Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 27, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | CADE | ||
Entity Registrant Name | Cadence Bancorporation | ||
Entity Central Index Key | 0001614184 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 125,817,545 | ||
Entity Public Float | $ 2.6 | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-38058 | ||
Entity Tax Identification Number | 47-1329858 | ||
Entity Address, Address Line One | 2800 Post Oak Boulevard | ||
Entity Address, Address Line Two | Suite 3800 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77056 | ||
City Area Code | 713 | ||
Local Phone Number | 871-4000 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Class A Common Stock | ||
Security Exchange Name | NYSE | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Company’s Proxy Statement relating to the 2020 Annual Meeting of Shareholders, which will be filed within 120 days after December 31, 2019, are incorporated by reference into Part II, Item 5 and Part III, Items 10-14 of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 252,447 | $ 237,342 |
Interest-bearing deposits with banks | 725,343 | 523,436 |
Federal funds sold | 10,974 | 18,502 |
Total cash and cash equivalents | 988,764 | 779,280 |
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
FRB and FHLB stock | 76,752 | 50,752 |
Loans held for sale | 87,649 | 59,461 |
Loans | 12,983,655 | 10,053,923 |
Less: allowance for credit losses | (119,643) | (94,378) |
Net loans | 12,864,012 | 9,959,545 |
Premises and equipment, net | 127,867 | 63,621 |
Cash surrender value of life insurance | 183,400 | 109,850 |
Net deferred tax asset | 33,224 | |
Goodwill | 485,336 | 307,083 |
Other intangible assets, net | 105,613 | 7,317 |
Other assets | 512,244 | 172,900 |
Total Assets | 17,800,229 | 12,730,285 |
Liabilities: | ||
Noninterest-bearing deposits | 3,833,704 | 2,454,016 |
Interest-bearing deposits | 10,909,090 | 8,254,673 |
Total deposits | 14,742,794 | 10,708,689 |
Short-term borrowings | 1,106 | |
Federal Home Loan Bank advances | 100,000 | 150,000 |
Senior debt | 49,938 | 184,801 |
Subordinated debt | 182,712 | 98,910 |
Junior subordinated debentures | 37,445 | 36,953 |
Notes payable | 2,078 | |
Net deferred tax liability | 24,982 | |
Other liabilities | 199,434 | 111,552 |
Total liabilities | 15,339,383 | 11,292,011 |
Shareholders' Equity: | ||
Common stock $0.01 par value, authorized 300,000,000 shares; 132,984,756 shares issued and 127,597,569 shares outstanding at December 31, 2019 and 83,625,000 shares issued and 82,497,009 shares outstanding at December 31, 2018 | 1,330 | 836 |
Additional paid-in capital | 1,873,063 | 1,041,000 |
Treasury stock, at cost, 5,387,187 shares and 1,127,991 shares, respectively | (100,752) | (22,010) |
Retained earnings | 572,503 | 461,360 |
Accumulated other comprehensive income (loss) | 114,702 | (42,912) |
Total shareholders' equity | 2,460,846 | 1,438,274 |
Total Liabilities and Shareholders' Equity | $ 17,800,229 | $ 12,730,285 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 132,984,756 | 83,625,000 |
Common Stock, Shares, Outstanding | 127,597,569 | 82,497,009 |
Treasury stock, shares outstanding | 5,387,187 | 1,127,991 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | |||
Interest and fees on loans | $ 796,285 | $ 470,144 | $ 359,308 |
Interest and dividends on securities: | |||
Taxable | 42,450 | 23,793 | 18,089 |
Tax-exempt | 6,306 | 9,541 | 13,360 |
Other interest income | 15,035 | 9,188 | 6,110 |
Total interest income | 860,076 | 512,666 | 396,867 |
INTEREST EXPENSE | |||
Interest on time deposits | 69,550 | 42,093 | 22,213 |
Interest on other deposits | 118,528 | 58,354 | 27,486 |
Interest on borrowed funds | 20,825 | 24,478 | 20,952 |
Total interest expense | 208,903 | 124,925 | 70,651 |
Net interest income | 651,173 | 387,741 | 326,216 |
Provision for credit losses | 111,027 | 12,700 | 9,735 |
Net interest income after provision for credit losses | 540,146 | 375,041 | 316,481 |
NONINTEREST INCOME | |||
Investment advisory revenue | 24,890 | 21,347 | 20,517 |
Trust services revenue | 18,066 | 17,760 | 19,264 |
Credit related fees | 21,265 | 16,124 | 12,166 |
Service charges on deposit accounts | 20,503 | 15,432 | 15,272 |
Bankcard fees | 8,486 | 5,951 | 7,310 |
Payroll processing revenue | 5,149 | ||
SBA income | 7,232 | ||
Other service fees | 7,412 | 5,345 | 4,414 |
Securities gains (losses), net | 2,018 | (1,853) | (146) |
Other income | 15,904 | 14,532 | 21,077 |
Total noninterest income | 130,925 | 94,638 | 99,874 |
NONINTEREST EXPENSE | |||
Salaries and employee benefits | 213,874 | 154,905 | 139,118 |
Premises and equipment | 44,637 | 30,478 | 28,921 |
Merger related expenses | 28,497 | 2,983 | |
Intangible asset amortization | 23,862 | 2,755 | 4,652 |
Other expense | 97,900 | 67,180 | 60,665 |
Total noninterest expense | 408,770 | 258,301 | 233,356 |
Income before income taxes | 262,301 | 211,378 | 182,999 |
Income tax expense | 60,343 | 45,117 | 80,646 |
Net income | $ 201,958 | $ 166,261 | $ 102,353 |
Weighted average common shares outstanding (Basic) | 128,913,962 | 83,562,109 | 81,072,945 |
Weighted average common shares outstanding (Diluted) | 129,017,599 | 84,375,289 | 81,605,015 |
Earnings per common share (Basic) | $ 1.56 | $ 1.99 | $ 1.26 |
Earnings per common share (Diluted) | $ 1.56 | $ 1.97 | $ 1.25 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 201,958 | $ 166,261 | $ 102,353 |
Unrealized gains (losses) on securities available-for-sale: | |||
Net unrealized gains (losses), net of income taxes of $13,641, $(7,067), and $10,558 | 45,436 | (23,544) | 21,513 |
Less reclassification adjustments for gains (losses) realized in net income, net of income taxes of $466, $(428), and $(54) | 1,552 | (1,425) | (92) |
Net unrealized gains (losses) on securities available-for-sale | 43,884 | (22,119) | 21,605 |
Unrealized gains (losses) on derivative instruments designated as cash flow hedges: | |||
Net unrealized gains (losses), net of income taxes of $35,192, $(1,777), and $(783) | 117,219 | (5,934) | (643) |
Less reclassification adjustments for gains (losses) realized in net income, net of income taxes of $1,146, $(1,193), and $1,336 | 3,817 | (3,971) | 2,339 |
Net change in unrealized gains (losses) on derivative instruments | 113,402 | (1,963) | (2,982) |
Change in pension liability: | |||
Actuarial (losses) gains, net of income taxes of $(3), $62, and $11 | (133) | 203 | 37 |
Less reclassification adjustments for gains (losses) realized in net income, net of income taxes of $(210), $0, and $(26) | (461) | (84) | |
Net unrealized gains on pension liability | 328 | 203 | 121 |
Other comprehensive gains (losses), net of tax | 157,614 | (23,879) | 18,744 |
Comprehensive income | $ 359,572 | $ 142,382 | $ 121,097 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized gains (losses), net of income taxes | $ 13,641 | $ (7,067) | $ 10,558 |
Reclassification adjustments for gains (losses) realized in net income, net of income taxes | 466 | (428) | (54) |
Net unrealized gains (losses), net of income taxes | 35,192 | (1,777) | (783) |
Reclassification adjustments for gains (losses) realized in net income, net of income taxes | 1,146 | (1,193) | 1,336 |
Actuarial (losses) gains, net of income taxes | (3) | 62 | 11 |
Reclassification adjustments for gains (losses) realized in net income, net of income taxes | $ (210) | $ 0 | $ (26) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Class A Common Shares Outstanding | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated OCI |
Balance at Dec. 31, 2016 | $ 1,080,498 | $ 750 | $ 879,665 | $ 232,614 | $ (32,531) | ||
Balance, Shares at Dec. 31, 2016 | 75,000 | ||||||
Net income | 102,353 | 102,353 | |||||
Equity-based compensation cost | 1,880 | 1,880 | |||||
Other comprehensive income | 18,744 | 18,744 | |||||
Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) | 5,246 | (5,246) | |||||
Issuance of common shares, net of issuance costs | 155,581 | 86 | 155,495 | ||||
Issuance of common shares, net of issuance costs, Shares | 8,625 | ||||||
Balance at Dec. 31, 2017 | 1,359,056 | 836 | 1,037,040 | 340,213 | (19,033) | ||
Balance, Shares at Dec. 31, 2017 | 83,625 | ||||||
Net income | 166,261 | 166,261 | |||||
Equity-based compensation cost | 3,960 | 3,960 | |||||
Cash dividends declared | (45,995) | (45,995) | |||||
Dividend equivalents on restricted stock units (Note 23) | (119) | (119) | |||||
Cumulative effect of adoption of new accounting principles | 1,000 | 1,000 | |||||
Purchase of treasury stock - at cost | (22,010) | $ (22,010) | |||||
Purchase of treasury stock - at cost, shares | (1,128) | ||||||
Other comprehensive income | (23,879) | (23,879) | |||||
Balance at Dec. 31, 2018 | 1,438,274 | 836 | 1,041,000 | (22,010) | 461,360 | (42,912) | |
Balance, Shares at Dec. 31, 2018 | 82,497 | ||||||
Net income | 201,958 | 201,958 | |||||
Equity-based compensation cost | 7,086 | 7,086 | |||||
Cash dividends declared | (90,095) | (90,095) | |||||
Dividend equivalents on restricted stock units (Note 23) | (720) | (720) | |||||
Purchase of treasury stock - at cost | (79,123) | (79,123) | |||||
Purchase of treasury stock - at cost, shares | (4,279) | ||||||
Issuance of common shares for State Bank acquisition, net of issuance costs (Note 2) | 826,113 | 492 | 825,621 | ||||
Issuance of common shares for State Bank acquisition, net of issuance costs, shares | 49,232 | ||||||
Value of stock warrants assumed from State Bank (Note 2) | 251 | 251 | |||||
Common stock issuance costs | (580) | (580) | |||||
Issuance of common shares for restricted stock unit vesting (Note 20) | 2 | 2 | |||||
Issuance of common shares for restricted stock unit vesting, shares | 128 | ||||||
Issuance of treasury stock shares for exercise of stock warrants | 66 | (315) | 381 | ||||
Issuance of treasury stock shares for exercise of stock warrants, shares | 20 | ||||||
Other comprehensive income | 157,614 | 157,614 | |||||
Balance at Dec. 31, 2019 | $ 2,460,846 | $ 1,330 | $ 1,873,063 | $ (100,752) | $ 572,503 | $ 114,702 | |
Balance, Shares at Dec. 31, 2019 | 127,598 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends declared per common share | $ 0.70 | $ 0.55 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income | $ 201,958 | $ 166,261 | $ 102,353 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Depreciation and amortization/accretion | 2,163 | 20,366 | 13,635 |
Deferred income tax expense | 11,840 | 4,464 | 44,388 |
Provision for loan losses | 111,027 | 12,700 | 9,735 |
(Gain) loss on sale of securities, net | (2,018) | 1,853 | 146 |
Gain on sale of loans, net | (4,633) | (1,422) | (2,670) |
Gain on sale of insurance subsidiary assets | (4,871) | ||
Proceeds from paydowns and sales of loans held for sale | 355,524 | 290,733 | 195,130 |
Origination of loans held for sale | (221,442) | (271,680) | (237,404) |
Purchase of interest rate collar | (127,800) | ||
Decrease (increase) in interest receivable | 1,626 | (8,985) | (7,904) |
(Increase) decrease in other assets | (43,670) | (21,644) | 4,079 |
Increase in other liabilities | 19,297 | 1,610 | 18,078 |
Other, net | 2,259 | 1,784 | 5,132 |
Net cash provided by operating activities | 306,131 | 191,169 | 144,698 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Cash received in acquisitions, net | 409,137 | ||
Purchase of securities available-for-sale | (1,205,553) | (342,500) | (369,786) |
Proceeds from sales of securities available-for-sale | 393,716 | 268,799 | 161,401 |
Proceeds from maturities, calls and paydowns of securities available-for-sale | 352,452 | 111,801 | 96,728 |
Purchases of other securities, net | (26,000) | (743) | (8,516) |
Proceeds from sales of loans held for sale | 69,933 | 20,894 | 17,613 |
Decrease (increase) in loans, net | 287,556 | (1,848,463) | (847,428) |
Proceeds from sale of insurance subsidiary assets | 15,876 | ||
Purchase of premises and equipment | (12,960) | (10,698) | (6,428) |
Proceeds from disposition of foreclosed property | 6,365 | 7,947 | 17,220 |
Other, net | (9,246) | 5,138 | (11,907) |
Net cash provided by (used in) investing activities | 265,400 | (1,771,949) | (951,103) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
(Decrease) increase in deposits, net | (65,848) | 1,697,174 | 994,778 |
Net change in securities sold under agreements to repurchase | (25,005) | 80 | (2,468) |
Net change in short term FHLB advances | (150,000) | 150,000 | |
Issuance of subordinated debentures | 83,474 | ||
Proceeds from long term FHLB advances | 100,000 | ||
Repayment or purchase of senior debt | (134,922) | (9,600) | |
Proceeds from issuance of common stock | 155,581 | ||
Repurchase of common stock | (79,123) | (22,010) | |
Cash dividends paid on common stock | (90,095) | (45,995) | |
Other, net | (528) | ||
Net cash (used in) provided by financing activities | (362,047) | 1,629,249 | 1,288,291 |
Net increase in cash and cash equivalents | 209,484 | 48,469 | 481,886 |
Cash and cash equivalents at beginning of period | 779,280 | 730,811 | 248,925 |
Cash and cash equivalents at end of period | $ 988,764 | $ 779,280 | $ 730,811 |
Summary of Accounting Policies
Summary of Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Accounting Policies | Note 1—Summary of Accounting Policies Basis of Presentation and Consolidation The Company and its subsidiaries follow accounting principles generally accepted in the United States of America, including, where applicable, general practices within the banking industry. The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. The assessment of whether or not the Company has a controlling interest (i.e., the primary beneficiary) in a variable-interest entity (“VIE”) is performed on an on-going basis. All equity investments in non-consolidated VIEs are included in “other assets” in the Company’s consolidated balance sheets (Note 21). Certain amounts reported in prior years have been reclassified to conform to the 2019 presentation. These reclassifications did not materially impact the Company’s consolidated balance sheets or consolidated statements of income. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, Subsequent Events Nature of Operations The Company’s primary subsidiary is the Bank. The Bank operates under a national bank charter and is subject to regulation by the Office of the Comptroller of the Currency (“OCC”). The Bank provides full banking services in six southern states: Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas. The Bank’s subsidiaries include: • Linscomb & Williams, Inc. — financial advisory firm; • Cadence Investment Services, Inc. — provides investment and insurance products; and • Altera Payroll and Insurance, Inc. — provides payroll processing services and the sale of certain insurance products. The Company and the Bank also have certain other non-operating and immaterial subsidiaries. Use of Estimates The preparation of financial statements in conformity with 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 reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the allowance for credit losses, valuation of and accounting for acquired credit impaired loans, valuation of goodwill, intangible assets and deferred income taxes. Business Combinations Assets and liabilities acquired in business combinations are accounted for under the acquisition method of accounting and, accordingly, are recorded at their estimated fair values on the acquisition date. The Company generally records provisional amounts at the time of acquisition based on the information available. These provisional estimates of fair values may be adjusted for a period of up to one year from the acquisition date if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during this period are recognized in the current reporting period. The excess cost over fair value of net assets acquired is recorded as goodwill. On January 1, 2019, we completed our merger with State Bank Financial Corporation and on July 1, 2019, we completed our acquisition of Wealth and Pension Services Group, Inc. (see Note 2). Sale of Subsidiary On May 31, 2018, the Company completed the sale of the assets of its subsidiary Cadence Capital, Inc. (formerly known as Town & Country Insurance Agency, Inc.) to an unrelated third party, selling $11.1 million in net assets, including $10.9 million in goodwill and intangibles. This transaction resulted in a pre-tax gain of $4.9 million recorded in noninterest income, offset by $1.1 million in sale related expenses recorded in noninterest expenses during the second quarter of 2018. Securities Securities are accounted for as follows: Securities Available-for-Sale Securities classified as available-for-sale are those debt securities that are intended to be held for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including movements in interest rates, liquidity needs, security risk assessments, changes in the mix of assets and liabilities and other similar factors. These securities are carried at their estimated fair value, and the net unrealized gain or loss is reported as accumulated other comprehensive income, net of tax, until realized. Premiums and discounts are recognized in interest income using the effective interest method. Realized gains and losses on the sale of securities available-for-sale are determined by specific identification using the adjusted cost on a trade date basis and are included in securities gains (losses), net. Securities Held-to-Maturity Securities classified as held-to-maturity are those debt securities for which there is a positive intent and ability to hold to maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount, computed by the effective interest method. The Company had no securities held-to-maturity at December 31, 2019 or 2018. Trading Account Securities Trading account securities are securities that are held for the purpose of selling them at a profit. The Company had no trading account securities as of December 31, 2019 or 2018. FHLB and FRB Stock The Company has ownership in Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”) stock which do not have readily determinable fair values and no quoted market values, as ownership is restricted to member institutions, and all transactions take place at par value with the FHLB or FRB as the only purchaser. Therefore, the Company accounts for these investments as long-term assets and carries them at cost. Management’s determination as to whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the par value (cost) rather than recognizing temporary declines in fair value. In order to become a member of the Federal Reserve System, regulations require that the Company hold a certain amount of FRB capital stock. Additionally, investment in FHLB stock is required for membership in the FHLB system and in relation to the level of FHLB advances. Derivative Financial Instruments and Hedging Activities Derivative instruments are accounted for under the requirements of ASC Topic 815, Derivatives and Hedging The fair value of derivative positions outstanding is included in other assets and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows. The Company does not speculate using derivative instruments. Interest Rate Lock Commitments In the ordinary course of business, the Company enters into certain commitments with customers in connection with residential mortgage loan applications for loans the Company intends to sell . Such commitments are considered derivatives under current accounting guidance and are required to be recorded at fair value. The change in fair value of these instruments is reflected currently in the mortgage banking revenue of the consolidated statements of income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Forward Sales Commitments The Company enters into forward sales commitments of mortgage-backed securities (“MBS”) with investors to mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to customers. During the period from commitment date to closing date, the Company is subject to the risk that market rates of interest may change. In an effort to mitigate such risk, forward delivery sales commitments, under which the Company agrees to deliver certain MBS, are established. These commitments are non-hedging derivatives in accordance with current accounting guidance and recorded at fair value, with changes in fair value reflected currently in the mortgage banking revenue of the consolidated statements of income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Interest Rate Swap, Floor, Cap, and Collar Agreements Not Designated as Hedging Derivatives The Company enters into interest rate swap, floor, cap and collar agreements on commercial loans with customers to meet the financing needs and interest rate risk management needs of its customers. At the same time, the Company enters into offsetting interest rate swap agreements with a financial institution in order to minimize the Company’s interest rate risk. These interest rate agreements are non-hedging derivatives and are recorded at fair value with changes in fair value reflected in noninterest income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Interest Rate Swap, Floor, Cap, and Collar Agreements Designated as Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, caps, collars, and floors to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. The entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The Company assesses the effectiveness of hedging derivatives during the initial period with a quantitative test such as statistical regression on a prospective and retrospective basis. For subsequent periods, the effectiveness of hedging derivatives is assessed qualitatively by assuring the notional amounts of the respective derivative instruments are equal to or less than the current balance of the hedged items. Foreign Currency Contracts The Company enters into certain foreign currency exchange contracts on behalf of its clients to facilitate their risk management strategies, while at the same time entering into offsetting foreign currency exchange contracts in order to minimize the Company’s foreign currency exchange risk. The contracts are short term in nature, and any gain or loss incurred at settlement is recorded as other noninterest income or other noninterest expense. The fair value of these contracts is reported in other assets and other liabilities. The Company does not apply hedge accounting to these contracts. Counterparty Credit Risk Derivative contracts involve the risk of dealing with both bank customers and institutional derivative counterparties and their ability to meet contractual terms. Under Company policy, institutional counterparties must be approved by the Company’s Asset/Liability Management Committee. The Company’s credit exposure on derivatives is limited to the net fair value for each counterparty. Refer to Note 7 for further discussion and details of derivative financial instruments and hedging activities. Transfers of Financial Assets Transfers of financials assets are accounted for as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when 1) the transferred assets are legally isolated from the Company or its consolidated affiliates, even in bankruptcy or other receivership, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company’s balance sheet and a gain or loss on sale is recognized. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company’s balance sheet, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. All transfers of financial assets in the reported periods have qualified and been recorded as sales. Loans Held-for-Sale Mortgage Loans Held-for-Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The Company also transfers certain mortgage loans to held-for-sale when management has the intent to sell the loan or a portion of the loan in the near term. These held-for-sale loans are recorded at the lower of cost or estimated fair value. At the time of transfer, write-downs on the loans are recorded as charge-offs and a new cost basis is established. Generally, loans in this category are sold within thirty days. These loans are primarily sold with the mortgage servicing rights released. Fees on mortgage loans sold individually in the secondary market, including origination fees, service release premiums, processing and administrative fees, and application fees, are recognized as mortgage banking revenue in the period in which the loans are sold. These loans are underwritten to the standards of upstream correspondents and are held on the Company’s consolidated balance sheets until the loans are sold. Buyers generally have recourse to return a purchased loan to the Company under limited circumstances. Recourse conditions may include early payment default, breach of representations or warranties, and documentation deficiencies. During 2019, 2018, and 2017, an insignificant number of loans were returned to the Company. Commercial Loans Held-for-Sale The Company originates certain commercial loans for which a portion is intended for sale. The Company also transfers certain commercial loans to held-for-sale when management has the intent to sell the loan or a portion of the loan in the near term. These held-for-sale loans are recorded at the lower of cost or estimated fair value. At the time of transfer, write-downs on the loans are recorded as charge-offs and a new cost basis is established. Any subsequent lower of cost or market adjustment is determined on an individual loan basis and is recognized as a valuation allowance with any charges included in other noninterest expense. Gains and losses on the sale of these loans are included in other noninterest income when realized. Loans (Excluding Acquired Credit Impaired Loans) Loans include loans that are originated by the Company and acquired loans that are not considered impaired at acquisition. Loans originated by the Company are carried at the principal amount outstanding adjusted for the allowance for credit losses, net of deferred origination fees, and unamortized discounts and premiums. Interest income is recognized based on the principal balance outstanding and the stated rate of the loan. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Loans acquired through acquisition are initially recorded at fair value. Discounts and premiums created when the loans were recorded at their estimated fair values at acquisition are accreted over the remaining term of the loan as an adjustment to the related loan’s yield. Commercial loans, including small business loans, are generally placed on nonaccrual status when principal or interest is past due ninety days or more unless the loan is well secured and in the process of collection, or when the loan is specifically determined to be impaired. Consumer loans, including residential first and second lien loans secured by real estate, are generally placed on nonaccrual status when they are 120 or more days past due. The accrual of interest, as well as the amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium, is generally discontinued at the time the loan is placed on nonaccrual status. All accrued but uncollected interest for loans that are placed on nonaccrual status is reversed through interest income. Cash receipts received on nonaccrual loans are generally applied against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income (i.e., cost recovery method). However, interest may be accounted for under the cash-basis method as long as the remaining recorded investment in the loan is deemed fully collectible. L oans are evaluated for potential charge-off in accordance with the parameters discussed below or when the loan is placed on non-accrual status, whichever is earlier. Loans within the commercial portfolio are generally evaluated for charge-off at 90 days past due, unless both well-secured and in the process of collection. Closed and open-end residential mortgage and consumer loans are evaluated for charge-off no later than 120 days past due. Any outstanding loan balance in excess of the fair value of the collateral less costs to sell is charged-off no later than 180 days past due for loans secured by real estate. For non-real estate secured loans, in lieu of charging off the entire loan balance, loans may be written down to the fair value of the collateral less costs to sell if repossession of collateral is assured and in process. A loan is considered to be impaired when it appears probable that the entire amount contractually due will not be collected in accordance with the terms of the loan agreement. Factors considered in determining impairment include payment status, collateral values, and the probability of collecting scheduled payments of principal and interest when due. The measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price or based on the fair value of the collateral less disposal costs if the loan is collateral dependent. Included in impaired loans are loans considered troubled debt restructurings (“TDRs”). The Company attempts to work with borrowers when necessary to extend or modify loan terms to better align with the borrower’s ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that the Company has granted a concession to the borrower. The Company may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future without the modification. Concessions could include reductions of interest rates at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, principal forgiveness, forbearance, or other concessions. The assessments of whether a borrower is experiencing or will likely experience financial difficulty and whether a concession has been granted can be subjective in nature, and management’s judgment is required when determining whether a modification is classified as a TDR. Allowance for Credit Losses The allowance for credit losses (“ACL”) is established through charges to income in the form of a provision for credit losses. The ACL is maintained at a level that management believes is adequate to absorb all probable losses inherent in the loan portfolio which are incurred as of the reporting date. Events that are not within the Company’s control, such as changes in economic factors, could change subsequent to the reporting date and could cause the ACL to be overstated or understated. The amount of the ACL is affected by loan charge-offs, which decrease the ACL; recoveries on loans previously charged off, which increase the ACL; and the provision for credit losses charged to income, which increases the ACL. In determining the provision for credit losses, management monitors fluctuations in the ACL resulting from actual charge-offs and recoveries and reviews the size and composition of the loan portfolio in light of current and anticipated economic conditions. The ACL is comprised of the following four components: • Specific reserves are recorded on loans reviewed individually for impairment. Generally, all loans that are individually identified as impaired are reviewed on a quarterly basis in order to determine whether a specific reserve is required. A loan is considered impaired when, based on current information, it is probable that we will not receive all amounts due in accordance with the contractual terms of the loan agreement. Once a loan has been identified as impaired, management measures impairment in accordance with ASC Topic 310, Receivables . The measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price or based on the fair value of the collateral if the loan is collateral dependent. When management’s measured value of the impaired loan is less than the recorded investment in the loan, the amount of the impairment is recorded as a specific reserve. These specific reserves are determined on an individual loan basis based on management’s current evaluation of the loss exposure for each credit, given the payment status, the financial condition of the borrower and any guarantors and the value of any underlying collateral. Loans that are individually identified as impaired are excluded from the general reserve calculation described below. Changes in specific reserves from period to period are the result of changes in the circumstances of individual loans such as charge-offs, payments received, changes in collateral values or other factors. • For loans not considered to be impaired, a general reserve is maintained for each loan segment in the loan portfolio. Due to the growth of the credit portfolio into new geographic areas and into new commercial segmentations and the lack of seasoning of the portfolio, the Company recognizes there is limited historical loss information to adequately estimate loss rates based primarily on historical loss data. Therefore, external loss data is utilized from a nationally recognized risk rating agency to assist in determining the loss rates within the ACL model until sufficient loss history can be accumulated from the Company’s loss experience in these segments. These loss rates are calibrated to the Cadence customer risk profile and portfolio mix. The Company monitors actual loss experience for each loan segment for potential adjustments required to the loss rates utilized. • In assessing the overall risk of the credit portfolio, the ACL Committee also considers the following qualitative factors that may affect credit losses within the current credit portfolio. Management discretion dictates how these factors should affect certain segments (or the entire portfolio) according to a number of basis points to be added to (or subtracted from) loan loss rates. By their nature, qualitative adjustments attempt to quantify and standardize factors that serve as “leading indicators” of credit deterioration or improvement. These primary adjustment factors include, but are not limited to the following: • Lending policies, procedures, practices or philosophy, including underwriting standards and collection, charge-off and recovery practices • Changes in national and service market economic and business conditions that could affect the level of default rates or the level of losses once a default has occurred within the Bank’s existing loan portfolio • Changes in the nature or size of the portfolio • Changes in portfolio collateral values • Changes in the experience, ability, and depth of lending management and other relevant staff • Volume and/or severity of past due and classified credits or trends in the volume of losses, non-accrual credits, impaired credits and other credit modifications • Quality of the institution’s credit review system and processes and the degree of oversight by bank management and the board of directors • Concentrations of credit such as industry and lines of business • Competition and legal and regulatory requirements or other external factors • In connection with acquisitions (see Accounting for Acquired Loans ), the Company acquired certain loans considered impaired and accounts for these loans under the provisions of ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , which require the initial recognition of these loans at the present value of amounts expected to be received. The ACL previously associated with these loans does not carry over to the books of the acquiring entity. Any decreases in expected cash flows subsequent to acquisition are recorded in the ACL. For any increases in cash flows expected to be collected, the Company adjusts the amount of accretable yield recognized on a prospective basis over the loan’s or pool’s remaining life. Management presents the quarterly review of the ACL to the Board of Directors. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as events change. The reserve for unfunded commitments is determined by assessing three distinct components: unfunded commitment volatility in the portfolio (excluding commitments related to letters of credit and commitment letters), adverse letters of credit, and adverse lines of credit. Unfunded commitment volatility is calculated on a trailing eight quarter basis; the resulting expected funding amount is then reserved for based on the current combined reserve rate of the pass-rated originated and ANCI loans. Adverse lines and letters of credit are assessed individually based on funding and loss expectations as of the period end. The reserve for unfunded commitments is recorded in other liabilities and other noninterest expense separate from the allowance and provision for credit losses. As of December 31, 2019 and 2018, the reserve for unfunded commitments totaled $1.7 million and $0.6 million, respectively. Accounting for Acquired Loans Acquired Loans The Company accounts for its acquisitions under ASC 805 which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. No ACL related to the acquired loans is recorded on the acquisition date as the fair value of the loans acquired incorporates assumptions regarding credit risk. Loans acquired are recorded at fair value in accordance with the fair value methodology prescribed in ASC 820. The Company estimated the fair value of loans by utilizing the discounted cash flow method applied to pools of loans aggregated by product categories and interest rate type. In addition, certain cash flows were estimated on an individual loan basis based on current performance and collateral value, if the loan is collateral dependent. Contractual principal and interest cash flows were projected based on the payment type (i.e., amortizing or interest only), interest rate type (i.e., fixed or adjustable), interest rate index, weighted average maturity, weighted average interest rate, weighted average spread, and weighted average interest rate floor of each loan pool. The expected cash flows for each category were determined by estimating future credit losses using probabilities of default (PD), loss given default (LGD) and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on discount rates developed from various sources including newly originated loans, a buildup approach and market data. The Company accounts for and evaluates acquired credit impaired (“ACI”) loans in accordance with the provisions of ASC 310-30. When ACI loans exhibit evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, the expected shortfall in future cash flows, as compared to the contractual amount due, is recognized as a non-accretable discount. Any excess of expected cash flows over the acquisition date fair value is known as the accretable discount and is recognized as accretion income over the life of each pool or individual loan. ACI loans that meet the criteria for non-accrual of interest at the time of acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the timing and expected cash flows on such loans can be reasonably estimated and if collection of the new carrying value of such loans is expected. However, if the timing or amount of the expected cash flows cannot be reasonably estimated an ACI loan may be placed in non-accruing status. Expected cash flows over the acquisition date fair value are periodically re-estimated utilizing the same cash flow methodology used at the time of acquisition and subsequent decreases to the expected cash flows will generally result in a provision for loan losses charge to the Company’s consolidated statements of income. Conversely, subsequent increases in expected cash flows result in a transfer from the non-accretable discount to the accretable discount, which would have a positive impact on accretion income prospectively. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method at rates calculated to depreciate or amortize the cost of assets over their estimated useful lives. Maintenance and repairs of property and equipment are charged to expense, and major improvements that extend the useful life of the asset are capitalized. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and any gains or losses are included in income. Leases The Bank leases various premises and equipment. At the inception of the contract the Bank determines if an arrangement is or contains a lease and will recognize on the balance sheet a lease asset for its right to use the underlying asset (“ROU”) and a lease liability for the corresponding lease obligation for contracts longer than a year. Both the asset and liability are initially measured at the present value of the future minimum lease payments over the lease term. In determining the present value of lease payments, the Bank uses our incremental borrowing rate as the discount rate for the leases. The Bank has defined a separate accounting policy for real estate and non-real estate leases to account for non-lease components from a lessee perspective. For non-real estate leases, the Bank elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component as it relates to this class type. The election was made to separate the non-lease components from the lease components in real estate leases due to the volume of real estate leases that are structured as triple net leases, where many of these expenses are already excluded from the lease. The Bank’s lease agreements do not contain any residual value guarantees. The Bank elected to apply the short-term lease exception to existing leases that meet the definition of a short-term lease, considering the lease term from the commencement date, not the remaining term at the date of adoption. The Bank includes all renewal options in the lease term, unless we have determined we will not renew a particular lease, in determination of the capitalization period and lease liability and ROU asset. See Recently Adopted Accounting Pronouncements Other Real Estate Owned Other real estate owned (“OREO”) consists of properties acquired through foreclosure and unutilized bank-owned properties. OREO totaled $1.6 million and $2.4 million as of December 31, |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Note 2—Business Combinations State Bank On January 1, 2019, the Company acquired all the outstanding stock of State Bank Financial Corporation (“State Bank”), of Atlanta, Georgia, the bank holding company for State Bank and Trust Company, in a stock transaction. State Bank shareholders received 1.271 shares of the Company’s Class A common stock in exchange for each share of State Bank common stock resulting in the Company issuing 49.2 million shares of its Class A common stock. In total, the purchase price for State Bank was $826.4 million, including $826.1 million in the Company’s common stock and $0.3 million representing the fair value of unexercised warrants. The Company’s strategic rationale for the transaction was to expand our market presence into Georgia, create a more diverse business mix as well as an attractive funding base and leverage operating costs through economies of scale. The acquisition added $3.5 billion in loans and $4.1 billion in deposits as well as 32 branch locations across Georgia. The State Bank transaction was accounted for using the acquisition method of accounting. Accordingly, the results of operations of the acquired company have been included in the Company’s results of operations since the date of acquisition. Under this method of accounting, assets acquired, liabilities assumed, and consideration paid were recorded at their estimated fair values on the acquisition date. The fair values of securities, loans, OREO, premises and equipment, core deposit intangibles, other assets and deposits were determined with the assistance of appraisals, third-party valuations and advisors. The excess cost over fair value of net assets acquired is recorded as goodwill. As the consideration paid for State Bank exceeded the net assets acquired, goodwill of $175.7 million was recorded from the acquisition and allocated to the Banking segment. Goodwill recorded in the transaction, which reflects the new Georgia market and synergies expected from the combined operations, is not deductible for income tax purposes. The following table provides the purchase price calculation as of the acquisition date and the identifiable assets acquired and the liabilities assumed at their fair values. These fair value measurements are based on internal and third-party valuations. (In thousands, except shares and per share data) As Recorded by Cadence Assets Cash and cash equivalents $ 414,342 Investment securities available-for-sale 667,865 Loans held for sale 148,469 Loans 3,317,897 Premises and equipment 65,646 Cash surrender value of life insurance 69,252 Intangible assets 117,038 Other assets 47,146 Total assets acquired $ 4,847,655 Liabilities Deposits $ 4,096,665 Short term borrowings 23,899 Other liabilities 76,368 Total liabilities assumed 4,196,932 Net identifiable assets acquired over liabilities assumed 650,723 Goodwill 175,657 Net assets acquired over liabilities assumed $ 826,380 Consideration: Cadence Bancorporation common shares issued 49,232,008 Fair value per share of the Company's common stock $ 16.78 Company common stock issued 826,113 Fair value of unexercised warrants 267 Fair value of total consideration transferred $ 826,380 Measurement Period Adjustments . The Company estimated the fair value of loans by utilizing the discounted cash flow method applied to pools of loans aggregated by product categories and interest rate type. In addition, certain cash flows were estimated on an individual loan basis based on current performance and collateral value, if the loan is collateral dependent. Contractual principal and interest cash flows were projected based on the payment type (i.e., amortizing or interest only), interest rate type (i.e., fixed or adjustable), interest rate index, weighted average maturity, weighted average interest rate, weighted average spread, and weighted average interest rate floor of each loan pool. The expected cash flows for each category were determined by estimating future credit losses using probabilities of default (PD), loss given default (LGD) and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on discount rates developed from various sources including an analysis of State Bank’s newly originated loans, a buildup approach and market data. There was no carryover of State Bank’s ACL associated with the loans acquired. The initial valuation of the acquired loans was not final due to the complexity and time involved in valuing loans. An estimate was recorded during the first quarter of 201 9 based on the results of a valuation exercise conducted as of December 31, 201 8 , and applied to the January 1, 201 9 , balance of loans acquired from State Bank . During the remainder of 201 9 , we continued to analyze the valuations assigned to the acquired assets and assumed liabilities and o ur third - party valuation firm provided updated valuation assumption s for loans . These updated assumptions impacted the January 1, 2019, valuation estimates for the acquired loans. In addition, adjustments were made to deferred taxes and accrued expense b alances based on new information resulting in the revised fair values displayed below. W e updated our estimated fair values of these items within our Consolidated Balance Sheet with a corresponding adjustment to goodwill. These changes are gross of taxes and reflected in the following table: (In thousands) Acquired Asset or Liability Balance Sheet Line Item Provisional Estimate Revised Estimate Increase (Decrease) Loans Loans $ 3,324,056 $ 3,317,897 $ (6,159 ) Current and deferred taxes Other assets 2,125 6,026 3,901 Other liabilities Other liabilities 76,278 76,368 90 The impact on the income statement resulting from the changes to the estimated fair values was insignificant. We completed our analysis of the assumptions and related valuation results associated with the acquired loans, and accordingly, the valuation of the loans is final as of December 31, 2019. On January 1, 2019, the estimated fair value of the acquired non-credit impaired (“ANCI”) loans acquired in the State Bank transaction was $3.2 billion, which is net of a $83.8 million discount. The gross contractual amounts receivable of the ANCI loans at acquisition was $3.9 billion, of which $0.2 billion is the amount of contractual cash flows not expected to be collected. The Company accounts for and evaluates acquired credit impaired (“ACI”) loans in accordance with the provisions of ASC Topic 310-30. When ACI loans exhibit evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, the expected shortfall in future cash flows, as compared to the contractual amount due, is recognized as a non-accretable discount. Any excess of expected cash flows over the acquisition date fair value is known as the accretable discount and is recognized as accretion income over the life of each pool or individual loan. Information about the ACI loans acquired in the State Bank merger as of the acquisition date is as follows: (In thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 143,283 Contractual cash flows not expected to be collected (nonaccretable difference) 54,954 Expected cash flows at acquisition 88,329 Accretable difference 10,053 Basis in acquired loans at acquisition - estimated fair value $ 78,276 Intangible assets consisted of the core deposit intangible and the customer relationship intangible of a subsidiary. The core deposit intangible asset recognized of $111.9 million is being amortized over its estimated useful life of ten years utilizing an accelerated method. The benefit of the deposit base is equal to the difference in cash flows between maintaining the existing deposits and obtaining alternative funds over the life of the deposit base. The difference was tax effected and discounted to present value at a risk-adjusted discount rate. The valuation of the core deposit base includes estimates of the attrition rates for each deposit type based on historical attrition data and market participant information, in addition to estimates of total costs including interest cost, net maintenance cost, cost of reserves, and cost of float. The customer relationship and trademark intangible recognized of $3.7 million and $1.4 million are being amortized over estimated useful lives of ten and twenty years, respectively, using an accelerated method. Goodwill of $175.7 million was recorded as a result of the transaction and is not amortized for financial statement purposes. All the goodwill was assigned to the Banking segment. The goodwill recorded is not deductible for income tax purposes Certificates of deposit, including IRAs, were valued by projecting out the expected cash flows based on the contractual terms of the certificates of deposit. The fair values of savings and transaction deposit accounts were assumed to approximate the carrying value as these accounts have no stated maturity and are payable on demand. These cash flows were discounted using the interest rates on fixed maturity deposits offered by Cadence and State Bank as of January 1, 2019 resulting in a $3.4 million discount amortized over a twelve-month Unfunded commitments are contractual obligations by a financial institution for future funding as it relates to closed end or revolving lines of credit. The Company valued these unfunded commitments at $26.8 million and recorded a liability using the “Netback” method. The following table presents certain unaudited pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if State Bank had been acquired on January 1, 2018. The pro forma results combine the historical results of State Bank into the Company’s consolidated income statements including the impact of certain acquisition accounting adjustments including loan discount accretion, investment securities discount accretion, intangible assets amortization and deposit premium accretion. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of what would have occurred had the acquisition taken place on January 1, 2018. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for credit losses, expense efficiencies or asset dispositions. Merger-related costs of $28.0 million recorded in 2019 and $3.0 million recorded by Cadence and $29.9 million recorded by State Bank in 2018 are not included in the pro forma statements below. For the Years Ended December 31, 2019 2018 (In thousands) Pro Forma Pro Forma Total revenues (net interest income and noninterest income) $ 760,318 $ 770,372 Net income 185,452 262,029 Revenues and earnings of the acquired company since the acquisition date have not been disclosed as it is not practicable as State Bank was merged into the Company and separate financial information is not available. Merger-related expenses of $28.0 million incurred during 2019 are recorded in the consolidated income statement and include incremental costs related to the closing of the transaction, including legal, accounting and auditing, investment banker fees, certain employment related costs, travel, printing, supplies, and other costs. The data processing systems conversion occurred in February 2019. Wealth & Pension On July 1, 2019, the Company’s wholly owned subsidiary, Linscomb & Williams, Inc., acquired certain assets and assumed certain liabilities of Wealth and Pension Services Group, Inc. (“W&P”), a fee-based investment advisory firm with its principal office in Atlanta, Georgia. The total purchase consideration paid of $8.0 million included an initial cash payment of $5.2 million and future cash payments totaling approximately $2.1 million to be paid in installments over a five-year |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 3—Securities A summary of amortized cost and estimated fair value of securities available-for-sale at December 31, 2019 and 2018 is as follows: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Securities available-for-sale: U.S. Treasury securities $ — $ — $ — $ — Obligations of U.S. government agencies 69,464 57 415 69,106 Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS) Residential pass-through: Guaranteed by GNMA 98,122 1,205 245 99,082 Issued by FNMA and FHLMC 1,423,771 13,128 1,402 1,435,497 Other residential mortgage-backed securities 292,019 4,197 384 295,832 Commercial mortgage-backed securities 276,533 2,448 3,023 275,958 Total MBS 2,090,445 20,978 5,054 2,106,369 Obligations of states and municipal subdivisions 185,882 7,235 — 193,117 Total securities available-for-sale $ 2,345,791 $ 28,270 $ 5,469 $ 2,368,592 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Securities available-for-sale: U.S. Treasury securities $ 100,413 $ — $ 3,628 $ 96,785 Obligations of U.S. government agencies 60,975 316 284 61,007 Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS) Residential pass-through: Guaranteed by GNMA 85,052 146 2,093 83,105 Issued by FNMA and FHLMC 594,874 694 10,367 585,201 Other residential mortgage-backed securities 36,339 8 1,178 35,169 Commercial mortgage-backed securities 114,383 287 5,255 109,415 Total MBS 830,648 1,135 18,893 812,890 Obligations of states and municipal subdivisions 229,475 207 13,112 216,570 Total securities available-for-sale $ 1,221,511 $ 1,658 $ 35,917 $ 1,187,252 The scheduled contractual maturities of securities available-for-sale at December 31, 2019 were as follows: Amortized Estimated (In thousands) Cost Fair Value Due in one year or less $ 15,768 $ 15,816 Due after one year through five years 1,310 1,297 Due after five years through ten years 28,633 28,364 Due after ten years 209,635 216,746 Mortgage-backed securities 2,090,445 2,106,369 Total $ 2,345,791 $ 2,368,592 Proceeds from sales, gross gains, and gross losses on sales of securities available-for-sale for the years ended December 31, 2019, 2018, and 2017 are presented below. There were no other-than-temporary impairment charges included in gross realized losses for the years ended December 31, 2019, 2018, and 2017. The specific identification method is used to reclassify gains and losses out of other comprehensive income at the time of sale. For the Year Ended December 31, (In thousands) 2019 2018 2017 Gross realized gains $ 3,536 $ 816 $ 167 Gross realized losses (1,518 ) (2,669 ) (313 ) Realized gains (losses), net $ 2,018 $ (1,853 ) $ (146 ) Proceeds from sales of securities available-for-sale $ 393,716 $ 268,799 $ 161,401 Securities with a carrying value of $629.4 million and $711.2 million at December 31, 2019 and 2018, respectively, were pledged to secure public deposits, FHLB borrowings, repurchase agreements and for other purposes as required or permitted by law. Information pertaining to securities available-for-sale with gross unrealized losses aggregated by category and length of time the securities have been in a continuous loss position was as follows: Unrealized Loss Analysis Losses < 12 Months Losses > 12 Months (In thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses December 31, 2019 U.S. Treasury securities $ — $ — $ — $ — Obligations of U.S. government agencies 33,053 209 13,703 206 Mortgage-backed securities 708,991 4,466 61,506 588 Obligations of states and municipal subdivisions — — — — Total $ 742,044 $ 4,675 $ 75,209 $ 794 Unrealized Loss Analysis Losses < 12 Months Losses > 12 Months (In thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses December 31, 2018 U.S. Treasury securities $ — $ — $ 96,785 $ 3,628 Obligations of U.S. government agencies 25,978 183 10,152 101 Mortgage-backed securities 259,794 2,864 405,974 16,029 Obligations of states and municipal subdivisions 74,503 2,501 125,092 10,611 Total $ 360,275 $ 5,548 $ 638,003 $ 30,369 As of December 31, 2019 and 2018, approximately 35% and 84%, respectively, of the fair value of securities in the investment portfolio reflected an unrealized loss. As of December 31, 2019, there were 23 securities that had been in a loss position for more than twelve months, and 61 securities that had been in a loss position for less than twelve months. None of the unrealized losses relate to the marketability of the securities or the issuer’s ability to honor redemption of the obligations. The Company has adequate liquidity and, therefore, does not plan to sell and, more likely than not, will not be required to sell these securities before recovery of the indicated impairment. Accordingly, the unrealized losses on these securities have been determined to be temporary. |
