareholders $ 12,205 $ 9,184 Total weighted-average basic shares outstanding 18,089,853 16,712,527 Add dilutive stock warrants 61,492 77,933 Add dilutive participating securities 22,255 — Total weighted-average diluted shares outstanding 18,173,600 16,790,460 Diluted earnings per share $ 0.67 $ 0.55 Anti-dilutive participating securities — 19,705 |
Statement of Cash Flows (Tables
Statement of Cash Flows (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Three Months Ended March 31, 2016 2015 Cash transactions: Interest expense paid $ 6,823 $ 5,754 Income taxes paid $ 760 $ 6,150 Noncash transactions: Accrued preferred stock dividends $ — $ 60 Excess tax benefit (tax deficiency) on restricted stock vested $ (83 ) $ 3 Transfer of repurchase agreements to deposits $ 20,688 $ — The supplemental schedule of noncash investing activities from Company acquisition activity includes the following measurement-period adjustments made during the period: Three Months Ended March 31, 2016 2015 Assets acquired: Loans $ 735 $ — Goodwill (324 ) 182 Core deposit intangibles (216 ) — Deferred tax asset (175 ) — Total assets $ 20 $ 182 Liabilities assumed: Other liabilities 20 182 Total liabilities $ 20 $ 182 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Available-for-sale Securities [Abstract] | |
Amortized Cost of Securities and Approximate Fair Values | The amortized cost of securities and their approximate fair values at March 31, 2016 and December 31, 2015, are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale March 31, 2016 U.S. treasuries $ 999 $ 2 $ — $ 1,001 Government agency securities 171,397 420 (197 ) 171,620 Obligations of state and municipal subdivisions 78,603 2,401 (189 ) 80,815 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 47,694 1,520 — 49,214 $ 298,693 $ 4,343 $ (386 ) $ 302,650 December 31, 2015 U.S. treasuries $ 999 $ 3 $ — $ 1,002 Government agency securities 135,630 237 (567 ) 135,300 Obligations of state and municipal subdivisions 83,442 2,222 (248 ) 85,416 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 50,640 1,202 (97 ) 51,745 $ 270,711 $ 3,664 $ (912 ) $ 273,463 |
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 March 31, 2016 , 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. March 31, 2016 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 18,520 $ 18,530 Due from one year to five years 168,443 168,695 Due from five to ten years 28,662 29,256 Thereafter 35,374 36,955 250,999 253,436 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 47,694 49,214 $ 298,693 $ 302,650 |
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 March 31, 2016 and December 31, 2015, 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 March 31, 2016 Government agency securities 29 $ 78,228 $ (189 ) 2 $ 1,992 $ (8 ) $ 80,220 $ (197 ) Obligations of state and municipal subdivisions 27 12,845 (106 ) 8 4,652 (83 ) 17,497 (189 ) 56 $ 91,073 $ (295 ) 10 $ 6,644 $ (91 ) $ 97,717 $ (386 ) December 31, 2015 Government agency securities 25 $ 84,798 $ (531 ) 4 $ 4,964 $ (36 ) $ 89,762 $ (567 ) Obligations of state and municipal subdivisions 32 16,202 (88 ) 19 8,662 (160 ) 24,864 (248 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 6 10,765 (97 ) — — — 10,765 (97 ) 63 $ 111,765 $ (716 ) 23 $ 13,626 $ (196 ) $ 125,391 $ (912 ) |
Loans, Net and Allowance for 25
Loans, Net and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Compositions of Loans | Loans, net at March 31, 2016 and December 31, 2015, consisted of the following: March 31, December 31, 2016 2015 Commercial $ 714,789 $ 731,818 Real estate: Commercial 2,080,550 1,949,734 Commercial construction, land and land development 418,197 419,611 Residential 619,647 607,990 Single family interim construction 218,746 187,984 Agricultural 46,616 50,178 Consumer 31,821 41,966 Other 130 124 4,130,496 3,989,405 Deferred loan fees (1,939 ) (1,553 ) Allowance for loan losses (29,984 ) (27,043 ) $ 4,098,573 $ 3,960,809 |
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 months ended March 31, 2016 and 2015 : Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended March 31, 2016 Balance at the beginning of period $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Provision for loan losses 1,592 1,046 133 220 (28 ) (3 ) 30 7 2,997 Charge-offs — (54 ) — — — (1 ) (23 ) — (78 ) Recoveries 8 2 1 — — 2 9 — 22 Balance at end of period $ 12,173 $ 14,001 $ 2,473 $ 989 $ 187 $ 162 $ 16 $ (17 ) $ 29,984 Three months ended March 31, 2015 Balance at the beginning of period $ 5,051 $ 10,110 $ 2,205 $ 669 $ 246 $ 146 $ — $ 125 $ 18,552 Provision for loan losses 1,023 526 (13 ) 65 (8 ) 29 — 48 1,670 Charge-offs — — — — — (36 ) — — (36 ) Recoveries 4 18 2 — — 17 — — 41 Balance at end of period $ 6,078 $ 10,654 $ 2,194 $ 734 $ 238 $ 156 $ — $ 173 $ 20,227 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of March 31, 2016 and December 31, 2015: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total March 31, 2016 Allowance for losses: Individually evaluated for impairment $ 3,563 $ 4 $ — $ — $ — $ — $ — $ — $ 3,567 Collectively evaluated for impairment 8,610 13,997 2,473 989 187 162 16 (17 ) 26,417 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 12,173 $ 14,001 $ 2,473 $ 989 $ 187 $ 162 $ 16 $ (17 ) $ 29,984 Loans: Individually evaluated for impairment $ 23,973 $ 2,186 $ 3,178 $ — $ — $ 76 $ — $ — $ 29,413 Collectively evaluated for impairment 686,828 2,462,162 614,438 218,746 46,616 31,725 130 — 4,060,645 Acquired with deteriorated credit quality 3,988 34,399 2,031 — — 20 — — 40,438 Ending balance $ 714,789 $ 2,498,747 $ 619,647 $ 218,746 $ 46,616 $ 31,821 $ 130 $ — $ 4,130,496 December 31, 2015 Allowance for losses: Individually evaluated for impairment $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ — $ 3,203 Collectively evaluated for impairment 7,488 12,891 2,339 769 215 162 — (24 ) 23,840 Loans acquired with deteriorated credit quality — — — — — — — — — Ending balance $ 10,573 $ 13,007 $ 2,339 $ 769 $ 215 $ 164 $ — $ (24 ) $ 27,043 Loans: Individually evaluated for impairment $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ — $ 15,470 Collectively evaluated for impairment 720,732 2,321,209 602,206 187,984 50,008 41,835 124 — 3,924,098 Acquired with deteriorated credit quality 3,704 43,465 2,648 — — 20 — — 49,837 Ending balance $ 731,818 $ 2,369,345 $ 607,990 $ 187,984 $ 50,178 $ 41,966 $ 124 $ — $ 3,989,405 |
Summary of Nonperforming Loans by Loan Class | Nonperforming loans by loan class at March 31, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total March 31, 2016 Nonaccrual loans $ 23,961 $ 60 $ 558 $ — $ — $ 76 $ — $ 24,655 Loans past due 90 days and still accruing — — 472 — — 3 — 475 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 12 2,126 2,611 — — — — 4,749 $ 23,973 $ 2,186 $ 3,641 $ — $ — $ 79 $ — $ 29,879 December 31, 2015 Nonaccrual loans $ 7,366 $ 591 $ 552 $ — $ 170 $ 111 $ — $ 8,790 Loans past due 90 days and still accruing — — — — — — — — Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 16 3,480 2,574 — — — — 6,070 $ 7,382 $ 4,071 $ 3,126 $ — $ 170 $ 111 $ — $ 14,860 |
