Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Green Bancorp, Inc. | |
Trading Symbol | gnbc | |
Entity Central Index Key | 1,606,363 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Common Stock, Shares Outstanding | 37,308,313 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 25,486 | $ 26,562 |
Interest bearing deposits in financial institutions and fed funds sold | 205,765 | 114,119 |
Total cash and cash equivalents | 231,251 | 140,681 |
Available-for-sale securities, at fair value | 635,333 | 705,539 |
Held-to-maturity securities, at amortized cost (fair value of $63,993 and $13,146, respectively) | 64,530 | 13,275 |
Investment in Patriot Bancshares Capital Trusts I and II | 666 | 666 |
Federal Reserve Bank stock | 11,809 | 11,702 |
Federal Home Loan Bank of Dallas stock | 19,711 | 14,915 |
Other investments | 10,776 | 0 |
Total securities and other investments | 742,825 | 746,097 |
Loans held for sale | 4,992 | 7,156 |
Loans held for investment | 3,222,108 | 3,190,485 |
Allowance for loan losses | (35,086) | (31,220) |
Loans, net | 3,192,014 | 3,166,421 |
Premises and equipment, net | 29,178 | 24,002 |
Goodwill | 85,291 | 85,291 |
Core deposit intangibles, net of accumulated amortization | 7,881 | 8,503 |
Accrued interest receivable | 11,855 | 11,109 |
Deferred tax asset, net | 12,528 | 8,758 |
Real estate acquired by foreclosure | 802 | 802 |
Bank owned life insurance | 56,066 | 55,302 |
Other assets | 21,986 | 14,950 |
TOTAL ASSETS | 4,391,677 | 4,261,916 |
Deposits: | ||
Noninterest-bearing | 824,753 | 803,210 |
Interest-bearing transaction and savings | 1,281,255 | 1,331,601 |
Certificates and other time deposits | 1,320,042 | 1,262,332 |
Total deposits | 3,426,050 | 3,397,143 |
Securities sold under agreements to repurchase | 4,141 | 5,173 |
Other borrowed funds | 412,000 | 325,000 |
Subordinated debentures and subordinated notes | 48,019 | 47,737 |
Accrued interest payable | 3,785 | 2,841 |
Other liabilities | 18,189 | 20,227 |
Total liabilities | 3,912,184 | 3,798,121 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 90,000,000 shares authorized; 37,467,477 and 37,280,822 shares issued at June 30, 2018 and December 31, 2017, respectively; 37,289,477 and 37,102,822 shares outstanding at June 30, 2018 and December 31, 2017, respectively | 375 | 373 |
Capital surplus | 392,010 | 387,891 |
Retained earnings | 106,416 | 83,263 |
Accumulated other comprehensive income, net | (18,055) | (6,479) |
Less treasury stock, at cost, 178,000 shares at both June 30, 2018 and December 31, 2017 | (1,253) | (1,253) |
Total shareholders’ equity | 479,493 | 463,795 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 4,391,677 | $ 4,261,916 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued or outstanding | $ 0 | $ 0 |
Held-to-maturity, fair value | $ 63,993 | $ 13,146 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock issued (in shares) | 37,467,477 | 37,280,822 |
Common stock outstanding (in shares) | 37,289,477 | 37,102,822 |
Treasury stock (in shares) | 178,000 | 178,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 44,479 | $ 38,476 | $ 86,278 | $ 74,847 |
Securities | 4,734 | 3,928 | 9,292 | 6,511 |
Other investments | 341 | 197 | 641 | 385 |
Deposits in financial institutions and fed funds sold | 659 | 331 | 1,152 | 740 |
Total interest income | 50,213 | 42,932 | 97,363 | 82,483 |
INTEREST EXPENSE: | ||||
Transaction and savings deposits | 3,023 | 2,230 | 5,487 | 4,208 |
Certificates and other time deposits | 4,712 | 3,786 | 8,783 | 7,393 |
Subordinated debentures and subordinated notes | 1,109 | 1,051 | 2,188 | 2,092 |
Other borrowed funds | 1,608 | 560 | 2,902 | 842 |
Total interest expense | 10,452 | 7,627 | 19,360 | 14,535 |
NET INTEREST INCOME | 39,761 | 35,305 | 78,003 | 67,948 |
PROVISION FOR LOAN LOSSES | 1,897 | 1,510 | 11,560 | 7,655 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 37,864 | 33,795 | 66,443 | 60,293 |
NONINTEREST INCOME: | ||||
Customer service fees | 2,578 | 2,199 | 4,973 | 4,465 |
Loan fees | 996 | 1,106 | 1,829 | 1,940 |
Gain on sale of available-for-sale securities, net | 66 | 294 | 66 | 294 |
Gain on held-for-sale loans, net | 0 | 222 | 0 | 84 |
Gain on sale of guaranteed portion of loans, net | 1,112 | 878 | 2,053 | 2,805 |
Other | 733 | 1,000 | 1,722 | 1,606 |
Total noninterest income | 5,485 | 5,699 | 10,643 | 11,194 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 13,640 | 12,653 | 27,241 | 25,059 |
Occupancy | 2,263 | 2,048 | 4,340 | 4,045 |
Professional and regulatory fees | 2,172 | 1,899 | 4,433 | 4,296 |
Data processing | 1,029 | 995 | 2,001 | 1,903 |
Software license and maintenance | 703 | 438 | 1,419 | 927 |
Marketing | 257 | 163 | 433 | 362 |
Loan related | 467 | 301 | 514 | 901 |
Real estate acquired by foreclosure, net | 4 | 223 | 16 | 515 |
Other | 2,110 | 891 | 4,301 | 2,442 |
Total noninterest expense | 22,645 | 19,611 | 44,698 | 40,450 |
INCOME BEFORE INCOME TAXES | 20,704 | 19,883 | 32,388 | 31,037 |
PROVISION FOR INCOME TAXES | 4,283 | 6,985 | 6,605 | 10,927 |
NET INCOME | $ 16,421 | $ 12,898 | $ 25,783 | $ 20,110 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.44 | $ 0.35 | $ 0.69 | $ 0.54 |
Diluted (in dollars per share) | $ 0.44 | $ 0.35 | $ 0.69 | $ 0.54 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
NET INCOME | $ 16,421 | $ 12,898 | $ 25,783 | $ 20,110 |
Securities available-for-sale: | ||||
Change in net unrealized gains (losses) on securities available-for-sale | (4,967) | 1,562 | (12,793) | (14) |
Reclassification of net gains (losses) included in net income | 66 | 0 | 66 | 0 |
Reclassification of unrealized losses on securities transferred to held-to-maturity | 0 | 0 | 2,188 | 0 |
Tax effect | (1,029) | 547 | (2,213) | (5) |
Other comprehensive loss, net of tax, for securities available-for-sale | (3,872) | 1,015 | (8,326) | (9) |
Securities held-to-maturity: | ||||
Reclassification of unrealized losses on securities transferred from available-for-sale | 0 | 0 | (2,188) | 0 |
Amortization of unrealized losses on securities transferred from available-for-sale | 79 | 0 | 98 | 0 |
Other comprehensive loss, net of tax, for securities held-to-maturity | 79 | 0 | (2,090) | 0 |
OTHER COMPREHENSIVE LOSS, NET OF TAX | (3,793) | 1,015 | (10,416) | (9) |
COMPREHENSIVE INCOME | $ 12,628 | $ 13,913 | $ 15,367 | $ 20,101 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |
Equity, beginning of period (in shares) at Dec. 31, 2016 | 36,988 | ||||||
Equity, beginning of period at Dec. 31, 2016 | $ 430,482 | $ 372 | $ 382,961 | $ 49,127 | $ (725) | $ (1,253) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 20,110 | 20,110 | |||||
Other comprehensive income (loss) | (9) | (9) | |||||
Purchase of treasury stock (in shares) | 0 | ||||||
Purchase of treasury stock | 0 | 0 | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 225 | ||||||
Issuance of common stock in connection with exercise of stock options | 456 | 456 | |||||
Stock-based compensation expense | 702 | 702 | |||||
Equity, end of period (in shares) at Jun. 30, 2017 | 37,213 | ||||||
Equity, end of period at Jun. 30, 2017 | 451,741 | $ 372 | 384,119 | 69,237 | (734) | (1,253) | |
Equity, beginning of period (in shares) at Dec. 31, 2017 | 37,103 | ||||||
Equity, beginning of period at Dec. 31, 2017 | 463,795 | $ 373 | 387,891 | 83,263 | (6,479) | (1,253) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Reclassification upon adoption of new accounting standards | Accounting Standards Update 2018-02 | [1] | 0 | 1,396 | (1,396) | |||
Reclassification upon adoption of new accounting standards | Accounting Standards Update 2016-01 | [1] | (63) | (299) | 236 | |||
Net income | 25,783 | ||||||
Other comprehensive income (loss) | (10,416) | (10,416) | |||||
Issuance of common stock in connection with exercise of stock options (in shares) | 186 | ||||||
Issuance of common stock in connection with exercise of stock options | 1,761 | $ 2 | 1,759 | ||||
Stock-based compensation expense | 2,360 | 2,360 | |||||
Cash dividend declared, $0.10 per share | (3,727) | (3,727) | |||||
Equity, end of period (in shares) at Jun. 30, 2018 | 37,289 | ||||||
Equity, end of period at Jun. 30, 2018 | $ 479,493 | $ 375 | $ 392,010 | $ 106,416 | $ (18,055) | $ (1,253) | |
[1] | Adoption of Accounting Standards Updates 2018-02 and 2016-01. See Notes 3 and 14 to interim condensed consolidated financial statements for additional information. |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) | 6 Months Ended |
Jun. 30, 2018$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends declared (in dollars per share) | $ 0.10 |
CONDENSED CONSOLIDATED STATEME8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 25,783 | $ 20,110 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Amortization and accretion of premiums and discounts on securities, net | 1,253 | 542 |
Accretion of loan discounts, net | (2,917) | (2,470) |
Amortization of deposit premiums | (415) | (567) |
Amortization of core deposit intangibles | 622 | 760 |
Amortization and accretion of borrowing and debt valuation allowance, net | 210 | 210 |
Amortization of issuance costs of subordinated notes | 72 | 72 |
Provision for loan losses | 11,560 | 7,655 |
Depreciation | 955 | 1,048 |
Net gain on sale of available-for-sale securities | (66) | (294) |
Net loss on sale of real estate acquired by foreclosure | 0 | 147 |
Net gain on loans held-for-sale | 0 | (84) |
Net gain on sale of guaranteed portion of loans | (2,053) | (2,805) |
Net market value loss on equity investments | 262 | 0 |
Originations of loans held-for-sale | (22,595) | 0 |
Proceeds from sales of and principal collected on loans held-for-sale | 26,812 | 13,903 |
Writedown of real estate acquired by foreclosure | 0 | 185 |
Stock-based compensation expense | 2,471 | 1,059 |
Deferred tax benefit | (3,770) | (1,201) |
Net change in accrued interest receivable and other assets, net | (6,165) | 15,222 |
Net change in accrued interest payable and other liabilities, net | (1,205) | (3,473) |
Net cash provided by operating activities | 30,814 | 50,019 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from the maturities or calls and paydowns of available-for-sale securities | 36,322 | 37,329 |
Proceeds from the sale of available-for-sale securities | 24,424 | 279,168 |
Purchases of available-for-sale securities | (65,686) | (729,200) |
Proceeds from the maturities or calls and paydowns of held-to-maturity securities | 2,433 | 3,815 |
Purchases of held-to-maturity securities | (3,627) | 0 |
Proceeds from sales of guaranteed portion of loans | 0 | 33,606 |
Proceeds from sales of real estate acquired by foreclosure | 0 | 3,967 |
Purchases of Federal Home Loan Bank of Dallas stock, net of redemptions | (4,796) | (7,329) |
Purchases of Federal Reserve Bank stock | (107) | (24) |
Net increase in loans held for investment | (42,363) | (68,624) |
Investment in construction of premises and purchases of other fixed assets | (168) | (212) |
Net cash used in investing activities | (53,568) | (447,504) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in deposit accounts | 29,322 | (13,711) |
Net (decrease) increase in securities sold under agreements to repurchase | (1,032) | 1,728 |
Net proceeds from other short-term borrowed funds | 87,000 | 155,000 |
Proceeds from issuance of common stock due to exercise of stock options | 1,761 | 456 |
Payments of cash dividends | (3,727) | 0 |
Net cash provided by financing activities | 113,324 | 143,473 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 90,570 | (254,012) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 140,681 | 389,007 |
End of period | 231,251 | 134,995 |
NONCASH ACTIVITIES: | ||
Noncash investing and financing activities - acquisition of real estate through foreclosure of collateral | 5,963 | 5,270 |
Transfer of loans to held-for-sale | 0 | 7,860 |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | 18,548 | 15,108 |
Income taxes paid | $ 8,000 | $ 7,300 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The interim condensed consolidated financial statements include the accounts of Green Bancorp, Inc. (“Green Bancorp”), together with Green Bank, N.A., its subsidiary bank, (the “Company”). All intercompany transactions and balances have been eliminated. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period. Organization —Green Bancorp is a Texas corporation that was incorporated on October 20, 2004. In 2006 Green Bancorp entered into an agreement and plan of merger with Redstone Bank, National Association (“Redstone Bank”), a national banking association located in Houston, Texas, for the purpose of acquiring all of the issued and outstanding stock of Redstone Bank. The acquisition was completed on December 31, 2006, and Green Bancorp became a bank holding company registered under the Bank Holding Company Act of 1956, as amended. Green Bank, N.A. (the “Bank”) is a national banking association, which was chartered under the laws of the United States of America as a national bank on February 17, 1999, as Redstone Bank. On September 14, 2007, the name was changed to Green Bank, N.A. The Bank provides commercial and consumer banking services in the greater Houston and Dallas metropolitan areas, and Austin, Louisville and Honey Grove. Merger Agreement —On July 23, 2018, the Company, Veritex, the parent holding company of Veritex Community Bank (“Veritex Bank”), and MustMS, Inc. (“Merger Sub”), a wholly owned subsidiary of Veritex, entered into an Agreement and Plan of Reorganization (the “Merger Agreement”), pursuant to which, subject to the terms and conditions of the Merger Agreement, among other things, (i) Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation in the Merger and a wholly owned subsidiary of Veritex, (ii) immediately thereafter, the Company (as the surviving corporation in the Merger) will merge with and into Veritex (together with the Merger, the “Holdco Mergers”), with Veritex being the surviving corporation and (iii) immediately thereafter, Green Bank will merge with and into Veritex Bank, with Veritex Bank continuing as the surviving bank (together with the Holdco Mergers, the “Merger Transactions”). Upon the consummation of the Merger, each share of Company common stock will be converted into the right to receive 0.79 shares of common stock (the “Exchange Ratio”), par value $0.01 per share, of Veritex (“Veritex Common Stock”). The Merger Agreement contains customary representations and warranties and covenants by the Company and Veritex, including, among others, covenants relating to (1) the conduct of each party’s business during the period prior to the consummation of the Merger, (2) each party’s obligations to facilitate its shareholders’ consideration of, and voting upon, the Merger Agreement and the Merger, in the case of the Company, and the issuance of shares of Veritex Common Stock in connection with the Merger (the “Share Issuance”), in the case of Veritex, (3) the recommendation by the parties’ respective boards of directors in favor of approval of the Merger Agreement and the Merger Transactions, in the case of the Company, and the Share Issuance, in the case of Veritex, and (4) the Company’s non-solicitation obligations relating to alternative business combination transactions. Furthermore, the Merger Agreement provides that, following the consummation of the Merger, the Veritex board will consist of nine members, six of whom are current members of the Veritex board and three of whom are current members of the Company board. The transaction is subject to customary closing conditions, including, among others, (1) approval of the Merger by the shareholders of the Company and the approval of the Share Issuance by the shareholders of Veritex, (2) receipt of required regulatory approvals, (3) the absence of any law or order prohibiting the consummation of the transactions contemplated by the Merger Agreement (including the Merger Transactions), (4) the effectiveness of the registration statement for the Veritex Common Stock to be issued in the Merger, (5) the approval of the listing on the Nasdaq Global Market of the Veritex Common Stock to be issued in the Merger and (6) the receipt of regulatory approvals without the imposition of a condition that would reasonably be expected to be materially financially burdensome to the business, operations, financial condition or results of operations of the surviving corporation. Each party’s obligation to consummate the Merger Transactions is also subject to certain additional customary conditions, including (1) subject to certain exceptions, the accuracy of the representations and warranties of the other party, (2) performance in all material respects by the other party of its obligations under the Merger Agreement and (3) receipt by such party of an opinion from its counsel to the effect that the Holdco Mergers, taken together, will qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended. The Merger Agreement provides certain termination rights for both the Company and Veritex and further provides that a termination fee of $40,000,000 will be payable by either the Company or Veritex, as applicable, upon termination of the Merger Agreement under certain circumstances. Use of Estimates —The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. The calculation of the allowance for loan losses, the valuation of goodwill and available for sale securities, acquired assets and liabilities and the calculation of stock based compensation are estimates particularly susceptible to significant change in the near term. Actual results could differ from those estimates. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per common share is computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. In the event of a net loss, the outstanding stock options are excluded from the diluted earnings per common share calculation due to their anti-dilutive effect and the diluted net loss per common share would equal the basic net loss per common share. The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share amounts) Net income 16,421 12,898 25,783 20,110 Basic: Weighted average shares outstanding 37,274 $ 0.44 37,023 $ 0.35 37,219 $ 0.69 37,007 $ 0.54 Diluted: Add incremental shares for: Effect of dilutive securities - options 372 241 394 227 Total 37,646 $ 0.44 37,264 $ 0.35 37,613 $ 0.69 37,234 $ 0.54 On April 30, 2015, the Company announced the Board of Directors approved a stock repurchase program under which it authorized the Company to repurchase, in the aggregate, up to $15.0 million of the Company’s outstanding common stock. The repurchase program remains in place, but may be limited or terminated at any time without prior notice. Under the authorized stock repurchase agreement, the Company could repurchase shares in open-market purchases or through privately negotiated transactions as permitted under Rule 10b-18 promulgated under the Exchange Act. As of June 30, 2018 , the Company had repurchased an aggregate of $1.3 million of the Company’s outstanding common stock under this program at an average price of $7.04 per share. |
RECENT ACCOUNTING STANDARDS
RECENT ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS Accounting Standards Updates (“ASU”) FASB ASU 2018-03 - "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)" The amendments in this ASU provide clarification on certain aspects related to the guidance issued in ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The areas for correction or improvement include (1) equity securities without a readily determinable fair value - discontinuation; (2) equity securities without a readily determinable fair value - adjustments; (3) forward contracts and purchased options; (4) presentation requirements for certain fair value option liabilities; (5) fair value option liabilities denominated in a foreign currency; and (6) transition guidance for equity securities without a readily determinable fair value.This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption is permitted. The adoption of this guidance is not expected to be material to the consolidated financial statements. FASB ASU No. 2018-02 - “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments of ASU 2018-02 allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017. The amendments also require certain disclosures about stranded tax effects. This update will be effective for all annual and interim periods beginning January 1, 2019, with early adoption permitted, and the guidance should be applied either in the period of adoption or retrospectively to each period impacted by the change in the U.S. federal corporate income tax rate in the Tax Cuts and Job Acts is recognized. The Company early adopted the new guidance in the first quarter of 2018, which resulted in a cumulative effect adjustment to the consolidated balance sheet as of January 1, 2018 to reclass approximately $1.4 million of tax expense from accumulated other comprehensive loss to retained earnings. This reclassification is presented in the condensed consolidated statement of changes in shareholders equity for the period ended June 30, 2018 . FASB ASU No. 2017-12 — “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” Issued in August 2017, the ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The amendments objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and to simplify the application of hedge accounting by preparers. For public entities, ASU 2017-12 is effective for interim and annual periods beginning after December 15, 2018; however, early adoption is permitted. The Company adopted the ASU in the third quarter of 2017 and reclassified $15.9 million of securities from held-to-maturity to available-for-sale classification pursuant to the transition election. The amount of net unrealized loss at the date of transfer was recorded in accumulated other comprehensive income. The early adoption did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. FASB ASU No. 2017-09 — “Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting.” Issued in May 2017, ASU 2017-09 clarifies when changes to terms or conditions of a share-based payment award must be accounted for as a modification. Under the new guidance, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as either an equity or liability instrument. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The guidance requires companies to apply the requirements prospectively to awards modified on or after the adoption date. ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2017-08 — “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Issued in March 2017, ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the potential impact of ASU 2017-08 on the Company’s consolidated financial statements. FASB ASU No. 2017-04 — “Intangibles—Goodwill and Other (Topic 350).” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test, which required computing the implied fair value of goodwill. Under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s consolidated financial statements. FASB ASU No. 2017-01 — “Business Combinations (Topic 805).” ASU 2017-01 is intended to clarify or correct unintended applications of ASU 2014-09 “Revenue from Contract with Customers (Topic 606).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Additionally, the amendments in this update provide a more robust framework to assist entities in evaluating whether a set of assets and activities constitutes a business. Lastly, the amendments in this update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. ASU 2017-01 became effective for the Company on January 1, 2018 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-18 — “Statement of Cash Flows (Topic 230) – Restricted Cash.” ASU 2016-18 requires the Statement of Cash Flows to explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, restricted cash or cash equivalents should be included with cash and cash equivalents when recording the beginning-of-period and end-of-period total amounts on the Statement of Cash Flows. ASU 2016-18 became effective for the Company on January 1, 2018 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-15 — "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 became effective for the Company on January 1, 2018, and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-13 — "Financial Instruments - Credit Losses (Topic 326)" ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 will be effective for the Company on January 1, 2020. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the potential impact of ASU 2016-13 on the Company’s consolidated financial statements. FASB ASU No. 2016-09 — “Compensation - Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. This ASU covers accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 was effective for the Company beginning January 1, 2017 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-02 — “ Leases (Topic 842).” In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 to supersede nearly all existing lease guidance under GAAP. The guidance would require a lessee to record a right-to-use asset and liability representing the obligation to make lease payments for long-term leases. ASU 2016-02 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and must be adopted using a modified retrospective approach. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. FASB ASU No. 2016-01 — “ Financial Instruments─Overall (Subtopic 825-10)– Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 (i) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (iv) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (v) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (vi) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this update affect all entities that hold financial assets or owe financial liabilities. ASU 2016-01 became effective for the Company beginning January 1, 2018, and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2015-17 — “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” In November 2015, the FASB issued ASU 2015-17, as part of its simplification initiative. The ASU requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as noncurrent in a classified balance sheet. It thus simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or noncurrent in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. ASU 2015-17 was effective for the Company beginning January 1, 2017 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2014-09 — “ Revenue from Contracts with Customers (Topic 606)” . ASU 2014-09 is a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance under GAAP and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The Company’s primary sources of revenue are comprised of net interest income on financial assets and liabilities, which are not within the scope of ASU 2014-09. The Company adopted ASU 2014-09, effective January 1, 2018, and had no material effect on how we recognize revenue or to our consolidated financial statements and disclosures. See below for additional information related to revenue generated from contracts with customers. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: • Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or-transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Gains/losses on the sale of other real estate owned - generally recognized when the performance obligation is complete which is typically at delivery of control over the property to the buyer at the time of each real estate closing. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions have been in the past and may be in the future an important part of the Company’s growth strategy. All acquisitions were accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of the acquired entities were recorded at their fair values at the acquisition date. The excess of the purchase price over the estimated fair value of the net assets for tax-free acquisitions is recorded as goodwill, none of which is deductible for tax purposes. The excess of the purchase price over the estimated fair value of the net assets for taxable acquisitions was recorded as goodwill, and is deductible for tax purposes. The identified core deposit intangibles for each acquisition are being amortized using an accelerated basis over an estimated life of six to nineteen years. The results of operations for each acquisition have been included in the Company’s consolidated financial results beginning on the respective acquisition date. The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities will end at the earlier of (1) twelve months from the date of the acquisition or (2) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. Pursuant to the terms of the Merger Agreement, the Company is restricted from certain acquisition activities without the consent of Veritex. Veritex has agreed not to unreasonably withhold any such consent. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The Bank, as a correspondent of the Federal Reserve Bank, is required to maintain average reserve balances. Interest-bearing deposits in financial institutions include restricted amount of $86.2 million and $76.0 million at June 30, 2018 and December 31, 2017 , respectively, as a result of this requirement. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of securities as of the dates set forth were as follows: June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 99,125 $ 74 $ (1,982 ) $ 97,217 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 227,164 — (7,095 ) 220,069 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,823 — (2,823 ) 63,000 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 211,291 — (7,035 ) 204,256 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 35,990 — (1,341 ) 34,649 Corporate debt securities 15,913 53 (61 ) 15,905 Obligations of municipal subdivisions 236 1 — 237 Total $ 655,542 $ 128 $ (20,337 ) $ 635,333 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 11,352 $ 25 $ (389 ) $ 10,988 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 2,488 — (90 ) 2,398 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 44,499 60 (138 ) 44,421 Obligations of municipal subdivisions 6,191 — (5 ) 6,186 Total $ 64,530 $ 85 $ (622 ) $ 63,993 Securities with fair value of $50.0 million were transferred from available-for-sale to held-to-maturity classification during the quarter ended March 31, 2018 . The related unrealized loss at the date of transfer of $2.2 million remained in accumulated other comprehensive income and will be amortized over the remaining term of the securities. The net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive income as of June 30, 2018 totaled $2.1 million . December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 104,111 $ 129 $ (948 ) $ 103,292 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 250,580 297 (1,701 ) 249,176 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,986 — (500 ) 65,486 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 234,881 — (6,434 ) 228,447 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 36,151 — (472 ) 35,679 Corporate debt securities 5,789 5 — 5,794 Obligations of municipal subdivisions 6,672 — (45 ) 6,627 CRA qualified investment fund 11,337 — (299 ) 11,038 Total $ 715,507 $ 431 $ (10,399 ) $ 705,539 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 10,841 $ 61 $ (170 ) $ 10,732 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 2,434 — (20 ) 2,414 Total $ 13,275 $ 61 $ (190 ) $ 13,146 Expected maturities of securities will differ from contractual maturities because the underlying borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. The following table sets forth, as of the date indicated, contractual maturities of securities: June 30, 2018 Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ — $ — $ — $ — Due after one year through five years 4,913 4,871 — — Due after five years through ten years 11,236 11,271 — — Due after ten years — — 6,191 6,186 16,149 16,142 6,191 6,186 Mortgage-backed securities and collateralized mortgage obligations 540,268 521,974 58,339 57,807 SBA guaranteed securities 99,125 97,217 — — Total $ 655,542 $ 635,333 $ 64,530 $ 63,993 There were twenty-nine and thirty-one sales of securities classified as available-for-sale during the six months ended June 30, 2018 and 2017 , respectively. During the six months ended June 30, 2018 , proceeds of $24.4 million were received from sales of securities classified as available-for-sale. The sales resulted in a net gain of $66 thousand , which is comprised of $172 thousand in gross realized gains, offset by $106 thousand in gross realized losses. During the six months ended June 30, 2017 , proceeds of $279.2 million were received from sales of securities classified as available-for-sale. The sales resulted in a net gain of $294 thousand , which is comprised of $777 thousand in gross realized gains, offset by $483 thousand in gross realized losses. Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities classified as available-for-sale or held-to-maturity are evaluated for OTTI under FASB ASC 320, Investments—Debt and Equity Securities . In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. When OTTI occurs, the amount of the other-than-temporary impairment recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. As of June 30, 2018 , the Company does not intend to sell any debt securities classified as held-to-maturity and management believes that the Company more likely than not will not be required to sell any debt securities that are in a loss position before their anticipated recovery, at which time the Company will receive full value for the securities. Furthermore, as of June 30, 2018 , management does not have the intent to sell any of its securities classified as available-for-sale that are in a loss position and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of June 30, 2018 , management believes any impairment in the Company’s securities is temporary and no impairment loss has been realized in the Company’s consolidated statements of income. Declines in the fair value of individual securities below their cost that are other-than-temporary would result in writedowns, as a realized loss, to their fair value. In evaluating other-than-temporary impairment losses, management considers several factors including the severity and the duration that the fair value has been less than cost, the credit quality of the issuer, and whether it is more likely than not that the Company will be required to sell the security before a recovery in value. The Company has not realized any losses due to other-than-temporary impairment of securities as of June 30, 2018 . Securities with unrealized losses segregated by length of continuous unrealized loss position as of the dates set forth were as follows: June 30, 2018 Less than 12 Months 12 Months or More Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 89,688 $ (1,892 ) $ 87,796 $ 4,979 $ (90 ) $ 4,889 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 227,164 (7,095 ) 220,069 — — — Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 52,887 (2,340 ) 50,547 12,936 (483 ) 12,453 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 72,794 (1,481 ) 71,313 138,497 (5,554 ) 132,943 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 35,990 (1,341 ) 34,649 — — — Corporate debt securities 8,913 (61 ) 8,852 — — — Total $ 487,436 $ (14,210 ) $ 473,226 $ 156,412 $ (6,127 ) $ 150,285 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 3,893 $ (78 ) $ 3,815 $ 6,017 $ (311 ) $ 5,706 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 2,488 (90 ) 2,398 — — — Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 42,531 (138 ) 42,393 — — — Municipal bonds 6,191 (5 ) 6,186 — — — Total $ 55,103 $ (311 ) $ 54,792 $ 6,017 $ (311 ) $ 5,706 December 31, 2017 Less than 12 Months 12 Months or More Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 76,603 $ (948 ) $ 75,655 $ — $ — $ — Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 192,105 (1,608 ) 190,497 9,152 (93 ) 9,059 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,986 (500 ) 65,486 — — — Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 210,034 (6,183 ) 203,851 9,037 (251 ) 8,786 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 36,151 (472 ) 35,679 — — — Obligations of municipal subdivisions 6,436 (45 ) 6,391 — — — CRA qualified investment fund — — — 11,337 (299 ) 11,038 Total $ 587,315 $ (9,756 ) $ 577,559 $ 29,526 $ (643 ) $ 28,883 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 1,086 $ (9 ) $ 1,077 $ 6,265 $ (161 ) $ 6,104 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 2,434 (20 ) 2,414 — — — Total $ 3,520 $ (29 ) $ 3,491 $ 6,265 $ (161 ) $ 6,104 The average loss on securities in an unrealized loss position was 2.97% and 1.69% of the amortized cost basis at June 30, 2018 and December 31, 2017 , respectively. There were nineteen and eighteen securities in an unrealized loss position of greater than 12 months at June 30, 2018 and December 31, 2017 , respectively. The Company did not own securities of any one issuer (other than the U.S. government and its agencies or sponsored enterprises) for which the aggregate adjusted cost exceeds 10% of the consolidated shareholders’ equity at June 30, 2018 or December 31, 2017 . Securities with an amortized cost of $5.4 million and $6.3 million and fair value of $5.2 million and $6.3 million were pledged and available to be sold under repurchase agreements at June 30, 2018 and December 31, 2017 , respectively. Securities with an amortized cost of $74.4 million and $55.7 million and fair value of $73.4 million and $55.5 million were pledged to various Federal Reserve Districts related to deposits of bankruptcy trustees at June 30, 2018 and December 31, 2017 , respectively. In addition, securities with an amortized cost of $3.3 million and $3.4 million and fair value of $3.2 million and $3.3 million were pledged as collateral for the Company’s derivative instruments at June 30, 2018 and December 31, 2017 , respectively. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
LOANS | LOANS The loan portfolio classified by type and class as of the dates set forth were as follows: June 30, 2018 Originated Acquired Total (Dollars in thousands) Commercial & industrial $ 1,034,821 $ 35,599 $ 1,070,420 Mortgage warehouse 244,041 — 244,041 Real estate: Owner occupied commercial real estate 373,692 62,461 436,153 Commercial real estate 949,099 142,937 1,092,036 Construction, land & land development 105,926 24,607 130,533 Residential mortgage 158,531 76,661 235,192 Consumer and other 12,854 879 13,733 Total loans held for investment $ 2,878,964 $ 343,144 $ 3,222,108 Total loans held for sale $ 4,992 $ — $ 4,992 December 31, 2017 Originated Acquired Total (Dollars in thousands) Commercial & industrial $ 1,002,797 $ 63,469 $ 1,066,266 Mortgage warehouse 220,230 — 220,230 Real estate: Owner occupied commercial real estate 327,906 87,324 415,230 Commercial real estate 823,361 244,418 1,067,779 Construction, land & land development 136,998 27,954 164,952 Residential mortgage 149,021 89,559 238,580 Consumer and other 16,178 1,270 17,448 Total loans held for investment $ 2,676,491 $ 513,994 $ 3,190,485 Total loans held for sale $ 7,156 $ — $ 7,156 The loan portfolio is comprised of four types, commercial and industrial loans, mortgage warehouse, real estate loans and consumer and other loans. The real estate loans are further segregated into owner occupied commercial real estate, commercial real estate, which includes multi-family loans, construction, land and land development, which includes both commercial construction and loans for the construction of residential properties and residential mortgage, which includes first and second liens and home equity lines. Consumer and other loans includes various types of loans to consumers and overdrafts. Loans are further separated between loans originated by the Company and loans acquired. Included in the loans held for investment balance was $13.6 million of net deferred loan origination fees and unamortized premium and discount at both June 30, 2018 and December 31, 2017 . Also included in loans at June 30, 2018 and December 31, 2017 was $234 thousand and $1.4 million , respectively, in nonaccretable discount on acquired credit impaired loans. Accrued interest receivable on loans was $9.3 million and $8.8 million at June 30, 2018 and December 31, 2017 , respectively. Consumer and other loans include overdrafts of $55 thousand and $48 thousand as of June 30, 2018 and December 31, 2017 , respectively. The loan portfolio consists of various types of loans made to borrowers principally located in the Houston and Dallas metropolitan areas. Although the portfolio is diversified and generally secured by various types of collateral, a substantial portion of its debtors’ ability to honor their obligations is dependent on local economic conditions, including conditions affecting the energy industry. The risks created by this geographic concentration have been considered by management in the determination of the adequacy of the allowance for loan losses. The Company does not have any significant concentration to any one industry or customer. As of June 30, 2018 and December 31, 2017 , there were no concentrations of loans related to any single industry in excess of 10% of total loans. Reserved-based energy loans outstanding represented approximately 0.4% and 0.6% of total funded loans as of June 30, 2018 and December 31, 2017 , respectively. Energy-related service industry loans represented approximately 0.8% and 1.1% of total funded loans as of June 30, 2018 and December 31, 2017 , respectively. As of June 30, 2018 , and December 31, 2017 , $14.3 million and $19.2 million of reserved-based energy loans and $10.1 million and $17.5 million of energy-related service industry loans were impaired, respectively. Loan maturities and rate sensitivity of the loans held for investment, as of the date indicated, were as follows: June 30, 2018 Due in One Year or Less Due After One Year Through Five Years Due After Five Years Total (Dollars in thousands) Commercial & industrial $ 390,500 $ 620,518 $ 59,402 $ 1,070,420 Mortgage warehouse 126,702 117,339 — 244,041 Real estate: Owner occupied commercial real estate 20,561 169,800 245,792 436,153 Commercial real estate 164,160 669,033 258,843 1,092,036 Construction, land & land development 41,620 56,203 32,710 130,533 Residential mortgage 18,921 47,200 169,071 235,192 Consumer and Other 3,854 2,262 7,617 13,733 Total loans held for investment $ 766,318 $ 1,682,355 $ 773,435 $ 3,222,108 Fixed rate $ 141,480 $ 429,239 $ 103,806 $ 674,525 Adjustable rate (1) 624,838 1,253,116 669,629 2,547,583 Total loans held for investment $ 766,318 $ 1,682,355 $ 773,435 $ 3,222,108 (1) Includes all adjustable rate loans irrespective of the time period to next interest rate reset. In the ordinary course of business, the Company has granted loans to certain directors, officers and their affiliates. In the opinion of management, all transactions entered into between the Bank and such related parties have been and are in the ordinary course of business, made on the same terms and conditions as similar transactions with unaffiliated persons. An analysis of activity with respect to these related-party loans for the six months ended June 30, 2018 and the year ended December 31, 2017 was as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Beginning balance $ — $ 5,813 Advances — — Repayments — (5,813 ) Ending Balance $ — $ — Acquired Loans — The outstanding principal balance and recorded investment in the total acquired loans from all completed acquisitions, as of the dates set forth, was as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Credit impaired acquired loans: Outstanding principal balance $ 11,378 $ 18,498 Recorded investment 10,717 15,965 Discount, net $ 661 $ 2,533 Other acquired loans: Outstanding principal balance 333,433 499,939 Deferred fees, net (40 ) (72 ) Recorded investment 332,427 498,029 Discount, net $ 966 $ 1,838 Total acquired loans: Outstanding principal balance 344,811 518,437 Deferred fees, net (40 ) (72 ) Recorded investment 343,144 513,994 Discount, net $ 1,627 $ 4,371 Changes in the accretable yield for credit impaired acquired loans for the periods indicated, were as follows: Six Months Ended June 30, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 1,125 $ 2,544 Reclassifications from non-accretable discount 989 327 Accretion (1,687 ) (695 ) Balance at period end $ 427 $ 2,176 Purchased credit impaired loans are evaluated on an ongoing basis after acquisition. Reclassifications between nonaccretable discount and accretable yield are recorded based on the current estimates of the timing and amount of expected future cash flows. Nonaccrual and Past Due Loans — When management doubts a borrower’s ability to meet payment obligations, which typically occurs when principal or interest payments are more than 90 days past due, the loans are placed on nonaccrual status. The age analysis of loans, segregated by class, as of the dates set forth was as follows: June 30, 2018 Loans Past Due and Still Accruing 30 - 89 Days Past Due 90 Days or More Past Due Total Nonaccrual Purchased Credit Impaired Current Total Loans (Dollars in thousands) Originated Loans Commercial & industrial $ 4,396 $ — $ 4,396 $ 41,033 $ — $ 989,392 $ 1,034,821 Mortgage warehouse — — — — — 244,041 244,041 Real estate: Owner occupied commercial real estate — — — 5,225 — 368,467 373,692 Commercial real estate 14,800 — 14,800 175 — 934,124 949,099 Construction, land & land development — — — 107 — 105,819 105,926 Residential mortgage 968 59 1,027 3,859 — 153,645 158,531 Consumer and other 157 26 183 45 — 12,626 12,854 Total originated loans $ 20,321 $ 85 $ 20,406 $ 50,444 $ — $ 2,808,114 $ 2,878,964 Acquired Loans Commercial & industrial $ 4,310 $ 438 $ 4,748 $ 1,746 $ 1,730 $ 27,375 $ 35,599 Real estate: Owner occupied commercial real estate 1,837 — 1,837 1,727 3,394 55,503 62,461 Commercial real estate 8,290 268 8,558 105 3,591 130,683 142,937 Construction, land & land development — — — 700 — 23,907 24,607 Residential mortgage 1,144 97 1,241 104 2,002 73,314 76,661 Consumer and other — 19 19 3 — 857 879 Total acquired loans $ 15,581 $ 822 $ 16,403 $ 4,385 $ 10,717 $ 311,639 $ 343,144 Total loans held for investment $ 35,902 $ 907 $ 36,809 $ 54,829 $ 10,717 $ 3,119,753 $ 3,222,108 December 31, 2017 Loans Past Due and Still Accruing 30 - 89 Days Past Due 90 Days or More Past Due Total Nonaccrual Purchased Credit Impaired Current Total Loans (Dollars in thousands) Originated Loans Commercial & industrial $ 15,917 $ 242 $ 16,159 $ 45,413 $ — $ 941,225 $ 1,002,797 Mortgage warehouse — — — — — 220,230 220,230 Real estate: Owner occupied commercial real estate 1,109 — 1,109 — — 326,797 327,906 Commercial real estate 16,250 — 16,250 — — 807,111 823,361 Construction, land & land development 2,255 133 2,388 3,287 — 131,323 136,998 Residential mortgage 1,311 — 1,311 3,111 — 144,599 149,021 Consumer and other 127 — 127 49 — 16,002 16,178 Total originated loans $ 36,969 $ 375 $ 37,344 $ 51,860 $ — $ 2,587,287 $ 2,676,491 Acquired Loans Commercial & industrial $ — $ — $ — $ 1,901 $ 3,237 $ 58,331 $ 63,469 Real estate: Owner occupied commercial real estate 233 — 233 1,886 4,062 81,143 87,324 Commercial real estate 1,885 — 1,885 312 6,437 235,784 244,418 Construction, land & land development 204 — 204 714 — 27,036 27,954 Residential mortgage 804 — 804 454 2,229 86,072 89,559 Consumer and other — — — 211 — 1,059 1,270 Total acquired loans 3,126 — 3,126 5,478 15,965 489,425 513,994 Total loans held for investment $ 40,095 $ 375 $ 40,470 $ 57,338 $ 15,965 $ 3,076,712 $ 3,190,485 Impaired Loans — The following is a summary of information related to impaired, nonaccrual and restructured loans and accruing loans past due 90 days or more as of the dates set forth: June 30, 2018 Originated Acquired Total (Dollars in thousands) Nonaccrual loans $ 49,543 $ 3,342 $ 52,885 Accruing loans past due 90 days or more 85 822 907 Restructured loans - nonaccrual 901 1,043 1,944 Restructured loans - accruing 8 3,047 3,055 Total nonperforming loans $ 50,537 $ 8,254 $ 58,791 December 31, 2017 Originated Acquired Total (Dollars in thousands) Nonaccrual loans $ 43,797 $ 4,095 $ 47,892 Accruing loans past due 90 days or more 375 — 375 Restructured loans - nonaccrual 8,063 1,383 9,446 Restructured loans - accruing 4,255 8,838 13,093 Total nonperforming loans $ 56,490 $ 14,316 $ 70,806 Impaired loans of $54.8 million and $57.3 million at June 30, 2018 and December 31, 2017 respectively, have been categorized by management as nonaccrual loans. Interest foregone on nonaccrual loans for the three months ended June 30, 2018 and 2017 was approximately $1.3 million and $1.1 million , respectively, and for the six months ended June 30, 2018 and 2017 was approximately $2.4 million and $2.8 million , respectively. Based on an analysis of impaired loans at June 30, 2018 and December 31, 2017 , an allowance of $10.4 million and $5.7 million , respectively, was allocated to impaired loans. The following tables present, for the periods indicated, the average recorded investment in impaired loans and the approximate amount of interest recognized on impaired loans. Interest recognized includes interest accrued on restructured loans that have performed based on their restructured terms and interest collected on nonaccrual loans that were paid in full during the period. Three Months Ended June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Originated Loans Commercial & industrial $ 49,277 $ 55 $ 40,013 $ 3 Owner occupied commercial real estate 2,318 — — — Commercial real estate 2,186 — 1,993 — Construction, land & land development 2,432 — — — Residential mortgage 3,619 — 2,251 20 Consumer and other 47 — 124 1 Total originated loans $ 59,879 $ 55 $ 44,381 $ 24 Acquired Loans Commercial & industrial $ 8,956 $ 119 $ 19,949 $ 133 Owner occupied commercial real estate 1,733 — 8,141 — Commercial real estate 107 — 1,266 — Construction, land & land development 703 — 1,440 15 Residential mortgage 45 — 1,052 9 Consumer and other 207 — 216 — Total acquired loans $ 11,751 $ 119 $ 32,064 $ 157 Total $ 71,630 $ 174 $ 76,445 $ 181 Six Months Ended June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Originated Loans Commercial & industrial $ 50,893 $ 115 $ 38,924 $ 11 Owner occupied commercial real estate 1,159 — — — Commercial real estate 1,186 — 3,752 — Construction, land & land development 2,918 — — — Residential mortgage 3,358 — 2,455 26 Consumer and other 51 — 167 2 Total originated loans $ 59,565 $ 115 $ 45,298 $ 39 Acquired Loans Commercial & industrial $ 9,940 $ 242 $ 24,636 $ 272 Owner occupied commercial real estate 1,762 — 8,507 — Commercial real estate 111 3 1,619 — Construction, land & land development 707 — 1,268 15 Residential mortgage 176 — 1,244 9 Consumer and other 210 — 145 — Total acquired loans $ 12,906 $ 245 $ 37,419 $ 296 Total $ 72,471 $ 360 $ 82,717 $ 335 The following tables present additional information regarding impaired loans that were individually evaluated for impairment as of the dates indicated: June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) Originated Loans With no related allowance recorded: Commercial & industrial $ 16,215 $ 16,423 $ — Owner occupied commercial real estate 1,731 1,738 Commercial real estate 175 175 — Construction, land & land development 107 108 — Residential mortgage 3,859 3,859 — Total with no related allowance recorded: $ 22,087 $ 22,303 $ — With an allowance recorded: Commercial & industrial $ 24,826 $ 24,889 $ 9,652 Owner occupied commercial real estate 3,494 3,494 531 Consumer and other 45 45 30 Total with an allowance recorded: $ 28,365 $ 28,428 $ 10,213 Total originated loans $ 50,452 $ 50,731 $ 10,213 Acquired Loans With no related allowance recorded: Commercial & industrial $ 4,594 $ 4,594 $ — Owner occupied commercial real estate 1,043 1,053 — Commercial real estate 105 105 — Construction, land & land development 700 702 — Residential mortgage 104 105 — Consumer and other 200 194 — Total with no related allowance recorded: $ 6,746 $ 6,753 $ — With an allowance recorded: Owner occupied commercial real estate $ 684 $ 699 $ 153 Consumer and other 2 3 2 Total with an allowance recorded: $ 686 $ 702 $ 155 Total acquired loans $ 7,432 $ 7,455 $ 155 Total: Commercial & industrial $ 45,635 $ 45,906 $ 9,652 Real estate 12,002 12,038 684 Consumer and other 247 242 32 Total $ 57,884 $ 58,186 $ 10,368 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) Originated Loans With no related allowance recorded: Commercial & industrial $ 32,794 $ 32,974 $ — Construction, land & land development 111 111 — Residential mortgage 3,111 3,111 — Consumer and other 12 12 — Total with no related allowance recorded: $ 36,028 $ 36,208 $ — With an allowance recorded: Commercial & industrial $ 16,862 $ 16,943 $ 5,409 Construction, land & land development 3,176 3,176 224 Consumer and other 49 49 30 Total with an allowance recorded: $ 20,087 $ 20,168 $ 5,663 Total originated loans $ 56,115 $ 56,376 $ 5,663 Acquired Loans With no related allowance recorded: Commercial & industrial $ 10,738 $ 10,738 $ — Owner occupied commercial real estate 1,886 1,910 — Commercial real estate 312 312 — Construction, land & land development 714 716 — Residential mortgage 454 455 — Consumer and other 208 202 — Total with no related allowance recorded: $ 14,312 $ 14,333 $ — With an allowance recorded: Consumer and other $ 4 $ 4 $ 4 Total with an allowance recorded: $ 4 $ 4 $ 4 Total acquired loans $ 14,316 $ 14,337 $ 4 Total: Commercial & Industrial $ 60,394 $ 60,655 $ 5,409 Real Estate 9,764 9,791 224 Consumer and other 273 267 34 Total $ 70,431 $ 70,713 $ 5,667 Credit Quality — Internally assigned risk grades for loans are defined as follows: Grade 1 (Highest Quality — No Apparent Risk) — This category includes loans to borrowers of unquestioned credit standing which are secured by readily marketable collateral of undisputed value, with appropriate margin. It also includes loans to borrowing entities with: excellent capitalization, liquidity and earnings levels; quality management; positive financial trends; and favorable industry conditions. Grade 2 (Good Quality — Minimal Risk) — This category includes loans to investment grade entities with: good liquidity and financial condition, nominal term debt, strong debt service capability, solid management, and quality financial information. These loans are usually secured with current assets, but may be unsecured. Alternative financing from other lenders is generally available to these borrowers. Grade 3 (Satisfactory Quality — Acceptable Risk — Tier One) — This category includes loans to entities maintaining fair liquidity and acceptable financial conditions. The level of term debt is moderate, with adequate debt service capability. Earnings may be volatile, but borrowers in this category generally do not show a loss within the last three years. Primary debt service must be supported by identified secondary repayment sources or by guarantors with adequate and proven responsibility and capacity. Grade 4 (Satisfactory Quality — Acceptable Risk — Tier Two) — This category includes loans to borrowers maintaining acceptable financial conditions; however, borrowers may exhibit certain characteristics of leverage or asset dependency that reflect a greater level of risk than Tier One credits. This category may also include borrowers exhibiting explainable interim losses within the previous three years and/or industry characteristics that warrant frequent monitoring. Grade 5 (Monitored Loans) — This category includes loans with trends or characteristics which, if continued, could result in impaired repayment ability. The borrower may exhibit a low degree of liquidity and relatively high leverage, erratic earnings history (including the possibility of a reported loss in the past four years), significant term debt and a nominal cushion for debt service capacity. Loans in this category may also include financing to start-up borrowers backed by experienced management and significant capital investment or established companies in distressed industry conditions. Grade 6 (Other Assets Especially Mentioned) — This category includes loans which have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or a weakening of the Company’s credit position at some future date. Grade 6 loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Grade 7 (Substandard — Accruing) — This category includes loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any, or loans with identified weaknesses but where there is sufficient collateral value and/or cash flow coverage. This category includes loans that: (1)may require a secondary source of repayment (liquidation of collateral or repayment by a guarantor); (2) lack current financial information or appraisals; and/or (3) have collateral deficiencies such that the Company would be in an unsecured position with an obligor not deserving unsecured credit. This category may also include borrowers with operating losses in recent periods. Grade 8 (Substandard — Nonaccrual) — This category includes loans with the same basic characteristics as Grade 7 loans that also meet the Company’s criteria for nonaccrual status, but do not warrant a Grade 9 or Grade 10 classification. Grade 9 (Doubtful/Exposure) — This category includes loans with all the Grade 7 or 8 characteristics but with weaknesses that make collection (or liquidation) highly questionable and improbable. Grade 10 (Loss) — This category includes loans which are considered uncollectible, or of such little value that they should no longer be carried as an asset of the Company. The credit risk profile of loans aggregated by class and internally assigned risk grades as of the dates set forth were as follows: June 30, 2018 Grade 1 - 4 (Pass) Grade 5 (Watch) Grade 6 (Special Mention) Grade 7 (Substandard-Accrual) Grade 8 (Substandard-Nonaccrual) Grade 9 (Doubtful) PCI Total (Dollars in thousands) Originated Loans Commercial & Industrial $ 895,299 $ 65,009 $ 22,153 $ 11,327 $ 41,033 $ — $ — $ 1,034,821 Mortgage Warehouse 244,041 — — — — — — 244,041 Owner Occupied Commercial Real Estate 342,441 18,036 4,649 3,341 5,225 — — 373,692 Commercial Real Estate 799,637 77,763 23,652 47,872 175 — — 949,099 Construction & Land Development 94,902 3,686 1,457 5,774 107 — — 105,926 Residential Mortgage 153,588 14 59 1,011 3,859 — — 158,531 Other Consumer 12,783 — — 26 45 — — 12,854 Total originated loans $ 2,542,691 $ 164,508 $ 51,970 $ 69,351 $ 50,444 $ — $ — $ 2,878,964 Acquired Loans Commercial & Industrial $ 17,645 $ 6,596 $ 7,750 $ 132 $ 1,746 $ — $ 1,730 $ 35,599 Owner Occupied Commercial Real Estate 47,744 7,314 2,003 279 1,727 — 3,394 62,461 Commercial Real Estate 107,919 4,232 26,822 268 105 — 3,591 142,937 Construction & Land Development 11,401 11,951 — 555 700 — — 24,607 Residential Mortgage 73,597 202 197 559 104 — 2,002 76,661 Other Consumer 657 — 200 19 3 — — 879 Total acquired loans $ 258,963 $ 30,295 $ 36,972 $ 1,812 $ 4,385 $ — $ 10,717 $ 343,144 Total loans $ 2,801,654 $ 194,803 $ 88,942 $ 71,163 $ 54,829 $ — $ 10,717 $ 3,222,108 December 31, 2017 Grade 1 - 4 (Pass) Grade 5 (Watch) Grade 6 (Special Mention) Grade 7 (Substandard-Accrual) Grade 8 (Substandard-Nonaccrual) Grade 9 (Doubtful) PCI Total (Dollars in thousands) Originated Loans Commercial & Industrial $ 889,709 $ 22,648 $ 5,605 $ 39,422 $ 45,413 $ — $ — $ 1,002,797 Mortgage Warehouse 220,230 — — — — — — 220,230 Owner Occupied Commercial Real Estate 314,497 3,096 7,658 2,655 — — — 327,906 Commercial Real Estate 681,691 45,149 85,431 11,090 — — — 823,361 Construction & Land Development 121,893 970 — 10,848 3,287 — — 136,998 Residential Mortgage 138,239 6,529 — 1,142 3,111 — — 149,021 Other Consumer 16,113 2 — 14 49 — — 16,178 Total originated loans $ 2,382,372 $ 78,394 $ 98,694 $ 65,171 $ 51,860 $ — $ — $ 2,676,491 Acquired Loans Commercial & Industrial $ 38,000 $ 3,172 $ 11,101 $ 6,058 $ 1,901 $ — $ 3,237 $ 63,469 Owner Occupied Commercial Real Estate 72,592 8,499 — 285 1,886 — 4,062 87,324 Commercial Real Estate 173,765 43,775 20,129 — 312 — 6,437 244,418 Construction & Land Development 14,549 12,136 — 555 714 — — 27,954 Residential Mortgage 85,461 1,023 202 190 454 — 2,229 89,559 Other Consumer 1,059 — — — 211 — — 1,270 Total acquired loans $ 385,426 $ 68,605 $ 31,432 $ 7,088 $ 5,478 $ — $ 15,965 $ 513,994 Total loans $ 2,767,798 $ 146,999 $ 130,126 $ 72,259 $ 57,338 $ — $ 15,965 $ 3,190,485 Troubled Debt Restructurings — The restructuring of a loan is considered a troubled debt restructuring if both the borrower is experiencing financial difficulties and the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Troubled debt restructurings identified during the periods indicated were as follows: Six Months Ended June 30, 2018 June 30, 2017 Number of Contracts Pre-Modification Outstanding Recorded Investment Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Recorded Investment (Dollars in thousands) Commercial & industrial — $ — $ — 3 $ 2,526 $ 2,509 Owner occupied commercial real estate — — — 3 5,501 5,492 Construction, land & land development — — — 2 831 820 Consumer and other — — — 1 208 214 Total — $ — $ — 9 $ 9,066 $ 9,035 The modifications primarily relate to extending the maturity date of the loans, which includes loans modified post-bankruptcy. The Company did not forgive any principal or interest on the restructured loans. For the six months ended June 30, 2018 , the Company did not add any new troubled debt restructuring. For the six months ended June 30, 2017 , the Company added $9.1 million in new troubled debt restructuring and $9.0 million was outstanding on June 30, 2017 . Troubled debt restructurings are individually evaluated for impairment. The allowance for loan losses included specific reserves of $244 thousand related to $901 thousand of these loans at June 30, 2018 . |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Jun. 30, 2018 | |