Loans Held-for-Sale, Loans and
Loans Held-for-Sale, Loans and Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Held-for-Sale, Loans and Allowance for Credit Losses | Note 4—Loans Held-for-Sale, Loans and Allowance for Credit Losses Loans Held-for-Sale The following table presents a summary of the loans held-for-sale by portfolio segment as of December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Commercial and industrial $ 32,257 $ 42,457 Commercial real estate 49,109 — Consumer 2,988 17,004 Small business 3,295 — Total loans held for sale $ 87,649 $ 59,461 Loans The following table presents total loans outstanding by portfolio segment and class of financing receivable as of December 31, 2019 and 2018. Outstanding balances include originated loans, Acquired Noncredit Impaired (“ANCI”) loans and Acquired Credit Impaired (“ACI”) loans. Additional information about ACI loans is presented separately in the “Acquired Credit-Impaired Loans” section of this Note. (In thousands) December 31, 2019 December 31, 2018 Commercial and Industrial General C&I $ 3,979,193 $ 3,275,362 Energy sector 1,427,832 1,285,775 Restaurant industry 993,397 1,096,366 Healthcare 472,307 539,839 Total commercial and industrial 6,872,729 6,197,342 Commercial Real Estate Income producing 2,517,707 1,266,791 Land and development 254,965 63,948 Total commercial real estate 2,772,672 1,330,739 Consumer Residential real estate 2,584,810 2,227,653 Other 93,175 67,100 Total consumer 2,677,985 2,294,753 Small Business Lending 734,237 266,283 Total (Gross of unearned discount and fees) 13,057,623 10,089,117 Unearned discount and fees (73,968 ) (35,194 ) Total (Net of unearned discount and fees) $ 12,983,655 $ 10,053,923 During 2018, the Company purchased $214 million of consumer residential real estate loans, at a premium of approximately 6.0%. These loans were evaluated and determined not to be credit impaired before purchase and were classified as ANCI as of December 31, 2018. The Company did not purchase any loans during 2019 other than those acquired as part of the State Bank merger on January 1, 2019 (see Note 2). Allowance for Credit Losses (“ACL”) The ACL is management’s estimate of credit losses inherent in the loan portfolio at the balance sheet date. The Company has an established process to determine the adequacy of the ACL that assesses the losses inherent in our portfolio. While management attributes portions of the ACL to specific portfolio segments, the entire ACL is available to absorb credit losses inherent in the total loan portfolio. The ACL process involves procedures that appropriately consider the unique risk characteristics of the loan portfolio segments based on management’s assessment of the underlying risks and cash flows. For each portfolio segment, losses are estimated collectively for groups of loans with similar characteristics, individually for impaired loans or, for ACI loans, based on the changes in cash flows expected to be collected on a pool or individual basis. The level of the ACL is influenced by loan volumes, risk rating migration, historic loss experience influencing loss factors, and other conditions influencing loss expectations, such as economic conditions. The primary indicator of credit quality for the portfolio segments is its internal risk ratings. The assignment of loan risk ratings is the primary responsibility of the lending officer concurrent with approval from the credit officer reviewing and recommending approval of the credit. Additionally, there is independent review by internal credit review, which also performs ongoing, independent review of the risk management process. The risk management process includes underwriting, documentation and collateral control. Credit review is centralized and independent of the lending function. The credit review results are reported to senior management and the Board of Directors. The following is a summary description of the risk ratings. Tables summarizing the amount of loans by criticized or classified risk rating in each loan portfolio segment is included in the sections “Credit Exposure in the Originated and ANCI Loan Portfolios” and “Credit Exposure in the ACI Portfolio.” • Pass—For loans within this risk rating, the condition of the borrower and the performance of the loan is satisfactory or better. • Special Mention—A special mention loan has identified potential weaknesses that are of sufficient materiality to require management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank’s credit position at some future date. Special mention assets contain greater than acceptable risk to warrant increases in credit exposure and are thus considered non-pass rated credits. • Substandard—A substandard loan is inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as substandard possess well-defined weaknesses that are expected to jeopardize their liquidation. Loans in this category may be either on accrual status or nonaccrual status. • Doubtful—Loans classified as doubtful possess all of the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable or improbable based on currently existing facts, conditions, and values. Loans rated as doubtful are not rated as loss because certain events may occur that could salvage the debt. Loans in this category are required to be on nonaccrual. • Loss—Loans classified loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off this worthless loan even though partial recovery may be affected in the future. Loans may reside in this classification for administrative purposes for a period not to exceed the earlier of thirty (30) days or calendar quarter-end. A summary of the activity in the ACL for each of the three years in the period ended December 31, 2019 is as follows: For the Year Ended December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Provision for loan losses 96,669 7,556 3,259 3,543 111,027 Charge-offs (79,590 ) (3,970 ) (1,802 ) (1,639 ) (87,001 ) Recoveries 914 55 232 38 1,239 As of December 31, 2019 $ 84,309 $ 14,093 $ 15,392 $ 5,849 $ 119,643 Allocation of ending ACL ACI loans collectively evaluated for impairment $ — $ 2,092 $ 5,998 $ — $ 8,090 ACI loans individually evaluated for impairment 1,172 22 74 — 1,268 ANCI loans collectively evaluated for impairment 439 70 690 157 1,356 ANCI loans individually evaluated for impairment 23 — 7 40 70 Originated loans collectively evaluated for impairment 69,514 11,909 8,623 5,629 95,675 Originated loans individually evaluated for impairment 13,161 — — 23 13,184 ACL as of December 31, 2019 $ 84,309 $ 14,093 $ 15,392 $ 5,849 $ 119,643 Loans ACI loans collectively evaluated for impairment $ 15,602 $ 67,087 $ 100,436 $ 12,161 $ 195,286 ACI loans individually evaluated for impairment 18,733 11,889 523 2,203 33,348 ANCI loans collectively evaluated for impairment 894,816 1,175,428 409,920 374,089 2,854,253 ANCI loans individually evaluated for impairment 3,217 1,174 1,484 142 6,017 Originated loans collectively evaluated for impairment 5,832,878 1,517,094 2,164,490 345,484 9,859,946 Originated loans individually evaluated for impairment 107,483 — 1,132 158 108,773 Loans as of December 31, 2019 $ 6,872,729 $ 2,772,672 $ 2,677,985 $ 734,237 $ 13,057,623 For the Year Ended December 31, 2018 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Provision for loan losses 15,708 (1,837 ) (900 ) (271 ) 12,700 Charge-offs (6,709 ) (2 ) (716 ) (618 ) (8,045 ) Recoveries 1,398 301 336 112 2,147 As of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Allocation of ending ACL ACI loans collectively evaluated for impairment $ 58 $ 1,641 $ 6,018 $ — $ 7,717 ACI loans individually evaluated for impairment — — 207 — 207 ANCI loans collectively evaluated for impairment 293 53 535 58 939 ANCI loans individually evaluated for impairment — — 6 107 113 Originated loans collectively evaluated for impairment 58,665 8,758 6,918 3,742 78,083 Originated loans individually evaluated for impairment 7,300 — 19 — 7,319 ACL as of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Loans ACI loans collectively evaluated for impairment $ 13,018 $ 58,171 $ 120,717 $ — $ 191,906 ACI loans individually evaluated for impairment 3,789 7,256 324 — 11,369 ANCI loans collectively evaluated for impairment 50,469 7,808 280,776 8,462 347,515 ANCI loans individually evaluated for impairment — — 1,538 279 1,817 Originated loans collectively evaluated for impairment 6,053,264 1,257,504 1,891,144 257,542 9,459,454 Originated loans individually evaluated for impairment 76,802 — 254 — 77,056 Loans as of December 31, 2018 $ 6,197,342 $ 1,330,739 $ 2,294,753 $ 266,283 $ 10,089,117 For the Year Ended December 31, 2017 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2016 $ 54,688 $ 10,103 $ 13,265 $ 4,212 $ 82,268 Provision for loan losses 5,883 1,737 1,746 369 9,735 Charge-offs (5,645 ) (93 ) (929 ) (204 ) (6,871 ) Recoveries 993 243 901 307 2,444 As of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Allocation of ending ACL ACI loans collectively evaluated for impairment $ 5 $ 2,006 $ 6,289 $ — $ 8,300 ACI loans individually evaluated for impairment — 4 220 — 224 ANCI loans collectively evaluated for impairment 864 130 49 295 1,338 ANCI loans individually evaluated for impairment — — 36 22 58 Originated loans collectively evaluated for impairment 46,591 9,850 8,389 4,362 69,192 Originated loans individually evaluated for impairment 8,459 — — 5 8,464 ACL as of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Loans ACI loans collectively evaluated for impairment $ 19,486 $ 71,675 $ 150,798 $ — $ 241,959 ACI loans individually evaluated for impairment 10,091 8,186 324 — 18,601 ANCI loans collectively evaluated for impairment 58,775 15,926 113,357 11,331 199,389 ANCI loans individually evaluated for impairment — — 1,582 310 1,892 Originated loans collectively evaluated for impairment 4,974,973 1,062,614 1,499,260 209,627 7,746,474 Originated loans individually evaluated for impairment 70,461 — 415 587 71,463 Loans as of December 31, 2017 $ 5,133,786 $ 1,158,401 $ 1,765,736 $ 221,855 $ 8,279,778 Impaired Originated and ANCI Loans Including Troubled Debt Restructurings (“TDRs”) The following tables include certain key information about individually impaired originated and ANCI loans. As of December 31, 2019 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments With no related allowance for credit losses Commercial and Industrial General C&I $ 13,981 $ 19,241 $ — $ 9,692 $ — Energy sector 2,184 20,714 — 2,184 250 Restaurant industry 16,710 31,702 — 16,710 3,061 Healthcare 3,770 4,084 — 3,770 — Total commercial and industrial 36,645 75,741 — 32,356 3,311 Commercial Real Estate Income producing 1,174 1,648 — 1,127 — Total commercial real estate 1,174 1,648 — 1,127 — Consumer Residential real estate 1,131 1,147 — 1,131 — Total consumer 1,131 1,147 — 1,131 — Total $ 38,950 $ 78,536 $ — $ 34,614 $ 3,311 With allowance for credit losses recorded Commercial and Industrial General C&I $ 37,156 $ 38,558 $ 7,272 $ 37,156 $ 555 Energy sector 8,603 19,815 2,755 7,599 — Restaurant industry 28,321 35,286 3,157 28,321 5,670 Total commercial and industrial 74,080 93,659 13,184 73,076 6,225 Consumer Residential real estate 1,485 1,484 7 447 — Total consumer 1,485 1,484 7 447 — Small Business Lending 300 1,125 63 142 — Total $ 75,865 $ 96,268 $ 13,254 $ 73,665 $ 6,225 As of December 31, 2018 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments With no related allowance for credit losses Commercial and Industrial Energy sector $ 20,713 $ 33,908 $ — $ 20,713 $ 3,658 Total commercial and industrial 20,713 33,908 — 20,713 3,658 Consumer Residential real estate 1,538 1,535 — — — Total consumer 1,538 1,535 — — — Total $ 22,251 $ 35,443 $ — $ 20,713 $ 3,658 With allowance for credit losses recorded Commercial and Industrial General C&I $ 28,684 $ 28,677 $ 3,559 $ 24,103 $ 930 Restaurant industry 23,043 23,698 3,485 22,042 2,329 Healthcare 4,496 4,496 256 4,496 — Total commercial and industrial 56,223 56,871 7,300 50,641 3,259 Consumer Other 254 254 25 — — Total consumer 254 254 25 — — Small Business Lending 476 1,249 107 229 10 Total $ 56,953 $ 58,374 $ 7,432 $ 50,870 $ 3,269 (1) The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. The related amount of interest income recognized for impaired loans was $0.4 million for the year ended December 31, 2019, compared to $0.3 million and $1.6 million for the same periods in 2018 and 2017, respectively. Generally, cash receipts on nonperforming loans are used to reduce principal rather than recorded as interest income. Past due status is determined based upon contractual terms. A nonaccrual loan may be returned to accrual status when repayment is reasonably assured and there has been demonstrated performance under the terms of the loan or, if applicable, under the terms of the restructured loan. For the year ended December 31, 2019, an immaterial amount of contractual interest paid was recognized on the cash basis, compared to $1.7 million and $1.5 million for the same periods in 2018 and 2017, respectively. Average Recorded Investment in Impaired Originated and ANCI Loans The following table presents the average recorded investment in individually impaired originated and ANCI loans. Year Ended December 31, (In thousands) 2019 2018 2017 Commercial and Industrial General C&I $ 41,217 $ 10,834 $ 8,586 Energy sector 17,075 27,348 108,751 Restaurant industry 34,039 16,600 2,203 Healthcare 4,197 1,124 — Total commercial and industrial 96,528 55,906 119,540 Commercial Real Estate Income producing 478 — — Total commercial real estate 478 — — Consumer Residential real estate 1,971 1,557 1,426 Other 153 313 386 Total consumer 2,124 1,870 1,812 Small Business Lending 385 420 945 Total $ 99,515 $ 58,196 $ 122,297 Originated and ANCI Loans Modified into TDRs Included in impaired loans are loans considered to be TDRs. The Company attempts to work with borrowers when necessary to extend or modify loan terms to better align with the borrower’s ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. The Bank considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. Qualifying criteria and payment terms are structured by the borrower’s current and prospective ability to comply with the modified terms of the loan. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that the Company has granted a concession to the borrower. The Company may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future without the modification. Concessions could include reductions of interest rates at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, principal forgiveness, forbearance, or other concessions. The assessments of whether a borrower is experiencing or will likely experience financial difficulty and whether a concession has been granted is highly subjective in nature, and management’s judgment is required when determining whether a modification is classified as a TDR. All TDRs are reported as impaired. Impaired classification may be removed if the borrower demonstrates compliance with the modified terms and the restructuring agreement specifies an interest rate equal to that which would be provided to a borrower with similar credit at the time of restructuring. The majority of TDRs are classified as impaired loans for the remaining life of the loan. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. The following table provides information regarding loans that were modified into TDRs in the originated and ANCI portfolios during the periods indicated. For the Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Number of TDRs Recorded Investment Number of TDRs Recorded Investment Number of TDRs Recorded Investment Commercial and Industrial 9 $ 36,068 4 $ 30,244 3 $ 16,027 Consumer — — — — 2 739 Small Business Lending — — 2 141 1 138 Total 9 $ 36,068 6 $ 30,385 6 $ 16,904 During the year ended December 31, 2019, approximately $49.7 million in charge-offs were taken related to commercial and industrial loans that were modified into TDRs during the same 12-month period. For the year ended December 31, 2018, there was one commercial specialized lending customer with a combined recorded investment of $11.8 million which experienced payment default in the year of modification. There were no TDRs modified during 2017 that experienced payment default during the year of modification. Default is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or obtaining 90 days past due status with respect to principal and/or interest payments. The following table provides information regarding the types of loan modifications that were modified into TDRs in the originated and ANCI portfolios during the periods indicated. For the Year Ended December 31, 2019 2018 2017 Number of Loans Modified by: Rate Concession Modified Terms and/ or Other Concessions Rate Concession Modified Terms and/ or Other Concessions Rate Concession Modified Terms and/ or Other Concessions Commercial and Industrial — 9 — 4 2 1 Consumer — — — — — 2 Small Business Lending — — 2 — 1 — Total — 9 2 4 3 3 Residential Mortgage Loans in Process of Foreclosure Included in loans are $4.4 million and $3.8 million of consumer loans secured by single family residential real estate that are in process of foreclosure at December 31, 2019 and 2018, respectively. Loans in process of foreclosure include those for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $0.2 million and $1.0 million of foreclosed single-family residential properties in other real estate owned as of December 31, 2019 Credit Exposure in the Originated and ANCI Loan Portfolios The following tables provide information regarding the credit exposure by portfolio segment and class of receivable. As of December 31, 2019 (Recorded investment in thousands) Special Mention Substandard Doubtful Total Criticized Commercial and Industrial General C&I $ 70,007 $ 192,332 $ 7,255 $ 269,594 Energy sector 66,235 26,439 2,754 95,428 Restaurant industry 45,456 57,992 4,697 108,145 Healthcare 22,414 3,984 — 26,398 Total commercial and industrial 204,112 280,747 14,706 499,565 Commercial Real Estate Income producing 35,706 1,717 — 37,423 Land and development 8,825 — — 8,825 Total commercial real estate 44,531 1,717 — 46,248 Consumer Residential real estate — 7,982 — 7,982 Other — 55 — 55 Total consumer — 8,037 — 8,037 Small Business Lending 6,045 6,725 — 12,770 Total $ 254,688 $ 297,226 $ 14,706 $ 566,620 As of December 31, 2018 (Recorded investment in thousands) Special Mention Substandard Doubtful Total Criticized Commercial and Industrial General C&I $ 74,592 $ 79,815 $ — $ 154,407 Energy sector 11,812 6,227 14,486 32,525 Restaurant industry 24,449 26,171 — 50,620 Healthcare — 4,496 — 4,496 Total commercial and industrial 110,853 116,709 14,486 242,048 Commercial Real Estate Land and development — 985 — 985 Total commercial real estate — 985 — 985 Consumer Residential real estate — 3,315 — 3,315 Total consumer — 3,315 — 3,315 Small Business Lending 772 2,013 — 2,785 Total $ 111,625 $ 123,022 $ 14,486 $ 249,133 Aging of Past due Originated and ANCI Loans The following tables provide an aging of past due loans by portfolio segment and class of receivable. As of December 31, 2019 Accruing Loans Non-Accruing Loans (Recorded investment in thousands) 30-59 DPD 60-89 DPD 90+ DPD 0-29 DPD 30-59 DPD 60-89 DPD 90+ DPD Commercial and Industrial General C&I $ 210 $ 499 $ — $ 24,622 $ 21,193 $ — $ 1,033 Energy sector — — — 1,417 — — 8,365 Restaurant industry — — — 41,566 — — 3,468 Healthcare — 41 — 173 — — 3,770 Total commercial and industrial 210 540 — 67,778 21,193 — 16,636 Commercial Real Estate Income producing 2,325 101 — — — — 1,127 Total commercial real estate 2,325 101 — — — — 1,127 Consumer Residential real estate 6,501 2,713 707 1,918 183 1,787 3,385 Other 187 28 40 — — — 15 Total consumer 6,688 2,741 747 1,918 183 1,787 3,400 Small Business Lending 2,659 654 198 652 397 — 3,288 Total $ 11,882 $ 4,036 $ 945 $ 70,348 $ 21,773 $ 1,787 $ 24,451 As of December 31, 2018 Accruing Loans Non-Accruing Loans (Recorded investment in thousands) 30-59 DPD 60-89 DPD 90+ DPD 0-29 DPD 30-59 DPD 60-89 DPD 90+ DPD Commercial and Industrial General C&I $ 120 $ — $ — $ 23,928 $ 176 $ — $ — Energy sector — — — 20,712 — — — Restaurant industry — — — 22,043 — — — Healthcare — — — 4,496 — — — Total commercial and industrial 120 — — 71,179 176 — — Commercial Real Estate Land and development — 61 — — — — — Total commercial real estate — 61 — — — — — Consumer Residential real estate 1,275 315 760 876 151 95 1,429 Other 27 112 — — — — — Total consumer 1,302 427 760 876 151 95 1,429 Small Business Lending 491 25 — 250 29 4 50 Total $ 1,913 $ 513 $ 760 $ 72,305 $ 356 $ 99 $ 1,479 Acquired Credit Impaired (“ACI”) Loans The following table presents total ACI loans outstanding by portfolio segment and class of financing receivable. See Note 2 for more information regarding our merger with State Bank. (In thousands) December 31, 2019 December 31, 2018 Commercial and Industrial General C&I $ 31,801 $ 16,807 Restaurant industry 2,534 — Total commercial and industrial 34,335 16,807 Commercial Real Estate Income producing 66,775 65,427 Land and development 12,201 — Total commercial real estate 78,976 65,427 Consumer Residential real estate 100,133 120,495 Other 826 546 Total consumer 100,959 121,041 Small Business Lending 14,364 — Total $ 228,634 $ 203,275 The excess of cash flows expected to be collected over the carrying value of ACI loans is referred to as the accretable yield and is recognized in interest income using an effective yield method over the remaining life of the loan, or pools of loans. The accretable yield is affected by: • Changes in interest rate indices for variable rate ACI loans—Expected future cash flows are based on the variable rates in effect at the time of the regular evaluations of cash flows expected to be collected; • Changes in prepayment assumptions—Prepayments affect the estimated life of ACI loans which may change the amount of interest income, and possibly principal, expected to be collected; and • Changes in the expected principal and interest payments over the estimated life—Updates to expected cash flows are driven by the credit outlook and actions taken with borrowers. Changes in Accretable Yield on ACI Loans Changes in the amount of accretable discount for ACI loans for each of the three years in the period ended December 31, 2019 were as follows: For the Year Ended December 31, (In thousands) 2019 2018 2017 Balance at beginning of period $ 67,405 $ 78,422 $ 98,728 Additions (See Note 2) 10,053 — — Accretion (29,927 ) (19,813 ) (23,303 ) Reclass from nonaccretable difference due to increases in expected cash flow 14,298 16,765 14,075 Other changes, net (2,282 ) (7,969 ) (11,078 ) Balance at end of period $ 59,547 $ 67,405 $ 78,422 Impaired ACI Loans and Pools Including TDRs The following tables include certain key information about individually impaired and pooled ACI loans. As of December 31, 2019 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments Commercial and Industrial $ 23,173 $ 31,813 $ 1,172 $ — $ — Commercial Real Estate 72,466 93,058 2,114 — — Consumer 22,105 22,303 6,072 — — Total $ 117,744 $ 147,174 $ 9,358 $ — $ — As of December 31, 2018 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments Commercial and Industrial $ 2,100 $ 2,331 $ 58 $ — $ — Commercial Real Estate 74,017 97,613 1,641 — — Consumer 18,301 17,888 6,225 — — Total $ 94,418 $ 117,832 $ 7,924 $ — $ — (1) The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. ACI Loans Modified into TDRs There was one ACI loan modified into a TDR during the year ended December 31, 2019 with a recorded investment of $1.5 million that was sold prior to year-end. There were no ACI loans modified into a TDR during the years ended December 31, 2018 and 2017. There were no ACI TDRs modified during the three years ended December 31, 2019 that experienced payment default during the year of modification. Default is defined as the earlier of the troubled debt restructuring being placed on nonaccrual status or obtaining 90 days past due status with respect to principal and interest payments. Credit Exposure in the ACI Portfolio The following table provides information regarding the credit exposure by portfolio segment and class of receivable. December 31, 2019 December 31, 2018 (Recorded investment in thousands) Special Mention Substandard Doubtful Special Mention Substandard Doubtful Commercial and Industrial General C&I $ 51 $ 11,755 $ 936 $ 426 $ 1,445 $ 39 Restaurant industry — 567 — — — — Total commercial and industrial 51 12,322 936 426 1,445 39 Commercial Real Estate Income producing 499 5,408 — 1,207 3,080 — Land and development 172 2,350 — — — — Total commercial real estate 671 7,758 — 1,207 3,080 — Consumer Residential real estate 152 3,621 — 89 4,442 — Other — 26 — — 3 — Total consumer 152 3,647 — 89 4,445 — Small Business Lending 528 12,401 — — — — Total $ 1,402 $ 36,128 $ 936 $ 1,722 $ 8,970 $ 39 The following table provides an aging of ACI consumer loans by past due status. December 31, 2019 December 31, 2018 (Recorded investment in thousands) Residential Real Estate Other Residential Real Estate Other 0 – 29 Days Past Due $ 92,327 $ 553 $ 115,404 $ 845 30 – 59 Days Past Due 2,636 62 1,985 91 60 – 89 Days Past Due 1,635 52 1,435 — 90 – 119 Days Past Due 372 25 217 3 120 + Days Past Due 3,163 134 3,598 — Total $ 100,133 $ 826 $ 122,639 $ 939 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 5—Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization, as follows: December 31, (In thousands) Estimated Useful Life in Years 2019 2018 Premises: Land — $ 38,402 $ 16,604 Buildings, construction and improvements (1) 2-40 94,886 54,298 Total premises 133,288 70,902 Equipment 3-10 53,517 40,960 Total premises and equipment 186,805 111,862 Less: Accumulated depreciation and amortization (58,938 ) (48,241 ) Total premises and equipment, net $ 127,867 $ 63,621 (1) Leasehold improvements are depreciated over the lesser of the estimated useful life or the lease term. Depreciation expense was $11.7 million, $7.6 million and $7.1 million for 2019, 2018 and 2017, respectively. Included in other assets is net software cost totaling $6.5 million and $4.0 million as of December 31, 2019 and 2018, respectively. Software amortization expense was $3.4 million, $1.7 million, and $1.9 million for the years ended December 31, 2019, 2018, and 2017, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6—Goodwill and Other Intangible Assets The following table summarizes the Company’s goodwill and other intangible assets at December 31, 2019 and 2018: December 31, December 31, (In thousands) 2019 2018 Goodwill $ 485,336 $ 307,083 Core deposit intangible, net of accumulated amortization of $60,836 and $39,385, respectively 90,788 301 Customer lists, net of accumulated amortization of $21,908 and $19,709, respectively 11,993 6,992 Noncompete agreements, net of accumulated amortization of $137 and $0, respectively 1,473 — Trademarks, net of accumulated amortization of $75 and $0, respectively 1,359 24 Total goodwill and intangible assets, net $ 590,949 $ 314,400 The increase in goodwill and other intangible assets is primarily related to the acquisition of State Bank on January 1, 2019, as well as an insignificant amount that resulted from the net asset acquisition from Wealth & Pension Services Group, Inc. on July 1, 2019 by the Bank’s subsidiary, Linscomb & Williams, Inc. (see Note 2). The following table represents changes to the carrying amount of goodwill by segment for the period reported. (In thousands) Banking Financial Services Corporate Consolidated Balance as of December 31, 2018 $ 266,922 $ 40,161 $ — $ 307,083 Additions: State Bank acquisition 175,657 — — 175,657 Wealth & Pension acquisition — 2,596 — 2,596 Balance as of December 31, 2019 $ 442,579 $ 42,757 $ — $ 485,336 The estimated aggregate amortization expense for core deposit intangibles, customer relationships, and other intangible assets is estimated as follows: (In thousands) 2020 $ 21,612 2021 19,093 2022 16,622 2023 14,150 2024 and thereafter 34,112 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 7—Derivatives The Company primarily uses derivatives to manage exposure to market risk, including interest rate risk, credit risk and foreign currency risk, and to assist customers with their risk management objectives. Management will designate certain derivatives as hedging instruments in a qualifying hedge accounting relationship. The Company’s remaining derivatives consist of economic hedges that do not qualify for hedge accounting and derivatives held for customer accommodation, or other purposes. The fair value of derivative positions outstanding is included in other assets and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows. For derivatives not designated as hedging instruments, gains and losses due to changes in fair value are included in noninterest income and the operating section of the consolidated statement of cash flows. For derivatives designated as hedging instruments, the entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The notional amounts and estimated fai r values as of December 31, 201 9 and 201 8 were as follows: December 31, 2019 December 31, 2018 Fair Value Fair Value (In thousands) Notional Amount Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate swaps $ 350,000 $ — $ 643 $ 650,000 $ — $ 23,968 Commercial loan interest rate collars 4,000,000 239,213 — — — — Total derivatives designated as hedging instruments 4,350,000 239,213 643 650,000 — 23,968 Derivatives not designated as hedging instruments: Commercial loan interest rate swaps 1,008,805 8,386 899 1,155,942 4,439 1,777 Commercial loan interest rate caps 167,185 18 18 88,430 239 239 Commercial loan interest rate floors 654,298 8,836 8,836 652,822 5,587 5,587 Commercial loan interest rate collars 75,555 257 257 80,000 96 96 Mortgage loan held-for-sale interest rate lock commitments 4,138 22 — 5,286 72 — Mortgage loan forward sale commitments 4,109 26 — 1,959 5 — Mortgage loan held-for-sale floating commitments 1,523 — — 14,690 — — Foreign exchange contracts 74,322 379 558 46,971 698 683 Total derivatives not designated as hedging instruments 1,989,935 17,924 10,568 2,046,100 11,136 8,382 Total derivatives $ 6,339,935 $ 257,137 $ 11,211 $ 2,696,100 $ 11,136 $ 32,350 The Company is party to collateral support agreements with certain derivative counterparties. Such agreements require that the Company maintain collateral based on the fair values of derivative transactions. In the event of default by the Company, the counterparty would be entitled to the collateral. At December 31, 2019 and 2018, the Company was required to post $10.6 million and $25.3 million, respectively, in cash or securities as collateral for its derivative transactions, which are included in “interest-bearing deposits in banks” on the Company’s consolidated balance sheets. In addition, the Company had recorded the obligation to return cash collateral provided by a counterparty of $240.9 million as of December 31, 2019 within deposits on the Company’s consolidated balance sheet. The Company’s master agreements represent written, legally enforceable bilateral agreements that (1) create a single legal obligation for all individual transactions covered by the master agreement and (2) in the event of default, provide the non-defaulting counterparty the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to promptly liquidate or set-off collateral posted by the defaulting counterparty. As permitted by U.S. GAAP, the Company does not offset fair value amounts for the right to reclaim cash collateral or the obligation to return cash collateral against fair value amounts of derivatives executed with the same counterparty under the master agreement. Pre-tax For the Year Ended December 31, 2019 2018 2017 (In thousands) OCI Reclassified from AOCI to interest income Noninterest income OCI Reclassified from AOCI to interest income Noninterest income OCI Reclassified from AOCI to interest income Noninterest income Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate swaps $ 18,654 $ (4,670 ) $ — $ (7,711 ) $ (5,164 ) $ — $ (1,426 ) $ 3,705 $ — Commercial loan interest rate collars 133,758 9,633 — — — — — — — Derivatives not designated as hedging instruments: Mortgage loans held for sale interest rate lock commitments $ — $ — $ (49 ) $ — $ — $ 22 — — (39 ) Foreign exchange contracts — — 3,813 — — 2,222 — — 2,271 Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans (1-Month LIBOR). In February 2019, the Company entered into a $4.0 billion notional interest rate collar with a five-year At December 31, 2019, the Company has outstanding the following interest rate swap agreements to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. Effective Date Maturity Date Notional Amount (In Thousands) Fixed Rate Variable Rate March 8, 2016 February 27, 2026 $ 175,000 1.5995 % 1 Month LIBOR March 8, 2016 February 27, 2026 175,000 1.5890 1 Month LIBOR Based on our current interest rate forecast, $27.0 million of deferred net gain on derivatives in OCI at December 31, 2019 is estimated to be reclassified into net interest income during the next twelve months due to the receipt of interest. Future changes to interest rates may significantly change actual amounts reclassified to income. There were no reclassifications into income during 2019, 2018 or 2017 as a result of any discontinuance of cash flow hedges because the forecasted transaction was no longer probable. The maximum length of time over which the Company is hedging a portion of its exposure to the variability in future cash flows for forecasted transactions is approximately 6.2 years as of December 31, 2019. Interest Rate Agreements not designated as hedging derivatives The Company enters into certain interest rate swap, floor, cap and collar agreements on commercial loans that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest agreement with a loan customer while at the same time entering into an offsetting interest rate agreement with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The interest rate swap transaction allows the Company’s customer to effectively convert a variable rate loan to a fixed rate. The interest rate cap transaction allows the Company’s customer to minimize interest rate risk exposure to rising interest rates. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s consolidated statements of income. The Company is exposed to credit loss in the event of nonperformance by the parties to the interest rate agreements. However, the Company does not anticipate nonperformance by the counterparties. The estimated fair value has been recorded as an asset and a corresponding liability in the accompanying consolidated balance sheets as of December 31, 2019 and 2018. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 8—Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) The Company elected to adopt the optional modified retrospective transition approach, which resulted in the following initial recognition amounts on January 1, 2019: (In thousands) Operating right-of-use assets $ 65,902 State Bank acquisition 14,089 Total operating right-of-use assets $ 79,991 Operating lease liability $ 92,268 The Company’s operating ROU assets represent both real estate and non-real estate leases. These leases have varying terms, with most containing renewal or first-right-of-refusal options for multi-year periods and annual increases in base rates. The Company leases various premises and equipment under operating leases. The leases have varying terms, with most containing renewal or first-right-of-refusal options for multi-year periods and annual increases in base rates. The following is a schedule by year of future minimum lease payments under operating leases, as of December 31, 2019: (In thousands) Property Equipment Total 2020 $ 13,599 $ 7 $ 13,606 2021 12,782 10 12,792 2022 10,284 19 10,303 2023 7,085 - 7,085 2024 2,734 - 2,734 Thereafter 5,812 - 5,812 Total minimum lease payments $ 52,296 $ 36 $ 52,332 Rental expense for premises and equipment, net of rental income, for the years ended December 31, 2019, 2018 and 2017, was $17.4 million, $12.1 million, and $11.2 million, respectively. The major portion of equipment rental expense is related to office equipment and is paid on a month-to-month basis. The components of lease cost for the year ended December 31, 2019 were as follows: (In thousands) Operating lease cost $ 10,201 Short-term lease cost 97 Sublease income (1,659 ) Total lease cost $ 8,639 The Company elected to exempt the short-term lease from the recognition requirements as permitted under ASU No. 2016-02. The lease cost was recognized on a straight-line basis. As of December 31, 2019, a right-of-use asset of $66.1 million and an operating lease liability of $77.4 million were included as part of “other assets” and “other liabilities,” respectively, on the consolidated balance sheets. (Dollars in thousands) Weighted average remaining lease term (in years) 12.3 Weighted average discount rate 4.7 % The following table presents a maturity analysis of the Company’s operating lease liabilities as of December 31, 2019: (In thousands) 2020 $ 11,144 2021 11,070 2022 9,460 2023 8,833 2024 7,315 Thereafter 55,820 Total lease payments 103,642 Less: interest (26,260 ) Operating lease liability $ 77,382 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Deposits | Note 9—Deposits Domestic time deposits $250,000 and over were $644.1 million and $491.3 million at December 31, 2019 and 2018, respectively. There were no foreign time deposits at either December 31, 2019 or 2018. At December 31, 2019, the scheduled maturities of time deposits included in interest-bearing deposits were as follows: (In thousands) December 31, 2019 2020 $ 2,266,107 2021 236,414 2022 41,013 2023 8,908 2024 and thereafter 11,065 Total $ 2,563,507 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 10—Borrowed Funds Repurchase Agreements Securities sold under agreements to repurchase generally mature within one to seven days from the transaction date. Securities underlying the repurchase agreements remain under the control of the Company. Repurchase agreements are treated as collateralized financing obligations and are reflected as a liability in the consolidated balance sheets. The carrying value of investment securities collateralizing repurchase agreements was $0 million and $3.3 million at December 31, 2019 and 2018, respectively. Information concerning the Company’s securities sold under agreements to repurchase as of December 31, 2019 and 2018 is summarized as follows: December 31, (Dollars in thousands) 2019 2018 Balance at period end $ — $ 1,106 Average balance during the period 3,855 1,630 Average interest rate during the period 0.15 % 0.25 % Maximum month-end balance during the period $ 23,908 $ 2,384 Senior and Subordinated Debt In June 2019, the Company completed a registered public offering of $85 million aggregate principal amount of 4.75% fixed to floating rate subordinated notes due 2029, the net proceeds of which were used to redeem our 4.875% senior notes due June 28, 2019. In June 2014, the Company and the Bank completed an unregistered $245 million multi-tranche debt transaction and in March 2015, the Company completed an unregistered $50 million debt transaction. These transactions enhanced our liquidity and regulatory capital levels to support balance sheet growth. Details of the debt transactions are as follows: December 31, (In thousands) 2019 2018 Cadence Bancorporation: 4.875% senior notes, due June 28, 2019 $ — $ 145,000 5.375% senior notes, due June 28, 2021 50,000 50,000 7.250% subordinated notes, due June 28, 2029, callable in 2024 35,000 35,000 6.500% subordinated notes, due March 2025 40,000 40,000 4.750% subordinated notes, due June 2029 85,000 — Total — Cadence Bancorporation 210,000 270,000 Cadence Bank: 6.250% subordinated notes, due June 28, 2029, callable in 2024 25,000 25,000 Debt issue costs and unamortized premium (2,350 ) (1,211 ) Purchased 4.875% senior notes, due June 28, 2019 — (10,078 ) Total senior and subordinated debt $ 232,650 $ 283,711 The senior transactions were structured with four and seven year maturities to provide holding company liquidity and to stagger the Company’s debt maturity profile. The $35 million and $25 million subordinated debt transactions were structured with a fifteen year maturity, ten year call options, and fixed-to-floating interest rates. The $85 million subordinated debt transaction was structured with a ten-year five-year five-year The Company’s outstanding senior note is unsecured, unsubordinated obligations and is equal in right of payment to all the Company’s other unsecured debt. The Company’s subordinated notes are unsecured obligations and will be subordinated in right of payment to all the Company’s senior indebtedness and general creditors and to depositors at the Bank. The Company’s senior notes and subordinated notes are not guaranteed by any subsidiary of the Company, including the Bank. The Bank’s subordinated notes are unsecured obligations and are subordinated in right of payment to all the Bank’s senior indebtedness and general creditors and to depositors of the Bank. The Bank’s subordinated notes are not guaranteed by the Company or any subsidiary of the Bank. Payment of principal on the Company’s and Bank’s subordinated notes may be accelerated by holders of such subordinated notes only in the case of certain insolvency events. There is no right of acceleration under the subordinated notes in the case of default. The Company and/or the Bank may be required to obtain the prior written approval of the Federal Reserve, and, in the case of the Bank, the OCC, before it may repay the subordinated notes issued thereby upon acceleration or otherwise. Junior Subordinated Debentures In conjunction with the Company’s acquisition of Cadence Financial Corporation and Encore Bank, N.A., the junior subordinated debentures were marked to fair value as of their respective acquisition dates. The related mark is being amortized over the remaining term of the junior subordinated debentures. The following is a list of junior subordinated debt: December 31, (In thousands) 2019 2018 Junior subordinated debentures, 3 month LIBOR plus 2.85%, due 2033 $ 30,000 $ 30,000 Junior subordinated debentures, 3 month LIBOR plus 2.95%, due 2033 5,155 5,155 Junior subordinated debentures, 3 month LIBOR plus 1.75%, due 2037 15,464 15,464 Total par value 50,619 50,619 Purchase accounting adjustment, net of amortization (13,174 ) (13,666 ) Total junior subordinated debentures $ 37,445 $ 36,953 Advances from FHLB and Borrowings from FRB Outstanding FHLB advances were $100.0 million and $150.0 million at December 31, 2019 and 2018, respectively. At December 31, 2019, the outstanding advance was a long-term convertible advance. Advances are collateralized by $2.0 billion of commercial and residential real estate loans pledged under a blanket lien arrangement as of December 31, 2019, which provides $1.5 billion of borrowing availability. As of December 31, 2019, and 2018, the FHLB has issued for the benefit of the Bank irrevocable letters of credit totaling $391.0 million and $590.0 million, respectively. Included in the FHLB letters of credit is a $35.0 