Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | People's Utah Bancorp | ||
Entity Central Index Key | 0001636286 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Trading Symbol | PUB | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 18,907,153 | ||
Entity Public Float | $ 484,493,507 | ||
Entity File Number | 001-37416 | ||
Entity Tax Identification Number | 87-0622021 | ||
Entity Address, Address Line One | 1 East Main Street | ||
Entity Address, City or Town | American Fork | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84003 | ||
City Area Code | 801 | ||
Local Phone Number | 642-3998 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | UT | ||
Document Transition Report | false | ||
Document Annual Report | true | ||
Documents Incorporated by Reference | Portions of the Registrant’s Definitive Proxy Statement relating to the Annual Meeting of Shareholders, scheduled to be held on May 27, 2020, are incorporated by reference into Part III of this Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 38,987 | $ 39,471 |
Interest bearing deposits | 171,955 | 7,456 |
Federal funds sold | 1,039 | 1,620 |
Total cash and cash equivalents | 211,981 | 48,547 |
Investment securities: | ||
Available for sale, at fair value | 405,995 | 280,964 |
Held to maturity, at amortized cost | 65,462 | |
Total investment securities | 405,995 | 346,426 |
Non-marketable equity securities | 2,623 | 2,551 |
Loans held for sale | 18,669 | 10,267 |
Loans: | ||
Loans held for investment | 1,680,918 | 1,678,902 |
Allowance for loan losses | (31,426) | (25,245) |
Total loans held for investment, net | 1,649,492 | 1,653,657 |
Premises and equipment, net | 39,474 | 36,532 |
Goodwill | 25,673 | 25,673 |
Bank-owned life insurance (BOLI) | 27,037 | 26,433 |
Deferred income tax assets net | 9,716 | 11,514 |
Accrued interest receivable | 7,904 | 8,282 |
Other intangibles | 2,970 | 3,412 |
Other assets | 4,800 | 11,000 |
Total assets | 2,406,334 | 2,184,294 |
Deposits: | ||
Non-interest bearing deposits | 719,410 | 642,594 |
Interest bearing deposits | 1,336,957 | 1,234,461 |
Total deposits | 2,056,367 | 1,877,055 |
Accrued interest payable | 546 | 483 |
Other liabilities | 17,059 | 16,594 |
Total liabilities | 2,073,972 | 1,894,132 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred shares, $0.01 par value: 3,000,000 shares authorized, no shares issued | ||
Common shares, $0.01 par value: 30,000,000 shares authorized; 18,870,498 and 18,728,823 shares issued and outstanding as of December 31, 2019 and December 31, 2018, respectively | 189 | 187 |
Additional paid-in capital | 87,913 | 86,308 |
Retained earnings | 242,878 | 207,779 |
Accumulated other comprehensive income / (loss) | 1,382 | (4,112) |
Total shareholders’ equity | 332,362 | 290,162 |
Total liabilities and shareholders’ equity | $ 2,406,334 | $ 2,184,294 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred shares, par value | $ 0.01 | $ 0.01 |
Preferred shares, authorized | 3,000,000 | 3,000,000 |
Preferred shares, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 18,870,498 | 18,728,823 |
Common stock, shares outstanding | 18,870,498 | 18,728,823 |
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 | $ 108,530 | $ 108,498 | $ 76,965 |
Interest and dividends on investments | 10,519 | 6,854 | 7,015 |
Total interest income | 119,049 | 115,352 | 83,980 |
Interest expense | 9,131 | 7,174 | 3,342 |
Net interest income | 109,918 | 108,178 | 80,638 |
Provision for loan losses | 7,000 | 8,625 | 2,750 |
Net interest income after provision for loan losses | 102,918 | 99,553 | 77,888 |
Non-interest income | |||
Mortgage banking | 6,785 | 6,209 | 7,536 |
Card processing | 3,242 | 3,097 | 2,790 |
Service charges on deposit accounts | 2,807 | 2,840 | 2,445 |
Net (loss)/gain on sale of investment securities | (4) | 336 | (499) |
Other operating | 2,351 | 2,647 | 2,122 |
Total non-interest income | 15,181 | 15,129 | 14,394 |
Non-interest expense | |||
Salaries and employee benefits | 38,502 | 39,902 | 34,392 |
Occupancy, equipment and depreciation | 6,034 | 6,010 | 4,827 |
Data processing | 3,902 | 3,515 | 2,798 |
Marketing and advertising | 1,828 | 1,288 | 1,381 |
FDIC premiums | 249 | 1,019 | 572 |
Acquisition-related costs | 232 | 4,784 | |
Other | 9,757 | 10,030 | 7,205 |
Total non-interest expense | 60,272 | 61,996 | 55,959 |
Income before income tax expense | 57,827 | 52,686 | 36,323 |
Income tax expense | 13,503 | 12,054 | 16,477 |
Net income | $ 44,324 | $ 40,632 | $ 19,846 |
Earnings per common share: | |||
Basic | $ 2.35 | $ 2.18 | $ 1.10 |
Diluted | $ 2.33 | $ 2.14 | $ 1.08 |
Weighted average common shares outstanding: | |||
Basic | 18,822,103 | 18,679,165 | 18,019,643 |
Diluted | 19,017,047 | 18,982,521 | 18,447,621 |
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 | $ 44,324 | $ 40,632 | $ 19,846 |
Other comprehensive income/(loss) | |||
Unrealized holding gains/(losses) on securities available for sale | 7,324 | (2,678) | (1,168) |
Tax effect | (1,830) | 669 | 447 |
Unrealized holding gains/(losses) on securities available for sale, net of tax | 5,494 | (2,009) | (721) |
Comprehensive income | $ 49,818 | $ 38,623 | $ 19,125 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
Balance, beginning at Dec. 31, 2016 | $ 228,517 | $ 178 | $ 68,657 | $ 160,692 | $ (1,010) |
Balance, beginning, Shares at Dec. 31, 2016 | 17,819,538 | ||||
Net income | 19,846 | 19,846 | |||
Other comprehensive income (loss) | (721) | (721) | |||
Cash dividends declared | (6,106) | (6,106) | |||
Share-based compensation | 510 | 510 | |||
Reclassification of deferred tax rate change related to AOCI | 372 | (372) | |||
Issuance of common shares | 13,977 | $ 5 | 13,972 | ||
Issuance of common shares, shares | 466,546 | ||||
Exercise of stock options and vested restricted stock units | 1,395 | $ 2 | 1,393 | ||
Exercise of stock options and vested restricted stock units, shares | 225,713 | ||||
Balance, ending at Dec. 31, 2017 | 257,418 | $ 185 | 84,532 | 174,804 | (2,103) |
Balance, ending, Shares at Dec. 31, 2017 | 18,511,797 | ||||
Net income | 40,632 | 40,632 | |||
Other comprehensive income (loss) | (2,009) | (2,009) | |||
Cash dividends declared | (7,657) | (7,657) | |||
Share-based compensation | 891 | 891 | |||
Exercise of stock options and vested restricted stock units | 887 | $ 2 | 885 | ||
Exercise of stock options and vested restricted stock units, shares | 217,026 | ||||
Balance, ending at Dec. 31, 2018 | $ 290,162 | $ 187 | 86,308 | 207,779 | (4,112) |
Balance, ending, Shares at Dec. 31, 2018 | 18,728,823 | 18,728,823 | |||
Net income | $ 44,324 | 44,324 | |||
Other comprehensive income (loss) | 5,494 | 5,494 | |||
Cash dividends declared | (9,225) | (9,225) | |||
Share-based compensation | 1,011 | 1,011 | |||
Exercise of stock options and vested restricted stock units | 596 | $ 2 | 594 | ||
Exercise of stock options and vested restricted stock units, shares | 141,675 | ||||
Balance, ending at Dec. 31, 2019 | $ 332,362 | $ 189 | $ 87,913 | $ 242,878 | $ 1,382 |
Balance, ending, Shares at Dec. 31, 2019 | 18,870,498 | 18,870,498 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 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 | |
Statement Of Stockholders Equity [Abstract] | |||||||||||
Cash dividends declared per share | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.09 | $ 0.49 | $ 0.41 | $ 0.34 |
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 | $ 44,324 | $ 40,632 | $ 19,846 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for loan losses | 7,000 | 8,625 | 2,750 |
Depreciation and amortization | 3,396 | 3,281 | 2,612 |
(Increase) decrease in deferred income taxes | (34) | (2,017) | 3,990 |
Net amortization of securities discounts and premiums | 2,363 | 2,628 | 2,822 |
Share-based compensation | 1,011 | 891 | 510 |
Increase in cash surrender value of BOLI | (604) | (617) | (520) |
Gain on sale of loans held for sale, net of capitalized servicing rights | (4,529) | (3,925) | (5,459) |
Originations of loans held for sale | (229,987) | (211,577) | (233,055) |
Proceeds from sale of loans held for sale | 226,114 | 216,106 | 248,469 |
Net changes in: | |||
Accrued interest receivable | 378 | (688) | (2,037) |
Other assets | 6,735 | (607) | 1,500 |
Accrued interest payable | 63 | 130 | 48 |
Other liabilities | (1,470) | 5,468 | (4,062) |
Net cash provided by operating activities | 54,760 | 58,330 | 37,414 |
Cash flows from investing activities: | |||
Net cash used in acquisition-related activities | (112,247) | ||
Net change in loans held for investment | (2,835) | (55,716) | (148,032) |
Purchase of available for sale securities | (152,054) | (66,262) | (68,425) |
Purchase of held to maturity securities | (12,198) | ||
Maturities/sales of available for sale securities | 96,076 | 43,810 | 147,351 |
Maturities of held to maturity securities | 1,370 | 8,430 | 10,278 |
Purchase of bank-owned life insurance | (2,250) | ||
Purchase of premises and equipment | (6,791) | (10,171) | (7,506) |
Proceeds from sale of assets | 2,297 | 783 | 167 |
Proceeds from sale of other real estate owned, net of improvements | 3,758 | 587 | |
Purchase of non-marketable equity securities | (4,032) | (25,955) | (4,835) |
Proceeds from sale of non-marketable equity securities | 3,960 | 27,110 | 2,956 |
Net cash used in investing activities | (62,009) | (76,463) | (191,904) |
Cash flows from financing activities: | |||
Net increase in deposits | 179,312 | 62,423 | 105,489 |
Exercise of stock options | 596 | 887 | 1,395 |
Net change in short-term borrowings | (40,000) | 36,801 | |
Cash dividends paid | (9,225) | (7,657) | (6,106) |
Net cash provided by financing activities | 170,683 | 15,653 | 137,579 |
Net change in cash and cash equivalents | 163,434 | (2,480) | (16,911) |
Cash and cash equivalents, beginning of year | 48,547 | 51,027 | 67,938 |
Cash and cash equivalents, end of year | 211,981 | 48,547 | 51,027 |
Supplemental disclosures of cash flow information: | |||
Cash paid for interest | 9,068 | 7,043 | 3,294 |
Income taxes paid | 12,560 | 13,830 | 13,429 |
Supplemental disclosures of non-cash transactions: | |||
Reclassifications from loans to other real estate owned | 3,320 | 1,419 | |
Unrealized gains/(losses) on securities available for sale | $ 7,324 | (2,678) | (1,168) |
Measurement period adjustment to goodwill | $ (335) | ||
Acquisitions: | |||
Assets acquired | 416,595 | ||
Liabilities assumed | $ 290,371 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | PEOPLE’S UTAH BANCORP AND SUBSIDIARIES Note 1 —Summary of Significant Accounting Policies Nature of Operations and basis of consolidation — People’s Utah Bancorp, Inc. (“PUB” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, Altabank TM (the “Bank”), which was organized in 1913. Altabank TM is a Utah state-chartered bank. Altabank TM operates under the jurisdiction of the Utah Department of Financial Institutions (“UDFI”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). Altabank TM is not a member of the Federal Reserve System; however, PUB is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of Altabank TM . Both PUB and Altabank TM are subject to periodic examination by all of the applicable federal and state regulatory agencies and file periodic reports and other information with the agencies. The Company considers Altabank TM to be its sole operating segment. Altabank TM TM TM TM TM The consolidated financial statements include the accounts of the Company together with its subsidiary. All intercompany transactions and balances have been eliminated. Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (“ALLL”), the determination of the fair value of certain financial instruments, the valuation of real estate acquired through foreclosure, deferred income tax assets, and share-based compensation. Reclassifications — Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. Business Combinations — Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at fair value on the acquisition date. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. Expenses incurred in connection with a business combination are expensed as incurred. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. Note 1 —Summary of Significant Accounting Policies – Continued Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified at HTM are carried at amortized cost. Investment securities classified at AFS are reported at fair value. As the fair value of AFS securities changes, the changes are reported (net of tax, if applicable) in comprehensive income and as an element of accumulated other comprehensive income/loss (“AOCI”) in shareholder’s equity. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. When the estimated fair value of a security is lower than the book value, a security is considered temporarily impaired. On a quarterly basis, Management evaluates any securities in a loss position to determine whether the impairment is other-than-temporary. If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired (“OTTI”) and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Interest income is recognized based on the coupon rate, and is increased by the accretion of discounts earned or decreased by the amortization of premiums paid. The amortization of premiums or the accretion of discounts are recognized in interest income using the effective interest method over the period of maturity. Non-marketable equity securities — Non-marketable equity securities primarily consist of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to the restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Bank’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. Note 1 —Summary of Significant Accounting Policies – Continued Loans held for sale —Single-family residential mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Loans with best effort delivery commitments are carried at the lower of aggregate cost or estimated fair value. Loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Substantially all of the residential mortgage loans originated are sold to larger financial institutions. Loans held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. Loans are placed on non-accrual status when they become 90 days or more past due or at such earlier time as management determines timely recognition of interest to be in doubt. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, collection efforts, and the borrower’s financial condition, that the borrower will be unable to make payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received, or payment is considered certain. Loans may be returned to accrual status when all delinquent interest and principal amounts contractually due are brought current and future payments are reasonably assured. Impaired loans — The Company considers loans impaired when, based on current information and events, it is probable the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Such loans are generally classified as Substandard or Doubtful loans (see Note 3). Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral, if the loan is collateral dependent. Changes in these values are recorded to provision for loan losses and as adjustments to the ALLL. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Note 1 —Summary of Significant Accounting Policies – Continued Acquired loans - Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Should the Company’s allowance for credit losses methodology indicate that the credit discount associated with acquired, non-purchased credit impaired loans is no longer sufficient to cover probable losses inherent in those loans; the Company will establish an allowance for those loans through a charge to provision for loan losses. At the time of an acquisition, the Company evaluates loans to determine if they are purchase credit impaired (“PCI”) loans. PCI loans are those acquired loans with evidence of credit deterioration for which it was probable at acquisition that the Company would be unable to collect all contractual payments. The Company makes this determination by considering past due and/or nonaccrual status, prior designation of a troubled debt restructuring, or other factors that may suggest we will not be able to collect all contractual payments. The non-accretable difference on PCI loans is not accreted to interest income. The accounting for PCI loans is periodically updated for changes in cash flow expectations, and reflected in interest income over the life of the loans as accretable yield. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. An acquired loan previously classified by the seller as a troubled debt restructuring is no longer classified as such at the date of acquisition. Past due status is reported based on contractual payment status. Allowance for loan losses — Credit risk is inherent in the business of extending loans and leases to borrowers. Normally, this credit risk is addressed through a valuation allowance termed ALLL. The ALLL represents a creditor’s estimate of loan losses inherent within the loan portfolio at each balance sheet date. Netted against the outstanding loan balance, this allowance reduces the balance to the creditor’s estimate of what will be collected from borrowers. The ALLL is established through charges to current period earnings by recording a provision for loan losses. When losses become specifically identifiable and quantifiable, the loan balance is reduced through recording a charge-off against the ALLL. Should payments be received on charged-off loans, the payment is credited to the allowance as a recovery. Charge-offs of loans are generally processed by policy as well as by regulatory guidance. Secured consumer loans, including residential real estate loans, that are 120 days past due, are written down to the fair value of the collateral. Unsecured loans are charged-off once the loan is 120 days past due. Decisions on when to charge-off commercial loans and loans secured by commercial real estate are made on an individual basis rather than length of delinquency, though it is a factor in the decision. The financial resources of the borrower and/or guarantor and the nature and value of any collateral are other factors considered. The ALLL is based on a continuing review of loans, which includes consideration of actual loss experience, changes in the size and character of the portfolio, identification of individual problem situations that may affect the borrower’s ability to repay, evaluations of the prevailing and anticipated economic conditions, and other qualitative factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision, as more information becomes available. The ALLL consists of specific and general components. The specific component relates to loans determined to be impaired which are individually evaluated for impairment. For impaired loans individually evaluated, an allowance is established when the discounted cash flows, or the fair value of the collateral, if the loan is collateral dependent, of the impaired loan is lower than the carrying value of the loan. The general component covers all loans not individually evaluated for impairment and is based on historical loss experience adjusted for qualitative factors. Various qualitative factors are considered including changes to underwriting policies, loan concentrations, volume and mix of loans, size and complexity of individual credits, locations of credits and new market areas, changes in local and national economic conditions, real estate foreclosure rates, and trends in past due and classified credits. Note 1 —Summary of Significant Accounting Policies – Continued Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. Bank-Owned Life Insurance (“BOLI”) — The Bank has purchased life insurance policies. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Bank’s intent to hold these policies as a long-term investment; however, there may be an income tax impact if the Bank chooses to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Bank is the owner and sole or partial beneficiary. BOLI is carried at the cash surrender value (“CSV”) of the underlying insurance contract. Changes in the CSV and any death benefits received in excess of the CSV are recognized as non-interest income. Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit's estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. Other Intangible Assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets are reviewed at least annually for events or circumstances that could affect their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable; impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. Mortgage and Other Servicing Rights — Mortgage and other servicing rights are recognized as separate assets when rights are acquired through purchase of such rights or through the sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For loans sold, the fair value of the servicing rights are estimated and capitalized. Fair value is based on market prices for comparable servicing rights contracts. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Note 1 —Summary of Significant Accounting Policies – Continued Other real estate owned — Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the carrying amount of the foreclosed loan or the fair value of the foreclosed asset, less costs to sell, at the date of foreclosure. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value, less selling costs. Revenues and expenses from operations and changes in the valuation allowance are included in other real estate owned expense. Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Income taxes — Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. Share-based compensation plans — The fair value of incentive share-based awards is recorded as compensation expense over the vesting period of the award. Compensation expense for stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Compensation expense for RSU’s is based on the fair value of the Company’s common shares at the date of grant. RSU awards generally vest in thirds over three years from date of grant. Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding RSUs. Note 1 —Summary of Significant Accounting Policies – Continued Earnings per common share have been computed based on the following: Year ended December 31, (Dollars in thousands, except share and share data) 2019 2018 2017 Numerator Net income $ 44,324 $ 40,632 $ 19,846 Denominator Weighted-average number of common shares outstanding 18,822,103 18,679,165 18,019,643 Incremental shares assumed for stock options and RSUs 194,944 303,356 427,978 Weighted-average number of dilutive shares outstanding 19,017,047 18,982,521 18,447,621 Basic earnings per common share $ 2.35 $ 2.18 $ 1.10 Diluted earnings per common share $ 2.33 $ 2.14 $ 1.08 Comprehensive income — U.S. GAAP generally requires that recognized revenues, 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, net of the related income tax effect, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. Advertising costs — Advertising costs are expensed when incurred and totaled $1.8 million in 2019, $1.3 million in 2018, and $1.4 million in 2017. Impact of Recent Authoritative Accounting Guidance — The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In December 2019, FASB issued ASU 2019-12, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Note 1 —Summary of Significant Accounting Policies – Continued In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2018, FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The ASU removes, modifies and adds disclosure requirements in Topic 820. The following disclosure requirements were removed: 1) the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy for timing of transfers between levels, and 3) the valuation processes for Level 3 fair value measurements. This ASU modified disclosure requirements by requiring that the measurement uncertainty disclosure communicates information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: 1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and 2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. Adoption of ASU 2018-13 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements. The amendments in this ASU provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). In addition, the amendments in this ASU provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606). The amendments of this ASU became effective for the Company on January 1, 2019. Note 1 —Summary of Significant Accounting Policies – Continued In August 2017, FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU are intended to provide investors better insight to an entity's risk management hedging strategies by permitting a company to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The Company adopted this ASU effective January 1, 2019. The adoption of this ASU did not have an impact on the Company's Consolidated Financial Statements. In March 2017, FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The ASU requires entities to amortize the premium on certain purchased callable debt securities to the earliest call date, which more closely aligns the amortization period of premiums and discounts to expectations incorporated in the market prices. Entities will no longer recognize a loss in earnings upon the debtor's exercise of a call on a purchased debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; therefore, the discount will continue to be amortized as an adjustment of yield over the contractual life of the investment. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted ASU 2017-08 on January 1, 2019 and it did not have a material impact on the Company's Consolidated Financial Statements. In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU significantly changes the accounting |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 2 — Investment Securities Amortized cost and approximate fair values of investment securities available for sale are summarized as follows: Gross Unrealized Losses Gross Less Amortized Unrealized Than 12 Months Fair (Dollars in thousands) Cost Gain 12 Months or Longer Value As of December 31, 2019 U.S. Government-sponsored securities $ 20,957 $ 235 $ - $ (2 ) $ 21,190 Municipal securities 56,252 670 (1 ) (9 ) 56,912 Mortgage-backed securities 321,944 2,188 (481 ) (543 ) 323,108 Corporate securities 5,000 - - (215 ) 4,785 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 As of December 31, 2018 U.S. Government-sponsored securities $ 48,954 $ - $ - $ (588 ) $ 48,366 Municipal securities 10,274 59 (12 ) (53 ) 10,268 Mortgage-backed securities 222,218 218 (156 ) (4,523 ) 217,757 Corporate securities 5,000 - (23 ) (404 ) 4,573 $ 286,446 $ 277 $ (191 ) $ (5,568 ) $ 280,964 Note 2 — Investment Securities – Continued Carrying amounts and estimated fair values of securities held to maturity are as follows: Gross Unrealized Losses Gross Less Amortized Unrealized Than 12 Months Fair (Dollars in thousands) Cost Gain 12 Months or Longer Value As of December 31, 2019 Municipal securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - As of December 31, 2018 Municipal securities $ 65,462 $ 28 $ (39 ) $ (685 ) $ 64,766 $ 65,462 $ 28 $ (39 ) $ (685 ) $ 64,766 The gross unrealized losses and the fair value for securities available for sale and held to maturity are as follows: December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 5,998 $ (2 ) $ 5,998 $ (2 ) Municipal securities 3,060 (1 ) 1,338 (9 ) 4,398 (10 ) Mortgage-backed securities 115,243 (481 ) 70,383 (543 ) 185,626 (1,024 ) Corporate securities - - 4,785 (215 ) 4,785 (215 ) $ 118,303 $ (482 ) $ 82,504 $ (769 ) $ 200,807 $ (1,251 ) Held to Maturity Municipal securities $ - $ - $ - $ - $ - $ - December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 48,366 $ (588 ) $ 48,366 $ (588 ) Municipal securities 1,701 (12 ) 4,095 (53 ) 5,796 (65 ) Mortgage-backed securities 35,155 (156 ) 150,569 (4,523 ) 185,724 (4,679 ) Corporate securities 1,977 (23 ) 2,596 (404 ) 4,573 (427 ) $ 38,833 $ (191 ) $ 205,626 $ (5,568 ) $ 244,459 $ (5,759 ) Held to Maturity Municipal securities $ 9,163 $ (39 ) $ 46,996 $ (685 ) $ 56,159 $ (724 ) Note 2 — Investment Securities – Continued The amortized cost and estimated fair values of investment securities that are available for sale and held to maturity at December 31, 2019, by contractual maturity, are as follows: Available for sale Held to maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Securities maturing in: One year or less $ 24,499 $ 24,544 $ - $ - After one year through five years 52,563 52,893 - - After five years through ten years 56,694 56,973 - - After ten years 270,397 271,585 - - $ 404,153 $ 405,995 $ - $ - Expected maturities may differ from contractual maturities because issuers may have the right to call obligations with or without penalties. As of December 31, 2019 and 2018, the Company held 146 and 201 available for sale investment securities with fair values less than amortized cost, respectively. In addition, the Company did not hold any held to maturity securities at December 31, 2019. The Company held 122 held to maturity securities with fair values less than amortized cost at December 31, 2018. Management evaluated these investment securities and determined that the decline in value is temporary and related to the change in market interest rates since purchase. The decline in value is not related to any company or industry specific event. The Company anticipates full recovery of the amortized cost with respect to these securities at maturity, or sooner in the event of a more favorable market interest rate environment. The Company had sales of available for sale securities totaling $2.1 million during the year ended December 31, 2019, which resulted in a net loss of $4,000 compared with $500,000 during the year ended December 31, 2018, which resulted in a net loss of $336,000 and $126.2 million during the year ended December 31, 2017 which resulted in a net loss of $486,000. There were no available for sale securities in a nonaccrual status at December 31, 2019, 2018, and 2017. During the year ended December 31, 2019, the Company elected to make a one-time transfer of 140 securities from the held to maturity classification of $64.6 million to the available for sale classification, and recorded an unrecognized loss of $19,000, net of taxes, to other comprehensive income. The Company had no sales of held to maturity securities during the years ended December 31, 2019 and 2018 respectively, compared to $204,000 during the year ended December 31, 2017, which resulted in a net loss of $13,000. The company had no held to maturity securities in a nonaccrual status at December 31, 2019, 2018, and 2017. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Note 3 — Loans and Allowance for Loan Losses Loans are summarized as follows: (Dollars in thousands) 2019 2018 Loans held for investment: Commercial real estate loans: Real estate term $ 948,073 $ 891,131 Construction and land development 273,963 324,506 Total commercial real estate loans 1,222,036 1,215,637 Commercial and industrial loans 284,738 295,569 Consumer loans: Residential and home equity 162,559 155,601 Consumer and other 16,036 16,621 Total consumer loans 178,595 172,222 Gross loans held for investment 1,685,369 1,683,428 Less: Net deferred loan fees (4,451 ) (4,526 ) Loans held for investment 1,680,918 1,678,902 Less: allowance for loan losses (31,426 ) (25,245 ) Loans held for investment, net $ 1,649,492 $ 1,653,657 Changes in the allowance for loan losses are as follows: Year Ended December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Provisions for loan losses 2,401 (917 ) 5,157 370 (11 ) 7,000 Charge-offs (118 ) (5 ) (2,644 ) (19 ) (360 ) (3,146 ) Recoveries 24 890 1,152 38 223 2,327 Balance at end of year $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Year Ended December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Provisions for loan losses 3,414 587 4,464 (170 ) 330 8,625 Charge-offs (294 ) (1 ) (2,801 ) — (369 ) (3,465 ) Recoveries 142 127 1,250 84 179 1,782 Balance at end of year $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Note 3 — Loans and Allowance for Loan Losses – Continued Year Ended December 31, 2017 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 6,770 $ 5,449 $ 3,718 $ 617 $ 161 $ 16,715 Provisions for loan losses 67 731 1,423 406 123 2,750 Charge-offs (350 ) - (1,098 ) (359 ) (231 ) (2,038 ) Recoveries 219 129 271 151 106 876 Balance at end of year $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Non-accrual loans are summarized as follows: (Dollars in thousands) 2019 2018 Non-accrual loans, not troubled debt restructured: Real estate term $ 2,416 $ 309 Construction and land development 60 - Commercial and industrial 1,550 347 Residential and home equity 45 - Consumer and other 8 - Total non-accrual loans, not troubled debt restructured 4,079 656 Troubled debt restructured loans, non-accrual: Real estate term 2,393 1,449 Construction and land development - - Commercial and industrial 658 150 Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 3,051 1,599 Total non-accrual loans $ 7,130 $ 2,255 As of December 31, 2019 and 2018, there were $1.66 million and $2.24 