Receivable Loans and Leases Allowance [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES An analysis of activity in the allowance for loan losses for the periods indicated, and the balance of loans receivable by the method of impairment evaluation for those periods were as follows: Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 23,113 $ 2,713 $ (5,300 ) $ 1 $ 20,527 Owner occupied commercial real estate 2,871 480 — — 3,351 Commercial real estate 7,766 385 — — 8,151 Construction, land & land development 1,461 (613 ) — — 848 Residential mortgage 1,159 (52 ) — 3 1,110 Consumer and other 165 39 (46 ) 7 165 Total originated loans $ 36,535 $ 2,952 $ (5,346 ) $ 11 $ 34,152 Acquired Loans Commercial & industrial $ 42 $ (26 ) $ — $ 3 $ 19 Owner occupied commercial real estate 513 (360 ) — — 153 Commercial real estate 574 (289 ) — 5 290 Construction, land & land development 20 18 — — 38 Residential mortgage 539 (396 ) — 287 430 Consumer and other 10 (2 ) (6 ) 2 4 Total acquired loans $ 1,698 $ (1,055 ) $ (6 ) $ 297 $ 934 Total $ 38,233 $ 1,897 $ (5,352 ) $ 308 $ 35,086 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 15,155 $ 1,736 $ (308 ) $ 23 $ 16,606 Owner occupied commercial real estate 2,763 62 — — 2,825 Commercial real estate 8,347 (162 ) — — 8,185 Construction, land & land development 1,536 40 — — 1,576 Residential mortgage 1,119 37 — 9 1,165 Consumer and other 191 103 (126 ) 4 172 Total originated loans $ 29,111 $ 1,816 $ (434 ) $ 36 $ 30,529 Acquired Loans Commercial & industrial $ 586 $ (321 ) $ (158 ) $ 50 $ 157 Owner occupied commercial real estate 1,064 (103 ) (961 ) — — Commercial real estate 340 144 — 3 487 Construction, land & land development 9 (6 ) — — 3 Residential mortgage 611 (20 ) — 7 598 Consumer and other 215 — — 2 217 Total acquired loans $ 2,825 $ (306 ) $ (1,119 ) $ 62 $ 1,462 Total $ 31,936 $ 1,510 $ (1,553 ) $ 98 $ 31,991 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 16,654 $ 11,869 $ (7,999 ) $ 3 $ 20,527 Owner occupied commercial real estate 2,748 603 — — 3,351 Commercial real estate 7,738 413 — — 8,151 Construction, land & land development 1,481 (633 ) — — 848 Residential mortgage 1,136 (31 ) — 5 1,110 Consumer and other 221 (54 ) (56 ) 54 165 Total originated loans $ 29,978 $ 12,167 $ (8,055 ) $ 62 $ 34,152 Acquired Loans Commercial & industrial $ 35 $ (25 ) $ — $ 9 $ 19 Owner occupied commercial real estate — 153 — — 153 Commercial real estate 658 (375 ) — 7 290 Construction, land & land development — 38 — — 38 Residential mortgage 542 (412 ) — 300 430 Consumer and other 7 14 (20 ) 3 4 Total acquired loans $ 1,242 $ (607 ) $ (20 ) $ 319 $ 934 Total $ 31,220 $ 11,560 $ (8,075 ) $ 381 $ 35,086 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 9,491 $ 7,970 $ (1,443 ) $ 588 $ 16,606 Owner occupied commercial real estate 2,609 216 — — 2,825 Commercial real estate 8,576 (391 ) — — 8,185 Construction, land & land development 1,852 (276 ) — — 1,576 Residential mortgage 1,134 (3 ) — 34 1,165 Consumer and other 193 (9 ) (134 ) 122 172 Total originated loans $ 23,855 $ 7,507 $ (1,577 ) $ 744 $ 30,529 Acquired Loans Commercial & industrial $ 1,260 $ (838 ) $ (335 ) $ 70 $ 157 Owner occupied commercial real estate — 957 (961 ) 4 — Commercial real estate 437 47 — 3 487 Construction, land & land development 115 (91 ) (95 ) 74 3 Residential mortgage 685 (126 ) — 39 598 Consumer and other 12 199 — 6 217 Total acquired loans $ 2,509 $ 148 $ (1,391 ) $ 196 $ 1,462 Total $ 26,364 $ 7,655 $ (2,968 ) $ 940 $ 31,991 An analysis of activity in the allowance for loan losses for the periods indicated, and the balance of loans receivable by the method of impairment evaluation for those periods were as follows: June 30, 2018 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,237,821 $ 41,041 $ — $ 1,278,862 $ 10,875 $ 9,652 $ — $ 20,527 Owner occupied commercial real estate 368,467 5,225 — 373,692 2,820 531 — 3,351 Commercial real estate 948,924 175 — 949,099 8,151 — — 8,151 Construction, land & land development 105,819 107 — 105,926 848 — — 848 Residential mortgage 154,672 3,859 — 158,531 1,110 — — 1,110 Consumer and other 12,809 45 — 12,854 136 29 — 165 Total originated loans $ 2,828,512 $ 50,452 $ — $ 2,878,964 $ 23,940 $ 10,212 $ — $ 34,152 Acquired Loans Commercial & industrial $ 29,275 $ 4,594 $ 1,730 $ 35,599 $ 19 $ — $ — $ 19 Owner occupied commercial real estate 57,340 1,727 3,394 62,461 — 153 — 153 Commercial real estate 139,241 105 3,591 142,937 290 — — 290 Construction, land & land development 23,907 700 — 24,607 38 — — 38 Residential mortgage 74,555 104 2,002 76,661 320 — 110 430 Consumer and other 677 202 — 879 1 3 — 4 Total acquired loans $ 324,995 $ 7,432 $ 10,717 $ 343,144 $ 668 $ 156 $ 110 $ 934 Total $ 3,153,507 $ 57,884 $ 10,717 $ 3,222,108 $ 24,608 $ 10,368 $ 110 $ 35,086 December 31, 2017 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,173,371 $ 49,656 $ — $ 1,223,027 $ 11,245 $ 5,409 $ — $ 16,654 Owner occupied commercial real estate 327,906 — — 327,906 2,748 — — 2,748 Commercial real estate 823,361 — — 823,361 7,738 — — 7,738 Construction, land & land development 133,711 3,287 — 136,998 1,257 224 — 1,481 Residential mortgage 145,910 3,111 — 149,021 1,136 — — 1,136 Consumer and other 16,116 62 — 16,178 191 30 — 221 Total originated loans $ 2,620,375 $ 56,116 $ — $ 2,676,491 $ 24,315 $ 5,663 $ — $ 29,978 Acquired Loans Commercial & industrial $ 49,494 $ 10,738 $ 3,237 $ 63,469 $ 35 $ — $ — $ 35 Owner occupied commercial real estate 81,376 1,886 4,062 87,324 — — — — Commercial real estate 237,669 312 6,437 244,418 658 — — 658 Construction, land & land development 27,240 714 — 27,954 — — — — Residential mortgage 86,876 454 2,229 89,559 467 — 75 542 Consumer and other 1,059 211 — 1,270 3 4 — 7 Total acquired loans $ 483,714 $ 14,315 $ 15,965 $ 513,994 $ 1,163 $ 4 $ 75 $ 1,242 Total $ 3,104,089 $ 70,431 $ 15,965 $ 3,190,485 $ 25,478 $ 5,667 $ 75 $ 31,220 June 30, 2017 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,010,269 $ 42,085 $ — $ 1,052,354 $ 9,556 $ 7,050 $ — $ 16,606 Owner occupied commercial real estate 306,514 — — 306,514 2,825 — — 2,825 Commercial real estate 805,362 1,979 — 807,341 8,185 — — 8,185 Construction, land & land development 153,522 — — 153,522 1,576 — — 1,576 Residential mortgage 135,879 2,039 — 137,918 1,165 — — 1,165 Consumer and other 19,024 81 — 19,105 143 29 — 172 Total originated loans $ 2,430,570 $ 46,184 $ — $ 2,476,754 $ 23,450 $ 7,079 $ — $ 30,529 Acquired Loans Commercial & industrial $ 74,661 $ 15,029 $ 2,288 $ 91,978 $ — $ 157 $ — $ 157 Owner occupied commercial real estate 88,714 6,958 5,131 100,803 — — — — Commercial real estate 291,289 — 10,607 301,896 487 — — 487 Construction, land & land development 46,984 1,468 18 48,470 3 — — 3 Residential mortgage 99,052 402 2,462 101,916 561 20 17 598 Consumer and other 1,323 215 — 1,538 5 212 — 217 Total acquired loans $ 602,023 $ 24,072 $ 20,506 $ 646,601 $ 1,056 $ 389 $ 17 $ 1,462 Total $ 3,032,593 $ 70,256 $ 20,506 $ 3,123,355 $ 24,506 $ 7,468 $ 17 $ 31,991 |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Premises and equipment as of the dates indicated are summarized as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Land $ 8,457 $ 7,660 Buildings and improvements 28,563 23,598 Furniture, fixtures and equipment 10,479 10,484 47,499 41,742 Less accumulated depreciation (18,321 ) (17,740 ) Total $ 29,178 $ 24,002 Depreciation of premises and equipment totaled $453 thousand and $515 thousand for the three months ended June 30, 2018 and 2017 , respectively, and $1.0 million for both the six months ended June 30, 2018 and 2017 . |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLES | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLES | GOODWILL AND CORE DEPOSIT INTANGIBLES The Company has historically performed its annual goodwill impairment test as of December 31 each year. During 2017, the Company voluntarily changed its annual impairment assessment date from December 31 to October 31. The Company accelerated the impairment test to earlier during the quarter to better align the impairment testing work with year-end financial statements. The change in measurement date represents a change in the method of applying an accounting principle, however, the Company does not consider the change material, intends to utilize the same valuation approach and does not expect the change in valuation date to produce different impairment results. The Company reviews its goodwill for impairment annually, or more frequently, if indicators of impairment exist. At June 30, 2018 and December 31, 2017 , management determined that goodwill, as reflected in the Company’s financial statements, was not impaired. The most recent goodwill impairment test was as of October 31, 2017 . Subsequent to the date of the test, management has determined that no triggering events have occurred that would result in impairment. Changes in the carrying amount of goodwill and core deposit intangibles for the periods set forth were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance - December 31, 2016 $ 85,291 $ 9,975 Less - amortization — (1,472 ) Balance - December 31, 2017 $ 85,291 $ 8,503 Less amortization — (622 ) Balance - June 30, 2018 $ 85,291 $ 7,881 Amortization of core deposit intangibles was $306 thousand and $380 thousand for the three months ended June 30, 2018 and 2017 , respectively, and $622 thousand and $760 thousand for the six months ended June 30, 2018 and 2017 , respectively. The Company initially records the total premium paid on acquisitions as goodwill. After finalizing the valuation, core deposit intangibles are identified and reclassified from goodwill to core deposit intangibles on the balance sheet. This reclassification has no effect on total assets, liabilities, shareholders’ equity, net income or cash flows. The measurement period for the Company to determine the fair value of acquired identifiable assets and assumed liabilities will be at the end of the earlier of (1)twelve months from the date of acquisition or (2) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the date of acquisition. The Company may record subsequent adjustments to goodwill for amounts undeterminable at acquisition date, such as deferred taxes and real estate valuations. Core deposit intangibles are amortized on an accelerated basis over their estimated lives, which the Company believes is approximately six to nineteen years. The estimated future amortization expense for the core deposit intangibles remaining as of June 30, 2018 is as follows (dollars in thousands): 2018 $ 573 2019 1,080 2020 993 2021 905 2022 818 Thereafter 3,512 Total $ 7,881 |
DEPOSITS
DEPOSITS | 6 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
DEPOSITS | DEPOSITS Scheduled maturities of certificates and other time deposits for the next five years were as follows: June 30, December 31, (Dollars in thousands) 2018 $ 493,872 $ 889,231 2019 629,791 247,595 2020 138,430 83,005 2021 20,699 13,922 2022 26,780 28,579 Thereafter 10,470 — Total $ 1,320,042 $ 1,262,332 Certificates and other time deposits that meet or exceed the FDIC Insurance limit of $250,000 at June 30, 2018 and December 31, 2017 , were $609.0 million and $482.0 million , respectively. The Company had $179.5 million and $123.4 million in brokered time deposits at June 30, 2018 and December 31, 2017 , respectively. At June 30, 2018 , the Company also had $75.1 million in brokered interest-bearing transaction accounts and $39.1 million in noninterest-bearing escrow accounts classified as brokered. Brokered deposits represented 8.6% and 4.7% of total deposits at June 30, 2018 and December 31, 2017 , respectively. The Company utilizes brokered deposits to enhance liquidity. There are no major concentrations of deposits with any one depositor. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS Other borrowed funds as of the dates indicated were as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Federal Home Loan Bank advances 412,000 $ 325,000 Repurchase agreements 4,141 5,173 Total $ 416,141 $ 330,173 Federal Home Loan Bank Advances — The Company has an available borrowing arrangement with the Federal Home Loan Bank (the “FHLB”), which allows the Company to borrow on a collateralized basis. At June 30, 2018 and December 31, 2017 , total unused borrowing capacity of $777.7 million and $948.2 million , respectively, was available under this arrangement. At June 30, 2018 , $412.0 million was outstanding with an average interest rate of 2.16% and all of the Company’s FHLB advances will mature within two years. At December 31, 2017 , $325.0 million was outstanding with an average interest rate of 1.41% and all of the Company’s FHLB advances will mature within one year. These borrowings are collateralized by a blanket lien on certain real estate loans and unpledged securities in safekeeping. The total borrowing capacity decreased due to increased utilization. The Company utilizes these borrowings to meet liquidity needs and to fund certain loans in its loan portfolio. Federal Reserve Bank — The Company has an available borrower in custody arrangement with the Federal Reserve Bank of Dallas (the “Dallas Fed”), which allows the Company to borrow, on a collateralized basis. Certain commercial and consumer loans are pledged under this arrangement. The Company maintains this borrowing arrangement to meet liquidity needs pursuant to its liquidity risk management program. At June 30, 2018 and December 31, 2017 , $487.9 million and $384.5 million , respectively, were available under this arrangement and no borrowings were outstanding. Securities Sold Under Agreements to Repurchase — Securities sold by the Company under agreements to repurchase represent the purchase of interests in securities by its customers. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. Repurchase agreements are settled on the following business day. All securities sold under agreements to repurchase are collateralized by pledged securities. The securities underlying the repurchase agreements are held in safekeeping by the Bank’s safekeeping agent. Federal Funds Purchased — The Company has available federal funds lines of credit with its correspondent banks. As of June 30, 2018 and December 31, 2017 , there were no federal funds purchased outstanding. |
SUBORDINATED DEBENTURES AND SUB
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES | 6 Months Ended |
Jun. 30, 2018 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES | SUBORDINATED DEBENTURES AND SUBORDINATED NOTES Subordinated Notes — On December 8, 2016, the Company issued $35.0 million of 8.50% Fixed-to-Floating Rate Subordinated Notes (the “Notes”) that mature on December 15, 2026 through a private placement to certain institutional accredited investors. The Notes, which qualify as Tier 2 capital under the Federal Reserve’s capital guidelines in effect at June 30, 2018 , have an interest rate of 8.50% per annum, during the fixed-rate period from date of issuance through December 15, 2021. Interest is payable semi-annually on each June 15 and December 15, from June 15, 2017 through December 15, 2021. During the floating rate period from December 15, 2021, but excluding the maturity date or date of earlier redemption, the Notes will bear interest at a rate per annum equal to three-month LIBOR for the related interest period plus 6.685% , payable quarterly on each March 15, June 15, September 15 and December 15. The Notes are subordinated in right of payment to all of the Company's senior indebtedness and effectively subordinated to all existing and future debt and all other liabilities of the Company's subsidiary bank. The Company may elect to redeem the Notes (subject to regulatory approval), in whole or in part, on any early redemption date which is any interest payment date on or after December 15, 2021 at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest. Other than on an early redemption date, the Notes cannot be accelerated except in the event of bankruptcy or the occurrence of certain other events of bankruptcy, insolvency or reorganization. The sale of the Notes yielded net proceeds of approximately $33.9 million . The Company utilized $32.8 million of the proceeds to transfer several energy loans to the holding company to provide flexibility to resolve these loans. Unamortized debt issuance costs related to these Notes, which are included in Subordinated Debentures and Subordinated Notes, totaled $1.2 million at June 30, 2018 . Net issuance costs associated with issuing these Notes are amortized to interest expense over the respective terms using the straight-line method. In connection with the issuance of the Notes, we entered into a registration rights agreement (the “Registration Rights Agreement”) with the purchasers of the Notes. Under the Registration Rights Agreement, we were required to, among other things, use commercially reasonable efforts to (1) file with the SEC on or prior to March 31, 2017, a registration statement (the “Exchange Offer Registration Statement”) with respect to an offer to exchange the Notes for new notes with identical terms (except for the provisions relating to the transfer restrictions and payment of additional interest) (the “Exchange Offer”), (2) cause the Exchange Offer Registration Statement to be declared effective by the SEC no later than June 15, 2017 and (3) consummate the Exchange Offer no later than 45 days following the effective date of the Exchange Offer Registration Statement. The Exchange Offer Registration Statement was declared effective by the SEC on April 13, 2017, and we completed the Exchange Offer on May 19, 2017, such that $34,000,000 aggregate principal amount of the Notes was exchanged for $34,000,000 aggregate principal amount of 8.50% Fixed-to-Floating Rate Subordinated Notes due 2026 that were registered under the Securities Act of 1933, as amended, and $1,000,000 aggregate principal amount of the Notes remained unregistered. A summary of pertinent information related to the Company’s issues of subordinated Notes outstanding as of the dates indicated were as follows: June 30, December 31, (Dollars in thousands) Subordinated notes fixed to floating rate, 8.50% per annum, maturity date December 15, 2026 $ 35,000 $ 35,000 Less: unamortized debt issuance costs (1,218 ) (1,291 ) Total subordinated notes $ 33,782 $ 33,709 Subordinated Debentures Trust Preferred Securities — At June 30, 2018 , the Company had outstanding $22.2 million in subordinated debentures, which is offset by a $7.9 million purchase discount. On October 1, 2015, the Company acquired Patriot Bancshares, Inc., and assumed the obligations related to the subordinated debentures issued to Capital Trust I and Capital Trust II. A summary of pertinent information related to the Company’s two issues of subordinated debentures outstanding at June 30, 2018 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Patriot Bancshares Capital Trust I March 31, 2006 $ 5,000 3 month LIBOR +1.85%, not to exceed 11.90% $ 5,155 April 7, 2036 Patriot Bancshares Capital Trust II August 2, 2007 $ 16,500 3 month LIBOR +1.80%, not to exceed 11.90% $ 17,011 September 15, 2037 (1) The 3-month LIBOR in effect as of June 30, 2018 was 2.336% . (2) All debentures are callable five years from issuance date. Each of the trusts is a capital trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are 100% owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by each trust, provided such trust has funds available for such obligations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the three and six months ended June 30, 2018 and 2017 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Income tax expense for the period $ 4,283 $ 6,985 $ 6,605 $ 10,927 Effective Tax Rate 20.7 % 35.1 % 20.4 % 35.2 % Effective January 1, 2018 , the federal statutory corporate income tax rates was reduced from 35% to 21% pursuant to the Tax Cuts and Jobs Act described below. The effective tax rates differ from the statutory federal tax rates of 21% and 35% for the three and six months ended June 30, 2018 and 2017 , respectively, largely due to the nontaxable earnings on bank owned life insurance, tax exempt interest income earned on certain investment securities and loans and excess tax benefits on exercised stock options and vested restricted stock units, less state tax expense, net of federal effect, and other non-deductible expenses. Net deferred tax assets totaled $12.5 million and $8.8 million at June 30, 2018 and December 31, 2017 , respectively. No valuation allowance was recorded against deferred tax assets as of those dates, as management believes it is more likely than not that all of the deferred tax assets will be realized because they were supported by recoverable taxes paid in prior years. Tax Cuts and Jobs Act - The Tax Cuts and Jobs Act was enacted on December 22, 2017 . Among other things, the new law (i) establishes a new, flat, federal statutory corporate income tax rate of 21%, (ii) eliminates the corporate alternative minimum tax and allows the use of any such carryforwards to offset regular tax liability for any taxable year, (iii) limits the deduction for net interest expense incurred by U.S. corporations, (iv) allows businesses to immediately expense, for tax purposes, the cost of new investments in certain qualified depreciable assets, (v) eliminates or reduces certain deductions related to meals and entertainment expenses, (vi) modifies the limitation on excessive employee compensation to eliminate the exception for performance-based compensation and clarifies the definition of a covered employee and (vii) limits the deductibility of deposit insurance premiums for banks in excess of $5 billion in assets. The Company completed its accounting under ASU 740, Income Taxes , for all material deferred tax assets and liabilities during the quarter ended December 31, 2017 . Provisional amounts were recorded for certain immaterial items including Schedules K-1 from CRA related partnership investments. As a result of the revaluation, we recorded $5.8 million in income tax expense for 2017 . Material adjustment to provisional amounts are not expected. During the three months ended March 31, 201 8, the Company elected early adoption of the provisions of ASU 2018-02, which allowed the Company to reclassify the effects of the statutory tax rate change on items within accumulated other comprehensive income to retained earnings. This reclassification, which reduced other comprehensive income and increased retained earnings by $1.4 million , related entirely to unrealized gains and losses on available-for-sale securities. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 6 Months Ended |
Jun. 30, 2018 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS Equity Incentive Plans — The 2014 Omnibus Equity Incentive Plan (the “2014 Plan”) was approved by the Company’s Board of Directors and shareholders on July 28, 2014 and became effective immediately prior to the initial public offering on August 7, 2014. A total of 1,273,838 shares of common stock were reserved for issuance under the 2014 Plan, which permits the grant of incentive stock options, within the meaning of Section 422 of the IRS Code, to the Company’s employees, and the grant of non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares and other forms of equity-based awards to the Company’s employees, directors, consultants and independent contractors. The 2014 Plan is administered by the Compensation Committee of the Board of Directors, who may select which eligible participants receive awards, the types of awards to be granted, the purchase price, if any, to be paid for shares covered by the awards and the vesting, forfeiture, cancellation and other terms and conditions of the awards. During the period from December 29, 2017 through January 23, 2018, the Compensation Committee restructured performance options under the 2010 Option Plan in order to more appropriately align the incentives of the grantees with the success of the Company. As a part of this restructuring, 256,242 outstanding performance options under the 2010 Option Plan were vested and 586,119 outstanding performance options under the 2010 Option Plan were cancelled and new grants of time-based and performance based restricted stock units or "RSUs" were granted under the 2014 Plan. As of March 30, 2018 , 3,393 shares were available for future grant under the 2014 Plan. On April 3, 2018, our Board approved an amendment to the 2014 Plan and at the annual meeting of shareholders held May 23, 2018 our shareholders approved the amendment to the 2014 Plan, to increase the number of shares reserved for issuance under the 2014 Plan by 650,000 shares. Stock Options . At June 30, 2018 and December 31, 2017 there were 403,503 and 428,168 time based options outstanding under the 2014 Plan, respectively. Restricted Stock Units . In connection with the initial public offering, 275,000 restricted stock units were granted under the 2014 Plan. At June 30, 2018 , there were 502,181 time based restricted stock units and 207,859 performance based restricted stock units outstanding under the 2014 Plan. At December 31, 2017 , there were 322,875 time based restricted stock units outstanding under the 2014 Plan. The Company has two additional stock options plans, both of which are frozen to further issuance. The Green Bancorp, Inc. 2010 Stock Option Plan (the “2010 Option Plan”), which was approved by the Company’s Board of Directors on June 30, 2010, permitted the grant of up to 2,239,906 options. The non-qualified stock options granted were in the form of time-based options and performance options and may have been granted to a director, officer or employee of the Company. Time-based options under the 2010 Option Plan vest over a period of four years and expire on the tenth anniversary of the date of the grant. Performance options under the 2010 Option Plan vest upon the occurrence of a liquidity event, with the vested amounts determined based on the achievement of specified performance and market metrics. The 2010 Option Plan was frozen to further issuance upon approval of the 2014 Omnibus Plan. At June 30, 2018 there were 433,094 time based options, 237,999 performance options and 305,694 super-performance options outstanding under the 2010 Option Plan. At December 31, 2017 there were 367,213 time based options, 992,864 performance options and 308,054 super-performance options outstanding under the 2010 Option Plan. The Green Bancorp, Inc. 2006 Stock Option Plan (the “2006 Option Plan”), which was approved by the shareholders of the Company on June 21, 2006, permitted the grant of up to 450,000 options. The options granted may have been in the form of nonqualified stock options, which may have been granted to a director, officer or employee of the Company, or incentive stock options, which may have been granted only to officers of the Company. Awards under the 2006 Option Plan vest over a four -year period, which began on the first anniversary of the grant date, and must be exercised within 10 years from the grant date. The 2006 Option Plan was frozen to further issuance upon approval of the 2010 Option Plan. At June 30, 2018 and December 31, 2017 , there were 27,500 and 87,500 options outstanding under the 2006 Option Plan, respectively. For the three months ended June 30, 2018 and 2017 , $451 thousand and $159 thousand of stock based compensation expense was recorded for the stock options, respectively, and $893 thousand and $296 thousand for the six months ended June 30, 2018 and 2017 , respectively. Total restricted stock units compensation expense was $753 thousand and $196 thousand for the three months ended June 30, 2018 and 2017 , respectively, and $1.5 million and $406 thousand for the six months ended June 30, 2018 and 2017 , respectively. Stock Appreciation Rights Plan — On May 18, 2007, the Company’s Board of Directors adopted the Green Bancorp Stock Appreciation Rights Plan (the “SAR Plan”). The SAR Plan provided for the issuance of up to 200,000 units to plan participants at an exercise price of no less than the fair market value of the common stock of the Company at the time of grant. Units are redeemable by SAR Plan participants under certain circumstances whereby the participant will be paid the excess, if any, of the market value of the Company’s common stock at the time of exercise over the exercise price. The SAR Plan provides for a 10 -year maximum term for units issued, vesting and exercisability limitations and accelerated vesting and deemed exercise in the event of a change of control. The SAR Plan was frozen to further issuance upon approval of the 2014 Omnibus Plan. As of June 30, 2018 and December 31, 2017 , there were 41,500 and 63,000 units outstanding under the SAR Plan, respectively. For the three and six months ended June 30, 2018 , a $16 thousand reversal and $111 thousand of stock based compensation expense to reflect the fair value of the SARs was recorded, respectively. For the three and six months ended June 30, 2017 , $169 thousand and $357 thousand of stock based compensation expense to reflect the fair value of the SARs was recorded. Benefit Plan — The Company sponsors a 401(k) plan (the “401k Plan”), which is a defined contribution plan available to substantially all employees. Participants in the 401k Plan may make salary deferral contributions up to the amount allowed by law. The Company makes safe harbor matching contributions to the 401k Plan equal to 100% of the participant’s elective contribution for the plan year up to a maximum of 6% of the participant’s salary. The Company contributions are fully vested at the date of contribution. The total of Company contributions for the three months ended June 30, 2018 and 2017 , were $386 thousand and $348 thousand , respectively, and for the six months ended June 30, 2018 and 2017 , were $759 thousand and $704 thousand , respectively. |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES The following table summarizes the Company’s contractual obligations and other commitments to make future payments as of the date indicated (other than securities sold under agreements to repurchase). The Company’s future cash payments associated with its contractual obligations pursuant to its certificates and other time deposits, FHLB advances, subordinated debentures and subordinated notes and operating leases, as of the date indicated are as follows: June 30, 2018 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Certificates and other time deposits $ 1,001,668 $ 274,123 $ 44,251 $ — $ 1,320,042 Federal Home Loan Bank advances 365,502 50,874 — — 416,376 Subordinated debentures and subordinated notes 4,019 3,884 10,077 82,560 100,540 Operating leases 1,690 2,587 1,781 2,493 8,551 Total $ 1,372,879 $ 331,468 $ 56,109 $ 85,053 $ 1,845,509 Payments for the FHLB advances include interest of $4.4 million that will be paid in future years. Payments for subordinated debentures and subordinated notes include interest of $43.4 million that will be paid in future years. The future interest payments were calculated using the current rate in effect at June 30, 2018 . Payments related to leases are based on actual payments specified in underlying contracts. Leases — A summary as of June 30, 2018 , of the Company’s noncancelable future operating lease commitments (in thousands): 2018 $ 877 2019 1,610 2020 1,237 2021 1,099 2022 817 Thereafter 2,911 Total $ 8,551 The Company leases certain office facilities and equipment under operating leases. Rent expense under all noncancelable operating lease obligations, net of income from noncancelable subleases aggregated, was approximately $594 thousand and $578 thousand for the three months ended June 30, 2018 and 2017 , respectively, and $1.2 million for both the six months ended June 30, 2018 and 2017 , respectively. Litigation — The Company from time to time is involved in routine litigation arising from the normal course of business. Management does not believe that there are any pending or threatened proceedings against the Company which, upon resolution, would have a material effect on the consolidated financial statements. Financial Instruments with Off-Balance Sheet Risk — In the normal course of business, the Company is a party to various financial instruments with off-balance sheet risk to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. 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 or notional amount of these instruments. The Company uses the same credit policies in making these commitments and conditional obligations as it does for on-balance sheet instruments. The following is a summary of the various financial instruments outstanding as of the date set forth: June 30, 2018 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Commitments to extend credit $ 325,665 $ 190,944 $ 85,515 $ 87,085 $ 689,209 Standby and commercial letters of credit 9,612 314 100 640 10,666 Total $ 335,277 $ 191,258 $ 85,615 $ 87,725 $ 699,875 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if considered necessary by the Company, upon extension of credit, is based on management’s credit evaluation of the customer. Standby and commercial letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and marketable securities. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS In order to accommodate the borrowing needs of certain commercial customers, the Company has entered into interest rate swap or cap agreements with those customers. These interest rate derivative contracts effectively allow our customers to convert a variable rate loan to a fixed rate. In order to offset the exposure and manage interest rate risk, at the time an agreement was entered into with a customer, the Company entered into an interest rate swap or cap with a correspondent bank counterparty with offsetting terms. These derivative instruments are not designated as accounting hedges and changes in the net fair value are recognized in noninterest income or expense. Because we act as an intermediary for our customers, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on our results of operations. The fair value amounts are included in other assets and other liabilities. The following is a summary of the interest rate swaps outstanding as of the dates set forth: June 30, 2018 Notional Amount Fixed Rate Floating Rate Maturity Fair Value (Dollars in thousands) Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 159,205 4.38 - 6.94% LIBOR 1 month + Wtd. Avg. $ 2,515 Interest rate caps and collars $ 37,030 4.55 - 6.00% LIBOR 1 month + Wtd. Avg. $ 185 Correspondent interest rate swap: Interest rate swaps - receive fixed/pay floating $ 159,205 4.38 - 6.94% LIBOR 1 month + 3.00% - 4.25% Wtd. Avg. $ (2,564 ) Interest rate caps and collars $ 37,030 4.55 - 6.00% LIBOR 1 month + Wtd. Avg. $ (185 ) December 31, 2017 Notional Amount Fixed Rate Floating Rate Maturity Fair Value (Dollars in thousands) Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 173,304 2.19 - 5.72% LIBOR 1 month + 0% - 4.25% Wtd. Avg. $ 880 Interest rate caps and collars $ 37,466 4.55 - 6.00% LIBOR 1 month + 3% - 3.75% Wtd. Avg. $ 75 Correspondent interest rate swap: Interest rate swaps - receive fixed/pay floating $ 173,304 2.19 - 5.72% LIBOR 1 month + 0% - 4.25% Wtd. Avg. $ (901 ) Interest rate caps and collars $ 37,466 4.55 - 6.00% LIBOR 1 month + 3% - 3.75% Wtd. Avg. $ (75 ) The estimated fair values of non-hedging derivative instruments are reflected within Company’s consolidated balance sheet (included in other assets and other liabilities) on a net basis when a right of offset exits, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. The notional amounts and estimated fair values of the non-hedging derivative instruments by classification as the dates set forth were as follows: June 30, 2018 December 31, 2017 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Fair Value Liability Derivative (Dollars in thousands) Non-hedging interest rate derivatives: Correspondent counterparty: Interest rate swaps $ 159,205 $ 2,757 $ 242 $ 173,304 $ 1,326 $ 448 Interest rate caps and collars 37,030 185 — 37,466 75 — Customer counterparty: Interest rate swaps 159,205 188 2,752 173,304 423 1,325 Interest rate caps and collars 37,030 — 185 37,466 — 75 Gross derivatives 3,130 3,179 1,824 1,848 Offsetting derivatives assets/liabilities (122 ) (122 ) (369 ) (369 ) Net derivatives included in the consolidated balance sheets $ 3,008 $ 3,057 $ 1,455 $ 1,479 |