million irrevocable letter of credit in favor of the State of Alabama SAFE Program to secure certain deposits of the State of Alabama. This letter of credit expires September 28, 2020 upon 45 days’ prior notice of non-renewal; otherwise it automatically extends for a successive one-year one-year There were no borrowings from the FRB discount window as of December 31, 2019 and 2018. Any borrowings from the FRB will be collateralized by $684.5 million in commercial loans pledged under a borrower-in-custody arrangement. Notes Payable On July 1, 2019, the Company’s wholly owned subsidiary, Linscomb & Williams, Inc., acquired certain assets and assumed certain liabilities of Wealth and Pension Services Group, Inc. (“W&P”). At December 31, 2019, a note payable of $2.1 million was outstanding in connection with this acquisition (see Note 2). On March 29, 2019, the Company entered into a credit agreement for a revolving loan facility in the amount of $100 million with a maturity date of March 29, 2020. The proceeds of the revolving loan are used to finance general corporate purposes. There were no amounts outstanding under this line of credit at December 31, 2019. |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Other Noninterest Income and Other Noninterest Expense | Note 11—Other Noninterest Income and Other Noninterest Expense The detail of the other noninterest income and other noninterest expense captions presented in the consolidated statements of income is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Other noninterest income Insurance revenue $ 878 $ 2,677 $ 7,378 Mortgage banking income 3,174 2,372 3,731 Income from bank owned life insurance policies 4,971 3,450 3,313 Other 6,881 6,033 6,655 Total other noninterest income $ 15,904 $ 14,532 $ 21,077 Year Ended December 31, (In thousands) 2019 2018 2017 Other noninterest expenses Data processing expense $ 13,013 $ 8,775 $ 7,590 Software amortization 13,352 5,929 6,635 Consulting and professional fees 10,301 13,285 9,090 Loan related expenses 2,383 3,145 2,379 FDIC insurance 5,394 4,645 4,275 Communications 5,116 2,773 2,837 Advertising and public relations 5,017 2,523 2,048 Legal expenses 1,608 3,732 4,274 Other 41,716 22,373 21,537 Total other noninterest expenses $ 97,900 $ 67,180 $ 60,665 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 12—Income Taxes The components of the consolidated income tax expense are as follows: For the Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 41,863 $ 36,862 $ 33,799 State 6,640 3,791 2,458 Total current expense 48,503 40,653 36,257 Deferred: Federal 11,012 3,791 44,009 State 828 673 380 Total deferred expense 11,840 4,464 44,389 Total income tax expense $ 60,343 $ 45,117 $ 80,646 Income tax expense as shown in the consolidated statements of income differed from the amounts computed by applying the U.S. federal income tax statutory rate to income before income taxes. The statutory rate is 21 % for 2019 and 2018 and 35 % for 2017. A reconciliation of the differences is presented below: For the Year Ended December 31, (In thousands) 2019 2018 2017 Computed income tax expense at statutory rate $ 55,083 $ 44,389 $ 64,050 Effects of tax reform — (284 ) 19,022 Tax exempt interest, net (952 ) (1,609 ) (3,988 ) Income on bank owned life insurance (1,036 ) (717 ) (1,148 ) State tax expense 5,900 3,527 2,279 Goodwill write-off on sale of subsidiary assets — 2,254 — One-time bad debt deduction on legacy loan portfolio — (5,565 ) — Other, net 1,348 3,122 431 Total income tax expense $ 60,343 $ 45,117 $ 80,646 As a result of the Tax Cuts and Jobs Act (“Tax Reform”) enacted on December 22, 2017, deferred taxes are based on the newly enacted U.S. federal statutory income tax rate of 21%. In 2017, the provisional amount recorded related to the remeasurement of the Company’s deferred tax asset was $19.0 million, which was recorded as income tax expense. The Company completed its analysis of the remeasurement of the Company’s deferred tax asset within the measurement period and the amount was not materially different from the provisional amount recorded in 2017. The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: As of December 31, (In thousands) 2019 2018 Deferred income tax assets: Allowance for credit losses $ 25,950 $ 20,256 Lease liability 18,235 — Deferred compensation 4,562 3,338 Accrued compensation 3,355 3,630 Net operating loss carryforwards 11,524 8,893 Alternative minimum tax credit carryover 489 978 Unrealized losses on securities, net — 7,910 Unrealized losses on derivative instruments — 5,496 Other 2,847 3,588 Tax basis difference in acquired assets Loans 8,756 — Investment securities 1,344 — Other 2,183 — Total deferred income tax assets 79,245 54,089 Deferred income tax liabilities: Tax basis difference in acquired assets Intangible assets 37,647 11,046 Other 3,379 3,580 Right of use assets 15,550 — Premises and equipment 4,941 — Unrealized gain on securities, net 5,265 — Unrealized gain on derivative instruments 28,550 — Other 8,895 6,239 Total deferred income tax liabilities 104,227 20,865 Net deferred income tax (liability) asset $ (24,982 ) $ 33,224 At December 31, 2019, we had a net deferred income tax liability of $25.0 million compared to a net deferred asset of $33.2 million at December 31, 2018. The decrease in the net deferred asset was primarily due to certain purchase accounting adjustments recorded during the State Bank acquisition, changes in market conditions that impacted the mark to market deferred tax adjustments on securities available-for-sale and on cash flow hedges including the interest rate collar. A SC Topic 740, Income Taxes , requires that deferred tax assets be reduced if it is more likely than not that some portion or all the deferred tax asset will not be realized. Management’s determination of the realizability of deferred tax assets is based on its evaluation of all available evidence both positive and negative, and its expectation regarding various future events, including the reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Positive evidence supporting the realization of the Company’s deferred tax assets at December 31, 2019, includes generation of taxable income since 2012, the Company’s strong capital position, as well as sufficient amounts of projected future taxable income, of the appropriate character, to support the realization of the $79.2 million at December 31, 2019. Based on the assessment of all positive and negative evidence at December 31, 2019 and 2018, management has concluded that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets. Management’s estimate of future taxable income is based on internal projections, various internal assumptions, as well as certain external data all of which management believes to be reasonable although inherently subject to significant judgment. Projected future taxable income is primarily expected to be generated through loan growth at the bank, investment strategies and revenue from successful cross initiatives and the control of expenses through operating effectiveness, all in the context of a macro-economic environment that continues to trend favorably. If actual results differ significantly from the current estimates of future taxable income, a valuation allowance may need to be recorded for some portion or all the net deferred tax asset. Such an increase to the deferred tax asset valuation allowance could have a material adverse effect on the Company’s consolidated balance sheets and consolidated statements of income. The acquisitions of Cadence Financial Corporation, Encore Bancshares, Inc., and State Bank resulted in an “ownership change” as defined for U.S. federal income tax purposes under Section 382 of the Internal Revenue Code. The acquisition of Superior Bank was an asset acquisition and is not subject to the limitations of Section 382. As a result of the operation of Section 382, the Company is not able to fully utilize a portion of our U.S. federal and state tax net operating losses and certain built-in losses that have not been recognized for tax purposes. An ownership change under Section 382 generally occurs when a change in the aggregate percentage ownership of the stock of the corporation held by 5% stockholders increases by more than 50% over a rolling three-year period. A corporation experiencing an ownership change generally is subject to an annual limitation on its utilization of pre-change losses and certain post-change recognized built-in losses equal to the value of the stock of the corporation immediately before the ownership change, multiplied by the long-term tax-exempt rate (subject to certain adjustments). The annual limitation is increased each year to the extent that there is an unused limitation in a prior year. Since U.S. federal net operating losses generally may be carried forward for up to 20 years, the annual limitation also effectively provides a cap on the cumulative amount of pre-change losses and certain post-change recognized built-in losses that may be utilized. Pre-change losses and certain post-change recognized built-in losses in excess of the cap are effectively unable to be used to reduce future taxable income. The Company has estimated the amount of pre-change losses and certain post-change losses that are not expected to be utilized and has reduced the deferred tax asset at the acquisition date to reflect this limitation. As of December 31, 2019, the Company has federal net operating loss carryforwards of $48.2 million which will begin to expire in 2031. The Company has state net operating loss carryforwards of $31.9 million which will begin to expire in 2024. In addition, the Company has an AMT credit carryforward of $0.5 million as of December 31, 2019, which has no expiration. The Company and its subsidiaries are subject to U.S. federal income tax as well as various state and local income taxes. With certain limited exceptions, the Company has concluded all U.S. federal and state income tax matters for years before 2015. The Company applies the guidance in ASC 740-10, Accounting for Uncertainty in Income Taxes A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact): For the Year Ended December 31, (In thousands) 2019 2018 2017 Unrecognized income tax benefits, January 1 $ 1,272 $ 894 $ 944 Increases for tax positions related to: Prior years — — 9 Current year 54 479 394 Decreases for tax positions related to: Prior years (38 ) (101 ) (453 ) Current year — — — Settlement with taxing authorities — — — Expiration of applicable statutes of limitations — — — Unrecognized income tax benefits, December 31 $ 1,288 $ 1,272 $ 894 As of December 31, 2019, and 2018, the balance of unrecognized tax benefits, if recognized, that would reduce the effective tax rate is $1.0 million. The Company does not anticipate a significant change to the total amount of unrecognized tax benefits with the next 12 months. The Company classifies interest and penalties on uncertain tax positions as a component of noninterest expense. During the years ended December 31, 2019 and 2018, the Company recognized approximately $123,000 and $57,000 in interest and penalties. The Company’s accrued interest and penalties on unrecognized tax benefits was $259,000 and $137,000 as of December 31, 2019 and 2018, respectively. Accrued interest and penalties are included in other liabilities. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 13—Earnings Per Common Share The following table displays a reconciliation of the information used in calculating basic and diluted net income per common share for each of the years in the period ended December 31, 2019. Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Net income per consolidated statements of income $ 201,958 $ 166,261 $ 102,353 Net income allocated to participating securities (683 ) (197 ) — Net income allocated to common stock $ 201,275 $ 166,064 $ 102,353 Weighted average common shares outstanding (Basic) 128,913,962 83,562,109 81,072,945 Weighted average dilutive restricted stock units and warrants 103,637 813,180 532,070 Weighted average common shares outstanding (Diluted) 129,017,599 84,375,289 81,605,015 Earnings per common share (Basic) $ 1.56 $ 1.99 $ 1.26 Earnings per common share (Diluted) $ 1.56 $ 1.97 $ 1.25 The effect from the assumed exercise of 1,393,783 stock options and restricted stock units for the year ended December 31, 2019 was not included in the above computations of diluted earnings per share because such amounts would have had an antidilutive effect on earnings per common share. There were 67,384 antidilutive restricted stock units for the year ended December 31, 2018. There were no antidilutive stock options and restricted stock units for the year ended December 31, 2017. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | Note 14—Employee Benefits Defined Benefit Pension Plan The Company accounts for its defined benefit pension plan in accordance with ASC Topic 715. This guidance requires companies to recognize the funded status of a defined benefit plan (measured as the difference between the fair value of plan assets and the projected benefit obligation) on the balance sheets and to recognize in other comprehensive income any gains or losses and prior service costs or benefits not included as components of periodic benefit cost. Participation in the defined benefit pension plan was frozen effective April 30, 2011. In 2019, the Company terminated its defined benefit pension plan. Lump sum payments of accrued benefits were offered to plan participants. For those participants who did not elect the lump sum payment, an annuity contract was purchased. The following table sets forth the defined benefit pension plan’s funded status as of December 31, 2019 and 2018 and amounts recognized in the Company’s consolidated financial statements for each of the years in the period ended December 31, 2019: (In thousands) 2019 2018 Change in benefit obligation: Benefit obligation at beginning of period $ 5,116 $ 5,909 Service cost 71 100 Interest cost 126 165 Actuarial loss (gain) 269 (797 ) Administrative expenses paid (147 ) (36 ) Benefits paid (47 ) (225 ) Settlements (5,388 ) — Benefit obligation at end of year — 5,116 Change in plan assets: Fair value of plan assets at beginning of period 5,656 6,130 Return on plan assets 278 (213 ) Employer contributions — — Administrative expenses paid (147 ) (36 ) Benefits paid (47 ) (225 ) Settlements (5,459 ) — Fair value of plan assets at end of year 281 5,656 Funded status $ — $ 540 (In thousands) 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 71 $ 100 $ 100 Interest cost 126 165 192 Expected return on plan assets (198 ) (319 ) (261 ) Net loss amortization 11 — 65 Cost of settlements 1,225 — 45 Net periodic benefit cost $ 1,235 $ (54 ) $ 141 Amount recognized in accumulated other comprehensive income: Amortization of net actuarial loss $ 11 $ — $ 65 Net actuarial (loss) gain (147 ) 265 48 Adjustment for settlement 461 — 45 Gains on pension liability 325 265 158 Tax effect 3 (62 ) (37 ) Net unrealized gains on pension liability $ 328 $ 203 $ 121 2019 2018 2017 Weighted average assumptions used to determine benefit obligations and net periodic pension cost at December 31: Discount rate N/A 3.92 % 3.21 % Compensation increase rate N/A N/A N/A Census date N/A 1/1/2019 1/1/2018 Expected return on plan assets N/A 5.50 % 5.50 % Due to the termination of the defined benefit pension plan in 2019, there are no future r etiree benefit payments . In determining the expected return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets, individual asset classes, and economic and other indicators of future performance. In addition, the Company may consult with and consider the opinions of financial and other professionals in developing appropriate return benchmarks. The Company’s defined benefit pension plan fair values and weighted-average asset allocations at December 31, 2019 and 2018, by asset category, were as follows: 2019 2018 (In thousands) Fair Value of Plan Assets Asset Allocations Fair Value of Plan Assets Asset Allocations Asset Category: Equity securities $ — — % $ 2,262 40 % Fixed income securities — — 3,311 59 Cash and cash equivalents 281 100 83 1 Total $ 281 100 % $ 5,656 100 % The primary investment objective of the Company’s defined benefit pension plan has been to maximize total return while accepting and managing a moderate to average degree of risk. The assets are invested based upon a moderate growth asset allocation model, which seeks to provide long-term growth of capital with a moderate level of current income and a somewhat higher level of principal volatility. For 2019, the assets were allocated in a target mix of fixed income, equity, and other funds. The investments were managed by the Trust Division of the Company within the established guidelines. It is the intent of management to give the investment managers flexibility within the overall parameters designated in the investment model selected by the Bank’s Trust Company Investment Committee for the plan. The fair values of all plan assets as of December 31, 2019 and 2018, were measured using quoted prices in active markets for identical assets and liabilities (Level 1 inputs, as defined by ASC 820). The Company does not have a minimum cash contribution for 2020. The Company did not contribute in 2019 or 2018. The Company contributed $1.3 million for the year ended December 31, 2017. Other Plans Contributions to the 401(k) plan totaled $7.4 million and $3.8 million in 2019 and 2018, respectively. The Company has certain nonqualified postretirement benefit plans assumed from legacy banks. The accrued liabilities for these plans totaled $5.7 million and $4.9 million at December 31, 2019 and 2018, respectively. The Company recognized expense for these plans totaling $2.0 million, $(0.3) million, and $0.8 million for the years ended December 31, 2019, 2018, and 2017, respectively. Projected benefit payments under these plans are anticipated to be paid as follows: Year Amount (In thousands) 2020 $ 416 2021 420 2022 591 2023 614 2024 718 2025-2029 4,269 Total $ 7,028 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15—Related Party Transactions In the normal course of business, loans are made to directors and executive officers and to companies in which they have a significant ownership interest. In the opinion of management, these loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other parties, are consistent with sound banking practices, and are within applicable regulatory and lending limitations. The aggregate balances of related party deposits are insignificant as of December 31, 2019. As of December 31, 2018, the aggregate balances of related party deposits were approximately $571 million. This was primarily due to a deposit account of approximately $311 million by State Bank and one large deposit account by a related third party. The aggregate balances of related party loans as of December 31, 2019 and 2018 were insignificant. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | Note 16—Regulatory Matters Cadence and Cadence Bank are each required to comply with regulatory capital requirements established by federal and state banking agencies. Quantitative measures established by regulation to ensure capital adequacy require institutions to maintain minimum ratios of common equity Tier 1, Tier 1, and total capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital to average tangible assets (the “Leverage” ratio). The actual capital amounts and ratios for the Company and the Bank as of December 31, 2019 and 2018 are presented in the following tables and as shown, are above the thresholds necessary to be considered “well-capitalized.” Managem ent believes that no events or changes have occurred after December 31, 2019 that would change this designation. Consolidated Company Bank (In thousands) Amount Ratio Amount Ratio December 31, 2019 Tier 1 leverage $ 1,784,664 10.3 % $ 1,953,008 11.3 % Common equity tier 1 capital 1,784,664 11.5 1,903,008 12.3 Tier 1 risk-based capital 1,784,664 11.5 1,953,008 12.6 Total risk-based capital 2,120,571 13.7 2,099,146 13.6 Minimum requirement: Tier 1 leverage 690,213 4.0 689,881 4.0 Common equity tier 1 capital 697,089 4.5 696,755 4.5 Tier 1 risk-based capital 929,453 6.0 929,007 6.0 Total risk-based capital 1,239,270 8.0 1,238,676 8.0 Well capitalized requirement: Tier 1 leverage N/A N/A 862,351 5.0 Common equity tier 1 capital N/A N/A 1,006,425 6.5 Tier 1 risk-based capital 929,453 6.0 1,238,676 8.0 Total risk-based capital 1,549,088 10.0 1,548,345 10.0 Consolidated Company Bank (In thousands) Amount Ratio Amount Ratio December 31, 2018 Tier 1 leverage $ 1,209,407 10.1 % $ 1,327,974 11.1 % Common equity tier 1 capital 1,172,454 9.8 1,277,974 10.7 Tier 1 risk-based capital 1,209,407 10.1 1,327,974 11.1 Total risk-based capital 1,403,311 11.8 1,447,719 12.1 Minimum requirement: Tier 1 leverage 479,940 4.0 479,667 4.0 Common equity tier 1 capital 536,930 4.5 536,285 4.5 Tier 1 risk-based capital 715,907 6.0 715,047 6.0 Total risk-based capital 954,542 8.0 953,396 8.0 Well capitalized requirement: Tier 1 leverage N/A N/A 599,584 5.0 Common equity tier 1 capital N/A N/A 774,634 6.5 Tier 1 risk-based capital 715,907 6.0 953,396 8.0 Total risk-based capital 1,193,178 10.0 1,191,745 10.0 Under regulations controlling national banks, the payment of any dividends by a bank without prior approval of the OCC is limited to the current year’s net profits (as defined by the OCC) and retained net profits of the two preceding years. The Federal Reserve, as primary regulator for bank holding companies, has also stated that all common stock dividends should be paid out of current income. As the Company does not generate income on a stand-alone basis, it does not have the capability to pay common stock dividends without receiving dividends from the Bank. The Bank is required to maintain average reserve balances in the form of cash or deposits with the Federal Reserve Bank. The reserve balance varies depending upon the types and amounts of deposits. At December 31, 2019 and 2018, the required reserve balance with the Federal Reserve Bank was approximately $246.0 million and $91.5 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Note 17—Commitments and Contingent Liabilities The consolidated financial statements do not reflect various commitments and contingent liabilities which arise in the normal course of banking business and which involve elements of credit risk, interest rate risk, and liquidity risk. The commitments and contingent liabilities are commitments to extend credit, home equity lines, overdraft protection lines, and standby and commercial letters of credit. Such financial instruments are recorded when they are funded. A summary of commitments and contingent liabilities is as follows: As of December 31, (In thousands) 2019 2018 Commitments to extend credit $ 4,667,360 $ 4,078,708 Commitments to grant loans 292,199 103,570 Standby letters of credit 213,548 141,214 Performance letters of credit 27,985 21,026 Commercial letters of credit 15,587 11,262 Commitments to extend credit and letters of credit include some exposure to credit loss in the event of nonperformance of the customer. 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. In addition, the Company has entered certain contingent commitments to grant loans. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit policies and procedures for such commitments are the same as those used for lending activities. Because these instruments have fixed maturity dates and because a number expire without being drawn upon, they generally do not present any significant liquidity risk. No significant losses on commitments were incurred during the years ended December 31, 2019 and 2018. The Company makes investments in limited partnerships, including certain low-income housing partnerships for which tax credits are received. As of December 31, 2019 and 2018, unfunded capital commitments totaled $44.9 million and $37.5 million, respectively (Note 21). The Company and the Bank are defendants in various pending and threatened legal actions arising in the normal course of business. In the opinion of management, based upon the advice of legal counsel, the ultimate disposition of all pending and threatened legal action will not have a material effect on the Company’s consolidated financial statements. On September 16, 2019, a Company shareholder filed a putative class action complaint against Cadence Bancorporation and certain senior officers. Following consolidation of a related matter and appointment of lead plaintiffs, the lead plaintiffs filed an amended complaint on January 31, 2020, which asserted claims under Sections 10(b) and 20 of the Securities Exchange Act on behalf of a putative class of persons and entities that purchased or otherwise acquired the Company’s securities between July 23, 2018, and January 23, 2020, inclusive. The amended complaint alleges that the Company and the individual defendants made materially misleading statements about the credit quality of the Company’s loan portfolio, did not timely charge off bad debt or record sufficient loss provisions to reserve against the risk of loss, and maintained an inadequate allowance for credit losses. The consolidated case is captioned Frank Miller et al. v. Cadence Bancorporation et al. , Case No. H-19-3492-LNH, i n the United States District Court for the Southern District of Texas. The Company and the individual defendants intend to file a motion to dismiss and to mount a vigorous defense. The case is in its preliminary stages, discovery has not yet commenced, and it is not possible at this time to estimate the likelihood or amount of any potential damages exposure . |
Concentrations of Credit
Concentrations of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Risks And Uncertainties [Abstract] | |
Concentrations of Credit | Note 18—Concentrations of Credit Most of the loans, commitments and letters of credit involve customers or sponsors in the Company’s market areas. Investments in state and municipal securities also involve governmental entities within the Company’s market areas. General concentrations of credit by type of loan are set forth in Note 4 of these consolidated financial statements. The distribution of commitments to extend credit approximates the distribution of loans outstanding. Letters of credit were granted primarily to commercial borrowers. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Note 19—Supplemental Cash Flow Information For the Year Ended December 31, (In thousands) 2019 2018 2017 Cash paid during the year for: Interest $ 207,052 $ 120,823 $ 69,289 Income taxes, net of refunds 51,729 40,754 33,268 Cash paid for amounts included in lease liabilities 11,276 — — Non-cash investing activities (at fair value): Acquisition of real estate in settlement of loans 2,769 3,207 7,023 Transfers of loans held for sale to loans 44,210 — — Transfers of loans to loans held for sale 123,815 36,627 16,206 Right-of-use assets obtained in exchange for operating lease liabilities 84,952 — — |
Disclosure About Fair Values of
Disclosure About Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Disclosure About Fair Values of Financial Instruments | Note 20—Disclosure About Fair Values of Financial Instruments The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value. This hierarchy requires the Company to maximize the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. Each fair value measurement is placed into the proper level based on the lowest level of significant input. These levels are: • Level 1 —Valuation is based upon quoted prices for identical instruments traded in active markets. • Level 2 —Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. • Level 3 —Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models, and similar techniques. Transfers between fair value levels are recognized at the end of the fiscal quarter in which the associated change in inputs occurs. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset and liability at December 31, 2019 and 2018: (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2019 Assets Investment securities available-for-sale $ 2,368,592 $ — $ 2,368,592 $ — Equity securities with readily determinable fair values not held for trading 1,862 1,862 — — Derivative assets 257,137 — 257,137 — Other assets 26,882 — — 26,882 Total recurring basis measured assets $ 2,654,473 $ 1,862 $ 2,625,729 $ 26,882 Liabilities Derivative liabilities $ 11,211 $ — $ 11,211 $ — Total recurring basis measured liabilities $ 11,211 $ — $ 11,211 $ — (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2018 Assets Investment securities available-for-sale $ 1,187,252 $ — $ 1,187,252 $ — Equity securities with readily determinable fair values not held for trading 5,840 5,840 — — Derivative assets 11,136 — 11,136 — Other assets 16,970 — — 16,970 Total recurring basis measured assets $ 1,221,198 $ 5,840 $ 1,198,388 $ 16,970 Liabilities Derivative liabilities $ 32,350 $ — $ 32,350 $ — Total recurring basis measured liabilities $ 32,350 $ — $ 32,350 $ — There were no transfers between the Level 1 and Level 2 fair value categories during the years ended December 31, 2019 and 2018. C hanges in Level 3 Fair Value Measurements Recorded on a Recurring Basis The table below includes a roll-forward of the consolidated balance sheet amounts for each of the years in the period ended December 31, 2019 Level 3 Assets Measured at Fair Value on a Recurring Basis For the Years Ended December 31, 2019 2018 2019 2018 2019 2018 (In thousands) Net Profits Interests Investments in Limited Partnerships SBA Servicing Assets Beginning Balance $ 5,779 $ 15,833 $ 11,191 $ — $ — $ — Acquired — — — — 6,213 — Originations — — — — 1,412 — Transfers in due to adoption of ASU 2016-01 — — — 5,129 — — Adjustment recorded in retained earnings due to adoption of ASU 2016-01 — — — 1,201 — — Sales proceeds — (5,308 ) — — — — Net (losses) gains included in earnings (874 ) (3,177 ) 2,841 2,457 (3,815 ) — Reclassifications — — 140 — — — Contributions paid — — 5,970 3,807 — — Distributions received (575 ) (1,569 ) (1,400 ) (1,403 ) — — Ending Balance $ 4,330 $ 5,779 $ 18,742 $ 11,191 $ 3,810 $ — Net unrealized (losses) gains included in earnings relating to assets held at the end of the period $ (874 ) $ (2,818 ) $ 2,841 $ 2,457 $ (3,815 ) $ — The fair value of the net profit interests in oil and gas reserves was estimated using discounted cash flow analyses applied to the expected cash flows from producing developed wells. Expected cash flows are derived from reports prepared by consulting engineers under established professional standards for the industry. These expected cash flow projections contain significant unobservable inputs regarding the net recoverable oil and gas reserves and forward-looking commodity prices discounted at a rate of 10%. Therefore, the fair value is subject to change based on these commodity markets. An increase of 5% in the discount rate will not produce a material change in the fair value of the net profits interest. The fair value of certain investments in limited partnerships was estimated using the practical expedient of net asset value. For other investments in limited partnerships that do not qualify for the practical expedient, we use a measurement alternative which measures these investments at cost, less any impairment, plus or minus any changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. The fair value of the SBA servicing assets was estimated using the gross coupon less an assumed contractual servicing cost (CSC) of 40 basis points for Section 7a loans and 12.5 basis points for USDA loans. Assets Recorded at Fair Value on a Nonrecurring Basis From time to time, the Company may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheets at December 31, 2019 and 2018, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value: (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2019 Loans held for sale $ 87,649 $ — $ 87,649 $ — Impaired loans, net of specific allowance 101,561 — — 101,561 Other real estate 1,628 — — 1,628 Total assets measured on a nonrecurring basis $ 190,838 $ — $ 87,649 $ 103,189 (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2018 Loans held for sale $ 59,461 $ — $ 59,461 $ — Impaired loans, net of specific allowance 71,742 — — 71,742 Other real estate 2,406 — — 2,406 Total assets measured on a nonrecurring basis $ 133,609 $ — $ 59,461 $ 74,148 The fair value of collateral-dependent impaired loans and OREO and the related fair value adjustments are generally based on unadjusted third-party appraisals. Appraisals that are not based on observable inputs or that require significant adjustments or fair value measurements that are not based on third-party appraisals are considered to be based on significant unobservable inputs. Significant unobservable inputs used in Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis are summarized below: Quantitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Value Valuation Methods Unobservable Inputs Range December 31, 2019 Impaired loans, net of specific allowance $ 101,561 Appraised value, as adjusted Discount to fair value 0% - 50% Appraised value, as adjusted Minimum guaranteed proceeds per Settlement Agreement 0% (1) Discounted cash flow Discount rate 5.8% 0% (1) Enterprise value Exit and earnings multiples, discounted cash flows, and market comparables 0% - 46% (1) Other real estate 1,628 Appraised value, as adjusted Discount to fair value 0% - 20% Estimated closing costs 10% (1) - Represents difference of remaining balance to fair value. Quantitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Value Valuation Methods Unobservable Inputs Range December 31, 2018 Impaired loans, net of specific allowance $ 71,742 Appraised value, as adjusted Discount to fair value 0% - 20% Discounted cash flow Net recoverable oil and gas reserves and forward-looking commodity prices. Discount rate - 10% 0% - 10% (1) Discounted cash flow Discount rates 2.9% to 8.7% 0% - 20% (1) Enterprise value Exit multiples 0%-15% (1) Estimated closing costs 10% Other real estate 2,406 Appraised value, as adjusted Discount to fair value 0% - 20% Estimated closing costs 10% (1) - Represents difference of remaining balance to fair value. Determination of Fair Values In accordance with ASC 820-10-35, fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following describes the assumptions and methodologies used to estimate the fair value of financial instruments recorded at fair value in the consolidated balance sheets and for estimating the fair value of financial instruments for which fair value is disclosed under ASC 825-10-50. Investment Securities . When quoted prices are available in an active market, securities are classified as Level 1. For securities reported at fair value utilizing Level 2 inputs, the Company obtains fair value measurements from an independent pricing service. These fair value measurements consider observable market data that may include benchmark yield curves, reported trades, broker/dealer quotes, issuer spreads and credit information, among other inputs. Loans Held for Sale . Loans held for sale are recorded at the lower of aggregate cost or fair value. Fair value is generally based on quoted market prices of similar loans and is considered to be Level 2. Net Loans . Loans are valued on an individual basis, with consideration given to the loans’ underlying characteristics, including account types, remaining terms, annual interest rates or coupons, interest types, accrual basis, timing of principal and interest payments, current market rates, and remaining balances. A discounted cash flow model is used to estimate the fair value of the loans using assumptions for prepayments speeds, projected default probabilities by risk grade, and estimates of prevailing discount rates. The discounted cash flow approach models the projected cash flows, applying various assumptions regarding interest and payment risks for the loans based on the loan types, payment types and fixed or variable interest rate classifications. Estimated fair values are disclosed through the application of the exit price notion. The assumptions used to estimate fair value are intended to approximate those that a market participant would use in an orderly transaction on the measurement date. Derivative Financial Instruments . Derivative financial instruments are measured at fair value based on modeling that utilizes observable market inputs for various interest rates published by leading third-party financial news and data providers. This is observable data that represents the rates used by market participants for instruments entered into at that date; however, they are not based on actual transactions, so they are classified as Level 2. Deposits . The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for time deposits are estimated using a discounted cash flow calculation that uses recent issuance rates over the prior three months and a market rate analysis of recent offering rates for retail products . For wholesale products, brokered pricing offering rates were used. FHLB . The fair value of the FHLB advance approximates its book value. Security Sold Under Agreements to Repurchase . The carrying amount of security repurchase agreements approximates their fair values. Senior Debt . The fair value of senior debt was estimated using a discounted cash flow calculation that uses recent issuance rates for similar debt offerings for similar sized issuers. Subordinated Debt. The fair value of subordinated debentures was estimated using a discounted cash flow calculation that uses recent issuance rates for similar debt offerings for similar sized issuers. Junior Subordinated Debentures. The fair value of junior subordinated debentures was estimated using a discounted cash flow calculation that uses recent issuance rates for similar debt offerings for similar sized issuers. Notes Payable. The carrying amount of notes payable approximates the fair value. Limitations . The following fair value estimates are determined as of a specific point in time utilizing various assumptions and estimates. The use of assumptions and various valuation techniques, as well as the absence of secondary markets for certain financial instruments, will likely reduce the comparability of fair value disclosures between financial institutions. The fair values for loans involve the use of various assumptions due to market-illiquidity as of December 31, 2019 and 2018. These assumptions are considered to reflect inputs that market participants would use in transactions involving these instruments as of the measurement date. This table only includes financial instruments of the Company, and, accordingly, the total of the fair value amounts does not represent, and should not be construed to represent, the underlying value of the Company. The estimated fair values of the Company’s financial instruments are as follows: December 31, 2019 (In thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 252,447 $ 252,447 $ 252,447 $ — $ — Interest-bearing deposits in other banks 725,343 725,343 725,343 — — Federal funds sold 10,974 10,974 10,974 — — Investment securities available-for-sale 2,368,592 2,368,592 — 2,368,592 — Equity securities with readily determinable fair values not held for trading 1,862 1,862 1,862 — — Loans held for sale 87,649 87,649 — 87,649 — Net loans 12,864,012 12,755,360 — — 12,755,360 Derivative assets 257,137 257,137 — 257,137 — Other assets 72,719 72,719 — — 72,719 Financial Liabilities: Deposits 14,742,794 14,753,192 — 14,753,192 — Advances from FHLB 100,000 100,000 — 100,000 — Senior debt 49,938 51,202 — 51,202 — Subordinated debt 182,712 189,386 — 189,386 — Junior subordinated debentures 37,445 48,012 — 48,012 — Notes payable 2,078 2,078 — 2,078 — Derivative liabilities 11,211 11,211 — 11,211 — December 31, 2018 (In thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 237,342 $ 237,342 $ 237,342 $ — $ — Interest-bearing deposits in other banks 523,436 523,436 523,436 — — Federal funds sold 18,502 18,502 18,502 — — Investment securities available-for-sale 1,187,252 1,187,252 — 1,187,252 — Equity securities with readily determinable fair values not held for trading 5,840 5,840 5,840 — — Loans held for sale 59,461 59,461 — 59,461 — Net loans 9,959,545 9,735,130 — — 9,735,130 Derivative assets 11,136 11,136 — 11,136 — Other assets 42,696 42,696 — — 42,696 Financial Liabilities: Deposits 10,708,689 10,700,350 — 10,700,350 — Advances from FHLB 150,000 150,000 — 150,000 — Securities sold under agreements to repurchase 1,106 1,106 — 1,106 — Senior debt 184,801 194,762 — 194,762 — Subordinated debt 98,910 103,008 — 103,008 — Junior subordinated debentures 36,953 46,946 — 46,946 — Derivative liabilities 32,350 32,350 — 32,350 — |
Variable Interest Entities and
Variable Interest Entities and Other Investments | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities And Other Investments [Abstract] | |
Variable Interest Entities and Other Investments | Note 21—Variable Interest Entities and Other Investments Under ASC 810-10-65, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (“VIE”) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810-10-65, as amended, requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary. The Bank has invested in several affordable housing projects as a limited partner. The partnerships have qualified to receive annual affordable housing federal tax credits that are recognized as a reduction of current tax expense. The Company has determined that these structures meet the definition of VIE’s under ASC 810 but that consolidation is not required, as the Bank is not the primary beneficiary. At December 31, 2019 and 2018, the Bank’s maximum exposure to loss associated with these limited partnerships was limited to the Bank’s investment. The Company accounts for these investments and the related tax credits using either the effective yield method or the proportional amortization method, depending upon the date of the investment. Under the effective yield method, the Bank recognizes the tax credits as they are allocated and amortizes the initial costs of the investments to provide a constant effective yield over the period that the tax credits are allocated. Under the proportional amortization method, the Bank amortizes the cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense. At December 31, 2019 and 2018, the Company had recorded investments in other assets on its consolidated balance sheets of approximately $28.2 million and $7.8 million, respectively related to these investments. Additionally, the Company invests in other certain limited partnerships accounted for under the fair value practical expedient of net asset value (“NAV”) totaling $18.7 million and $11.2 million as of December 31, 2019 and 2018, respectively. The Company recognized gains of $2.8 million and $2.5 million for the years ended December 31, 2019 and 2018, respectively, related to these assets recorded at fair value through net income. Other limited partnerships without readily determinable fair values that do not qualify for the practical expedient are accounted for at their cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. These investments totaled $8.7 million as of December 31, 2019 and 2018. Other limited partnerships are accounted for under the equity method totaled $9.0 million and $9.2 million as of December 31, 2019 and 2018, respectively. The following table presents a summary of the Company’s investments in limited partnerships as of December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Affordable housing projects (amortized cost) $ 28,205 $ 7,803 Limited partnerships accounted for under the fair value practical expedient of NAV 18,742 11,191 Limited partnerships without readily determinable fair values that do not qualify for the practical expedient of NAV accounted for under the cost method 8,681 8,714 Limited partnerships required to be accounted for under the equity method 8,951 9,209 Total investments in limited partnerships $ 64,579 $ 36,917 Equity investments with readily determinable fair values not held for trading are recorded at fair value with changes in fair value reported in net income. Cadence elected a measurement alternative to fair value for certain equity investments without a readily determinable fair value. During 2019 and 2018, there were no adjustments to these investments for impairments or price changes from observable transactions. The carrying amount of equity investments measured under the measurement alternative are as follows: For the Years Ended (In thousands) December 31, 2019 December 31, 2018 Carrying value, Beginning of Year $ 8,714 $ 8,856 Reclassifications (140 ) — Distributions (1,758 ) (1,109 ) Contributions 1,865 967 Carrying value, End of Year $ 8,681 $ 8,714 Cadence’s investment in certain marketable equity securities are carried at fair value and are reported in other assets in the consolidated balance sheets. Total marketable equity securities were $1.9 million and $5.8 million at December 31, 2019 and 2018, respectively. During 2016, the Bank received net profits interests in oil and gas reserves, in connection with the reorganization under bankruptcy of two loan customers (one of these was sold during 2018). The Company has determined that these contracts meet the definition of VIE’s under Topic ASC 810, but that consolidation is not required as the Bank is not the primary beneficiary. The net profits interests are financial instruments and recorded at estimated fair value, which was $4.3 million and $5.8 million at December 31, 2019 and 2018, respectively, representing the maximum exposure to loss as of that date. The Company has established a rabbi trust related to the deferred compensation plan offered to certain of its employees. The Company contributes employee cash compensation deferrals to the trust. The assets of the trust are available to creditors of the Company only in the event the Company becomes insolvent. This trust is considered a VIE because either there is no equity at risk in the trust or because the Company provided the equity interest to its employees in exchange for services rendered. The Company is considered the primary beneficiary of the rabbi trust as it has the ability to select the underlying investments made by the trust, the activities that most significantly impact the economic performance of the rabbi trust. The Company includes the assets of the rabbi trust as a component of other assets and a corresponding liability for the associated benefit obligation in other liabilities in its consolidated balance sheets. The amount of rabbi trust assets and benefit obligation was $3.7 million and $3.6 million at December 31, 2019 and 2018, respectively. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 22—Segment Reporting The Company determines reportable segments based on the services offered, the significance of the services offered, the significance of those services to the Company’s financial condition and operating results and management’s regular review of the operating results of those services. The Company operates through three operating segments: Banking, Financial Services and Corporate. The Banking Segment includes the Commercial Banking, Retail Banking and Private Banking lines of business. The Commercial Banking line of business includes a general business services component primarily focusing on commercial & industrial (C&I), community banking, business banking and commercial real estate lending to clients in the geographic footprint in Texas and the southeast United States. In addition, the Commercial Banking line of business includes within C&I a separate component that focuses on select industries (which is referred to as the “specialized industries”) in which the Company believes it has specialized experience and service capabilities, including energy, healthcare, restaurant industry, and technology. The Company serve s clients in these specialized industries both within the geographic footprint and throughout the United States as a result of the national orientation of many of these businesses. The Retail Banking line of business offers a broad range of retail banking services including mortgage services through the branch network to serve the needs of consumer and small businesses in the geographic footprint. The Private Banking line of business offers banking services and loan products tailored to the needs of the high-net worth clients in the geographic footprint. The Financial Services Segment includes the Trust, Retail Brokerage, and Investment Services lines of business. These businesses offer products independently to their own customers as well as to Banking Segment clients. Investment Services operates through the “Linscomb & Williams” name. The products offered by the businesses in the Financial Services Segment primarily generate non-banking service fee income. The Corporate Segment reflects parent-only activities and intercompany eliminations. Business segment results are determined based upon the management reporting system, which assigns balance sheet and income statement items to each of the business segments. The process is designed around the organizational and management structure and, accordingly, the results derived are not necessarily comparable with similar information published by other financial institutions or in accordance with generally accepted accounting principles. The Company evaluates performance and allocates resources based on profit or loss from operations. There are no material inter-segment sales or transfers. The accounting policies used by each reportable segment are the same as those discussed in Note 1. All costs, except corporate administration and income taxes, have been allocated to the reportable segments. Therefore, combined amounts agree to the consolidated totals. The following tables present the operating results of the segments as of and for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 669,878 $ (2,156 ) $ (16,549 ) $ 651,173 Provision for credit losses 111,027 — — 111,027 Noninterest income 88,098 41,580 1,247 130,925 Noninterest expense 361,874 34,281 12,615 408,770 Income tax expense (benefit) 66,090 714 (6,461 ) 60,343 Net income (loss) $ 218,985 $ 4,429 $ (21,456 ) $ 201,958 Total assets $ 17,685,272 $ 107,772 $ 7,185 $ 17,800,229 Year Ended December 31, 2018 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 407,674 $ (2,307 ) $ (17,626 ) $ 387,741 Provision for credit losses 12,700 — — 12,700 Noninterest income 47,316 46,805 517 94,638 Noninterest expense 215,574 35,679 7,048 258,301 Income tax expense (benefit) 52,464 3,979 (11,326 ) 45,117 Net income (loss) $ 174,252 $ 4,840 $ (12,831 ) $ 166,261 Total assets $ 12,622,287 $ 94,618 $ 13,380 $ 12,730,285 Year Ended December 31, 2017 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 344,987 $ (1,347 ) $ (17,424 ) $ 326,216 Provision for credit losses 9,735 — — 9,735 Noninterest income 51,286 47,956 632 99,874 Noninterest expense 194,212 36,178 2,966 233,356 Income tax expense (benefit) 88,417 2,000 (9,771 ) 80,646 Net income (loss) $ 103,909 $ 8,431 $ (9,987 ) $ 102,353 Total assets $ 10,854,206 $ 90,639 $ 4,081 $ 10,948,926 |