million, respectively, in purchased credit impaired loans (“PCI”) that were not performing to the original contractual terms. Including these PCI loans, total non-accrual loans were $8.8 million and $4.5 million at December 31, 2019 and 2018, respectively. Troubled debt restructured (“TDR”) loans are summarized as follows: (Dollars in thousands) 2019 2018 Accruing troubled debt restructured loans $ 25,346 $ 5,912 Non-accrual troubled debt restructured loans 3,051 1,599 Total troubled debt restructured loans $ 28,397 $ 7,511 There were no PCI TDR non-performing loans as of December 31, 2019 and 2018, respectively. Note 3 — Loans and Allowance for Loan Losses – Continued A restructured loan is considered a troubled debt restructured loan, if the Company, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession in terms or a below-market interest rate to the debtor that it would not otherwise consider. Each TDR loan is separately negotiated with the borrower and includes terms and conditions that reflect the borrower’s prospective ability to service the debt as modified. The following tables present TDRs that occurred during the periods presented and the TDRs for which the payment default occurred within twelve months of the restructure date. A default on a restructured loan results in a transfer to nonaccrual status, a charge-off or a combination of both. Year Ended December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) (2) Number of loans 9 1 32 5 - 47 Pre-modification balance $ 6,846 $ 4,075 $ 12,683 $ 1,647 $ - $ 25,251 Post-modification balance $ 6,846 $ 4,075 $ 12,683 $ 1,647 $ - $ 25,251 TDRs that subsequently defaulted Number of loans 1 - 1 - - 2 Pre-modification balance $ 1,094 $ - $ 18 $ - $ - $ 1,112 Year Ended December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) (2) Number of loans 4 - 6 1 - 11 Pre-modification balance $ 3,434 $ - $ 1,460 $ 532 $ - $ 5,426 Post-modification balance $ 3,434 $ - $ 1,460 $ 532 $ - $ 5,426 TDRs that subsequently defaulted Number of loans 2 - 3 - - 5 Pre-modification balance $ 1,449 $ - $ 150 $ - $ - $ 1,599 (1) (2) Generally, these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. Note 3 — Loans and Allowance for Loan Losses – Continued Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: December 31, 2019 30-89 90+ Purchased Days Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 942,370 $ 534 $ - $ 4,809 $ 5,343 $ 360 $ 948,073 Construction and land development 273,268 570 - 60 630 65 273,963 Total commercial real estate 1,215,638 1,104 - 4,869 5,973 425 1,222,036 Commercial and industrial 279,072 403 - 2,208 2,611 3,055 284,738 Consumer: Residential and home equity 162,360 154 - 45 199 - 162,559 Consumer and other 15,727 298 3 8 309 - 16,036 Total consumer 178,087 452 3 53 508 - 178,595 Total gross loans $ 1,672,797 $ 1,959 $ 3 $ 7,130 $ 9,092 $ 3,480 $ 1,685,369 December 31, 2018 30-89 90+ Purchased Days Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 886,974 $ 1,467 $ - $ 1,758 $ 3,225 $ 932 $ 891,131 Construction and land development 321,389 2,833 - - 2,833 284 324,506 Total commercial real estate 1,208,363 4,300 - 1,758 6,058 1,216 1,215,637 Commercial and industrial 288,328 3,225 - 497 3,722 3,519 295,569 Consumer: Residential and home equity 154,368 1,233 - - 1,233 - 155,601 Consumer and other 16,180 424 17 - 441 - 16,621 Total consumer 170,548 1,657 17 - 1,674 - 172,222 Total gross loans $ 1,667,239 $ 9,182 $ 17 $ 2,255 $ 11,454 $ 4,735 $ 1,683,428 Loans 90+ days past due are still accruing. Included in purchased credit impaired loans are $1.66 million and $ 2.24 million that are not performing to the original contractual terms as of December 31, 2019 and 2018, respectively. Credit Quality Indicators: In addition to past due and non-accrual criteria, the Company also analyzes loans using a loan grading system. Performance-based grading follows the Company’s definitions of Pass, Special Mention, Substandard and Doubtful, which are consistent with published definitions of regulatory risk classifications and are summarized as follows: Note 3 — Loans and Allowance for Loan Losses – Continued Pass : A Pass asset is higher quality and does not fit any of the other categories described below. The likelihood of loss is considered remote. Special Mention : A Special Mention asset has potential weaknesses that may be temporary or, if left uncorrected, may result in a loss. While concerns exist, the Company is currently protected and loss is considered unlikely and not imminent. Substandard : A Substandard asset is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well defined weaknesses and are characterized by the distinct possibility that the Company may sustain some loss if deficiencies are not corrected. Doubtful : A Doubtful asset has all the weaknesses inherent in a substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable. For consumer loans, the Company generally assigns internal risk grades similar to those described above based on payment performance. Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: December 31, 2019 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 901,353 $ 23,202 $ 23,518 $ - $ 948,073 $ 12,275 Construction and land development 259,245 10,182 4,536 - 273,963 6,990 Total commercial real estate 1,160,598 33,384 28,054 - 1,222,036 19,265 Commercial and industrial 259,035 6,629 19,074 - 284,738 10,892 Consumer loans: Residential and home equity 158,364 204 3,991 - 162,559 1,118 Consumer and other 16,034 - 2 - 16,036 151 Total consumer 174,398 204 3,993 - 178,595 1,269 Total $ 1,594,031 $ 40,217 $ 51,121 $ - $ 1,685,369 $ 31,426 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 865,472 $ 14,339 $ 11,320 $ - $ 891,131 $ 9,968 Construction and land development 322,625 1,332 549 - 324,506 7,022 Total commercial real estate 1,188,097 15,671 11,869 - 1,215,637 16,990 Commercial and industrial 271,825 10,138 13,606 - 295,569 7,227 Consumer loans: Residential and home equity 150,590 620 4,391 - 155,601 729 Consumer and other 16,574 29 18 - 16,621 299 Total consumer 167,164 649 4,409 - 172,222 1,028 Total $ 1,627,086 $ 26,458 $ 29,884 $ - $ 1,683,428 $ 25,245 The ALLL and outstanding loan balances reviewed according to the Company’s impairment method are summarized as follows: December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 825 $ 1,305 $ 4,901 $ 401 $ - $ 7,432 Collectively evaluated for impairment 11,255 5,669 5,991 717 151 23,783 Purchased credit-impaired loans 195 16 - - - 211 Total $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Outstanding loan balances: Individually evaluated for impairment $ 18,305 $ 4,474 $ 14,467 $ 3,701 $ - $ 40,947 Collectively evaluated for impairment 929,408 269,424 267,216 158,858 16,036 1,640,942 Purchased credit-impaired loans 360 65 3,055 - - 3,480 Total gross loans $ 948,073 $ 273,963 $ 284,738 $ 162,559 $ 16,036 $ 1,685,369 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 324 $ - $ 1,781 $ 55 $ - $ 2,160 Collectively evaluated for impairment 9,644 7,022 5,446 674 299 23,085 Purchased credit-impaired loans - - - - - - Total $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Outstanding loan balances: Individually evaluated for impairment $ 9,689 $ 268 $ 9,581 $ 4,095 $ - $ 23,633 Collectively evaluated for impairment 880,510 323,954 282,469 151,506 16,621 1,655,060 Purchased credit-impaired loans 932 284 3,519 - - 4,735 Total gross loans $ 891,131 $ 324,506 $ 295,569 $ 155,601 $ 16,621 $ 1,683,428 Information on impaired loans is summarized as follows: December 31, 2019 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 18,305 $ 11,684 $ 6,621 $ 18,305 $ 825 Construction and land development 4,474 121 4,353 4,474 1,305 Total commercial real estate 22,779 11,805 10,974 22,779 2,130 Commercial and industrial 14,467 2,591 11,876 14,467 4,901 Consumer loans: Residential and home equity 3,701 3,194 507 3,701 401 Consumer and other - - - - - Total consumer 3,701 3,194 507 3,701 401 Total $ 40,947 $ 17,590 $ 23,357 $ 40,947 $ 7,432 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 9,689 $ 3,823 $ 5,866 $ 9,689 $ 324 Construction and land development 997 268 - 268 - Total commercial real estate 10,686 4,091 5,866 9,957 324 Commercial and industrial 10,113 5,494 4,087 9,581 1,781 Consumer loans: Residential and home equity 4,095 3,046 1,049 4,095 55 Consumer and other - - - - - Total consumer 4,095 3,046 1,049 4,095 55 Total $ 24,894 $ 12,631 $ 11,002 $ 23,633 $ 2,160 The interest income recognized on impaired loans was as follows: Year Ended December 31, 2019 2018 2017 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 14,516 $ 747 $ 8,027 $ 332 $ 6,489 $ 187 Construction and land development 3,668 274 1,499 106 3,107 137 Total commercial real estate 18,184 1,021 9,526 438 9,596 324 Commercial and industrial 12,496 780 8,049 426 7,552 276 Consumer loans: Residential and home equity 3,458 197 2,409 118 1,313 46 Consumer and other - - - - - - Total consumer 3,458 197 2,409 118 1,313 46 Total $ 34,138 $ 1,998 $ 19,984 $ 982 $ 18,461 $ 646 Purchased credit-impaired loans and purchased non-credit-impaired loans -- Purchased loans, including loans acquired in business combinations, are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan and lease losses is not recorded at the acquisition date. Acquired loans are evaluated upon acquisition and classified as either PCI or purchased non-credit-impaired. PCI loans reflect credit deterioration since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. The outstanding contractual unpaid principal balance of PCI loans, excluding acquisition accounting adjustments, was $6.2 million and $7.7 million at December 31, 2019 and 2018, respectively. The carrying balance of PCI loans was $3.5 million and $4.7 million at December 31, 2019 and 2018, respectively. Note 3 — Loans and Allowance for Loan Losses – Continued The following table presents the changes in the accretable yield for purchased loans for December 31, 2019, and 2018: December 31, (Dollars in thousands) 2019 2018 Balance, beginning of period $ 5,884 $ 8,536 Accretion to interest income (1,818 ) (2,866 ) Additions from acquisitions - - Reclassification from non-accretable difference 181 214 Balance, end of period $ 4,247 $ 5,884 The following table presents the changes in the non-accretable yield for purchased loans for December 31, 2019, and 2018: December 31, (Dollars in thousands) 2019 2018 Balance, beginning of period $ 2,942 $ 3,739 Additions from acquisitions - - Loans charged off - (583 ) Reclassification to accretable (181 ) (214 ) Balance, end of period $ 2,761 $ 2,942 Note 3 — Loans and Allowance for Loan Losses – Concluded The following table summarizes the balance of purchased loans as of December 31, 2019 and 2018: December 31, 2019 (Dollars in thousands) Performing Purchased Loans PCI Loans Total Acquired Loans Commercial real estate loans: Real estate term $ 155,644 $ 360 $ 156,004 Construction and land development 361 65 426 Total commercial real estate loans 156,005 425 156,430 Commercial and industrial loans 14,287 3,055 17,342 Consumer loans: Residential and home equity 21,963 - 21,963 Consumer and other 576 - 576 Total consumer loans 22,539 - 22,539 Total loans carrying balance $ 192,831 $ 3,480 $ 196,311 Total loans unpaid principal balance $ 197,094 $ 6,241 $ 203,335 December 31, 2018 (Dollars in thousands) Performing Purchased Loans PCI Loans Total Acquired Loans Commercial real estate loans: Real estate term $ 194,904 $ 932 $ 195,836 Construction and land development 7,801 284 8,085 Total commercial real estate loans 202,705 1,216 203,921 Commercial and industrial loans 34,492 3,519 38,011 Consumer loans: Residential and home equity 24,194 - 24,194 Consumer and other 940 - 940 Total consumer loans 25,134 - 25,134 Total loans carrying balance $ 262,331 $ 4,735 $ 267,066 Total loans unpaid principal balance $ 268,215 $ 7,677 $ 275,892 Loans to affiliates — The Company has entered into loan transactions with certain directors and executive committee members (“affiliates”). Such transactions were made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other clients, and did not, in the opinion of management, involve more than normal credit risk or present other unfavorable features. Total outstanding loans with affiliates were $5.4 million and $5.6 million at December 31, 2019, and 2018, respectively. Available lines of credit for loans and credit cards to affiliates were $278,000 at December 31, 2019. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 4 — Premises and Equipment Premises and equipment are summarized as follows as of December 31: (Dollars in thousands) 2019 2018 Land and buildings $ 45,426 $ 45,060 Equipment, furniture, and software 27,691 24,095 73,117 69,155 Accumulated depreciation and amortization (33,643 ) (32,623 ) $ 39,474 $ 36,532 The Company leases certain properties from third parties under operating leases. Total rent expense for the years ended December 31, 2019, 2018, and 2017, was $874,000, $909,000, and $539,000, respectively. The Company had depreciation and amortization expense for the years ended December 31, 2019, 2018, and 2017, of $3.4 million, $3.3 million, and $2.6 million, respectively. The total future minimum rental commitments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2019 are as follows: (Dollars in thousands) Amount 2020 $ 800 2021 704 2022 581 2023 256 2024 and beyond - $ 2,341 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Note 5 — Deposits Deposit account balances are summarized as follows as of December 31: (Dollars in thousands) 2019 2018 Non-interest bearing $ 719,410 $ 642,594 Interest bearing deposits: Interest bearing demand and savings 846,199 795,456 Money market accounts 324,565 257,308 Certificates of deposit less than or equal to $250,000 131,882 143,387 Certificates of deposit greater than $250,000 34,311 38,310 Total interest bearing deposits 1,336,957 1,234,461 Total deposits $ 2,056,367 $ 1,877,055 Note 5 — Deposits – Continued Scheduled maturities for certificates of deposit are as follows for the years ending December 31: (Dollars in thousands) Amount 2020 $ 93,543 2021 26,719 2022 13,979 2023 17,337 2024 and beyond 14,615 $ 166,193 Deposits held by affiliates were $4.5 million and $8.8 million as of December 31, 2019 and 2018, respectively. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Note 6 — Short-term borrowings As of December 31, 2019, committed Federal funds lines of credit arrangements totaling $25.0 million were available to the Company from an unaffiliated bank. The average Federal funds interest rate as of December 31, 2019 was 1.80%. The Company is a member of the FHLB of Des Moines and has a committed credit line of $676.9 million, which is secured by $929.3 million in various real estate loans and investment securities pledged as collateral. Borrowings generally provide for interest at the then current published rate, which was 1.73% as of December 31, 2019. The Company holds $26.8 million in investment securities in its Federal Reserve Bank (“Fed”) account. As of December 31, 2019, the Company’s overnight borrowing capacity using the primary credit facilities from the Fed is $26.5 million. The borrowing rate is the current discount rate plus 25 basis points. There were no outstanding Fed advances as of December 31, 2019 and 2018. Securities sold under agreements to repurchase are generally overnight financing arrangements with clients collateralized by the Company’s investment securities that mature within 144 months. As of December 31, 2019 and 2018, the Company had no investment securities pledged for securities sold under agreements to repurchase. Note 6 — Short-term borrowings – Continued Information concerning short-term borrowings consist of the following as of December 31: (Dollars in thousands) 2019 2018 2017 Security repurchase agreements: Average daily balance $ - $ - $ 2,568 Weighted average rate 0.00 % 0.00 % 0.14 % Highest month-end balance $ - $ - $ 3,789 Year-end balance $ - $ - $ - Weighted average rate on outstanding at year-end 0.00 % 0.00 % 0.00 % Other short-term borrowings: Average daily balance $ 2,419 $ 71,880 $ 4,894 Weighted average rate 2.63 % 1.98 % 1.28 % Highest month-end balance $ - $ 145,000 $ 40,000 Year-end balance $ - $ - $ 40,000 Weighted average rate on outstanding at year-end 0.00 % 0.00 % 1.63 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 — Income Taxes The components of income tax expense (benefit) are as follows for the years ended December 31: (Dollars in thousands) 2019 2018 2017 Current: Federal $ 10,685 $ 11,167 $ 10,778 State 2,852 2,904 1,709 13,537 14,071 12,487 Deferred: Federal (26 ) (1,662 ) 3,468 State (8 ) (355 ) 522 Deferred (34 ) (2,017 ) 3,990 Income tax expense $ 13,503 $ 12,054 $ 16,477 The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % Tax rate change 0.0 % (0.5 )% 13.0 % State taxes, net of federal income tax benefit 3.8 % 3.7 % 2.9 % Tax-exempt interest and income (0.8 )% (0.8 )% (2.1 )% Equity awards expense (0.3 )% (0.4 )% (2.8 )% Other, net (0.4 )% (0.1 )% (0.6 )% Effective tax rate 23.3 % 22.9 % 45.4 % Note 7 — Income Taxes – Continued The nature and components of the Company’s net deferred income tax assets are as follows as of December 31: (Dollars in thousands) 2019 2018 Deferred income tax assets: Allowance for loan losses $ 8,412 $ 7,435 Deferred loan fees and costs 1,635 1,920 Fair value adjustments on certificates of deposit 100 135 Deferred compensation 419 429 Unrealized loss on securities - 1,371 State income taxes 599 608 Other 612 902 11,777 12,800 Deferred income tax liabilities: FHLB dividends 166 166 Mortgage servicing rights 172 182 Unrealized gain on securities 461 - Basis difference in premises, equipment and other assets 1,262 938 2,061 1,286 Net deferred income tax assets $ 9,716 $ 11,514 The Company believes, based on available information, that it is more likely than not that the net deferred income tax asset will be realized in the normal course of operations. Accordingly, no valuation allowance has been recorded at December 31, 2019 and 2018. The impact of a tax position is recognized in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. As of December 31, 2019 and 2018, the Company did not have any significant uncertain tax positions. The Company includes any interest and penalties associated with unrecognized tax benefits within the provision for income taxes. The Company does not expect a material change to the total amount of unrecognized tax benefits in the next twelve months. The credit to current tax expense related to tax-deductible stock compensation expense was $0.2 million, $0.2 million and $1.2 million in 2019, 2018 and 2017, respectively. The Company files U.S. and state income tax returns in jurisdictions with various statutes of limitations. The 2016 through 2019 tax years remain subject to selection for examination as of December 31, 2019. None of the Company’s income tax returns are currently under audit. As of December 31, 2019 and 2018, the Company has no net operating loss or tax credit carry-forwards. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 — Commitments and Contingencies Commitments to extend credit — In the normal course of business, the Company has outstanding commitments and contingent liabilities, such as commitments to extend credit and unused credit card lines, which are not included in the accompanying consolidated financial statements. The Company’s exposure to credit loss in the event of non-performance by other parties to the financial instruments for commitments to extend credit and unused credit card lines is represented by the contractual or notional amount of those instruments. The Company uses the same credit policies in making such commitments as it does for instruments that are included in the consolidated balance sheets. Contractual amounts of off-balance sheet financial instruments were as follows: (Dollars in thousands) 2019 2018 Commitments to extend credit, including unsecured commitments of $32,995 and $16,304 as of December 31, 2019 and 2018, respectively $ 632,577 $ 577,612 Stand-by letters of credit and bond commitments, including unsecured commitments of $555 and $730 as of December 31, 2019 and 2018, respectively 23,860 22,979 Unused credit card lines, all unsecured 26,121 24,885 Commitments to extend credit are agreements to lend to a client as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments to extend credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the client. Unused credit card lines are commitments for possible future extensions of credit to existing clients. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Regulatory Capital Matters | Note 9 — Regulatory Capital Matters The Company is subject to various regulatory capital requirements administered by its primary federal regulator, the FDIC. Failure to meet the minimum regulatory capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and its consolidated financial statements. Under the regulatory capital adequacy guidelines and regulatory framework for prompt corrective action, the Company must meet specific capital guidelines involving quantitative measures of the Company’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As of December 31, 2019, the Company was categorized as well capitalized under the regulatory framework. To be categorized as well capitalized, an institution must maintain minimum common Tier 1 (“CET1”), Tier 1 risk-based capital, total risk-based capital, and Tier 1 to average assets (“Tier 1 Leverage”) capital ratios as disclosed in the table below. Note 9 — Regulatory Capital Matters – Continued The Company’s actual and required capital amounts and ratios are as follows: December 31, 2019 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 302,291 17.18 % $ 79,193 4.50 % $ 114,390 6.50 % Tier 1 Capital to Risk-Weighted Assets 302,291 17.18 % 105,590 6.00 % 140,787 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 324,415 18.43 % 140,787 8.00 % 175,984 10.00 % Tier 1 Leverage 302,291 12.67 % 95,431 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 297,108 16.88 % $ 79,191 4.50 % $ 114,387 6.50 % Tier 1 Capital to Risk-Weighted Assets 297,108 16.88 % 105,588 6.00 % 140,784 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 319,233 18.14 % 140,784 8.00 % 175,981 10.00 % Tier 1 Leverage 297,108 12.45 % 95,429 4.00 % 119,286 5.00 % December 31, 2018 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 264,790 15.11 % $ 78,857 4.50 % $ 113,904 6.50 % Tier 1 Capital to Risk-Weighted Assets 264,790 15.11 % 105,142 6.00 % 140,190 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 286,747 16.36 % 140,190 8.00 % 175,237 10.00 % Tier 1 Leverage 264,790 12.27 % 86,351 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 261,703 14.94 % $ 78,833 4.50 % $ 113,870 6.50 % Tier 1 Capital to Risk-Weighted Assets 261,703 14.94 % 105,111 6.00 % 140,148 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 283,654 16.19 % 140,148 8.00 % 175,185 10.00 % Tier 1 Leverage 261,703 12.12 % 86,346 4.00 % 107,932 5.00 % Federal Reserve Board Regulations require maintenance of certain minimum reserve balances based on certain average deposits. The Bank had reserve requirements of $9.4 million and $2.2 million as of December 31, 2019 and 2018, respectively. The Company’s Board of Directors may declare a cash or stock dividend out of retained earnings provided the regulatory minimum capital ratios are met. The Company plans to maintain capital ratios that meet the well-capitalized standards per the regulations and, therefore, plans to limit dividends to amounts that are appropriate to maintain those well-capitalized regulatory capital ratios. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 10 — Shareholders’ Equity The following table summarizes dividends per share declared and paid per quarter for the periods indicated: Years Ended December 31, 2019 2018 First quarter $ 0.11 $ 0.09 Second quarter 0.12 0.10 Third quarter 0.13 0.11 Fourth quarter 0.13 0.11 Total $ 0.49 $ 0.41 |
Incentive Share-Based Plan and
Incentive Share-Based Plan and Other Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Incentive Share-Based Plan and Other Employee Benefits | Note 11 — Incentive Share-Based Plan and Other Employee Benefits In June 2014, the Board of Directors (“Board”) and shareholders of the Company approved a share-based incentive plan (the “2014 Plan”) which replaced an existing share-based incentive plan. The 2014 Plan provides for various share-based incentive awards including incentive share-based options, non-qualified share-based options, restricted shares, and stock appreciation rights to be granted to officers, directors and other key employees. The maximum aggregate number of shares that may be issued under the 2014 Plan is 800,000 common shares. The share-based awards are granted to participants at a price not less than the fair value on the date of grant and for terms of up to ten years. The 2014 Plan also allows for granting of share-based awards to directors and consultants who are not employees of the Company. Under the plans, share-based options are exercisable at the time of grant or other times subject to such terms and conditions as determined by the Board. Share-based options granted may be exercised in whole or in part at any time during the maximum option term of ten years. All share-based options are adjustable for any future stock splits or stock dividends. The Board has the authority to grant to eligible participants one or more of the various share-based incentive awards. To date, the Company has issued incentive share-based options, non-qualified share-based options and restricted stock units to participants. Fair value of the exercise price prior to the Company’s initial public offering in June 2015 was set at the time of grant based on independent valuations and related models; and after the initial public offering, fair value is based on market prices at the date of grant. The Company’s policy is to issue common shares to the person exercising share-based options. Note 11 — Incentive Share-Based Plan and Other Employee Benefits – Continued Share-based option transactions are summarized as follows: Weighted- Options Weighted Average Granted Average Remaining Aggregate for Common Exercise Contractual Intrinsic (Dollars in thousands, except share and per share data) Shares Price Term Value Outstanding at January 1, 2017 762,716 $ 7.42 Granted 17,692 29.59 Exercised (221,337 ) 7.76 Forfeited (14,358 ) 15.41 Outstanding at December 31, 2017 544,713 10.14 Granted 33,382 32.31 Exercised (218,928 ) 8.45 Forfeited (8,524 ) 7.61 Outstanding at December 31, 2018 350,643 13.38 Granted 545 27.53 Exercised (139,598 ) 9.05 Forfeited - - Outstanding at December 31, 2019 211,590 16.27 2.45 $ 3,603 Exercisable at December 31, 2019 190,514 14.59 2.54 2,965 Exercisable at December 31, 2018 292,100 11.27 3.25 5,562 The weighted-average grant-date fair value of options per share granted, using the Black-Scholes method of valuation, was $7.80, $3.58 and $3.82 during 2019, 2018 and 2017, respectively. The total intrinsic value of options exercised during the years ended December 31, 2019, 2018 and 2017 was $3.5 million, $5.2 million and $4.2 million, respectively. Shares issued upon exercises of stock options in 2019 were reduced by 22,903 shares related to net settled option exercises or existing shares tendered as consideration. Note 11 — Incentive Share-Based Plan and Other Employee Benefits – Continued Restricted stock unit transactions are summarized as follows: Options Weighted Granted Average for Common Grant Date (Dollars in thousands, except share and per share data) Shares Fair Value Non-vested at January 1, 2017 27,895 $ 12.97 Granted 27,811 28.92 Vested (15,838 ) 13.37 Forfeited (292 ) 12.10 Non-vested at December 31, 2017 39,576 24.02 Granted 32,853 31.09 Vested (28,420 ) 32.06 Forfeited (1,565 ) 30.66 Non-vested at December 31, 2018 42,444 30.00 Granted 41,709 29.87 Vested (24,980 ) 25.96 Forfeited (5,124 ) 30.25 Non-vested at December 31, 2019 54,049 29.98 The total intrinsic value of RSUs vested during the years ended December 31, 2019, 2018, and 2017 were $648,000, $911,000, and $423,000, respectively. As of December 31, 2019, there was $1,007,000 of total unrecognized compensation expense related to stock options and RSUs granted to be recognized over a weighted-average period of 2.45 years. As of December 31, 2018, there was $956,000 of total unrecognized compensation expense related to stock options and RSU’s granted to be recognized over a weighted-average period of 3.1 years. As of December 31, 2017, there was $711,000 of total unrecognized compensation expense related to stock options and RSU’s granted to be recognized over a weighted-average period of 1.2 years. The Company recorded share-based compensation expense of $1,011,000, $891,000 and $510,000 for the years ended December 31, 2019, 2018, and 2017, respectively. The Company used the Black-Scholes pricing model using the following assumptions to calculate the fair value of incentive share-based options granted during 2019, 2018, and 2017: annual dividend yield of 0.7% to 2.3%; risk-free interest rates of 0.1% to 1.6%; expected option terms of 0.7 to 6.5 years; and volatility index of 13.3% to 29.9%. The assumptions for expected dividend yield and expected life reflected management’s judgment and include consideration of historical experience. Expected volatility is based on data from comparable public companies for the expected option term. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Expected forfeitures are estimated based on the Company’s historical forfeiture experience. Management believes that the assumptions used in the option-pricing model are highly subjective and represent only one estimate of possible value, as there is no active market for the options granted. Share-based compensation expense related to restricted stock units and non-qualified stock options was $1,010,000, $862,000 and $342,000 for the years ended December 31, 2019, 2018, and 2017; and the related recognized income tax benefit associated with this expense is $236,000, $216,000 and $131,000, respectively. Note 11 — Incentive Share-Based Plan and Other Employee Benefits – Continued Profit Sharing — The Company provides an annual discretionary profit sharing contribution to all eligible employees based on each years’ financial performance as recommended by management and approved by the Board of Directors. The profit sharing contribution can be contributed to either the 401(k) plan or the company’s Employee Stock Ownership Plan (“ESOP”). The company made profit sharing contributions of $1,148,000, $1,000,000 and $725,000 in 2019, 2018, and 2017, respectively. 401(k) plan — The Company offers a retirement savings 401(k) plan in which all eligible employees may participate. Currently, the Company contributes and allocates to each eligible participant’s account, a percentage of the participant’s elective deferral. The Company made matching contributions of $1,054,000, $964,000 and $883,000 in 2019, 2018, and 2017, respectively. Employee Stock Ownership Plan — The Company formed an ESOP in 2018 to provide eligible employees with the benefits of ownership in the Company’s stock. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 12 — Fair Value Fair value measurements — The Company measures and discloses certain assets and liabilities at fair value. Fair value is defined as 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 (that is, not a forced liquidation or distressed sale). GAAP establishes a consistent framework for measuring fair value and disclosure requirements about fair value measurements. Among other things, the standard requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s estimates for market assumptions. These two types of inputs create the following fair value hierarchy. Level 1 Quoted prices in active markets for identical instruments. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. A quoted price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available. Level 2 Observable inputs other than Level 1 including quoted prices in active markets for similar instruments, quoted prices in less active markets for identical or similar instruments, or other observable inputs that can be corroborated by observable market data. Level 3 Unobservable inputs supported by little or no market activity for financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation; also includes observable inputs from non-binding single dealer quotes not corroborated by observable market data. In developing Level 3 measurements, management incorporates whatever market data might be available and uses discounted cash flow models where appropriate. These calculations include projections of future cash flows, including appropriate default and loss assumptions, and market based discount rates. Note 12 — Fair Value – Continued The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize at a future date. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values. Transfers between levels of the fair value hierarchy are deemed to occur at the end of the reporting period. The following methods were used to estimate the fair value of each class of financial instruments: Cash and cash equivalents: The carrying amount of these items is a reasonable estimate of their fair value. Securities: The estimated fair values of investment securities are priced using current active market quotes, if available, which are considered Level 1 measurements. For most of the portfolio, matrix pricing based on the securities’ relationship to other benchmark quoted prices is used to establish the fair value. These measurements are considered Level 2. Non-marketable securities: The fair value is based upon the redemption value of the stock, which equates to its carrying value. Loans Held for Sale: The carrying amount of these items is a reasonable estimate of their fair value. Loans held for investment: The fair value is estimated by discounting the future cash flows and estimated prepayments using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining term. Some loan types’ fair value approximated carrying value because of their floating rate or expected maturity characteristics. Deposits: The carrying amount of deposits with no stated maturity, such as savings and checking accounts, is a reasonable estimate of their fair value. The market value of certificates of deposit is based upon the discounted value of contractual cash flows. The discount rate is determined using the rates currently offered on comparable instruments. Short-term borrowings: Short-term borrowing are overnight advances with the FHLB and their carrying amount is considered a reasonable approximation of their fair value. Note 12 — Fair Value – Continued The following table presents estimated fair values of the Company’s financial instruments as of December 31, 2019 and 2018: 2019 2018 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Amount Fair Value Amount Fair Value Financial Assets: Cash and cash equivalents 1 $ 211,981 $ 211,981 $ 48,547 $ 48,547 Investment securities available for sale 2 395,410 395,410 280,964 280,964 Investment securities available for sale 3 10,585 10,585 - - Investment securities held to maturity 2 - - 50,905 50,364 Investment securities held to maturity 3 - - 14,557 14,402 Non-marketable securities 2 2,623 2,623 2,551 2,551 Loans held for sale 2 18,669 18,669 10,267 10,267 Loans held for investment 3 1,649,492 1,639,480 1,653,657 1,637,617 Financial Liabilities: Total deposits 2 $ 2,056,367 $ 1,851,954 $ 1,877,055 $ 1,675,992 Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of December 31, 2019 Fair valued on a recurring basis: Investment securities available for sale $ - $ 395,410 $ 10,585 $ 405,995 Fair valued on a non-recurring basis: Impaired loans - - 17,497 17,497 As of December 31, 2018 Fair valued on a recurring basis: Investment securities available for sale $ - $ 280,964 $ - $ 280,964 Fair valued on a non-recurring basis: Impaired loans - - 7,304 7,304 Non-recurring Measurements: Impaired loans are classified with Level 3 of the fair value hierarchy. The estimated fair value of impaired loans is based on the fair value of the collateral, less estimated costs to sell. The Company receives an appraisal or performs an evaluation for each impaired loan. The key inputs used to determine the fair value of impaired loans include selling costs, and adjustment to comparable collateral. Valuations and significant inputs obtained by independent sources are reviewed by the Company for accuracy and reasonableness. Appraisals are typically obtained at least on an annual basis. The Company also considers other factors and events that may affect the fair value. The appraisals or evaluations are reviewed at least on a quarterly basis to determine if any adjustments are needed. After review and acceptance of the appraisal or evaluation, adjustments to impaired loans may occur. |
Contingencies and Concentration
Contingencies and Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Contingencies And Concentrations Of Credit Risk [Abstract] | |
Contingencies and Concentrations of Credit Risk | Note 13 — Contingencies and Concentrations of Credit Risk Litigation — The Company may from time to time be subject to legal proceedings arising in the normal course of business. Management does not believe the outcome of any currently pending matters will have a material impact on the financial condition, results of operations, or liquidity of the Company. Concentrations of credit risk — The Company has concentrated credit risk exposure, including off-balance-sheet credit risk exposure, related to real estate loans as disclosed in Notes 3 and 8. The ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in economic and market conditions in the region. The Company generally requires collateral on all real estate lending arrangements and typically maintains loan-to-value ratios of no greater than 80%. Investments in municipal securities principally involve governmental entities within the State of Utah. Loans are limited by state banking regulation to 15% of each Bank’s total capital, as defined by banking regulations. As a matter of practice and in accordance with applicable Utah state law, the Bank does not extend credit to any single borrower or group of related borrowers in excess of 15% of the Bank’s total capital. As of December 31, 2019, The Bank’s lending limit was $53.8 million. The contractual amounts of credit-related financial instruments, such as commitments to extend credit and credit-card arrangements, represent the amounts of potential accounting loss should the contract be fully drawn upon, the client defaults, and the value of any existing collateral becomes worthless. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements of Parent Company | Note 14 — Condensed Financial Statements of Parent Company Financial information pertaining only to PUB, on a parent-only basis, is as follows as of and for the years ended December 31: (Dollars in thousands) 2019 2018 Balance Sheets Assets Cash and cash equivalents $ 4,895 $ 3,286 Investment in subsidiaries 327,178 287,075 Other assets 370 520 Total assets $ 332,443 $ 290,881 Liabilities and shareholders' equity Due to subsidiaries, net $ 61 $ 337 Other liabilities 20 382 Shareholders' equity 332,362 290,162 Total liabilities and shareholders' equity $ 332,443 $ 290,881 Note 14 — Condensed Financial Statements of Parent Company – Continued (Dollars in thousands) 2019 2018 2017 Statements of Income Dividend and other income from subsidiaries $ 11,400 $ 7,900 $ 5,300 Interest and dividends 13 6 310 Total income 11,413 7,906 5,610 Salaries and employee benefits 121 283 1,455 Other expenses 775 666 420 Total expenses 896 949 1,875 Income before income taxes 10,517 6,957 3,735 Income tax benefit 208 266 575 10,725 7,223 4,310 Equity in undistributed net income of subsidiaries 33,599 33,409 15,536 Net income $ 44,324 $ 40,632 $ 19,846 (Dollars in thousands) 2019 2018 2017 Statements of Cash Flows Cash flows from operating activities: Net income $ 44,324 $ 40,632 $ 19,846 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of the Bank (33,599 ) (33,409 ) (15,536 ) Net amortization of securities discounts and premiums - - - Change in other assets and liabilities (487 ) 214 (1,204 ) Net change provided by operating activities 10,238 7,437 3,106 Cash flows from investing activities: Purchase of available for sale securities - - - Maturities/sales of available for sale securities - - 34,278 Investments in banking subsidiary - - (46,977 ) Net change (used in) provided by investing activities - - (12,699 ) Cash flows from financing activities: Issuance of common shares - - 13,977 Exercise of stock options 596 887 1,395 Dividends paid (9,225 ) (7,657 ) (6,106 ) Net change (used in) provided by financing activities (8,629 ) (6,770 ) 9,266 Net change in cash and cash equivalents 1,609 667 (327 ) Cash and cash equivalents, beginning of year 3,286 2,619 2,946 Cash and cash equivalents, end of year $ 4,895 $ 3,286 $ 2,619 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 15 —Acquisitions Utah Banner Bank Branch Acquisition On October 6, 2017, the Company acquired the loans and deposits of seven Utah branch locations from Banner Bank (“Banner branches”). The Company acquired $257 million in loans, assumed $160 million in deposits, and paid a deposit premium of $13.8 million based on average deposits at closing. Two of the seven branches were consolidated into existing Bank branches. The Company has successfully completed the conversion of these branches into its core-banking platform and integrated personnel into the Company’s operations. The acquired assets and assumed liabilities were recorded at fair value at the date of the acquisition. In accordance with GAAP guidance for business combinations, the Company recorded $14.9 million of goodwill and $2.6 million of other intangibles as of the acquisition date. The other intangible asset is related to core deposits and is being amortized using a straight-line method over a period of ten years with no significant residual value. For tax purposes, the purchase accounting adjustments, including goodwill and other intangibles related to the Banner branch acquisition are taxable or deductible. The following table summarizes the consideration paid and the fair value of the assets acquired and liabilities assumed and recognized at the acquisition date. (Dollars in thousands) Purchase Price Cash $ 100,283 Premium paid on average deposits 13,762 Total consideration $ 114,045 Recorded amounts of assets acquired and liabilities assumed Assets Loans, net of discounts $ 251,782 Premises & equipment 3,467 Core deposit intangible 2,604 Other assets 1,761 Total assets 259,614 Liabilities Deposits, net of premiums 160,292 Other liabilities 175 Total liabilities assumed 160,467 Total net assets from merger $ 99,147 Goodwill $ 14,898 Direct costs related to the branch acquisition were expensed as incurred in the year ended December 31, 2017. Such expenses primarily related to professional and legal services, human resource costs and information system charges. For the year ended December 31, 2017, the Company incurred $1.7 million of expenses related to the acquisition of the Utah branches of Banner Bank. Note 15 —Acquisitions – Continued Pro forma income statements are not being presented as the information is not practicable to produce. Town & Country Bank Acquisition The Company also completed the merger with Town & Country Bank (“TC Bank”) located in St. George, Utah on November 13, 2017, including the acquisition of $117 million in loans and assumption of $124 million in deposits. The Company successfully completed the conversion of this branch into its core-banking platform, consolidated its existing branch and the TC Bank branch in St. George into one branch, and integrated personnel into the Company’s operations. The Company exchanged TC Bank shares for 466,546 PUB common shares and paid cash of $11.6 million of which $2.0 million is being held in escrow to cover potential loss indemnifications. The acquired assets and assumed liabilities were recorded at fair value at the date of the respective acquisitions. In accordance with GAAP guidance for business combinations, the Company recorded $11.1 million of goodwill and $845,000 of core deposit intangibles and $702,000 in deposit premium on certificates of deposit related to TC Bank on the acquisition date. The core deposit intangible is being amortized using a straight-line method over a period of ten years with no significant residual value. The deposit premium is being accreted into net interest income over the life of the certificates of deposit. In accordance with the applicable accounting guidance for business combinations, there was no carry-over of TC Bank’s previously established allowance for loan losses. The acquisition was a tax-free exchange; therefore, for tax purposes, purchase accounting adjustments, including goodwill, for the TC Bank acquisition are all non-taxable and/or non-deductible. Note 15 —Acquisitions – Continued The following table summarizes the consideration paid and the fair value of the assets acquired and liabilities assumed and recognized at the acquisition date. (Dollars in thousands, except share data) Purchase Price PUB common shares issued for Town & Country shares 466,546 PUB share price at closing $ 29.96 Consideration from common stock conversion (0.2916 ratio) $ 13,977 Cash 11,603 Total consideration $ 25,580 Recorded amounts of assets acquired and liabilities assumed Assets Cash and cash equivalents $ 13,401 Investment securities 9,585 Loans, net of discounts 110,334 Premises & equipment 145 Core deposit intangible 845 Bank owned life insurance 3,332 Deferred income tax asset 2,571 Other assets 4,161 Total assets 144,374 Liabilities Deposits, net of premiums 123,777 Other liabilities 6,127 Total liabilities assumed 129,904 Total net assets from merger $ 14,470 Goodwill $ 11,110 Direct costs related to the branch acquisition were expensed as incurred in the year ended December 31, 2017. Such expenses primarily related to professional and legal services, human resource costs and information system charges. For the year ended December 31, 2017, the Company incurred $3.1 million of expenses related to the TC Bank acquisition, the majority of which is tax deductible. The two acquisitions were consistent with the Company’s strategy to expand our presence in Utah. The acquisitions offer the Company the opportunity to increase profitability by introducing existing products and services to the acquired client base as well as add new clients in Utah. Goodwill arising from the acquisition consisted largely of synergies and the cost savings resulting from the combined operations. During 2018, the Company made acquisition related measurement period adjustments of $335,000 to goodwill. Changes to initially estimated fair values from a business combination are recognized as an adjustment to goodwill over the measurement period, which cannot exceed one year from the acquisition date. The adjustments to goodwill related to changes in the preliminary goodwill recorded for the TC Bank acquisition and were related to loan valuations. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Note 16— Unaudited Quarterly Financial Data Summarized unaudited quarterly financial data is as follows: Quarters Ended 2019 (Dollars in thousands, except share and per share data) March 31 June 30 September 30 December 31 Net interest income $ 26,907 $ 27,720 $ 28,191 $ 27,100 Provision for loan losses 1,550 2,150 2,100 1,200 Non-interest income 3,337 3,598 4,467 3,779 Non-interest expense 14,916 14,699 16,068 14,589 Income before income tax expense 13,778 14,469 14,490 15,090 Income tax expense 3,273 3,480 3,355 3,395 Net income $ 10,505 $ 10,989 $ 11,135 $ 11,695 Earnings per common share: Basic $ 0.56 $ 0.58 $ 0.59 $ 0.62 Diluted $ 0.55 $ 0.58 $ 0.59 $ 0.61 Quarters Ended 2018 (Dollars in thousands, except share and per share data) March 31 June 30 September 30 December 31 Net interest income $ 25,944 $ 26,978 $ 27,182 $ 28,074 Provision for loan losses 2,050 1,475 1,925 3,175 Non-interest income 3,718 4,066 3,794 3,551 Non-interest expense 16,048 15,823 15,280 14,845 Income before income tax expense 11,564 13,746 13,771 13,605 Income tax expense 2,560 3,279 3,288 2,927 Net income $ 9,004 $ 10,467 $ 10,483 $ 10,678 Earnings per common share: Basic $ 0.48 $ 0.56 $ 0.56 $ 0.57 Diluted $ 0.48 $ 0.55 $ 0.55 $ 0.56 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Basis of Consolidation | Nature of Operations and basis of consolidation — People’s Utah Bancorp, Inc. (“PUB” or the “Company”) is a Utah corporation headquartered in American Fork, Utah. The Company operates all business activities through its wholly-owned banking subsidiary, Altabank TM (the “Bank”), which was organized in 1913. Altabank TM is a Utah state-chartered bank. Altabank TM operates under the jurisdiction of the Utah Department of Financial Institutions (“UDFI”), and its deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). Altabank TM is not a member of the Federal Reserve System; however, PUB is operated as a bank holding company under the Federal Bank Holding Company Act of 1956 and is the sole shareholder of Altabank TM . Both PUB and Altabank TM are subject to periodic examination by all of the applicable federal and state regulatory agencies and file periodic reports and other information with the agencies. The Company considers Altabank TM to be its sole operating segment. Altabank TM TM TM TM TM The consolidated financial statements include the accounts of the Company together with its subsidiary. All intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses (“ALLL”), the determination of the fair value of certain financial instruments, the valuation of real estate acquired through foreclosure, deferred income tax assets, and share-based compensation. |