Impaired Loans by Loan Class | Impaired loans by loan class at March 31, 2016 and December 31, 2015, are summarized as follows: Commercial Commercial Real Estate, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total March 31, 2016 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,799 $ 78 $ — $ — $ — $ — $ — $ 6,877 Impaired loans with no allowance for loan losses 17,174 2,108 3,178 — — 76 — 22,536 Total $ 23,973 $ 2,186 $ 3,178 $ — $ — $ 76 $ — $ 29,413 Unpaid principal balance of impaired loans $ 24,109 $ 2,227 $ 3,195 $ — $ — $ 99 $ — $ 29,630 Allowance for loan losses on impaired loans $ 3,563 $ 4 $ — $ — $ — $ — $ — $ 3,567 December 31, 2015 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 7,221 $ 1,930 $ — $ — $ — $ 5 $ — $ 9,156 Impaired loans with no allowance for loan losses 161 2,741 3,136 — 170 106 — 6,314 Total $ 7,382 $ 4,671 $ 3,136 $ — $ 170 $ 111 $ — $ 15,470 Unpaid principal balance of impaired loans $ 7,520 $ 4,936 $ 3,204 $ — $ 172 $ 133 $ — $ 15,965 Allowance for loan losses on impaired loans $ 3,085 $ 116 $ — $ — $ — $ 2 $ — $ 3,203 For the three months ended March 31, 2016 Average recorded investment in impaired loans $ 15,677 $ 3,429 $ 3,157 $ — $ 85 $ 94 $ — $ 22,442 Interest income recognized on impaired loans $ 366 $ 36 $ 40 $ — $ — $ — $ — $ 442 For the three months ended March 31, 2015 Average recorded investment in impaired loans $ 3,689 $ 6,627 $ 3,302 $ — $ — $ 76 $ — $ 13,694 Interest income recognized on impaired loans $ 21 $ 93 $ 29 $ — $ — $ — $ — $ 143 |
Summary of Troubled Debt Restructurings | Following is a summary of loans modified under troubled debt restructurings during the three months ended March 31, 2016 and 2015 : . 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 March 31, 2016 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Troubled debt restructurings during the three months ended March 31, 2015 Number of contracts — — — — — — — — Pre-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — Post-restructuring outstanding recorded investment $ — $ — $ — $ — $ — $ — $ — $ — |
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 March 31, 2016 and December 31, 2015: Loans 30-89 Days Past Due Loans 90 or More Past Due Total Past Due Loans Current Loans Total Loans March 31, 2016 Commercial $ 21,573 $ 6,770 $ 28,343 $ 686,446 $ 714,789 Commercial real estate, land and land development 1,520 — 1,520 2,497,227 2,498,747 Residential real estate 1,259 708 1,967 617,680 619,647 Single-family interim construction 967 — 967 217,779 218,746 Agricultural 43 — 43 46,573 46,616 Consumer 125 3 128 31,693 31,821 Other — — — 130 130 $ 25,487 $ 7,481 $ 32,968 $ 4,097,528 $ 4,130,496 December 31, 2015 Commercial $ 2,740 $ 7,220 $ 9,960 $ 721,858 $ 731,818 Commercial real estate, land and land development 2,059 — 2,059 2,367,286 2,369,345 Residential real estate 1,456 330 1,786 606,204 607,990 Single-family interim construction 503 — 503 187,481 187,984 Agricultural 89 170 259 49,919 50,178 Consumer 290 26 316 41,650 41,966 Other — — — 124 124 $ 7,137 $ 7,746 $ 14,883 $ 3,974,522 $ 3,989,405 |
Summary of Loans by Credit Quality Indicator by Class | A summary of loans by credit quality indicator by class as of March 31, 2016 and December 31, 2015 , is as follows: Pass Pass/ Watch OAEM Substandard Doubtful Total March 31, 2016 Commercial $ 590,490 $ 55,912 $ 19,446 $ 48,941 $ — $ 714,789 Commercial real estate, construction, land and land development 2,482,565 11,469 3,281 1,432 — 2,498,747 Residential real estate 612,026 1,436 1,288 4,897 — 619,647 Single-family interim construction 217,779 — 967 — — 218,746 Agricultural 44,850 64 1,702 — — 46,616 Consumer 31,540 30 19 232 — 31,821 Other 130 — — — — 130 $ 3,979,380 $ 68,911 $ 26,703 $ 55,502 $ — $ 4,130,496 December 31, 2015 Commercial $ 616,149 $ 46,607 $ 44,469 $ 24,593 $ — $ 731,818 Commercial real estate, construction, land and land development 2,343,883 18,463 3,341 3,658 — 2,369,345 Residential real estate 599,937 2,150 982 4,921 — 607,990 Single-family interim construction 187,984 — — — — 187,984 Agricultural 48,185 66 1,757 170 — 50,178 Consumer 41,601 57 32 276 — 41,966 Other 124 — — — — 124 $ 3,837,863 $ 67,343 $ 50,581 $ 33,618 $ — $ 3,989,405 |
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 as of the respective acquisition date for the acquisition occurring in 2015: Acquisition Date November 1, 2015 Grand Bank Outstanding balance $ 3,548 Nonaccretable difference (593 ) Accretable yield — Carrying amount $ 2,955 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at March 31, 2016 and December 31, 2015, were as follows: March 31, 2016 December 31, 2015 Outstanding balance $ 46,514 $ 57,178 Carrying amount 40,438 49,837 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield | The changes in accretable yield during the three months ended March 31, 2016 and 2015 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. For the Three Months Ended March 31, 2016 2015 Balance at January 1, $ 2,380 $ 2,546 Additions — — Accretion (302 ) (184 ) Transfers from nonaccretable — — Balance at March 31, $ 2,078 $ 2,362 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | At March 31, 2016 and December 31, 2015 , the approximate amounts of these financial instruments were as follows: March 31, December 31, 2016 2015 Commitments to extend credit $ 858,317 $ 838,341 Standby letters of credit 9,835 10,361 $ 868,152 $ 848,702 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three months ended March 31, 2016 and 2015 was as follows: Three Months Ended March 31, 2016 2015 Income tax expense for the period $ 6,162 $ 4,536 Effective tax rate 33.1 % 32.4 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 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) March 31, 2016 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,001 $ — $ 1,001 $ — Government agency securities 171,620 — 171,620 — Obligations of state and municipal subdivisions 80,815 — 80,815 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 49,214 — 49,214 — December 31, 2015 Measured on a recurring basis: Assets: Investment securities available for sale: U.S. treasuries $ 1,002 $ — $ 1,002 $ — Government agency securities 135,300 — 135,300 — Obligations of state and municipal subdivisions 85,416 — 85,416 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 51,745 — 51,745 — |