Equity-based Compensation
Equity-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Equity-based Compensation | Note 23—Equity-based Compensation The Company administers a long-term incentive compensation plan that permits the granting of incentive awards in the form of stock options, restricted stock, restricted stock units, performance units, stock appreciation rights, or other stock-based awards. The terms of all awards issued under these plans are determined by the Compensation Committee of the Board of Directors. The Amended and Restated 2015 Omnibus Incentive Plan (the “Plan”) permits the Company to grant to employees and directors various forms of incentive compensation. The principal purposes of this plan are to focus directors, officers, and other employees and consultants on business performance that creates shareholder value, to encourage innovative approaches to the business of the Company, and to encourage ownership of the Company’s stock. The Plan authorizes 7.5 million common share equivalents available for grant, where grants of full value awards (e.g., shares of restricted stock, restricted stock units and performance stock units) count as one share equivalent. The number of remaining share equivalents available for future issuance under the Plan was 4.1 million at December 31, 2019. Restricted Stock Units During 2019, the Company granted shares of stock-based awards in the form of restricted stock units pursuant to and subject to the provisions of the Plan. For the Year Ended December 31, 2019 2018 2017 Number of Shares Weighted Average Fair Value per Unit at Award Date Number of Shares Weighted Average Fair Value per Unit at Award Date Number of Shares Weighted Average Fair Value per Unit at Award Date Non-vested at beginning of period 275,744 $ 26.49 672,750 $ 5.14 672,750 $ 5.14 Granted during the period 1,173,860 18.52 276,451 26.49 — — Vested during the period (153,756 ) 20.30 — — — — Forfeited during the period (65,985 ) 20.50 (707 ) 26.50 — — Expired during the period — — (672,750 ) 5.14 — — Non-vested at end of period 1,229,863 $ 19.97 275,744 $ 26.49 672,750 $ 5.14 The restricted stock units granted include both time and performance-based components. Of the time-based restricted stock units granted and remaining at December 31, 2019: • 85,804 • 2,116 • 311,961 • 53,219 • 72,840 • 249,651 • 2,000 • 6,998 • 9,901 While the grants specify a stated target number of units, the determination of the actual settlement in shares will be based in part on the achievement of certain financial performance measures of the Company. For the performance-based restricted stock units granted, these performance conditions will determine the actual units vesting and can be in the range of 25% to 200% of the units granted. These grants include rights as a shareholder in the form of dividend equivalents. Dividend equivalents for time vested restricted stock units will be paid on each dividend payment date for the Company; dividend equivalents for the performance vesting restricted stock will be accrued and paid on the vested number of shares once the performance is achieved and the shares are issued. The fair value of the restricted stock units was estimated based upon the fair value of the underlying shares on the date of the grant. The Company recorded $6.4 million of equity-based compensation expense for the outstanding restricted stock units for the year ended December 31, 2019, compared to $3.7 million and $1.7 million for 2018 and 2017, respectively. The remaining expense related to unvested restricted stock units is $18.2 million as of December 31, 2019 and will be recognized over service periods ranging from 15 months to 45 months. Stock Options During the year ended December 31, 2019, the Company granted 1,602,848 stock options to certain executive officers. The options were granted at an exercise price equal to a 15% premium to the fair value of the common stock at the date of grant with a weighted-average exercise price of $20.43. The options vest over a three-year The Company uses the Black-Scholes option pricing model to estimate the fair value of the stock options. The following weighted-average assumptions were used for stock option awards issued during the year ended December 31, 2019: Expected dividends 3.1 % Expected volatility 25.2 % Risk-free interest rate 2.5 % Expected term (in years) 4.5 Weighted-average grant date fair value $ 2.32 Employee Stock Purchase Plan On June 1, 2018, the Company commenced the 2018 Employee Stock Purchase Plan (“ESPP”) whereby employees may purchase the Company’s Class A common stock at a discount of 15% of the fair market value of a share of Class A common stock, defined as the closing price of Class A common stock on the NYSE for the first and last days of the purchase period (as defined in the ESPP). The total amount of the Company’s Class A common stock on which options may be granted under the ESPP shall not exceed 500,000 shares. Shares of Class A common stock subject to any unexercised portion of a terminated, canceled or expired option granted under the ESPP may again be used for options under the ESPP. No participating employee shall have any rights as a shareholder until the issuance of a stock certificate to the employee. There have been 109,020 shares and 40,598 shares of Class A common stock purchased in the open market by the ESPP in 2019 and 2018, respectively, which resulted in compensation expense of $301 thousand and $205 thousand for the years ended December 31, 2019 and 2018, respectively. |
Condensed Financial Information
Condensed Financial Information of Cadence Bancorporation (Parent Only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure Abstract | |
Condensed Financial Information of Cadence Bancorporation (Parent Only) | Note 24—Condensed Financial Information of Cadence Bancorporation (Parent Only) Condensed Balance Sheets December 31, 2019 and 2018 (In thousands) 2019 2018 ASSETS Cash and due from banks $ 1 $ 985 Interest-bearing deposits with banks 51,536 114,871 Investment in bank subsidiary 2,628,739 1,593,469 Investment in nonbank subsidiary 15,042 16,787 Other assets 17,841 15,126 Total Assets $ 2,713,159 $ 1,741,238 LIABILITIES AND SHAREHOLDER’S EQUITY Liabilities: Interest payable $ 816 $ 818 Senior debt 49,938 184,801 Subordinated debt 157,916 74,158 Junior subordinated debentures 37,445 36,953 Other liabilities 6,198 6,234 Total liabilities 252,313 302,964 Shareholder’s Equity: Common stock 1,330 836 Additional paid-in capital 1,873,063 1,041,000 Treasury stock (100,752 ) (22,010 ) Retained earnings 572,503 461,360 Accumulated other comprehensive income (loss) 114,702 (42,912 ) Total Shareholders' Equity 2,460,846 1,438,274 Total Liabilities and Shareholders' Equity $ 2,713,159 $ 1,741,238 Condensed Statements of Income For the Years Ended December 31, 2019, 2018, and 2017 (In thousands) 2019 2018 2017 INCOME Dividends from bank subsidiary $ 130,909 $ 59,494 $ 11,000 Interest income 23 73 65 Other income 1,248 516 632 Total income 132,180 60,083 11,697 EXPENSES Interest expense 16,538 17,626 17,424 Other expenses 12,615 7,048 3,305 Total expenses 29,153 24,674 20,729 Income (loss) before income taxes and equity in undistributed income of subsidiaries 103,027 35,409 (9,032 ) Equity in undistributed income of subsidiaries 92,288 125,727 103,390 Net income before income taxes 195,315 161,136 94,358 Income tax benefit (6,643 ) (5,125 ) (7,995 ) Net income $ 201,958 $ 166,261 $ 102,353 Condensed Statements of Cash Flows For the Years Ended December 31, 2019, 2018, and 2017 (In thousands) 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 201,958 $ 166,261 $ 102,353 Adjustments to reconcile net income to net cash provided in operations: Deferred income tax expense 1,572 358 1,084 Equity in undistributed income of subsidiaries (92,288 ) (125,727 ) (103,390 ) Decrease (increase) in other assets 5,836 (10,143 ) 3,892 Loss on sale of securities 15 — — (Decrease) increase in other liabilities (13,860 ) 2,156 894 Other, net 99 — — Net cash provided by operating activities 103,332 32,905 4,833 CASH FLOWS FROM INVESTING ACTIVITIES Capital contributions to bank subsidiary — — (50,000 ) Cash received in business combination 47,233 — — Decrease (increase) in limited partnership investments 603 (125 ) (63 ) Proceeds from sale of securities 5,707 — — Net cash provided by (used in) investing activities 53,543 (125 ) (50,063 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of senior debt (134,922 ) — (9,600 ) Issuance of subordinated debentures 83,474 — - Proceeds from issuance of common stock 68 — 155,581 Cash dividends paid on common stock (90,095 ) (45,995 ) — Repurchase of common stock (79,123 ) (22,010 ) — Other, net (596 ) — — Net cash (used in) provided by financing activities (221,194 ) (68,005 ) 145,981 Net (decrease) increase in cash and cash equivalents (64,319 ) (35,225 ) 100,751 Cash and cash equivalents at beginning of year 115,856 151,081 50,330 Cash and cash equivalents at end of year $ 51,537 $ 115,856 $ 151,081 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 25—Accumulated Other Comprehensive Income (Loss) Activity within the balances in accumulated other comprehensive income (loss) is shown in the following tables for each of the years in the period ended December 31, 2019. (In thousands) Unrealized gains (losses) on securities available-for-sale Unrealized gains (losses) on derivative instruments designated as cash flow hedges Unrealized gains (losses) on defined benefit pension plans Accumulated other comprehensive gain (loss) Balance at December 31, 2016 $ (21,819 ) $ (10,212 ) $ (500 ) $ (32,531 ) Period change 21,605 (2,982 ) 121 18,744 Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) (1,946 ) (3,148 ) (152 ) (5,246 ) Balance at December 31, 2017 (2,160 ) (16,342 ) (531 ) (19,033 ) Net change (22,119 ) (1,963 ) 203 (23,879 ) Balance at December 31, 2018 (24,279 ) (18,305 ) (328 ) (42,912 ) Net change 43,884 113,402 328 157,614 Balance at December 31, 2019 $ 19,605 $ 95,097 $ — $ 114,702 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note 26—Quarterly Results of Operations (Unaudited) The following is a summary of the quarterly results of operations for the years ended December 31, 2019 and 2018: Three Months Ended, (In thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Interest income $ 207,618 $ 213,149 $ 217,124 $ 222,185 Interest expense 46,709 52,962 56,337 52,896 Net interest income 160,909 160,187 160,787 169,289 Provision for credit losses 27,126 43,764 28,927 11,210 Noninterest income (1) 33,898 34,642 31,722 30,664 Noninterest expense 100,518 94,283 100,529 113,440 Income before income taxes 67,163 56,782 63,053 75,303 Provision for income taxes 15,738 12,796 14,707 17,102 Net income $ 51,425 $ 43,986 $ 48,346 $ 58,201 Earnings per common share (Basic) $ 0.40 $ 0.34 $ 0.37 $ 0.44 Earnings per common share (Diluted) 0.40 0.34 0.37 0.44 Three Months Ended, (In thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Interest income $ 143,857 $ 131,753 $ 123,963 $ 113,093 Interest expense 40,711 33,653 28,579 21,982 Net interest income 103,146 98,100 95,384 91,111 Provision for credit losses 8,422 (1,365 ) 1,263 4,380 Noninterest income (2) 21,007 23,976 24,672 24,983 Noninterest expense 72,696 61,231 62,435 61,939 Income before income taxes 43,035 62,210 56,358 49,775 Provision for income taxes 10,709 15,074 8,384 10,950 Net income $ 32,326 $ 47,136 $ 47,974 $ 38,825 Earnings per common share (Basic) $ 0.39 $ 0.56 $ 0.57 $ 0.46 Earnings per common share (Diluted) 0.39 0.56 0.57 0.46 (1 ) (2) Includes net securities gains (losses) of $(54) thousand, $2 thousand, $(1.8) million and $12 thousand during the fourth, third, second and first quarters of 2018, respectively. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 27—Subsequent Events On February 18, 2020, the Company announced that its Board of Directors authorized an increase to its share repurchase program of its Class A common stock by an additional $100 million. The Company previously announced a $50 million share repurchase authorization on July 26, 2019. In January and February of 2020, the Company repurchased approximately 1.8 million shares of common stock at a cost of $29.9 million. The Company expects to fund the program with cash on hand and cash generated from operations. The repurchase authorization may be modified, suspended or discontinued at any time at our discretion and does not obligate us to acquire any particular amount of Class A common stock. The actual timing, number and value of the shares to be purchased under the program will be determined by management at its discretion. The Company’s Class A common stock repurchase program will be subject to various factors, including our capital position, liquidity, financial performance and alternate uses of capital, stock trading price, general market and other conditions, and applicable legal requirements. The Class A common stock repurchases may be accomplished through open market purchases or privately negotiated transactions. On January 31, 2020, the lead plaintiffs filed an amended complaint in the consolidated case captioned Frank Miller et al. v. Cadence Bancorporation et al. |
Summary of Accounting Policies
Summary of Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The Company and its subsidiaries follow accounting principles generally accepted in the United States of America, including, where applicable, general practices within the banking industry. The consolidated financial statements include the accounts of the Company and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation. The assessment of whether or not the Company has a controlling interest (i.e., the primary beneficiary) in a variable-interest entity (“VIE”) is performed on an on-going basis. All equity investments in non-consolidated VIEs are included in “other assets” in the Company’s consolidated balance sheets (Note 21). Certain amounts reported in prior years have been reclassified to conform to the 2019 presentation. These reclassifications did not materially impact the Company’s consolidated balance sheets or consolidated statements of income. In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 855, Subsequent Events |
Nature of Operations | Nature of Operations The Company’s primary subsidiary is the Bank. The Bank operates under a national bank charter and is subject to regulation by the Office of the Comptroller of the Currency (“OCC”). The Bank provides full banking services in six southern states: Alabama, Florida, Georgia, Mississippi, Tennessee, and Texas. The Bank’s subsidiaries include: • Linscomb & Williams, Inc. — financial advisory firm; • Cadence Investment Services, Inc. — provides investment and insurance products; and • Altera Payroll and Insurance, Inc. — provides payroll processing services and the sale of certain insurance products. The Company and the Bank also have certain other non-operating and immaterial subsidiaries. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with 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 reporting period. Actual results could differ from those estimates. Material estimates that are susceptible to significant change in the near term are the allowance for credit losses, valuation of and accounting for acquired credit impaired loans, valuation of goodwill, intangible assets and deferred income taxes. |
Business Combinations | Business Combinations Assets and liabilities acquired in business combinations are accounted for under the acquisition method of accounting and, accordingly, are recorded at their estimated fair values on the acquisition date. The Company generally records provisional amounts at the time of acquisition based on the information available. These provisional estimates of fair values may be adjusted for a period of up to one year from the acquisition date if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. Adjustments recorded during this period are recognized in the current reporting period. The excess cost over fair value of net assets acquired is recorded as goodwill. On January 1, 2019, we completed our merger with State Bank Financial Corporation and on July 1, 2019, we completed our acquisition of Wealth and Pension Services Group, Inc. (see Note 2). |
Sale of Subsidiary | Sale of Subsidiary On May 31, 2018, the Company completed the sale of the assets of its subsidiary Cadence Capital, Inc. (formerly known as Town & Country Insurance Agency, Inc.) to an unrelated third party, selling $11.1 million in net assets, including $10.9 million in goodwill and intangibles. This transaction resulted in a pre-tax gain of $4.9 million recorded in noninterest income, offset by $1.1 million in sale related expenses recorded in noninterest expenses during the second quarter of 2018. |
Securities | Securities Securities are accounted for as follows: Securities Available-for-Sale Securities classified as available-for-sale are those debt securities that are intended to be held for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available-for-sale would be based on various factors, including movements in interest rates, liquidity needs, security risk assessments, changes in the mix of assets and liabilities and other similar factors. These securities are carried at their estimated fair value, and the net unrealized gain or loss is reported as accumulated other comprehensive income, net of tax, until realized. Premiums and discounts are recognized in interest income using the effective interest method. Realized gains and losses on the sale of securities available-for-sale are determined by specific identification using the adjusted cost on a trade date basis and are included in securities gains (losses), net. Securities Held-to-Maturity Securities classified as held-to-maturity are those debt securities for which there is a positive intent and ability to hold to maturity. These securities are carried at cost, adjusted for amortization of premium and accretion of discount, computed by the effective interest method. The Company had no securities held-to-maturity at December 31, 2019 or 2018. Trading Account Securities Trading account securities are securities that are held for the purpose of selling them at a profit. The Company had no trading account securities as of December 31, 2019 or 2018. FHLB and FRB Stock The Company has ownership in Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”) stock which do not have readily determinable fair values and no quoted market values, as ownership is restricted to member institutions, and all transactions take place at par value with the FHLB or FRB as the only purchaser. Therefore, the Company accounts for these investments as long-term assets and carries them at cost. Management’s determination as to whether these investments are impaired is based on management’s assessment of the ultimate recoverability of the par value (cost) rather than recognizing temporary declines in fair value. In order to become a member of the Federal Reserve System, regulations require that the Company hold a certain amount of FRB capital stock. Additionally, investment in FHLB stock is required for membership in the FHLB system and in relation to the level of FHLB advances. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities Derivative instruments are accounted for under the requirements of ASC Topic 815, Derivatives and Hedging The fair value of derivative positions outstanding is included in other assets and other liabilities in the accompanying consolidated balance sheets and in the net change in each of these financial statement line items in the accompanying consolidated statements of cash flows. The Company does not speculate using derivative instruments. Interest Rate Lock Commitments In the ordinary course of business, the Company enters into certain commitments with customers in connection with residential mortgage loan applications for loans the Company intends to sell . Such commitments are considered derivatives under current accounting guidance and are required to be recorded at fair value. The change in fair value of these instruments is reflected currently in the mortgage banking revenue of the consolidated statements of income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Forward Sales Commitments The Company enters into forward sales commitments of mortgage-backed securities (“MBS”) with investors to mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to customers. During the period from commitment date to closing date, the Company is subject to the risk that market rates of interest may change. In an effort to mitigate such risk, forward delivery sales commitments, under which the Company agrees to deliver certain MBS, are established. These commitments are non-hedging derivatives in accordance with current accounting guidance and recorded at fair value, with changes in fair value reflected currently in the mortgage banking revenue of the consolidated statements of income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Interest Rate Swap, Floor, Cap, and Collar Agreements Not Designated as Hedging Derivatives The Company enters into interest rate swap, floor, cap and collar agreements on commercial loans with customers to meet the financing needs and interest rate risk management needs of its customers. At the same time, the Company enters into offsetting interest rate swap agreements with a financial institution in order to minimize the Company’s interest rate risk. These interest rate agreements are non-hedging derivatives and are recorded at fair value with changes in fair value reflected in noninterest income. The fair value of these derivatives is recorded on the consolidated balance sheets in other assets and other liabilities. Interest Rate Swap, Floor, Cap, and Collar Agreements Designated as Cash Flow Hedges Cash flow hedge relationships mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company uses interest rate swaps, caps, collars, and floors to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. The entire change in the fair value related to the derivative instrument is recognized as a component of other comprehensive income and subsequently reclassified into interest income when the forecasted transaction affects income. The Company assesses the effectiveness of hedging derivatives during the initial period with a quantitative test such as statistical regression on a prospective and retrospective basis. For subsequent periods, the effectiveness of hedging derivatives is assessed qualitatively by assuring the notional amounts of the respective derivative instruments are equal to or less than the current balance of the hedged items. Foreign Currency Contracts The Company enters into certain foreign currency exchange contracts on behalf of its clients to facilitate their risk management strategies, while at the same time entering into offsetting foreign currency exchange contracts in order to minimize the Company’s foreign currency exchange risk. The contracts are short term in nature, and any gain or loss incurred at settlement is recorded as other noninterest income or other noninterest expense. The fair value of these contracts is reported in other assets and other liabilities. The Company does not apply hedge accounting to these contracts. Counterparty Credit Risk Derivative contracts involve the risk of dealing with both bank customers and institutional derivative counterparties and their ability to meet contractual terms. Under Company policy, institutional counterparties must be approved by the Company’s Asset/Liability Management Committee. The Company’s credit exposure on derivatives is limited to the net fair value for each counterparty. Refer to Note 7 for further discussion and details of derivative financial instruments and hedging activities. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financials assets are accounted for as sales when control over the transferred assets is surrendered. Control is generally considered to have been surrendered when 1) the transferred assets are legally isolated from the Company or its consolidated affiliates, even in bankruptcy or other receivership, 2) the transferee has the right to pledge or exchange the assets with no conditions that constrain the transferee and provide more than a trivial benefit to the Company, and 3) the Company does not maintain the obligation or unilateral ability to reclaim or repurchase the assets. If these sale criteria are met, the transferred assets are removed from the Company’s balance sheet and a gain or loss on sale is recognized. If not met, the transfer is recorded as a secured borrowing, and the assets remain on the Company’s balance sheet, the proceeds from the transaction are recognized as a liability, and gain or loss on sale is deferred until the sale criterion are achieved. All transfers of financial assets in the reported periods have qualified and been recorded as sales. |
Loans Held for Sale | Loans Held-for-Sale Mortgage Loans Held-for-Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The Company also transfers certain mortgage loans to held-for-sale when management has the intent to sell the loan or a portion of the loan in the near term. These held-for-sale loans are recorded at the lower of cost or estimated fair value. At the time of transfer, write-downs on the loans are recorded as charge-offs and a new cost basis is established. Generally, loans in this category are sold within thirty days. These loans are primarily sold with the mortgage servicing rights released. Fees on mortgage loans sold individually in the secondary market, including origination fees, service release premiums, processing and administrative fees, and application fees, are recognized as mortgage banking revenue in the period in which the loans are sold. These loans are underwritten to the standards of upstream correspondents and are held on the Company’s consolidated balance sheets until the loans are sold. Buyers generally have recourse to return a purchased loan to the Company under limited circumstances. Recourse conditions may include early payment default, breach of representations or warranties, and documentation deficiencies. During 2019, 2018, and 2017, an insignificant number of loans were returned to the Company. Commercial Loans Held-for-Sale The Company originates certain commercial loans for which a portion is intended for sale. The Company also transfers certain commercial loans to held-for-sale when management has the intent to sell the loan or a portion of the loan in the near term. These held-for-sale loans are recorded at the lower of cost or estimated fair value. At the time of transfer, write-downs on the loans are recorded as charge-offs and a new cost basis is established. Any subsequent lower of cost or market adjustment is determined on an individual loan basis and is recognized as a valuation allowance with any charges included in other noninterest expense. Gains and losses on the sale of these loans are included in other noninterest income when realized. |
Loans (Excluding Acquired Credit Impaired Loans) | Loans (Excluding Acquired Credit Impaired Loans) Loans include loans that are originated by the Company and acquired loans that are not considered impaired at acquisition. Loans originated by the Company are carried at the principal amount outstanding adjusted for the allowance for credit losses, net of deferred origination fees, and unamortized discounts and premiums. Interest income is recognized based on the principal balance outstanding and the stated rate of the loan. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield on the related loan. Loans acquired through acquisition are initially recorded at fair value. Discounts and premiums created when the loans were recorded at their estimated fair values at acquisition are accreted over the remaining term of the loan as an adjustment to the related loan’s yield. Commercial loans, including small business loans, are generally placed on nonaccrual status when principal or interest is past due ninety days or more unless the loan is well secured and in the process of collection, or when the loan is specifically determined to be impaired. Consumer loans, including residential first and second lien loans secured by real estate, are generally placed on nonaccrual status when they are 120 or more days past due. The accrual of interest, as well as the amortization/accretion of any remaining unamortized net deferred fees or costs and discount or premium, is generally discontinued at the time the loan is placed on nonaccrual status. All accrued but uncollected interest for loans that are placed on nonaccrual status is reversed through interest income. Cash receipts received on nonaccrual loans are generally applied against principal until the loan has been collected in full, after which time any additional cash receipts are recognized as interest income (i.e., cost recovery method). However, interest may be accounted for under the cash-basis method as long as the remaining recorded investment in the loan is deemed fully collectible. L oans are evaluated for potential charge-off in accordance with the parameters discussed below or when the loan is placed on non-accrual status, whichever is earlier. Loans within the commercial portfolio are generally evaluated for charge-off at 90 days past due, unless both well-secured and in the process of collection. Closed and open-end residential mortgage and consumer loans are evaluated for charge-off no later than 120 days past due. Any outstanding loan balance in excess of the fair value of the collateral less costs to sell is charged-off no later than 180 days past due for loans secured by real estate. For non-real estate secured loans, in lieu of charging off the entire loan balance, loans may be written down to the fair value of the collateral less costs to sell if repossession of collateral is assured and in process. A loan is considered to be impaired when it appears probable that the entire amount contractually due will not be collected in accordance with the terms of the loan agreement. Factors considered in determining impairment include payment status, collateral values, and the probability of collecting scheduled payments of principal and interest when due. The measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price or based on the fair value of the collateral less disposal costs if the loan is collateral dependent. Included in impaired loans are loans considered troubled debt restructurings (“TDRs”). The Company attempts to work with borrowers when necessary to extend or modify loan terms to better align with the borrower’s ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. A modification is classified as a TDR if the borrower is experiencing financial difficulty and it is determined that the Company has granted a concession to the borrower. The Company may determine that a borrower is experiencing financial difficulty if the borrower is currently in default on any of its debt, or if it is probable that a borrower may default in the foreseeable future without the modification. Concessions could include reductions of interest rates at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, principal forgiveness, forbearance, or other concessions. The assessments of whether a borrower is experiencing or will likely experience financial difficulty and whether a concession has been granted can be subjective in nature, and management’s judgment is required when determining whether a modification is classified as a TDR. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses (“ACL”) is established through charges to income in the form of a provision for credit losses. The ACL is maintained at a level that management believes is adequate to absorb all probable losses inherent in the loan portfolio which are incurred as of the reporting date. Events that are not within the Company’s control, such as changes in economic factors, could change subsequent to the reporting date and could cause the ACL to be overstated or understated. The amount of the ACL is affected by loan charge-offs, which decrease the ACL; recoveries on loans previously charged off, which increase the ACL; and the provision for credit losses charged to income, which increases the ACL. In determining the provision for credit losses, management monitors fluctuations in the ACL resulting from actual charge-offs and recoveries and reviews the size and composition of the loan portfolio in light of current and anticipated economic conditions. The ACL is comprised of the following four components: • Specific reserves are recorded on loans reviewed individually for impairment. Generally, all loans that are individually identified as impaired are reviewed on a quarterly basis in order to determine whether a specific reserve is required. A loan is considered impaired when, based on current information, it is probable that we will not receive all amounts due in accordance with the contractual terms of the loan agreement. Once a loan has been identified as impaired, management measures impairment in accordance with ASC Topic 310, Receivables . The measurement of impaired loans is based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price or based on the fair value of the collateral if the loan is collateral dependent. When management’s measured value of the impaired loan is less than the recorded investment in the loan, the amount of the impairment is recorded as a specific reserve. These specific reserves are determined on an individual loan basis based on management’s current evaluation of the loss exposure for each credit, given the payment status, the financial condition of the borrower and any guarantors and the value of any underlying collateral. Loans that are individually identified as impaired are excluded from the general reserve calculation described below. Changes in specific reserves from period to period are the result of changes in the circumstances of individual loans such as charge-offs, payments received, changes in collateral values or other factors. • For loans not considered to be impaired, a general reserve is maintained for each loan segment in the loan portfolio. Due to the growth of the credit portfolio into new geographic areas and into new commercial segmentations and the lack of seasoning of the portfolio, the Company recognizes there is limited historical loss information to adequately estimate loss rates based primarily on historical loss data. Therefore, external loss data is utilized from a nationally recognized risk rating agency to assist in determining the loss rates within the ACL model until sufficient loss history can be accumulated from the Company’s loss experience in these segments. These loss rates are calibrated to the Cadence customer risk profile and portfolio mix. The Company monitors actual loss experience for each loan segment for potential adjustments required to the loss rates utilized. • In assessing the overall risk of the credit portfolio, the ACL Committee also considers the following qualitative factors that may affect credit losses within the current credit portfolio. Management discretion dictates how these factors should affect certain segments (or the entire portfolio) according to a number of basis points to be added to (or subtracted from) loan loss rates. By their nature, qualitative adjustments attempt to quantify and standardize factors that serve as “leading indicators” of credit deterioration or improvement. These primary adjustment factors include, but are not limited to the following: • Lending policies, procedures, practices or philosophy, including underwriting standards and collection, charge-off and recovery practices • Changes in national and service market economic and business conditions that could affect the level of default rates or the level of losses once a default has occurred within the Bank’s existing loan portfolio • Changes in the nature or size of the portfolio • Changes in portfolio collateral values • Changes in the experience, ability, and depth of lending management and other relevant staff • Volume and/or severity of past due and classified credits or trends in the volume of losses, non-accrual credits, impaired credits and other credit modifications • Quality of the institution’s credit review system and processes and the degree of oversight by bank management and the board of directors • Concentrations of credit such as industry and lines of business • Competition and legal and regulatory requirements or other external factors • In connection with acquisitions (see Accounting for Acquired Loans ), the Company acquired certain loans considered impaired and accounts for these loans under the provisions of ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality , which require the initial recognition of these loans at the present value of amounts expected to be received. The ACL previously associated with these loans does not carry over to the books of the acquiring entity. Any decreases in expected cash flows subsequent to acquisition are recorded in the ACL. For any increases in cash flows expected to be collected, the Company adjusts the amount of accretable yield recognized on a prospective basis over the loan’s or pool’s remaining life. Management presents the quarterly review of the ACL to the Board of Directors. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available or as events change. The reserve for unfunded commitments is determined by assessing three distinct components: unfunded commitment volatility in the portfolio (excluding commitments related to letters of credit and commitment letters), adverse letters of credit, and adverse lines of credit. Unfunded commitment volatility is calculated on a trailing eight quarter basis; the resulting expected funding amount is then reserved for based on the current combined reserve rate of the pass-rated originated and ANCI loans. Adverse lines and letters of credit are assessed individually based on funding and loss expectations as of the period end. The reserve for unfunded commitments is recorded in other liabilities and other noninterest expense separate from the allowance and provision for credit losses. As of December 31, 2019 and 2018, the reserve for unfunded commitments totaled $1.7 million and $0.6 million, respectively. |
Accounting for Acquired Loans and FDIC Loss Share Receivable | Accounting for Acquired Loans Acquired Loans The Company accounts for its acquisitions under ASC 805 which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. No ACL related to the acquired loans is recorded on the acquisition date as the fair value of the loans acquired incorporates assumptions regarding credit risk. Loans acquired are recorded at fair value in accordance with the fair value methodology prescribed in ASC 820. The Company estimated the fair value of loans by utilizing the discounted cash flow method applied to pools of loans aggregated by product categories and interest rate type. In addition, certain cash flows were estimated on an individual loan basis based on current performance and collateral value, if the loan is collateral dependent. Contractual principal and interest cash flows were projected based on the payment type (i.e., amortizing or interest only), interest rate type (i.e., fixed or adjustable), interest rate index, weighted average maturity, weighted average interest rate, weighted average spread, and weighted average interest rate floor of each loan pool. The expected cash flows for each category were determined by estimating future credit losses using probabilities of default (PD), loss given default (LGD) and the rate of prepayments. Projected monthly cash flows were then discounted to present value based on discount rates developed from various sources including newly originated loans, a buildup approach and market data. The Company accounts for and evaluates acquired credit impaired (“ACI”) loans in accordance with the provisions of ASC 310-30. When ACI loans exhibit evidence of credit deterioration since origination and it is probable at the date of acquisition that the Company will not collect all principal and interest payments in accordance with the terms of the loan agreement, the expected shortfall in future cash flows, as compared to the contractual amount due, is recognized as a non-accretable discount. Any excess of expected cash flows over the acquisition date fair value is known as the accretable discount and is recognized as accretion income over the life of each pool or individual loan. ACI loans that meet the criteria for non-accrual of interest at the time of acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if the timing and expected cash flows on such loans can be reasonably estimated and if collection of the new carrying value of such loans is expected. However, if the timing or amount of the expected cash flows cannot be reasonably estimated an ACI loan may be placed in non-accruing status. Expected cash flows over the acquisition date fair value are periodically re-estimated utilizing the same cash flow methodology used at the time of acquisition and subsequent decreases to the expected cash flows will generally result in a provision for loan losses charge to the Company’s consolidated statements of income. Conversely, subsequent increases in expected cash flows result in a transfer from the non-accretable discount to the accretable discount, which would have a positive impact on accretion income prospectively. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation and amortization are determined using the straight-line method at rates calculated to depreciate or amortize the cost of assets over their estimated useful lives. Maintenance and repairs of property and equipment are charged to expense, and major improvements that extend the useful life of the asset are capitalized. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts, and any gains or losses are included in income. |
Leases | Leases The Bank leases various premises and equipment. At the inception of the contract the Bank determines if an arrangement is or contains a lease and will recognize on the balance sheet a lease asset for its right to use the underlying asset (“ROU”) and a lease liability for the corresponding lease obligation for contracts longer than a year. Both the asset and liability are initially measured at the present value of the future minimum lease payments over the lease term. In determining the present value of lease payments, the Bank uses our incremental borrowing rate as the discount rate for the leases. The Bank has defined a separate accounting policy for real estate and non-real estate leases to account for non-lease components from a lessee perspective. For non-real estate leases, the Bank elected the practical expedient to not separate non-lease components from lease components and instead to account for both as a single lease component as it relates to this class type. The election was made to separate the non-lease components from the lease components in real estate leases due to the volume of real estate leases that are structured as triple net leases, where many of these expenses are already excluded from the lease. The Bank’s lease agreements do not contain any residual value guarantees. The Bank elected to apply the short-term lease exception to existing leases that meet the definition of a short-term lease, considering the lease term from the commencement date, not the remaining term at the date of adoption. The Bank includes all renewal options in the lease term, unless we have determined we will not renew a particular lease, in determination of the capitalization period and lease liability and ROU asset. See Recently Adopted Accounting Pronouncements |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”) consists of properties acquired through foreclosure and unutilized bank-owned properties. OREO totaled $1.6 million and $2.4 million as of December 31, 2019 and 2018, respectively. These properties, as held-for-sale properties, are recorded at fair value, less estimated costs to sell, on the date of foreclosure establishing a new cost basis for the property. Subsequent to the foreclosure date the OREO is maintained at the lower of cost or fair value. Any write-down to fair value required at the time of foreclosure is charged to the ACL. Subsequent gains or losses resulting from the sale of the property or additional valuation allowances required due to further declines in fair value are reported in other noninterest expense. |
Cash Surrender Value of Life Insurance | Cash Surrender Value of Life Insurance The Company invests in bank-owned life insurance (“BOLI”), which involves the purchasing of life insurance on selected employees. The Company is the owner of the policies and, accordingly, the cash surrender value of the policies is included in total assets and increases in cash surrender values are reported as income in the consolidated statements of income. The cash value accumulation on BOLI is permanently tax deferred if the policy is held to the insured person’s death and certain other conditions are met. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is accounted for in accordance with ASC 350, and accordingly is not amortized but is evaluated for impairment at least annually in the fourth quarter or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the results of the qualitative assessment indicate that more likely than not a reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the respective reporting unit (through the application of various quantitative valuation methodologies) relative to its carrying amount to determine whether quantitative indicators of potential impairment are present (i.e., Step 1). The Company may also elect to bypass the qualitative assessment and begin with Step 1. If the results of Step 1 indicate that the fair value of the reporting unit may be below its carrying amount, the Company determines the fair value of the reporting unit’s assets and liabilities, considering deferred taxes, and then measures impairment loss by comparing the implied fair value of goodwill with the carrying amount of that goodwill (i.e., Step 2). A reporting unit is defined as an operating segment or a component of that operating segment, as defined in ASC 280. Reporting units may vary, depending on the level at which performance of the segment is reviewed. No impairment was identified in any reporting unit in 2019, 2018 or 2017. Other identifiable intangible assets consist primarily of the core deposit premiums and customer relationships arising from acquisitions. These intangibles were established using the discounted cash flow approach and are being amortized using an accelerated method over the estimated remaining life of each intangible recorded at acquisition. These finite-lived intangible assets are reviewed for impairment when events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable from undiscounted future cash flows or that it may exceed its fair value. |
Variable Interest Entities and Other Investments | Variable Interest Entities and Other Investments Under ASC 810-10-65, the Company is deemed to be the primary beneficiary and required to consolidate a variable interest entity (“VIE”) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb the losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810-10-65, as amended, requires continual reconsideration of conclusions reached regarding which interest holder is a VIE’s primary beneficiary. The Company invests in certain affordable housing projects as a limited partner Equity securities with readily determinable fair values not held for trading consist of marketable equity securities which are carried at fair value with changes in fair value reported in net income. For other investments in limited partnerships without readily determinable fair values, the Company has elected to account for these investments using the practical expedient of the fair value of underlying net asset value. For investments in other limited partnerships without readily determinable fair values that do not qualify for the practical expedient, these investments are accounted for at their cost minus impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Any changes in fair value are reported in net income. See Note 21 for more information about our equity investments. |
Income Taxes | Income Taxes The Company and its significant subsidiaries are subject to income taxes in federal, state and local jurisdictions, and such corporations account for income taxes under the asset and liability method in accordance with ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The recognition of a deferred tax asset is dependent upon a “more likely than not” expectation of realization of the deferred tax asset, based upon the analysis of available evidence. The deferred tax asset recoverability is calculated using a consistent approach, which considers the relative impact of negative and positive evidence, including review of historical financial performance, and all sources of future taxable income, such as projections of future taxable income exclusive of future reversals of temporary differences and carryforwards, tax planning strategies, and any carryback availability. A valuation allowance is required to sufficiently reduce the deferred tax asset to the amount that is expected to be realized on a “more likely than not” basis. Changes in the valuation allowance are generally recorded through income. |