Reclassifications | Reclassifications — Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. |
Business Combinations | Business Combinations — Business combinations are accounted for using the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed, both tangible and intangible, and consideration exchanged are recorded at fair value on the acquisition date. The excess purchase consideration over fair value of net assets acquired is recorded as goodwill. Expenses incurred in connection with a business combination are expensed as incurred. Changes in deferred tax asset valuation allowances related to acquired tax uncertainties are recognized in net income after the measurement period. |
Cash and Cash Equivalents | Cash and cash equivalents — Cash and cash equivalents consist of cash on hand, amounts due from banks, interest bearing deposits, and federal funds sold, all of which have original maturities of three months or less. The Company places its cash with high credit quality institutions. The amounts on deposit fluctuate and, at times, exceed the insured limit by the FDIC, which potentially subjects the Company to credit risk. |
Investment Securities | Investment securities — Investment securities are classified as held to maturity (“HTM”) when the Company has the positive intent and ability to hold the securities to maturity. Investment securities are classified as available for sale (“AFS”) when the Company has the intent of holding the security for an indefinite period of time, but not necessarily to maturity. The Company determines the appropriate classification at the time of purchase, and periodically thereafter. Investment securities classified at HTM are carried at amortized cost. Investment securities classified at AFS are reported at fair value. As the fair value of AFS securities changes, the changes are reported (net of tax, if applicable) in comprehensive income and as an element of accumulated other comprehensive income/loss (“AOCI”) in shareholder’s equity. When AFS securities, specifically identified, are sold, the unrealized gain or loss is reclassified from AOCI to non-interest income. When the estimated fair value of a security is lower than the book value, a security is considered temporarily impaired. On a quarterly basis, Management evaluates any securities in a loss position to determine whether the impairment is other-than-temporary. If there is intent to sell the security, or if the Company will be required to sell the security, or if the Company believes it will not recover the entire cost basis of the security, the security is other-than-temporarily impaired (“OTTI”) and impairment is recognized. The amount of impairment resulting from credit loss is recognized in earnings and impairment related to all other factors, such as general market conditions, is recognized in AOCI. Management considers a number of factors in its analysis of whether a decline in a security’s estimated fair value is OTTI. Certain factors considered include, but are not limited to: (a) the length of time and the extent to which the security has been in an unrealized loss position, (b) changes in the financial condition of the issuer, (c) the payment structure of debt securities, (d) adverse changes in ratings issued by rating agencies, (e) and the intent and ability of the Company to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. Interest income is recognized based on the coupon rate, and is increased by the accretion of discounts earned or decreased by the amortization of premiums paid. The amortization of premiums or the accretion of discounts are recognized in interest income using the effective interest method over the period of maturity. |
Non-Marketable Equity Securities | Non-marketable equity securities — Non-marketable equity securities primarily consist of Federal Home Loan Bank (“FHLB”) stock. FHLB stock is restricted because such stock may only be sold to FHLB at its par value. Due to the restrictive terms, and the lack of a readily determinable market value, FHLB stock is carried at cost. The investments in FHLB stock are required investments related to the Bank’s borrowings from FHLB. FHLB obtains its funding primarily through issuance of consolidated obligations of the FHLB system. The U.S. government does not guarantee these obligations, and each of the regional FHLBs are jointly and severally liable for repayment of each other’s debt. |
Loans Held for Sale | Note 1 —Summary of Significant Accounting Policies – Continued Loans held for sale —Single-family residential mortgage loans originated with the intent to be sold in the secondary market are considered held for sale. Loans with best effort delivery commitments are carried at the lower of aggregate cost or estimated fair value. Loans under mandatory delivery commitments are carried at fair value in order to match changes in the value of the loans with the value of the economic hedges on the loans. Fair values for loans held for sale are determined by comparing actual loan rates to current secondary market prices for similar loans. Net unrealized losses on loans held for sale that are carried at lower of cost or market are recognized through the valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Substantially all of the residential mortgage loans originated are sold to larger financial institutions. |
Loans Held for Investment | Loans held for investment — Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. Loans are placed on non-accrual status when they become 90 days or more past due or at such earlier time as management determines timely recognition of interest to be in doubt. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions, collection efforts, and the borrower’s financial condition, that the borrower will be unable to make payments as they become due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received, or payment is considered certain. Loans may be returned to accrual status when all delinquent interest and principal amounts contractually due are brought current and future payments are reasonably assured. |
Impaired Loans | Impaired loans — The Company considers loans impaired when, based on current information and events, it is probable the Company will be unable to collect all principal and interest payments due according to the contractual terms of the loan agreement. Such loans are generally classified as Substandard or Doubtful loans (see Note 3). Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral, if the loan is collateral dependent. Changes in these values are recorded to provision for loan losses and as adjustments to the ALLL. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. |
Acquired Loans | Note 1 —Summary of Significant Accounting Policies – Continued Acquired loans - Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Should the Company’s allowance for credit losses methodology indicate that the credit discount associated with acquired, non-purchased credit impaired loans is no longer sufficient to cover probable losses inherent in those loans; the Company will establish an allowance for those loans through a charge to provision for loan losses. At the time of an acquisition, the Company evaluates loans to determine if they are purchase credit impaired (“PCI”) loans. PCI loans are those acquired loans with evidence of credit deterioration for which it was probable at acquisition that the Company would be unable to collect all contractual payments. The Company makes this determination by considering past due and/or nonaccrual status, prior designation of a troubled debt restructuring, or other factors that may suggest we will not be able to collect all contractual payments. The non-accretable difference on PCI loans is not accreted to interest income. The accounting for PCI loans is periodically updated for changes in cash flow expectations, and reflected in interest income over the life of the loans as accretable yield. Any subsequent decreases in expected cash flows attributable to credit deterioration are recognized by recording a provision for loan losses. An acquired loan previously classified by the seller as a troubled debt restructuring is no longer classified as such at the date of acquisition. Past due status is reported based on contractual payment status. |
Allowance for Loan Losses | Allowance for loan losses — Credit risk is inherent in the business of extending loans and leases to borrowers. Normally, this credit risk is addressed through a valuation allowance termed ALLL. The ALLL represents a creditor’s estimate of loan losses inherent within the loan portfolio at each balance sheet date. Netted against the outstanding loan balance, this allowance reduces the balance to the creditor’s estimate of what will be collected from borrowers. The ALLL is established through charges to current period earnings by recording a provision for loan losses. When losses become specifically identifiable and quantifiable, the loan balance is reduced through recording a charge-off against the ALLL. Should payments be received on charged-off loans, the payment is credited to the allowance as a recovery. Charge-offs of loans are generally processed by policy as well as by regulatory guidance. Secured consumer loans, including residential real estate loans, that are 120 days past due, are written down to the fair value of the collateral. Unsecured loans are charged-off once the loan is 120 days past due. Decisions on when to charge-off commercial loans and loans secured by commercial real estate are made on an individual basis rather than length of delinquency, though it is a factor in the decision. The financial resources of the borrower and/or guarantor and the nature and value of any collateral are other factors considered. The ALLL is based on a continuing review of loans, which includes consideration of actual loss experience, changes in the size and character of the portfolio, identification of individual problem situations that may affect the borrower’s ability to repay, evaluations of the prevailing and anticipated economic conditions, and other qualitative factors. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision, as more information becomes available. The ALLL consists of specific and general components. The specific component relates to loans determined to be impaired which are individually evaluated for impairment. For impaired loans individually evaluated, an allowance is established when the discounted cash flows, or the fair value of the collateral, if the loan is collateral dependent, of the impaired loan is lower than the carrying value of the loan. The general component covers all loans not individually evaluated for impairment and is based on historical loss experience adjusted for qualitative factors. Various qualitative factors are considered including changes to underwriting policies, loan concentrations, volume and mix of loans, size and complexity of individual credits, locations of credits and new market areas, changes in local and national economic conditions, real estate foreclosure rates, and trends in past due and classified credits. |
Premises and Equipment | Note 1 —Summary of Significant Accounting Policies – Continued Premises and equipment — Land is carried at cost. Premises and equipment are carried at cost, net of accumulated depreciation and amortization. Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years Maintenance and repairs are expensed as incurred while major additions and improvements are capitalized. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance (“BOLI”) — The Bank has purchased life insurance policies. These policies provide protection against the adverse financial effects that could result from the death of a key employee and provide tax-exempt income to offset expenses associated with the plans. It is the Bank’s intent to hold these policies as a long-term investment; however, there may be an income tax impact if the Bank chooses to surrender certain policies. Although the lives of individual current or former management-level employees are insured, the Bank is the owner and sole or partial beneficiary. BOLI is carried at the cash surrender value (“CSV”) of the underlying insurance contract. Changes in the CSV and any death benefits received in excess of the CSV are recognized as non-interest income. |
Goodwill | Goodwill — Goodwill represents the excess of the purchase considerations paid over the fair value of the assets acquired, net of the fair values of liabilities assumed in a business combination and is not amortized but is reviewed annually, or more frequently as current circumstances and conditions warrant, for impairment. An assessment of qualitative factors is completed to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative analysis concludes that further analysis is required, then a quantitative impairment test would be completed. The quantitative goodwill impairment compares the reporting unit's estimated fair values, including goodwill, to its carrying amount. If the carrying amount exceeds its reporting unit’s fair value, then an impairment loss would be recognized as a charge to earnings but is limited by the amount of goodwill allocated to that reporting unit. |
Other Intangible Assets | Other Intangible Assets — Other intangible assets consist primarily of core deposit intangibles (“CDI”), which are amounts recorded in business combinations or deposit purchase transactions related to the value of transaction-related deposits and the value of the client relationships associated with the deposits. Core deposit intangibles are amortized over the estimated useful life of such deposits. These assets are reviewed at least annually for events or circumstances that could affect their recoverability. These events could include loss of the underlying core deposits, increased competition or adverse changes in the economy. To the extent other identifiable intangible assets are deemed unrecoverable; impairment losses are recorded in other non-interest expense to reduce the carrying amount of the assets. |
Mortgage and Other Servicing Rights | Mortgage and Other Servicing Rights — Mortgage and other servicing rights are recognized as separate assets when rights are acquired through purchase of such rights or through the sale of loans. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For loans sold, the fair value of the servicing rights are estimated and capitalized. Fair value is based on market prices for comparable servicing rights contracts. Capitalized servicing rights are reported in other assets and are amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. |
Other Real Estate Owned | Note 1 —Summary of Significant Accounting Policies – Continued Other real estate owned — Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of the carrying amount of the foreclosed loan or the fair value of the foreclosed asset, less costs to sell, at the date of foreclosure. Subsequent to foreclosure, management periodically performs valuations and the assets are carried at the lower of carrying amount or fair value, less selling costs. Revenues and expenses from operations and changes in the valuation allowance are included in other real estate owned expense. |
Transfers of Financial Assets | Transfers of financial assets — Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Income Taxes | Income taxes — Deferred income tax assets and deferred income tax liabilities represent the tax effect of temporary differences between financial reporting and tax reporting measured at enacted tax rates in effect for the year in which the differences are expected to reverse. The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority. Developing the provision for income taxes, including the effective tax rate and analysis of potential tax exposure items, if any, requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred income tax assets and liabilities and any estimated valuation allowances deemed necessary to value deferred income tax assets. Judgments and tax strategies are subject to audit by various taxing authorities. While the Company believes it has no significant uncertain income tax positions in the consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the consolidated financial positions, result of operations, or cash flows. |