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 March 31, 2016 and December 31, 2015, 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 March 31, 2016 Measured on a nonrecurring basis: Assets: Impaired loans $ 6,194 $ — $ — $ 6,194 $ 480 Other real estate 702 — — 702 55 December 31, 2015 Measured on a nonrecurring basis: Assets: Impaired loans $ 4,827 $ — $ — $ 4,827 $ 3,029 Other real estate 577 — — 577 35 |
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 March 31, 2016 and December 31, 2015: 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) March 31, 2016 Financial assets: Cash and cash equivalents $ 356,526 $ 356,526 $ 356,526 $ — $ — Certificates of deposit held in other banks 39,334 39,389 — 39,389 — Securities available for sale 302,650 302,650 — 302,650 — Loans held for sale 8,515 8,515 — 8,515 — Loans, net 4,098,573 4,102,030 — 4,098,720 3,310 FHLB of Dallas stock and other restricted stock 22,400 22,400 — 22,400 — Accrued interest receivable 10,472 10,472 — 10,472 — Financial liabilities: Deposits 4,171,952 4,175,251 — 4,175,251 — Accrued interest payable 1,773 1,773 — 1,773 — FHLB advances 380,805 380,237 — 380,805 — Other borrowings 63,940 64,025 — 64,025 — Junior subordinated debentures 18,147 18,140 — 18,140 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2015 Financial assets: Cash and cash equivalents $ 293,279 $ 293,279 $ 293,279 $ — $ — Certificates of deposit held in other banks 61,746 61,873 — 61,873 — Securities available for sale 273,463 273,463 — 273,463 — Loans held for sale 12,299 12,299 — 12,299 — Loans, net 3,960,809 3,966,199 — 3,960,246 5,953 FHLB of Dallas stock and other restricted stock 14,256 14,256 — 14,256 — Accrued interest receivable 10,991 10,991 — 10,991 — Financial liabilities: Deposits 4,028,279 4,031,365 — 4,031,365 — Accrued interest payable 2,792 2,792 — 2,792 — FHLB advances 288,325 295,345 — 295,345 — Repurchase agreements 12,160 12,160 — 12,160 — Other borrowings 70,798 70,935 — 70,935 — Junior subordinated debentures 18,147 18,128 — 18,128 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — |
Stock Awards and Stock Warran29
Stock Awards and Stock Warrants (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Nonvested Shares Activity | The following table summarizes the activity in nonvested shares for the three months ended March 31, 2016 and 2015 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2015 373,572 $ 40.29 Granted during the period 66,220 29.91 Vested during the period (44,220 ) 32.61 Forfeited during the period (6,334 ) 42.25 Nonvested shares, March 31, 2016 389,238 $ 39.20 Nonvested shares, December 31, 2014 373,886 $ 41.58 Granted during the period 87,124 31.41 Vested during the period (19,016 ) 32.98 Nonvested shares, March 31, 2015 441,994 $ 40.16 |
Schedule of Vesting of Restricted Stock Award | At March 31, 2016 , the future vesting schedule of the nonvested shares is as follows: First year 144,098 Second year 125,752 Third year 81,388 Fourth year 35,800 Fifth year 2,200 Total nonvested shares 389,238 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | The actual capital amounts and ratios of the Company and Bank as of March 31, 2016 and December 31, 2015, 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 March 31, 2016 Total capital to risk weighted assets: Consolidated $ 461,253 10.53 % $ 350,554 8.00 % N/A N/A Bank 455,475 10.35 352,216 8.00 $ 440,270 10.00 % Tier 1 capital to risk weighted assets: Consolidated 366,269 8.36 262,915 6.00 N/A N/A Bank 425,491 9.66 264,162 6.00 352,216 8.00 % Common equity tier 1 to risk weighted assets Consolidated 348,669 7.96 197,187 4.50 N/A N/A Bank 425,491 9.66 198,121 4.50 286,175 6.50 % Tier 1 capital to average assets: Consolidated 366,269 7.36 199,114 4.00 N/A N/A Bank 425,491 8.55 199,021 4.00 248,776 5.00 % December 31, 2015 Total capital to risk weighted assets: Consolidated $ 473,993 11.14 % $ 340,533 8.00 % N/A N/A Bank 470,495 11.06 340,259 8.00 $ 425,323 10.00 % Tier 1 capital to risk weighted assets: Consolidated 379,631 8.92 255,400 6.00 N/A N/A Bank 443,452 10.43 255,194 6.00 340,259 8.00 % Common equity tier 1 to risk weighted assets Consolidated 338,093 7.94 191,550 4.50 N/A N/A Bank 443,452 10.43 191,396 4.50 276,460 6.50 % Tier 1 capital to average assets: Consolidated 379,631 8.28 183,379 4.00 N/A N/A Bank 443,452 9.72 182,421 4.00 228,026 5.00 % |
Summary of Significant Accoun31
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2016segment | |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | ||
Net income | $ 12,452 | $ 9,452 |
Less: Preferred stock dividends | (8) | (60) |
Net income after preferred stock dividends | 12,444 | 9,392 |
Undistributed earnings allocated to participating securities | 211 | 178 |
Dividends paid on participating securities | 28 | 30 |
Net income available to common shareholders | $ 12,205 | $ 9,184 |
Weighted-average basic shares outstanding (shares) | 18,089,853 | 16,712,527 |
Basic earnings per share (usd per share) | $ 0.67 | $ 0.55 |
Add dilutive stock warrants (shares) | 61,492 | 77,933 |
Add dilutive participating securities (shares) | 22,255 | 0 |
Total weighted-average diluted shares outstanding (shares) | 18,173,600 | 16,790,460 |
Diluted earnings per share (usd per share) | $ 0.67 | $ 0.55 |
Anti-dilutive participating securities (shares) | 0 | 19,705 |
Statement of Cash Flows - Addit
Statement of Cash Flows - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash transactions: | ||
Interest expense paid | $ 6,823 | $ 5,754 |
Income taxes paid | 760 | 6,150 |
Noncash transactions: | ||
Excess tax benefit (tax deficiency) on restricted stock vested | (83) | 3 |
Transfer of repurchase agreements to deposits | 20,688 | 0 |
Series A Preferred Stock | ||
Noncash transactions: | ||
Dividends declared, not yet paid | $ 0 | $ 60 |
Statement of Cash Flows - Measu
Statement of Cash Flows - Measurement-Period Adjustments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Assets acquired | ||
Loans | $ 735 | $ 0 |
Goodwill | (324) | 182 |
Core deposit intangibles | (216) | 0 |
Deferred tax asset | (175) | 0 |
Total assets | 20 | 182 |
Liabilities assumed: | ||
Other liabilities | 20 | 182 |
Total liabilities | $ 20 | $ 182 |
Securities Available for Sale -
Securities Available for Sale - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Available-for-sale Securities [Abstract] | |||
Carrying value of securities pledged | $ 193,326,000 | $ 195,479,000 | |
Proceeds from sale of available-for-sale securities | $ 0 | $ 0 |
Securities Available for Sale-A
Securities Available for Sale-Amortized Cost of Securities and Approximate Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 298,693 | $ 270,711 |
Gross Unrealized Gains | 4,343 | 3,664 |
Gross Unrealized Losses | (386) | (912) |
Fair Value | 302,650 | 273,463 |
U.S. treasuries | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 999 | 999 |
Gross Unrealized Gains | 2 | 3 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 1,001 | 1,002 |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 171,397 | 135,630 |