Treasury Stock and Share Repurchases | Treasury Stock and Share Repurchases The Company purchases shares of its Class A common stock pursuant to share repurchase programs authorized by its Board of Directors. The purchase of the Company’s common stock is recorded at cost. At the date of repurchase, shareholders’ equity is reduced by the repurchase price. Upon retirement, or upon purchase for constructive retirement, treasury stock would be reduced by the cost of such stock with the excess of repurchase price over par or stated value recorded in additional paid-in capital. If the Company subsequently reissues treasury shares, treasury stock is reduced by the cost of such stock with differences recorded in additional paid-in capital or retained earnings, as applicable. |
Revenue Recognition | Revenue Recognition Service Charges on Deposit Accounts Service charges on deposit accounts consist of non-sufficient funds fees, account analysis fees, and other service charges on deposits which consist primarily of monthly account fees. Non-sufficient funds fees are recognized at the time the account overdraft occurs in accordance with regulatory guidelines. Account analysis fees consist of fees charged to certain commercial demand deposit accounts based upon account activity (and reduced by a credit which is based upon cash levels in the account). Assets Under Administration and Asset Management Fees The Company does not include assets held in fiduciary or agency capacities in the consolidated balance sheets, as such items are not assets of the Company. Fees from asset management activities are recorded on an accrual basis, over the period in which the service is provided. Fees are a function of the market value of assets administered and managed, the volume of transactions, and fees for other services rendered, as set forth in the underlying client agreement. This revenue recognition involves the use of estimates and assumptions, including components that are calculated based on estimated asset valuations and transaction volumes. Credit Related Fees Credit related fees primarily include fees assessed on the unused portion of commercial lines of credit (“unused commitment fees”) and syndication agent fees. Unused commitment fees are recognized when earned. Syndication agent fees are earned to act as an agent for a period of time, usually one year. Arranger fees are earned to arrange a syndicate of lenders and are generally recognized when the transaction is closed. Bankcard Fees Bankcard fees include primarily bankcard interchange revenue, which is recorded when services are provided. Payroll Processing Revenue Payroll processing revenue represents a new source of revenue for us which we acquired in the State Bank transaction. Payroll processing revenue consists principally of payroll processing fees, property and casualty brokerage and employee benefits brokerage. Payroll processing fees are charged as the services are provided and the Company satisfied its performance obligation simultaneously. Property and casualty includes the brokerage of both personal and commercial coverages. The placement of the policy is completion of the Company's performance obligation and revenue is recognized at that time. The Company's commission is a percentage of the premium. Employee benefits brokerage consists of assisting companies in designing and managing comprehensive employee benefit programs. The services provided by the Company are collectively benefit management services which are considered a bundle of services that are highly interrelated. Each of the underlying services are activities to fulfill the benefit management service and are not distinct and separate performance obligations. Revenue is recognized over the contract term as services are rendered on a monthly basis. Customer payments are usually received on a monthly basis. SBA Income Small Business Administration (“SBA”) income also represents a new source of revenue for us through the State Bank transaction. This revenue consists of gains on sales of SBA loans, servicing fees, changes in the fair value of servicing rights, and other miscellaneous fees. Servicing fee income is recorded for fees earned for servicing SBA loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Basic earnings per share is calculated using the two-class method to determine income attributable to common shareholders. Unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities under the two- class method. Net income attributable to common shareholders is then divided by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared on the net income of the Company. Diluted earnings per share is calculated by dividing net income available to common shareholders by the total of the weight ed average number of common shares outstanding during the period, plus the dilutive effect of outstanding share -based compensation awards. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, pension liability and cash flow hedges, are reported as a separate component of the shareholders’ equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Employee Benefits | Employee Benefits The Company offers a 401(k) defined contribution benefit plan to its employees. The plan provides for a 100% match of employee contributions up to five percent of employee compensation. All contributions and related earnings are 100% vested. Employees of the legacy Cadence Bank hired prior to January 1, 2001 participate in a noncontributory defined benefit pension plan. The plan calls for benefits to be paid to eligible employees at retirement based primarily upon years of service and compensation. Contributions to the plan reflect benefits attributed to employees’ services to date, as well as services expected to be provided in the future. The annual pension cost charged to expense is actuarially determined in accordance with the provisions of ASC Topic 715, Compensation–Retirement Benefits The Company has a supplemental retirement plan that originated from an acquired bank for certain directors and officers of that acquired bank. The annual cost charged to expense and the estimated present values of the projected payments are actuarially determined in accordance with the provisions of ASC 715. As a result of the prior acquisitions, the Company has various legacy unqualified supplemental retirement plans. The plans allow for fixed payment amounts to begin on a monthly basis at a specified age. The annual cost charged to expense and the estimated present value of the projected payments was determined in accordance with the provisions of ASC 715. The present value of projected payments is recorded as a liability, in accordance with ASC 710-30, in the Company’s consolidated balance sheets. The Company provides a voluntary deferred compensation plan for certain of its executive and senior officers. Under this plan, the participants may defer up to 25% of their base compensation and 100% of certain incentive compensation. The Company may, but is not obligated to, contribute to the plan. Amounts contributed to this plan are credited to a separate account for each participant and are subject to a risk of loss in the event of the Company’s insolvency. The Company made no contributions to this plan in 2019, 2018 or 2017. |
Equity-Based Compensation and Equity Incentive Plan | Equity-Based Compensation and Equity Incentive Plan The Company maintains an equity incentive plan that provides for the granting of various forms of incentive equity-based compensation. The Company values these units at the grant date fair value and recognizes expense over the requisite service period. The Company’s equity-based compensation costs are recorded as a component of salaries and employee benefits in the consolidated statements of income. See Note 23 for additional information. |
Cash Based Long Term Incentive Plan | Cash Based Prior to 2018, the Bank granted long-term incentive awards to certain employees that provide for cash compensation, half of which are based on the quoted market price of the Company’s common stock, as determined on at least a quarterly basis. The awards are generally subject to a 36-month vesting period and the attainment of certain three-year profitability levels. The Company adjusts the accrual related to this plan on at least a quarterly basis, based on the phantom shares awarded, and the fair value of Cadence Bancorp, LLC’s or Company’s stock. Expense under this plan was $2.1 million, $6.0 million and $7.3 million in December 31, 2019, 2018 and 2017, respectively. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan The Company provides an employee stock purchase plan whereby employees may purchase the Company’s Class A common stock at a discount of 15% of the fair market value of a share of common stock, defined as the closing price of the common stock on the stock exchange for the first and last day of the purchase period (as defined). The Company records an expense for the 15% discount which is included in salaries and employee benefits in the consolidated statements of income. See Note 23 for additional information. |
Cash Flows | Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand and amounts due from banks, interest-bearing deposits with banks, and federal funds sold. Generally, federal funds are sold for one to seven day periods. Cash flows from loans, either originated or acquired, are classified at the time according to management’s intent to either sell or hold the loan for the foreseeable future. When management’s intent is to hold the loan for the foreseeable future, the cash flows of that loan are presented as investing cash flows. |
Off-Balance Sheet Financial Instruments | Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company enters into off-balance sheet financial instruments consisting of commitments to extend credit, credit card lines, standby letters of credit and commitments to purchase securities. Such financial instruments are recorded in the consolidated financial statements when they are exercised. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value estimates are made at a specific point in time, based on relevant market information and other information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale, at one time, the entire holdings of a particular financial instrument. Because no market exists for a portion of the financial instruments, fair value estimates are also based on judgments regarding estimated cash flows, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Management employs independent third-party pricing services to provide fair value estimates for the Company’s financial instruments. Management uses various validation procedures to validate the prices received from pricing services and quotations received from dealers are reasonable for each relevant financial instrument, including reference to relevant broker/dealer quotes or other market quotes and a review of valuations and trade activity of comparable securities. Consideration is given to the nature of the quotes (e.g., indicative or firm) and the relationship of recently evidenced market activity to the prices provided by the third-party pricing service. Understanding the third-party pricing service’s valuation methods, assumptions and inputs used by the firm is an important part of the process of determining that reasonable and reliable fair values are being obtained. Management evaluates quantitative and qualitative information provided by the third-party pricing services to assess whether they continue to exhibit the high level of expertise and internal controls that management relies upon. Fair value estimates are based on existing financial instruments on the consolidated balance sheets, without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes, premises and equipment, goodwill and other intangible assets. In addition, the income tax ramifications related to the realization of the unrealized gains and losses on available for sale investment securities can have a significant effect on fair value estimates and have not been considered in any of the estimates. For further information about fair value measurements, see Note 20. |
Recently Adopted and Pending Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , Leases (Topic 842): Targeted Improvements In December 2018, the FASB issued ASU 2018-20, Leases (Topic 842) Narrow-Scope Improvements for Lessors In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements Accounting Changes and Error Corrections The Company adopted ASU 2016-02 and related ASUs on January 1, 2019 using the optional modified retrospective transition approach which resulted in a right-of-use (“ROU”) asset of approximately $80.0 million and lease liability of $92.3 million. The Company elected to adopt the package of practical expedients permitted under ASC 842 which, among other things, does not require reassessment of lease classification. See Note 8 for more information. In March 2017, the FASB issued ASU No. 2017-08, Receivables–Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities In October 2018, the FASB issued ASU No. 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes Pending Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments–Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments • Replaces the current incurred loss accounting model with an expected loss approach and requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. • Eliminates existing guidance for acquired credit impaired (“ACI”) loans and requires recognition of the nonaccretable difference as an increase to the allowance for expected credit losses on financial assets purchased with more than insignificant credit deterioration since origination, which will be offset by an increase in the amortized cost of the related loans. For ACI loans accounted for under ASC 310-30 prior to adoption, the guidance in this amendment for purchase credit deteriorated assets will be prospectively applied. • Requires inclusion of expected recoveries, limited to the cumulative amount of prior write-offs, when estimating the allowance for credit losses for in-scope financial assets (including collateral dependent assets). • Amends existing impairment guidance for available-for-sale securities to incorporate an allowance, which will allow for reversals of credit impairments if the credit of an issuer improves. The Company expects no material allowance impact to available-for-sale securities. • Requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. • Required effective date: January 1, 2020. • Upon adoption, Cadence will record a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption. • The allowance related to loans and commitments will increase as it will relate to credit losses over the full remaining expected life of the portfolio. Cadence intends to estimate losses through various models that include selected forecasted macroeconomic variables produced in a baseline macroeconomic scenario forecast provided by an external party. • Based on current expectations of future economic conditions and the results from our models, Cadence believes its allowance for credit losses on loans will increase up to 65% from its allowance for credit losses as of December 31, 2019, as disclosed herein. The initial impact to regulatory capital is expected to be minimal; Cadence plans to elect the transition provisions provided by the banking agencies and will phase-in the “Day One” regulatory capital effects resulting from adoption of CECL over the three-year period beginning January 1, 2020. The final impact depends on the characteristics of the portfolio as well as the macroeconomic conditions and forecasts upon adoption and other management judgments In January 2017, the FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement In August 2018, the FASB issued ASU No. 2018-14, Compensation–Retirement Benefits–Defined Benefit Plans–General (Subtopic 715-20): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans . This ASU makes minor changes to the disclosure requirements for employers that sponsor defined benefit pension and/or other postretirement benefit plans. ASU 2018-14 is effective for fiscal years ending after December 15, 2020; early adoption is permitted. The Company does not expect the adoption of this guidance to have an impact on the its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles–Goodwill and Other–Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments–Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments The credit losses and hedging amendments have the same effective dates as the respective standards, unless an entity has already adopted the standards. The pending adoption of the credit losses standard, or CECL, is discussed above. Since the Company early adopted the guidance in ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Purchase Price Calculation as of Acquisition Date and Identifiable Assets Acquired and Liabilities Assumed at their Fair Values | The following table provides the purchase price calculation as of the acquisition date and the identifiable assets acquired and the liabilities assumed at their fair values. These fair value measurements are based on internal and third-party valuations. (In thousands, except shares and per share data) As Recorded by Cadence Assets Cash and cash equivalents $ 414,342 Investment securities available-for-sale 667,865 Loans held for sale 148,469 Loans 3,317,897 Premises and equipment 65,646 Cash surrender value of life insurance 69,252 Intangible assets 117,038 Other assets 47,146 Total assets acquired $ 4,847,655 Liabilities Deposits $ 4,096,665 Short term borrowings 23,899 Other liabilities 76,368 Total liabilities assumed 4,196,932 Net identifiable assets acquired over liabilities assumed 650,723 Goodwill 175,657 Net assets acquired over liabilities assumed $ 826,380 Consideration: Cadence Bancorporation common shares issued 49,232,008 Fair value per share of the Company's common stock $ 16.78 Company common stock issued 826,113 Fair value of unexercised warrants 267 Fair value of total consideration transferred $ 826,380 |
Schedule of Changes in Estimated Fair Value of Acquired Asset or Liability in Consolidated Balance Sheet | W e updated our estimated fair values of these items within our Consolidated Balance Sheet with a corresponding adjustment to goodwill. These changes are gross of taxes and reflected in the following table: (In thousands) Acquired Asset or Liability Balance Sheet Line Item Provisional Estimate Revised Estimate Increase (Decrease) Loans Loans $ 3,324,056 $ 3,317,897 $ (6,159 ) Current and deferred taxes Other assets 2,125 6,026 3,901 Other liabilities Other liabilities 76,278 76,368 90 |
Information about ACI Loans Acquired in State Bank Merger as of Acquisition Date | Information about the ACI loans acquired in the State Bank merger as of the acquisition date is as follows: (In thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 143,283 Contractual cash flows not expected to be collected (nonaccretable difference) 54,954 Expected cash flows at acquisition 88,329 Accretable difference 10,053 Basis in acquired loans at acquisition - estimated fair value $ 78,276 |
Schedule of Pro forma Information for the Results of Operations | The following table presents certain unaudited pro forma information for the results of operations for the years ended December 31, 2019 and 2018, as if State Bank had been acquired on January 1, 2018. For the Years Ended December 31, 2019 2018 (In thousands) Pro Forma Pro Forma Total revenues (net interest income and noninterest income) $ 760,318 $ 770,372 Net income 185,452 262,029 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Securities Available-for-Sale | A summary of amortized cost and estimated fair value of securities available-for-sale at December 31, 2019 and 2018 is as follows: (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2019 Securities available-for-sale: U.S. Treasury securities $ — $ — $ — $ — Obligations of U.S. government agencies 69,464 57 415 69,106 Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS) Residential pass-through: Guaranteed by GNMA 98,122 1,205 245 99,082 Issued by FNMA and FHLMC 1,423,771 13,128 1,402 1,435,497 Other residential mortgage-backed securities 292,019 4,197 384 295,832 Commercial mortgage-backed securities 276,533 2,448 3,023 275,958 Total MBS 2,090,445 20,978 5,054 2,106,369 Obligations of states and municipal subdivisions 185,882 7,235 — 193,117 Total securities available-for-sale $ 2,345,791 $ 28,270 $ 5,469 $ 2,368,592 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Securities available-for-sale: U.S. Treasury securities $ 100,413 $ — $ 3,628 $ 96,785 Obligations of U.S. government agencies 60,975 316 284 61,007 Mortgage-backed securities issued or guaranteed by U.S. agencies (MBS) Residential pass-through: Guaranteed by GNMA 85,052 146 2,093 83,105 Issued by FNMA and FHLMC 594,874 694 10,367 585,201 Other residential mortgage-backed securities 36,339 8 1,178 35,169 Commercial mortgage-backed securities 114,383 287 5,255 109,415 Total MBS 830,648 1,135 18,893 812,890 Obligations of states and municipal subdivisions 229,475 207 13,112 216,570 Total securities available-for-sale $ 1,221,511 $ 1,658 $ 35,917 $ 1,187,252 |
Schedule of Contractual Maturities of Securities Available-for-Sale | The scheduled contractual maturities of securities available-for-sale at December 31, 2019 were as follows: Amortized Estimated (In thousands) Cost Fair Value Due in one year or less $ 15,768 $ 15,816 Due after one year through five years 1,310 1,297 Due after five years through ten years 28,633 28,364 Due after ten years 209,635 216,746 Mortgage-backed securities 2,090,445 2,106,369 Total $ 2,345,791 $ 2,368,592 |
Summary of Proceeds from Sales, Gross Gains, and Gross Losses on Sales of Securities Available for Sale | Proceeds from sales, gross gains, and gross losses on sales of securities available-for-sale for the years ended December 31, 2019, 2018, and 2017 are presented below. For the Year Ended December 31, (In thousands) 2019 2018 2017 Gross realized gains $ 3,536 $ 816 $ 167 Gross realized losses (1,518 ) (2,669 ) (313 ) Realized gains (losses), net $ 2,018 $ (1,853 ) $ (146 ) Proceeds from sales of securities available-for-sale $ 393,716 $ 268,799 $ 161,401 |
Schedule of Securities Classified as Available-for-Sale with Gross Unrealized Losses Aggregated by Category and Length of Time | Information pertaining to securities available-for-sale with gross unrealized losses aggregated by category and length of time the securities have been in a continuous loss position was as follows: Unrealized Loss Analysis Losses < 12 Months Losses > 12 Months (In thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses December 31, 2019 U.S. Treasury securities $ — $ — $ — $ — Obligations of U.S. government agencies 33,053 209 13,703 206 Mortgage-backed securities 708,991 4,466 61,506 588 Obligations of states and municipal subdivisions — — — — Total $ 742,044 $ 4,675 $ 75,209 $ 794 Unrealized Loss Analysis Losses < 12 Months Losses > 12 Months (In thousands) Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses December 31, 2018 U.S. Treasury securities $ — $ — $ 96,785 $ 3,628 Obligations of U.S. government agencies 25,978 183 10,152 101 Mortgage-backed securities 259,794 2,864 405,974 16,029 Obligations of states and municipal subdivisions 74,503 2,501 125,092 10,611 Total $ 360,275 $ 5,548 $ 638,003 $ 30,369 |
Loans Held-for-Sale, Loans an_2
Loans Held-for-Sale, Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |
Summary of Loans Held for Sale by Portfolio Segment | The following table presents a summary of the loans held-for-sale by portfolio segment as of December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Commercial and industrial $ 32,257 $ 42,457 Commercial real estate 49,109 — Consumer 2,988 17,004 Small business 3,295 — Total loans held for sale $ 87,649 $ 59,461 |
Summary of Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable | The following table presents total loans outstanding by portfolio segment and class of financing receivable as of December 31, 2019 and 2018. Outstanding balances include originated loans, Acquired Noncredit Impaired (“ANCI”) loans and Acquired Credit Impaired (“ACI”) loans. Additional information about ACI loans is presented separately in the “Acquired Credit-Impaired Loans” section of this Note. (In thousands) December 31, 2019 December 31, 2018 Commercial and Industrial General C&I $ 3,979,193 $ 3,275,362 Energy sector 1,427,832 1,285,775 Restaurant industry 993,397 1,096,366 Healthcare 472,307 539,839 Total commercial and industrial 6,872,729 6,197,342 Commercial Real Estate Income producing 2,517,707 1,266,791 Land and development 254,965 63,948 Total commercial real estate 2,772,672 1,330,739 Consumer Residential real estate 2,584,810 2,227,653 Other 93,175 67,100 Total consumer 2,677,985 2,294,753 Small Business Lending 734,237 266,283 Total (Gross of unearned discount and fees) 13,057,623 10,089,117 Unearned discount and fees (73,968 ) (35,194 ) Total (Net of unearned discount and fees) $ 12,983,655 $ 10,053,923 |
Summary of Allowance for Credit Losses | A summary of the activity in the ACL for each of the three years in the period ended December 31, 2019 is as follows: For the Year Ended December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Provision for loan losses 96,669 7,556 3,259 3,543 111,027 Charge-offs (79,590 ) (3,970 ) (1,802 ) (1,639 ) (87,001 ) Recoveries 914 55 232 38 1,239 As of December 31, 2019 $ 84,309 $ 14,093 $ 15,392 $ 5,849 $ 119,643 Allocation of ending ACL ACI loans collectively evaluated for impairment $ — $ 2,092 $ 5,998 $ — $ 8,090 ACI loans individually evaluated for impairment 1,172 22 74 — 1,268 ANCI loans collectively evaluated for impairment 439 70 690 157 1,356 ANCI loans individually evaluated for impairment 23 — 7 40 70 Originated loans collectively evaluated for impairment 69,514 11,909 8,623 5,629 95,675 Originated loans individually evaluated for impairment 13,161 — — 23 13,184 ACL as of December 31, 2019 $ 84,309 $ 14,093 $ 15,392 $ 5,849 $ 119,643 Loans ACI loans collectively evaluated for impairment $ 15,602 $ 67,087 $ 100,436 $ 12,161 $ 195,286 ACI loans individually evaluated for impairment 18,733 11,889 523 2,203 33,348 ANCI loans collectively evaluated for impairment 894,816 1,175,428 409,920 374,089 2,854,253 ANCI loans individually evaluated for impairment 3,217 1,174 1,484 142 6,017 Originated loans collectively evaluated for impairment 5,832,878 1,517,094 2,164,490 345,484 9,859,946 Originated loans individually evaluated for impairment 107,483 — 1,132 158 108,773 Loans as of December 31, 2019 $ 6,872,729 $ 2,772,672 $ 2,677,985 $ 734,237 $ 13,057,623 For the Year Ended December 31, 2018 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Provision for loan losses 15,708 (1,837 ) (900 ) (271 ) 12,700 Charge-offs (6,709 ) (2 ) (716 ) (618 ) (8,045 ) Recoveries 1,398 301 336 112 2,147 As of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Allocation of ending ACL ACI loans collectively evaluated for impairment $ 58 $ 1,641 $ 6,018 $ — $ 7,717 ACI loans individually evaluated for impairment — — 207 — 207 ANCI loans collectively evaluated for impairment 293 53 535 58 939 ANCI loans individually evaluated for impairment — — 6 107 113 Originated loans collectively evaluated for impairment 58,665 8,758 6,918 3,742 78,083 Originated loans individually evaluated for impairment 7,300 — 19 — 7,319 ACL as of December 31, 2018 $ 66,316 $ 10,452 $ 13,703 $ 3,907 $ 94,378 Loans ACI loans collectively evaluated for impairment $ 13,018 $ 58,171 $ 120,717 $ — $ 191,906 ACI loans individually evaluated for impairment 3,789 7,256 324 — 11,369 ANCI loans collectively evaluated for impairment 50,469 7,808 280,776 8,462 347,515 ANCI loans individually evaluated for impairment — — 1,538 279 1,817 Originated loans collectively evaluated for impairment 6,053,264 1,257,504 1,891,144 257,542 9,459,454 Originated loans individually evaluated for impairment 76,802 — 254 — 77,056 Loans as of December 31, 2018 $ 6,197,342 $ 1,330,739 $ 2,294,753 $ 266,283 $ 10,089,117 For the Year Ended December 31, 2017 (In thousands) Commercial and Industrial Commercial Real Estate Consumer Small Business Total As of December 31, 2016 $ 54,688 $ 10,103 $ 13,265 $ 4,212 $ 82,268 Provision for loan losses 5,883 1,737 1,746 369 9,735 Charge-offs (5,645 ) (93 ) (929 ) (204 ) (6,871 ) Recoveries 993 243 901 307 2,444 As of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Allocation of ending ACL ACI loans collectively evaluated for impairment $ 5 $ 2,006 $ 6,289 $ — $ 8,300 ACI loans individually evaluated for impairment — 4 220 — 224 ANCI loans collectively evaluated for impairment 864 130 49 295 1,338 ANCI loans individually evaluated for impairment — — 36 22 58 Originated loans collectively evaluated for impairment 46,591 9,850 8,389 4,362 69,192 Originated loans individually evaluated for impairment 8,459 — — 5 8,464 ACL as of December 31, 2017 $ 55,919 $ 11,990 $ 14,983 $ 4,684 $ 87,576 Loans ACI loans collectively evaluated for impairment $ 19,486 $ 71,675 $ 150,798 $ — $ 241,959 ACI loans individually evaluated for impairment 10,091 8,186 324 — 18,601 ANCI loans collectively evaluated for impairment 58,775 15,926 113,357 11,331 199,389 ANCI loans individually evaluated for impairment — — 1,582 310 1,892 Originated loans collectively evaluated for impairment 4,974,973 1,062,614 1,499,260 209,627 7,746,474 Originated loans individually evaluated for impairment 70,461 — 415 587 71,463 Loans as of December 31, 2017 $ 5,133,786 $ 1,158,401 $ 1,765,736 $ 221,855 $ 8,279,778 |
Originated and Acquired Non Credit Impaired Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Summary of Impaired Loans | The following tables include certain key information about individually impaired originated and ANCI loans. As of December 31, 2019 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments With no related allowance for credit losses Commercial and Industrial General C&I $ 13,981 $ 19,241 $ — $ 9,692 $ — Energy sector 2,184 20,714 — 2,184 250 Restaurant industry 16,710 31,702 — 16,710 3,061 Healthcare 3,770 4,084 — 3,770 — Total commercial and industrial 36,645 75,741 — 32,356 3,311 Commercial Real Estate Income producing 1,174 1,648 — 1,127 — Total commercial real estate 1,174 1,648 — 1,127 — Consumer Residential real estate 1,131 1,147 — 1,131 — Total consumer 1,131 1,147 — 1,131 — Total $ 38,950 $ 78,536 $ — $ 34,614 $ 3,311 With allowance for credit losses recorded Commercial and Industrial General C&I $ 37,156 $ 38,558 $ 7,272 $ 37,156 $ 555 Energy sector 8,603 19,815 2,755 7,599 — Restaurant industry 28,321 35,286 3,157 28,321 5,670 Total commercial and industrial 74,080 93,659 13,184 73,076 6,225 Consumer Residential real estate 1,485 1,484 7 447 — Total consumer 1,485 1,484 7 447 — Small Business Lending 300 1,125 63 142 — Total $ 75,865 $ 96,268 $ 13,254 $ 73,665 $ 6,225 As of December 31, 2018 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments With no related allowance for credit losses Commercial and Industrial Energy sector $ 20,713 $ 33,908 $ — $ 20,713 $ 3,658 Total commercial and industrial 20,713 33,908 — 20,713 3,658 Consumer Residential real estate 1,538 1,535 — — — Total consumer 1,538 1,535 — — — Total $ 22,251 $ 35,443 $ — $ 20,713 $ 3,658 With allowance for credit losses recorded Commercial and Industrial General C&I $ 28,684 $ 28,677 $ 3,559 $ 24,103 $ 930 Restaurant industry 23,043 23,698 3,485 22,042 2,329 Healthcare 4,496 4,496 256 4,496 — Total commercial and industrial 56,223 56,871 7,300 50,641 3,259 Consumer Other 254 254 25 — — Total consumer 254 254 25 — — Small Business Lending 476 1,249 107 229 10 Total $ 56,953 $ 58,374 $ 7,432 $ 50,870 $ 3,269 (1) The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. |
Summary of Average Recorded Investment in Impaired Originated and ANCI Loans | The following table presents the average recorded investment in individually impaired originated and ANCI loans. Year Ended December 31, (In thousands) 2019 2018 2017 Commercial and Industrial General C&I $ 41,217 $ 10,834 $ 8,586 Energy sector 17,075 27,348 108,751 Restaurant industry 34,039 16,600 2,203 Healthcare 4,197 1,124 — Total commercial and industrial 96,528 55,906 119,540 Commercial Real Estate Income producing 478 — — Total commercial real estate 478 — — Consumer Residential real estate 1,971 1,557 1,426 Other 153 313 386 Total consumer 2,124 1,870 1,812 Small Business Lending 385 420 945 Total $ 99,515 $ 58,196 $ 122,297 |
Summary of Originated and ANCI Loans that were modified into TDRs | The following table provides information regarding loans that were modified into TDRs in the originated and ANCI portfolios during the periods indicated. For the Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Number of TDRs Recorded Investment Number of TDRs Recorded Investment Number of TDRs Recorded Investment Commercial and Industrial 9 $ 36,068 4 $ 30,244 3 $ 16,027 Consumer — — — — 2 739 Small Business Lending — — 2 141 1 138 Total 9 $ 36,068 6 $ 30,385 6 $ 16,904 The following table provides information regarding the types of loan modifications that were modified into TDRs in the originated and ANCI portfolios during the periods indicated. For the Year Ended December 31, 2019 2018 2017 Number of Loans Modified by: Rate Concession Modified Terms and/ or Other Concessions Rate Concession Modified Terms and/ or Other Concessions Rate Concession Modified Terms and/ or Other Concessions Commercial and Industrial — 9 — 4 2 1 Consumer — — — — — 2 Small Business Lending — — 2 — 1 — Total — 9 2 4 3 3 |
Summary of Credit Exposure by Portfolio Segment and Class of Receivable | The following tables provide information regarding the credit exposure by portfolio segment and class of receivable. As of December 31, 2019 (Recorded investment in thousands) Special Mention Substandard Doubtful Total Criticized Commercial and Industrial General C&I $ 70,007 $ 192,332 $ 7,255 $ 269,594 Energy sector 66,235 26,439 2,754 95,428 Restaurant industry 45,456 57,992 4,697 108,145 Healthcare 22,414 3,984 — 26,398 Total commercial and industrial 204,112 280,747 14,706 499,565 Commercial Real Estate Income producing 35,706 1,717 — 37,423 Land and development 8,825 — — 8,825 Total commercial real estate 44,531 1,717 — 46,248 Consumer Residential real estate — 7,982 — 7,982 Other — 55 — 55 Total consumer — 8,037 — 8,037 Small Business Lending 6,045 6,725 — 12,770 Total $ 254,688 $ 297,226 $ 14,706 $ 566,620 As of December 31, 2018 (Recorded investment in thousands) Special Mention Substandard Doubtful Total Criticized Commercial and Industrial General C&I $ 74,592 $ 79,815 $ — $ 154,407 Energy sector 11,812 6,227 14,486 32,525 Restaurant industry 24,449 26,171 — 50,620 Healthcare — 4,496 — 4,496 Total commercial and industrial 110,853 116,709 14,486 242,048 Commercial Real Estate Land and development — 985 — 985 Total commercial real estate — 985 — 985 Consumer Residential real estate — 3,315 — 3,315 Total consumer — 3,315 — 3,315 Small Business Lending 772 2,013 — 2,785 Total $ 111,625 $ 123,022 $ 14,486 $ 249,133 |
Past Due Financing Receivables | The following tables provide an aging of past due loans by portfolio segment and class of receivable. As of December 31, 2019 Accruing Loans Non-Accruing Loans (Recorded investment in thousands) 30-59 DPD 60-89 DPD 90+ DPD 0-29 DPD 30-59 DPD 60-89 DPD 90+ DPD Commercial and Industrial General C&I $ 210 $ 499 $ — $ 24,622 $ 21,193 $ — $ 1,033 Energy sector — — — 1,417 — — 8,365 Restaurant industry — — — 41,566 — — 3,468 Healthcare — 41 — 173 — — 3,770 Total commercial and industrial 210 540 — 67,778 21,193 — 16,636 Commercial Real Estate Income producing 2,325 101 — — — — 1,127 Total commercial real estate 2,325 101 — — — — 1,127 Consumer Residential real estate 6,501 2,713 707 1,918 183 1,787 3,385 Other 187 28 40 — — — 15 Total consumer 6,688 2,741 747 1,918 183 1,787 3,400 Small Business Lending 2,659 654 198 652 397 — 3,288 Total $ 11,882 $ 4,036 $ 945 $ 70,348 $ 21,773 $ 1,787 $ 24,451 As of December 31, 2018 Accruing Loans Non-Accruing Loans (Recorded investment in thousands) 30-59 DPD 60-89 DPD 90+ DPD 0-29 DPD 30-59 DPD 60-89 DPD 90+ DPD Commercial and Industrial General C&I $ 120 $ — $ — $ 23,928 $ 176 $ — $ — Energy sector — — — 20,712 — — — Restaurant industry — — — 22,043 — — — Healthcare — — — 4,496 — — — Total commercial and industrial 120 — — 71,179 176 — — Commercial Real Estate Land and development — 61 — — — — — Total commercial real estate — 61 — — — — — Consumer Residential real estate 1,275 315 760 876 151 95 1,429 Other 27 112 — — — — — Total consumer 1,302 427 760 876 151 95 1,429 Small Business Lending 491 25 — 250 29 4 50 Total $ 1,913 $ 513 $ 760 $ 72,305 $ 356 $ 99 $ 1,479 |
ACI Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Summary of Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable | The following table presents total ACI loans outstanding by portfolio segment and class of financing receivable. See Note 2 for more information regarding our merger with State Bank. (In thousands) December 31, 2019 December 31, 2018 Commercial and Industrial General C&I $ 31,801 $ 16,807 Restaurant industry 2,534 — Total commercial and industrial 34,335 16,807 Commercial Real Estate Income producing 66,775 65,427 Land and development 12,201 — Total commercial real estate 78,976 65,427 Consumer Residential real estate 100,133 120,495 Other 826 546 Total consumer 100,959 121,041 Small Business Lending 14,364 — Total $ 228,634 $ 203,275 |
Summary of Credit Exposure by Portfolio Segment and Class of Receivable | The following table provides information regarding the credit exposure by portfolio segment and class of receivable. December 31, 2019 December 31, 2018 (Recorded investment in thousands) Special Mention Substandard Doubtful Special Mention Substandard Doubtful Commercial and Industrial General C&I $ 51 $ 11,755 $ 936 $ 426 $ 1,445 $ 39 Restaurant industry — 567 — — — — Total commercial and industrial 51 12,322 936 426 1,445 39 Commercial Real Estate Income producing 499 5,408 — 1,207 3,080 — Land and development 172 2,350 — — — — Total commercial real estate 671 7,758 — 1,207 3,080 — Consumer Residential real estate 152 3,621 — 89 4,442 — Other — 26 — — 3 — Total consumer 152 3,647 — 89 4,445 — Small Business Lending 528 12,401 — — — — Total $ 1,402 $ 36,128 $ 936 $ 1,722 $ 8,970 $ 39 |
Past Due Financing Receivables | The following table provides an aging of ACI consumer loans by past due status. December 31, 2019 December 31, 2018 (Recorded investment in thousands) Residential Real Estate Other Residential Real Estate Other 0 – 29 Days Past Due $ 92,327 $ 553 $ 115,404 $ 845 30 – 59 Days Past Due 2,636 62 1,985 91 60 – 89 Days Past Due 1,635 52 1,435 — 90 – 119 Days Past Due 372 25 217 3 120 + Days Past Due 3,163 134 3,598 — Total $ 100,133 $ 826 $ 122,639 $ 939 |
Summary of Changes in Accretable Discount for ACI Loans | Changes in the amount of accretable discount for ACI loans for each of the three years in the period ended December 31, 2019 were as follows: For the Year Ended December 31, (In thousands) 2019 2018 2017 Balance at beginning of period $ 67,405 $ 78,422 $ 98,728 Additions (See Note 2) 10,053 — — Accretion (29,927 ) (19,813 ) (23,303 ) Reclass from nonaccretable difference due to increases in expected cash flow 14,298 16,765 14,075 Other changes, net (2,282 ) (7,969 ) (11,078 ) Balance at end of period $ 59,547 $ 67,405 $ 78,422 |
Summary of Individually Impaired and Pooled ACI Loans | The following tables include certain key information about individually impaired and pooled ACI loans. As of December 31, 2019 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments Commercial and Industrial $ 23,173 $ 31,813 $ 1,172 $ — $ — Commercial Real Estate 72,466 93,058 2,114 — — Consumer 22,105 22,303 6,072 — — Total $ 117,744 $ 147,174 $ 9,358 $ — $ — As of December 31, 2018 (In thousands) Recorded Investment in Impaired Loans (1) Unpaid Principal Balance Related Specific Allowance Nonaccrual Loans Included in Impaired Loans Undisbursed Commitments Commercial and Industrial $ 2,100 $ 2,331 $ 58 $ — $ — Commercial Real Estate 74,017 97,613 1,641 — — Consumer 18,301 17,888 6,225 — — Total $ 94,418 $ 117,832 $ 7,924 $ — $ — (1) The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Components of Premises and Equipment | Premises and equipment are stated at cost, less accumulated depreciation and amortization, as follows: December 31, (In thousands) Estimated Useful Life in Years 2019 2018 Premises: Land — $ 38,402 $ 16,604 Buildings, construction and improvements (1) 2-40 94,886 54,298 Total premises 133,288 70,902 Equipment 3-10 53,517 40,960 Total premises and equipment 186,805 111,862 Less: Accumulated depreciation and amortization (58,938 ) (48,241 ) Total premises and equipment, net $ 127,867 $ 63,621 (1) Leasehold improvements are depreciated over the lesser of the estimated useful life or the lease term. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The following table summarizes the Company’s goodwill and other intangible assets at December 31, 2019 and 2018: December 31, December 31, (In thousands) 2019 2018 Goodwill $ 485,336 $ 307,083 Core deposit intangible, net of accumulated amortization of $60,836 and $39,385, respectively 90,788 301 Customer lists, net of accumulated amortization of $21,908 and $19,709, respectively 11,993 6,992 Noncompete agreements, net of accumulated amortization of $137 and $0, respectively 1,473 — Trademarks, net of accumulated amortization of $75 and $0, respectively 1,359 24 Total goodwill and intangible assets, net $ 590,949 $ 314,400 |
Summary of Changes to Carrying Amount of Goodwill by Segment | The following table represents changes to the carrying amount of goodwill by segment for the period reported. (In thousands) Banking Financial Services Corporate Consolidated Balance as of December 31, 2018 $ 266,922 $ 40,161 $ — $ 307,083 Additions: State Bank acquisition 175,657 — — 175,657 Wealth & Pension acquisition — 2,596 — 2,596 Balance as of December 31, 2019 $ 442,579 $ 42,757 $ — $ 485,336 |
Summary of Estimated Amortization Expense for Core Deposit Intangibles Customer Relationships and Other Intangible Assets | The estimated aggregate amortization expense for core deposit intangibles, customer relationships, and other intangible assets is estimated as follows: (In thousands) 2020 $ 21,612 2021 19,093 2022 16,622 2023 14,150 2024 and thereafter 34,112 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Estimated Fair Values | The notional amounts and estimated fai r values as of December 31, 201 9 and 201 8 were as follows: December 31, 2019 December 31, 2018 Fair Value Fair Value (In thousands) Notional Amount Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate swaps $ 350,000 $ — $ 643 $ 650,000 $ — $ 23,968 Commercial loan interest rate collars 4,000,000 239,213 — — — — Total derivatives designated as hedging instruments 4,350,000 239,213 643 650,000 — 23,968 Derivatives not designated as hedging instruments: Commercial loan interest rate swaps 1,008,805 8,386 899 1,155,942 4,439 1,777 Commercial loan interest rate caps 167,185 18 18 88,430 239 239 Commercial loan interest rate floors 654,298 8,836 8,836 652,822 5,587 5,587 Commercial loan interest rate collars 75,555 257 257 80,000 96 96 Mortgage loan held-for-sale interest rate lock commitments 4,138 22 — 5,286 72 — Mortgage loan forward sale commitments 4,109 26 — 1,959 5 — Mortgage loan held-for-sale floating commitments 1,523 — — 14,690 — — Foreign exchange contracts 74,322 379 558 46,971 698 683 Total derivatives not designated as hedging instruments 1,989,935 17,924 10,568 2,046,100 11,136 8,382 Total derivatives $ 6,339,935 $ 257,137 $ 11,211 $ 2,696,100 $ 11,136 $ 32,350 |
Schedule of Gain (Loss) in Consolidated Statements of Income Related to Derivative Instruments | Pre-tax For the Year Ended December 31, 2019 2018 2017 (In thousands) OCI Reclassified from AOCI to interest income Noninterest income OCI Reclassified from AOCI to interest income Noninterest income OCI Reclassified from AOCI to interest income Noninterest income Derivatives designated as hedging instruments (cash flow hedges): Commercial loan interest rate swaps $ 18,654 $ (4,670 ) $ — $ (7,711 ) $ (5,164 ) $ — $ (1,426 ) $ 3,705 $ — Commercial loan interest rate collars 133,758 9,633 — — — — — — — Derivatives not designated as hedging instruments: Mortgage loans held for sale interest rate lock commitments $ — $ — $ (49 ) $ — $ — $ 22 — — (39 ) Foreign exchange contracts — — 3,813 — — 2,222 — — 2,271 |
Schedule of Interest Rate Swap Agreements | At December 31, 2019, the Company has outstanding the following interest rate swap agreements to manage overall cash flow changes related to interest rate risk exposure on benchmark interest rate loans. Effective Date Maturity Date Notional Amount (In Thousands) Fixed Rate Variable Rate March 8, 2016 February 27, 2026 $ 175,000 1.5995 % 1 Month LIBOR March 8, 2016 February 27, 2026 175,000 1.5890 1 Month LIBOR |
Leases (Table)
Leases (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Initial Recognition of Operating Lease Assets and Liability | The Company elected to adopt the optional modified retrospective transition approach, which resulted in the following initial recognition amounts on January 1, 2019: (In thousands) Operating right-of-use assets $ 65,902 State Bank acquisition 14,089 Total operating right-of-use assets $ 79,991 Operating lease liability $ 92,268 |
Schedule of Future Minimum Lease Payments / Maturity Analysis of Operating Lease Liabilities | The following table presents a maturity analysis of the Company’s operating lease liabilities as of December 31, 2019: (In thousands) 2020 $ 11,144 2021 11,070 2022 9,460 2023 8,833 2024 7,315 Thereafter 55,820 Total lease payments 103,642 Less: interest (26,260 ) Operating lease liability $ 77,382 |
Components of Lease Cost | The components of lease cost for the year ended December 31, 2019 were as follows: (In thousands) Operating lease cost $ 10,201 Short-term lease cost 97 Sublease income (1,659 ) Total lease cost $ 8,639 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to operating leases at December 31, 2019 was as follows: (Dollars in thousands) Weighted average remaining lease term (in years) 12.3 Weighted average discount rate 4.7 % |
Property and Equipment | |
Schedule of Future Minimum Lease Payments / Maturity Analysis of Operating Lease Liabilities | The following is a schedule by year of future minimum lease payments under operating leases, as of December 31, 2019: (In thousands) Property Equipment Total 2020 $ 13,599 $ 7 $ 13,606 2021 12,782 10 12,792 2022 10,284 19 10,303 2023 7,085 - 7,085 2024 2,734 - 2,734 Thereafter 5,812 - 5,812 Total minimum lease payments $ 52,296 $ 36 $ 52,332 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Scheduled Maturities of Time Deposits Included in Interest-Bearing Deposits | At December 31, 2019, the scheduled maturities of time deposits included in interest-bearing deposits were as follows: (In thousands) December 31, 2019 2020 $ 2,266,107 2021 236,414 2022 41,013 2023 8,908 2024 and thereafter 11,065 Total $ 2,563,507 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Securities Sold Under Agreements to Repurchase | Information concerning the Company’s securities sold under agreements to repurchase as of December 31, 2019 and 2018 is summarized as follows: December 31, (Dollars in thousands) 2019 2018 Balance at period end $ — $ 1,106 Average balance during the period 3,855 1,630 Average interest rate during the period 0.15 % 0.25 % Maximum month-end balance during the period $ 23,908 $ 2,384 |
Summary of Debt | Details of the debt transactions are as follows: December 31, (In thousands) 2019 2018 Cadence Bancorporation: 4.875% senior notes, due June 28, 2019 $ — $ 145,000 5.375% senior notes, due June 28, 2021 50,000 50,000 7.250% subordinated notes, due June 28, 2029, callable in 2024 35,000 35,000 6.500% subordinated notes, due March 2025 40,000 40,000 4.750% subordinated notes, due June 2029 85,000 — Total — Cadence Bancorporation 210,000 270,000 Cadence Bank: 6.250% subordinated notes, due June 28, 2029, callable in 2024 25,000 25,000 Debt issue costs and unamortized premium (2,350 ) (1,211 ) Purchased 4.875% senior notes, due June 28, 2019 — (10,078 ) Total senior and subordinated debt $ 232,650 $ 283,711 |
Summary of Junior Subordinated Debt | The following is a list of junior subordinated debt: December 31, (In thousands) 2019 2018 Junior subordinated debentures, 3 month LIBOR plus 2.85%, due 2033 $ 30,000 $ 30,000 Junior subordinated debentures, 3 month LIBOR plus 2.95%, due 2033 5,155 5,155 Junior subordinated debentures, 3 month LIBOR plus 1.75%, due 2037 15,464 15,464 Total par value 50,619 50,619 Purchase accounting adjustment, net of amortization (13,174 ) (13,666 ) Total junior subordinated debentures $ 37,445 $ 36,953 |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Nonoperating Income Expense [Abstract] | |
Summary of Other Noninterest Income and Other Noninterest Expense | The detail of the other noninterest income and other noninterest expense captions presented in the consolidated statements of income is as follows: Year Ended December 31, (In thousands) 2019 2018 2017 Other noninterest income Insurance revenue $ 878 $ 2,677 $ 7,378 Mortgage banking income 3,174 2,372 3,731 Income from bank owned life insurance policies 4,971 3,450 3,313 Other 6,881 6,033 6,655 Total other noninterest income $ 15,904 $ 14,532 $ 21,077 Year Ended December 31, (In thousands) 2019 2018 2017 Other noninterest expenses Data processing expense $ 13,013 $ 8,775 $ 7,590 Software amortization 13,352 5,929 6,635 Consulting and professional fees 10,301 13,285 9,090 Loan related expenses 2,383 3,145 2,379 FDIC insurance 5,394 4,645 4,275 Communications 5,116 2,773 2,837 Advertising and public relations 5,017 2,523 2,048 Legal expenses 1,608 3,732 4,274 Other 41,716 22,373 21,537 Total other noninterest expenses $ 97,900 $ 67,180 $ 60,665 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of the Consolidated Income Tax Expense | The components of the consolidated income tax expense are as follows: For the Year Ended December 31, (In thousands) 2019 2018 2017 Current: Federal $ 41,863 $ 36,862 $ 33,799 State 6,640 3,791 2,458 Total current expense 48,503 40,653 36,257 Deferred: Federal 11,012 3,791 44,009 State 828 673 380 Total deferred expense 11,840 4,464 44,389 Total income tax expense $ 60,343 $ 45,117 $ 80,646 |