Off-Balance-Sheet Credit Related Financial Instruments | Off-balance sheet credit related financial instruments — In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit card arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded. |
Share Based Compensation Plans | Share-based compensation plans — The fair value of incentive share-based awards is recorded as compensation expense over the vesting period of the award. Compensation expense for stock options is estimated at the date of grant using the Black-Scholes option-pricing model. Compensation expense for RSU’s is based on the fair value of the Company’s common shares at the date of grant. RSU awards generally vest in thirds over three years from date of grant. |
Earnings Per Share | Earnings per share — Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares include shares that may be issued by the Company for outstanding stock options determined using the treasury stock method and for all outstanding RSUs. Note 1 —Summary of Significant Accounting Policies – Continued Earnings per common share have been computed based on the following: Year ended December 31, (Dollars in thousands, except share and share data) 2019 2018 2017 Numerator Net income $ 44,324 $ 40,632 $ 19,846 Denominator Weighted-average number of common shares outstanding 18,822,103 18,679,165 18,019,643 Incremental shares assumed for stock options and RSUs 194,944 303,356 427,978 Weighted-average number of dilutive shares outstanding 19,017,047 18,982,521 18,447,621 Basic earnings per common share $ 2.35 $ 2.18 $ 1.10 Diluted earnings per common share $ 2.33 $ 2.14 $ 1.08 |
Comprehensive Income | Comprehensive income — U.S. GAAP generally requires that recognized revenues, 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, net of the related income tax effect, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income. |
Advertising Costs | Advertising costs — Advertising costs are expensed when incurred and totaled $1.8 million in 2019, $1.3 million in 2018, and $1.4 million in 2017. |
Impact of Recent Authoritative Accounting Guidance | Impact of Recent Authoritative Accounting Guidance — The Accounting Standards Codification™ (“ASC”) is the Financial Accounting Standards Board’s (“FASB”) officially recognized source of authoritative GAAP applicable to all public and non-public non-governmental entities. Periodically, the FASB will issue Accounting Standard updates (“ASU”) to its ASC. Rules and interpretive releases of the SEC under the authority of the federal securities laws are also sources of authoritative GAAP for us as an SEC registrant. All other accounting literature is non-authoritative. In December 2019, FASB issued ASU 2019-12, Income Taxes. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s Consolidated Financial Statements. Note 1 —Summary of Significant Accounting Policies – Continued In August 2018, FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in this ASU broaden the scope of ASC Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with the accounting for costs for internal-use software. The amendments in this ASU result in consistent capitalization of implementation costs of a hosting arrangement that is a service contract and implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this ASU. This ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Adoption of ASU 2018-15 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In August 2018, FASB issued ASU 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. The ASU removes, modifies and adds disclosure requirements in Topic 820. The following disclosure requirements were removed: 1) the amount and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the policy for timing of transfers between levels, and 3) the valuation processes for Level 3 fair value measurements. This ASU modified disclosure requirements by requiring that the measurement uncertainty disclosure communicates information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added: 1) changes in unrealized gains and losses for the period included in other comprehensive income for the recurring Level 3 fair value measurements held at the end of the reporting period, and 2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. Adoption of ASU 2018-13 is not expected to have a material impact on the Company’s Consolidated Financial Statements. In July 2018, FASB issued ASU No. 2018-11, Targeted Improvements. The amendments in this ASU provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP (Topic 840, Leases). In addition, the amendments in this ASU provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606). The amendments of this ASU became effective for the Company on January 1, 2019. Note 1 —Summary of Significant Accounting Policies – Continued In August 2017, FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities. The amendments in this ASU are intended to provide investors better insight to an entity's risk management hedging strategies by permitting a company to recognize the economic results of its hedging strategies in its financial statements. The amendments in this ASU permit hedge accounting for hedging relationships involving nonfinancial risk and interest rate risk by removing certain limitations in cash flow and fair value hedging relationships. In addition, the ASU requires an entity to present the earnings effect of the hedging instrument in the same income statement line item in which the earnings effect of the hedged item is reported. The Company adopted this ASU effective January 1, 2019. The adoption of this ASU did not have an impact on the Company's Consolidated Financial Statements. In March 2017, FASB issued ASU 2017-08, "Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The ASU requires entities to amortize the premium on certain purchased callable debt securities to the earliest call date, which more closely aligns the amortization period of premiums and discounts to expectations incorporated in the market prices. Entities will no longer recognize a loss in earnings upon the debtor's exercise of a call on a purchased debt security held at a premium. The ASU does not require any accounting change for debt securities held at a discount; therefore, the discount will continue to be amortized as an adjustment of yield over the contractual life of the investment. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted ASU 2017-08 on January 1, 2019 and it did not have a material impact on the Company's Consolidated Financial Statements. In June 2016, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU significantly changes the accounting for credit loss measurement on loans and debt securities. For loans and held-to-maturity debt securities, the ASU requires a current expected credit loss (“CECL”) measurement to estimate the allowance for credit losses ( “ACL”) for the remaining estimated life of the financial asset (including off-balance sheet credit exposures) using historical experience, current conditions, and reasonable and supportable forecasts. The ASU eliminates the existing guidance for Purchased Credit Impaired (“PCI”) loans but requires an allowance for purchased financial assets with more than an insignificant deterioration since origination, otherwise known as purchase credit deteriorated (“PCD”) assets. In addition, the ASU modifies the other-than-temporary impairment model for available-for-sale debt securities to require an allowance for credit impairment instead of a direct write-down, which allows for reversal of credit impairments in future periods based on an improvement in credit. This ASU is effective for interim and annual reporting periods beginning after December 15, 2019. On October 16, 2019, the FASB voted to delay the adoption by two years to January 2023 for private companies, not-for-profit companies, and certain small public companies that meet the definition of a smaller reporting company (“SRC”), as defined by the Securities and Exchange Commission. To meet the requirements of an SRC, an entity must be an issuer as defined by the SEC and have public float of less than $250 million, or public float of less than $700 million and annual revenues of less than $100 million. As of June 30, 2019, our public float was $466 million and annual revenues for 2018 were $130 million. As a result, we are not an SRC and, therefore, were required to adopt the ASU effective January 1, 2020. In implementing the ASU, the Company intends to recognize an ACL for held-to-maturity and available-for-sale debt securities. The ACL on available-for-sale debt securities will be subject to a limitation based on the fair value of the debt securities. Based on the credit quality of existing debt securities, the Company does not expect the ACL for debt securities to be material. Note 1 —Summary of Significant Accounting Policies – Continued The Company expects to use the weighted average remaining maturity (or “WARM”) approach, adjusted for prepayments, to calculate CECL. As described in the FASB Staff Question and Answers, the Company intends to use a qualitative approach to adjust historical loss information for current conditions and for reasonable and supportable forecasts. As noted in section ASU 326-20-30-9, “An entity shall not rely solely on past events to estimate expected credit losses. When an entity uses historical loss information, it shall consider the need to adjust historical information to reflect the extent to which management expects current conditions and reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The adjustments to historical loss information may be qualitative in nature and should reflect changes related to relevant data (such as changes in unemployment rates, property values, commodity values, delinquency, or other factors that are associated with credit losses on the financial asset or in the group of financial assets).” The Company expects the ACL to increase upon adoption, because the ACL is required to cover the full remaining expected life of the portfolio that is greater than one year, rather than the incurred loss model that assumes annual credit losses under current U.S. GAAP. In addition, a portion of the increase will be due to PCI loans that will be reclassified as PCD loans with the credit related non-accretable discount increasing both ACL and loan balances, but not retained earnings. However, accretable discounts held on non-PCD loans are not allowed to be moved to ACL as part of the adoption of this ASU. The Company will set aside additional ACL for non-PCD loans through retained earnings upon adoption of this ASU. As a result, the Company will continue to hold accretable discounts that will be recorded to interest income over the remaining life of non-PCD loans as well as a similar amount in ACL. The Company expects greater volatility in its earnings and those of other banks after adoption due to the nature and time horizon used to calculate CECL. In addition, the Company expects a potential negative impact to credit availability and reduced loan terms to borrowers as this ASU is adopted by financial institutions. Lastly, the Company expects a lack of comparability with financial performance to many of its peers as it adopts this ASU, due to delayed adoption for public companies with total assets similar in size to us. The ultimate effect of CECL on our ACL will depend on the size and composition of the loan portfolio; the loan portfolio’s credit quality and economic conditions at the time of adoption; as well as any refinements to models, methodologies, and other key assumptions used. The Company expects an increase in ACL of between approximately $10.0 million to $14.0 million, or approximately 30% to 45%. This increase will include the gross-up for nonaccretable discounts on PCD loans of between approximately $2.5 million to $5.0 million, or approximately 10% to 15%. The Company expects the cumulative, tax-effected impact to total shareholders’ equity of between approximately $6.0 million to $8.0 million, or approximately 2.0% to 2.5%. The Company expects its regulatory capital amounts and ratios to be negatively impacted. An increase in our ACL will result in a decrease in regulatory capital amounts and ratios. Note 1 —Summary of Significant Accounting Policies – Continued In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842). The amendments in this ASU require lessees to recognize the following for all leases (with the exception of short-term) at the commencement date; a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendments in this ASU leave lessor accounting largely unchanged, although certain targeted improvements were made to align lessor accounting with the lessee accounting model. This ASU simplifies the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees are no longer be provided with a source of off-balance sheet financing. ASU No. 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. The Company adopted the new guidance effective January 1, 2019. The Company elected the transition option provided in ASU No. 2018-11 and applied the modified retrospective approach. The Company also elected certain relief options for practical expedients: the option to not separate lease and non-lease components and instead to account for them as a single lease component, and the option to not recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e. lease terms of twelve months or less). The Company has six real property leases under non-cancelable operating leases, five of which were subject to this ASU that resulted in the recognition of right-of-use assets and lease liabilities. Most of the Company’s equipment is owned or on short-term leases. The Company compiled a complete inventory of arrangements containing leases and analyzed the lease data necessary to meet the new requirements. In connection with the adoption of this ASU, as of January 1, 2019, the Company recorded a $2.2 million right of use asset and a $2.2 million lease liability on its Consolidated Statements of Financial Condition. |
Subsequent Events | Subsequent events — The Company has evaluated events occurring subsequent to December 31, 2019 for disclosure in the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation [Abstract] | |
Schedule of Estimated Useful Lives of Related Assets | Depreciation and amortization expense is computed using the straight-line method based on the estimated useful lives of the related assets below: Building and building improvements 15 to 40 years Leasehold improvements 3 to 15 years Furniture and equipment 3 to 15 years Computers, software and equipment 3 to 5 years |
Schedule of Earnings Per Common Share | Earnings per common share have been computed based on the following: Year ended December 31, (Dollars in thousands, except share and share data) 2019 2018 2017 Numerator Net income $ 44,324 $ 40,632 $ 19,846 Denominator Weighted-average number of common shares outstanding 18,822,103 18,679,165 18,019,643 Incremental shares assumed for stock options and RSUs 194,944 303,356 427,978 Weighted-average number of dilutive shares outstanding 19,017,047 18,982,521 18,447,621 Basic earnings per common share $ 2.35 $ 2.18 $ 1.10 Diluted earnings per common share $ 2.33 $ 2.14 $ 1.08 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Approximate Fair Values of Investment Securities Available for Sale | Amortized cost and approximate fair values of investment securities available for sale are summarized as follows: Gross Unrealized Losses Gross Less Amortized Unrealized Than 12 Months Fair (Dollars in thousands) Cost Gain 12 Months or Longer Value As of December 31, 2019 U.S. Government-sponsored securities $ 20,957 $ 235 $ - $ (2 ) $ 21,190 Municipal securities 56,252 670 (1 ) (9 ) 56,912 Mortgage-backed securities 321,944 2,188 (481 ) (543 ) 323,108 Corporate securities 5,000 - - (215 ) 4,785 $ 404,153 $ 3,093 $ (482 ) $ (769 ) $ 405,995 As of December 31, 2018 U.S. Government-sponsored securities $ 48,954 $ - $ - $ (588 ) $ 48,366 Municipal securities 10,274 59 (12 ) (53 ) 10,268 Mortgage-backed securities 222,218 218 (156 ) (4,523 ) 217,757 Corporate securities 5,000 - (23 ) (404 ) 4,573 $ 286,446 $ 277 $ (191 ) $ (5,568 ) $ 280,964 |
Summary of Carrying Amounts and Estimated Fair Values of Securities Held to Maturity | Carrying amounts and estimated fair values of securities held to maturity are as follows: Gross Unrealized Losses Gross Less Amortized Unrealized Than 12 Months Fair (Dollars in thousands) Cost Gain 12 Months or Longer Value As of December 31, 2019 Municipal securities $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - As of December 31, 2018 Municipal securities $ 65,462 $ 28 $ (39 ) $ (685 ) $ 64,766 $ 65,462 $ 28 $ (39 ) $ (685 ) $ 64,766 |