Gross Unrealized Gains | 420 | 237 |
Gross Unrealized Losses | (197) | (567) |
Fair Value | 171,620 | 135,300 |
Obligations of state and municipal subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 78,603 | 83,442 |
Gross Unrealized Gains | 2,401 | 2,222 |
Gross Unrealized Losses | (189) | (248) |
Fair Value | 80,815 | 85,416 |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 47,694 | 50,640 |
Gross Unrealized Gains | 1,520 | 1,202 |
Gross Unrealized Losses | 0 | (97) |
Fair Value | $ 49,214 | $ 51,745 |
Securities Available for Sale37
Securities Available for Sale-Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due in one year or less | $ 18,520 | |
Due from one year to five years | 168,443 | |
Due from five to ten years | 28,662 | |
Thereafter | 35,374 | |
Total | 250,999 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | 47,694 | |
Amortized Cost | 298,693 | $ 270,711 |
Fair Value | ||
Due in one year or less | 18,530 | |
Due from one year to five years | 168,695 | |
Due from five to ten years | 29,256 | |
Thereafter | 36,955 | |
Total | 253,436 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | 49,214 | |
Fair Value | $ 302,650 | $ 273,463 |
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 | Mar. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 56 | 63 |
Less than 12 months: Estimated Fair Value | $ 91,073 | $ 111,765 |
Less than 12 months: Unrealized Losses | $ (295) | $ (716) |
Number of Securities, Greater than 12 Months | security | 10 | 23 |
Greater Than 12 Months: Estimated Fair Value | $ 6,644 | $ 13,626 |
Greater Than 12 Months: Unrealized Losses | (91) | (196) |
Total: Estimated Fair Value | 97,717 | 125,391 |
Total: Unrealized Losses | $ (386) | $ (912) |
Government agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 29 | 25 |
Less than 12 months: Estimated Fair Value | $ 78,228 | $ 84,798 |
Less than 12 months: Unrealized Losses | $ (189) | $ (531) |
Number of Securities, Greater than 12 Months | security | 2 | 4 |
Greater Than 12 Months: Estimated Fair Value | $ 1,992 | $ 4,964 |
Greater Than 12 Months: Unrealized Losses | (8) | (36) |
Total: Estimated Fair Value | 80,220 | 89,762 |
Total: Unrealized Losses | $ (197) | $ (567) |
Obligations of state and municipal subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 27 | 32 |
Less than 12 months: Estimated Fair Value | $ 12,845 | $ 16,202 |
Less than 12 months: Unrealized Losses | $ (106) | $ (88) |
Number of Securities, Greater than 12 Months | security | 8 | 19 |
Greater Than 12 Months: Estimated Fair Value | $ 4,652 | $ 8,662 |
Greater Than 12 Months: Unrealized Losses | (83) | (160) |
Total: Estimated Fair Value | 17,497 | 24,864 |
Total: Unrealized Losses | $ (189) | $ (248) |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of Securities, Less Than 12 Months | security | 6 | |
Less than 12 months: Estimated Fair Value | $ 10,765 | |
Less than 12 months: Unrealized Losses | $ (97) | |
Number of Securities, Greater than 12 Months | security | 0 | |
Greater Than 12 Months: Estimated Fair Value | $ 0 | |
Greater Than 12 Months: Unrealized Losses | 0 | |
Total: Estimated Fair Value | 10,765 | |
Total: Unrealized Losses | $ (97) |
Loans, Net and Allowance for 39
Loans, Net and Allowance for Loan Losses - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)component | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 4,098,573 | $ 3,960,809 |
Number of components allowance for loan losses is derived from | component | 2 | |
Recorded investment in troubled debt restructuring including nonaccrual | $ 4,845 | 6,691 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans requiring external review (greater than) | 2,400 | |
Commercial, E&P Energy Loans Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net | $ 173,200 | $ 182,500 |
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) | 1.00% |
Loans, Net and Allowance for 40
Loans, Net and Allowance for Loan Losses - Composition of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | $ 4,130,496 | $ 3,989,405 | ||
Deferred loan fees | (1,939) | (1,553) | ||
Allowance for loan losses | (29,984) | (27,043) | $ (20,227) | $ (18,552) |
Loans, net | 4,098,573 | 3,960,809 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 714,789 | 731,818 | ||
Allowance for loan losses | (12,173) | (10,573) | (6,078) | (5,051) |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 2,080,550 | 1,949,734 | ||
Commercial construction, land and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 418,197 | 419,611 | ||
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 619,647 | 607,990 | ||
Allowance for loan losses | (2,473) | (2,339) | (2,194) | (2,205) |
Single-Family Interim Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 218,746 | 187,984 | ||
Allowance for loan losses | (989) | (769) | (734) | (669) |
Agricultural | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 46,616 | 50,178 | ||
Allowance for loan losses | (187) | (215) | (238) | (246) |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 31,821 | 41,966 | ||
Allowance for loan losses | (162) | (164) | (156) | (146) |
Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, gross | 130 | 124 | ||
Allowance for loan losses | $ (16) | $ 0 | $ 0 | $ 0 |
Loans, Net and Allowance for 41
Loans, Net and Allowance for Loan Losses - Rollforward of Activity in Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | $ 27,043 | $ 18,552 |
Provision for loan losses | 2,997 | 1,670 |
Charge-offs | (78) | (36) |
Recoveries | 22 | 41 |
Balance at end of period | 29,984 | 20,227 |
Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 10,573 | 5,051 |
Provision for loan losses | 1,592 | 1,023 |
Charge-offs | 0 | 0 |
Recoveries | 8 | 4 |
Balance at end of period | 12,173 | 6,078 |
Commercial Real Estate, Land and Land Development | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 13,007 | 10,110 |
Provision for loan losses | 1,046 | 526 |
Charge-offs | (54) | 0 |
Recoveries | 2 | 18 |
Balance at end of period | 14,001 | 10,654 |
Residential Real Estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 2,339 | 2,205 |
Provision for loan losses | 133 | (13) |
Charge-offs | 0 | 0 |
Recoveries | 1 | 2 |
Balance at end of period | 2,473 | 2,194 |
Single-Family Interim Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 769 | 669 |
Provision for loan losses | 220 | 65 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 989 | 734 |
Agricultural | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 215 | 246 |
Provision for loan losses | (28) | (8) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | 187 | 238 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 164 | 146 |
Provision for loan losses | (3) | 29 |
Charge-offs | (1) | (36) |
Recoveries | 2 | 17 |