REGULATORY MATTERS
REGULATORY MATTERS | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS Capital Requirements — The Company is subject to various regulatory capital requirements administered by federal banking agencies. Any institution that fails to meet its minimum capital requirements is subject to actions by regulators that could have a direct material effect on its financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines based on the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amount and classification under the regulatory framework for prompt corrective action are also subject to qualitative judgments by the regulators. In July 2013, the Federal Reserve published final rules for the adoption of the Basel III regulatory capital framework (the "Basel III Capital Rules"). The Basel III Capital Rules, among other things, (i) introduced a new capital measure called "Common Equity Tier 1" ("CET 1"), (ii) specify that Tier 1 capital consist of CET 1 and "Additional Tier 1 Capital" instruments meeting specified requirements, (iii) define CET 1 narrowly by requiring that most deductions/adjustments to regulatory capital measures be made to CET 1 and not to the other components of capital and (iv) expand the scope of the deductions/adjustments as compared to existing regulations. The Basel III Capital Rules became effective for us on January 1, 2015 with certain transition provisions to be fully phased in by January 1, 2019. Beginning on January 1, 2016, the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019. The required phase-in capital conservation buffer during 2018 is 1.875% . The capital conservation buffer, composed entirely of CET 1, is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of June 30, 2018 and December 31, 2017 . Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such changes could result in reducing one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material effect on condition and results of operations. To meet the capital adequacy requirements, the Company and the Bank must maintain minimum capital amounts and ratios as defined in the regulations. Management believes, as of June 30, 2018 and December 31, 2017 , that the Company and the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the regulatory banking agencies categorized Green Bank as “well capitalized” under the regulatory capital framework for prompt corrective action and there have been no events since that notification that management believes have changed the Bank’s category. The Company’s consolidated capital ratios and the Bank’s capital ratios as of the dates set forth are presented in the following table: June 30, 2018 Actual For Capital Adequacy Purposes To be Categorized as "Well Capitalized" under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) The Company (1) : Total capital (to risk weighted assets) $ 487,002 13.2 % $ 295,174 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 417,047 11.3 221,380 6.0 N/A N/A Common equity tier 1 capital 403,475 10.9 166,035 4.5 N/A N/A Tier I capital (to average assets) 417,047 10.0 167,184 4.0 N/A N/A The Bank (2) : Total capital (to risk weighted assets) $ 477,452 13.0 % $ 294,851 8.0 % $ 368,564 10.0 % Tier 1 capital (to risk weighted assets) 441,279 12.0 221,138 6.0 294,851 8.0 Common equity tier 1 capital 441,279 12.0 165,854 4.5 239,566 6.5 Tier I capital (to average assets) 441,279 10.6 167,123 4.0 208,904 5.0 December 31, 2017 Actual For Capital Adequacy Purposes To be Categorized as "Well Capitalized" under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) The Company (1) : Total capital (to risk weighted assets) $ 455,754 12.7 % $ 287,840 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 390,690 10.9 215,880 6.0 N/A N/A Common equity tier 1 capital 377,328 10.5 161,910 4.5 N/A N/A Tier I capital (to average assets) 390,690 9.5 164,632 4.0 N/A N/A The Bank (2) : Total capital (to risk weighted assets) $ 444,198 12.4 % $ 286,648 8.0 % $ 358,310 10.0 % Tier 1 capital (to risk weighted assets) 415,542 11.6 214,986 6.0 286,648 8.0 Common equity tier 1 capital 415,542 11.6 161,239 4.5 232,901 6.5 Tier I capital (to average assets) 415,542 10.1 164,390 4.0 205,487 5.0 (1) The Federal Reserve may require the Company to maintain capital ratios above the required minimums. (2) The FDIC or the Office of the Comptroller of the Currency (the “OCC”) may require the Bank to maintain capital ratios above the required minimums. Dividend Restrictions — Dividends paid by the Bank are subject to certain restrictions imposed by regulatory agencies. The Basel III Capital Rules further limit the amount of dividends that may be paid by our bank. A dividend of $6.2 million was paid by the Bank to Green Bancorp during the quarter ended June 30, 2018 . A dividend of $1.0 million was paid by the Bank to Green Bancorp during the year ended December 31, 2017 . The Company is regarded as a legal entity separate and distinct from the Bank. The principal source of the Company’s revenues is dividends received from the Bank. Federal law currently imposes limitations upon certain capital distributions by national banks, such as certain cash dividends, payments to repurchase or otherwise acquire its shares, payments to shareholders of another institution in a cash‑out merger and other distributions charged against capital. The Federal Reserve and the OCC regulate all capital distributions by the Bank directly or indirectly to the Company, including dividend payments. For example, under applicable regulations, the Bank must file an application for OCC approval of a capital distribution if the total capital distributions for the applicable calendar year exceed the sum of the Bank’s net income for that year to date plus the Bank’s retained net income for the preceding two years. Additionally, the Bank may not pay dividends to the Company if, after paying those dividends, it would fail to meet the required minimum levels under risk‑based capital guidelines and the minimum leverage and tangible capital ratio requirements, or in the event the OCC notified the Bank that it was in need of more than normal supervision. Under the Federal Deposit Insurance Act, an insured depository institution such as the Bank is prohibited from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become “undercapitalized.” Payment of dividends by the Bank also may be restricted at any time at the discretion of the appropriate regulator if it deems the payment to constitute an unsafe and unsound banking practice. In addition, the Bank may become subject to supervisory limits on its ability to declare or pay a dividend or reduce its capital unless certain conditions are satisfied. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820 applies to reported balances that are required or permitted to be measured at fair value under an existing accounting pronouncement. ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy. The fair value hierarchy consists of three levels of inputs that may be used to measure fair value as follows: Level 1 — Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 1 assets and liabilities include debt and equity securities that are traded in an active exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 — Inputs other than those quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 2 assets and liabilities include available-for-sale securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. Available-for-sale securities are valued using observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, prepayment speeds, credit information, and the bond’s terms and conditions, among other things. Government guaranteed loans held-for-sale, which are guaranteed by the Small Business Administration ("SBA"), are valued based on observable market data and pricing. Derivative valuations utilize certain Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. The significance of the impact of these credit valuation adjustments on the overall valuation of derivative positions are not significant to the overall valuation and result in all derivative valuations being classified in Level 2 of the fair value hierarchy. Level 3 — Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. This category includes loans where independent pricing information was not able to be obtained. The tables below present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates set forth aggregated by the level in the fair value hierarchy within which those measurements fall. June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets: Available-for-sale securities $ — $ 635,333 $ — $ 635,333 Loans held for sale — 4,992 — 4,992 Correspondent interest rate swaps — 2,757 — 2,757 Customer interest rate swaps — 188 — 188 Correspondent interest rate caps and collars — 185 — 185 Financial Liabilities: Correspondent interest rate swaps $ — $ 242 $ — $ 242 Customer interest rate swaps — 2,752 — 2,752 Customer interest rate caps and collars — 185 — 185 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets: Available-for-sale securities $ — $ 705,539 $ — $ 705,539 Correspondent interest rate swaps — 1,326 — 1,326 Customer interest rate swaps — 423 — 423 Correspondent interest rate caps — 75 — 75 Financial Liabilities: Correspondent interest rate swaps $ — $ 448 $ — $ 448 Customer interest rate swaps — 1,325 — 1,325 Customer interest rate caps — 75 — 75 Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets measured on a nonrecurring basis include impaired loans, real estate acquired by foreclosure and other repossessed assets. A loan is defined as impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, according to the contractual terms of the loan agreement. The allowance for loan losses related to impaired loans is determined based on the difference between the carrying value of the impaired loan and its fair value. The fair value of impaired loans is determined based on the fair value of the collateral if repayment is expected solely from the collateral. Fair value of the loan’s collateral is determined by appraisals and third party estimates for real estate collateral and by appraisals or independent valuations for non-real estate collateral such as inventory, accounts receivable, equipment or other business assets. The fair value of real estate acquired by foreclosure is measured using appraisals and third party estimates. These values may be adjusted based on current information available to management, therefore the values are considered Level 3 inputs within the fair value hierarchy. The following tables present the assets that were subject to fair value adjustments during the periods indicated, which were still on the balance sheet at the end of the reporting periods: June 30, 2018 Level 3 Total Losses for the Six Months Ended June 30, 2018 (Dollars in thousands) Assets Measured on a Nonrecurring Basis: Impaired loans $ 28,535 $ 28,535 $ 8,598 Other real estate owned — — — June 30, 2017 Level 3 Total Losses for the (Dollars in thousands) Assets Measured on a Nonrecurring Basis: Impaired loans $ 26,265 $ 26,265 $ 7,152 Other real estate owned — — — The following methods and assumptions were used to estimate the fair value of cash and other financial instruments, other than those described above: Cash and Short-Term Investments — The carrying amount of these short term investments is a reasonable estimate of fair value. Securities — The fair value of securities are obtained from an independent pricing service. Securities are valued based on quoted prices in an active market when available. These securities are classified in Level 1 of the valuation hierarchy. If quoted market prices are not available for the specific security, then fair values are estimated and classified as Level 2 of the valuation hierarchy. 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. Loans Held for Sale — The fair value of government guaranteed loans held-for-sale is based on commitments from investors or prevailing market prices. Loans Held for Investment — The calculation of fair value of loans reported for the 2018 reporting periods has been revised to be in accordance with ASU 2016-01. The discounted cash flow methodology considers internal and market-based information, including interest rates, prepayment speeds and discount rates. The fair value of loans as of December 31, 2017 was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Real Estate Acquired by Foreclosure — Real estate acquired by foreclosure is adjusted to fair value less estimated costs to sell at the time of foreclosure. Subsequently, these assets are carried at the lower of carrying value or fair value less estimated costs to sell. Fair value is generally based upon market prices or appraised values of the property, which may be discounted based on internal criteria and accordingly, the Company classifies real estate acquired by foreclosure as Level 3. Deposit Liabilities — The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities in the peer market. Other Borrowed Funds — The carrying amount of securities sold under agreements to repurchase is a reasonable estimate of fair value because these borrowings reprice at market rates generally daily. The fair value of long term FHLB advances is estimated using the rates currently offered for advances of similar remaining maturities. Subordinated debentures and subordinated notes —The fair value of the subordinated debentures and subordinated notes was calculated using the quoted market prices, if available. If quoted market prices are not available, fair value is estimated using quoted market prices for similar subordinated debentures. Subordinated debentures and subordinated notes fair value measurements utilize Level 2 inputs. Off-Balance Sheet Financial Instruments — The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of guarantees and letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. These amounts were not significant at the reporting dates. The fair value of interest rate swaps is derived from pricing models based on past, present and projected future market conditions, quoted market prices of instruments with similar characteristics or discounted cash flows, classified in Level 2 of the fair value hierarchy. The estimated fair values of the Company’s financial instruments as of the dates indicated are as follows: June 30, 2018 Carrying Value Level 1 Level 2 Level 3 Fair Value (Dollars in thousands) Financial Assets: Cash and short term investments $ 231,251 $ 231,251 $ — $ — $ 231,251 Available-for-sale securities 635,333 — 635,333 — 635,333 Held-to-maturity securities 64,530 — 63,993 — 63,993 Other securities 42,962 42,962 — — 42,962 Loans held for sale 4,992 — 4,992 — 4,992 Loans held for investment, net of allowance 3,187,022 — — 3,201,649 3,201,649 Real estate acquired by foreclosure 802 — — 802 802 Total $ 4,166,892 $ 274,213 $ 704,318 $ 3,202,451 $ 4,180,982 Financial Liabilities: Deposits $ 3,426,050 $ — $ 3,429,588 $ — $ 3,429,588 Securities sold under agreements to repurchase 4,141 — 4,141 — 4,141 Other borrowed funds 412,000 — 412,026 — 412,026 Subordinated debentures and subordinated notes 48,019 — 46,170 — 46,170 Total $ 3,890,210 $ — $ 3,891,925 $ — $ 3,891,925 December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Fair Value (Dollars in thousands) Financial Assets: Cash and short term investments $ 140,681 $ 140,681 $ — $ — $ 140,681 Available-for-sale securities 705,539 — 705,539 — 705,539 Held-to-maturity securities 13,275 — 13,146 — 13,146 Other securities 26,617 26,617 — — 26,617 Loans held for sale 7,156 — 7,156 — 7,156 Loans held for investment 3,190,485 — — 3,206,145 3,206,145 Real estate acquired by foreclosure 802 — — 802 802 Total $ 4,084,555 $ 167,298 $ 725,841 $ 3,206,947 $ 4,100,086 Financial Liabilities: Deposits $ 3,397,143 $ — $ 3,392,144 $ — $ 3,392,144 Securities sold under agreements to repurchase 5,173 — 5,173 — 5,173 Other borrowed funds 325,000 — 324,873 — 324,873 Subordinated debentures and subordinated notes 47,737 — 45,356 — 45,356 Total $ 3,775,053 $ — $ 3,767,546 $ — $ 3,767,546 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Declaration of Dividends — On July 23, 2018 , the Company's Board of Directors declared a quarterly cash dividend of $0.10 per share of its outstanding common stock, payable August 23, 2018 , to shareholders of record as of August 9, 2018 . Pending Merger with Veritex Holdings, Inc. — On July 23, 2018, the Company, Veritex, the parent holding company of Veritex Bank, and Merger Sub entered into an Agreement and Plan of Reorganization (the “Merger Agreement”), pursuant to which, subject to the terms and conditions of the Merger Agreement, among other things, (i) Merger Sub will merge with and into the Company (the “Merger”), with the Company continuing as the surviving corporation in the Merger and a wholly owned subsidiary of Veritex, (ii) immediately thereafter, the Company (as the surviving corporation in the Merger) will merge with and into Veritex (together with the Merger, the “Holdco Mergers”), with Veritex being the surviving corporation and (iii) immediately thereafter, Green Bank will merge with and into Veritex Bank, with Veritex Bank continuing as the surviving bank (together with the Holdco Mergers, the “Merger Transactions”). Upon the consummation of the Merger, each share of Company common stock will be converted into the right to receive 0.79 shares of Veritex Common Stock. ***** |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The interim condensed consolidated financial statements include the accounts of Green Bancorp, Inc. (“Green Bancorp”), together with Green Bank, N.A., its subsidiary bank, (the “Company”). All intercompany transactions and balances have been eliminated. |
Basis of Presentation | The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial information. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the financial statements and the notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the year ending December 31, 2018 or any other period. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. The calculation of the allowance for loan losses, the valuation of goodwill and available for sale securities, acquired assets and liabilities and the calculation of stock based compensation are estimates particularly susceptible to significant change in the near term. Actual results could differ from those estimates. |
Earnings Per Common Share | Basic earnings per common share is computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. In the event of a net loss, the outstanding stock options are excluded from the diluted earnings per common share calculation due to their anti-dilutive effect and the diluted net loss per common share would equal the basic net loss per common share. |
Recent Accounting Standards | Accounting Standards Updates (“ASU”) FASB ASU 2018-03 - "Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)" The amendments in this ASU provide clarification on certain aspects related to the guidance issued in ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The areas for correction or improvement include (1) equity securities without a readily determinable fair value - discontinuation; (2) equity securities without a readily determinable fair value - adjustments; (3) forward contracts and purchased options; (4) presentation requirements for certain fair value option liabilities; (5) fair value option liabilities denominated in a foreign currency; and (6) transition guidance for equity securities without a readily determinable fair value.This ASU is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption is permitted. The adoption of this guidance is not expected to be material to the consolidated financial statements. FASB ASU No. 2018-02 - “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments of ASU 2018-02 allow reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act, which was signed into law on December 22, 2017. The amendments also require certain disclosures about stranded tax effects. This update will be effective for all annual and interim periods beginning January 1, 2019, with early adoption permitted, and the guidance should be applied either in the period of adoption or retrospectively to each period impacted by the change in the U.S. federal corporate income tax rate in the Tax Cuts and Job Acts is recognized. The Company early adopted the new guidance in the first quarter of 2018, which resulted in a cumulative effect adjustment to the consolidated balance sheet as of January 1, 2018 to reclass approximately $1.4 million of tax expense from accumulated other comprehensive loss to retained earnings. This reclassification is presented in the condensed consolidated statement of changes in shareholders equity for the period ended June 30, 2018 . FASB ASU No. 2017-12 — “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” Issued in August 2017, the ASU 2017-12 amends the hedge accounting recognition and presentation requirements in ASC 815. The amendments objectives are to (1) improve the transparency and understandability of information conveyed to financial statement users about an entity’s risk management activities by better aligning the entity’s financial reporting for hedging relationships with those risk management activities and (2) reduce the complexity of and to simplify the application of hedge accounting by preparers. For public entities, ASU 2017-12 is effective for interim and annual periods beginning after December 15, 2018; however, early adoption is permitted. The Company adopted the ASU in the third quarter of 2017 and reclassified $15.9 million of securities from held-to-maturity to available-for-sale classification pursuant to the transition election. The amount of net unrealized loss at the date of transfer was recorded in accumulated other comprehensive income. The early adoption did not have a material impact on the Company’s consolidated financial condition, results of operations or cash flows. FASB ASU No. 2017-09 — “Compensation-Stock Compensation (Topic 718) - Scope of Modification Accounting.” Issued in May 2017, ASU 2017-09 clarifies when changes to terms or conditions of a share-based payment award must be accounted for as a modification. Under the new guidance, an entity will not apply modification accounting to a share-based payment award if all of the following are the same immediately before and after the change: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as either an equity or liability instrument. ASU 2017-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The guidance requires companies to apply the requirements prospectively to awards modified on or after the adoption date. ASU 2017-09 did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2017-08 — “Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” Issued in March 2017, ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium. Specifically, the amendment requires the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the potential impact of ASU 2017-08 on the Company’s consolidated financial statements. FASB ASU No. 2017-04 — “Intangibles—Goodwill and Other (Topic 350).” ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test, which required computing the implied fair value of goodwill. Under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 will be effective for the Company on January 1, 2020 and is not expected to have a significant impact on the Company’s consolidated financial statements. FASB ASU No. 2017-01 — “Business Combinations (Topic 805).” ASU 2017-01 is intended to clarify or correct unintended applications of ASU 2014-09 “Revenue from Contract with Customers (Topic 606).” ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. Additionally, the amendments in this update provide a more robust framework to assist entities in evaluating whether a set of assets and activities constitutes a business. Lastly, the amendments in this update narrow the definition of the term output so that the term is consistent with how outputs are described in Topic 606. ASU 2017-01 became effective for the Company on January 1, 2018 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-18 — “Statement of Cash Flows (Topic 230) – Restricted Cash.” ASU 2016-18 requires the Statement of Cash Flows to explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, restricted cash or cash equivalents should be included with cash and cash equivalents when recording the beginning-of-period and end-of-period total amounts on the Statement of Cash Flows. ASU 2016-18 became effective for the Company on January 1, 2018 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-15 — "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. ASU 2016-15 provides classification guidance on certain cash receipts and cash payments, including, but not limited to, debt prepayment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of bank-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 became effective for the Company on January 1, 2018, and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-13 — "Financial Instruments - Credit Losses (Topic 326)" ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016-13 will be effective for the Company on January 1, 2020. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the potential impact of ASU 2016-13 on the Company’s consolidated financial statements. FASB ASU No. 2016-09 — “Compensation - Stock Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 was issued as part of the FASB’s simplification initiative and affects all entities that issue share-based payment awards to their employees. This ASU covers accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-09 was effective for the Company beginning January 1, 2017 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2016-02 — “ Leases (Topic 842).” In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 to supersede nearly all existing lease guidance under GAAP. The guidance would require a lessee to record a right-to-use asset and liability representing the obligation to make lease payments for long-term leases. ASU 2016-02 is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018 and must be adopted using a modified retrospective approach. The Company is currently evaluating the impact of its pending adoption of ASU 2016-02 on its consolidated financial statements. FASB ASU No. 2016-01 — “ Financial Instruments─Overall (Subtopic 825-10)– Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01 addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 (i) requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (iv) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (v) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (vi) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (vii) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this update affect all entities that hold financial assets or owe financial liabilities. ASU 2016-01 became effective for the Company beginning January 1, 2018, and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2015-17 — “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” In November 2015, the FASB issued ASU 2015-17, as part of its simplification initiative. The ASU requires entities to present deferred tax assets (“DTAs”) and deferred tax liabilities (“DTLs”) as noncurrent in a classified balance sheet. It thus simplifies the current guidance, which requires entities to separately present DTAs and DTLs as current or noncurrent in a classified balance sheet. Netting of DTAs and DTLs by tax jurisdiction is still required under the new guidance. ASU 2015-17 was effective for the Company beginning January 1, 2017 and did not have a material impact on the Company’s consolidated financial statements. FASB ASU No. 2014-09 — “ Revenue from Contracts with Customers (Topic 606)” . ASU 2014-09 is a comprehensive new revenue recognition standard that superseded nearly all existing revenue recognition guidance under GAAP and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for those goods and services. The ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 establishes a five-step model which entities must follow to recognize revenue and removes inconsistencies and weaknesses in existing guidance. The Company’s primary sources of revenue are comprised of net interest income on financial assets and liabilities, which are not within the scope of ASU 2014-09. The Company adopted ASU 2014-09, effective January 1, 2018, and had no material effect on how we recognize revenue or to our consolidated financial statements and disclosures. See below for additional information related to revenue generated from contracts with customers. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: • Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or-transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Gains/losses on the sale of other real estate owned - generally recognized when the performance obligation is complete which is typically at delivery of control over the property to the buyer at the time of each real estate closing. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share amounts) Net income 16,421 12,898 25,783 20,110 Basic: Weighted average shares outstanding 37,274 $ 0.44 37,023 $ 0.35 37,219 $ 0.69 37,007 $ 0.54 Diluted: Add incremental shares for: Effect of dilutive securities - options 372 241 394 227 Total 37,646 $ 0.44 37,264 $ 0.35 37,613 $ 0.69 37,234 $ 0.54 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The amortized cost and fair value of securities as of the dates set forth were as follows: June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 99,125 $ 74 $ (1,982 ) $ 97,217 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 227,164 — (7,095 ) 220,069 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,823 — (2,823 ) 63,000 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 211,291 — (7,035 ) 204,256 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 35,990 — (1,341 ) 34,649 Corporate debt securities 15,913 53 (61 ) 15,905 Obligations of municipal subdivisions 236 1 — 237 Total $ 655,542 $ 128 $ (20,337 ) $ 635,333 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 11,352 $ 25 $ (389 ) $ 10,988 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 2,488 — (90 ) 2,398 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 44,499 60 (138 ) 44,421 Obligations of municipal subdivisions 6,191 — (5 ) 6,186 Total $ 64,530 $ 85 $ (622 ) $ 63,993 Securities with fair value of $50.0 million were transferred from available-for-sale to held-to-maturity classification during the quarter ended March 31, 2018 . The related unrealized loss at the date of transfer of $2.2 million remained in accumulated other comprehensive income and will be amortized over the remaining term of the securities. The net unamortized, unrealized loss on the transferred securities included in accumulated other comprehensive income as of June 30, 2018 totaled $2.1 million . December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 104,111 $ 129 $ (948 ) $ 103,292 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 250,580 297 (1,701 ) 249,176 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,986 — (500 ) 65,486 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 234,881 — (6,434 ) 228,447 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 36,151 — (472 ) 35,679 Corporate debt securities 5,789 5 — 5,794 Obligations of municipal subdivisions 6,672 — (45 ) 6,627 CRA qualified investment fund 11,337 — (299 ) 11,038 Total $ 715,507 $ 431 $ (10,399 ) $ 705,539 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 10,841 $ 61 $ (170 ) $ 10,732 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 2,434 — (20 ) 2,414 Total $ 13,275 $ 61 $ (190 ) $ 13,146 |