Reconciliation of Total Income Tax Expense | Income tax expense as shown in the consolidated statements of income differed from the amounts computed by applying the U.S. federal income tax statutory rate to income before income taxes. The statutory rate is 21 % for 2019 and 2018 and 35 % for 2017. A reconciliation of the differences is presented below: For the Year Ended December 31, (In thousands) 2019 2018 2017 Computed income tax expense at statutory rate $ 55,083 $ 44,389 $ 64,050 Effects of tax reform — (284 ) 19,022 Tax exempt interest, net (952 ) (1,609 ) (3,988 ) Income on bank owned life insurance (1,036 ) (717 ) (1,148 ) State tax expense 5,900 3,527 2,279 Goodwill write-off on sale of subsidiary assets — 2,254 — One-time bad debt deduction on legacy loan portfolio — (5,565 ) — Other, net 1,348 3,122 431 Total income tax expense $ 60,343 $ 45,117 $ 80,646 |
Significant Components of the Company's Deferred Tax Assets and Liabilities | The significant components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: As of December 31, (In thousands) 2019 2018 Deferred income tax assets: Allowance for credit losses $ 25,950 $ 20,256 Lease liability 18,235 — Deferred compensation 4,562 3,338 Accrued compensation 3,355 3,630 Net operating loss carryforwards 11,524 8,893 Alternative minimum tax credit carryover 489 978 Unrealized losses on securities, net — 7,910 Unrealized losses on derivative instruments — 5,496 Other 2,847 3,588 Tax basis difference in acquired assets Loans 8,756 — Investment securities 1,344 — Other 2,183 — Total deferred income tax assets 79,245 54,089 Deferred income tax liabilities: Tax basis difference in acquired assets Intangible assets 37,647 11,046 Other 3,379 3,580 Right of use assets 15,550 — Premises and equipment 4,941 — Unrealized gain on securities, net 5,265 — Unrealized gain on derivative instruments 28,550 — Other 8,895 6,239 Total deferred income tax liabilities 104,227 20,865 Net deferred income tax (liability) asset $ (24,982 ) $ 33,224 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized income tax benefits is as follows (unrecognized state income tax benefits are not adjusted for the federal income tax impact): For the Year Ended December 31, (In thousands) 2019 2018 2017 Unrecognized income tax benefits, January 1 $ 1,272 $ 894 $ 944 Increases for tax positions related to: Prior years — — 9 Current year 54 479 394 Decreases for tax positions related to: Prior years (38 ) (101 ) (453 ) Current year — — — Settlement with taxing authorities — — — Expiration of applicable statutes of limitations — — — Unrecognized income tax benefits, December 31 $ 1,288 $ 1,272 $ 894 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Net Income Per Common Share | The following table displays a reconciliation of the information used in calculating basic and diluted net income per common share for each of the years in the period ended December 31, 2019. Year Ended December 31, (In thousands, except per share data) 2019 2018 2017 Net income per consolidated statements of income $ 201,958 $ 166,261 $ 102,353 Net income allocated to participating securities (683 ) (197 ) — Net income allocated to common stock $ 201,275 $ 166,064 $ 102,353 Weighted average common shares outstanding (Basic) 128,913,962 83,562,109 81,072,945 Weighted average dilutive restricted stock units and warrants 103,637 813,180 532,070 Weighted average common shares outstanding (Diluted) 129,017,599 84,375,289 81,605,015 Earnings per common share (Basic) $ 1.56 $ 1.99 $ 1.26 Earnings per common share (Diluted) $ 1.56 $ 1.97 $ 1.25 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension plan funded | The following table sets forth the defined benefit pension plan’s funded status as of December 31, 2019 and 2018 and amounts recognized in the Company’s consolidated financial statements for each of the years in the period ended December 31, 2019: (In thousands) 2019 2018 Change in benefit obligation: Benefit obligation at beginning of period $ 5,116 $ 5,909 Service cost 71 100 Interest cost 126 165 Actuarial loss (gain) 269 (797 ) Administrative expenses paid (147 ) (36 ) Benefits paid (47 ) (225 ) Settlements (5,388 ) — Benefit obligation at end of year — 5,116 Change in plan assets: Fair value of plan assets at beginning of period 5,656 6,130 Return on plan assets 278 (213 ) Employer contributions — — Administrative expenses paid (147 ) (36 ) Benefits paid (47 ) (225 ) Settlements (5,459 ) — Fair value of plan assets at end of year 281 5,656 Funded status $ — $ 540 (In thousands) 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 71 $ 100 $ 100 Interest cost 126 165 192 Expected return on plan assets (198 ) (319 ) (261 ) Net loss amortization 11 — 65 Cost of settlements 1,225 — 45 Net periodic benefit cost $ 1,235 $ (54 ) $ 141 Amount recognized in accumulated other comprehensive income: Amortization of net actuarial loss $ 11 $ — $ 65 Net actuarial (loss) gain (147 ) 265 48 Adjustment for settlement 461 — 45 Gains on pension liability 325 265 158 Tax effect 3 (62 ) (37 ) Net unrealized gains on pension liability $ 328 $ 203 $ 121 |
Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost | 2019 2018 2017 Weighted average assumptions used to determine benefit obligations and net periodic pension cost at December 31: Discount rate N/A 3.92 % 3.21 % Compensation increase rate N/A N/A N/A Census date N/A 1/1/2019 1/1/2018 Expected return on plan assets N/A 5.50 % 5.50 % |
Schedule of Defined Benefit Pension Plan Fair Values and Weighted-Average Asset Allocations by Asset Category | The Company’s defined benefit pension plan fair values and weighted-average asset allocations at December 31, 2019 and 2018, by asset category, were as follows: 2019 2018 (In thousands) Fair Value of Plan Assets Asset Allocations Fair Value of Plan Assets Asset Allocations Asset Category: Equity securities $ — — % $ 2,262 40 % Fixed income securities — — 3,311 59 Cash and cash equivalents 281 100 83 1 Total $ 281 100 % $ 5,656 100 % |
Other Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Expected Benefit Payments | Projected benefit payments under these plans are anticipated to be paid as follows: Year Amount (In thousands) 2020 $ 416 2021 420 2022 591 2023 614 2024 718 2025-2029 4,269 Total $ 7,028 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Actual Capital Amounts and Ratios | The actual capital amounts and ratios for the Company and the Bank as of December 31, 2019 and 2018 are presented in the following tables and as shown, are above the thresholds necessary to be considered “well-capitalized.” Managem ent believes that no events or changes have occurred after December 31, 2019 that would change this designation. Consolidated Company Bank (In thousands) Amount Ratio Amount Ratio December 31, 2019 Tier 1 leverage $ 1,784,664 10.3 % $ 1,953,008 11.3 % Common equity tier 1 capital 1,784,664 11.5 1,903,008 12.3 Tier 1 risk-based capital 1,784,664 11.5 1,953,008 12.6 Total risk-based capital 2,120,571 13.7 2,099,146 13.6 Minimum requirement: Tier 1 leverage 690,213 4.0 689,881 4.0 Common equity tier 1 capital 697,089 4.5 696,755 4.5 Tier 1 risk-based capital 929,453 6.0 929,007 6.0 Total risk-based capital 1,239,270 8.0 1,238,676 8.0 Well capitalized requirement: Tier 1 leverage N/A N/A 862,351 5.0 Common equity tier 1 capital N/A N/A 1,006,425 6.5 Tier 1 risk-based capital 929,453 6.0 1,238,676 8.0 Total risk-based capital 1,549,088 10.0 1,548,345 10.0 Consolidated Company Bank (In thousands) Amount Ratio Amount Ratio December 31, 2018 Tier 1 leverage $ 1,209,407 10.1 % $ 1,327,974 11.1 % Common equity tier 1 capital 1,172,454 9.8 1,277,974 10.7 Tier 1 risk-based capital 1,209,407 10.1 1,327,974 11.1 Total risk-based capital 1,403,311 11.8 1,447,719 12.1 Minimum requirement: Tier 1 leverage 479,940 4.0 479,667 4.0 Common equity tier 1 capital 536,930 4.5 536,285 4.5 Tier 1 risk-based capital 715,907 6.0 715,047 6.0 Total risk-based capital 954,542 8.0 953,396 8.0 Well capitalized requirement: Tier 1 leverage N/A N/A 599,584 5.0 Common equity tier 1 capital N/A N/A 774,634 6.5 Tier 1 risk-based capital 715,907 6.0 953,396 8.0 Total risk-based capital 1,193,178 10.0 1,191,745 10.0 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitments and Contingent Liabilities | A summary of commitments and contingent liabilities is as follows: As of December 31, (In thousands) 2019 2018 Commitments to extend credit $ 4,667,360 $ 4,078,708 Commitments to grant loans 292,199 103,570 Standby letters of credit 213,548 141,214 Performance letters of credit 27,985 21,026 Commercial letters of credit 15,587 11,262 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Supplemental Cash Flow Information | For the Year Ended December 31, (In thousands) 2019 2018 2017 Cash paid during the year for: Interest $ 207,052 $ 120,823 $ 69,289 Income taxes, net of refunds 51,729 40,754 33,268 Cash paid for amounts included in lease liabilities 11,276 — — Non-cash investing activities (at fair value): Acquisition of real estate in settlement of loans 2,769 3,207 7,023 Transfers of loans held for sale to loans 44,210 — — Transfers of loans to loans held for sale 123,815 36,627 16,206 Right-of-use assets obtained in exchange for operating lease liabilities 84,952 — — |
Disclosure About Fair Values _2
Disclosure About Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis categorized by the level of inputs used in the valuation of each asset and liability at December 31, 2019 and 2018: (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2019 Assets Investment securities available-for-sale $ 2,368,592 $ — $ 2,368,592 $ — Equity securities with readily determinable fair values not held for trading 1,862 1,862 — — Derivative assets 257,137 — 257,137 — Other assets 26,882 — — 26,882 Total recurring basis measured assets $ 2,654,473 $ 1,862 $ 2,625,729 $ 26,882 Liabilities Derivative liabilities $ 11,211 $ — $ 11,211 $ — Total recurring basis measured liabilities $ 11,211 $ — $ 11,211 $ — (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2018 Assets Investment securities available-for-sale $ 1,187,252 $ — $ 1,187,252 $ — Equity securities with readily determinable fair values not held for trading 5,840 5,840 — — Derivative assets 11,136 — 11,136 — Other assets 16,970 — — 16,970 Total recurring basis measured assets $ 1,221,198 $ 5,840 $ 1,198,388 $ 16,970 Liabilities Derivative liabilities $ 32,350 $ — $ 32,350 $ — Total recurring basis measured liabilities $ 32,350 $ — $ 32,350 $ — |
Summary of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis | For the Years Ended December 31, 2019 2018 2019 2018 2019 2018 (In thousands) Net Profits Interests Investments in Limited Partnerships SBA Servicing Assets Beginning Balance $ 5,779 $ 15,833 $ 11,191 $ — $ — $ — Acquired — — — — 6,213 — Originations — — — — 1,412 — Transfers in due to adoption of ASU 2016-01 — — — 5,129 — — Adjustment recorded in retained earnings due to adoption of ASU 2016-01 — — — 1,201 — — Sales proceeds — (5,308 ) — — — — Net (losses) gains included in earnings (874 ) (3,177 ) 2,841 2,457 (3,815 ) — Reclassifications — — 140 — — — Contributions paid — — 5,970 3,807 — — Distributions received (575 ) (1,569 ) (1,400 ) (1,403 ) — — Ending Balance $ 4,330 $ 5,779 $ 18,742 $ 11,191 $ 3,810 $ — Net unrealized (losses) gains included in earnings relating to assets held at the end of the period $ (874 ) $ (2,818 ) $ 2,841 $ 2,457 $ (3,815 ) $ — |
Summary of Assets Recorded at Fair Value on a Nonrecurring Basis | From time to time, the Company may be required to measure certain other financial assets at fair value on a nonrecurring basis in accordance with GAAP. These adjustments to fair value usually result from the application of lower of cost or fair value accounting or write-downs of individual assets. For assets measured at fair value on a nonrecurring basis which were still held on the balance sheets at December 31, 2019 and 2018, the following tables provide the level of valuation assumptions used to determine each adjustment and the related carrying value: (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2019 Loans held for sale $ 87,649 $ — $ 87,649 $ — Impaired loans, net of specific allowance 101,561 — — 101,561 Other real estate 1,628 — — 1,628 Total assets measured on a nonrecurring basis $ 190,838 $ — $ 87,649 $ 103,189 (In thousands) Carrying Value (Level 1) (Level 2) (Level 3) December 31, 2018 Loans held for sale $ 59,461 $ — $ 59,461 $ — Impaired loans, net of specific allowance 71,742 — — 71,742 Other real estate 2,406 — — 2,406 Total assets measured on a nonrecurring basis $ 133,609 $ — $ 59,461 $ 74,148 |
Summary of Significant Unobservable Inputs Used in Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on a Nonrecurring Basis | Significant unobservable inputs used in Level 3 fair value measurements for financial assets measured at fair value on a nonrecurring basis are summarized below: Quantitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Value Valuation Methods Unobservable Inputs Range December 31, 2019 Impaired loans, net of specific allowance $ 101,561 Appraised value, as adjusted Discount to fair value 0% - 50% Appraised value, as adjusted Minimum guaranteed proceeds per Settlement Agreement 0% (1) Discounted cash flow Discount rate 5.8% 0% (1) Enterprise value Exit and earnings multiples, discounted cash flows, and market comparables 0% - 46% (1) Other real estate 1,628 Appraised value, as adjusted Discount to fair value 0% - 20% Estimated closing costs 10% (1) - Represents difference of remaining balance to fair value. Quantitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Value Valuation Methods Unobservable Inputs Range December 31, 2018 Impaired loans, net of specific allowance $ 71,742 Appraised value, as adjusted Discount to fair value 0% - 20% Discounted cash flow Net recoverable oil and gas reserves and forward-looking commodity prices. Discount rate - 10% 0% - 10% (1) Discounted cash flow Discount rates 2.9% to 8.7% 0% - 20% (1) Enterprise value Exit multiples 0%-15% (1) Estimated closing costs 10% Other real estate 2,406 Appraised value, as adjusted Discount to fair value 0% - 20% Estimated closing costs 10% (1) - Represents difference of remaining balance to fair value. |
Summary of Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments are as follows: December 31, 2019 (In thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 252,447 $ 252,447 $ 252,447 $ — $ — Interest-bearing deposits in other banks 725,343 725,343 725,343 — — Federal funds sold 10,974 10,974 10,974 — — Investment securities available-for-sale 2,368,592 2,368,592 — 2,368,592 — Equity securities with readily determinable fair values not held for trading 1,862 1,862 1,862 — — Loans held for sale 87,649 87,649 — 87,649 — Net loans 12,864,012 12,755,360 — — 12,755,360 Derivative assets 257,137 257,137 — 257,137 — Other assets 72,719 72,719 — — 72,719 Financial Liabilities: Deposits 14,742,794 14,753,192 — 14,753,192 — Advances from FHLB 100,000 100,000 — 100,000 — Senior debt 49,938 51,202 — 51,202 — Subordinated debt 182,712 189,386 — 189,386 — Junior subordinated debentures 37,445 48,012 — 48,012 — Notes payable 2,078 2,078 — 2,078 — Derivative liabilities 11,211 11,211 — 11,211 — December 31, 2018 (In thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Financial Assets: Cash and due from banks $ 237,342 $ 237,342 $ 237,342 $ — $ — Interest-bearing deposits in other banks 523,436 523,436 523,436 — — Federal funds sold 18,502 18,502 18,502 — — Investment securities available-for-sale 1,187,252 1,187,252 — 1,187,252 — Equity securities with readily determinable fair values not held for trading 5,840 5,840 5,840 — — Loans held for sale 59,461 59,461 — 59,461 — Net loans 9,959,545 9,735,130 — — 9,735,130 Derivative assets 11,136 11,136 — 11,136 — Other assets 42,696 42,696 — — 42,696 Financial Liabilities: Deposits 10,708,689 10,700,350 — 10,700,350 — Advances from FHLB 150,000 150,000 — 150,000 — Securities sold under agreements to repurchase 1,106 1,106 — 1,106 — Senior debt 184,801 194,762 — 194,762 — Subordinated debt 98,910 103,008 — 103,008 — Junior subordinated debentures 36,953 46,946 — 46,946 — Derivative liabilities 32,350 32,350 — 32,350 — |
Variable Interest Entities an_2
Variable Interest Entities and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Variable Interest Entities And Other Investments [Abstract] | |
Summary of Investment in Limited Partnerships | The following table presents a summary of the Company’s investments in limited partnerships as of December 31, 2019 and 2018: (In thousands) December 31, 2019 December 31, 2018 Affordable housing projects (amortized cost) $ 28,205 $ 7,803 Limited partnerships accounted for under the fair value practical expedient of NAV 18,742 11,191 Limited partnerships without readily determinable fair values that do not qualify for the practical expedient of NAV accounted for under the cost method 8,681 8,714 Limited partnerships required to be accounted for under the equity method 8,951 9,209 Total investments in limited partnerships $ 64,579 $ 36,917 |
Summary of Carrying Amount of Equity Investments Measured Under Measurement Alternative | The carrying amount of equity investments measured under the measurement alternative are as follows: For the Years Ended (In thousands) December 31, 2019 December 31, 2018 Carrying value, Beginning of Year $ 8,714 $ 8,856 Reclassifications (140 ) — Distributions (1,758 ) (1,109 ) Contributions 1,865 967 Carrying value, End of Year $ 8,681 $ 8,714 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Operating Results of Segments | The following tables present the operating results of the segments as of and for the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 669,878 $ (2,156 ) $ (16,549 ) $ 651,173 Provision for credit losses 111,027 — — 111,027 Noninterest income 88,098 41,580 1,247 130,925 Noninterest expense 361,874 34,281 12,615 408,770 Income tax expense (benefit) 66,090 714 (6,461 ) 60,343 Net income (loss) $ 218,985 $ 4,429 $ (21,456 ) $ 201,958 Total assets $ 17,685,272 $ 107,772 $ 7,185 $ 17,800,229 Year Ended December 31, 2018 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 407,674 $ (2,307 ) $ (17,626 ) $ 387,741 Provision for credit losses 12,700 — — 12,700 Noninterest income 47,316 46,805 517 94,638 Noninterest expense 215,574 35,679 7,048 258,301 Income tax expense (benefit) 52,464 3,979 (11,326 ) 45,117 Net income (loss) $ 174,252 $ 4,840 $ (12,831 ) $ 166,261 Total assets $ 12,622,287 $ 94,618 $ 13,380 $ 12,730,285 Year Ended December 31, 2017 (In thousands) Banking Financial Services Corporate Consolidated Net interest income (expense) $ 344,987 $ (1,347 ) $ (17,424 ) $ 326,216 Provision for credit losses 9,735 — — 9,735 Noninterest income 51,286 47,956 632 99,874 Noninterest expense 194,212 36,178 2,966 233,356 Income tax expense (benefit) 88,417 2,000 (9,771 ) 80,646 Net income (loss) $ 103,909 $ 8,431 $ (9,987 ) $ 102,353 Total assets $ 10,854,206 $ 90,639 $ 4,081 $ 10,948,926 |
Equity-based Compensation (Tabl
Equity-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Activity Related to Restricted Stock Unit Awards | For the Year Ended December 31, 2019 2018 2017 Number of Shares Weighted Average Fair Value per Unit at Award Date Number of Shares Weighted Average Fair Value per Unit at Award Date Number of Shares Weighted Average Fair Value per Unit at Award Date Non-vested at beginning of period 275,744 $ 26.49 672,750 $ 5.14 672,750 $ 5.14 Granted during the period 1,173,860 18.52 276,451 26.49 — — Vested during the period (153,756 ) 20.30 — — — — Forfeited during the period (65,985 ) 20.50 (707 ) 26.50 — — Expired during the period — — (672,750 ) 5.14 — — Non-vested at end of period 1,229,863 $ 19.97 275,744 $ 26.49 672,750 $ 5.14 |
Summary of Weighted-Average Assumptions Used For Option Awards Issued, Uses Black-Scholes Option Pricing Model | The Company uses the Black-Scholes option pricing model to estimate the fair value of the stock options. The following weighted-average assumptions were used for stock option awards issued during the year ended December 31, 2019: Expected dividends 3.1 % Expected volatility 25.2 % Risk-free interest rate 2.5 % Expected term (in years) 4.5 Weighted-average grant date fair value $ 2.32 |
Condensed Financial Informati_2
Condensed Financial Information of Cadence Bancorporation (Parent Only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure Abstract | |
Schedule Of Condensed Financial Statements | Condensed Balance Sheets December 31, 2019 and 2018 (In thousands) 2019 2018 ASSETS Cash and due from banks $ 1 $ 985 Interest-bearing deposits with banks 51,536 114,871 Investment in bank subsidiary 2,628,739 1,593,469 Investment in nonbank subsidiary 15,042 16,787 Other assets 17,841 15,126 Total Assets $ 2,713,159 $ 1,741,238 LIABILITIES AND SHAREHOLDER’S EQUITY Liabilities: Interest payable $ 816 $ 818 Senior debt 49,938 184,801 Subordinated debt 157,916 74,158 Junior subordinated debentures 37,445 36,953 Other liabilities 6,198 6,234 Total liabilities 252,313 302,964 Shareholder’s Equity: Common stock 1,330 836 Additional paid-in capital 1,873,063 1,041,000 Treasury stock (100,752 ) (22,010 ) Retained earnings 572,503 461,360 Accumulated other comprehensive income (loss) 114,702 (42,912 ) Total Shareholders' Equity 2,460,846 1,438,274 Total Liabilities and Shareholders' Equity $ 2,713,159 $ 1,741,238 Condensed Statements of Income For the Years Ended December 31, 2019, 2018, and 2017 (In thousands) 2019 2018 2017 INCOME Dividends from bank subsidiary $ 130,909 $ 59,494 $ 11,000 Interest income 23 73 65 Other income 1,248 516 632 Total income 132,180 60,083 11,697 EXPENSES Interest expense 16,538 17,626 17,424 Other expenses 12,615 7,048 3,305 Total expenses 29,153 24,674 20,729 Income (loss) before income taxes and equity in undistributed income of subsidiaries 103,027 35,409 (9,032 ) Equity in undistributed income of subsidiaries 92,288 125,727 103,390 Net income before income taxes 195,315 161,136 94,358 Income tax benefit (6,643 ) (5,125 ) (7,995 ) Net income $ 201,958 $ 166,261 $ 102,353 Condensed Statements of Cash Flows For the Years Ended December 31, 2019, 2018, and 2017 (In thousands) 2019 2018 2017 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 201,958 $ 166,261 $ 102,353 Adjustments to reconcile net income to net cash provided in operations: Deferred income tax expense 1,572 358 1,084 Equity in undistributed income of subsidiaries (92,288 ) (125,727 ) (103,390 ) Decrease (increase) in other assets 5,836 (10,143 ) 3,892 Loss on sale of securities 15 — — (Decrease) increase in other liabilities (13,860 ) 2,156 894 Other, net 99 — — Net cash provided by operating activities 103,332 32,905 4,833 CASH FLOWS FROM INVESTING ACTIVITIES Capital contributions to bank subsidiary — — (50,000 ) Cash received in business combination 47,233 — — Decrease (increase) in limited partnership investments 603 (125 ) (63 ) Proceeds from sale of securities 5,707 — — Net cash provided by (used in) investing activities 53,543 (125 ) (50,063 ) CASH FLOWS FROM FINANCING ACTIVITIES Purchase of senior debt (134,922 ) — (9,600 ) Issuance of subordinated debentures 83,474 — - Proceeds from issuance of common stock 68 — 155,581 Cash dividends paid on common stock (90,095 ) (45,995 ) — Repurchase of common stock (79,123 ) (22,010 ) — Other, net (596 ) — — Net cash (used in) provided by financing activities (221,194 ) (68,005 ) 145,981 Net (decrease) increase in cash and cash equivalents (64,319 ) (35,225 ) 100,751 Cash and cash equivalents at beginning of year 115,856 151,081 50,330 Cash and cash equivalents at end of year $ 51,537 $ 115,856 $ 151,081 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Activity within the balances in accumulated other comprehensive income (loss) is shown in the following tables for each of the years in the period ended December 31, 2019. (In thousands) Unrealized gains (losses) on securities available-for-sale Unrealized gains (losses) on derivative instruments designated as cash flow hedges Unrealized gains (losses) on defined benefit pension plans Accumulated other comprehensive gain (loss) Balance at December 31, 2016 $ (21,819 ) $ (10,212 ) $ (500 ) $ (32,531 ) Period change 21,605 (2,982 ) 121 18,744 Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) (1,946 ) (3,148 ) (152 ) (5,246 ) Balance at December 31, 2017 (2,160 ) (16,342 ) (531 ) (19,033 ) Net change (22,119 ) (1,963 ) 203 (23,879 ) Balance at December 31, 2018 (24,279 ) (18,305 ) (328 ) (42,912 ) Net change 43,884 113,402 328 157,614 Balance at December 31, 2019 $ 19,605 $ 95,097 $ — $ 114,702 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of the quarterly results of operations for the years ended December 31, 2019 and 2018: Three Months Ended, (In thousands, except per share data) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Interest income $ 207,618 $ 213,149 $ 217,124 $ 222,185 Interest expense 46,709 52,962 56,337 52,896 Net interest income 160,909 160,187 160,787 169,289 Provision for credit losses 27,126 43,764 28,927 11,210 Noninterest income (1) 33,898 34,642 31,722 30,664 Noninterest expense 100,518 94,283 100,529 113,440 Income before income taxes 67,163 56,782 63,053 75,303 Provision for income taxes 15,738 12,796 14,707 17,102 Net income $ 51,425 $ 43,986 $ 48,346 $ 58,201 Earnings per common share (Basic) $ 0.40 $ 0.34 $ 0.37 $ 0.44 Earnings per common share (Diluted) 0.40 0.34 0.37 0.44 Three Months Ended, (In thousands, except per share data) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Interest income $ 143,857 $ 131,753 $ 123,963 $ 113,093 Interest expense 40,711 33,653 28,579 21,982 Net interest income 103,146 98,100 95,384 91,111 Provision for credit losses 8,422 (1,365 ) 1,263 4,380 Noninterest income (2) 21,007 23,976 24,672 24,983 Noninterest expense 72,696 61,231 62,435 61,939 Income before income taxes 43,035 62,210 56,358 49,775 Provision for income taxes 10,709 15,074 8,384 10,950 Net income $ 32,326 $ 47,136 $ 47,974 $ 38,825 Earnings per common share (Basic) $ 0.39 $ 0.56 $ 0.57 $ 0.46 Earnings per common share (Diluted) 0.39 0.56 0.57 0.46 (1 ) (2) Includes net securities gains (losses) of $(54) thousand, $2 thousand, $(1.8) million and $12 thousand during the fourth, third, second and first quarters of 2018, respectively. |
Summary of Accounting Policie_2
Summary of Accounting Policies - Additional Information (Details) - USD ($) | Jun. 01, 2018 | May 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 |
Significant Of Accounting Policies [Line Items] | |||||||
Held to maturity securities | $ 0 | $ 0 | |||||
Trading Securities | 0 | 0 | |||||
Reserve for unfunded commitments, Amount | 1,700,000 | 600,000 | |||||
Total OREO | 1,600,000 | 2,400,000 | |||||
Goodwill impairment | 0 | 0 | $ 0 | ||||
Expense under cash based long term incentive plan | 2,100,000 | $ 6,000,000 | 7,300,000 | ||||
Right-of-use asset | 66,100,000 | ||||||
Lease liability | $ 77,382,000 | ||||||
ASU 2016-02 | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Right-of-use asset | $ 79,991,000 | ||||||
Lease liability | $ 92,268,000 | ||||||
ASU 2016-13 | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Maximum percentage increase of allowance for credit losses on loans | 65.00% | ||||||
2018 Employee Stock Purchase Plan | Common Class A | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Percentage of discount on fair market value of common stock | 15.00% | 15.00% | |||||
Executives And Senior Officers | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Percentage of base deferred compensation | 25.00% | ||||||
Percentage of incentive compensation | 100.00% | ||||||
Employee Contribution | $ 0 | $ 0 | $ 0 | ||||
401 K Plan | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Retained earning contribution | 100.00% | ||||||
Employer match 100% up to 5% Of Employee Compensation | 401 K Plan | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Defined contribution plan percentage | 100.00% | ||||||
Maximum | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Federal funds sold periods | 7 days | ||||||
Maximum | Employer match 100% up to 5% Of Employee Compensation | 401 K Plan | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Employee contribution percentage | 5.00% | ||||||
Minimum | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Federal funds sold periods | 1 day | ||||||
Subsidiaries | Town & Country Insurance Agency, Inc. | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Sale of net assets | $ 11,100,000 | ||||||
Subsidiaries | Town & Country Insurance Agency, Inc. | Noninterest Income | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Sale of assets, pre-tax gain | $ 4,900,000 | ||||||
Subsidiaries | Town & Country Insurance Agency, Inc. | Noninterest expenses | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Sale related expenses | $ 1,100,000 | ||||||
Subsidiaries | Town & Country Insurance Agency, Inc. | Goodwill and Intangible Assets | |||||||
Significant Of Accounting Policies [Line Items] | |||||||
Sale of net assets | $ 10,900,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | Jul. 01, 2019USD ($) | Jan. 01, 2019USD ($)BranchLocationshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 485,336 | $ 307,083 | |||
Discount on acquired non-credit impaired loans | 73,968 | 35,194 | |||
Unfunded commitments | 44,900 | 37,500 | |||
Merger related costs | 3,000 | ||||
Banking Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 442,579 | 266,922 | |||
State Bank Financial Corporation | |||||
Business Acquisition [Line Items] | |||||
Shares issued for business acquisition | shares | 49,232,008 | ||||
Purchase price consideration | $ 826,400 | ||||
Value of common stock in purchase price | 826,113 | ||||
Fair value of unexercised warrants | 267 | ||||
Loans added in acquisition | 3,317,897 | 3,500,000 | |||
Deposits added in acquisition | 4,096,665 | 4,100,000 | |||
Goodwill | 175,657 | ||||
Fair value of acquired non-credit impaired (“ANCI”) loans acquired | 3,200,000 | ||||
Discount on acquired non-credit impaired loans | 83,800 | ||||
Contractual amounts receivable of ANCI loans | 3,900,000 | ||||
Contractual cash flows not expected to be collected | 200,000 | ||||
Unfunded commitments | 26,800 | ||||
Merger related costs | 28,000 | $ 29,900 | |||
Purchase consideration paid | 826,380 | ||||
Recognized provisional identifiable intangible assets with an estimated fair value | $ 117,038 | ||||
State Bank Financial Corporation | Certificates of Deposit | |||||
Business Acquisition [Line Items] | |||||
Estimated useful life | 12 months | ||||
Discount on transaction of certificates of deposit | $ 3,400 | ||||
State Bank Financial Corporation | Banking Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 175,700 | ||||
State Bank Financial Corporation | Core Deposit | |||||
Business Acquisition [Line Items] | |||||
Intangible assets recognized | $ 111,900 | ||||
Estimated useful life | 10 years | ||||
State Bank Financial Corporation | Customer Relationship | |||||
Business Acquisition [Line Items] | |||||
Intangible assets recognized | $ 3,700 | ||||
Estimated useful life | 10 years | ||||
State Bank Financial Corporation | Trademark | |||||
Business Acquisition [Line Items] | |||||
Intangible assets recognized | $ 1,400 | ||||
Estimated useful life | 20 years | ||||
State Bank Financial Corporation | Georgia | |||||
Business Acquisition [Line Items] | |||||
Number of branch locations | BranchLocation | 32 | ||||
State Bank Financial Corporation | Common Class A | |||||
Business Acquisition [Line Items] | |||||
Common stock in exchange for outstanding common shares | shares | 1.271 | ||||
Shares issued for business acquisition | shares | 49,200,000 | ||||
Wealth & Pension Services Group, Inc. | Linscomb & Williams, Inc. | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,600 | ||||
Merger related costs | $ 500 | ||||
Purchase consideration paid | 8,000 | ||||
Cash payments | 5,200 | ||||
Future cash payments to acquire certain assets and assume liabilities | $ 2,100 | ||||
Term of future cash payments | 5 years | ||||
Recognized provisional identifiable intangible assets with an estimated fair value | $ 5,100 | ||||
Wealth & Pension Services Group, Inc. | Linscomb & Williams, Inc. | Maximum | |||||
Business Acquisition [Line Items] | |||||
Estimated fair value finalization period | 1 year |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price Calculation as of Acquisition Date and Identifiable Assets Acquired and Liabilities Assumed at their Fair Values (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | |||
Goodwill | $ 485,336 | $ 307,083 | |
State Bank Financial Corporation | |||
Assets | |||
Cash and cash equivalents | $ 414,342 | ||
Investment securities available-for-sale | 667,865 | ||
Loans held for sale | 148,469 | ||
Loans | 3,317,897 | 3,500,000 | |
Premises and equipment | 65,646 | ||
Cash surrender value of life insurance | 69,252 | ||
Intangible assets | 117,038 | ||
Other assets | 47,146 | ||
Total assets acquired | 4,847,655 | ||
Liabilities | |||
Deposits | 4,096,665 | $ 4,100,000 | |
Short term borrowings | 23,899 | ||
Other liabilities | 76,368 | ||
Total liabilities assumed | 4,196,932 | ||
Net identifiable assets acquired over liabilities assumed | 650,723 | ||
Goodwill | 175,657 | ||
Net assets acquired over liabilities assumed | $ 826,380 | ||
Consideration: | |||
Cadence Bancorporation common shares issued | 49,232,008 | ||
Fair value per share of the Company's common stock | $ 16.78 | ||
Company common stock issued | $ 826,113 | ||
Fair value of unexercised warrants | 267 | ||
Fair value of total consideration transferred | $ 826,380 |
Business Combinations - Schedul
Business Combinations - Schedule of Changes in Estimated Fair Value of Acquired Asset or Liability in Consolidated Balance Sheet (Details) - State Bank Financial Corporation - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Business Acquisition [Line Items] | ||
Fair Value of Acquired Asset or Liability, Loans | $ 3,500,000 | $ 3,317,897 |
Fair Value of Acquired Asset or Liability, Current and deferred taxes | 6,026 | |
Fair Value of Acquired Asset or Liability, Other liabilities | 76,368 | |
Provisional Estimate | ||
Business Acquisition [Line Items] | ||
Fair Value of Acquired Asset or Liability, Loans | 3,324,056 | |
Fair Value of Acquired Asset or Liability, Current and deferred taxes | 2,125 | |
Fair Value of Acquired Asset or Liability, Other liabilities | 76,278 | |
Increase (Decrease) | ||
Business Acquisition [Line Items] | ||
Fair Value of Acquired Asset or Liability, Loans | (6,159) | |
Fair Value of Acquired Asset or Liability, Current and deferred taxes | 3,901 | |
Fair Value of Acquired Asset or Liability, Other liabilities | $ 90 |
Business Combinations - Informa
Business Combinations - Information about ACI Loans Acquired in Merger as of Acquisition Date (Details) - State Bank Financial Corporation - ACI Loans $ in Thousands | Jan. 01, 2019USD ($) |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | $ 143,283 |
Contractual cash flows not expected to be collected (nonaccretable difference) | 54,954 |
Expected cash flows at acquisition | 88,329 |
Accretable difference | 10,053 |
Basis in acquired loans at acquisition - estimated fair value | $ 78,276 |
Business Combinations - Sched_2
Business Combinations - Schedule of Proforma Information for the Results of Operations (Details) - State Bank Financial Corporation - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total revenues (net interest income and noninterest income) | $ 760,318 | $ 770,372 |
Net income | $ 185,452 | $ 262,029 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Estimated Fair Value of Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | $ 2,345,791 | $ 1,221,511 |
Securities available-for-sale, Gross Unrealized Gains | 28,270 | 1,658 |
Securities available-for-sale, Gross Unrealized Losses | 5,469 | 35,917 |
Securities available-for-sale, Estimated Fair Value | 2,368,592 | 1,187,252 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 100,413 | |
Securities available-for-sale, Gross Unrealized Losses | 3,628 | |
Securities available-for-sale, Estimated Fair Value | 96,785 | |
Obligations of U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 69,464 | 60,975 |
Securities available-for-sale, Gross Unrealized Gains | 57 | 316 |
Securities available-for-sale, Gross Unrealized Losses | 415 | 284 |
Securities available-for-sale, Estimated Fair Value | 69,106 | 61,007 |
Residential Pass-through | Guaranteed by GNMA | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 98,122 | 85,052 |
Securities available-for-sale, Gross Unrealized Gains | 1,205 | 146 |
Securities available-for-sale, Gross Unrealized Losses | 245 | 2,093 |
Securities available-for-sale, Estimated Fair Value | 99,082 | 83,105 |
Residential Pass-through | Issued by FNMA and FHLMC | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 1,423,771 | 594,874 |
Securities available-for-sale, Gross Unrealized Gains | 13,128 | 694 |
Securities available-for-sale, Gross Unrealized Losses | 1,402 | 10,367 |
Securities available-for-sale, Estimated Fair Value | 1,435,497 | 585,201 |
Other Residential Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 292,019 | 36,339 |
Securities available-for-sale, Gross Unrealized Gains | 4,197 | 8 |
Securities available-for-sale, Gross Unrealized Losses | 384 | 1,178 |
Securities available-for-sale, Estimated Fair Value | 295,832 | 35,169 |
Commercial Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 276,533 | 114,383 |
Securities available-for-sale, Gross Unrealized Gains | 2,448 | 287 |
Securities available-for-sale, Gross Unrealized Losses | 3,023 | 5,255 |
Securities available-for-sale, Estimated Fair Value | 275,958 | 109,415 |
Total MBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 2,090,445 | 830,648 |
Securities available-for-sale, Gross Unrealized Gains | 20,978 | 1,135 |
Securities available-for-sale, Gross Unrealized Losses | 5,054 | 18,893 |
Securities available-for-sale, Estimated Fair Value | 2,106,369 | 812,890 |
Obligations of States and Municipal Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available-for-sale, Amortized Cost | 185,882 | 229,475 |
Securities available-for-sale, Gross Unrealized Gains | 7,235 | 207 |
Securities available-for-sale, Gross Unrealized Losses | 13,112 | |
Securities available-for-sale, Estimated Fair Value | $ 193,117 | $ 216,570 |
Securities - Schedule of Contra
Securities - Schedule of Contractual Maturities of Securities Available-for-Sale (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Available-for-Sale, Due in one year or less, Amortized Cost | $ 15,768 |
Available-for-Sale, Due after one year through five years, Amortized Cost | 1,310 |
Available-for-Sale, Due after five years through ten years, Amortized Cost | 28,633 |
Available-for-Sale, Due after ten years, Amortized Cost | 209,635 |
Available-for-Sale, Mortgage-backed securities, Amortized Cost | 2,090,445 |
Available-for-Sale, Total, Amortized Cost | 2,345,791 |
Available-for-Sale, Due in one year or less, Estimated Fair Value | 15,816 |
Available-for-Sale, Due after one year through five years, Estimated Fair Value | 1,297 |
Available-for-Sale, Due after five years through ten years, Estimated Fair Value | 28,364 |
Available-for-Sale, Due after ten years, Estimated Fair Value | 216,746 |
Available-for-Sale, Mortgage-backed securities, Estimated Fair Value | 2,106,369 |
Available-for-Sale, Total, Estimated Fair Value | $ 2,368,592 |
Securities - Additional Informa
Securities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |||
Other-than-temporary impairment charges | $ | $ 0 | $ 0 | $ 0 |
Percentage of fair value of securities in investment portfolio reflect unrealized loss | 35.00% | 84.00% | |
Number of securities in a loss position for more than twelve months | Security | 23 | ||
Number of securities in a loss position for less than twelve months | Security | 61 | ||
Collateral Pledged | |||
Schedule Of Available For Sale Securities [Line Items] | |||
Carrying value of securities pledged | $ | $ 629,400,000 | $ 711,200,000 |
Securities - Summary of Proceed
Securities - Summary of Proceeds from Sales, Gross Gains, and Gross Losses on Sales of Securities Available for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |||||||||||
Gross realized gains | $ 3,536 | $ 816 | $ 167 | ||||||||
Gross realized losses | (1,518) | (2,669) | (313) | ||||||||
Realized gains (losses), net | $ 317 | $ 775 | $ 938 | $ (12) | $ (54) | $ 2 | $ (1,800) | $ 12 | 2,018 | (1,853) | (146) |
Proceeds from sales of securities available-for-sale | $ 393,716 | $ 268,799 | $ 161,401 |
Securities - Schedule of Securi
Securities - Schedule of Securities Classified as Available-for-Sale with Gross Unrealized Losses Aggregated by Category and Length of Time (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Losses less than 12 Months, Estimated Fair Value | $ 742,044 | $ 360,275 |
Losses less than 12 Months, Gross Unrealized Losses | 4,675 | 5,548 |
Losses more than 12 Months, Estimated Fair Value | 75,209 | 638,003 |
Losses more than 12 Months, Gross Unrealized Losses | 794 | 30,369 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Losses more than 12 Months, Estimated Fair Value | 96,785 | |
Losses more than 12 Months, Gross Unrealized Losses | 3,628 | |
Obligations of U.S. Government Agencies | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Losses less than 12 Months, Estimated Fair Value | 33,053 | 25,978 |
Losses less than 12 Months, Gross Unrealized Losses | 209 | 183 |
Losses more than 12 Months, Estimated Fair Value | 13,703 | 10,152 |
Losses more than 12 Months, Gross Unrealized Losses | 206 | 101 |
MBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Losses less than 12 Months, Estimated Fair Value | 708,991 | 259,794 |
Losses less than 12 Months, Gross Unrealized Losses | 4,466 | 2,864 |
Losses more than 12 Months, Estimated Fair Value | 61,506 | 405,974 |
Losses more than 12 Months, Gross Unrealized Losses | $ 588 | 16,029 |
Obligations of States and Municipal Subdivisions | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Losses less than 12 Months, Estimated Fair Value | 74,503 | |
Losses less than 12 Months, Gross Unrealized Losses | 2,501 | |
Losses more than 12 Months, Estimated Fair Value | 125,092 | |
Losses more than 12 Months, Gross Unrealized Losses | $ 10,611 |
Loans Held-for-Sale, Loans an_3
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Loans Held for Sale by Portfolio Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 87,649 | $ 59,461 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | 32,257 | 42,457 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | 49,109 | |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | 2,988 | $ 17,004 |
Small Business | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 3,295 |
Loans Held-for-Sale, Loans an_4
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | $ 13,057,623 | $ 10,089,117 | $ 8,279,778 |
Unearned discount and fees | (73,968) | (35,194) | |
Total (Net of unearned discount and fees) | 12,983,655 | 10,053,923 | |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 6,872,729 | 6,197,342 | 5,133,786 |
Commercial and Industrial | General C&I | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 3,979,193 | 3,275,362 | |
Commercial and Industrial | Energy Sector | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 1,427,832 | 1,285,775 | |
Commercial and Industrial | Restaurant Industry | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 993,397 | 1,096,366 | |
Commercial and Industrial | Healthcare | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 472,307 | 539,839 | |
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,772,672 | 1,330,739 | 1,158,401 |
Commercial Real Estate | Income Producing | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,517,707 | 1,266,791 | |
Commercial Real Estate | Land and Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 254,965 | 63,948 | |
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,677,985 | 2,294,753 | 1,765,736 |
Consumer | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,584,810 | 2,227,653 | |
Consumer | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 93,175 | 67,100 | |
Small Business Lending | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | $ 734,237 | $ 266,283 | $ 221,855 |
Loans Held-for-Sale, Loans an_5
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)TDR | Dec. 31, 2018USD ($)TDRCustomer | Dec. 31, 2017USD ($)TDR | |
Accounts Notes And Loans Receivable [Line Items] | |||
Purchase of loans | $ 0 | ||
Interest income recognized for impaired loans | 400,000 | $ 300,000 | $ 1,600,000 |
Contractual interest recognized on cash basis | $ 1,700,000 | $ 1,500,000 | |
Number of commercial lending customer | Customer | 1 | ||
Financing receivables combined recorded investments | $ 11,800,000 | ||
Number of TDRs experiencing payment default | TDR | 0 | ||
Recorded investment | $ 36,068,000 | $ 30,385,000 | $ 16,904,000 |
Number of TDRs | TDR | 9 | 6 | 6 |
ACI Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of TDRs experiencing payment default | TDR | 0 | 0 | 0 |
Recorded investment | $ 1,500,000 | ||
Number of TDRs | TDR | 1 | 0 | 0 |
Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Foreclosed residential properties | $ 200,000 | $ 1,000,000 | |
Residential Real Estate | Consumer Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Residential mortgage loans in process of foreclosure | 4,400,000 | 3,800,000 | |
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded investment | $ 739,000 | ||
Number of TDRs | TDR | 2 | ||
Consumer | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Purchase of loans | $ 214,000,000 | ||
Premium percentage of consumer residential real estate loans | 6.00% | ||
Consumer | Residential Real Estate | ANCI Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans evaluated and determined credit impaired | $ 0 | ||
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Charge-offs related loans modified into TDRs | $ 49,700,000 |
Loans Held-for-Sale, Loans an_6
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Balance at beginning of period | $ 94,378 | $ 87,576 | $ 94,378 | $ 87,576 | $ 82,268 | ||||||
Provision for loan losses | $ 27,126 | $ 43,764 | $ 28,927 | 11,210 | $ 8,422 | $ (1,365) | $ 1,263 | 4,380 | 111,027 | 12,700 | 9,735 |
Charge-offs | (87,001) | (8,045) | (6,871) | ||||||||
Recoveries | 1,239 | 2,147 | 2,444 | ||||||||
Balance at end of period | 119,643 | 94,378 | 119,643 | 94,378 | 87,576 | ||||||
Loans ending balance | 13,057,623 | 10,089,117 | 13,057,623 | 10,089,117 | 8,279,778 | ||||||
Commercial and Industrial | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Balance at beginning of period | 66,316 | 55,919 | 66,316 | 55,919 | 54,688 | ||||||
Provision for loan losses | 96,669 | 15,708 | 5,883 | ||||||||
Charge-offs | (79,590) | (6,709) | (5,645) | ||||||||
Recoveries | 914 | 1,398 | 993 | ||||||||
Balance at end of period | 84,309 | 66,316 | 84,309 | 66,316 | 55,919 | ||||||
Loans ending balance | 6,872,729 | 6,197,342 | 6,872,729 | 6,197,342 | 5,133,786 | ||||||
Commercial Real Estate | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Balance at beginning of period | 10,452 | 11,990 | 10,452 | 11,990 | 10,103 | ||||||
Provision for loan losses | 7,556 | (1,837) | 1,737 | ||||||||
Charge-offs | (3,970) | (2) | (93) | ||||||||
Recoveries | 55 | 301 | 243 | ||||||||
Balance at end of period | 14,093 | 10,452 | 14,093 | 10,452 | 11,990 | ||||||
Loans ending balance | 2,772,672 | 1,330,739 | 2,772,672 | 1,330,739 | 1,158,401 | ||||||
Consumer | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Balance at beginning of period | 13,703 | 14,983 | 13,703 | 14,983 | 13,265 | ||||||
Provision for loan losses | 3,259 | (900) | 1,746 | ||||||||
Charge-offs | (1,802) | (716) | (929) | ||||||||
Recoveries | 232 | 336 | 901 | ||||||||
Balance at end of period | 15,392 | 13,703 | 15,392 | 13,703 | 14,983 | ||||||
Loans ending balance | 2,677,985 | 2,294,753 | 2,677,985 | 2,294,753 | 1,765,736 | ||||||
Small Business Lending | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Balance at beginning of period | $ 3,907 | $ 4,684 | 3,907 | 4,684 | 4,212 | ||||||
Provision for loan losses | 3,543 | (271) | 369 | ||||||||
Charge-offs | (1,639) | (618) | (204) | ||||||||
Recoveries | 38 | 112 | 307 | ||||||||
Balance at end of period | 5,849 | 3,907 | 5,849 | 3,907 | 4,684 | ||||||
Loans ending balance | 734,237 | 266,283 | 734,237 | 266,283 | 221,855 | ||||||
ACI Loans | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 8,090 | 7,717 | 8,090 | 7,717 | 8,300 | ||||||
Allowance for credit losses, individually evaluated for impairment | 1,268 | 207 | 1,268 | 207 | 224 | ||||||
Loans collectively evaluated for impairment | 195,286 | 191,906 | 195,286 | 191,906 | 241,959 | ||||||
Loans individually evaluated for impairment | 33,348 | 11,369 | 33,348 | 11,369 | 18,601 | ||||||
Loans ending balance | 228,634 | 203,275 | 228,634 | 203,275 | |||||||
ACI Loans | Commercial and Industrial | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 58 | 58 | 5 | ||||||||
Allowance for credit losses, individually evaluated for impairment | 1,172 | 1,172 | |||||||||
Loans collectively evaluated for impairment | 15,602 | 13,018 | 15,602 | 13,018 | 19,486 | ||||||
Loans individually evaluated for impairment | 18,733 | 3,789 | 18,733 | 3,789 | 10,091 | ||||||
Loans ending balance | 34,335 | 16,807 | 34,335 | 16,807 | |||||||
ACI Loans | Commercial Real Estate | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 2,092 | 1,641 | 2,092 | 1,641 | 2,006 | ||||||
Allowance for credit losses, individually evaluated for impairment | 22 | 22 | 4 | ||||||||
Loans collectively evaluated for impairment | 67,087 | 58,171 | 67,087 | 58,171 | 71,675 | ||||||
Loans individually evaluated for impairment | 11,889 | 7,256 | 11,889 | 7,256 | 8,186 | ||||||
Loans ending balance | 78,976 | 65,427 | 78,976 | 65,427 | |||||||
ACI Loans | Consumer | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 5,998 | 6,018 | 5,998 | 6,018 | 6,289 | ||||||
Allowance for credit losses, individually evaluated for impairment | 74 | 207 | 74 | 207 | 220 | ||||||
Loans collectively evaluated for impairment | 100,436 | 120,717 | 100,436 | 120,717 | 150,798 | ||||||
Loans individually evaluated for impairment | 523 | 324 | 523 | 324 | 324 | ||||||
Loans ending balance | 100,959 | 121,041 | 100,959 | 121,041 | |||||||
ACI Loans | Small Business Lending | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Loans collectively evaluated for impairment | 12,161 | 12,161 | |||||||||
Loans individually evaluated for impairment | 2,203 | 2,203 | |||||||||
Loans ending balance | 14,364 | 14,364 | |||||||||
ANCI Loans | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 1,356 | 939 | 1,356 | 939 | 1,338 | ||||||
Allowance for credit losses, individually evaluated for impairment | 70 | 113 | 70 | 113 | 58 | ||||||