Balance at end of period | 162 | 156 |
Other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | 0 | 0 |
Provision for loan losses | 30 | 0 |
Charge-offs | (23) | 0 |
Recoveries | 9 | 0 |
Balance at end of period | 16 | 0 |
Unallocated | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at the beginning of period | (24) | 125 |
Provision for loan losses | 7 | 48 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Balance at end of period | $ (17) | $ 173 |
Loans, Net and Allowance for 42
Loans, Net and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Allowance for losses: | ||||
Individually evaluated for impairment | $ 3,567 | $ 3,203 | ||
Collectively evaluated for impairment | 26,417 | 23,840 | ||
Ending balance | 29,984 | 27,043 | $ 20,227 | $ 18,552 |
Loans: | ||||
Individually evaluated for impairment | 29,413 | 15,470 | ||
Collectively evaluated for impairment | 4,060,645 | 3,924,098 | ||
Ending balance | 4,130,496 | 3,989,405 | ||
Commercial | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 3,563 | 3,085 | ||
Collectively evaluated for impairment | 8,610 | 7,488 | ||
Ending balance | 12,173 | 10,573 | 6,078 | 5,051 |
Loans: | ||||
Individually evaluated for impairment | 23,973 | 7,382 | ||
Collectively evaluated for impairment | 686,828 | 720,732 | ||
Ending balance | 714,789 | 731,818 | ||
Commercial Real Estate, Land and Land Development | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 4 | 116 | ||
Collectively evaluated for impairment | 13,997 | 12,891 | ||
Ending balance | 14,001 | 13,007 | 10,654 | 10,110 |
Loans: | ||||
Individually evaluated for impairment | 2,186 | 4,671 | ||
Collectively evaluated for impairment | 2,462,162 | 2,321,209 | ||
Ending balance | 2,498,747 | 2,369,345 | ||
Residential Real Estate | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 2,473 | 2,339 | ||
Ending balance | 2,473 | 2,339 | 2,194 | 2,205 |
Loans: | ||||
Individually evaluated for impairment | 3,178 | 3,136 | ||
Collectively evaluated for impairment | 614,438 | 602,206 | ||
Ending balance | 619,647 | 607,990 | ||
Single-Family Interim Construction | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 989 | 769 | ||
Ending balance | 989 | 769 | 734 | 669 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 218,746 | 187,984 | ||
Ending balance | 218,746 | 187,984 | ||
Agricultural | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 187 | 215 | ||
Ending balance | 187 | 215 | 238 | 246 |
Loans: | ||||
Individually evaluated for impairment | 0 | 170 | ||
Collectively evaluated for impairment | 46,616 | 50,008 | ||
Ending balance | 46,616 | 50,178 | ||
Consumer | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 2 | ||
Collectively evaluated for impairment | 162 | 162 | ||
Ending balance | 162 | 164 | 156 | 146 |
Loans: | ||||
Individually evaluated for impairment | 76 | 111 | ||
Collectively evaluated for impairment | 31,725 | 41,835 | ||
Ending balance | 31,821 | 41,966 | ||
Other | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 16 | 0 | ||
Ending balance | 16 | 0 | 0 | 0 |
Loans: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 130 | 124 | ||
Ending balance | 130 | 124 | ||
Unallocated | ||||
Allowance for losses: | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | (17) | (24) | ||
Ending balance | (17) | (24) | $ 173 | $ 125 |
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 | 40,438 | 49,837 | ||
Receivables Acquired with Deteriorated Credit Quality | Commercial | ||||
Allowance for losses: | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||
Loans: | ||||
Acquired with deteriorated credit quality | 3,988 | 3,704 | ||
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 | 34,399 | 43,465 | ||
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 | 2,031 | 2,648 | ||
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 | 20 | 20 | ||
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 43
Loans, Net and Allowance for Loan Losses - Summary of Non Performing Loans by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | $ 24,655 | $ 8,790 |
Loans past due 90 days and still accruing | 475 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 4,749 | 6,070 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 29,879 | 14,860 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 23,961 | 7,366 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 12 | 16 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 23,973 | 7,382 |
Commercial Real Estate, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 60 | 591 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 2,126 | 3,480 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 2,186 | 4,071 |
Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 558 | 552 |
Loans past due 90 days and still accruing | 472 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 2,611 | 2,574 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest, Total | 3,641 | 3,126 |
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 | 170 |
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 | 170 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 76 | 111 |
Loans past due 90 days and still accruing | 3 | 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 | 79 | 111 |
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 |
Loans, Net and Allowance for 44
Loans, Net and Allowance for Loan Losses - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | $ 6,877 | $ 9,156 | |
Impaired loans with no allowance for loan losses | 22,536 | 6,314 | |
Total | 29,413 | 15,470 | |
Unpaid principal balance of impaired loans | 29,630 | 15,965 | |
Allowance for loan losses on impaired loans | 3,567 | 3,203 | |
Average recorded investment in impaired loans | 22,442 | $ 13,694 | |
Interest income recognized on impaired loans | 442 | 143 | |
Commercial | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 6,799 | 7,221 | |
Impaired loans with no allowance for loan losses | 17,174 | 161 | |
Total | 23,973 | 7,382 | |
Unpaid principal balance of impaired loans | 24,109 | 7,520 | |
Allowance for loan losses on impaired loans | 3,563 | 3,085 | |
Average recorded investment in impaired loans | 15,677 | 3,689 | |
Interest income recognized on impaired loans | 366 | 21 | |
Commercial Real Estate, Land and Land Development | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 78 | 1,930 | |
Impaired loans with no allowance for loan losses | 2,108 | 2,741 | |
Total | 2,186 | 4,671 | |
Unpaid principal balance of impaired loans | 2,227 | 4,936 | |
Allowance for loan losses on impaired loans | 4 | 116 | |
Average recorded investment in impaired loans | 3,429 | 6,627 | |
Interest income recognized on impaired loans | 36 | 93 | |
Residential Real Estate | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 0 | 0 | |
Impaired loans with no allowance for loan losses | 3,178 | 3,136 | |