Schedule of contractual maturities of securities | The following table sets forth, as of the date indicated, contractual maturities of securities: June 30, 2018 Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ — $ — $ — $ — Due after one year through five years 4,913 4,871 — — Due after five years through ten years 11,236 11,271 — — Due after ten years — — 6,191 6,186 16,149 16,142 6,191 6,186 Mortgage-backed securities and collateralized mortgage obligations 540,268 521,974 58,339 57,807 SBA guaranteed securities 99,125 97,217 — — Total $ 655,542 $ 635,333 $ 64,530 $ 63,993 |
Schedule of investments in a continuous unrealized loss position | Securities with unrealized losses segregated by length of continuous unrealized loss position as of the dates set forth were as follows: June 30, 2018 Less than 12 Months 12 Months or More Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 89,688 $ (1,892 ) $ 87,796 $ 4,979 $ (90 ) $ 4,889 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 227,164 (7,095 ) 220,069 — — — Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 52,887 (2,340 ) 50,547 12,936 (483 ) 12,453 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 72,794 (1,481 ) 71,313 138,497 (5,554 ) 132,943 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 35,990 (1,341 ) 34,649 — — — Corporate debt securities 8,913 (61 ) 8,852 — — — Total $ 487,436 $ (14,210 ) $ 473,226 $ 156,412 $ (6,127 ) $ 150,285 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 3,893 $ (78 ) $ 3,815 $ 6,017 $ (311 ) $ 5,706 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 2,488 (90 ) 2,398 — — — Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 42,531 (138 ) 42,393 — — — Municipal bonds 6,191 (5 ) 6,186 — — — Total $ 55,103 $ (311 ) $ 54,792 $ 6,017 $ (311 ) $ 5,706 December 31, 2017 Less than 12 Months 12 Months or More Amortized Cost Gross Unrealized Losses Fair Value Amortized Cost Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale: SBA guaranteed securities $ 76,603 $ (948 ) $ 75,655 $ — $ — $ — Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential 192,105 (1,608 ) 190,497 9,152 (93 ) 9,059 Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial 65,986 (500 ) 65,486 — — — Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 210,034 (6,183 ) 203,851 9,037 (251 ) 8,786 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial 36,151 (472 ) 35,679 — — — Obligations of municipal subdivisions 6,436 (45 ) 6,391 — — — CRA qualified investment fund — — — 11,337 (299 ) 11,038 Total $ 587,315 $ (9,756 ) $ 577,559 $ 29,526 $ (643 ) $ 28,883 Held-to-maturity: Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential $ 1,086 $ (9 ) $ 1,077 $ 6,265 $ (161 ) $ 6,104 Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential 2,434 (20 ) 2,414 — — — Total $ 3,520 $ (29 ) $ 3,491 $ 6,265 $ (161 ) $ 6,104 |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Loan portfolio classified by type and class | The loan portfolio classified by type and class as of the dates set forth were as follows: June 30, 2018 Originated Acquired Total (Dollars in thousands) Commercial & industrial $ 1,034,821 $ 35,599 $ 1,070,420 Mortgage warehouse 244,041 — 244,041 Real estate: Owner occupied commercial real estate 373,692 62,461 436,153 Commercial real estate 949,099 142,937 1,092,036 Construction, land & land development 105,926 24,607 130,533 Residential mortgage 158,531 76,661 235,192 Consumer and other 12,854 879 13,733 Total loans held for investment $ 2,878,964 $ 343,144 $ 3,222,108 Total loans held for sale $ 4,992 $ — $ 4,992 December 31, 2017 Originated Acquired Total (Dollars in thousands) Commercial & industrial $ 1,002,797 $ 63,469 $ 1,066,266 Mortgage warehouse 220,230 — 220,230 Real estate: Owner occupied commercial real estate 327,906 87,324 415,230 Commercial real estate 823,361 244,418 1,067,779 Construction, land & land development 136,998 27,954 164,952 Residential mortgage 149,021 89,559 238,580 Consumer and other 16,178 1,270 17,448 Total loans held for investment $ 2,676,491 $ 513,994 $ 3,190,485 Total loans held for sale $ 7,156 $ — $ 7,156 |
Loan maturities and rate sensitivity | Loan maturities and rate sensitivity of the loans held for investment, as of the date indicated, were as follows: June 30, 2018 Due in One Year or Less Due After One Year Through Five Years Due After Five Years Total (Dollars in thousands) Commercial & industrial $ 390,500 $ 620,518 $ 59,402 $ 1,070,420 Mortgage warehouse 126,702 117,339 — 244,041 Real estate: Owner occupied commercial real estate 20,561 169,800 245,792 436,153 Commercial real estate 164,160 669,033 258,843 1,092,036 Construction, land & land development 41,620 56,203 32,710 130,533 Residential mortgage 18,921 47,200 169,071 235,192 Consumer and Other 3,854 2,262 7,617 13,733 Total loans held for investment $ 766,318 $ 1,682,355 $ 773,435 $ 3,222,108 Fixed rate $ 141,480 $ 429,239 $ 103,806 $ 674,525 Adjustable rate (1) 624,838 1,253,116 669,629 2,547,583 Total loans held for investment $ 766,318 $ 1,682,355 $ 773,435 $ 3,222,108 (1) Includes all adjustable rate loans irrespective of the time period to next interest rate reset. |
Related party loans | An analysis of activity with respect to these related-party loans for the six months ended June 30, 2018 and the year ended December 31, 2017 was as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Beginning balance $ — $ 5,813 Advances — — Repayments — (5,813 ) Ending Balance $ — $ — |
Outstanding principal and investment in acquired loans | The outstanding principal balance and recorded investment in the total acquired loans from all completed acquisitions, as of the dates set forth, was as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Credit impaired acquired loans: Outstanding principal balance $ 11,378 $ 18,498 Recorded investment 10,717 15,965 Discount, net $ 661 $ 2,533 Other acquired loans: Outstanding principal balance 333,433 499,939 Deferred fees, net (40 ) (72 ) Recorded investment 332,427 498,029 Discount, net $ 966 $ 1,838 Total acquired loans: Outstanding principal balance 344,811 518,437 Deferred fees, net (40 ) (72 ) Recorded investment 343,144 513,994 Discount, net $ 1,627 $ 4,371 |
Changes in the accretable yield for credit impaired acquired loans | Changes in the accretable yield for credit impaired acquired loans for the periods indicated, were as follows: Six Months Ended June 30, 2018 2017 (Dollars in thousands) Balance at beginning of period $ 1,125 $ 2,544 Reclassifications from non-accretable discount 989 327 Accretion (1,687 ) (695 ) Balance at period end $ 427 $ 2,176 |
The age analysis of loans, segregated by class | The age analysis of loans, segregated by class, as of the dates set forth was as follows: June 30, 2018 Loans Past Due and Still Accruing 30 - 89 Days Past Due 90 Days or More Past Due Total Nonaccrual Purchased Credit Impaired Current Total Loans (Dollars in thousands) Originated Loans Commercial & industrial $ 4,396 $ — $ 4,396 $ 41,033 $ — $ 989,392 $ 1,034,821 Mortgage warehouse — — — — — 244,041 244,041 Real estate: Owner occupied commercial real estate — — — 5,225 — 368,467 373,692 Commercial real estate 14,800 — 14,800 175 — 934,124 949,099 Construction, land & land development — — — 107 — 105,819 105,926 Residential mortgage 968 59 1,027 3,859 — 153,645 158,531 Consumer and other 157 26 183 45 — 12,626 12,854 Total originated loans $ 20,321 $ 85 $ 20,406 $ 50,444 $ — $ 2,808,114 $ 2,878,964 Acquired Loans Commercial & industrial $ 4,310 $ 438 $ 4,748 $ 1,746 $ 1,730 $ 27,375 $ 35,599 Real estate: Owner occupied commercial real estate 1,837 — 1,837 1,727 3,394 55,503 62,461 Commercial real estate 8,290 268 8,558 105 3,591 130,683 142,937 Construction, land & land development — — — 700 — 23,907 24,607 Residential mortgage 1,144 97 1,241 104 2,002 73,314 76,661 Consumer and other — 19 19 3 — 857 879 Total acquired loans $ 15,581 $ 822 $ 16,403 $ 4,385 $ 10,717 $ 311,639 $ 343,144 Total loans held for investment $ 35,902 $ 907 $ 36,809 $ 54,829 $ 10,717 $ 3,119,753 $ 3,222,108 December 31, 2017 Loans Past Due and Still Accruing 30 - 89 Days Past Due 90 Days or More Past Due Total Nonaccrual Purchased Credit Impaired Current Total Loans (Dollars in thousands) Originated Loans Commercial & industrial $ 15,917 $ 242 $ 16,159 $ 45,413 $ — $ 941,225 $ 1,002,797 Mortgage warehouse — — — — — 220,230 220,230 Real estate: Owner occupied commercial real estate 1,109 — 1,109 — — 326,797 327,906 Commercial real estate 16,250 — 16,250 — — 807,111 823,361 Construction, land & land development 2,255 133 2,388 3,287 — 131,323 136,998 Residential mortgage 1,311 — 1,311 3,111 — 144,599 149,021 Consumer and other 127 — 127 49 — 16,002 16,178 Total originated loans $ 36,969 $ 375 $ 37,344 $ 51,860 $ — $ 2,587,287 $ 2,676,491 Acquired Loans Commercial & industrial $ — $ — $ — $ 1,901 $ 3,237 $ 58,331 $ 63,469 Real estate: Owner occupied commercial real estate 233 — 233 1,886 4,062 81,143 87,324 Commercial real estate 1,885 — 1,885 312 6,437 235,784 244,418 Construction, land & land development 204 — 204 714 — 27,036 27,954 Residential mortgage 804 — 804 454 2,229 86,072 89,559 Consumer and other — — — 211 — 1,059 1,270 Total acquired loans 3,126 — 3,126 5,478 15,965 489,425 513,994 Total loans held for investment $ 40,095 $ 375 $ 40,470 $ 57,338 $ 15,965 $ 3,076,712 $ 3,190,485 |
Information related to impaired, nonaccrual and restructured loans and accruing loans past due | The following is a summary of information related to impaired, nonaccrual and restructured loans and accruing loans past due 90 days or more as of the dates set forth: June 30, 2018 Originated Acquired Total (Dollars in thousands) Nonaccrual loans $ 49,543 $ 3,342 $ 52,885 Accruing loans past due 90 days or more 85 822 907 Restructured loans - nonaccrual 901 1,043 1,944 Restructured loans - accruing 8 3,047 3,055 Total nonperforming loans $ 50,537 $ 8,254 $ 58,791 December 31, 2017 Originated Acquired Total (Dollars in thousands) Nonaccrual loans $ 43,797 $ 4,095 $ 47,892 Accruing loans past due 90 days or more 375 — 375 Restructured loans - nonaccrual 8,063 1,383 9,446 Restructured loans - accruing 4,255 8,838 13,093 Total nonperforming loans $ 56,490 $ 14,316 $ 70,806 |
Schedule of financing receivables average recorded investment and interest income recognized | The following tables present, for the periods indicated, the average recorded investment in impaired loans and the approximate amount of interest recognized on impaired loans. Interest recognized includes interest accrued on restructured loans that have performed based on their restructured terms and interest collected on nonaccrual loans that were paid in full during the period. Three Months Ended June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Originated Loans Commercial & industrial $ 49,277 $ 55 $ 40,013 $ 3 Owner occupied commercial real estate 2,318 — — — Commercial real estate 2,186 — 1,993 — Construction, land & land development 2,432 — — — Residential mortgage 3,619 — 2,251 20 Consumer and other 47 — 124 1 Total originated loans $ 59,879 $ 55 $ 44,381 $ 24 Acquired Loans Commercial & industrial $ 8,956 $ 119 $ 19,949 $ 133 Owner occupied commercial real estate 1,733 — 8,141 — Commercial real estate 107 — 1,266 — Construction, land & land development 703 — 1,440 15 Residential mortgage 45 — 1,052 9 Consumer and other 207 — 216 — Total acquired loans $ 11,751 $ 119 $ 32,064 $ 157 Total $ 71,630 $ 174 $ 76,445 $ 181 Six Months Ended June 30, 2018 June 30, 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Originated Loans Commercial & industrial $ 50,893 $ 115 $ 38,924 $ 11 Owner occupied commercial real estate 1,159 — — — Commercial real estate 1,186 — 3,752 — Construction, land & land development 2,918 — — — Residential mortgage 3,358 — 2,455 26 Consumer and other 51 — 167 2 Total originated loans $ 59,565 $ 115 $ 45,298 $ 39 Acquired Loans Commercial & industrial $ 9,940 $ 242 $ 24,636 $ 272 Owner occupied commercial real estate 1,762 — 8,507 — Commercial real estate 111 3 1,619 — Construction, land & land development 707 — 1,268 15 Residential mortgage 176 — 1,244 9 Consumer and other 210 — 145 — Total acquired loans $ 12,906 $ 245 $ 37,419 $ 296 Total $ 72,471 $ 360 $ 82,717 $ 335 |
Impaired loans, individually evaluated for impairment | The following tables present additional information regarding impaired loans that were individually evaluated for impairment as of the dates indicated: June 30, 2018 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) Originated Loans With no related allowance recorded: Commercial & industrial $ 16,215 $ 16,423 $ — Owner occupied commercial real estate 1,731 1,738 Commercial real estate 175 175 — Construction, land & land development 107 108 — Residential mortgage 3,859 3,859 — Total with no related allowance recorded: $ 22,087 $ 22,303 $ — With an allowance recorded: Commercial & industrial $ 24,826 $ 24,889 $ 9,652 Owner occupied commercial real estate 3,494 3,494 531 Consumer and other 45 45 30 Total with an allowance recorded: $ 28,365 $ 28,428 $ 10,213 Total originated loans $ 50,452 $ 50,731 $ 10,213 Acquired Loans With no related allowance recorded: Commercial & industrial $ 4,594 $ 4,594 $ — Owner occupied commercial real estate 1,043 1,053 — Commercial real estate 105 105 — Construction, land & land development 700 702 — Residential mortgage 104 105 — Consumer and other 200 194 — Total with no related allowance recorded: $ 6,746 $ 6,753 $ — With an allowance recorded: Owner occupied commercial real estate $ 684 $ 699 $ 153 Consumer and other 2 3 2 Total with an allowance recorded: $ 686 $ 702 $ 155 Total acquired loans $ 7,432 $ 7,455 $ 155 Total: Commercial & industrial $ 45,635 $ 45,906 $ 9,652 Real estate 12,002 12,038 684 Consumer and other 247 242 32 Total $ 57,884 $ 58,186 $ 10,368 December 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) Originated Loans With no related allowance recorded: Commercial & industrial $ 32,794 $ 32,974 $ — Construction, land & land development 111 111 — Residential mortgage 3,111 3,111 — Consumer and other 12 12 — Total with no related allowance recorded: $ 36,028 $ 36,208 $ — With an allowance recorded: Commercial & industrial $ 16,862 $ 16,943 $ 5,409 Construction, land & land development 3,176 3,176 224 Consumer and other 49 49 30 Total with an allowance recorded: $ 20,087 $ 20,168 $ 5,663 Total originated loans $ 56,115 $ 56,376 $ 5,663 Acquired Loans With no related allowance recorded: Commercial & industrial $ 10,738 $ 10,738 $ — Owner occupied commercial real estate 1,886 1,910 — Commercial real estate 312 312 — Construction, land & land development 714 716 — Residential mortgage 454 455 — Consumer and other 208 202 — Total with no related allowance recorded: $ 14,312 $ 14,333 $ — With an allowance recorded: Consumer and other $ 4 $ 4 $ 4 Total with an allowance recorded: $ 4 $ 4 $ 4 Total acquired loans $ 14,316 $ 14,337 $ 4 Total: Commercial & Industrial $ 60,394 $ 60,655 $ 5,409 Real Estate 9,764 9,791 224 Consumer and other 273 267 34 Total $ 70,431 $ 70,713 $ 5,667 |
The credit risk profile of loans aggregated by class | The credit risk profile of loans aggregated by class and internally assigned risk grades as of the dates set forth were as follows: June 30, 2018 Grade 1 - 4 (Pass) Grade 5 (Watch) Grade 6 (Special Mention) Grade 7 (Substandard-Accrual) Grade 8 (Substandard-Nonaccrual) Grade 9 (Doubtful) PCI Total (Dollars in thousands) Originated Loans Commercial & Industrial $ 895,299 $ 65,009 $ 22,153 $ 11,327 $ 41,033 $ — $ — $ 1,034,821 Mortgage Warehouse 244,041 — — — — — — 244,041 Owner Occupied Commercial Real Estate 342,441 18,036 4,649 3,341 5,225 — — 373,692 Commercial Real Estate 799,637 77,763 23,652 47,872 175 — — 949,099 Construction & Land Development 94,902 3,686 1,457 5,774 107 — — 105,926 Residential Mortgage 153,588 14 59 1,011 3,859 — — 158,531 Other Consumer 12,783 — — 26 45 — — 12,854 Total originated loans $ 2,542,691 $ 164,508 $ 51,970 $ 69,351 $ 50,444 $ — $ — $ 2,878,964 Acquired Loans Commercial & Industrial $ 17,645 $ 6,596 $ 7,750 $ 132 $ 1,746 $ — $ 1,730 $ 35,599 Owner Occupied Commercial Real Estate 47,744 7,314 2,003 279 1,727 — 3,394 62,461 Commercial Real Estate 107,919 4,232 26,822 268 105 — 3,591 142,937 Construction & Land Development 11,401 11,951 — 555 700 — — 24,607 Residential Mortgage 73,597 202 197 559 104 — 2,002 76,661 Other Consumer 657 — 200 19 3 — — 879 Total acquired loans $ 258,963 $ 30,295 $ 36,972 $ 1,812 $ 4,385 $ — $ 10,717 $ 343,144 Total loans $ 2,801,654 $ 194,803 $ 88,942 $ 71,163 $ 54,829 $ — $ 10,717 $ 3,222,108 December 31, 2017 Grade 1 - 4 (Pass) Grade 5 (Watch) Grade 6 (Special Mention) Grade 7 (Substandard-Accrual) Grade 8 (Substandard-Nonaccrual) Grade 9 (Doubtful) PCI Total (Dollars in thousands) Originated Loans Commercial & Industrial $ 889,709 $ 22,648 $ 5,605 $ 39,422 $ 45,413 $ — $ — $ 1,002,797 Mortgage Warehouse 220,230 — — — — — — 220,230 Owner Occupied Commercial Real Estate 314,497 3,096 7,658 2,655 — — — 327,906 Commercial Real Estate 681,691 45,149 85,431 11,090 — — — 823,361 Construction & Land Development 121,893 970 — 10,848 3,287 — — 136,998 Residential Mortgage 138,239 6,529 — 1,142 3,111 — — 149,021 Other Consumer 16,113 2 — 14 49 — — 16,178 Total originated loans $ 2,382,372 $ 78,394 $ 98,694 $ 65,171 $ 51,860 $ — $ — $ 2,676,491 Acquired Loans Commercial & Industrial $ 38,000 $ 3,172 $ 11,101 $ 6,058 $ 1,901 $ — $ 3,237 $ 63,469 Owner Occupied Commercial Real Estate 72,592 8,499 — 285 1,886 — 4,062 87,324 Commercial Real Estate 173,765 43,775 20,129 — 312 — 6,437 244,418 Construction & Land Development 14,549 12,136 — 555 714 — — 27,954 Residential Mortgage 85,461 1,023 202 190 454 — 2,229 89,559 Other Consumer 1,059 — — — 211 — — 1,270 Total acquired loans $ 385,426 $ 68,605 $ 31,432 $ 7,088 $ 5,478 $ — $ 15,965 $ 513,994 Total loans $ 2,767,798 $ 146,999 $ 130,126 $ 72,259 $ 57,338 $ — $ 15,965 $ 3,190,485 |
Troubled debt restructurings | Troubled debt restructurings identified during the periods indicated were as follows: Six Months Ended June 30, 2018 June 30, 2017 Number of Contracts Pre-Modification Outstanding Recorded Investment Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Recorded Investment (Dollars in thousands) Commercial & industrial — $ — $ — 3 $ 2,526 $ 2,509 Owner occupied commercial real estate — — — 3 5,501 5,492 Construction, land & land development — — — 2 831 820 Consumer and other — — — 1 208 214 Total — $ — $ — 9 $ 9,066 $ 9,035 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivable Loans and Leases Allowance [Abstract] | |
Analysis of activity in the allowance for loan losses | An analysis of activity in the allowance for loan losses for the periods indicated, and the balance of loans receivable by the method of impairment evaluation for those periods were as follows: Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 23,113 $ 2,713 $ (5,300 ) $ 1 $ 20,527 Owner occupied commercial real estate 2,871 480 — — 3,351 Commercial real estate 7,766 385 — — 8,151 Construction, land & land development 1,461 (613 ) — — 848 Residential mortgage 1,159 (52 ) — 3 1,110 Consumer and other 165 39 (46 ) 7 165 Total originated loans $ 36,535 $ 2,952 $ (5,346 ) $ 11 $ 34,152 Acquired Loans Commercial & industrial $ 42 $ (26 ) $ — $ 3 $ 19 Owner occupied commercial real estate 513 (360 ) — — 153 Commercial real estate 574 (289 ) — 5 290 Construction, land & land development 20 18 — — 38 Residential mortgage 539 (396 ) — 287 430 Consumer and other 10 (2 ) (6 ) 2 4 Total acquired loans $ 1,698 $ (1,055 ) $ (6 ) $ 297 $ 934 Total $ 38,233 $ 1,897 $ (5,352 ) $ 308 $ 35,086 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 15,155 $ 1,736 $ (308 ) $ 23 $ 16,606 Owner occupied commercial real estate 2,763 62 — — 2,825 Commercial real estate 8,347 (162 ) — — 8,185 Construction, land & land development 1,536 40 — — 1,576 Residential mortgage 1,119 37 — 9 1,165 Consumer and other 191 103 (126 ) 4 172 Total originated loans $ 29,111 $ 1,816 $ (434 ) $ 36 $ 30,529 Acquired Loans Commercial & industrial $ 586 $ (321 ) $ (158 ) $ 50 $ 157 Owner occupied commercial real estate 1,064 (103 ) (961 ) — — Commercial real estate 340 144 — 3 487 Construction, land & land development 9 (6 ) — — 3 Residential mortgage 611 (20 ) — 7 598 Consumer and other 215 — — 2 217 Total acquired loans $ 2,825 $ (306 ) $ (1,119 ) $ 62 $ 1,462 Total $ 31,936 $ 1,510 $ (1,553 ) $ 98 $ 31,991 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 16,654 $ 11,869 $ (7,999 ) $ 3 $ 20,527 Owner occupied commercial real estate 2,748 603 — — 3,351 Commercial real estate 7,738 413 — — 8,151 Construction, land & land development 1,481 (633 ) — — 848 Residential mortgage 1,136 (31 ) — 5 1,110 Consumer and other 221 (54 ) (56 ) 54 165 Total originated loans $ 29,978 $ 12,167 $ (8,055 ) $ 62 $ 34,152 Acquired Loans Commercial & industrial $ 35 $ (25 ) $ — $ 9 $ 19 Owner occupied commercial real estate — 153 — — 153 Commercial real estate 658 (375 ) — 7 290 Construction, land & land development — 38 — — 38 Residential mortgage 542 (412 ) — 300 430 Consumer and other 7 14 (20 ) 3 4 Total acquired loans $ 1,242 $ (607 ) $ (20 ) $ 319 $ 934 Total $ 31,220 $ 11,560 $ (8,075 ) $ 381 $ 35,086 Balance Provision Charge-offs Recoveries Balance (Dollars in thousands) Originated Loans Commercial & industrial $ 9,491 $ 7,970 $ (1,443 ) $ 588 $ 16,606 Owner occupied commercial real estate 2,609 216 — — 2,825 Commercial real estate 8,576 (391 ) — — 8,185 Construction, land & land development 1,852 (276 ) — — 1,576 Residential mortgage 1,134 (3 ) — 34 1,165 Consumer and other 193 (9 ) (134 ) 122 172 Total originated loans $ 23,855 $ 7,507 $ (1,577 ) $ 744 $ 30,529 Acquired Loans Commercial & industrial $ 1,260 $ (838 ) $ (335 ) $ 70 $ 157 Owner occupied commercial real estate — 957 (961 ) 4 — Commercial real estate 437 47 — 3 487 Construction, land & land development 115 (91 ) (95 ) 74 3 Residential mortgage 685 (126 ) — 39 598 Consumer and other 12 199 — 6 217 Total acquired loans $ 2,509 $ 148 $ (1,391 ) $ 196 $ 1,462 Total $ 26,364 $ 7,655 $ (2,968 ) $ 940 $ 31,991 An analysis of activity in the allowance for loan losses for the periods indicated, and the balance of loans receivable by the method of impairment evaluation for those periods were as follows: June 30, 2018 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,237,821 $ 41,041 $ — $ 1,278,862 $ 10,875 $ 9,652 $ — $ 20,527 Owner occupied commercial real estate 368,467 5,225 — 373,692 2,820 531 — 3,351 Commercial real estate 948,924 175 — 949,099 8,151 — — 8,151 Construction, land & land development 105,819 107 — 105,926 848 — — 848 Residential mortgage 154,672 3,859 — 158,531 1,110 — — 1,110 Consumer and other 12,809 45 — 12,854 136 29 — 165 Total originated loans $ 2,828,512 $ 50,452 $ — $ 2,878,964 $ 23,940 $ 10,212 $ — $ 34,152 Acquired Loans Commercial & industrial $ 29,275 $ 4,594 $ 1,730 $ 35,599 $ 19 $ — $ — $ 19 Owner occupied commercial real estate 57,340 1,727 3,394 62,461 — 153 — 153 Commercial real estate 139,241 105 3,591 142,937 290 — — 290 Construction, land & land development 23,907 700 — 24,607 38 — — 38 Residential mortgage 74,555 104 2,002 76,661 320 — 110 430 Consumer and other 677 202 — 879 1 3 — 4 Total acquired loans $ 324,995 $ 7,432 $ 10,717 $ 343,144 $ 668 $ 156 $ 110 $ 934 Total $ 3,153,507 $ 57,884 $ 10,717 $ 3,222,108 $ 24,608 $ 10,368 $ 110 $ 35,086 December 31, 2017 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,173,371 $ 49,656 $ — $ 1,223,027 $ 11,245 $ 5,409 $ — $ 16,654 Owner occupied commercial real estate 327,906 — — 327,906 2,748 — — 2,748 Commercial real estate 823,361 — — 823,361 7,738 — — 7,738 Construction, land & land development 133,711 3,287 — 136,998 1,257 224 — 1,481 Residential mortgage 145,910 3,111 — 149,021 1,136 — — 1,136 Consumer and other 16,116 62 — 16,178 191 30 — 221 Total originated loans $ 2,620,375 $ 56,116 $ — $ 2,676,491 $ 24,315 $ 5,663 $ — $ 29,978 Acquired Loans Commercial & industrial $ 49,494 $ 10,738 $ 3,237 $ 63,469 $ 35 $ — $ — $ 35 Owner occupied commercial real estate 81,376 1,886 4,062 87,324 — — — — Commercial real estate 237,669 312 6,437 244,418 658 — — 658 Construction, land & land development 27,240 714 — 27,954 — — — — Residential mortgage 86,876 454 2,229 89,559 467 — 75 542 Consumer and other 1,059 211 — 1,270 3 4 — 7 Total acquired loans $ 483,714 $ 14,315 $ 15,965 $ 513,994 $ 1,163 $ 4 $ 75 $ 1,242 Total $ 3,104,089 $ 70,431 $ 15,965 $ 3,190,485 $ 25,478 $ 5,667 $ 75 $ 31,220 June 30, 2017 Loans evaluated for impairment Allowance for loan losses evaluated Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total loans Collectively evaluated for impairment Individually evaluated for impairment Purchased credit impaired Total allowance for loan losses (Dollars in thousands) Originated Loans Commercial & industrial $ 1,010,269 $ 42,085 $ — $ 1,052,354 $ 9,556 $ 7,050 $ — $ 16,606 Owner occupied commercial real estate 306,514 — — 306,514 2,825 — — 2,825 Commercial real estate 805,362 1,979 — 807,341 8,185 — — 8,185 Construction, land & land development 153,522 — — 153,522 1,576 — — 1,576 Residential mortgage 135,879 2,039 — 137,918 1,165 — — 1,165 Consumer and other 19,024 81 — 19,105 143 29 — 172 Total originated loans $ 2,430,570 $ 46,184 $ — $ 2,476,754 $ 23,450 $ 7,079 $ — $ 30,529 Acquired Loans Commercial & industrial $ 74,661 $ 15,029 $ 2,288 $ 91,978 $ — $ 157 $ — $ 157 Owner occupied commercial real estate 88,714 6,958 5,131 100,803 — — — — Commercial real estate 291,289 — 10,607 301,896 487 — — 487 Construction, land & land development 46,984 1,468 18 48,470 3 — — 3 Residential mortgage 99,052 402 2,462 101,916 561 20 17 598 Consumer and other 1,323 215 — 1,538 5 212 — 217 Total acquired loans $ 602,023 $ 24,072 $ 20,506 $ 646,601 $ 1,056 $ 389 $ 17 $ 1,462 Total $ 3,032,593 $ 70,256 $ 20,506 $ 3,123,355 $ 24,506 $ 7,468 $ 17 $ 31,991 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of premises and equipment | Premises and equipment as of the dates indicated are summarized as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Land $ 8,457 $ 7,660 Buildings and improvements 28,563 23,598 Furniture, fixtures and equipment 10,479 10,484 47,499 41,742 Less accumulated depreciation (18,321 ) (17,740 ) Total $ 29,178 $ 24,002 |
GOODWILL AND CORE DEPOSIT INT35
GOODWILL AND CORE DEPOSIT INTANGIBLES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill and core deposit intangibles | Changes in the carrying amount of goodwill and core deposit intangibles for the periods set forth were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance - December 31, 2016 $ 85,291 $ 9,975 Less - amortization — (1,472 ) Balance - December 31, 2017 $ 85,291 $ 8,503 Less amortization — (622 ) Balance - June 30, 2018 $ 85,291 $ 7,881 |
Estimated future amortization expense for the core deposit intangibles | The estimated future amortization expense for the core deposit intangibles remaining as of June 30, 2018 is as follows (dollars in thousands): 2018 $ 573 2019 1,080 2020 993 2021 905 2022 818 Thereafter 3,512 Total $ 7,881 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deposits [Abstract] | |
Scheduled maturities of certificates and other time deposits | Scheduled maturities of certificates and other time deposits for the next five years were as follows: June 30, December 31, (Dollars in thousands) 2018 $ 493,872 $ 889,231 2019 629,791 247,595 2020 138,430 83,005 2021 20,699 13,922 2022 26,780 28,579 Thereafter 10,470 — Total $ 1,320,042 $ 1,262,332 |
SECURITIES SOLD UNDER AGREEME37
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of other borrowed funds | Other borrowed funds as of the dates indicated were as follows: June 30, 2018 December 31, 2017 (Dollars in thousands) Federal Home Loan Bank advances 412,000 $ 325,000 Repurchase agreements 4,141 5,173 Total $ 416,141 $ 330,173 |
SUBORDINATED DEBENTURES AND S38
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Subordinated Borrowings [Abstract] | |
Summary of pertinent information related to subordinated notes outstanding | A summary of pertinent information related to the Company’s two issues of subordinated debentures outstanding at June 30, 2018 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Patriot Bancshares Capital Trust I March 31, 2006 $ 5,000 3 month LIBOR +1.85%, not to exceed 11.90% $ 5,155 April 7, 2036 Patriot Bancshares Capital Trust II August 2, 2007 $ 16,500 3 month LIBOR +1.80%, not to exceed 11.90% $ 17,011 September 15, 2037 (1) The 3-month LIBOR in effect as of June 30, 2018 was 2.336% . (2) All debentures are callable five years from issuance date. A summary of pertinent information related to the Company’s issues of subordinated Notes outstanding as of the dates indicated were as follows: June 30, December 31, (Dollars in thousands) Subordinated notes fixed to floating rate, 8.50% per annum, maturity date December 15, 2026 $ 35,000 $ 35,000 Less: unamortized debt issuance costs (1,218 ) (1,291 ) Total subordinated notes $ 33,782 $ 33,709 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense | Income tax expense for the three and six months ended June 30, 2018 and 2017 was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (Dollars in thousands) Income tax expense for the period $ 4,283 $ 6,985 $ 6,605 $ 10,927 Effective Tax Rate 20.7 % 35.1 % 20.4 % 35.2 % |
OFF-BALANCE SHEET ARRANGEMENT40
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future cash payments associated with contractual obligations | The Company’s future cash payments associated with its contractual obligations pursuant to its certificates and other time deposits, FHLB advances, subordinated debentures and subordinated notes and operating leases, as of the date indicated are as follows: June 30, 2018 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Certificates and other time deposits $ 1,001,668 $ 274,123 $ 44,251 $ — $ 1,320,042 Federal Home Loan Bank advances 365,502 50,874 — — 416,376 Subordinated debentures and subordinated notes 4,019 3,884 10,077 82,560 100,540 Operating leases 1,690 2,587 1,781 2,493 8,551 Total $ 1,372,879 $ 331,468 $ 56,109 $ 85,053 $ 1,845,509 |
Summary of noncancelable future operating lease commitments | A summary as of June 30, 2018 , of the Company’s noncancelable future operating lease commitments (in thousands): 2018 $ 877 2019 1,610 2020 1,237 2021 1,099 2022 817 Thereafter 2,911 Total $ 8,551 |
Summary of various financial instruments with off-balance sheet risk outstanding | The following is a summary of the various financial instruments outstanding as of the date set forth: June 30, 2018 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Commitments to extend credit $ 325,665 $ 190,944 $ 85,515 $ 87,085 $ 689,209 Standby and commercial letters of credit 9,612 314 100 640 10,666 Total $ 335,277 $ 191,258 $ 85,615 $ 87,725 $ 699,875 |
DERIVATIVE FINANCIAL INSTRUME41
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of the interest rate swaps outstanding | The following is a summary of the interest rate swaps outstanding as of the dates set forth: June 30, 2018 Notional Amount Fixed Rate Floating Rate Maturity Fair Value (Dollars in thousands) Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 159,205 4.38 - 6.94% LIBOR 1 month + Wtd. Avg. $ 2,515 Interest rate caps and collars $ 37,030 4.55 - 6.00% LIBOR 1 month + Wtd. Avg. $ 185 Correspondent interest rate swap: Interest rate swaps - receive fixed/pay floating $ 159,205 4.38 - 6.94% LIBOR 1 month + 3.00% - 4.25% Wtd. Avg. $ (2,564 ) Interest rate caps and collars $ 37,030 4.55 - 6.00% LIBOR 1 month + Wtd. Avg. $ (185 ) December 31, 2017 Notional Amount Fixed Rate Floating Rate Maturity Fair Value (Dollars in thousands) Non-hedging derivative instruments: Customer interest rate derivative: Interest rate swaps - receive fixed/pay floating $ 173,304 2.19 - 5.72% LIBOR 1 month + 0% - 4.25% Wtd. Avg. $ 880 Interest rate caps and collars $ 37,466 4.55 - 6.00% LIBOR 1 month + 3% - 3.75% Wtd. Avg. $ 75 Correspondent interest rate swap: Interest rate swaps - receive fixed/pay floating $ 173,304 2.19 - 5.72% LIBOR 1 month + 0% - 4.25% Wtd. Avg. $ (901 ) Interest rate caps and collars $ 37,466 4.55 - 6.00% LIBOR 1 month + 3% - 3.75% Wtd. Avg. $ (75 ) |