Loans collectively evaluated for impairment | 2,854,253 | 347,515 | 2,854,253 | 347,515 | 199,389 | ||||||
Loans individually evaluated for impairment | 6,017 | 1,817 | 6,017 | 1,817 | 1,892 | ||||||
ANCI Loans | Commercial and Industrial | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 439 | 293 | 439 | 293 | 864 | ||||||
Allowance for credit losses, individually evaluated for impairment | 23 | 23 | |||||||||
Loans collectively evaluated for impairment | 894,816 | 50,469 | 894,816 | 50,469 | 58,775 | ||||||
Loans individually evaluated for impairment | 3,217 | 3,217 | |||||||||
ANCI Loans | Commercial Real Estate | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 70 | 53 | 70 | 53 | 130 | ||||||
Loans collectively evaluated for impairment | 1,175,428 | 7,808 | 1,175,428 | 7,808 | 15,926 | ||||||
Loans individually evaluated for impairment | 1,174 | 1,174 | |||||||||
ANCI Loans | Consumer | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 690 | 535 | 690 | 535 | 49 | ||||||
Allowance for credit losses, individually evaluated for impairment | 7 | 6 | 7 | 6 | 36 | ||||||
Loans collectively evaluated for impairment | 409,920 | 280,776 | 409,920 | 280,776 | 113,357 | ||||||
Loans individually evaluated for impairment | 1,484 | 1,538 | 1,484 | 1,538 | 1,582 | ||||||
ANCI Loans | Small Business Lending | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 157 | 58 | 157 | 58 | 295 | ||||||
Allowance for credit losses, individually evaluated for impairment | 40 | 107 | 40 | 107 | 22 | ||||||
Loans collectively evaluated for impairment | 374,089 | 8,462 | 374,089 | 8,462 | 11,331 | ||||||
Loans individually evaluated for impairment | 142 | 279 | 142 | 279 | 310 | ||||||
Originated Loans | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 95,675 | 78,083 | 95,675 | 78,083 | 69,192 | ||||||
Allowance for credit losses, individually evaluated for impairment | 13,184 | 7,319 | 13,184 | 7,319 | 8,464 | ||||||
Loans collectively evaluated for impairment | 9,859,946 | 9,459,454 | 9,859,946 | 9,459,454 | 7,746,474 | ||||||
Loans individually evaluated for impairment | 108,773 | 77,056 | 108,773 | 77,056 | 71,463 | ||||||
Originated Loans | Commercial and Industrial | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 69,514 | 58,665 | 69,514 | 58,665 | 46,591 | ||||||
Allowance for credit losses, individually evaluated for impairment | 13,161 | 7,300 | 13,161 | 7,300 | 8,459 | ||||||
Loans collectively evaluated for impairment | 5,832,878 | 6,053,264 | 5,832,878 | 6,053,264 | 4,974,973 | ||||||
Loans individually evaluated for impairment | 107,483 | 76,802 | 107,483 | 76,802 | 70,461 | ||||||
Originated Loans | Commercial Real Estate | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 11,909 | 8,758 | 11,909 | 8,758 | 9,850 | ||||||
Loans collectively evaluated for impairment | 1,517,094 | 1,257,504 | 1,517,094 | 1,257,504 | 1,062,614 | ||||||
Originated Loans | Consumer | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 8,623 | 6,918 | 8,623 | 6,918 | 8,389 | ||||||
Allowance for credit losses, individually evaluated for impairment | 19 | 19 | |||||||||
Loans collectively evaluated for impairment | 2,164,490 | 1,891,144 | 2,164,490 | 1,891,144 | 1,499,260 | ||||||
Loans individually evaluated for impairment | 1,132 | 254 | 1,132 | 254 | 415 | ||||||
Originated Loans | Small Business Lending | |||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||
Allowance for credit losses, collectively evaluated for impairment | 5,629 | 3,742 | 5,629 | 3,742 | 4,362 | ||||||
Allowance for credit losses, individually evaluated for impairment | 23 | 23 | 5 | ||||||||
Loans collectively evaluated for impairment | 345,484 | $ 257,542 | 345,484 | $ 257,542 | 209,627 | ||||||
Loans individually evaluated for impairment | $ 158 | $ 158 | $ 587 |
Loans Held-for-Sale, Loans an_7
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | $ 38,950 | $ 22,251 |
Unpaid Principal Balance, With no related allowance for credit losses | 78,536 | 35,443 | |
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 34,614 | 20,713 | |
Undisbursed Commitments, With no related allowance for credit losses | 3,311 | 3,658 | |
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 75,865 | 56,953 |
Unpaid Principal Balance, With allowance for credit losses recorded | 96,268 | 58,374 | |
Related Specific Allowance, With allowance for credit losses recorded | 13,254 | 7,432 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 73,665 | 50,870 | |
Undisbursed Commitments, With allowance for credit losses recorded | 6,225 | 3,269 | |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 36,645 | 20,713 |
Unpaid Principal Balance, With no related allowance for credit losses | 75,741 | 33,908 | |
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 32,356 | 20,713 | |
Undisbursed Commitments, With no related allowance for credit losses | 3,311 | 3,658 | |
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 74,080 | 56,223 |
Unpaid Principal Balance, With allowance for credit losses recorded | 93,659 | 56,871 | |
Related Specific Allowance, With allowance for credit losses recorded | 13,184 | 7,300 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 73,076 | 50,641 | |
Undisbursed Commitments, With allowance for credit losses recorded | 6,225 | 3,259 | |
Commercial and Industrial | General C&I | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 13,981 | |
Unpaid Principal Balance, With no related allowance for credit losses | 19,241 | ||
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 9,692 | ||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 37,156 | 28,684 |
Unpaid Principal Balance, With allowance for credit losses recorded | 38,558 | 28,677 | |
Related Specific Allowance, With allowance for credit losses recorded | 7,272 | 3,559 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 37,156 | 24,103 | |
Undisbursed Commitments, With allowance for credit losses recorded | 555 | 930 | |
Commercial and Industrial | Energy Sector | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 2,184 | 20,713 |
Unpaid Principal Balance, With no related allowance for credit losses | 20,714 | 33,908 | |
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 2,184 | 20,713 | |
Undisbursed Commitments, With no related allowance for credit losses | 250 | 3,658 | |
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 8,603 | |
Unpaid Principal Balance, With allowance for credit losses recorded | 19,815 | ||
Related Specific Allowance, With allowance for credit losses recorded | 2,755 | ||
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 7,599 | ||
Commercial and Industrial | Restaurant Industry | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 16,710 | |
Unpaid Principal Balance, With no related allowance for credit losses | 31,702 | ||
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 16,710 | ||
Undisbursed Commitments, With no related allowance for credit losses | 3,061 | ||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 28,321 | 23,043 |
Unpaid Principal Balance, With allowance for credit losses recorded | 35,286 | 23,698 | |
Related Specific Allowance, With allowance for credit losses recorded | 3,157 | 3,485 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 28,321 | 22,042 | |
Undisbursed Commitments, With allowance for credit losses recorded | 5,670 | 2,329 | |
Commercial and Industrial | Healthcare | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 3,770 | |
Unpaid Principal Balance, With no related allowance for credit losses | 4,084 | ||
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 3,770 | ||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 4,496 | |
Unpaid Principal Balance, With allowance for credit losses recorded | 4,496 | ||
Related Specific Allowance, With allowance for credit losses recorded | 256 | ||
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 4,496 | ||
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 1,174 | |
Unpaid Principal Balance, With no related allowance for credit losses | 1,648 | ||
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 1,127 | ||
Commercial Real Estate | Income Producing | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 1,174 | |
Unpaid Principal Balance, With no related allowance for credit losses | 1,648 | ||
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 1,127 | ||
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 1,131 | 1,538 |
Unpaid Principal Balance, With no related allowance for credit losses | 1,147 | 1,535 | |
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 1,131 | ||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 1,485 | 254 |
Unpaid Principal Balance, With allowance for credit losses recorded | 1,484 | 254 | |
Related Specific Allowance, With allowance for credit losses recorded | 7 | 25 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 447 | ||
Consumer | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With no related allowance for credit losses | [1] | 1,131 | 1,538 |
Unpaid Principal Balance, With no related allowance for credit losses | 1,147 | 1,535 | |
Nonaccrual Loans Included in Impaired Loans, with no related allowance for credit losses | 1,131 | ||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 1,485 | |
Unpaid Principal Balance, With allowance for credit losses recorded | 1,484 | ||
Related Specific Allowance, With allowance for credit losses recorded | 7 | ||
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | 447 | ||
Consumer | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 254 | |
Unpaid Principal Balance, With allowance for credit losses recorded | 254 | ||
Related Specific Allowance, With allowance for credit losses recorded | 25 | ||
Small Business Lending | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Recorded Investment in Impaired Loans, With allowance for credit losses recorded | [1] | 300 | 476 |
Unpaid Principal Balance, With allowance for credit losses recorded | 1,125 | 1,249 | |
Related Specific Allowance, With allowance for credit losses recorded | 63 | 107 | |
Nonaccrual Loans Included in Impaired Loans, With allowance for credit losses recorded | $ 142 | 229 | |
Undisbursed Commitments, With allowance for credit losses recorded | $ 10 | ||
[1] | The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. |
Loans Held-for-Sale, Loans an_8
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Average Recorded Investment in Impaired Originated and ANCI Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | $ 99,515 | $ 58,196 | $ 122,297 |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 96,528 | 55,906 | 119,540 |
Commercial and Industrial | General C&I | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 41,217 | 10,834 | 8,586 |
Commercial and Industrial | Energy Sector | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 17,075 | 27,348 | 108,751 |
Commercial and Industrial | Restaurant Industry | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 34,039 | 16,600 | 2,203 |
Commercial and Industrial | Healthcare | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 4,197 | 1,124 | |
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 478 | ||
Commercial Real Estate | Income Producing | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 478 | ||
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 2,124 | 1,870 | 1,812 |
Consumer | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 1,971 | 1,557 | 1,426 |
Consumer | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | 153 | 313 | 386 |
Small Business Lending | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Average recorded investment | $ 385 | $ 420 | $ 945 |
Loans Held-for-Sale, Loans an_9
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Originated and ANCI Loans that Were Modified Into TDRs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)TDR | Dec. 31, 2018USD ($)TDR | Dec. 31, 2017USD ($)TDR | |
Financing Receivable Modifications [Line Items] | |||
Number of TDRs | TDR | 9 | 6 | 6 |
Recorded Investment | $ | $ 36,068 | $ 30,385 | $ 16,904 |
Commercial and Industrial | |||
Financing Receivable Modifications [Line Items] | |||
Number of TDRs | TDR | 9 | 4 | 3 |
Recorded Investment | $ | $ 36,068 | $ 30,244 | $ 16,027 |
Consumer | |||
Financing Receivable Modifications [Line Items] | |||
Number of TDRs | TDR | 2 | ||
Recorded Investment | $ | $ 739 | ||
Small Business Lending | |||
Financing Receivable Modifications [Line Items] | |||
Number of TDRs | TDR | 2 | 1 | |
Recorded Investment | $ | $ 141 | $ 138 |
Loans Held-for-Sale, Loans a_10
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Schedule of Number of Loans Modified (Details) - TDR | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 9 | 6 | 6 |
Rate Concession | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | 3 | |
Modified Terms and/or Other Concessions | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 9 | 4 | 3 |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 9 | 4 | 3 |
Commercial and Industrial | Rate Concession | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | ||
Commercial and Industrial | Modified Terms and/or Other Concessions | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 9 | 4 | 1 |
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | ||
Consumer | Modified Terms and/or Other Concessions | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | ||
Small Business Lending | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | 1 | |
Small Business Lending | Rate Concession | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Loans Modified | 2 | 1 |
Loans Held-for-Sale, Loans a_11
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Credit Exposure in Originated and ANCI Loan Portfolios (Details) - Originated and Acquired Non Credit Impaired Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | $ 566,620 | $ 249,133 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 254,688 | 111,625 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 297,226 | 123,022 |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 14,706 | 14,486 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 499,565 | 242,048 |
Commercial and Industrial | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 269,594 | 154,407 |
Commercial and Industrial | Restaurant Industry | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 108,145 | 50,620 |
Commercial and Industrial | Energy Sector | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 95,428 | 32,525 |
Commercial and Industrial | Healthcare | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 26,398 | 4,496 |
Commercial and Industrial | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 204,112 | 110,853 |
Commercial and Industrial | Special Mention | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 70,007 | 74,592 |
Commercial and Industrial | Special Mention | Restaurant Industry | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 45,456 | 24,449 |
Commercial and Industrial | Special Mention | Energy Sector | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 66,235 | 11,812 |
Commercial and Industrial | Special Mention | Healthcare | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 22,414 | |
Commercial and Industrial | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 280,747 | 116,709 |
Commercial and Industrial | Substandard | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 192,332 | 79,815 |
Commercial and Industrial | Substandard | Restaurant Industry | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 57,992 | 26,171 |
Commercial and Industrial | Substandard | Energy Sector | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 26,439 | 6,227 |
Commercial and Industrial | Substandard | Healthcare | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 3,984 | 4,496 |
Commercial and Industrial | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 14,706 | 14,486 |
Commercial and Industrial | Doubtful | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 7,255 | |
Commercial and Industrial | Doubtful | Restaurant Industry | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 4,697 | |
Commercial and Industrial | Doubtful | Energy Sector | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 2,754 | 14,486 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 46,248 | 985 |
Commercial Real Estate | Income Producing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 37,423 | |
Commercial Real Estate | Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 8,825 | 985 |
Commercial Real Estate | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 44,531 | |
Commercial Real Estate | Special Mention | Income Producing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 35,706 | |
Commercial Real Estate | Special Mention | Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 8,825 | |
Commercial Real Estate | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 1,717 | 985 |
Commercial Real Estate | Substandard | Income Producing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 1,717 | |
Commercial Real Estate | Substandard | Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 985 | |
Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 8,037 | 3,315 |
Consumer | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 7,982 | 3,315 |
Consumer | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 55 | |
Consumer | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 8,037 | 3,315 |
Consumer | Substandard | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 7,982 | 3,315 |
Consumer | Substandard | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 55 | |
Small Business Lending | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 12,770 | 2,785 |
Small Business Lending | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 6,045 | 772 |
Small Business Lending | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | $ 6,725 | $ 2,013 |
Loans Held-for-Sale, Loans a_12
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Aging of Past Due Originated and ANCI Loans by Portfolio Segment and Class of Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | $ 11,882 | $ 1,913 |
Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4,036 | 513 |
Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 945 | 760 |
Non-Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 21,773 | 356 |
Non-Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,787 | 99 |
Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 24,451 | 1,479 |
Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 70,348 | 72,305 |
Commercial and Industrial | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 210 | 120 |
Commercial and Industrial | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 540 | |
Commercial and Industrial | Non-Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 21,193 | 176 |
Commercial and Industrial | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 16,636 | |
Commercial and Industrial | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 67,778 | 71,179 |
Commercial and Industrial | General C&I | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 210 | 120 |
Commercial and Industrial | General C&I | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 499 | |
Commercial and Industrial | General C&I | Non-Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 21,193 | 176 |
Commercial and Industrial | General C&I | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,033 | |
Commercial and Industrial | General C&I | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 24,622 | 23,928 |
Commercial and Industrial | Energy Sector | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 8,365 | |
Commercial and Industrial | Energy Sector | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,417 | 20,712 |
Commercial and Industrial | Restaurant Industry | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,468 | |
Commercial and Industrial | Restaurant Industry | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 41,566 | 22,043 |
Commercial and Industrial | Healthcare | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 41 | |
Commercial and Industrial | Healthcare | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,770 | |
Commercial and Industrial | Healthcare | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 173 | 4,496 |
Commercial Real Estate | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,325 | |
Commercial Real Estate | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 101 | 61 |
Commercial Real Estate | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,127 | |
Commercial Real Estate | Income Producing | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,325 | |
Commercial Real Estate | Income Producing | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 101 | |
Commercial Real Estate | Income Producing | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,127 | |
Commercial Real Estate | Land and Development | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 61 | |
Consumer | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 6,688 | 1,302 |
Consumer | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,741 | 427 |
Consumer | Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 747 | 760 |
Consumer | Accruing Loans | Residential Real Estate | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 6,501 | 1,275 |
Consumer | Accruing Loans | Residential Real Estate | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,713 | 315 |
Consumer | Accruing Loans | Residential Real Estate | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 707 | 760 |
Consumer | Accruing Loans | Other | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 187 | 27 |
Consumer | Accruing Loans | Other | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 28 | 112 |
Consumer | Accruing Loans | Other | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 40 | |
Consumer | Non-Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 183 | 151 |
Consumer | Non-Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,787 | 95 |
Consumer | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,400 | 1,429 |
Consumer | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,918 | 876 |
Consumer | Non-Accruing Loans | Residential Real Estate | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 183 | 151 |
Consumer | Non-Accruing Loans | Residential Real Estate | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,787 | 95 |
Consumer | Non-Accruing Loans | Residential Real Estate | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,385 | 1,429 |
Consumer | Non-Accruing Loans | Residential Real Estate | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 1,918 | 876 |
Consumer | Non-Accruing Loans | Other | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 15 | |
Small Business Lending | Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 2,659 | 491 |
Small Business Lending | Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 654 | 25 |
Small Business Lending | Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 198 | |
Small Business Lending | Non-Accruing Loans | 30-59 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 397 | 29 |
Small Business Lending | Non-Accruing Loans | 60-89 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 4 | |
Small Business Lending | Non-Accruing Loans | 90+DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | 3,288 | 50 |
Small Business Lending | Non-Accruing Loans | 0-29 DPD | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans Past Due | $ 652 | $ 250 |
Loans Held-for-Sale, Loans a_13
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Total Acquired Credit Impaired Loans Outstanding by Portfolio Segment and Class of Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | $ 13,057,623 | $ 10,089,117 | $ 8,279,778 |
ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 228,634 | 203,275 | |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 6,872,729 | 6,197,342 | 5,133,786 |
Commercial and Industrial | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 34,335 | 16,807 | |
Commercial and Industrial | General C&I | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 3,979,193 | 3,275,362 | |
Commercial and Industrial | General C&I | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 31,801 | 16,807 | |
Commercial and Industrial | Restaurant Industry | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 993,397 | 1,096,366 | |
Commercial and Industrial | Restaurant Industry | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,534 | ||
Commercial Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,772,672 | 1,330,739 | 1,158,401 |
Commercial Real Estate | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 78,976 | 65,427 | |
Commercial Real Estate | Income Producing | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,517,707 | 1,266,791 | |
Commercial Real Estate | Income Producing | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 66,775 | 65,427 | |
Commercial Real Estate | Land and Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 254,965 | 63,948 | |
Commercial Real Estate | Land and Development | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 12,201 | ||
Consumer | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,677,985 | 2,294,753 | 1,765,736 |
Consumer | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 2,584,810 | 2,227,653 | |
Consumer | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 93,175 | 67,100 | |
Consumer | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 100,959 | 121,041 | |
Consumer | ACI | Residential Real Estate | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 100,133 | 120,495 | |
Consumer | ACI | Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 826 | 546 | |
Small Business Lending | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | 734,237 | $ 266,283 | $ 221,855 |
Small Business Lending | ACI | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loan outstanding and financing receivable | $ 14,364 |
Loans Held-for-Sale, Loans a_14
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Changes in Accretable Discount for ACI Loans (Details) - ACI Loans - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Recorded Investment [Line Items] | |||
Balance at beginning of period | $ 67,405 | $ 78,422 | $ 98,728 |
Additions (See Note 2) | 10,053 | ||
Accretion | (29,927) | (19,813) | (23,303) |
Reclass from nonaccretable difference due to increases in expected cash flow | 14,298 | 16,765 | 14,075 |
Other changes, net | (2,282) | (7,969) | (11,078) |
Balance at end of period | $ 59,547 | $ 67,405 | $ 78,422 |
Loans Held-for-Sale, Loans a_15
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Individually Impaired ACI Loans and Pooled ACI Loans (Details) - ACI Loans and Pooled ACI Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable Impaired [Line Items] | |||
Recorded Investment in Impaired Loans | [1] | $ 117,744 | $ 94,418 |
Unpaid Principal Balance | 147,174 | 117,832 | |
Related Specific Allowance | 9,358 | 7,924 | |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment in Impaired Loans | [1] | 23,173 | 2,100 |
Unpaid Principal Balance | 31,813 | 2,331 | |
Related Specific Allowance | 1,172 | 58 | |
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment in Impaired Loans | [1] | 72,466 | 74,017 |
Unpaid Principal Balance | 93,058 | 97,613 | |
Related Specific Allowance | 2,114 | 1,641 | |
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Recorded Investment in Impaired Loans | [1] | 22,105 | 18,301 |
Unpaid Principal Balance | 22,303 | 17,888 | |
Related Specific Allowance | $ 6,072 | $ 6,225 | |
[1] | The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount. |
Loans Held-for-Sale, Loans a_16
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Credit Exposure in ACI Portfolio Segment and Class of Receivable (Details) - ACI Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | $ 1,402 | $ 1,722 |
Special Mention | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 51 | 426 |
Special Mention | Commercial and Industrial | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 51 | 426 |
Special Mention | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 671 | 1,207 |
Special Mention | Commercial Real Estate | Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 172 | |
Special Mention | Commercial Real Estate | Income Producing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 499 | 1,207 |
Special Mention | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 152 | 89 |
Special Mention | Consumer | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 152 | 89 |
Special Mention | Small Business Lending | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 528 | |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 36,128 | 8,970 |
Substandard | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 12,322 | 1,445 |
Substandard | Commercial and Industrial | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 11,755 | 1,445 |
Substandard | Commercial and Industrial | Restaurant Industry | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 567 | |
Substandard | Commercial Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 7,758 | 3,080 |
Substandard | Commercial Real Estate | Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 2,350 | |
Substandard | Commercial Real Estate | Income Producing | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 5,408 | 3,080 |
Substandard | Consumer | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 3,647 | 4,445 |
Substandard | Consumer | Residential Real Estate | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 3,621 | 4,442 |
Substandard | Consumer | Other | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 26 | 3 |
Substandard | Small Business Lending | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 12,401 | |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 936 | 39 |
Doubtful | Commercial and Industrial | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | 936 | 39 |
Doubtful | Commercial and Industrial | General C&I | ||
Financing Receivable Recorded Investment [Line Items] | ||
Recorded investment | $ 936 | $ 39 |
Loans Held-for-Sale, Loans a_17
Loans Held-for-Sale, Loans and Allowance for Credit Losses - Summary of Aging ACI Consumer loans, by Past Due Status (Details) - ACI Loans - Consumer - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Residential Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | $ 100,133 | $ 122,639 |
Residential Real Estate | 0-29 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 92,327 | 115,404 |
Residential Real Estate | 30-59 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 2,636 | 1,985 |
Residential Real Estate | 60-89 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 1,635 | 1,435 |
Residential Real Estate | Financing Receivables 90 to 119 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 372 | 217 |
Residential Real Estate | Financing Receivables 120 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 3,163 | 3,598 |
Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 826 | 939 |
Other | 0-29 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 553 | 845 |
Other | 30-59 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 62 | 91 |
Other | 60-89 DPD | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 52 | |
Other | Financing Receivables 90 to 119 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | 25 | $ 3 |
Other | Financing Receivables 120 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due | $ 134 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 186,805 | $ 111,862 | |
Less: Accumulated depreciation and amortization | (58,938) | (48,241) | |
Total premises and equipment, net | 127,867 | 63,621 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | 38,402 | 16,604 | |
Buildings, construction and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | [1] | $ 94,886 | 54,298 |
Buildings, construction and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Estimated Useful Life in Years | [1] | 2 years | |
Buildings, construction and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Estimated Useful Life in Years | [1] | 40 years | |
Land, Buildings and Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 133,288 | 70,902 | |
Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross premises and equipment | $ 53,517 | $ 40,960 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Estimated Useful Life in Years | 3 years | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Estimated Useful Life in Years | 10 years | ||
[1] | Leasehold improvements are depreciated over the lesser of the estimated useful life or the lease term. |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation expense | $ 11,700 | $ 7,600 | $ 7,100 |
Software amortization expense | 23,862 | 2,755 | 4,652 |
Software Costs | |||
Net Software cost included in other asset | 6,500 | 4,000 | |
Software Amortization | |||
Software amortization expense | $ 3,400 | $ 1,700 | $ 1,900 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Other Intangible Assets [Line Items] | ||
Goodwill | $ 485,336 | $ 307,083 |
Other intangible assets, net | 105,613 | 7,317 |
Total goodwill and intangible assets, net | 590,949 | 314,400 |
Core Deposit | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Other intangible assets, net | 90,788 | 301 |
Customer Lists | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Other intangible assets, net | 11,993 | 6,992 |
Noncompete Agreements | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Other intangible assets, net | 1,473 | |
Trademarks | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Other intangible assets, net | $ 1,359 | $ 24 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Core Deposit | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Accumulated amortization of intangible assets | $ 60,836 | $ 39,385 |
Customer Lists | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Accumulated amortization of intangible assets | 21,908 | 19,709 |
Noncompete Agreements | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Accumulated amortization of intangible assets | 137 | 0 |
Trademarks | ||
Goodwill And Other Intangible Assets [Line Items] | ||
Accumulated amortization of intangible assets | $ 75 | $ 0 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Summary of Changes to Carrying Amount of Goodwill by Segment (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill And Other Intangible Assets [Line Items] | |
Balance as of December 31, 2018 | $ 307,083 |
Balance as of December 31, 2019 | 485,336 |
State Bank Acquisition | |
Goodwill And Other Intangible Assets [Line Items] | |
State Bank acquisition | 175,657 |
Wealth & Pension Acquisition | |
Goodwill And Other Intangible Assets [Line Items] | |
State Bank acquisition | 2,596 |
Banking | |
Goodwill And Other Intangible Assets [Line Items] | |
Balance as of December 31, 2018 | 266,922 |
Balance as of December 31, 2019 | 442,579 |
Banking | State Bank Acquisition | |
Goodwill And Other Intangible Assets [Line Items] | |
State Bank acquisition | 175,657 |
Financial Services | |
Goodwill And Other Intangible Assets [Line Items] | |
Balance as of December 31, 2018 | 40,161 |
Balance as of December 31, 2019 | 42,757 |
Financial Services | Wealth & Pension Acquisition | |
Goodwill And Other Intangible Assets [Line Items] | |
State Bank acquisition | $ 2,596 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense for Core Deposit Intangibles Customer Relationships and Other Intangible Assets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 21,612 |
2021 | 19,093 |
2022 | 16,622 |
2023 | 14,150 |
2024 and thereafter | $ 34,112 |
Derivatives - Schedule of Notio
Derivatives - Schedule of Notional Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | |||
Notional Amount | $ 6,339,935 | $ 2,696,100 | |
Fair Value, Other Assets | 257,137 | 11,136 | |
Fair Value, Other Liabilities | 11,211 | 32,350 | |
Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | $ 4,000,000 | ||
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 4,350,000 | 650,000 | |
Fair Value, Other Assets | 239,213 | ||
Fair Value, Other Liabilities | 643 | 23,968 | |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Commercial Loans | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 350,000 | 650,000 | |
Fair Value, Other Liabilities | 643 | 23,968 | |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Commercial Loans | Interest Rate Collars | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 4,000,000 | ||
Fair Value, Other Assets | 239,213 | ||
Derivatives Not Designated as Hedging Instruments | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 1,989,935 | 2,046,100 | |
Fair Value, Other Assets | 17,924 | 11,136 | |
Fair Value, Other Liabilities | 10,568 | 8,382 | |
Derivatives Not Designated as Hedging Instruments | Mortgage Loan Held for Sale Interest Rate Lock Commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 4,138 | 5,286 | |
Fair Value, Other Assets | 22 | 72 | |
Derivatives Not Designated as Hedging Instruments | Mortgage Loan Held for Sale Floating Commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 1,523 | 14,690 | |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 74,322 | 46,971 | |
Fair Value, Other Assets | 379 | 698 | |
Fair Value, Other Liabilities | 558 | 683 | |
Derivatives Not Designated as Hedging Instruments | Commercial Loans | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 1,008,805 | 1,155,942 | |
Fair Value, Other Assets | 8,386 | 4,439 | |
Fair Value, Other Liabilities | 899 | 1,777 | |
Derivatives Not Designated as Hedging Instruments | Commercial Loans | Interest Rate Collars | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 75,555 | 80,000 | |
Fair Value, Other Assets | 257 | 96 | |
Fair Value, Other Liabilities | 257 | 96 | |
Derivatives Not Designated as Hedging Instruments | Commercial Loans | Interest Rate Caps | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 167,185 | 88,430 | |
Fair Value, Other Assets | 18 | 239 | |
Fair Value, Other Liabilities | 18 | 239 | |
Derivatives Not Designated as Hedging Instruments | Commercial Loans | Interest Rate Floors | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 654,298 | 652,822 | |
Fair Value, Other Assets | 8,836 | 5,587 | |
Fair Value, Other Liabilities | 8,836 | 5,587 | |
Derivatives Not Designated as Hedging Instruments | Forward Contracts | Mortgage Loan Forward Sale Commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 4,109 | 1,959 | |
Fair Value, Other Assets | $ 26 | $ 5 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | |||
Obligation to return cash collateral provided by counterparty | $ 240,900 | ||
Derivative, notional amount | 6,339,935 | $ 2,696,100 | |
Deferred net gains (loss) on derivatives | $ 27,000 | ||
Cash Flow Hedges | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ 4,000,000 | ||
Derivative contract term | 5 years | ||
Derivative, purchased option price | $ 127,800 | ||
Maximum period for hedging transactions | 6 years 2 months 12 days | ||
Cash Flow Hedges | Purchased | Interest Rate Collars | |||
Derivative [Line Items] | |||
Derivative cap interest rate | 4.70% | ||
Derivative floor interest rate | 3.00% | ||
Cash Flow Hedges | Sold | Interest Rate Collars | |||
Derivative [Line Items] | |||
Derivative cap interest rate | 3.50% | ||
Derivative floor interest rate | 0.00% | ||
Interest-bearing Deposits in Banks | |||
Derivative [Line Items] | |||
Cash or securities pledged as collateral | $ 10,600 | $ 25,300 |
Derivatives - Schedule of Gain
Derivatives - Schedule of Gain (Loss) in Consolidated Statements of Income Related to Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments Gain Loss [Line Items] | |||
Noninterest income | $ 27,000 | ||
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Commercial Loans | Interest Rate Swaps | |||
Derivative Instruments Gain Loss [Line Items] | |||
OCI | 18,654 | $ (7,711) | $ (1,426) |
Reclassified from AOCI to interest income | (4,670) | (5,164) | 3,705 |
Derivatives Designated as Hedging Instruments | Cash Flow Hedges | Commercial Loans | Interest Rate Collars | |||
Derivative Instruments Gain Loss [Line Items] | |||
OCI | 133,758 | ||
Reclassified from AOCI to interest income | 9,633 | ||
Derivatives Not Designated as Hedging Instruments | Mortgage Loan Held for Sale Interest Rate Lock Commitments | |||
Derivative Instruments Gain Loss [Line Items] | |||
Noninterest income | (49) | 22 | (39) |
Derivatives Not Designated as Hedging Instruments | Foreign Exchange Contracts | |||
Derivative Instruments Gain Loss [Line Items] | |||
Noninterest income | $ 3,813 | $ 2,222 | $ 2,271 |
Derivative - Schedule of Intere
Derivative - Schedule of Interest Rate Swap Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 6,339,935 | $ 2,696,100 |
1.5995% Interest Rate Swap | ||
Derivative [Line Items] | ||
Effective Date | Mar. 8, 2016 | |
Maturity Date | Feb. 27, 2026 | |
Notional Amount | $ 175,000 | |
Fixed Rate | 1.5995% | |
Variable Rate | 1 Month LIBOR | |
1.5890% Interest Rate Swap | ||
Derivative [Line Items] | ||
Effective Date | Mar. 8, 2016 | |
Maturity Date | Feb. 27, 2026 | |
Notional Amount | $ 175,000 | |
Fixed Rate | 1.589% | |
Variable Rate | 1 Month LIBOR |
Leases - Summary of Initial Rec
Leases - Summary of Initial Recognition of Operating Lease Assets and Liability (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leased Assets [Line Items] | ||
Total operating right-of-use assets | $ 66,100 | |
Operating lease liability | $ 77,382 | |
ASU 2016-02 | ||
Operating Leased Assets [Line Items] | ||
Operating right-of-use assets | $ 65,902 | |
State Bank acquisition | 14,089 | |
Total operating right-of-use assets | 79,991 | |
Operating lease liability | $ 92,268 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments under Operating Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leased Assets [Line Items] | |
2020 | $ 11,144 |
2021 | 11,070 |
2022 | 9,460 |
2023 | 8,833 |
2024 | 7,315 |
Thereafter | 55,820 |
Total minimum lease payments | 103,642 |
Property and Equipment | |
Operating Leased Assets [Line Items] | |
2020 | 13,606 |
2021 | 12,792 |
2022 | 10,303 |
2023 | 7,085 |
2024 | 2,734 |
Thereafter | 5,812 |
Total minimum lease payments | 52,332 |
Property and Equipment | Property | |
Operating Leased Assets [Line Items] | |
2020 | 13,599 |
2021 | 12,782 |
2022 | 10,284 |
2023 | 7,085 |
2024 | 2,734 |
Thereafter | 5,812 |
Total minimum lease payments | 52,296 |
Property and Equipment | Equipment | |
Operating Leased Assets [Line Items] | |
2020 | 7 |
2021 | 10 |
2022 | 19 |
Total minimum lease payments | $ 36 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Rental expenses for premises and equipment | $ 17.4 | $ 12.1 | $ 11.2 |
Right-of-use asset | $ 66.1 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsMember | ||
Operating lease liability | $ 77.4 | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesMember |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 10,201 |
Short-term lease cost | 97 |
Sublease income | (1,659) |
Total lease cost | $ 8,639 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Detail) | Dec. 31, 2019 |
Lease Cost [Abstract] | |
Weighted average remaining lease term (in years) | 12 years 3 months 18 days |
Weighted average discount rate | 4.70% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
(In thousands) | |
2020 | $ 11,144 |
2021 | 11,070 |
2022 | 9,460 |
2023 | 8,833 |
2024 | 7,315 |
Thereafter | 55,820 |
Total minimum lease payments | 103,642 |
Less: interest | (26,260) |
Operating lease liability | $ 77,382 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits [Line Items] | ||
Time Deposits | $ 2,563,507,000 | |
Domestic | ||
Time Deposits [Line Items] | ||
Time deposits $250,000 and over | 644,100,000 | $ 491,300,000 |
Foreign | ||
Time Deposits [Line Items] | ||
Time Deposits | $ 0 | $ 0 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities Of Time Deposits Included In Interest-Bearing Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Deposits [Abstract] | |
2020 | $ 2,266,107 |
2021 | 236,414 |
2022 | 41,013 |
2023 | 8,908 |
2024 and thereafter | 11,065 |
Total | $ 2,563,507 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2015 | Jun. 30, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 29, 2019 | |
Borrowed Funds [Line Items] | ||||||
Carrying value of securities pledged | $ 0 | $ 3,300,000 | ||||
Aggregate principal amount | 83,474,000 | |||||
Unregistered multi tranche debt Transactions | $ 245,000,000 | |||||
Unregistered debt transactions | $ 50,000,000 | |||||
Subordinated debt | $ 182,712,000 | 98,910,000 | ||||
Subordinate debt capital treatment achievement period | 10 years | |||||
FHLB advances | $ 100,000,000 | 150,000,000 | ||||
FHLB borrowing availability | 1,500,000,000 | |||||
Irrevocable letter of credit | 391,000,000 | 590,000,000 | ||||
Notes payable | 2,078,000 | |||||
Holding Company Revolving Loan Facility | Revolving Credit Facility | ||||||
Borrowed Funds [Line Items] | ||||||
Borrowings | $ 0 | |||||
Line of credit facility, borrowing capacity | $ 100,000,000 | |||||
Debt instrument, maturity date | Mar. 29, 2020 | |||||
Linscomb & Williams, Inc. | Wealth & Pension Services Group, Inc. | ||||||
Borrowed Funds [Line Items] | ||||||
Notes payable | $ 2,100,000 | |||||
FRB | ||||||
Borrowed Funds [Line Items] | ||||||
Borrowings | 0 | $ 0 | ||||
Public Fund Treasury Management Deposit | ||||||
Borrowed Funds [Line Items] | ||||||
Variable letter of credit | $ 350,000,000 | |||||
Municipal Deposits | ||||||
Borrowed Funds [Line Items] | ||||||
Letter of credit expiration date | Jul. 20, 2020 | |||||
Commercial Loans | FRB | ||||||
Borrowed Funds [Line Items] | ||||||
Collateralized borrowings from FRB | $ 684,500,000 | |||||
Commercial and Residential Real Estate Loan | ||||||
Borrowed Funds [Line Items] | ||||||
FHLB advances collateral amount | $ 2,000,000,000 | |||||
4.75% Fixed to Floating Rate Subordinated Notes Due 2029 | ||||||
Borrowed Funds [Line Items] | ||||||
Aggregate principal amount | $ 85,000,000 | |||||
Debt instrument, interest rate | 4.75% | |||||
4.875% Senior Notes, Due June 28, 2019 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 4.875% | 4.875% | 4.875% | |||
Subordinated debt maturity period | 4 years | |||||
Debt instrument, maturity date | Jun. 28, 2019 | Jun. 28, 2019 | ||||
5.375% Senior Notes, Due June 28, 2021 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 5.375% | 5.375% | ||||
Subordinated debt maturity period | 7 years | |||||
Debt instrument, maturity date | Jun. 28, 2021 | Jun. 28, 2021 | ||||
7.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 7.25% | 7.25% | ||||
Subordinated debt maturity period | 15 years | |||||
Subordinated debt | $ 35,000,000 | |||||
Call option period | 10 years | |||||
Debt instrument, maturity date | Jun. 28, 2029 | Jun. 28, 2029 | ||||
6.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 6.25% | 6.25% | ||||
Subordinated debt maturity period | 15 years | |||||
Subordinated debt | $ 25,000,000 | |||||
Call option period | 10 years | |||||
Debt instrument, maturity date | Jun. 28, 2029 | Jun. 28, 2029 | ||||
4.750% Subordinated Notes, Due June 2029, Callable in 2024 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 4.75% | 4.75% | ||||
Subordinated debt maturity period | 10 years | |||||
Subordinated debt | $ 85,000,000 | |||||
Call option period | 5 years | |||||
Debt instrument, maturity date | Jun. 30, 2029 | |||||
6.500% Subordinated Notes, Due March 2025, Callable in 2020 | ||||||
Borrowed Funds [Line Items] | ||||||
Debt instrument, interest rate | 6.50% | 6.50% | ||||
Subordinated debt | $ 40,000,000 | |||||
Call option period | 5 years | |||||
Debt instrument, maturity date | Mar. 31, 2025 | Mar. 31, 2025 | ||||
Expiration on September 28, 2020 | SAFE Program Deposits | ||||||
Borrowed Funds [Line Items] | ||||||
Irrevocable letter of credit | $ 35,000,000 | |||||
Letter of credit expiration date | Sep. 28, 2020 | |||||
Letter of credit expiration period | 45 days | |||||
Letter of credit extended expiration term | 1 year | |||||
Expiration on March 16, 2020 | Public Fund Treasury Management Deposit | ||||||
Borrowed Funds [Line Items] | ||||||
Letter of credit expiration date | Mar. 16, 2020 | |||||
Letter of credit expiration period | 45 days | |||||
Letter of credit extended expiration term | 1 year | |||||
Letter of Credit | Municipal Deposits | ||||||
Borrowed Funds [Line Items] | ||||||
Borrowings | $ 6,000,000 | |||||
Minimum | ||||||
Borrowed Funds [Line Items] | ||||||
Repurchase agreement maturity period | one day | |||||
Maximum | ||||||
Borrowed Funds [Line Items] | ||||||
Repurchase agreement maturity period | seven days |
Borrowed Funds - Summary of Sec
Borrowed Funds - Summary of Securities Sold Under Agreements to Repurchase (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Balance at period end | $ 1,106,000 | |
Average balance during the period | $ 3,855,000 | $ 1,630,000 |
Average interest rate during the period | 0.15% | 0.25% |
Maximum month-end balance during the period | $ 23,908,000 | $ 2,384,000 |
Borrowed Funds - Summary of Deb
Borrowed Funds - Summary of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt issue costs and unamortized premium | $ (2,350) | $ (1,211) |
Total senior and subordinated debt | 232,650 | 283,711 |
4.875% Senior Notes, Due June 28, 2019 | ||
Debt Instrument [Line Items] | ||
Purchased senior notes | (10,078) | |
Cadence Bancorporation | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 210,000 | 270,000 |
Cadence Bancorporation | 4.875% Senior Notes, Due June 28, 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 145,000 | |
Cadence Bancorporation | 5.375% Senior Notes, Due June 28, 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 50,000 | 50,000 |
Cadence Bancorporation | 7.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 35,000 | 35,000 |
Cadence Bancorporation | 6.500% Subordinated Notes, Due March 2025, Callable in 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 40,000 | 40,000 |
Cadence Bancorporation | 4.750% Subordinated Notes, Due June 2029, Callable in 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 85,000 | |
Cadence Bank | 6.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 25,000 | $ 25,000 |
Borrowed Funds - Summary of D_2
Borrowed Funds - Summary of Debt (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
4.875% Senior Notes, Due June 28, 2019 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.875% | 4.875% | 4.875% |
Debt instrument, maturity date | Jun. 28, 2019 | Jun. 28, 2019 | |
5.375% Senior Notes, Due June 28, 2021 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 5.375% | 5.375% | |
Debt instrument, maturity date | Jun. 28, 2021 | Jun. 28, 2021 | |