Total | 3,178 | 3,136 | |
Unpaid principal balance of impaired loans | 3,195 | 3,204 | |
Allowance for loan losses on impaired loans | 0 | 0 | |
Average recorded investment in impaired loans | 3,157 | 3,302 | |
Interest income recognized on impaired loans | 40 | 29 | |
Single-Family Interim Construction | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 0 | 0 | |
Impaired loans with no allowance for loan losses | 0 | 0 | |
Total | 0 | 0 | |
Unpaid principal balance of impaired loans | 0 | 0 | |
Allowance for loan losses on impaired loans | 0 | 0 | |
Average recorded investment in impaired loans | 0 | 0 | |
Interest income recognized on impaired loans | 0 | 0 | |
Agricultural | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 0 | 0 | |
Impaired loans with no allowance for loan losses | 0 | 170 | |
Total | 0 | 170 | |
Unpaid principal balance of impaired loans | 0 | 172 | |
Allowance for loan losses on impaired loans | 0 | 0 | |
Average recorded investment in impaired loans | 85 | 0 | |
Interest income recognized on impaired loans | 0 | 0 | |
Consumer | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 0 | 5 | |
Impaired loans with no allowance for loan losses | 76 | 106 | |
Total | 76 | 111 | |
Unpaid principal balance of impaired loans | 99 | 133 | |
Allowance for loan losses on impaired loans | 0 | 2 | |
Average recorded investment in impaired loans | 94 | 76 | |
Interest income recognized on impaired loans | 0 | 0 | |
Other | |||
Recorded investment in impaired loans: | |||
Impaired loans with an allowance for loan losses | 0 | 0 | |
Impaired loans with no allowance for loan losses | 0 | 0 | |
Total | 0 | 0 | |
Unpaid principal balance of impaired loans | 0 | 0 | |
Allowance for loan losses on impaired loans | 0 | $ 0 | |
Average recorded investment in impaired loans | 0 | 0 | |
Interest income recognized on impaired loans | $ 0 | $ 0 |
Loans, Net and Allowance for 45
Loans, Net and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)contract | Mar. 31, 2015USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Residential Real Estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Single-Family Interim Construction | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Agricultural | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Other Loan | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 0 |
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 |
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Loans, Net and Allowance for 46
Loans, Net and Allowance for Loan Losses - Aging of Past Due Loans by Loan Class (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | $ 32,968 | $ 14,883 |
Current Loans | 4,097,528 | 3,974,522 |
Total Loans | 4,130,496 | 3,989,405 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 28,343 | 9,960 |
Current Loans | 686,446 | 721,858 |
Total Loans | 714,789 | 731,818 |
Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,520 | 2,059 |
Current Loans | 2,497,227 | 2,367,286 |
Total Loans | 2,498,747 | 2,369,345 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,967 | 1,786 |
Current Loans | 617,680 | 606,204 |
Total Loans | 619,647 | 607,990 |
Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 967 | 503 |
Current Loans | 217,779 | 187,481 |
Total Loans | 218,746 | 187,984 |
Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 43 | 259 |
Current Loans | 46,573 | 49,919 |
Total Loans | 46,616 | 50,178 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 128 | 316 |
Current Loans | 31,693 | 41,650 |
Total Loans | 31,821 | 41,966 |
Other Loan | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 0 | 0 |
Current Loans | 130 | 124 |
Total Loans | 130 | 124 |
Loans 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 25,487 | 7,137 |
Loans 30-89 Days Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 21,573 | 2,740 |
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 | 1,520 | 2,059 |
Loans 30-89 Days Past Due | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 1,259 | 1,456 |
Loans 30-89 Days Past Due | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 967 | 503 |
Loans 30-89 Days Past Due | Agricultural | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 43 | 89 |
Loans 30-89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 125 | 290 |
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 | 7,481 | 7,746 |
Loans 90 or More Past Due | Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 6,770 | 7,220 |
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 | 0 |
Loans 90 or More Past Due | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 708 | 330 |
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 | 170 |
Loans 90 or More Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 3 | 26 |
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 47
Loans, Net and Allowance for Loan Losses - Summary of Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | $ 4,130,496 | $ 3,989,405 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 714,789 | 731,818 |
Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 2,498,747 | 2,369,345 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 619,647 | 607,990 |
Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 218,746 | 187,984 |
Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 46,616 | 50,178 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 31,821 | 41,966 |
Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 130 | 124 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 3,979,380 | 3,837,863 |
Pass | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 590,490 | 616,149 |
Pass | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 2,482,565 | 2,343,883 |
Pass | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 612,026 | 599,937 |
Pass | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 217,779 | 187,984 |
Pass | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 44,850 | 48,185 |
Pass | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 31,540 | 41,601 |
Pass | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 130 | 124 |
Pass/ Watch | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 68,911 | 67,343 |
Pass/ Watch | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 55,912 | 46,607 |
Pass/ Watch | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 11,469 | 18,463 |
Pass/ Watch | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,436 | 2,150 |
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 | 64 | 66 |
Pass/ Watch | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 30 | 57 |
Pass/ Watch | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
OAEM | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 26,703 | 50,581 |
OAEM | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 19,446 | 44,469 |
OAEM | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 3,281 | 3,341 |