Notional amounts and estimated fair values of the non-hedging derivatives | The notional amounts and estimated fair values of the non-hedging derivative instruments by classification as the dates set forth were as follows: June 30, 2018 December 31, 2017 Estimated Fair Value Estimated Fair Value Notional Amount Asset Derivative Liability Derivative Notional Amount Fair Value Liability Derivative (Dollars in thousands) Non-hedging interest rate derivatives: Correspondent counterparty: Interest rate swaps $ 159,205 $ 2,757 $ 242 $ 173,304 $ 1,326 $ 448 Interest rate caps and collars 37,030 185 — 37,466 75 — Customer counterparty: Interest rate swaps 159,205 188 2,752 173,304 423 1,325 Interest rate caps and collars 37,030 — 185 37,466 — 75 Gross derivatives 3,130 3,179 1,824 1,848 Offsetting derivatives assets/liabilities (122 ) (122 ) (369 ) (369 ) Net derivatives included in the consolidated balance sheets $ 3,008 $ 3,057 $ 1,455 $ 1,479 |
REGULATORY MATTERS (Tables)
REGULATORY MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Consolidated Capital ratios | The Company’s consolidated capital ratios and the Bank’s capital ratios as of the dates set forth are presented in the following table: June 30, 2018 Actual For Capital Adequacy Purposes To be Categorized as "Well Capitalized" under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) The Company (1) : Total capital (to risk weighted assets) $ 487,002 13.2 % $ 295,174 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 417,047 11.3 221,380 6.0 N/A N/A Common equity tier 1 capital 403,475 10.9 166,035 4.5 N/A N/A Tier I capital (to average assets) 417,047 10.0 167,184 4.0 N/A N/A The Bank (2) : Total capital (to risk weighted assets) $ 477,452 13.0 % $ 294,851 8.0 % $ 368,564 10.0 % Tier 1 capital (to risk weighted assets) 441,279 12.0 221,138 6.0 294,851 8.0 Common equity tier 1 capital 441,279 12.0 165,854 4.5 239,566 6.5 Tier I capital (to average assets) 441,279 10.6 167,123 4.0 208,904 5.0 December 31, 2017 Actual For Capital Adequacy Purposes To be Categorized as "Well Capitalized" under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) The Company (1) : Total capital (to risk weighted assets) $ 455,754 12.7 % $ 287,840 8.0 % N/A N/A Tier 1 capital (to risk weighted assets) 390,690 10.9 215,880 6.0 N/A N/A Common equity tier 1 capital 377,328 10.5 161,910 4.5 N/A N/A Tier I capital (to average assets) 390,690 9.5 164,632 4.0 N/A N/A The Bank (2) : Total capital (to risk weighted assets) $ 444,198 12.4 % $ 286,648 8.0 % $ 358,310 10.0 % Tier 1 capital (to risk weighted assets) 415,542 11.6 214,986 6.0 286,648 8.0 Common equity tier 1 capital 415,542 11.6 161,239 4.5 232,901 6.5 Tier I capital (to average assets) 415,542 10.1 164,390 4.0 205,487 5.0 (1) The Federal Reserve may require the Company to maintain capital ratios above the required minimums. (2) The FDIC or the Office of the Comptroller of the Currency (the “OCC”) may require the Bank to maintain capital ratios above the required minimums. |
DISCLOSURES ABOUT FAIR VALUE 43
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The tables below present the Company’s assets and liabilities measured at fair value on a recurring basis as of the dates set forth aggregated by the level in the fair value hierarchy within which those measurements fall. June 30, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets: Available-for-sale securities $ — $ 635,333 $ — $ 635,333 Loans held for sale — 4,992 — 4,992 Correspondent interest rate swaps — 2,757 — 2,757 Customer interest rate swaps — 188 — 188 Correspondent interest rate caps and collars — 185 — 185 Financial Liabilities: Correspondent interest rate swaps $ — $ 242 $ — $ 242 Customer interest rate swaps — 2,752 — 2,752 Customer interest rate caps and collars — 185 — 185 December 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets: Available-for-sale securities $ — $ 705,539 $ — $ 705,539 Correspondent interest rate swaps — 1,326 — 1,326 Customer interest rate swaps — 423 — 423 Correspondent interest rate caps — 75 — 75 Financial Liabilities: Correspondent interest rate swaps $ — $ 448 $ — $ 448 Customer interest rate swaps — 1,325 — 1,325 Customer interest rate caps — 75 — 75 |
Schedule of fair value of assets measured on a nonrecurring basis | The following tables present the assets that were subject to fair value adjustments during the periods indicated, which were still on the balance sheet at the end of the reporting periods: June 30, 2018 Level 3 Total Losses for the Six Months Ended June 30, 2018 (Dollars in thousands) Assets Measured on a Nonrecurring Basis: Impaired loans $ 28,535 $ 28,535 $ 8,598 Other real estate owned — — — June 30, 2017 Level 3 Total Losses for the (Dollars in thousands) Assets Measured on a Nonrecurring Basis: Impaired loans $ 26,265 $ 26,265 $ 7,152 Other real estate owned — — — |
Estimated fair values of the Company's financial instruments | The estimated fair values of the Company’s financial instruments as of the dates indicated are as follows: June 30, 2018 Carrying Value Level 1 Level 2 Level 3 Fair Value (Dollars in thousands) Financial Assets: Cash and short term investments $ 231,251 $ 231,251 $ — $ — $ 231,251 Available-for-sale securities 635,333 — 635,333 — 635,333 Held-to-maturity securities 64,530 — 63,993 — 63,993 Other securities 42,962 42,962 — — 42,962 Loans held for sale 4,992 — 4,992 — 4,992 Loans held for investment, net of allowance 3,187,022 — — 3,201,649 3,201,649 Real estate acquired by foreclosure 802 — — 802 802 Total $ 4,166,892 $ 274,213 $ 704,318 $ 3,202,451 $ 4,180,982 Financial Liabilities: Deposits $ 3,426,050 $ — $ 3,429,588 $ — $ 3,429,588 Securities sold under agreements to repurchase 4,141 — 4,141 — 4,141 Other borrowed funds 412,000 — 412,026 — 412,026 Subordinated debentures and subordinated notes 48,019 — 46,170 — 46,170 Total $ 3,890,210 $ — $ 3,891,925 $ — $ 3,891,925 December 31, 2017 Carrying Value Level 1 Level 2 Level 3 Fair Value (Dollars in thousands) Financial Assets: Cash and short term investments $ 140,681 $ 140,681 $ — $ — $ 140,681 Available-for-sale securities 705,539 — 705,539 — 705,539 Held-to-maturity securities 13,275 — 13,146 — 13,146 Other securities 26,617 26,617 — — 26,617 Loans held for sale 7,156 — 7,156 — 7,156 Loans held for investment 3,190,485 — — 3,206,145 3,206,145 Real estate acquired by foreclosure 802 — — 802 802 Total $ 4,084,555 $ 167,298 $ 725,841 $ 3,206,947 $ 4,100,086 Financial Liabilities: Deposits $ 3,397,143 $ — $ 3,392,144 $ — $ 3,392,144 Securities sold under agreements to repurchase 5,173 — 5,173 — 5,173 Other borrowed funds 325,000 — 324,873 — 324,873 Subordinated debentures and subordinated notes 47,737 — 45,356 — 45,356 Total $ 3,775,053 $ — $ 3,767,546 $ — $ 3,767,546 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) | Jul. 23, 2018USD ($)$ / shares | Jun. 30, 2018$ / shares | Dec. 31, 2017$ / shares |
Business Acquisition [Line Items] | |||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Subsequent Event | Acquirer | Veritex | |||
Business Acquisition [Line Items] | |||
Amount each share of company stock converted in merger receives in return | 0.79 | ||
Common stock par value (in dollars per share) | $ 0.01 | ||
Merger agreement termination fee liability | $ | $ 40,000,000 |
EARNINGS PER COMMON SHARE - Com
EARNINGS PER COMMON SHARE - Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 16,421 | $ 12,898 | $ 25,783 | $ 20,110 |
Basic: | ||||
Weighted average shares outstanding (in shares) | 37,274 | 37,023 | 37,219 | 37,007 |
Weighted average shares outstanding (in dollars per share) | $ 0.44 | $ 0.35 | $ 0.69 | $ 0.54 |
Diluted: | ||||
Effect of dilutive securities - options (in shares) | 372 | 241 | 394 | 227 |
Weighted average shares outstanding, Total (in shares) | 37,646 | 37,264 | 37,613 | 37,234 |
Weighted average shares outstanding, Total (in dollars per share) | $ 0.44 | $ 0.35 | $ 0.69 | $ 0.54 |
EARNINGS PER COMMON SHARE - Add
EARNINGS PER COMMON SHARE - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Apr. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Approximate dollar value of shares that may yet be purchased under the plans or programs | $ 15 | |
Value of shares repurchased under program | $ 1.3 | |
Average price paid per share in share repurchase program (in dollars per share) | $ 7.04 |
RECENT ACCOUNTING STANDARDS (De
RECENT ACCOUNTING STANDARDS (Details) - USD ($) $ in Millions | Jan. 01, 2018 | Sep. 30, 2017 |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Transfer of securities to available-for-sale | $ 15.9 | |
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Income tax expense reclassification | $ (1.4) | |
Retained Earnings | Accounting Standards Update 2018-02 | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Income tax expense reclassification | $ 1.4 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - Core deposit intangibles | 6 Months Ended |
Jun. 30, 2018 | |
Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible asset amortized life | 6 years |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Acquired intangible asset amortized life | 19 years |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Interest-bearing Deposits | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | $ 86.2 | $ 76 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale: | ||
Available-for-sale, Amortized Cost | $ 655,542 | $ 715,507 |
Gross Unrealized Gains | 128 | 431 |
Gross Unrealized Losses | (20,337) | (10,399) |
Available-for-sale securities, at fair value | 635,333 | 705,539 |
Held-to-maturity: | ||
Held-to-maturity, Amortized Cost | 64,530 | 13,275 |
Gross Unrealized Gains | 85 | 61 |
Gross Unrealized Losses | (622) | (190) |
Held-to-maturity, fair value | 63,993 | 13,146 |
SBA guaranteed securities | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 99,125 | 104,111 |
Gross Unrealized Gains | 74 | 129 |
Gross Unrealized Losses | (1,982) | (948) |
Available-for-sale securities, at fair value | 97,217 | 103,292 |
Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 227,164 | 250,580 |
Gross Unrealized Gains | 0 | 297 |
Gross Unrealized Losses | (7,095) | (1,701) |
Available-for-sale securities, at fair value | 220,069 | 249,176 |
Held-to-maturity: | ||
Held-to-maturity, Amortized Cost | 11,352 | 10,841 |
Gross Unrealized Gains | 25 | 61 |
Gross Unrealized Losses | (389) | (170) |
Held-to-maturity, fair value | 10,988 | 10,732 |
Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 65,823 | 65,986 |
Gross Unrealized Losses | (2,823) | (500) |
Available-for-sale securities, at fair value | 63,000 | 65,486 |
Held-to-maturity: | ||
Held-to-maturity, Amortized Cost | 2,488 | |
Gross Unrealized Losses | (90) | |
Held-to-maturity, fair value | 2,398 | |
Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 211,291 | 234,881 |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (7,035) | (6,434) |
Available-for-sale securities, at fair value | 204,256 | 228,447 |
Held-to-maturity: | ||
Held-to-maturity, Amortized Cost | 44,499 | 2,434 |
Gross Unrealized Gains | 60 | |
Gross Unrealized Losses | (138) | (20) |
Held-to-maturity, fair value | 44,421 | 2,414 |
Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 35,990 | 36,151 |
Gross Unrealized Losses | (1,341) | (472) |
Available-for-sale securities, at fair value | 34,649 | 35,679 |
Corporate debt securities | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 15,913 | 5,789 |
Gross Unrealized Gains | 53 | 5 |
Gross Unrealized Losses | (61) | |
Available-for-sale securities, at fair value | 15,905 | 5,794 |
Obligations of municipal subdivisions | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 236 | 6,672 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (45) | |
Available-for-sale securities, at fair value | 237 | 6,627 |
Held-to-maturity: | ||
Held-to-maturity, Amortized Cost | 6,191 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (5) | |
Held-to-maturity, fair value | $ 6,186 | |
CRA qualified investment fund | ||
Available-for-sale: | ||
Available-for-sale, Amortized Cost | 11,337 | |
Gross Unrealized Losses | (299) | |
Available-for-sale securities, at fair value | $ 11,038 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($)security | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($)securitysegmentsale | Jun. 30, 2017USD ($)sale | Dec. 31, 2017USD ($)security | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||||
Available-for-sale securities, at fair value transferred to held to maturity | $ 50,000,000 | ||||
Loss on transfer of securities | $ 2,100,000 | $ 2,200,000 | |||
Number of sales of available for sale securities | sale | 29 | 31 | |||
Proceeds from sale of available for sale securities | $ 24,400,000 | $ 279,200,000 | |||
Net gain on sale of available for sale securities | 66,000 | 294,000 | |||
Gross unrealized gain on AVS securities | 172,000 | 777,000 | |||
Gross unrealized loss on AVS securities | $ 106,000 | $ 483,000 | |||
Number of portfolio segments | segment | 2 | ||||
Impairment loss realized in consolidated statements of income | $ 0 | $ 0 | |||
Average loss on securities in an unrealized loss position | 0.0297 | 0.0297 | 0.0169 | ||
Number of securities in an unrealized loss position | security | 19 | 19 | 18 | ||
Repurchase Agreements | |||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||||
Amortized cost of securities pledged | $ 5,400,000 | $ 5,400,000 | $ 6,300,000 | ||
Securities pledged and available to be sold under repurchase agreements, fair value | 5,200,000 | 5,200,000 | 6,300,000 | ||
Securities pledged to various Federal Reserve Districts relating to deposits of bankruptcy trustees | |||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||||
Amortized cost of securities | 74,400,000 | 74,400,000 | 55,700,000 | ||
Fair value of pledged securities | 73,400,000 | 73,400,000 | 55,500,000 | ||
Derivative | |||||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||||
Amortized cost of securities pledged | 3,300,000 | 3,300,000 | 3,400,000 | ||
Securities pledged and available to be sold under repurchase agreements, fair value | $ 3,200,000 | $ 3,200,000 | $ 3,300,000 |
SECURITIES - Contractual Maturi
SECURITIES - Contractual Maturities of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 0 | |
Due after one year through five years | 4,913 | |
Due after five years through ten years | 11,236 | |
Due after ten years | 0 | |
Total | 16,149 | |
Available-for-sale, Amortized Cost | 655,542 | $ 715,507 |
Available-for-sale, Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 4,871 | |
Due after five years through ten years | 11,271 | |
Due after ten years | 0 | |
Total | 16,142 | |
Available-for-sale Securities, Total | 635,333 | 705,539 |
Held-to-maturity, Amortized Cost | ||
Due after ten years | 6,191 | |
Total | 6,191 | |
Held-to-maturity, Amortized Cost | 64,530 | 13,275 |
Held-to-maturity, Fair Value | ||
Due after ten years | 6,186 | |
Total | 6,186 | |
Held-to-maturity, fair value | 63,993 | 13,146 |
Mortgage-backed securities and collateralized mortgage obligations | ||
Available-for-sale, Amortized Cost | ||
Amortized cost | 540,268 | |
Available-for-sale, Fair Value | ||
Fair value | 521,974 | |
Held-to-maturity, Amortized Cost | ||
Amortized cost | 58,339 | |
Held-to-maturity, Fair Value | ||
Fair value | 57,807 | |
SBA guaranteed securities | ||
Available-for-sale, Amortized Cost | ||
Amortized cost | 99,125 | |
Available-for-sale, Amortized Cost | 99,125 | 104,111 |
Available-for-sale, Fair Value | ||
Fair value | 97,217 | |
Available-for-sale Securities, Total | $ 97,217 | $ 103,292 |
SECURITIES - Securities in Cont
SECURITIES - Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | $ 487,436 | $ 587,315 |
Gross Unrealized Losses, Less than 12 Months | (14,210) | (9,756) |
Fair Value, Less than 12 Months | 473,226 | 577,559 |
Amortized Cost, More than 12 Months | 156,412 | 29,526 |
Gross Unrealized Losses, More than 12 Months | (6,127) | (643) |
Fair Value, More than 12 Months | 150,285 | 28,883 |
Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 55,103 | 3,520 |
Gross Unrealized Losses, Less than 12 Months | (311) | (29) |
Fair Value, Less than 12 Months | 54,792 | 3,491 |
Amortized Cost, More than 12 Months | 6,017 | 6,265 |
Gross Unrealized Losses, More than 12 Months | (311) | (161) |
Fair Value, More than 12 Months | 5,706 | 6,104 |
SBA guaranteed securities | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 89,688 | 76,603 |
Gross Unrealized Losses, Less than 12 Months | (1,892) | (948) |
Fair Value, Less than 12 Months | 87,796 | 75,655 |
Amortized Cost, More than 12 Months | 4,979 | |
Gross Unrealized Losses, More than 12 Months | (90) | |
Fair Value, More than 12 Months | 4,889 | |
Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: residential | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 227,164 | 192,105 |
Gross Unrealized Losses, Less than 12 Months | (7,095) | (1,608) |
Fair Value, Less than 12 Months | 220,069 | 190,497 |
Amortized Cost, More than 12 Months | 9,152 | |
Gross Unrealized Losses, More than 12 Months | (93) | |
Fair Value, More than 12 Months | 9,059 | |
Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 3,893 | 1,086 |
Gross Unrealized Losses, Less than 12 Months | (78) | (9) |
Fair Value, Less than 12 Months | 3,815 | 1,077 |
Amortized Cost, More than 12 Months | 6,017 | 6,265 |
Gross Unrealized Losses, More than 12 Months | (311) | (161) |
Fair Value, More than 12 Months | 5,706 | 6,104 |
Mortgage-backed securities issued by U.S. government agencies or sponsored enterprises: commercial | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 52,887 | 65,986 |
Gross Unrealized Losses, Less than 12 Months | (2,340) | (500) |
Fair Value, Less than 12 Months | 50,547 | 65,486 |
Amortized Cost, More than 12 Months | 12,936 | |
Gross Unrealized Losses, More than 12 Months | (483) | |
Fair Value, More than 12 Months | 12,453 | |
Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 2,488 | |
Gross Unrealized Losses, Less than 12 Months | (90) | |
Fair Value, Less than 12 Months | 2,398 | |
Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: residential | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 72,794 | 210,034 |
Gross Unrealized Losses, Less than 12 Months | (1,481) | (6,183) |
Fair Value, Less than 12 Months | 71,313 | 203,851 |
Amortized Cost, More than 12 Months | 138,497 | 9,037 |
Gross Unrealized Losses, More than 12 Months | (5,554) | (251) |
Fair Value, More than 12 Months | 132,943 | 8,786 |
Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 42,531 | 2,434 |
Gross Unrealized Losses, Less than 12 Months | (138) | (20) |
Fair Value, Less than 12 Months | 42,393 | 2,414 |
Collateralized mortgage obligations issued by U.S. government agencies or sponsored enterprises: commercial | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 35,990 | 36,151 |
Gross Unrealized Losses, Less than 12 Months | (1,341) | (472) |
Fair Value, Less than 12 Months | 34,649 | 35,679 |
Corporate debt securities | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 8,913 | |
Gross Unrealized Losses, Less than 12 Months | (61) | |
Fair Value, Less than 12 Months | 8,852 | |
Municipal bonds | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 6,436 | |
Gross Unrealized Losses, Less than 12 Months | (45) | |
Fair Value, Less than 12 Months | 6,391 | |
Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, Less than 12 Months | 6,191 | |
Gross Unrealized Losses, Less than 12 Months | (5) | |
Fair Value, Less than 12 Months | $ 6,186 | |
CRA qualified investment fund | ||
Available-for-sale, Continuous Unrealized Loss Position [Abstract] | ||
Amortized Cost, More than 12 Months | 11,337 | |
Gross Unrealized Losses, More than 12 Months | (299) | |
Fair Value, More than 12 Months | $ 11,038 |
LOANS - Portfolio by Type and C
LOANS - Portfolio by Type and Class (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | $ 3,222,108 | $ 3,190,485 | $ 3,123,355 |
Total loans held for sale | 4,992 | 7,156 | |
Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 2,878,964 | 2,676,491 | 2,476,754 |
Total loans held for sale | 4,992 | 7,156 | |
Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 343,144 | 513,994 | 646,601 |
Total loans held for sale | 0 | 0 | |
Commercial & industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,070,420 | 1,066,266 | |
Commercial & industrial | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,034,821 | 1,002,797 | |
Commercial & industrial | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 35,599 | 63,469 | 91,978 |
Mortgage warehouse | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 244,041 | 220,230 | |
Mortgage warehouse | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 244,041 | 220,230 | |
Mortgage warehouse | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 0 | 0 | |
Owner occupied commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 436,153 | 415,230 | |
Owner occupied commercial real estate | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 373,692 | 327,906 | 306,514 |
Owner occupied commercial real estate | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 62,461 | 87,324 | 100,803 |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,092,036 | 1,067,779 | |
Commercial real estate | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 949,099 | 823,361 | 807,341 |
Commercial real estate | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 142,937 | 244,418 | 301,896 |
Construction, land & land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 130,533 | 164,952 | |
Construction, land & land development | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 105,926 | 136,998 | 153,522 |
Construction, land & land development | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 24,607 | 27,954 | 48,470 |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 235,192 | 238,580 | |
Residential mortgage | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 158,531 | 149,021 | 137,918 |
Residential mortgage | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 76,661 | 89,559 | 101,916 |
Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 13,733 | 17,448 | |
Consumer and other | Originated | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 12,854 | 16,178 | 19,105 |
Consumer and other | Acquired | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | $ 879 | $ 1,270 | $ 1,538 |
LOANS - Additional Information
LOANS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net deferred loan origination fees and unamortized premium and discount | $ 13,600,000 | $ 13,600,000 | $ 13,600,000 | ||
Non-accretable discount on acquired credit impaired loans | 234,000 | 234,000 | 1,400,000 | ||
Accrued interest receivable on loans | 9,300,000 | $ 9,300,000 | 8,800,000 | ||
Nonaccrual status, days past due | 90 days | ||||
Total nonaccrual loans | 54,800,000 | $ 54,800,000 | 57,300,000 | ||
Interest foregone on nonaccrual loans | 1,300,000 | $ 1,100,000 | 2,400,000 | $ 2,800,000 | |
Related Allowance | 10,368,000 | 10,368,000 | 5,667,000 | ||
Pre-modification outstanding recorded investment | 0 | 9,066,000 | |||
Recorded investment | 0 | 9,035,000 | 0 | 9,035,000 | |
Allowance for loan losses, troubled debt restructurings | 244,000 | 244,000 | |||
Troubled debt restructuring | 901,000 | 901,000 | |||
Consumer and other | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Overdrafts | 55,000 | 55,000 | 48,000 | ||
Related Allowance | 32,000 | 32,000 | $ 34,000 | ||
Pre-modification outstanding recorded investment | 0 | 208,000 | |||
Recorded investment | $ 0 | $ 214,000 | $ 0 | $ 214,000 | |
Reserved based energy loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of total funded loans | 0.40% | 0.40% | 0.60% | ||
Loans | $ 14,300,000 | $ 14,300,000 | $ 19,200,000 | ||
Energy related service industry loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of total funded loans | 0.80% | 0.80% | 1.10% | ||
Loans | $ 10,100,000 | $ 10,100,000 | $ 17,500,000 |
LOANS - Maturities and Rate Sen
LOANS - Maturities and Rate Sensitivity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | $ 3,222,108 | $ 3,190,485 | $ 3,123,355 |
Fixed rate | 674,525 | ||
Adjustable rate | 2,547,583 | ||
Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 766,318 | ||
Fixed rate | 141,480 | ||
Adjustable rate | 624,838 | ||
Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,682,355 | ||
Fixed rate | 429,239 | ||
Adjustable rate | 1,253,116 | ||
Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 773,435 | ||
Fixed rate | 103,806 | ||
Adjustable rate | 669,629 | ||
Commercial & industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,070,420 | 1,066,266 | |
Commercial & industrial | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 390,500 | ||
Commercial & industrial | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 620,518 | ||
Commercial & industrial | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 59,402 | ||
Mortgage warehouse | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 244,041 | 220,230 | |
Mortgage warehouse | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 126,702 | ||
Mortgage warehouse | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 117,339 | ||
Mortgage warehouse | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 0 | ||
Owner occupied commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 436,153 | 415,230 | |
Owner occupied commercial real estate | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 20,561 | ||
Owner occupied commercial real estate | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 169,800 | ||
Owner occupied commercial real estate | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 245,792 | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 1,092,036 | 1,067,779 | |
Commercial real estate | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 164,160 | ||
Commercial real estate | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 669,033 | ||
Commercial real estate | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 258,843 | ||
Construction, land & land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 130,533 | 164,952 | |
Construction, land & land development | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 41,620 | ||
Construction, land & land development | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 56,203 | ||
Construction, land & land development | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 32,710 | ||
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 235,192 | 238,580 | |
Residential mortgage | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 18,921 | ||
Residential mortgage | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 47,200 | ||
Residential mortgage | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 169,071 | ||
Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 13,733 | $ 17,448 | |
Consumer and other | Due in One Year or Less | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 3,854 | ||
Consumer and other | Due After One Year Through Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | 2,262 | ||
Consumer and other | Due After Five Years | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans held for investment | $ 7,617 |
LOANS - Related Party Loans (De
LOANS - Related Party Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 0 | $ 5,813 |
Advances | 0 | 0 |
Repayments | 0 | $ (5,813) |
Ending Balance | $ 0 |
LOANS - Acquired Loans (Details
LOANS - Acquired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Credit impaired acquired loans: | ||
Outstanding principal balance | $ 11,378 | $ 18,498 |
Recorded investment | 10,717 | 15,965 |
Discount, net | 661 | 2,533 |
Other acquired loans: | ||
Outstanding principal balance | 333,433 | 499,939 |
Deferred fees, net | (40) | (72) |
Recorded investment | 332,427 | 498,029 |
Discount, net | 966 | 1,838 |
Total acquired loans: | ||
Outstanding principal balance | 344,811 | 518,437 |
Deferred fees, net | (40) | (72) |
Recorded investment | 343,144 | 513,994 |
Discount, net | $ 1,627 | $ 4,371 |
LOANS - Changes in the Accretab
LOANS - Changes in the Accretable Yield for Impaired Acquired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in the accretable yield for credit impaired acquired loans | ||
Balance at beginning of period | $ 1,125 | $ 2,544 |
Reclassifications from non-accretable discount | 989 | 327 |
Accretion | (1,687) | (695) |
Balance at period end | $ 427 | $ 2,176 |
LOANS - Age Analysis of Loans (
LOANS - Age Analysis of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | $ 35,902 | $ 40,095 | |
90 Days or More Past Due | 907 | 375 | |
Total loans past due and still accruing | 36,809 | 40,470 | |
Nonaccrual | 54,829 | 57,338 | |
Purchased Credit Impaired | 10,717 | 15,965 | |
Current | 3,119,753 | 3,076,712 | |
Total loans held for investment | 3,222,108 | 3,190,485 | $ 3,123,355 |
Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 20,321 | 36,969 | |
90 Days or More Past Due | 85 | 375 | |
Total loans past due and still accruing | 20,406 | 37,344 | |
Nonaccrual | 50,444 | 51,860 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 2,808,114 | 2,587,287 | |
Total loans held for investment | 2,878,964 | 2,676,491 | 2,476,754 |
Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 15,581 | 3,126 | |
90 Days or More Past Due | 822 | 0 | |
Total loans past due and still accruing | 16,403 | 3,126 | |
Nonaccrual | 4,385 | 5,478 | |
Purchased Credit Impaired | 10,717 | 15,965 | |
Current | 311,639 | 489,425 | |
Total loans held for investment | 343,144 | 513,994 | 646,601 |
Commercial & industrial | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 1,070,420 | 1,066,266 | |
Commercial & industrial | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 4,396 | 15,917 | |
90 Days or More Past Due | 0 | 242 | |
Total loans past due and still accruing | 4,396 | 16,159 | |
Nonaccrual | 41,033 | 45,413 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 989,392 | 941,225 | |
Total loans held for investment | 1,034,821 | 1,002,797 | |
Commercial & industrial | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 4,310 | 0 | |
90 Days or More Past Due | 438 | 0 | |
Total loans past due and still accruing | 4,748 | 0 | |
Nonaccrual | 1,746 | 1,901 | |
Purchased Credit Impaired | 1,730 | 3,237 | |
Current | 27,375 | 58,331 | |
Total loans held for investment | 35,599 | 63,469 | 91,978 |
Mortgage warehouse | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 244,041 | 220,230 | |
Mortgage warehouse | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 0 | 0 | |
90 Days or More Past Due | 0 | 0 | |
Total loans past due and still accruing | 0 | 0 | |
Nonaccrual | 0 | 0 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 244,041 | 220,230 | |
Total loans held for investment | 244,041 | 220,230 | |
Mortgage warehouse | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 0 | 0 | |
Owner occupied commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 436,153 | 415,230 | |
Owner occupied commercial real estate | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 0 | 1,109 | |
90 Days or More Past Due | 0 | 0 | |
Total loans past due and still accruing | 0 | 1,109 | |
Nonaccrual | 5,225 | 0 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 368,467 | 326,797 | |
Total loans held for investment | 373,692 | 327,906 | 306,514 |
Owner occupied commercial real estate | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 1,837 | 233 | |
90 Days or More Past Due | 0 | 0 | |
Total loans past due and still accruing | 1,837 | 233 | |
Nonaccrual | 1,727 | 1,886 | |
Purchased Credit Impaired | 3,394 | 4,062 | |
Current | 55,503 | 81,143 | |
Total loans held for investment | 62,461 | 87,324 | 100,803 |
Commercial real estate | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 1,092,036 | 1,067,779 | |
Commercial real estate | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 14,800 | 16,250 | |
90 Days or More Past Due | 0 | 0 | |
Total loans past due and still accruing | 14,800 | 16,250 | |
Nonaccrual | 175 | 0 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 934,124 | 807,111 | |
Total loans held for investment | 949,099 | 823,361 | 807,341 |
Commercial real estate | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 8,290 | 1,885 | |
90 Days or More Past Due | 268 | 0 | |
Total loans past due and still accruing | 8,558 | 1,885 | |
Nonaccrual | 105 | 312 | |
Purchased Credit Impaired | 3,591 | 6,437 | |
Current | 130,683 | 235,784 | |
Total loans held for investment | 142,937 | 244,418 | 301,896 |
Construction, land & land development | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 130,533 | 164,952 | |
Construction, land & land development | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 0 | 2,255 | |
90 Days or More Past Due | 0 | 133 | |