7.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 7.25% | 7.25% | |
Debt instrument, maturity date | Jun. 28, 2029 | Jun. 28, 2029 | |
6.500% Subordinated Notes, Due March 2025, Callable in 2020 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.50% | 6.50% | |
Debt instrument, maturity date | Mar. 31, 2025 | Mar. 31, 2025 | |
4.750% Subordinated Notes, Due June 2029, Callable in 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 4.75% | 4.75% | |
Debt instrument, maturity date | Jun. 30, 2029 | ||
6.250% Subordinated Notes, Due June 28, 2029, Callable in 2024 | |||
Debt Instrument [Line Items] | |||
Debt instrument, interest rate | 6.25% | 6.25% | |
Debt instrument, maturity date | Jun. 28, 2029 | Jun. 28, 2029 |
Borrowed Funds - Summary of Jun
Borrowed Funds - Summary of Junior Subordinated Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Junior subordinated debentures, gross | $ 50,619 | $ 50,619 |
Purchase accounting adjustment, net of amortization | (13,174) | (13,666) |
Total junior subordinated debentures | 37,445 | 36,953 |
3 month LIBOR plus 2.85%, due 2033 | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures, gross | 30,000 | 30,000 |
3 month LIBOR plus 2.95%, due 2033 | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures, gross | 5,155 | 5,155 |
3 month LIBOR plus 1.75%, due 2037 | ||
Debt Instrument [Line Items] | ||
Junior subordinated debentures, gross | $ 15,464 | $ 15,464 |
Borrowed Funds - Summary of J_2
Borrowed Funds - Summary of Junior Subordinated Debt (Parenthetical) (Details) - Junior subordinated debt | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
3 month LIBOR plus 2.85%, due 2033 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.85% | 2.85% |
Debt instrument maturity year | 2033 | 2033 |
3 month LIBOR plus 2.95%, due 2033 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.95% | 2.95% |
Debt instrument maturity year | 2033 | 2033 |
3 month LIBOR plus 1.75%, due 2037 | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 1.75% | 1.75% |
Debt instrument maturity year | 2037 | 2037 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense - Summary of Other Noninterest Income and Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other noninterest income | |||
Insurance revenue | $ 878 | $ 2,677 | $ 7,378 |
Mortgage banking income | 3,174 | 2,372 | 3,731 |
Income from bank owned life insurance policies | 4,971 | 3,450 | 3,313 |
Other | 6,881 | 6,033 | 6,655 |
Total other noninterest income | 15,904 | 14,532 | 21,077 |
Other noninterest expenses | |||
Data processing expense | 13,013 | 8,775 | 7,590 |
Software amortization | 13,352 | 5,929 | 6,635 |
Consulting and professional fees | 10,301 | 13,285 | 9,090 |
Loan related expenses | 2,383 | 3,145 | 2,379 |
FDIC insurance | 5,394 | 4,645 | 4,275 |
Communications | 5,116 | 2,773 | 2,837 |
Advertising and public relations | 5,017 | 2,523 | 2,048 |
Legal expenses | 1,608 | 3,732 | 4,274 |
Other | 41,716 | 22,373 | 21,537 |
Total other noninterest expenses | $ 97,900 | $ 67,180 | $ 60,665 |
Income Taxes - Components of th
Income Taxes - Components of the Consolidated Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 41,863 | $ 36,862 | $ 33,799 | ||||||||
State | 6,640 | 3,791 | 2,458 | ||||||||
Total current expense | 48,503 | 40,653 | 36,257 | ||||||||
Deferred: | |||||||||||
Federal | 11,012 | 3,791 | 44,009 | ||||||||
State | 828 | 673 | 380 | ||||||||
Total deferred expense | 11,840 | 4,464 | 44,389 | ||||||||
Total income tax expense | $ 15,738 | $ 12,796 | $ 14,707 | $ 17,102 | $ 10,709 | $ 15,074 | $ 8,384 | $ 10,950 | $ 60,343 | $ 45,117 | $ 80,646 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory Federal income tax rate | 21.00% | 21.00% | 35.00% |
Provisional income tax expense relating to from Tax Reform | $ 19,000,000 | ||
Realization of deferred tax asset | $ 79,200,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 1,000,000 | $ 1,000,000 | |
Interest and penalties recognized | 123,000 | 57,000 | |
Accrued interest and penalties on unrecognized tax benefits | 259,000 | 137,000 | |
Net deferred tax liability | $ 24,982,000 | ||
Net deferred tax asset | $ 33,224,000 | ||
Percentage increase in stockholders due to change in ownership over rolling period | 5.00% | ||
Treshold percentage increase in stockholders due to change in ownership over rolling period | 50.00% | ||
U.S. Federal | |||
Income Tax Disclosure [Abstract] | |||
Net operating loss carryforwards | $ 48,200,000 | ||
Federal net operating loss carry forward expiration year | 2031 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Disclosure [Abstract] | |||
Net operating loss carryforwards | $ 31,900,000 | ||
Federal net operating loss carry forward expiration year | 2024 | ||
ATM | |||
Income Tax Disclosure [Abstract] | |||
AMT credit carryforward | $ 500,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed income tax expense at statutory rate | $ 55,083 | $ 44,389 | $ 64,050 | ||||||||
Effects of tax reform | (284) | 19,022 | |||||||||
Tax exempt interest, net | (952) | (1,609) | (3,988) | ||||||||
Income on bank owned life insurance | (1,036) | (717) | (1,148) | ||||||||
State tax expense | 5,900 | 3,527 | 2,279 | ||||||||
Goodwill write-off on sale of subsidiary assets | 2,254 | ||||||||||
One-time bad debt deduction on legacy loan portfolio | (5,565) | ||||||||||
Other, net | 1,348 | 3,122 | 431 | ||||||||
Total income tax expense | $ 15,738 | $ 12,796 | $ 14,707 | $ 17,102 | $ 10,709 | $ 15,074 | $ 8,384 | $ 10,950 | $ 60,343 | $ 45,117 | $ 80,646 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of the Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Allowance for credit losses | $ 25,950 | $ 20,256 |
Lease liability | 18,235 | |
Deferred compensation | 4,562 | 3,338 |
Accrued compensation | 3,355 | 3,630 |
Net operating loss carryforwards | 11,524 | 8,893 |
Alternative minimum tax credit carryover | 489 | 978 |
Unrealized losses on securities, net | 7,910 | |
Unrealized losses on derivative instruments | 5,496 | |
Other | 2,847 | 3,588 |
Loans | 8,756 | |
Investment securities | 1,344 | |
Other | 2,183 | |
Total deferred income tax assets | 79,245 | 54,089 |
Deferred income tax liabilities: | ||
Intangible assets | 37,647 | 11,046 |
Other | 3,379 | 3,580 |
Right of use assets | 15,550 | |
Premises and equipment | 4,941 | |
Unrealized gain on securities, net | 5,265 | |
Unrealized gain on derivative instruments | 28,550 | |
Other | 8,895 | 6,239 |
Total deferred income tax liabilities | 104,227 | 20,865 |
Net deferred income tax liability | $ (24,982) | |
Net deferred income tax asset | $ 33,224 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of the Beginning and Ending Amount of Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized income tax benefits, January 1 | $ 1,272 | $ 894 | $ 944 |
Increases for tax positions related to prior years | 0 | 0 | 9 |
Increases for tax positions related to current year | 54 | 479 | 394 |
Decreases for tax positions related to prior years | (38) | (101) | (453) |
Decreases for tax positions related to current year | 0 | 0 | 0 |
Settlement with taxing authorities | 0 | 0 | 0 |
Expiration of applicable statutes of limitations | 0 | 0 | 0 |
Unrecognized income tax benefits, December 31 | $ 1,288 | $ 1,272 | $ 894 |
Earnings Per Common Share - Rec
Earnings Per Common Share - Reconciliation of Basic and Diluted Net Income Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income per consolidated statements of income | $ 51,425 | $ 43,986 | $ 48,346 | $ 58,201 | $ 32,326 | $ 47,136 | $ 47,974 | $ 38,825 | $ 201,958 | $ 166,261 | $ 102,353 |
Net income allocated to participating securities | (683) | (197) | |||||||||
Net income allocated to common stock | $ 201,275 | $ 166,064 | $ 102,353 | ||||||||
Weighted average common shares outstanding (Basic) | 128,913,962 | 83,562,109 | 81,072,945 | ||||||||
Weighted average dilutive restricted stock units and warrants | 103,637 | 813,180 | 532,070 | ||||||||
Weighted average common shares outstanding (Diluted) | 129,017,599 | 84,375,289 | 81,605,015 | ||||||||
Earnings per common share (Basic) | $ 0.40 | $ 0.34 | $ 0.37 | $ 0.44 | $ 0.39 | $ 0.56 | $ 0.57 | $ 0.46 | $ 1.56 | $ 1.99 | $ 1.26 |
Earnings per common share (Diluted) | $ 0.40 | $ 0.34 | $ 0.37 | $ 0.44 | $ 0.39 | $ 0.56 | $ 0.57 | $ 0.46 | $ 1.56 | $ 1.97 | $ 1.25 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock Units | |||
Earnings Per Share [Line Items] | |||
Antidilutive stock options and restricted stock units | $ 67,384 | ||
Stock Options and Restricted Stock Units | |||
Earnings Per Share [Line Items] | |||
Antidilutive stock options and restricted stock units | $ 1,393,783 | $ 0 |
Employee Benefits - Defined Ben
Employee Benefits - Defined Benefit Pension Plan's Funded (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 71,000 | $ 100,000 | $ 100,000 |
Interest cost | 126,000 | 165,000 | 192,000 |
Fair value of plan assets at beginning of period | 5,656,000 | ||
Employer contributions | 0 | 0 | 1,300,000 |
Fair value of plan assets at end of year | 281,000 | 5,656,000 | |
Expected return on plan assets | (198,000) | (319,000) | (261,000) |
Net loss amortization | 11,000 | 65,000 | |
Cost of settlements | 1,225,000 | 45,000 | |
Net periodic benefit cost | 1,235,000 | (54,000) | 141,000 |
Amortization of net actuarial loss | 11,000 | 65,000 | |
Net actuarial (loss) gain | (147,000) | 265,000 | 48,000 |
Adjustment for settlement | 461,000 | 45,000 | |
Gains on pension liability | 325,000 | 265,000 | 158,000 |
Tax effect | 3,000 | (62,000) | (37,000) |
Net unrealized gains on pension liability | 328,000 | 203,000 | 121,000 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligation at beginning of period | 5,116,000 | 5,909,000 | |
Service cost | 71,000 | 100,000 | |
Interest cost | 126,000 | 165,000 | |
Actuarial loss (gain) | 269,000 | (797,000) | |
Administrative expenses paid | (147,000) | (36,000) | |
Benefits paid | (47,000) | (225,000) | |
Settlements | (5,388,000) | ||
Benefit obligation at end of year | 5,116,000 | 5,909,000 | |
Fair value of plan assets at beginning of period | 5,656,000 | 6,130,000 | |
Return on plan assets | 278,000 | (213,000) | |
Administrative expenses paid | (147,000) | (36,000) | |
Benefits paid | (47,000) | (225,000) | |
Settlements | (5,459,000) | ||
Fair value of plan assets at end of year | $ 281,000 | 5,656,000 | $ 6,130,000 |
Funded status | $ 540,000 |
Employee Benefits - Determine B
Employee Benefits - Determine Benefit Obligations and Net Periodic Pension Cost (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | ||
Discount rate | 3.92% | 3.21% |
Compensation increase rate | 0.00% | 0.00% |
Census date | Jan. 1, 2019 | Jan. 1, 2018 |
Expected return on plan assets | 5.50% | 5.50% |
Employee Benefits - Schedule of
Employee Benefits - Schedule of Defined Benefit Pension Plan Fair Values and Weighted-Average Asset Allocations by Asset Category (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 281 | $ 5,656 |
Asset Allocations | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 2,262 | |
Asset Allocations | 40.00% | |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 3,311 | |
Asset Allocations | 59.00% | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair Value of Plan Assets | $ 281 | $ 83 |
Asset Allocations | 100.00% | 1.00% |
Employee Benefits - Additional
Employee Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum cash contribution | $ 0 | $ 0 | $ 1,300,000 | |
Amount recognized in compensation expense | 213,874,000 | 154,905,000 | 139,118,000 | |
Plan 401 K | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan contributions | 7,400,000 | 3,800,000 | ||
Accrued liability | 5,700,000 | 4,900,000 | ||
Amount recognized in compensation expense | $ 2,000,000 | $ (300,000) | $ 800,000 | |
Scenario, Forecast | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum cash contribution | $ 0 |
Employee Benefits - Schedule _2
Employee Benefits - Schedule of Projected Benefit Payments (Details) - Plan 401 K $ in Thousands | Dec. 31, 2019USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 416 |
2021 | 420 |
2022 | 591 |
2023 | 614 |
2024 | 718 |
2025-2029 | 4,269 |
Total | $ 7,028 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) $ in Millions | Dec. 31, 2018USD ($) |
Related Party Transaction [Line Items] | |
Related party deposits | $ 571 |
State Bank and One Large Deposit Account by Related Third Party | |
Related Party Transaction [Line Items] | |
Related party deposits | $ 311 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier 1 leverage | $ 1,784,664 | $ 1,209,407 |
Common equity tier 1 capital | 1,784,664 | 1,172,454 |
Tier 1 risk-based capital | 1,784,664 | 1,209,407 |
Total risk-based capital | 2,120,571 | 1,403,311 |
Tier 1 leverage | 690,213 | 479,940 |
Common equity tier 1 capital | 697,089 | 536,930 |
Tier 1 risk-based capital | 929,453 | 715,907 |
Total risk-based capital | 1,239,270 | 954,542 |
Tier 1 risk-based capital | 929,453 | 715,907 |
Total risk-based capital | $ 1,549,088 | $ 1,193,178 |
Tier 1 leverage | 10.30% | 10.10% |
Common equity tier 1 capital | 11.50% | 9.80% |
Tier 1 risk-based capital | 11.50% | 10.10% |
Total risk-based capital | 13.70% | 11.80% |
Tier 1 leverage | 4.00% | 4.00% |
Common equity tier 1 capital | 4.50% | 4.50% |
Tier 1 risk-based capital | 6.00% | 6.00% |
Total risk-based capital | 8.00% | 8.00% |
Tier 1 risk-based capital | 6.00% | 6.00% |
Total risk-based capital | 10.00% | 10.00% |
Cadence Bank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Tier 1 leverage | $ 1,953,008 | $ 1,327,974 |
Common equity tier 1 capital | 1,903,008 | 1,277,974 |
Tier 1 risk-based capital | 1,953,008 | 1,327,974 |
Total risk-based capital | 2,099,146 | 1,447,719 |
Tier 1 leverage | 689,881 | 479,667 |
Common equity tier 1 capital | 696,755 | 536,285 |
Tier 1 risk-based capital | 929,007 | 715,047 |
Total risk-based capital | 1,238,676 | 953,396 |
Tier 1 leverage | 862,351 | 599,584 |
Common equity tier 1 capital | 1,006,425 | 774,634 |
Tier 1 risk-based capital | 1,238,676 | 953,396 |
Total risk-based capital | $ 1,548,345 | $ 1,191,745 |
Tier 1 leverage | 11.30% | 11.10% |
Common equity tier 1 capital | 12.30% | 10.70% |
Tier 1 risk-based capital | 12.60% | 11.10% |
Total risk-based capital | 13.60% | 12.10% |
Tier 1 leverage | 4.00% | 4.00% |
Common equity tier 1 capital | 4.50% | 4.50% |
Tier 1 risk-based capital | 6.00% | 6.00% |
Total risk-based capital | 8.00% | 8.00% |
Tier 1 leverage | 5.00% | 5.00% |
Common equity tier 1 capital | 6.50% | 6.50% |
Tier 1 risk-based capital | 8.00% | 8.00% |
Total risk-based capital | 10.00% | 10.00% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
Reserve requirement with FRB | $ 246 | $ 91.5 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Summary of Commitments and Contingent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Grant Loans | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments to grant loans | $ 292,199 | $ 103,570 |
Standby Letters of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit | 213,548 | 141,214 |
Performance Letters of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Performance letters of credit | 27,985 | 21,026 |
Commercial Letters of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit | 15,587 | 11,262 |
Commitments to Extend Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments to extend credit | $ 4,667,360 | $ 4,078,708 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Unfunded commitments - LLC Investments | $ 44.9 | $ 37.5 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information - Summary of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the year for: | |||
Interest | $ 207,052 | $ 120,823 | $ 69,289 |
Income taxes, net of refunds | 51,729 | 40,754 | 33,268 |
Cash paid for amounts included in lease liabilities | 11,276 | ||
Non-cash investing activities (at fair value): | |||
Acquisition of real estate in settlement of loans | 2,769 | 3,207 | 7,023 |
Transfers of loans held for sale to loans | 44,210 | ||
Transfers of loans to loans held for sale | 123,815 | $ 36,627 | $ 16,206 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 84,952 |
Disclosure About Fair Values _3
Disclosure About Fair Values of Financial Instruments - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Investment securities available-for-sale | $ 2,368,592 | $ 1,187,252 |
Derivative assets | 257,137 | 11,136 |
Liabilities | ||
Derivative liabilities | 11,211 | 32,350 |
Carrying Value | ||
Assets | ||
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Derivative assets | 257,137 | 11,136 |
Liabilities | ||
Derivative liabilities | 11,211 | 32,350 |
Level 1 | ||
Assets | ||
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Level 2 | ||
Assets | ||
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Derivative assets | 257,137 | 11,136 |
Liabilities | ||
Derivative liabilities | 11,211 | 32,350 |
Fair Value, Measurements, Recurring | Carrying Value | ||
Assets | ||
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Derivative assets | 257,137 | 11,136 |
Other assets | 26,882 | 16,970 |
Total assets | 2,654,473 | 1,221,198 |
Liabilities | ||
Derivative liabilities | 11,211 | 32,350 |
Total recurring basis measured liabilities | 11,211 | 32,350 |
Fair Value, Measurements, Recurring | Level 1 | ||
Assets | ||
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Total assets | 1,862 | 5,840 |
Fair Value, Measurements, Recurring | Level 2 | ||
Assets | ||
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Derivative assets | 257,137 | 11,136 |
Total assets | 2,625,729 | 1,198,388 |
Liabilities | ||
Derivative liabilities | 11,211 | 32,350 |
Total recurring basis measured liabilities | 11,211 | 32,350 |
Fair Value, Measurements, Recurring | Level 3 | ||
Assets | ||
Other assets | 26,882 | 16,970 |
Total assets | $ 26,882 | $ 16,970 |
Disclosure About Fair Values _4
Disclosure About Fair Values of Financial Instruments - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Transfer between level 1 to level 2, asset | $ 0 | $ 0 |
Transfer between level 2 to level 1, asset | 0 | 0 |
Transfer between level 1 to level 2, liabilities | 0 | 0 |
Transfer between level 2 to level 1, liabilities | $ 0 | $ 0 |
Fair value inputs, increase (decrease) in discount rate | 5.00% | |
SBA Servicing Assets | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated contractual servicing cost | 0.40% | |
USDA Loans | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Estimated contractual servicing cost | 0.125% | |
Measurement Input, Discount Rate | Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value inputs, discount rate | 0.10 |
Disclosure About Fair Values _5
Disclosure About Fair Values of Financial Instruments - Summary of Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Profits Interests | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $ 5,779 | $ 15,833 |
Sales proceeds | (5,308) | |
Net (losses) gains included in earnings | (874) | (3,177) |
Distributions received | (575) | (1,569) |
Ending Balance | 4,330 | 5,779 |
Net unrealized (losses) gains included in earnings relating to assets held at the end of the period | (874) | (2,818) |
Investments in Limited Partnerships | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 11,191 | |
Net (losses) gains included in earnings | 2,841 | 2,457 |
Reclassifications | 140 | |
Contributions paid | 5,970 | 3,807 |
Distributions received | (1,400) | (1,403) |
Ending Balance | 18,742 | 11,191 |
Net unrealized (losses) gains included in earnings relating to assets held at the end of the period | 2,841 | 2,457 |
Investments in Limited Partnerships | ASU 2016-01 | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Transfers in due to adoption of ASU 2016-01 | 5,129 | |
Adjustment recorded in retained earnings due to adoption of ASU 2016-01 | $ 1,201 | |
SBA Servicing Assets | ||
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Acquired | 6,213 | |
Originations | 1,412 | |
Net (losses) gains included in earnings | (3,815) | |
Ending Balance | 3,810 | |
Net unrealized (losses) gains included in earnings relating to assets held at the end of the period | $ (3,815) |
Disclosure About Fair Values _6
Disclosure About Fair Values of Financial Instruments - Summary of Assets Recorded at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Other real estate | $ 1,600 | $ 2,400 |
Level 2 | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Loans held for sale | 87,649 | 59,461 |
Fair Value, Nonrecurring | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Loans held for sale | 87,649 | 59,461 |
Impaired loans, net of specific allowance | 101,561 | 71,742 |
Other real estate | 1,628 | 2,406 |
Total assets | 190,838 | 133,609 |
Fair Value, Nonrecurring | Level 2 | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Loans held for sale | 87,649 | 59,461 |
Total assets | 87,649 | 59,461 |
Fair Value, Nonrecurring | Level 3 | ||
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 101,561 | 71,742 |
Other real estate | 1,628 | 2,406 |
Total assets | $ 103,189 | $ 74,148 |
Disclosure About Fair Values _7
Disclosure About Fair Values of Financial Instruments - Summary of Significant Unobservable Inputs Used in Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value On a Nonrecurring Basis (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | ||
Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | Measurement Input, Discount Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.10 | ||
Level 3 | Minimum Guaranteed Proceeds Per Settlement Agreement | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Minimum guaranteed proceeds per Settlement Agreement | ||
Range | [1] | 0.00% | |
Level 3 | Impaired Loans Net Of Specific Allowance | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 71,742 | ||
Unobservable Inputs | Discount to fair value | ||
Level 3 | Impaired Loans Net Of Specific Allowance | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | 20.00% | ||
Level 3 | Impaired Loans Net Of Specific Allowance | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | 0.00% | ||
Level 3 | Discount of Fair Value | Impaired Loans Net Of Specific Allowance | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Discount to fair value | ||
Level 3 | Discount of Fair Value | Impaired Loans Net Of Specific Allowance | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements, percentage of enterprise value | 50.00% | ||
Level 3 | Discount of Fair Value | Impaired Loans Net Of Specific Allowance | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements, percentage of enterprise value | 0.00% | ||
Level 3 | Discount of Fair Value | Impaired Loans Net Of Specific Allowance | Fair Value, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 101,561 | ||
Level 3 | Discount of Fair Value | Other | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 2,406 | ||
Unobservable Inputs | Discount to fair value | Discount to fair value | |
Level 3 | Discount of Fair Value | Other | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | 20.00% | 20.00% | |
Level 3 | Discount of Fair Value | Other | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | 0.00% | 0.00% | |
Level 3 | Discount of Fair Value | Other | Fair Value, Nonrecurring | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Carrying Value | $ 1,628 | ||
Level 3 | Discounted Cash Flow | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Discount rate 5.8% | Discount rates 2.9% to 8.7% | |
Range | [1] | 0.00% | |
Level 3 | Discounted Cash Flow | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | [1] | 20.00% | |
Level 3 | Discounted Cash Flow | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | [1] | 0.00% | |
Level 3 | Discounted Cash Flow | Measurement Input, Discount Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.058 | ||
Level 3 | Discounted Cash Flow | Measurement Input, Discount Rate | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.087 | ||
Level 3 | Discounted Cash Flow | Measurement Input, Discount Rate | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.029 | ||
Level 3 | Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Net recoverable oil and gas reserves and forward-looking commodity prices. Discount rate - 10% | ||
Level 3 | Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | [1] | 10.00% | |
Level 3 | Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Range | [1] | 0.00% | |
Level 3 | Discounted Cash Flow | Net Recoverable Oil and Gas Reserves and Forward Looking Commodity Prices | Measurement Input, Discount Rate | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value inputs, discount rate | 0.10 | ||
Level 3 | Enterprise Value | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Exit and earnings multiples, discounted cash flows, and market comparables | Exit multiples | |
Level 3 | Enterprise Value | Maximum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements, percentage of enterprise value | [1] | 46.00% | |
Range | [1] | 15.00% | |
Level 3 | Enterprise Value | Minimum | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value measurements, percentage of enterprise value | [1] | 0.00% | |
Range | [1] | 0.00% | |
Level 3 | Estimated Closing Costs | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Unobservable Inputs | Estimated closing costs | Estimated closing costs | |
Range | 10.00% | 10.00% | |
[1] | Represents difference of remaining balance to fair value. |
Disclosure About Fair Values _8
Disclosure About Fair Values of Financial Instruments - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Interest-bearing deposits with banks | $ 725,343 | $ 523,436 |
Federal funds sold | 10,974 | 18,502 |
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Derivative assets | 257,137 | 11,136 |
Other assets | 512,244 | 172,900 |
Financial Liabilities: | ||
Advances from FHLB | 100,000 | 150,000 |
Securities sold under agreements to repurchase | 1,106 | |
Senior debt | 49,938 | 184,801 |
Subordinated debt | 182,712 | 98,910 |
Junior subordinated debentures | 37,445 | 36,953 |
Notes payable | 2,078 | |
Derivative liabilities | 11,211 | 32,350 |
Level 1 | ||
Financial Assets: | ||
Cash and due from banks | 252,447 | 237,342 |
Interest-bearing deposits with banks | 725,343 | 523,436 |
Federal funds sold | 10,974 | 18,502 |
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Level 2 | ||
Financial Assets: | ||
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Loans held for sale | 87,649 | 59,461 |
Derivative assets | 257,137 | 11,136 |
Financial Liabilities: | ||
Deposits | 14,753,192 | 10,700,350 |
Advances from FHLB | 100,000 | 150,000 |
Securities sold under agreements to repurchase | 1,106 | |
Senior debt | 51,202 | 194,762 |
Subordinated debt | 189,386 | 103,008 |
Junior subordinated debentures | 48,012 | 46,946 |
Notes payable | 2,078 | |
Derivative liabilities | 11,211 | 32,350 |
Level 3 | ||
Financial Assets: | ||
Net loans | 12,755,360 | 9,735,130 |
Other assets | 72,719 | 42,696 |
Carrying Value | ||
Financial Assets: | ||
Cash and due from banks | 252,447 | 237,342 |
Interest-bearing deposits with banks | 725,343 | 523,436 |
Federal funds sold | 10,974 | 18,502 |
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Loans held for sale | 87,649 | 59,461 |
Net loans | 12,864,012 | 9,959,545 |
Derivative assets | 257,137 | 11,136 |
Other assets | 72,719 | 42,696 |
Financial Liabilities: | ||
Deposits | 14,742,794 | 10,708,689 |
Advances from FHLB | 100,000 | 150,000 |
Securities sold under agreements to repurchase | 1,106 | |
Senior debt | 49,938 | 184,801 |
Subordinated debt | 182,712 | 98,910 |
Junior subordinated debentures | 37,445 | 36,953 |
Notes payable | 2,078 | |
Derivative liabilities | 11,211 | 32,350 |
Fair Value | ||
Financial Assets: | ||
Cash and due from banks | 252,447 | 237,342 |
Interest-bearing deposits with banks | 725,343 | 523,436 |
Federal funds sold | 10,974 | 18,502 |
Investment securities available-for-sale | 2,368,592 | 1,187,252 |
Equity securities with readily determinable fair values not held for trading | 1,862 | 5,840 |
Loans held for sale | 87,649 | 59,461 |
Net loans | 12,755,360 | 9,735,130 |
Derivative assets | 257,137 | 11,136 |
Other assets | 72,719 | 42,696 |
Financial Liabilities: | ||
Deposits | 14,753,192 | 10,700,350 |
Advances from FHLB | 100,000 | 150,000 |
Securities sold under agreements to repurchase | 1,106 | |
Senior debt | 51,202 | 194,762 |
Subordinated debt | 189,386 | 103,008 |
Junior subordinated debentures | 48,012 | 46,946 |
Notes payable | 2,078 | |
Derivative liabilities | $ 11,211 | $ 32,350 |
Variable Interest Entities an_3
Variable Interest Entities and Other Investments - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Dec. 31, 2016Customer | |
Variable Interest Entities and Other Investments [Line Items] | ||||
Equity method investments | $ 8,681,000 | $ 8,714,000 | $ 8,856,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||||
Variable Interest Entities and Other Investments [Line Items] | ||||
Cost method investments | 18,700,000 | 11,200,000 | ||
Gain recognized from assets at fair value | 2,800,000 | 2,500,000 | ||
Equity method investments | 8,700,000 | 8,700,000 | ||
Total marketable equity securities | 1,900,000 | $ 5,800,000 | ||
Number of loan customers | Customer | 2 | |||
Number of loan customers sold | Customer | 1 | |||
Net profits interest | 4,300,000 | $ 5,800,000 | ||
Variable Interest Entity, Not Primary Beneficiary | Rabbi Trust | ||||
Variable Interest Entities and Other Investments [Line Items] | ||||
Defined rabbi trust assets and benefit obligation | 3,700,000 | 3,600,000 | ||
Variable Interest Entity, Not Primary Beneficiary | Limited Partner | ||||
Variable Interest Entities and Other Investments [Line Items] | ||||
Equity method investments | 9,000,000 | 9,200,000 | ||
Variable Interest Entity, Not Primary Beneficiary | Other Assets | ||||
Variable Interest Entities and Other Investments [Line Items] | ||||
Investments in affordable Housing Project | $ 28,200,000 | $ 7,800,000 |
Variable Interest Entities an_4
Variable Interest Entities and Other Investments - Summary of Investment in Limited Partnerships (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Variable Interest Entities and Other Investments [Line Items] | |||
Equity method investments | $ 8,681 | $ 8,714 | $ 8,856 |
Investments in Limited Partnerships | |||
Variable Interest Entities and Other Investments [Line Items] | |||
Affordable housing projects (amortized cost) | 28,205 | 7,803 | |
Limited partnerships accounted for under the fair value practical expedient of NAV | 18,742 | 11,191 | |
Limited partnerships without readily determinable fair values that do not qualify for the practical expedient of NAV accounted for under the cost method | 8,681 | 8,714 | |
Equity method investments | 8,951 | 9,209 | |
Total investments in limited partnerships | $ 64,579 | $ 36,917 |
Variable Interest Entities an_5
Variable Interest Entities and Other Investments - Summary of Carrying Amount of Equity Investments Measured Under Measurement Alternative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Variable Interest Entities And Other Investments [Abstract] | ||
Carrying value, Beginning of Year | $ 8,714 | $ 8,856 |
Reclassifications | (140) | |
Distributions | (1,758) | (1,109) |
Contributions | 1,865 | 967 |
Carrying value, End of Year | $ 8,681 | $ 8,714 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Segment Reporting - Summary of
Segment Reporting - Summary of Operating Results of Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net interest income (expense) | $ 160,909 | $ 160,187 | $ 160,787 | $ 169,289 | $ 103,146 | $ 98,100 | $ 95,384 | $ 91,111 | $ 651,173 | $ 387,741 | $ 326,216 | ||||||||
Provision for credit losses | 27,126 | 43,764 | 28,927 | 11,210 | 8,422 | (1,365) | 1,263 | 4,380 | 111,027 | 12,700 | 9,735 | ||||||||
Noninterest income | 33,898 | [1] | 34,642 | [1] | 31,722 | [1] | 30,664 | [1] | 21,007 | [2] | 23,976 | [2] | 24,672 | [2] | 24,983 | [2] | 130,925 | 94,638 | 99,874 |
Noninterest expense | 100,518 | 94,283 | 100,529 | 113,440 | 72,696 | 61,231 | 62,435 | 61,939 | 408,770 | 258,301 | 233,356 | ||||||||
Income tax expense (benefit) | 15,738 | 12,796 | 14,707 | 17,102 | 10,709 | 15,074 | 8,384 | 10,950 | 60,343 | 45,117 | 80,646 | ||||||||
Net income | 51,425 | $ 43,986 | $ 48,346 | $ 58,201 | 32,326 | $ 47,136 | $ 47,974 | $ 38,825 | 201,958 | 166,261 | 102,353 | ||||||||
Total assets | 17,800,229 | 12,730,285 | 17,800,229 | 12,730,285 | 10,948,926 | ||||||||||||||
Banking | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net interest income (expense) | 669,878 | 407,674 | 344,987 | ||||||||||||||||
Provision for credit losses | 111,027 | 12,700 | 9,735 | ||||||||||||||||
Noninterest income | 88,098 | 47,316 | 51,286 | ||||||||||||||||
Noninterest expense | 361,874 | 215,574 | 194,212 | ||||||||||||||||
Income tax expense (benefit) | 66,090 | 52,464 | 88,417 | ||||||||||||||||
Net income | 218,985 | 174,252 | 103,909 | ||||||||||||||||
Total assets | 17,685,272 | 12,622,287 | 17,685,272 | 12,622,287 | 10,854,206 | ||||||||||||||
Financial Services | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net interest income (expense) | (2,156) | (2,307) | (1,347) | ||||||||||||||||
Noninterest income | 41,580 | 46,805 | 47,956 | ||||||||||||||||
Noninterest expense | 34,281 | 35,679 | 36,178 | ||||||||||||||||
Income tax expense (benefit) | 714 | 3,979 | 2,000 | ||||||||||||||||
Net income | 4,429 | 4,840 | 8,431 | ||||||||||||||||
Total assets | 107,772 | 94,618 | 107,772 | 94,618 | 90,639 | ||||||||||||||
Corporate | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Net interest income (expense) | (16,549) | (17,626) | (17,424) | ||||||||||||||||
Noninterest income | 1,247 | 517 | 632 | ||||||||||||||||
Noninterest expense | 12,615 | 7,048 | 2,966 | ||||||||||||||||
Income tax expense (benefit) | (6,461) | (11,326) | (9,771) | ||||||||||||||||
Net income | (21,456) | (12,831) | (9,987) | ||||||||||||||||
Total assets | $ 7,185 | $ 13,380 | $ 7,185 | $ 13,380 | $ 4,081 | ||||||||||||||
[1] | Includes net securities gains (losses) of $317 thousand, $775 thousand, $938 thousand and $(12) thousand during the fourth, third, second and first quarters of 2019, respectively. | ||||||||||||||||||
[2] | Includes net securities gains (losses) of $(54) thousand, $2 thousand, $(1.8) million and $12 thousand during the fourth, third, second and first quarters of 2018, respectively |
Equity-based Compensation - Add
Equity-based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 1,229,863 | 275,744 | 672,750 | 672,750 | |
Equity-based compensation expense | $ 6,400 | $ 3,700 | $ 1,700 | ||
Remaining expense related to unvested restricted stock units | $ 18,200 | ||||
Restricted Stock Units | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expense recognition period | 15 months | ||||
Restricted Stock Units | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expense recognition period | 45 months | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Expense recognition period | 25 months | ||||
Expense related to nonvested stock option grants | $ 2,500 | ||||
Stock Options | Executive Officer | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options granted | 1,602,848 | ||||
Percentage of premium on common stock value, options granted | 15.00% | ||||
Weighted-average exercise price | $ 20.43 | ||||
Award vesting period | 3 years | ||||
Option expiration period | 7 years | ||||
Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock shares available for grant | 7,500,000 | ||||
Shares of common stock remain available for future grants | 4,100,000 | ||||
Plan | Restricted Stock Units | Vest in First Quarter of 2021 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 85,804 | ||||
Plan | Restricted Stock Units | Vest in Third Quarter of 2021 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 2,116 | ||||
Plan | Restricted Stock Units | Vesting Quarterly | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 311,961 | ||||
Plan | Restricted Stock Units | Cliff-Vest | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 53,219 | ||||
Plan | Restricted Stock Units | Vest in First Quarter of 2022 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 72,840 | ||||
Plan | Restricted Stock Units | Vest in First Quarter of 2023 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 249,651 | ||||
Plan | Restricted Stock Units | Vest in Second Quarter of 2020 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 2,000 | ||||
Plan | Restricted Stock Units | Vest in Second Quarter of 2023 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 6,998 | ||||
Plan | Restricted Stock Units | Vest in Third Quarter of 2023 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of unit expected to vest | 9,901 | ||||
Plan | Restricted Stock Units | Half of Units Granted | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 25.00% | ||||
Plan | Restricted Stock Units | Half of Units Granted | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting rights, percentage | 200.00% | ||||
2018 Employee Stock Purchase Plan | Common Class A | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity-based compensation expense | $ 301 | $ 205 | |||
Percentage of discount on fair market value of common stock | 15.00% | 15.00% | |||
Common stock purchased in the open market | 109,020 | 40,598 | |||
2018 Employee Stock Purchase Plan | Maximum | Common Class A | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Amount of common stock may be granted | 500,000 |
Equity-based Compensation - Sum
Equity-based Compensation - Summary of Activity Related to Restricted Stock Unit Awards (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares, Non-vested at beginning of period | 275,744 | 672,750 | 672,750 |
Number of shares, Granted during the period | 1,173,860 | 276,451 | 0 |
Number of shares, Vested during the period | (153,756) | 0 | 0 |
Number of shares, Forfeited during the period | (65,985) | (707) | 0 |
Number of shares, Expired during the period | 0 | (672,750) | 0 |
Number of shares, Non-vested at end of period | 1,229,863 | 275,744 | 672,750 |
Weighted average fair value per unit at award date, Non-vested at beginning of period | $ 26.49 | $ 5.14 | $ 5.14 |
Weighted average fair value per unit at award date, Granted during the period | 18.52 | 26.49 | 0 |
Weighted average fair value per unit at award date, Vested during the period | 20.30 | 0 | 0 |
Weighted average fair value per unit at award date, Forfeited during the period | 20.50 | 26.50 | 0 |
Weighted average fair value per unit at award date, Expired during the period | 0 | 5.14 | 0 |
Weighted average fair value per unit at award date, Non-vested at end of period | $ 19.97 | $ 26.49 | $ 5.14 |
Equity-based Compensation - S_2
Equity-based Compensation - Summary of Weighted-Average Assumptions Used For Option Awards Issued, Uses Black-Scholes Option Pricing Model (Details) - Stock Options | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected dividends | 3.10% |
Expected volatility | 25.20% |
Risk-free interest rate | 2.50% |
Expected term (in years) | 4 years 6 months |
Weighted-average grant date fair value | $ 2.32 |
Condensed Financial Informati_3
Condensed Financial Information of Cadence Bancorporation (Parent Only) - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and due from banks | $ 252,447 | $ 237,342 | ||
Interest-bearing deposits with banks | 725,343 | 523,436 | ||
Other assets | 512,244 | 172,900 | ||
Total Assets | 17,800,229 | 12,730,285 | $ 10,948,926 | |
Liabilities: | ||||
Senior debt | 49,938 | 184,801 | ||
Subordinated debt | 182,712 | 98,910 | ||
Junior subordinated debentures | 37,445 | 36,953 | ||
Other liabilities | 199,434 | 111,552 | ||
Total liabilities | 15,339,383 | 11,292,011 | ||
Shareholder’s Equity: | ||||
Common stock | 1,330 | 836 | ||
Additional paid-in capital | 1,873,063 | 1,041,000 | ||
Treasury stock | (100,752) | (22,010) | ||
Retained earnings | 572,503 | 461,360 | ||
Accumulated other comprehensive income (loss) | 114,702 | (42,912) | ||
Total shareholders' equity | 2,460,846 | 1,438,274 | $ 1,359,056 | $ 1,080,498 |
Total Liabilities and Shareholders' Equity | 17,800,229 | 12,730,285 | ||
Cadence Bancorporation | ||||
ASSETS | ||||
Cash and due from banks | 1 | 985 | ||
Interest-bearing deposits with banks | 51,536 | 114,871 | ||
Investment in bank subsidiary | 2,628,739 | 1,593,469 | ||
Investment in nonbank subsidiary | 15,042 | 16,787 | ||
Other assets | 17,841 | 15,126 | ||
Total Assets | 2,713,159 | 1,741,238 | ||
Liabilities: | ||||
Interest payable | 816 | 818 | ||
Senior debt | 49,938 | 184,801 | ||
Subordinated debt | 157,916 | 74,158 | ||
Junior subordinated debentures | 37,445 | 36,953 | ||
Other liabilities | 6,198 | 6,234 | ||
Total liabilities | 252,313 | 302,964 | ||
Shareholder’s Equity: | ||||
Common stock | 1,330 | 836 | ||
Additional paid-in capital | 1,873,063 | 1,041,000 | ||
Treasury stock | (100,752) | (22,010) | ||
Retained earnings | 572,503 | 461,360 | ||
Accumulated other comprehensive income (loss) | 114,702 | (42,912) | ||
Total shareholders' equity | 2,460,846 | 1,438,274 | ||
Total Liabilities and Shareholders' Equity | $ 2,713,159 | $ 1,741,238 |
Condensed Financial Informati_4
Condensed Financial Information of Cadence Bancorporation (Parent Only) - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME | |||||||||||
Interest income | $ 207,618 | $ 213,149 | $ 217,124 | $ 222,185 | $ 143,857 | $ 131,753 | $ 123,963 | $ 113,093 | $ 860,076 | $ 512,666 | $ 396,867 |
Other income | 15,904 | 14,532 | 21,077 | ||||||||
EXPENSES | |||||||||||
Interest expense | 46,709 | 52,962 | 56,337 | 52,896 | 40,711 | 33,653 | 28,579 | 21,982 | 208,903 | 124,925 | 70,651 |
Other expenses | 97,900 | 67,180 | 60,665 | ||||||||
Income before income taxes | 67,163 | 56,782 | 63,053 | 75,303 | 43,035 | 62,210 | 56,358 | 49,775 | 262,301 | 211,378 | 182,999 |
Income tax expense (benefit) | 15,738 | 12,796 | 14,707 | 17,102 | 10,709 | 15,074 | 8,384 | 10,950 | 60,343 | 45,117 | 80,646 |
Net income | $ 51,425 | $ 43,986 | $ 48,346 | $ 58,201 | $ 32,326 | $ 47,136 | $ 47,974 | $ 38,825 | 201,958 | 166,261 | 102,353 |
Cadence Bancorporation | |||||||||||
INCOME | |||||||||||
Dividends from bank subsidiary | 130,909 | 59,494 | 11,000 | ||||||||
Interest income | 23 | 73 | 65 | ||||||||
Other income | 1,248 | 516 | 632 | ||||||||
Total income | 132,180 | 60,083 | 11,697 | ||||||||
EXPENSES | |||||||||||
Interest expense | 16,538 | 17,626 | 17,424 | ||||||||
Other expenses | 12,615 | 7,048 | 3,305 | ||||||||
Total expenses | 29,153 | 24,674 | 20,729 | ||||||||
Income (loss) before income taxes and equity in undistributed income of subsidiaries | 103,027 | 35,409 | (9,032) | ||||||||
Equity in undistributed income of subsidiaries | 92,288 | 125,727 | 103,390 | ||||||||
Income before income taxes | 195,315 | 161,136 | 94,358 | ||||||||
Income tax expense (benefit) | (6,643) | (5,125) | (7,995) | ||||||||
Net income | $ 201,958 | $ 166,261 | $ 102,353 |
Condensed Financial Informati_5
Condensed Financial Information of Cadence Bancorporation (Parent Only) - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ 51,425 | $ 43,986 | $ 48,346 | $ 58,201 | $ 32,326 | $ 47,136 | $ 47,974 | $ 38,825 | $ 201,958 | $ 166,261 | $ 102,353 |
Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
Deferred income tax expense | 11,840 | 4,464 | 44,388 | ||||||||
(Increase) decrease in other assets | (43,670) | (21,644) | 4,079 | ||||||||
Loss on sale of securities | (317) | $ (775) | $ (938) | 12 | 54 | $ (2) | $ 1,800 | (12) | (2,018) | 1,853 | 146 |
(Decrease) increase in other liabilities | 19,297 | 1,610 | 18,078 | ||||||||
Other, net | 2,259 | 1,784 | 5,132 | ||||||||
Net cash provided by operating activities | 306,131 | 191,169 | 144,698 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Cash received in business combination | 409,137 | ||||||||||
Net cash provided by (used in) investing activities | 265,400 | (1,771,949) | (951,103) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Purchase of senior debt | (134,922) | (9,600) | |||||||||
Issuance of subordinated debentures | 83,474 | ||||||||||
Proceeds from issuance of common stock | 155,581 | ||||||||||
Cash dividends paid on common stock | (90,095) | (45,995) | |||||||||
Repurchase of common stock | (79,123) | (22,010) | |||||||||
Other, net | (528) | ||||||||||
Net cash (used in) provided by financing activities | (362,047) | 1,629,249 | 1,288,291 | ||||||||
Net increase in cash and cash equivalents | 209,484 | 48,469 | 481,886 | ||||||||
Cash and cash equivalents at beginning of period | 779,280 | 730,811 | 779,280 | 730,811 | 248,925 | ||||||
Cash and cash equivalents at end of period | 988,764 | 779,280 | 988,764 | 779,280 | 730,811 | ||||||
Cadence Bancorporation | |||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | 201,958 | 166,261 | 102,353 | ||||||||
Adjustments to reconcile net income to net cash provided by operations: | |||||||||||
Deferred income tax expense | 1,572 | 358 | 1,084 | ||||||||
Equity in undistributed income of subsidiaries | (92,288) | (125,727) | (103,390) | ||||||||
(Increase) decrease in other assets | 5,836 | (10,143) | 3,892 | ||||||||
Loss on sale of securities | 15 | ||||||||||
(Decrease) increase in other liabilities | (13,860) | 2,156 | 894 | ||||||||
Other, net | 99 | ||||||||||
Net cash provided by operating activities | 103,332 | 32,905 | 4,833 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Capital contributions to bank subsidiary | (50,000) | ||||||||||
Cash received in business combination | 47,233 | ||||||||||
Decrease (increase) in limited partnership investments | 603 | (125) | (63) | ||||||||
Proceeds from sale of securities | 5,707 | ||||||||||
Net cash provided by (used in) investing activities | 53,543 | (125) | (50,063) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Purchase of senior debt | (134,922) | (9,600) | |||||||||
Issuance of subordinated debentures | 83,474 | ||||||||||
Proceeds from issuance of common stock | 68 | 155,581 | |||||||||
Cash dividends paid on common stock | (90,095) | (45,995) | |||||||||
Repurchase of common stock | (79,123) | (22,010) | |||||||||
Other, net | (596) | ||||||||||
Net cash (used in) provided by financing activities | (221,194) | (68,005) | 145,981 | ||||||||
Net increase in cash and cash equivalents | (64,319) | (35,225) | 100,751 | ||||||||
Cash and cash equivalents at beginning of period | $ 115,856 | $ 151,081 | 115,856 | 151,081 | 50,330 | ||||||
Cash and cash equivalents at end of period | $ 51,537 | $ 115,856 | $ 51,537 | $ 115,856 | $ 151,081 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | $ 1,438,274 | $ 1,359,056 | $ 1,080,498 |
Period change | 157,614 | (23,879) | 18,744 |
Balance | 2,460,846 | 1,438,274 | 1,359,056 |
Unrealized Gains (Losses) on Securities Available for Sale | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (24,279) | (2,160) | (21,819) |
Period change | 43,884 | (22,119) | 21,605 |
Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) | (1,946) | ||
Balance | 19,605 | (24,279) | (2,160) |
Unrealized Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (18,305) | (16,342) | (10,212) |
Period change | 113,402 | (1,963) | (2,982) |
Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) | (3,148) | ||
Balance | 95,097 | (18,305) | (16,342) |
Unrealized Gains (Losses) on Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (328) | (531) | (500) |
Period change | 328 | 203 | 121 |
Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) | (152) | ||
Balance | (328) | (531) | |
Accumulated OCI | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance | (42,912) | (19,033) | (32,531) |
Period change | 157,614 | (23,879) | 18,744 |
Reclassification of amounts within AOCI to retained earnings due to tax reform (Note 12) | (5,246) | ||
Balance | $ 114,702 | $ (42,912) | $ (19,033) |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Interest income | $ 207,618 | $ 213,149 | $ 217,124 | $ 222,185 | $ 143,857 | $ 131,753 | $ 123,963 | $ 113,093 | $ 860,076 | $ 512,666 | $ 396,867 | ||||||||
Interest expense | 46,709 | 52,962 | 56,337 | 52,896 | 40,711 | 33,653 | 28,579 | 21,982 | 208,903 | 124,925 | 70,651 | ||||||||
Net interest income | 160,909 | 160,187 | 160,787 | 169,289 | 103,146 | 98,100 | 95,384 | 91,111 | 651,173 | 387,741 | 326,216 | ||||||||
Provision for credit losses | 27,126 | 43,764 | 28,927 | 11,210 | 8,422 | (1,365) | 1,263 | 4,380 | 111,027 | 12,700 | 9,735 | ||||||||
Noninterest income | 33,898 | [1] | 34,642 | [1] | 31,722 | [1] | 30,664 | [1] | 21,007 | [2] | 23,976 | [2] | 24,672 | [2] | 24,983 | [2] | 130,925 | 94,638 | 99,874 |
Noninterest expense | 100,518 | 94,283 | 100,529 | 113,440 | 72,696 | 61,231 | 62,435 | 61,939 | 408,770 | 258,301 | 233,356 | ||||||||
Income before income taxes | 67,163 | 56,782 | 63,053 | 75,303 | 43,035 | 62,210 | 56,358 | 49,775 | 262,301 | 211,378 | 182,999 | ||||||||
Provision for income taxes | 15,738 | 12,796 | 14,707 | 17,102 | 10,709 | 15,074 | 8,384 | 10,950 | 60,343 | 45,117 | 80,646 | ||||||||
Net income | $ 51,425 | $ 43,986 | $ 48,346 | $ 58,201 | $ 32,326 | $ 47,136 | $ 47,974 | $ 38,825 | $ 201,958 | $ 166,261 | $ 102,353 | ||||||||
Earnings per common share (Basic) | $ 0.40 | $ 0.34 | $ 0.37 | $ 0.44 | $ 0.39 | $ 0.56 | $ 0.57 | $ 0.46 | $ 1.56 | $ 1.99 | $ 1.26 | ||||||||
Earnings per common share (Diluted) | $ 0.40 | $ 0.34 | $ 0.37 | $ 0.44 | $ 0.39 | $ 0.56 | $ 0.57 | $ 0.46 | $ 1.56 | $ 1.97 | $ 1.25 | ||||||||
[1] | Includes net securities gains (losses) of $317 thousand, $775 thousand, $938 thousand and $(12) thousand during the fourth, third, second and first quarters of 2019, respectively. | ||||||||||||||||||
[2] | Includes net securities gains (losses) of $(54) thousand, $2 thousand, $(1.8) million and $12 thousand during the fourth, third, second and first quarters of 2018, respectively |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Summary of Quarterly Results of Operations (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Securities gains (losses), net | $ 317 | $ 775 | $ 938 | $ (12) | $ (54) | $ 2 | $ (1,800) | $ 12 | $ 2,018 | $ (1,853) | $ (146) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) shares in Millions | 2 Months Ended | ||
Feb. 28, 2020 | Feb. 18, 2020 | Jul. 26, 2019 | |
Subsequent Event [Line Items] | |||
Share repurchase program authorized amount | $ 50,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock share repurchased | 1.8 | ||
Common stock share repurchased at cost | $ 29,900,000 | ||
Subsequent Event | Common Class A | |||
Subsequent Event [Line Items] | |||
Share repurchase program authorized amount | $ 100,000,000 |