OAEM | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,288 | 982 |
OAEM | Single-Family Interim Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 967 | 0 |
OAEM | Agricultural | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,702 | 1,757 |
OAEM | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 19 | 32 |
OAEM | Other Loan | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 55,502 | 33,618 |
Substandard | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 48,941 | 24,593 |
Substandard | Commercial Real Estate, Land and Land Development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 1,432 | 3,658 |
Substandard | Residential Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 4,897 | 4,921 |
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 | 170 |
Substandard | Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans, gross | 232 | 276 |
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 48
Loans, Net and Allowance for Loan Losses - Outstanding Balance and Related Carrying Amount of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2015 |
Business Acquisition [Line Items] | |||
Outstanding balance | $ 46,514 | $ 57,178 | |
Carrying amount | $ 40,438 | $ 49,837 | |
Grand Bank | |||
Business Acquisition [Line Items] | |||
Outstanding balance | $ 3,548 | ||
Nonaccretable difference | (593) | ||
Accretable yield | 0 | ||
Carrying amount | $ 2,955 |
Loans, Net and Allowance for 49
Loans, Net and Allowance for Loan Losses - Purchased Credit Impaired Loans in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Outstanding balance | $ 46,514 | $ 57,178 |
Carrying amount | $ 40,438 | $ 49,837 |
Loans, Net and Allowance for 50
Loans, Net and Allowance for Loan Losses - Accretable Yield Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at January 1, | $ 2,380 | $ 2,546 |
Additions | 0 | 0 |
Accretion | (302) | (184) |
Transfers from nonaccretable | 0 | 0 |
Balance at March 31, | $ 2,078 | $ 2,362 |
Commitments and Contingencies51
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 868,152 | $ 848,702 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 858,317 | 838,341 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 9,835 | $ 10,361 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Rent expense | $ 675 | $ 483 |
Repurchase Agreements and Oth53
Repurchase Agreements and Other Borrowings (Details) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2016USD ($)debenture_issuance | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | |||
Repurchase agreements | $ 0 | $ 12,160 | |
Other borrowings and due to related parties | 63,940 | $ 70,798 | |
Other borrowings, deferred originations costs | $ 1,060 | ||
Unsecured Subordinated Debenture Due July Fifteenth Twenty Eighteen and Due October Fifteenth Twenty Eighteen | |||
Line of Credit Facility [Line Items] | |||
Other borrowings, number of subordinated debenture issuances redeemed | debenture_issuance | 2 | ||
Early repayment of subordinated debt | $ 5,798 |
Income Taxes - Tax Expense (Det
Income Taxes - Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense for the period | $ 6,162 | $ 4,536 |
Effective tax rates (percent) | 33.10% | 32.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Federal income tax at statutory rate (percent) | 35.00% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
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 | $ 1,001 | $ 1,002 |
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 | 171,620 | 135,300 |
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 | 80,815 | 85,416 |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 49,214 | 51,745 |
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) | Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
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 | 1,001 | 1,002 |
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 | 171,620 | 135,300 |
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 | 80,815 | 85,416 |
Significant Other Observable Inputs (Level 2) | Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale measured on a recurring basis | 49,214 | 51,745 |
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) | Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
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 - Ass57
Fair Value Measurements - Assets and Liabilities at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Measured at Fair Value | $ 6,194 | $ 4,827 |
Period Ended Total Losses | 480 | 3,029 |
Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Measured at Fair Value | 702 | 577 |
Period Ended Total Losses | 55 | 35 |
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 at Fair Value | 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 at Fair Value | 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 at Fair Value | 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 at Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Measured at Fair Value | 6,194 | 4,827 |
Significant Unobservable Inputs (Level 3) | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Measured at Fair Value | $ 702 | $ 577 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Securities available for sale | $ 302,650 | $ 273,463 |
Financial liabilities: | ||
Repurchase agreements | 0 | 12,160 |
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 868,152 | 848,702 |
Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 858,317 | 838,341 |
Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 9,835 | 10,361 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 356,526 | 293,279 |
Certificates of deposit held in other banks | 0 | 0 |
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 | |
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 |
Certificates of deposit held in other banks | 39,389 | 61,873 |
Securities available for sale | 302,650 | 273,463 |
Loans held for sale | 8,515 | 12,299 |
Loans, net | 4,098,720 | 3,960,246 |
FHLB of Dallas stock and other restricted stock | 22,400 | 14,256 |
Accrued interest receivable | 10,472 | 10,991 |
Financial liabilities: | ||
Deposits | 4,175,251 | 4,031,365 |
Accrued interest payable | 1,773 | 2,792 |
FHLB advances | 380,805 | 295,345 |
Repurchase agreements | 12,160 | |
Other borrowings | 64,025 | 70,935 |
Junior subordinated debentures | 18,140 | 18,128 |
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 |
Certificates of deposit held in other banks | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 3,310 | 5,953 |
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 | |
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 | 356,526 | 293,279 |
Certificates of deposit held in other banks | 39,334 | 61,746 |
Securities available for sale | 302,650 | 273,463 |
Loans held for sale | 8,515 | 12,299 |
Loans, net | 4,098,573 | 3,960,809 |