Total loans past due and still accruing | 0 | 2,388 | |
Nonaccrual | 107 | 3,287 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 105,819 | 131,323 | |
Total loans held for investment | 105,926 | 136,998 | 153,522 |
Construction, land & land development | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 0 | 204 | |
90 Days or More Past Due | 0 | 0 | |
Total loans past due and still accruing | 0 | 204 | |
Nonaccrual | 700 | 714 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 23,907 | 27,036 | |
Total loans held for investment | 24,607 | 27,954 | 48,470 |
Residential mortgage | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 235,192 | 238,580 | |
Residential mortgage | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 968 | 1,311 | |
90 Days or More Past Due | 59 | 0 | |
Total loans past due and still accruing | 1,027 | 1,311 | |
Nonaccrual | 3,859 | 3,111 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 153,645 | 144,599 | |
Total loans held for investment | 158,531 | 149,021 | 137,918 |
Residential mortgage | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 1,144 | 804 | |
90 Days or More Past Due | 97 | 0 | |
Total loans past due and still accruing | 1,241 | 804 | |
Nonaccrual | 104 | 454 | |
Purchased Credit Impaired | 2,002 | 2,229 | |
Current | 73,314 | 86,072 | |
Total loans held for investment | 76,661 | 89,559 | 101,916 |
Consumer and other | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
Total loans held for investment | 13,733 | 17,448 | |
Consumer and other | Originated | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 157 | 127 | |
90 Days or More Past Due | 26 | 0 | |
Total loans past due and still accruing | 183 | 127 | |
Nonaccrual | 45 | 49 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 12,626 | 16,002 | |
Total loans held for investment | 12,854 | 16,178 | 19,105 |
Consumer and other | Acquired | |||
Financing Receivable, Recorded Investment, Aging [Abstract] | |||
30 - 89 Days Past Due | 0 | 0 | |
90 Days or More Past Due | 19 | 0 | |
Total loans past due and still accruing | 19 | 0 | |
Nonaccrual | 3 | 211 | |
Purchased Credit Impaired | 0 | 0 | |
Current | 857 | 1,059 | |
Total loans held for investment | $ 879 | $ 1,270 | $ 1,538 |
LOANS - Impaired Loans Summary
LOANS - Impaired Loans Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Impaired loans summary | ||
Nonaccrual loans | $ 52,885 | $ 47,892 |
Accruing loans past due 90 days or more | 907 | 375 |
Restructured loans - nonaccrual | 1,944 | 9,446 |
Restructured loans - accruing | 3,055 | 13,093 |
Total nonperforming loans | 58,791 | 70,806 |
Originated | ||
Impaired loans summary | ||
Nonaccrual loans | 49,543 | 43,797 |
Accruing loans past due 90 days or more | 85 | 375 |
Restructured loans - nonaccrual | 901 | 8,063 |
Restructured loans - accruing | 8 | 4,255 |
Total nonperforming loans | 50,537 | 56,490 |
Acquired | ||
Impaired loans summary | ||
Nonaccrual loans | 3,342 | 4,095 |
Accruing loans past due 90 days or more | 822 | 0 |
Restructured loans - nonaccrual | 1,043 | 1,383 |
Restructured loans - accruing | 3,047 | 8,838 |
Total nonperforming loans | $ 8,254 | $ 14,316 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment and Interest Income Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | $ 71,630 | $ 76,445 | $ 72,471 | $ 82,717 |
Interest Income Recognized | 174 | 181 | 360 | 335 |
Originated | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 59,879 | 44,381 | 59,565 | 45,298 |
Interest Income Recognized | 55 | 24 | 115 | 39 |
Originated | Commercial & industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 49,277 | 40,013 | 50,893 | 38,924 |
Interest Income Recognized | 55 | 3 | 115 | 11 |
Originated | Owner occupied commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,318 | 0 | 1,159 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Originated | Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,186 | 1,993 | 1,186 | 3,752 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Originated | Construction, land & land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 2,432 | 0 | 2,918 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Originated | Residential mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 3,619 | 2,251 | 3,358 | 2,455 |
Interest Income Recognized | 0 | 20 | 0 | 26 |
Originated | Consumer and other | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 47 | 124 | 51 | 167 |
Interest Income Recognized | 0 | 1 | 0 | 2 |
Acquired | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 11,751 | 32,064 | 12,906 | 37,419 |
Interest Income Recognized | 119 | 157 | 245 | 296 |
Acquired | Commercial & industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 8,956 | 19,949 | 9,940 | 24,636 |
Interest Income Recognized | 119 | 133 | 242 | 272 |
Acquired | Owner occupied commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 1,733 | 8,141 | 1,762 | 8,507 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Acquired | Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 107 | 1,266 | 111 | 1,619 |
Interest Income Recognized | 0 | 0 | 3 | 0 |
Acquired | Construction, land & land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 703 | 1,440 | 707 | 1,268 |
Interest Income Recognized | 0 | 15 | 0 | 15 |
Acquired | Residential mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 45 | 1,052 | 176 | 1,244 |
Interest Income Recognized | 0 | 9 | 0 | 9 |
Acquired | Consumer and other | ||||
Financing Receivable, Impaired [Line Items] | ||||
Average Recorded Investment | 207 | 216 | 210 | 145 |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
LOANS - Impaired Loans Individu
LOANS - Impaired Loans Individually Evaluated (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
With an allowance recorded: | ||
Related Allowance | $ 10,368 | $ 5,667 |
Total: | ||
Recorded Investment | 57,884 | 70,431 |
Unpaid Principal Balance | 58,186 | 70,713 |
Commercial & industrial | ||
With an allowance recorded: | ||
Related Allowance | 9,652 | 5,409 |
Total: | ||
Recorded Investment | 45,635 | 60,394 |
Unpaid Principal Balance | 45,906 | 60,655 |
Real estate | ||
With an allowance recorded: | ||
Related Allowance | 684 | 224 |
Total: | ||
Recorded Investment | 12,002 | 9,764 |
Unpaid Principal Balance | 12,038 | 9,791 |
Consumer and other | ||
With an allowance recorded: | ||
Related Allowance | 32 | 34 |
Total: | ||
Recorded Investment | 247 | 273 |
Unpaid Principal Balance | 242 | 267 |
Originated | ||
With no related allowance recorded: | ||
Recorded Investment | 22,087 | 36,028 |
Unpaid Principal Balance | 22,303 | 36,208 |
With an allowance recorded: | ||
Recorded Investment | 28,365 | 20,087 |
Unpaid Principal Balance | 28,428 | 20,168 |
Related Allowance | 10,213 | 5,663 |
Total: | ||
Recorded Investment | 50,452 | 56,115 |
Unpaid Principal Balance | 50,731 | 56,376 |
Originated | Commercial & industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 16,215 | 32,794 |
Unpaid Principal Balance | 16,423 | 32,974 |
With an allowance recorded: | ||
Recorded Investment | 24,826 | 16,862 |
Unpaid Principal Balance | 24,889 | 16,943 |
Related Allowance | 9,652 | 5,409 |
Originated | Owner occupied commercial real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 1,731 | |
Unpaid Principal Balance | 1,738 | |
With an allowance recorded: | ||
Recorded Investment | 3,494 | |
Unpaid Principal Balance | 3,494 | |
Related Allowance | 531 | |
Originated | Commercial real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 175 | |
Unpaid Principal Balance | 175 | |
Originated | Construction, land & land development | ||
With no related allowance recorded: | ||
Recorded Investment | 107 | 111 |
Unpaid Principal Balance | 108 | 111 |
With an allowance recorded: | ||
Recorded Investment | 3,176 | |
Unpaid Principal Balance | 3,176 | |
Related Allowance | 224 | |
Originated | Residential mortgage | ||
With no related allowance recorded: | ||
Recorded Investment | 3,859 | 3,111 |
Unpaid Principal Balance | 3,859 | 3,111 |
Originated | Consumer and other | ||
With no related allowance recorded: | ||
Recorded Investment | 12 | |
Unpaid Principal Balance | 12 | |
With an allowance recorded: | ||
Recorded Investment | 45 | 49 |
Unpaid Principal Balance | 45 | 49 |
Related Allowance | 30 | 30 |
Acquired | ||
With no related allowance recorded: | ||
Recorded Investment | 6,746 | 14,312 |
Unpaid Principal Balance | 6,753 | 14,333 |
With an allowance recorded: | ||
Recorded Investment | 686 | 4 |
Unpaid Principal Balance | 702 | 4 |
Related Allowance | 155 | 4 |
Total: | ||
Recorded Investment | 7,432 | 14,316 |
Unpaid Principal Balance | 7,455 | 14,337 |
Acquired | Commercial & industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 4,594 | 10,738 |
Unpaid Principal Balance | 4,594 | 10,738 |
Acquired | Owner occupied commercial real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 1,043 | |
Unpaid Principal Balance | 1,053 | |
With an allowance recorded: | ||
Recorded Investment | 684 | 1,886 |
Unpaid Principal Balance | 699 | 1,910 |
Related Allowance | 153 | |
Acquired | Commercial real estate | ||
With no related allowance recorded: | ||
Recorded Investment | 105 | 312 |
Unpaid Principal Balance | 105 | 312 |
Acquired | Construction, land & land development | ||
With no related allowance recorded: | ||
Recorded Investment | 700 | |
Unpaid Principal Balance | 702 | |
With an allowance recorded: | ||
Recorded Investment | 714 | |
Unpaid Principal Balance | 716 | |
Acquired | Residential mortgage | ||
With no related allowance recorded: | ||
Recorded Investment | 104 | 454 |
Unpaid Principal Balance | 105 | 455 |
Acquired | Consumer and other | ||
With no related allowance recorded: | ||
Recorded Investment | 200 | 208 |
Unpaid Principal Balance | 194 | 202 |
With an allowance recorded: | ||
Recorded Investment | 2 | 4 |
Unpaid Principal Balance | 3 | 4 |
Related Allowance | $ 2 | $ 4 |
LOANS - Credit Risk Profile of
LOANS - Credit Risk Profile of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | $ 10,717 | $ 15,965 | |
Total loans held for investment | 3,222,108 | 3,190,485 | $ 3,123,355 |
Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 2,801,654 | 2,767,798 | |
Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 194,803 | 146,999 | |
Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 88,942 | 130,126 | |
Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 71,163 | 72,259 | |
Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 54,829 | 57,338 | |
Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Commercial & industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 1,070,420 | 1,066,266 | |
Mortgage warehouse | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 244,041 | 220,230 | |
Owner occupied commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 436,153 | 415,230 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 1,092,036 | 1,067,779 | |
Construction, land & land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 130,533 | 164,952 | |
Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 235,192 | 238,580 | |
Consumer and other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 13,733 | 17,448 | |
Originated | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 2,878,964 | 2,676,491 | 2,476,754 |
Originated | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 2,542,691 | 2,382,372 | |
Originated | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 164,508 | 78,394 | |
Originated | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 51,970 | 98,694 | |
Originated | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 69,351 | 65,171 | |
Originated | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 50,444 | 51,860 | |
Originated | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Commercial & industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 1,034,821 | 1,002,797 | |
Originated | Commercial & industrial | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 895,299 | 889,709 | |
Originated | Commercial & industrial | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 65,009 | 22,648 | |
Originated | Commercial & industrial | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 22,153 | 5,605 | |
Originated | Commercial & industrial | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 11,327 | 39,422 | |
Originated | Commercial & industrial | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 41,033 | 45,413 | |
Originated | Commercial & industrial | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Mortgage warehouse | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 244,041 | 220,230 | |
Originated | Mortgage warehouse | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 244,041 | 220,230 | |
Originated | Mortgage warehouse | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Mortgage warehouse | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Mortgage warehouse | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Mortgage warehouse | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Mortgage warehouse | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Owner occupied commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 373,692 | 327,906 | 306,514 |
Originated | Owner occupied commercial real estate | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 342,441 | 314,497 | |
Originated | Owner occupied commercial real estate | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 18,036 | 3,096 | |
Originated | Owner occupied commercial real estate | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 4,649 | 7,658 | |
Originated | Owner occupied commercial real estate | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 3,341 | 2,655 | |
Originated | Owner occupied commercial real estate | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 5,225 | 0 | |
Originated | Owner occupied commercial real estate | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 949,099 | 823,361 | 807,341 |
Originated | Commercial real estate | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 799,637 | 681,691 | |
Originated | Commercial real estate | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 77,763 | 45,149 | |
Originated | Commercial real estate | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 23,652 | 85,431 | |
Originated | Commercial real estate | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 47,872 | 11,090 | |
Originated | Commercial real estate | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 175 | 0 | |
Originated | Commercial real estate | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Construction, land & land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 105,926 | 136,998 | 153,522 |
Originated | Construction, land & land development | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 94,902 | 121,893 | |
Originated | Construction, land & land development | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 3,686 | 970 | |
Originated | Construction, land & land development | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 1,457 | 0 | |
Originated | Construction, land & land development | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 5,774 | 10,848 | |
Originated | Construction, land & land development | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 107 | 3,287 | |
Originated | Construction, land & land development | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 158,531 | 149,021 | 137,918 |
Originated | Residential mortgage | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 153,588 | 138,239 | |
Originated | Residential mortgage | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 14 | 6,529 | |
Originated | Residential mortgage | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 59 | 0 | |
Originated | Residential mortgage | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 1,011 | 1,142 | |
Originated | Residential mortgage | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 3,859 | 3,111 | |
Originated | Residential mortgage | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Consumer and other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 12,854 | 16,178 | 19,105 |
Originated | Consumer and other | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 12,783 | 16,113 | |
Originated | Consumer and other | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 2 | |
Originated | Consumer and other | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Originated | Consumer and other | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 26 | 14 | |
Originated | Consumer and other | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 45 | 49 | |
Originated | Consumer and other | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 10,717 | 15,965 | |
Total loans held for investment | 343,144 | 513,994 | 646,601 |
Acquired | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 258,963 | 385,426 | |
Acquired | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 30,295 | 68,605 | |
Acquired | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 36,972 | 31,432 | |
Acquired | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 1,812 | 7,088 | |
Acquired | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 4,385 | 5,478 | |
Acquired | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Commercial & industrial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 1,730 | 3,237 | |
Total loans held for investment | 35,599 | 63,469 | 91,978 |
Acquired | Commercial & industrial | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 17,645 | 38,000 | |
Acquired | Commercial & industrial | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 6,596 | 3,172 | |
Acquired | Commercial & industrial | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 7,750 | 11,101 | |
Acquired | Commercial & industrial | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 132 | 6,058 | |
Acquired | Commercial & industrial | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 1,746 | 1,901 | |
Acquired | Commercial & industrial | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Mortgage warehouse | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans held for investment | 0 | 0 | |
Acquired | Owner occupied commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 3,394 | 4,062 | |
Total loans held for investment | 62,461 | 87,324 | 100,803 |
Acquired | Owner occupied commercial real estate | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 47,744 | 72,592 | |
Acquired | Owner occupied commercial real estate | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 7,314 | 8,499 | |
Acquired | Owner occupied commercial real estate | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 2,003 | 0 | |
Acquired | Owner occupied commercial real estate | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 279 | 285 | |
Acquired | Owner occupied commercial real estate | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 1,727 | 1,886 | |
Acquired | Owner occupied commercial real estate | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 3,591 | 6,437 | |
Total loans held for investment | 142,937 | 244,418 | 301,896 |
Acquired | Commercial real estate | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 107,919 | 173,765 | |
Acquired | Commercial real estate | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 4,232 | 43,775 | |
Acquired | Commercial real estate | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 26,822 | 20,129 | |
Acquired | Commercial real estate | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 268 | 0 | |
Acquired | Commercial real estate | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 105 | 312 | |
Acquired | Commercial real estate | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Construction, land & land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 24,607 | 27,954 | 48,470 |
Acquired | Construction, land & land development | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 11,401 | 14,549 | |
Acquired | Construction, land & land development | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 11,951 | 12,136 | |
Acquired | Construction, land & land development | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Construction, land & land development | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 555 | 555 | |
Acquired | Construction, land & land development | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 700 | 714 | |
Acquired | Construction, land & land development | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Residential mortgage | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 2,002 | 2,229 | |
Total loans held for investment | 76,661 | 89,559 | 101,916 |
Acquired | Residential mortgage | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 73,597 | 85,461 | |
Acquired | Residential mortgage | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 202 | 1,023 | |
Acquired | Residential mortgage | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 197 | 202 | |
Acquired | Residential mortgage | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 559 | 190 | |
Acquired | Residential mortgage | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 104 | 454 | |
Acquired | Residential mortgage | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Consumer and other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Purchased Credit Impaired | 0 | 0 | |
Total loans held for investment | 879 | 1,270 | $ 1,538 |
Acquired | Consumer and other | Grade 1 - 4 (Pass) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 657 | 1,059 | |
Acquired | Consumer and other | Grade 5 (Watch) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 0 | 0 | |
Acquired | Consumer and other | Grade 6 (Special Mention) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 200 | 0 | |
Acquired | Consumer and other | Grade 7 (Substandard-Accrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 19 | 0 | |
Acquired | Consumer and other | Grade 8 (Substandard-Nonaccrual) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | 3 | 211 | |
Acquired | Consumer and other | Grade 9 (Doubtful) | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Loans, credit risk profile | $ 0 | $ 0 |
LOANS - Troubled Debt Restructu
LOANS - Troubled Debt Restructurings Identified (Details) | 6 Months Ended | |
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 9 |
Pre-modification outstanding recorded investment | $ 0 | $ 9,066,000 |
Recorded investment | $ 0 | $ 9,035,000 |
Commercial & industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 3 |
Pre-modification outstanding recorded investment | $ 0 | $ 2,526,000 |
Recorded investment | $ 0 | $ 2,509,000 |
Owner occupied commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 3 |
Pre-modification outstanding recorded investment | $ 0 | $ 5,501,000 |
Recorded investment | $ 0 | $ 5,492,000 |
Construction, land & land development | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 2 |
Pre-modification outstanding recorded investment | $ 0 | $ 831,000 |
Recorded investment | $ 0 | $ 820,000 |
Consumer and other | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 0 | 1 |
Pre-modification outstanding recorded investment | $ 0 | $ 208,000 |
Recorded investment | $ 0 | $ 214,000 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Allowance for loan losses: | |||||||
Beginning balance | $ 38,233 | $ 31,936 | $ 31,220 | $ 26,364 | |||
Provision | 1,897 | 1,510 | 11,560 | 7,655 | |||
Charge-offs | (5,352) | (1,553) | (8,075) | (2,968) | |||
Recoveries | 308 | 98 | 381 | 940 | |||
Ending balance | 35,086 | 31,991 | 35,086 | 31,991 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | $ 3,153,507 | $ 3,104,089 | $ 3,032,593 | ||||
Individually evaluated for impairment | 57,884 | 70,431 | 70,256 | ||||
Purchased credit impaired | 10,717 | 15,965 | 20,506 | ||||
Total loans held for investment | 3,222,108 | 3,190,485 | 3,123,355 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 24,608 | 25,478 | 24,506 | ||||
Individually evaluated for impairment | 10,368 | 5,667 | 7,468 | ||||
Purchased credit impaired | 110 | 75 | 17 | ||||
Total allowance for loan losses | 38,233 | 31,936 | 31,220 | 26,364 | 35,086 | 31,220 | 31,991 |
Commercial & industrial | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 1,070,420 | 1,066,266 | |||||
Owner occupied commercial real estate | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 436,153 | 415,230 | |||||
Commercial real estate | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 1,092,036 | 1,067,779 | |||||
Construction, land & land development | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 130,533 | 164,952 | |||||
Residential mortgage | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 235,192 | 238,580 | |||||
Consumer and other | |||||||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 13,733 | 17,448 | |||||
Originated | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 36,535 | 29,111 | 29,978 | 23,855 | |||
Provision | 2,952 | 1,816 | 12,167 | 7,507 | |||
Charge-offs | (5,346) | (434) | (8,055) | (1,577) | |||
Recoveries | 11 | 36 | 62 | 744 | |||
Ending balance | 34,152 | 30,529 | 34,152 | 30,529 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 2,828,512 | 2,620,375 | 2,430,570 | ||||
Individually evaluated for impairment | 50,452 | 56,116 | 46,184 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 2,878,964 | 2,676,491 | 2,476,754 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 23,940 | 24,315 | 23,450 | ||||
Individually evaluated for impairment | 10,212 | 5,663 | 7,079 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 36,535 | 29,111 | 29,978 | 23,855 | 34,152 | 29,978 | 30,529 |
Originated | Commercial & industrial | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 16,654 | ||||||
Ending balance | 20,527 | 16,606 | 20,527 | 16,606 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 1,237,821 | 1,173,371 | 1,010,269 | ||||
Individually evaluated for impairment | 41,041 | 49,656 | 42,085 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 1,278,862 | 1,223,027 | 1,052,354 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 10,875 | 11,245 | 9,556 | ||||
Individually evaluated for impairment | 9,652 | 5,409 | 7,050 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 20,527 | 16,606 | 16,654 | 16,606 | 20,527 | 16,654 | 16,606 |
Originated | Commercial & industrial | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 23,113 | 15,155 | 16,654 | 9,491 | |||
Provision | 2,713 | 1,736 | 11,869 | 7,970 | |||
Charge-offs | (5,300) | (308) | (7,999) | (1,443) | |||
Recoveries | 1 | 23 | 3 | 588 | |||
Ending balance | 20,527 | 16,606 | 20,527 | 16,606 | |||
Loans evaluated for impairment: | |||||||
Total loans held for investment | 1,034,821 | 1,002,797 | |||||
Allowance for loans losses evaluated: | |||||||
Total allowance for loan losses | 23,113 | 15,155 | 16,654 | 9,491 | 20,527 | 16,654 | 16,606 |
Originated | Owner occupied commercial real estate | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 2,871 | 2,763 | 2,748 | 2,609 | |||
Provision | 480 | 62 | 603 | 216 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 3,351 | 2,825 | 3,351 | 2,825 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 368,467 | 327,906 | 306,514 | ||||
Individually evaluated for impairment | 5,225 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 373,692 | 327,906 | 306,514 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 2,820 | 2,748 | 2,825 | ||||
Individually evaluated for impairment | 531 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 2,871 | 2,763 | 2,748 | 2,609 | 3,351 | 2,748 | 2,825 |
Originated | Commercial real estate | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 7,766 | 8,347 | 7,738 | 8,576 | |||
Provision | 385 | (162) | 413 | (391) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 8,151 | 8,185 | 8,151 | 8,185 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 948,924 | 823,361 | 805,362 | ||||
Individually evaluated for impairment | 175 | 0 | 1,979 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 949,099 | 823,361 | 807,341 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 8,151 | 7,738 | 8,185 | ||||
Individually evaluated for impairment | 0 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 7,766 | 8,347 | 7,738 | 8,576 | 8,151 | 7,738 | 8,185 |
Originated | Construction, land & land development | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 1,461 | 1,536 | 1,481 | 1,852 | |||
Provision | (613) | 40 | (633) | (276) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 848 | 1,576 | 848 | 1,576 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 105,819 | 133,711 | 153,522 | ||||
Individually evaluated for impairment | 107 | 3,287 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 105,926 | 136,998 | 153,522 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 848 | 1,257 | 1,576 | ||||
Individually evaluated for impairment | 0 | 224 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 1,461 | 1,536 | 1,481 | 1,852 | 848 | 1,481 | 1,576 |
Originated | Residential mortgage | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 1,159 | 1,119 | 1,136 | 1,134 | |||
Provision | (52) | 37 | (31) | (3) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 3 | 9 | 5 | 34 | |||
Ending balance | 1,110 | 1,165 | 1,110 | 1,165 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 154,672 | 145,910 | 135,879 | ||||
Individually evaluated for impairment | 3,859 | 3,111 | 2,039 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 158,531 | 149,021 | 137,918 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 1,110 | 1,136 | 1,165 | ||||
Individually evaluated for impairment | 0 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 1,159 | 1,119 | 1,136 | 1,134 | 1,110 | 1,136 | 1,165 |
Originated | Consumer and other | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 165 | 191 | 221 | 193 | |||
Provision | 39 | 103 | (54) | (9) | |||
Charge-offs | (46) | (126) | (56) | (134) | |||
Recoveries | 7 | 4 | 54 | 122 | |||
Ending balance | 165 | 172 | 165 | 172 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 12,809 | 16,116 | 19,024 | ||||
Individually evaluated for impairment | 45 | 62 | 81 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 12,854 | 16,178 | 19,105 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 136 | 191 | 143 | ||||
Individually evaluated for impairment | 29 | 30 | 29 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 165 | 191 | 221 | 193 | 165 | 221 | 172 |
Acquired | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 1,698 | 2,825 | 1,242 | 2,509 | |||
Provision | (1,055) | (306) | (607) | 148 | |||
Charge-offs | (6) | (1,119) | (20) | (1,391) | |||
Recoveries | 297 | 62 | 319 | 196 | |||
Ending balance | 934 | 1,462 | 934 | 1,462 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 324,995 | 483,714 | 602,023 | ||||
Individually evaluated for impairment | 7,432 | 14,315 | 24,072 | ||||
Purchased credit impaired | 10,717 | 15,965 | 20,506 | ||||
Total loans held for investment | 343,144 | 513,994 | 646,601 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 668 | 1,163 | 1,056 | ||||
Individually evaluated for impairment | 156 | 4 | 389 | ||||
Purchased credit impaired | 110 | 75 | 17 | ||||
Total allowance for loan losses | 1,698 | 2,825 | 1,242 | 2,509 | 934 | 1,242 | 1,462 |
Acquired | Commercial & industrial | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 42 | 586 | 35 | 1,260 | |||
Provision | (26) | (321) | (25) | (838) | |||
Charge-offs | 0 | (158) | 0 | (335) | |||
Recoveries | 3 | 50 | 9 | 70 | |||
Ending balance | 19 | 157 | 19 | 157 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 29,275 | 49,494 | 74,661 | ||||
Individually evaluated for impairment | 4,594 | 10,738 | 15,029 | ||||
Purchased credit impaired | 1,730 | 3,237 | 2,288 | ||||
Total loans held for investment | 35,599 | 63,469 | 91,978 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 19 | 35 | 0 | ||||
Individually evaluated for impairment | 0 | 0 | 157 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 42 | 586 | 35 | 1,260 | 19 | 35 | 157 |
Acquired | Owner occupied commercial real estate | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 513 | 1,064 | 0 | 0 | |||
Provision | (360) | (103) | 153 | 957 | |||
Charge-offs | 0 | (961) | 0 | (961) | |||
Recoveries | 0 | 0 | 0 | 4 | |||
Ending balance | 153 | 0 | 153 | 0 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 57,340 | 81,376 | 88,714 | ||||
Individually evaluated for impairment | 1,727 | 1,886 | 6,958 | ||||