FHLB of Dallas stock and other restricted stock | 22,400 | 14,256 |
Accrued interest receivable | 10,472 | 10,991 |
Financial liabilities: | ||
Deposits | 4,171,952 | 4,028,279 |
Accrued interest payable | 1,773 | 2,792 |
FHLB advances | 380,805 | 288,325 |
Repurchase agreements | 12,160 | |
Other borrowings | 63,940 | 70,798 |
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 | 356,526 | 293,279 |
Certificates of deposit held in other banks | 39,389 | 61,873 |
Securities available for sale | 302,650 | 273,463 |
Loans held for sale | 8,515 | 12,299 |
Loans, net | 4,102,030 | 3,966,199 |
FHLB of Dallas stock and other restricted stock | 22,400 | 14,256 |
Accrued interest receivable | 10,472 | 10,991 |
Financial liabilities: | ||
Deposits | 4,175,251 | 4,031,365 |
Accrued interest payable | 1,773 | 2,792 |
FHLB advances | 380,237 | 295,345 |
Repurchase agreements | 12,160 | |
Other borrowings | 64,025 | 70,935 |
Junior subordinated debentures | 18,140 | 18,128 |
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 Warran59
Stock Awards and Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested during the period (shares) | 44,220 | 19,016 | |
Compensation expense | $ 1,220 | $ 1,097 | |
Estimated future compensation expense | $ 11,385 | ||
Period for recognition | 2 years 7 months 13 days | ||
Fair value of common stock awards vested | $ 1,306 | 635 | |
AOCI income tax effect from share-based compensation, net | $ (83) | $ 3 | |
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 | ||
2012 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock vesting period | 5 years | ||
Vested during the period (shares) | 1,600 | ||
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 |
Stock Awards and Stock Warran60
Stock Awards and Stock Warrants - Nonvested Shares Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Number of Shares | ||
Nonvested shares, beginning balance (shares) | 373,572 | 373,886 |
Granted during the period (shares) | 66,220 | 87,124 |
Vested during the period (shares) | (44,220) | (19,016) |
Forfeited during the period (shares) | (6,334) | |
Nonvested shares, ending balance (shares) | 389,238 | 441,994 |
Weighted Average Grant Date Fair Value | ||
Nonvested shares, beginning balance (usd per share) | $ 40.29 | $ 41.58 |
Granted during the period (usd per share) | 29.91 | 31.41 |
Vested during the period (usd per share) | 32.61 | 32.98 |
Forfeited during the period (usd per share) | 42.25 | |
Nonvested shares, ending balance (usd per share) | $ 39.20 | $ 40.16 |
Stock Awards and Stock Warran61
Stock Awards and Stock Warrants - Future Vesting Schedule of Nonvested Shares (Details) | Mar. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 389,238 |
First year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 144,098 |
Second year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 125,752 |
Third year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 81,388 |
Fourth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 35,800 |
Fifth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares | 2,200 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | Jan. 01, 2016 |
Regulated Operations [Abstract] | |
Capital required for capital adequacy ratio, capital conservation buffer | 0.625% |
Capital required for capital adequacy ratio, capital conservation buffer, annual increase | 0.625% |
Capital required for capital adequacy ratio, capital conservation buffer, maximum | 2.50% |
Regulatory Matters-Actual Capit
Regulatory Matters-Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 461,253 | $ 473,993 |
Actual Ratio (percent) | 10.53% | 11.14% |
Minimum Required for Capital Adequacy Purposes Amount | $ 350,554 | $ 340,533 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 8.00% | 8.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 366,269 | $ 379,631 |
Actual Ratio (percent) | 8.36% | 8.92% |
Minimum Required for Capital Adequacy Purposes Amount | $ 262,915 | $ 255,400 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 6.00% | 6.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 348,669 | $ 338,093 |
Actual Ratio (percent) | 7.96% | 7.94% |
Minimum Required for Capital Adequacy Purposes Amount | $ 197,187 | $ 191,550 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.50% | 4.50% |
Tier 1 capital to average assets: | ||
Actual Amount | $ 366,269 | $ 379,631 |
Actual Ratio (percent) | 7.36% | 8.28% |
Minimum Required for Capital Adequacy Purposes Amount | $ 199,114 | $ 183,379 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
Bank | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 455,475 | $ 470,495 |
Actual Ratio (percent) | 10.35% | 11.06% |
Minimum Required for Capital Adequacy Purposes Amount | $ 352,216 | $ 340,259 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 8.00% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 440,270 | $ 425,323 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 425,491 | $ 443,452 |
Actual Ratio (percent) | 9.66% | 10.43% |
Minimum Required for Capital Adequacy Purposes Amount | $ 264,162 | $ 255,194 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 6.00% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 352,216 | $ 340,259 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 8.00% | 8.00% |
Common equity tier 1 to risk weighted assets | ||
Actual Amount | $ 425,491 | $ 443,452 |
Actual Ratio (percent) | 9.66% | 10.43% |
Minimum Required for Capital Adequacy Purposes Amount | $ 198,121 | $ 191,396 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.50% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 286,175 | $ 276,460 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 6.50% | 6.50% |
Tier 1 capital to average assets: | ||
Actual Amount | $ 425,491 | $ 443,452 |
Actual Ratio (percent) | 8.55% | 9.72% |
Minimum Required for Capital Adequacy Purposes Amount | $ 199,021 | $ 182,421 |
Minimum Required for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 248,776 | $ 228,026 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 5.00% | 5.00% |
Business Combination - Addition
Business Combination - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||
Increase (decrease) in Goodwill | $ (324) | $ 182 |
Increase (decrease) in deferred tax asset | (175) | 0 |
Increase (decrease) in core deposit intangibles | (216) | 0 |
Increase (decrease) in loans | 735 | $ 0 |
Grand Bank | ||
Business Acquisition [Line Items] | ||
Increase (decrease) in Goodwill | (324) | |
Increase (decrease) in deferred tax asset | (175) | |
Increase (decrease) in core deposit intangibles | (216) | |
Increase (decrease) in loans | 735 | |
Increase (decrease) in other liabilities | $ 20 |
Subsequent Events (Details)
Subsequent Events (Details) | Apr. 27, 2016$ / shares |
Subsequent event | |
Subsequent Event [Line Items] | |
Dividends declared (per share) | $ 0.08 |