Purchased credit impaired | 3,394 | 4,062 | 5,131 | ||||
Total loans held for investment | 62,461 | 87,324 | 100,803 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 0 | 0 | 0 | ||||
Individually evaluated for impairment | 153 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 513 | 1,064 | 0 | 0 | 153 | 0 | 0 |
Acquired | Commercial real estate | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 574 | 340 | 658 | 437 | |||
Provision | (289) | 144 | (375) | 47 | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 5 | 3 | 7 | 3 | |||
Ending balance | 290 | 487 | 290 | 487 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 139,241 | 237,669 | 291,289 | ||||
Individually evaluated for impairment | 105 | 312 | 0 | ||||
Purchased credit impaired | 3,591 | 6,437 | 10,607 | ||||
Total loans held for investment | 142,937 | 244,418 | 301,896 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 290 | 658 | 487 | ||||
Individually evaluated for impairment | 0 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 574 | 340 | 658 | 437 | 290 | 658 | 487 |
Acquired | Construction, land & land development | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 20 | 9 | 0 | 115 | |||
Provision | 18 | (6) | 38 | (91) | |||
Charge-offs | 0 | 0 | 0 | (95) | |||
Recoveries | 0 | 0 | 0 | 74 | |||
Ending balance | 38 | 3 | 38 | 3 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 23,907 | 27,240 | 46,984 | ||||
Individually evaluated for impairment | 700 | 714 | 1,468 | ||||
Purchased credit impaired | 0 | 0 | 18 | ||||
Total loans held for investment | 24,607 | 27,954 | 48,470 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 38 | 0 | 3 | ||||
Individually evaluated for impairment | 0 | 0 | 0 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | 20 | 9 | 0 | 115 | 38 | 0 | 3 |
Acquired | Residential mortgage | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 539 | 611 | 542 | 685 | |||
Provision | (396) | (20) | (412) | (126) | |||
Charge-offs | 0 | 0 | 0 | 0 | |||
Recoveries | 287 | 7 | 300 | 39 | |||
Ending balance | 430 | 598 | 430 | 598 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 74,555 | 86,876 | 99,052 | ||||
Individually evaluated for impairment | 104 | 454 | 402 | ||||
Purchased credit impaired | 2,002 | 2,229 | 2,462 | ||||
Total loans held for investment | 76,661 | 89,559 | 101,916 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 320 | 467 | 561 | ||||
Individually evaluated for impairment | 0 | 0 | 20 | ||||
Purchased credit impaired | 110 | 75 | 17 | ||||
Total allowance for loan losses | 539 | 611 | 542 | 685 | 430 | 542 | 598 |
Acquired | Consumer and other | |||||||
Allowance for loan losses: | |||||||
Beginning balance | 10 | 215 | 7 | 12 | |||
Provision | (2) | 0 | 14 | 199 | |||
Charge-offs | (6) | 0 | (20) | 0 | |||
Recoveries | 2 | 2 | 3 | 6 | |||
Ending balance | 4 | 217 | 4 | 217 | |||
Loans evaluated for impairment: | |||||||
Collectively evaluated for impairment | 677 | 1,059 | 1,323 | ||||
Individually evaluated for impairment | 202 | 211 | 215 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total loans held for investment | 879 | 1,270 | 1,538 | ||||
Allowance for loans losses evaluated: | |||||||
Collectively evaluated for impairment | 1 | 3 | 5 | ||||
Individually evaluated for impairment | 3 | 4 | 212 | ||||
Purchased credit impaired | 0 | 0 | 0 | ||||
Total allowance for loan losses | $ 10 | $ 215 | $ 7 | $ 12 | $ 4 | $ 7 | $ 217 |
PREMISES AND EQUIPMENT (Details
PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment, gross | $ 47,499 | $ 47,499 | $ 41,742 | ||
Less accumulated depreciation | (18,321) | (18,321) | (17,740) | ||
Total | 29,178 | 29,178 | 24,002 | ||
Depreciation | 453 | $ 515 | 955 | $ 1,048 | |
Land | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment, gross | 8,457 | 8,457 | 7,660 | ||
Buildings and improvements | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment, gross | 28,563 | 28,563 | 23,598 | ||
Furniture, fixtures and equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Premises and equipment, gross | $ 10,479 | $ 10,479 | $ 10,484 |
GOODWILL AND CORE DEPOSIT INT68
GOODWILL AND CORE DEPOSIT INTANGIBLES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jun. 30, 2018 | |
Goodwill | ||||||
Beginning of period | $ 85,291 | $ 85,291 | $ 85,291 | |||
End of the period | $ 85,291 | 85,291 | 85,291 | |||
Core Deposit Intangibles | ||||||
Beginning of period | 8,503 | 9,975 | 9,975 | |||
Less amortization | (622) | (760) | (1,472) | |||
End of period | 7,881 | 7,881 | 8,503 | |||
Amortization of intangible assets | 622 | 760 | 1,472 | |||
Expected future amortization expense | ||||||
Total | 7,881 | 8,503 | $ 9,975 | $ 9,975 | $ 7,881 | |
Core deposit intangibles | ||||||
Core Deposit Intangibles | ||||||
Less amortization | (306) | $ (380) | ||||
End of period | 7,881 | 7,881 | ||||
Amortization of intangible assets | 306 | $ 380 | ||||
Expected future amortization expense | ||||||
2,018 | 573 | |||||
2,019 | 1,080 | |||||
2,020 | 993 | |||||
2,021 | 905 | |||||
2,022 | 818 | |||||
Thereafter | 3,512 | |||||
Total | $ 7,881 | $ 7,881 | $ 7,881 | |||
Core deposit intangibles | Minimum | ||||||
Core Deposit Intangibles | ||||||
Intangible asset useful life | 6 years | |||||
Core deposit intangibles | Maximum | ||||||
Core Deposit Intangibles | ||||||
Intangible asset useful life | 19 years |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Maturities of certificates and other time deposits $100,000 or more | ||
2,018 | $ 493,872 | $ 889,231 |
2,019 | 629,791 | 247,595 |
2,020 | 138,430 | 83,005 |
2,021 | 20,699 | 13,922 |
2,022 | 26,780 | 28,579 |
Thereafter | 10,470 | |
Total | 1,320,042 | 1,262,332 |
Time deposits disclosures | ||
Certificates and other time deposits that meet or exceed FDIC limit | 609,000 | 482,000 |
Brokered time deposits | 179,500 | $ 123,400 |
Brokered interest-bearing deposits | 75,100 | |
Brokered noninterest-bearing deposits | $ 39,100 | |
Percentage of brokered deposits of total deposits | 8.60% | 4.70% |
SECURITIES SOLD UNDER AGREEME70
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER BORROWED FUNDS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Other borrowed funds disclosures | ||
Borrowings outstanding | $ 416,141,000 | $ 330,173,000 |
Average interest rate of outstanding balances | 2.16% | |
Federal Home Loan Bank advances maturity period | 2 years | 1 year |
Federal Home Loan Bank advances | ||
Other borrowed funds disclosures | ||
Borrowings outstanding | $ 412,000,000 | $ 325,000,000 |
Total borrowing capacity available | 777,700,000 | $ 948,200,000 |
Average interest rate of outstanding balances | 1.41% | |
Repurchase agreements | ||
Other borrowed funds disclosures | ||
Borrowings outstanding | 4,141,000 | $ 5,173,000 |
Federal Reserve Bank | ||
Other borrowed funds disclosures | ||
Borrowings outstanding | 0 | 0 |
Available borrowing capacity | 487,900,000 | 384,500,000 |
Federal Funds Purchased | ||
Other borrowed funds disclosures | ||
Federal Funds Purchased outstanding | $ 0 | $ 0 |
SUBORDINATED DEBENTURES AND S71
SUBORDINATED DEBENTURES AND SUBORDINATED NOTES (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | May 19, 2017 | Dec. 08, 2016 | |
Subordinated Borrowing [Line Items] | ||||
Subordinated notes | $ 33,782,000 | $ 33,709,000 | $ 33,900,000 | |
Proceeds utilized | 32,800,000 | |||
Unamortized debt issuance costs | (1,218,000) | (1,291,000) | ||
Outstanding subordinated debentures | 22,200,000 | |||
Purchase discount on subordinated debt | $ 7,900,000 | |||
Period of callable debentures | 5 years | |||
Subordinated Notes, Fixed to Floating 8.50% | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated notes | $ 35,000,000 | $ 35,000,000 | $ 34,000,000 | $ 35,000,000 |
Interest rate | 8.50% | 8.50% | ||
Subordinated Notes, Fixed to Floating 8.50% | After December 15, 2021 | LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 6.685% | |||
Subordinated Unregistered Notes, Fixed to Floating 8.50% | ||||
Subordinated Borrowing [Line Items] | ||||
Subordinated notes | $ 1,000,000 | |||
Trust Preferred Securities Subject to Mandatory Redemption [Member] | LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 2.33575% | |||
Patriot Bancshares Capital Trust I | ||||
Subordinated Borrowing [Line Items] | ||||
Outstanding subordinated debentures | $ 5,155,000 | |||
Trust preferred securities outstanding | $ 5,000,000 | |||
Patriot Bancshares Capital Trust I | Minimum | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 1.85% | |||
Patriot Bancshares Capital Trust I | Maximum | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 11.90% | |||
Patriot Bancshares Capital Trust II | ||||
Subordinated Borrowing [Line Items] | ||||
Outstanding subordinated debentures | $ 17,011,000 | |||
Trust preferred securities outstanding | $ 16,500,000 | |||
Patriot Bancshares Capital Trust II | Minimum | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 1.80% | |||
Patriot Bancshares Capital Trust II | Maximum | ||||
Subordinated Borrowing [Line Items] | ||||
Interest rate spread on variable rate | 11.90% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Jan. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Components of income tax expense (benefit) | ||||||
Income tax expense for the period | $ 4,283,000 | $ 6,985,000 | $ 6,605,000 | $ 10,927,000 | ||
Effective Tax Rate | 20.70% | 35.10% | 20.40% | 35.20% | ||
Net deferred tax assets | $ 12,528,000 | $ 12,528,000 | $ 8,758,000 | |||
Valuation allowance | $ 0 | $ 0 | ||||
Income tax expense recorded under new standards | $ 5,800,000 | |||||
Accumulated Other Comprehensive Loss | Accounting Standards Update 2018-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income tax expense reclassification | $ (1,400,000) | |||||
Retained Earnings | Accounting Standards Update 2018-02 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Income tax expense reclassification | $ 1,400,000 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) $ in Thousands | Apr. 03, 2018shares | Aug. 07, 2014shares | Jun. 30, 2010shares | May 18, 2007shares | Jun. 21, 2006shares | Jan. 23, 2018shares | Jun. 30, 2018USD ($)stock_planshares | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)stock_planshares | Jun. 30, 2017USD ($) | Mar. 30, 2018shares | Dec. 31, 2017shares |
Employee Benefits | ||||||||||||
Number of stock option plans frozen | stock_plan | 2 | 2 | ||||||||||
Percentage of participant's contribution matched by Company | 100.00% | |||||||||||
Percentage of participant's salary matched by Company | 6.00% | |||||||||||
Company contributions | $ | $ 386 | $ 348 | $ 759 | $ 704 | ||||||||
Restricted Stock Units (RSUs) | ||||||||||||
Employee Benefits | ||||||||||||
Total stock-based compensation expense | $ | 753 | 196 | 1,500 | 406 | ||||||||
Stock Option | ||||||||||||
Employee Benefits | ||||||||||||
Total stock-based compensation expense | $ | $ 451 | 159 | $ 893 | 296 | ||||||||
2014 Plan | ||||||||||||
Employee Benefits | ||||||||||||
Number of shares or units authorized for grants (in shares) | 1,273,838 | |||||||||||
Shares reserved for future issuance (in shares) | 3,393 | |||||||||||
Increase in shares reserved for future issuance (in shares) | 650,000 | |||||||||||
Options outstanding (in shares) | 403,503 | 403,503 | 428,168 | |||||||||
2014 Plan | Performance Options | ||||||||||||
Employee Benefits | ||||||||||||
Units outstanding (in shares) | 207,859 | 207,859 | ||||||||||
2014 Plan | Restricted Stock Units (RSUs) | ||||||||||||
Employee Benefits | ||||||||||||
Number of units granted (in shares) | 275,000 | |||||||||||
Units outstanding (in shares) | 502,181 | 502,181 | 322,875 | |||||||||
2010 Option Plan | Performance Options | ||||||||||||
Employee Benefits | ||||||||||||
Outstanding performance options vested (in shares) | 256,242 | |||||||||||
Outstanding performance options cancelled (in shares) | 586,119 | |||||||||||
2010 Option Plan | Employee And Directors Stock Options | ||||||||||||
Employee Benefits | ||||||||||||
Number of shares or units authorized for grants (in shares) | 2,239,906 | |||||||||||
Vesting period | 4 years | |||||||||||
2010 Option Plan | Employee And Directors Time Based Options | ||||||||||||
Employee Benefits | ||||||||||||
Options outstanding (in shares) | 433,094 | 433,094 | 367,213 | |||||||||
2010 Option Plan | Employee And Directors Performance Options | ||||||||||||
Employee Benefits | ||||||||||||
Options outstanding (in shares) | 237,999 | 237,999 | 992,864 | |||||||||
2010 Option Plan | Employee And Directors Super Performance Options | ||||||||||||
Employee Benefits | ||||||||||||
Options outstanding (in shares) | 305,694 | 305,694 | 308,054 | |||||||||
2006 Option Plan | ||||||||||||
Employee Benefits | ||||||||||||
Number of shares or units authorized for grants (in shares) | 450,000 | |||||||||||
Options outstanding (in shares) | 27,500 | 27,500 | 87,500 | |||||||||
Vesting period | 4 years | |||||||||||
Term of awards | 10 years | |||||||||||
SAR Plan | Stock Appreciation Rights (SARs) | ||||||||||||
Employee Benefits | ||||||||||||
Number of shares or units authorized for grants (in shares) | 200,000 | |||||||||||
Units outstanding (in shares) | 41,500 | 41,500 | 63,000 | |||||||||
Term of awards | 10 years | |||||||||||
Allocated share based compensation expense reversal | $ | $ (16) | $ 169 | $ 111 | $ 357 |
OFF-BALANCE SHEET ARRANGEMENT74
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Future Cash Payments Associated With Contractual Obligations (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Certificates and other time deposits | ||
1 year or less | $ 1,001,668 | |
More than 1 year but less than 3 years | 274,123 | |
3 years or more but less than 5 years | 44,251 | |
Total | 1,320,042 | $ 1,262,332 |
Federal Home Loan Bank advances | ||
1 year or less | 365,502 | |
More than 1 year but less than 3 years | 50,874 | |
Total | 416,376 | |
Subordinated debentures and subordinated notes | ||
1 year or less | 4,019 | |
More than 1 year but less than 3 years | 3,884 | |
3 years or more but less than 5 years | 10,077 | |
5 years or more | 82,560 | |
Total | 100,540 | |
Operating leases | ||
1 year or less | 1,690 | |
More than 1 year but less than 3 years | 2,587 | |
3 years or more but less than 5 years | 1,781 | |
5 years or more | 2,493 | |
Total | 8,551 | |
Total | ||
1 year or less | 1,372,879 | |
More than 1 year but less than 3 years | 331,468 | |
3 years or more but less than 5 years | 56,109 | |
5 years or more | 85,053 | |
Total | 1,845,509 | |
Interest payments on Federal Home Loan Bank advances to be paid over future periods. | 4,400 | |
Interest included in payments for subordinated debentures | $ 43,400 |
OFF-BALANCE SHEET ARRANGEMENT75
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Summary of Noncancelable Future Operating Lease Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Noncancelable future operating lease commitments | ||||
2,018 | $ 877 | $ 877 | ||
2,019 | 1,610 | 1,610 | ||
2,020 | 1,237 | 1,237 | ||
2,021 | 1,099 | 1,099 | ||
2,022 | 817 | 817 | ||
Thereafter | 2,911 | 2,911 | ||
Total | 8,551 | 8,551 | ||
Rent expense under noncancelable operating lease obligations, net of income from noncancelable subleases | $ 594 | $ 578 | $ 1,200 | $ 1,200 |
OFF-BALANCE SHEET ARRANGEMENT76
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Summary of Various Financial Instruments With Off-balance Sheet Risk Outstanding (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Financial instruments with off-balance sheet risk | |
1 year or less | $ 335,277 |
More than 1 year but less than 3 years | 191,258 |
3 years or more but less than 5 years | 85,615 |
5 years or more | 87,725 |
Total | 699,875 |
Commitments to extend credit | |
Financial instruments with off-balance sheet risk | |
1 year or less | 325,665 |
More than 1 year but less than 3 years | 190,944 |
3 years or more but less than 5 years | 85,515 |
5 years or more | 87,085 |
Total | 689,209 |
Standby and commercial letters of credit | |
Financial instruments with off-balance sheet risk | |
1 year or less | 9,612 |
More than 1 year but less than 3 years | 314 |
3 years or more but less than 5 years | 100 |
5 years or more | 640 |
Total | $ 10,666 |
DERIVATIVE FINANCIAL INSTRUME77
DERIVATIVE FINANCIAL INSTRUMENTS - Summary of the Interest Rate Swaps Outstanding (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Interest rate swaps | Customer | ||
Derivative [Line Items] | ||
Maturity | 3 years 10 months 25 days | 2 years 9 months 18 days |
Interest rate swaps | Customer | Minimum | ||
Derivative [Line Items] | ||
Fixed Rate | 4.38% | 2.19% |
Interest rate swaps | Customer | Maximum | ||
Derivative [Line Items] | ||
Fixed Rate | 6.94% | 5.72% |
Interest rate swaps | Customer | LIBOR | Minimum | ||
Derivative [Line Items] | ||
Floating Rate | 3.00% | 0.00% |
Interest rate swaps | Customer | LIBOR | Maximum | ||
Derivative [Line Items] | ||
Floating Rate | 4.25% | 4.25% |
Interest rate swaps | Correspondent | ||
Derivative [Line Items] | ||
Maturity | 3 years 10 months 25 days | 2 years 9 months 18 days |
Interest rate swaps | Correspondent | Minimum | ||
Derivative [Line Items] | ||
Fixed Rate | 4.38% | 2.19% |
Interest rate swaps | Correspondent | Maximum | ||
Derivative [Line Items] | ||
Fixed Rate | 6.94% | 5.72% |
Interest rate swaps | Correspondent | LIBOR | Minimum | ||
Derivative [Line Items] | ||
Floating Rate | 3.00% | 0.00% |
Interest rate swaps | Correspondent | LIBOR | Maximum | ||
Derivative [Line Items] | ||
Floating Rate | 4.25% | 4.25% |
Interest rate swaps | Not Designated as Hedging Instrument | Customer | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | $ 159,205 | $ 173,304 |
Derivative asset, Fair Value | 2,515 | 880 |
Interest rate swaps | Not Designated as Hedging Instrument | Correspondent | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 159,205 | 173,304 |
Derivative liability, Fair Value | $ (2,564) | $ (901) |
Interest rate caps and collars | Customer | ||
Derivative [Line Items] | ||
Maturity | 1 year 2 months 12 days | 1 year 8 months 12 days |
Interest rate caps and collars | Customer | Minimum | ||
Derivative [Line Items] | ||
Fixed Rate | 4.55% | 4.55% |
Interest rate caps and collars | Customer | Maximum | ||
Derivative [Line Items] | ||
Fixed Rate | 6.00% | 6.00% |
Interest rate caps and collars | Customer | LIBOR | Minimum | ||
Derivative [Line Items] | ||
Floating Rate | 3.00% | 3.00% |
Interest rate caps and collars | Customer | LIBOR | Maximum | ||
Derivative [Line Items] | ||
Floating Rate | 3.75% | 3.75% |
Interest rate caps and collars | Correspondent | ||
Derivative [Line Items] | ||
Maturity | 1 year 2 months 12 days | 1 year 8 months 12 days |
Interest rate caps and collars | Correspondent | Minimum | ||
Derivative [Line Items] | ||
Fixed Rate | 4.55% | 4.55% |
Interest rate caps and collars | Correspondent | Maximum | ||
Derivative [Line Items] | ||
Fixed Rate | 6.00% | 6.00% |
Interest rate caps and collars | Correspondent | LIBOR | Minimum | ||
Derivative [Line Items] | ||
Floating Rate | 3.00% | 3.00% |
Interest rate caps and collars | Correspondent | LIBOR | Maximum | ||
Derivative [Line Items] | ||
Floating Rate | 3.75% | 3.75% |
Interest rate caps and collars | Not Designated as Hedging Instrument | Customer | ||
Derivative [Line Items] | ||
Derivative asset, Notional Amount | $ 37,030 | $ 37,466 |
Derivative asset, Fair Value | 185 | 75 |
Interest rate caps and collars | Not Designated as Hedging Instrument | Correspondent | ||
Derivative [Line Items] | ||
Derivative liability, Notional Amount | 37,030 | 37,466 |
Derivative liability, Fair Value | $ (185) | $ (75) |
DERIVATIVE FINANCIAL INSTRUME78
DERIVATIVE FINANCIAL INSTRUMENTS - Notional Amounts and Estimated Fair Values of the Non-hedging Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivative disclosures | ||
Estimated Fair Value, Asset Derivative | $ 3,130 | $ 1,824 |
Estimated Fair Value, Liability Derivative | 3,179 | 1,848 |
Offsetting derivatives assets/liabilities, Asset Derivative | (122) | (369) |
Offsetting derivatives assets/liabilities, Liability Derivative | (122) | (369) |
Net derivatives included in the consolidated balance sheets, Asset Derivative | 3,008 | 1,455 |
Net derivatives included in the consolidated balance sheets, Liability Derivative | 3,057 | 1,479 |
Interest rate swaps | Correspondent | ||
Derivative disclosures | ||
Notional Amount | 159,205 | 173,304 |
Estimated Fair Value, Asset Derivative | 2,757 | 1,326 |
Estimated Fair Value, Liability Derivative | 242 | 448 |
Interest rate swaps | Customer | ||
Derivative disclosures | ||
Notional Amount | 159,205 | 173,304 |
Estimated Fair Value, Asset Derivative | 188 | 423 |
Estimated Fair Value, Liability Derivative | 2,752 | 1,325 |
Interest rate caps and collars | Correspondent | ||
Derivative disclosures | ||
Notional Amount | 37,030 | 37,466 |
Estimated Fair Value, Asset Derivative | 185 | 75 |
Interest rate caps and collars | Customer | ||
Derivative disclosures | ||
Notional Amount | 37,030 | 37,466 |
Estimated Fair Value, Liability Derivative | $ 185 | $ 75 |
REGULATORY MATTERS (Details)
REGULATORY MATTERS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2016 | |
Regulatory Capital Requirements [Abstract] | ||||
Required phase-in capital conservation buffer | 1.875% | |||
Total capital (to risk weighted assets) | ||||
Actual - Amount | $ 487,002 | $ 487,002 | $ 455,754 | |
Actual - Ratio | 13.20% | 13.20% | 12.70% | |
For Capital Adequacy Purposes - Amount | $ 295,174 | $ 295,174 | $ 287,840 | |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% | 8.00% | |
Tier 1 capital (to risk weighted assets) | ||||
Actual - Amount | $ 417,047 | $ 417,047 | $ 390,690 | |
Actual - Ratio | 11.30% | 11.30% | 10.90% | |
For Capital Adequacy Purposes - Amount | $ 221,380 | $ 221,380 | $ 215,880 | |
For Capital Adequacy Purposes - Ratio | 6.00% | 6.00% | 6.00% | |
Common equity tier 1 capital | ||||
Actual - Amount | $ 403,475 | $ 403,475 | $ 377,328 | |
Actual - Ratio | 10.90% | 10.90% | 10.50% | |
For Capital Adequacy Purposes - Amount | $ 166,035 | $ 166,035 | $ 161,910 | |
For Capital Adequacy Purposes - Ratio | 0.045 | 0.045 | 0.045 | |
Tier I capital (to average assets) | ||||
Actual - Amount | $ 417,047 | $ 417,047 | $ 390,690 | |
Actual - Ratio | 10.00% | 10.00% | 9.50% | |
For Capital Adequacy Purposes - Amount | $ 167,184 | $ 167,184 | $ 164,632 | |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% | 4.00% | |
Dividends paid | $ 6,200 | $ 1,000 | ||
The Bank | ||||
Total capital (to risk weighted assets) | ||||
Actual - Amount | $ 477,452 | $ 477,452 | $ 444,198 | |
Actual - Ratio | 13.00% | 13.00% | 12.40% | |
For Capital Adequacy Purposes - Amount | $ 294,851 | $ 294,851 | $ 286,648 | |
For Capital Adequacy Purposes - Ratio | 8.00% | 8.00% | 8.00% | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 368,564 | $ 368,564 | $ 358,310 | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Ratio | 10.00% | 10.00% | 10.00% | |
Tier 1 capital (to risk weighted assets) | ||||
Actual - Amount | $ 441,279 | $ 441,279 | $ 415,542 | |
Actual - Ratio | 12.00% | 12.00% | 11.60% | |
For Capital Adequacy Purposes - Amount | $ 221,138 | $ 221,138 | $ 214,986 | |
For Capital Adequacy Purposes - Ratio | 6.00% | 6.00% | 6.00% | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 294,851 | $ 294,851 | $ 286,648 | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Ratio | 8.00% | 8.00% | 8.00% | |
Common equity tier 1 capital | ||||
Actual - Amount | $ 441,279 | $ 441,279 | $ 415,542 | |
Actual - Ratio | 12.00% | 12.00% | 11.60% | |
For Capital Adequacy Purposes - Amount | $ 165,854 | $ 165,854 | $ 161,239 | |
For Capital Adequacy Purposes - Ratio | 0.045 | 0.045 | 0.045 | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 239,566 | $ 239,566 | $ 232,901 | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Ratio | 6.50% | 6.50% | 6.50% | |
Tier I capital (to average assets) | ||||
Actual - Amount | $ 441,279 | $ 441,279 | $ 415,542 | |
Actual - Ratio | 10.60% | 10.60% | 10.10% | |
For Capital Adequacy Purposes - Amount | $ 167,123 | $ 167,123 | $ 164,390 | |
For Capital Adequacy Purposes - Ratio | 4.00% | 4.00% | 4.00% | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Amount | $ 208,904 | $ 208,904 | $ 205,487 | |
To be Categorized as Well Capitalized under Prompt Corrective Action Provisions - Ratio | 5.00% | 5.00% | 5.00% | |
Minimum | ||||
Tier 1 capital (to risk weighted assets) | ||||
For Capital Adequacy Purposes - Ratio | 0.625% | |||
Maximum | ||||
Tier 1 capital (to risk weighted assets) | ||||
For Capital Adequacy Purposes - Ratio | 2.50% |
DISCLOSURES ABOUT FAIR VALUE 80
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||
Available-for-sale securities | $ 635,333 | $ 705,539 |
Level 1 | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Available-for-sale securities | 635,333 | 705,539 |
Loans held for sale | 4,992 | 7,156 |
Level 3 | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Recurring | ||
Financial Assets: | ||
Available-for-sale securities | 635,333 | 705,539 |
Loans held for sale | 4,992 | |
Financial Liabilities: | ||
Derivative liability | 1,325 | |
Recurring | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 1,326 | |
Recurring | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 423 | |
Financial Liabilities: | ||
Derivative liability | 448 | |
Recurring | Level 1 | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Loans held for sale | 0 | |
Recurring | Level 1 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Recurring | Level 1 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Recurring | Level 2 | ||
Financial Assets: | ||
Available-for-sale securities | 635,333 | 705,539 |
Loans held for sale | 4,992 | |
Recurring | Level 2 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 1,326 | |
Recurring | Level 2 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 423 | |
Financial Liabilities: | ||
Derivative liability | 448 | |
Recurring | Level 3 | ||
Financial Assets: | ||
Available-for-sale securities | 0 | 0 |
Loans held for sale | 0 | |
Recurring | Level 3 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Recurring | Level 3 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Correspondent | Recurring | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 2,757 | |
Financial Liabilities: | ||
Derivative liability | 242 | |
Correspondent | Recurring | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 185 | 75 |
Correspondent | Recurring | Level 1 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Correspondent | Recurring | Level 1 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Correspondent | Recurring | Level 2 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 2,757 | |
Financial Liabilities: | ||
Derivative liability | 242 | |
Correspondent | Recurring | Level 2 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 185 | 75 |
Correspondent | Recurring | Level 3 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | |
Correspondent | Recurring | Level 3 | Interest rate caps and collars | ||
Financial Assets: | ||
Derivative asset | 0 | 0 |
Customer | Recurring | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 188 | |
Financial Liabilities: | ||
Derivative liability | 2,752 | |
Customer | Recurring | Interest rate caps and collars | ||
Financial Liabilities: | ||
Derivative liability | 185 | 75 |
Customer | Recurring | Level 1 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Customer | Recurring | Level 1 | Interest rate caps and collars | ||
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Customer | Recurring | Level 2 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 188 | |
Financial Liabilities: | ||
Derivative liability | 2,752 | 1,325 |
Customer | Recurring | Level 2 | Interest rate caps and collars | ||
Financial Liabilities: | ||
Derivative liability | 185 | 75 |
Customer | Recurring | Level 3 | Interest rate swaps | ||
Financial Assets: | ||
Derivative asset | 0 | |
Financial Liabilities: | ||
Derivative liability | 0 | 0 |
Customer | Recurring | Level 3 | Interest rate caps and collars | ||
Financial Liabilities: | ||
Derivative liability | $ 0 | $ 0 |
DISCLOSURES ABOUT FAIR VALUE 81
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | $ 57,884 | $ 70,431 | |
Other real estate owned | 802 | 802 | |
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned | 802 | $ 802 | |
Nonrecurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 28,535 | $ 26,265 | |
Impaired loans, adjustment | 8,598 | 7,152 | |
Other real estate owned | 0 | 0 | |
Other real estate owned, adjustment | 0 | 0 | |
Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impaired loans | 28,535 | 26,265 | |
Other real estate owned | $ 0 | $ 0 |
DISCLOSURES ABOUT FAIR VALUE 82
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Financial Assets: | |||
Available-for-sale securities | $ 635,333 | $ 705,539 | |
Held-to-maturity securities | 63,993 | 13,146 | |
Loans held for investment | 3,222,108 | 3,190,485 | $ 3,123,355 |
Real estate acquired by foreclosure | 802 | 802 | |
Level 1 | |||
Financial Assets: | |||
Cash and short term investments | 231,251 | 140,681 | |
Available-for-sale securities | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Other securities | 42,962 | 26,617 | |
Loans held for sale | 0 | 0 | |
Loans held for investment | 0 | 0 | |
Real estate acquired by foreclosure | 0 | 0 | |
Total | 274,213 | 167,298 | |
Financial Liabilities: | |||
Deposits | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Other borrowed funds | 0 | 0 | |
Subordinated debentures and subordinated notes | 0 | 0 | |
Total | 0 | 0 | |
Level 2 | |||
Financial Assets: | |||
Cash and short term investments | 0 | 0 | |
Available-for-sale securities | 635,333 | 705,539 | |
Held-to-maturity securities | 63,993 | 13,146 | |
Other securities | 0 | 0 | |
Loans held for sale | 4,992 | 7,156 | |
Loans held for investment | 0 | 0 | |
Real estate acquired by foreclosure | 0 | 0 | |
Total | 704,318 | 725,841 | |
Financial Liabilities: | |||
Deposits | 3,429,588 | 3,392,144 | |
Securities sold under agreements to repurchase | 4,141 | 5,173 | |
Other borrowed funds | 412,026 | 324,873 | |
Subordinated debentures and subordinated notes | 46,170 | 45,356 | |
Total | 3,891,925 | 3,767,546 | |
Level 3 | |||
Financial Assets: | |||
Cash and short term investments | 0 | 0 | |
Available-for-sale securities | 0 | 0 | |
Held-to-maturity securities | 0 | 0 | |
Other securities | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans held for investment | 3,201,649 | 3,206,145 | |
Real estate acquired by foreclosure | 802 | 802 | |
Total | 3,202,451 | 3,206,947 | |
Financial Liabilities: | |||
Deposits | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Other borrowed funds | 0 | 0 | |
Subordinated debentures and subordinated notes | 0 | 0 | |
Total | 0 | 0 | |
Carrying Value | |||
Financial Assets: | |||
Cash and short term investments | 231,251 | 140,681 | |
Available-for-sale securities | 635,333 | 705,539 | |
Held-to-maturity securities | 64,530 | 13,275 | |
Other securities | 42,962 | 26,617 | |
Loans held for sale | 4,992 | 7,156 | |
Loans held for investment | 3,187,022 | 3,190,485 | |
Real estate acquired by foreclosure | 802 | 802 | |
Total | 4,166,892 | 4,084,555 | |
Financial Liabilities: | |||
Deposits | 3,426,050 | 3,397,143 | |
Securities sold under agreements to repurchase | 4,141 | 5,173 | |
Other borrowed funds | 412,000 | 325,000 | |
Subordinated debentures and subordinated notes | 48,019 | 47,737 | |
Total | 3,890,210 | 3,775,053 | |
Fair Value | |||
Financial Assets: | |||
Cash and short term investments | 231,251 | 140,681 | |
Available-for-sale securities | 635,333 | 705,539 | |
Held-to-maturity securities | 63,993 | 13,146 | |
Other securities | 42,962 | 26,617 | |
Loans held for sale | 4,992 | 7,156 | |
Loans held for investment | 3,201,649 | 3,206,145 | |
Real estate acquired by foreclosure | 802 | 802 | |
Total | 4,180,982 | 4,100,086 | |
Financial Liabilities: | |||
Deposits | 3,429,588 | 3,392,144 | |
Securities sold under agreements to repurchase | 4,141 | 5,173 | |
Other borrowed funds | 412,026 | 324,873 | |
Subordinated debentures and subordinated notes | 46,170 | 45,356 | |
Total | $ 3,891,925 | $ 3,767,546 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Jul. 23, 2018$ / shares |
Subsequent Event [Line Items] | |
Quarterly dividends declared (in dollars per share) | $ 0.10 |
Acquirer | Veritex | |
Subsequent Event [Line Items] | |
Amount each share of company stock converted in merger receives in return | 0.79 |