Summary of Gross Unrealized Losses and Fair Value for Securities Available for Sale and Held to Maturity | The gross unrealized losses and the fair value for securities available for sale and held to maturity are as follows: December 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 5,998 $ (2 ) $ 5,998 $ (2 ) Municipal securities 3,060 (1 ) 1,338 (9 ) 4,398 (10 ) Mortgage-backed securities 115,243 (481 ) 70,383 (543 ) 185,626 (1,024 ) Corporate securities - - 4,785 (215 ) 4,785 (215 ) $ 118,303 $ (482 ) $ 82,504 $ (769 ) $ 200,807 $ (1,251 ) Held to Maturity Municipal securities $ - $ - $ - $ - $ - $ - December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses Available for Sale U.S. Government-sponsored securities $ - $ - $ 48,366 $ (588 ) $ 48,366 $ (588 ) Municipal securities 1,701 (12 ) 4,095 (53 ) 5,796 (65 ) Mortgage-backed securities 35,155 (156 ) 150,569 (4,523 ) 185,724 (4,679 ) Corporate securities 1,977 (23 ) 2,596 (404 ) 4,573 (427 ) $ 38,833 $ (191 ) $ 205,626 $ (5,568 ) $ 244,459 $ (5,759 ) Held to Maturity Municipal securities $ 9,163 $ (39 ) $ 46,996 $ (685 ) $ 56,159 $ (724 ) |
Amortized Cost and Estimated Fair Values of Investment Securities that are Available for Sale and Held to Maturity by Contractual Maturity | The amortized cost and estimated fair values of investment securities that are available for sale and held to maturity at December 31, 2019, by contractual maturity, are as follows: Available for sale Held to maturity Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Securities maturing in: One year or less $ 24,499 $ 24,544 $ - $ - After one year through five years 52,563 52,893 - - After five years through ten years 56,694 56,973 - - After ten years 270,397 271,585 - - $ 404,153 $ 405,995 $ - $ - |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans | Loans are summarized as follows: (Dollars in thousands) 2019 2018 Loans held for investment: Commercial real estate loans: Real estate term $ 948,073 $ 891,131 Construction and land development 273,963 324,506 Total commercial real estate loans 1,222,036 1,215,637 Commercial and industrial loans 284,738 295,569 Consumer loans: Residential and home equity 162,559 155,601 Consumer and other 16,036 16,621 Total consumer loans 178,595 172,222 Gross loans held for investment 1,685,369 1,683,428 Less: Net deferred loan fees (4,451 ) (4,526 ) Loans held for investment 1,680,918 1,678,902 Less: allowance for loan losses (31,426 ) (25,245 ) Loans held for investment, net $ 1,649,492 $ 1,653,657 |
Summary of Changes in Allowance for Loan Losses | Changes in the allowance for loan losses are as follows: Year Ended December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Provisions for loan losses 2,401 (917 ) 5,157 370 (11 ) 7,000 Charge-offs (118 ) (5 ) (2,644 ) (19 ) (360 ) (3,146 ) Recoveries 24 890 1,152 38 223 2,327 Balance at end of year $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Year Ended December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 Provisions for loan losses 3,414 587 4,464 (170 ) 330 8,625 Charge-offs (294 ) (1 ) (2,801 ) — (369 ) (3,465 ) Recoveries 142 127 1,250 84 179 1,782 Balance at end of year $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Note 3 — Loans and Allowance for Loan Losses – Continued Year Ended December 31, 2017 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Balance at beginning of year $ 6,770 $ 5,449 $ 3,718 $ 617 $ 161 $ 16,715 Provisions for loan losses 67 731 1,423 406 123 2,750 Charge-offs (350 ) - (1,098 ) (359 ) (231 ) (2,038 ) Recoveries 219 129 271 151 106 876 Balance at end of year $ 6,706 $ 6,309 $ 4,314 $ 815 $ 159 $ 18,303 |
Summary of Nonaccrual Loans | Non-accrual loans are summarized as follows: (Dollars in thousands) 2019 2018 Non-accrual loans, not troubled debt restructured: Real estate term $ 2,416 $ 309 Construction and land development 60 - Commercial and industrial 1,550 347 Residential and home equity 45 - Consumer and other 8 - Total non-accrual loans, not troubled debt restructured 4,079 656 Troubled debt restructured loans, non-accrual: Real estate term 2,393 1,449 Construction and land development - - Commercial and industrial 658 150 Residential and home equity - - Consumer and other - - Total troubled debt restructured loans, non-accrual 3,051 1,599 Total non-accrual loans $ 7,130 $ 2,255 |
Summary of Troubled Debt Restructured Loans | Troubled debt restructured (“TDR”) loans are summarized as follows: (Dollars in thousands) 2019 2018 Accruing troubled debt restructured loans $ 25,346 $ 5,912 Non-accrual troubled debt restructured loans 3,051 1,599 Total troubled debt restructured loans $ 28,397 $ 7,511 |
Summary of Changes in Troubled Debt Restructured Loans | The following tables present TDRs that occurred during the periods presented and the TDRs for which the payment default occurred within twelve months of the restructure date. A default on a restructured loan results in a transfer to nonaccrual status, a charge-off or a combination of both. Year Ended December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) (2) Number of loans 9 1 32 5 - 47 Pre-modification balance $ 6,846 $ 4,075 $ 12,683 $ 1,647 $ - $ 25,251 Post-modification balance $ 6,846 $ 4,075 $ 12,683 $ 1,647 $ - $ 25,251 TDRs that subsequently defaulted Number of loans 1 - 1 - - 2 Pre-modification balance $ 1,094 $ - $ 18 $ - $ - $ 1,112 Year Ended December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total TDRs that occurred during the period (1) (2) Number of loans 4 - 6 1 - 11 Pre-modification balance $ 3,434 $ - $ 1,460 $ 532 $ - $ 5,426 Post-modification balance $ 3,434 $ - $ 1,460 $ 532 $ - $ 5,426 TDRs that subsequently defaulted Number of loans 2 - 3 - - 5 Pre-modification balance $ 1,449 $ - $ 150 $ - $ - $ 1,599 (1) (2) Generally, these modifications do not fit into one separate type, such as rate, term, amount, interest-only or payment, but instead are a combination of multiple types of modifications; therefore, they are disclosed in aggregate. |
Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) | Note 3 — Loans and Allowance for Loan Losses – Continued Current and past due loans held for investment (accruing and non-accruing) are summarized as follows: December 31, 2019 30-89 90+ Purchased Days Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 942,370 $ 534 $ - $ 4,809 $ 5,343 $ 360 $ 948,073 Construction and land development 273,268 570 - 60 630 65 273,963 Total commercial real estate 1,215,638 1,104 - 4,869 5,973 425 1,222,036 Commercial and industrial 279,072 403 - 2,208 2,611 3,055 284,738 Consumer: Residential and home equity 162,360 154 - 45 199 - 162,559 Consumer and other 15,727 298 3 8 309 - 16,036 Total consumer 178,087 452 3 53 508 - 178,595 Total gross loans $ 1,672,797 $ 1,959 $ 3 $ 7,130 $ 9,092 $ 3,480 $ 1,685,369 December 31, 2018 30-89 90+ Purchased Days Days Non- Total Credit Total (Dollars in thousands) Current Past Due Past Due accrual Past Due Impaired Loans Commercial real estate: Real estate term $ 886,974 $ 1,467 $ - $ 1,758 $ 3,225 $ 932 $ 891,131 Construction and land development 321,389 2,833 - - 2,833 284 324,506 Total commercial real estate 1,208,363 4,300 - 1,758 6,058 1,216 1,215,637 Commercial and industrial 288,328 3,225 - 497 3,722 3,519 295,569 Consumer: Residential and home equity 154,368 1,233 - - 1,233 - 155,601 Consumer and other 16,180 424 17 - 441 - 16,621 Total consumer 170,548 1,657 17 - 1,674 - 172,222 Total gross loans $ 1,667,239 $ 9,182 $ 17 $ 2,255 $ 11,454 $ 4,735 $ 1,683,428 |
Summary of Outstanding Loan Balances (Accruing and Non - Accruing) Categorized by Credit Quality Indicators | Outstanding loan balances (accruing and non-accruing) categorized by these credit quality indicators are summarized as follows: December 31, 2019 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 901,353 $ 23,202 $ 23,518 $ - $ 948,073 $ 12,275 Construction and land development 259,245 10,182 4,536 - 273,963 6,990 Total commercial real estate 1,160,598 33,384 28,054 - 1,222,036 19,265 Commercial and industrial 259,035 6,629 19,074 - 284,738 10,892 Consumer loans: Residential and home equity 158,364 204 3,991 - 162,559 1,118 Consumer and other 16,034 - 2 - 16,036 151 Total consumer 174,398 204 3,993 - 178,595 1,269 Total $ 1,594,031 $ 40,217 $ 51,121 $ - $ 1,685,369 $ 31,426 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Special Total Total (Dollars in thousands) Pass Mention Substandard Doubtful Loans Allowance Commercial real estate: Real estate term $ 865,472 $ 14,339 $ 11,320 $ - $ 891,131 $ 9,968 Construction and land development 322,625 1,332 549 - 324,506 7,022 Total commercial real estate 1,188,097 15,671 11,869 - 1,215,637 16,990 Commercial and industrial 271,825 10,138 13,606 - 295,569 7,227 Consumer loans: Residential and home equity 150,590 620 4,391 - 155,601 729 Consumer and other 16,574 29 18 - 16,621 299 Total consumer 167,164 649 4,409 - 172,222 1,028 Total $ 1,627,086 $ 26,458 $ 29,884 $ - $ 1,683,428 $ 25,245 |
Summary of Information on Impaired Loans | The ALLL and outstanding loan balances reviewed according to the Company’s impairment method are summarized as follows: December 31, 2019 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 825 $ 1,305 $ 4,901 $ 401 $ - $ 7,432 Collectively evaluated for impairment 11,255 5,669 5,991 717 151 23,783 Purchased credit-impaired loans 195 16 - - - 211 Total $ 12,275 $ 6,990 $ 10,892 $ 1,118 $ 151 $ 31,426 Outstanding loan balances: Individually evaluated for impairment $ 18,305 $ 4,474 $ 14,467 $ 3,701 $ - $ 40,947 Collectively evaluated for impairment 929,408 269,424 267,216 158,858 16,036 1,640,942 Purchased credit-impaired loans 360 65 3,055 - - 3,480 Total gross loans $ 948,073 $ 273,963 $ 284,738 $ 162,559 $ 16,036 $ 1,685,369 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Real Construction Commercial Residential Consumer Estate and Land and and Home and (Dollars in thousands) Term Development Industrial Equity Other Total Allowance for loan losses: Individually evaluated for impairment $ 324 $ - $ 1,781 $ 55 $ - $ 2,160 Collectively evaluated for impairment 9,644 7,022 5,446 674 299 23,085 Purchased credit-impaired loans - - - - - - Total $ 9,968 $ 7,022 $ 7,227 $ 729 $ 299 $ 25,245 Outstanding loan balances: Individually evaluated for impairment $ 9,689 $ 268 $ 9,581 $ 4,095 $ - $ 23,633 Collectively evaluated for impairment 880,510 323,954 282,469 151,506 16,621 1,655,060 Purchased credit-impaired loans 932 284 3,519 - - 4,735 Total gross loans $ 891,131 $ 324,506 $ 295,569 $ 155,601 $ 16,621 $ 1,683,428 Information on impaired loans is summarized as follows: December 31, 2019 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 18,305 $ 11,684 $ 6,621 $ 18,305 $ 825 Construction and land development 4,474 121 4,353 4,474 1,305 Total commercial real estate 22,779 11,805 10,974 22,779 2,130 Commercial and industrial 14,467 2,591 11,876 14,467 4,901 Consumer loans: Residential and home equity 3,701 3,194 507 3,701 401 Consumer and other - - - - - Total consumer 3,701 3,194 507 3,701 401 Total $ 40,947 $ 17,590 $ 23,357 $ 40,947 $ 7,432 Note 3 — Loans and Allowance for Loan Losses – Continued December 31, 2018 Recorded Investment Unpaid Total Principal With No With Recorded Related (Dollars in thousands) Balance Allowance Allowance Investment Allowance Commercial real estate: Real estate term $ 9,689 $ 3,823 $ 5,866 $ 9,689 $ 324 Construction and land development 997 268 - 268 - Total commercial real estate 10,686 4,091 5,866 9,957 324 Commercial and industrial 10,113 5,494 4,087 9,581 1,781 Consumer loans: Residential and home equity 4,095 3,046 1,049 4,095 55 Consumer and other - - - - - Total consumer 4,095 3,046 1,049 4,095 55 Total $ 24,894 $ 12,631 $ 11,002 $ 23,633 $ 2,160 The interest income recognized on impaired loans was as follows: Year Ended December 31, 2019 2018 2017 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income (Dollars in thousands) Investment Recognition Investment Recognition Investment Recognition Commercial real estate: Real estate term $ 14,516 $ 747 $ 8,027 $ 332 $ 6,489 $ 187 Construction and land development 3,668 274 1,499 106 3,107 137 Total commercial real estate 18,184 1,021 9,526 438 9,596 324 Commercial and industrial 12,496 780 8,049 426 7,552 276 Consumer loans: Residential and home equity 3,458 197 2,409 118 1,313 46 Consumer and other - - - - - - Total consumer 3,458 197 2,409 118 1,313 46 Total $ 34,138 $ 1,998 $ 19,984 $ 982 $ 18,461 $ 646 |
Summary of Changes In Accretable Yield for Purchased Loans | The following table presents the changes in the accretable yield for purchased loans for December 31, 2019, and 2018: December 31, (Dollars in thousands) 2019 2018 Balance, beginning of period $ 5,884 $ 8,536 Accretion to interest income (1,818 ) (2,866 ) Additions from acquisitions - - Reclassification from non-accretable difference 181 214 Balance, end of period $ 4,247 $ 5,884 |
Summary of Changes in Non-accretable Yield for Purchased Loans | The following table presents the changes in the non-accretable yield for purchased loans for December 31, 2019, and 2018: December 31, (Dollars in thousands) 2019 2018 Balance, beginning of period $ 2,942 $ 3,739 Additions from acquisitions - - Loans charged off - (583 ) Reclassification to accretable (181 ) (214 ) Balance, end of period $ 2,761 $ 2,942 |
Summary of Balance of Purchased Loans | The following table summarizes the balance of purchased loans as of December 31, 2019 and 2018: December 31, 2019 (Dollars in thousands) Performing Purchased Loans PCI Loans Total Acquired Loans Commercial real estate loans: Real estate term $ 155,644 $ 360 $ 156,004 Construction and land development 361 65 426 Total commercial real estate loans 156,005 425 156,430 Commercial and industrial loans 14,287 3,055 17,342 Consumer loans: Residential and home equity 21,963 - 21,963 Consumer and other 576 - 576 Total consumer loans 22,539 - 22,539 Total loans carrying balance $ 192,831 $ 3,480 $ 196,311 Total loans unpaid principal balance $ 197,094 $ 6,241 $ 203,335 December 31, 2018 (Dollars in thousands) Performing Purchased Loans PCI Loans Total Acquired Loans Commercial real estate loans: Real estate term $ 194,904 $ 932 $ 195,836 Construction and land development 7,801 284 8,085 Total commercial real estate loans 202,705 1,216 203,921 Commercial and industrial loans 34,492 3,519 38,011 Consumer loans: Residential and home equity 24,194 - 24,194 Consumer and other 940 - 940 Total consumer loans 25,134 - 25,134 Total loans carrying balance $ 262,331 $ 4,735 $ 267,066 Total loans unpaid principal balance $ 268,215 $ 7,677 $ 275,892 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows as of December 31: (Dollars in thousands) 2019 2018 Land and buildings $ 45,426 $ 45,060 Equipment, furniture, and software 27,691 24,095 73,117 69,155 Accumulated depreciation and amortization (33,643 ) (32,623 ) $ 39,474 $ 36,532 |
Schedule of Future Minimum Rental Commitments Required under Operating Leases That have Initial or Remaining Non-cancelable Lease Terms in Excess of One Year | The total future minimum rental commitments required under operating leases that have initial or remaining non-cancelable lease terms in excess of one year at December 31, 2019 are as follows: (Dollars in thousands) Amount 2020 $ 800 2021 704 2022 581 2023 256 2024 and beyond - $ 2,341 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Summary of Deposit Account Balances | Deposit account balances are summarized as follows as of December 31: (Dollars in thousands) 2019 2018 Non-interest bearing $ 719,410 $ 642,594 Interest bearing deposits: Interest bearing demand and savings 846,199 795,456 Money market accounts 324,565 257,308 Certificates of deposit less than or equal to $250,000 131,882 143,387 Certificates of deposit greater than $250,000 34,311 38,310 Total interest bearing deposits 1,336,957 1,234,461 Total deposits $ 2,056,367 $ 1,877,055 |
Scheduled Maturities for Certificates of Deposit | Scheduled maturities for certificates of deposit are as follows for the years ending December 31: (Dollars in thousands) Amount 2020 $ 93,543 2021 26,719 2022 13,979 2023 17,337 2024 and beyond 14,615 $ 166,193 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term borrowings and Information Concerning Short-term Borrowings | Note 6 — Short-term borrowings – Continued Information concerning short-term borrowings consist of the following as of December 31: (Dollars in thousands) 2019 2018 2017 Security repurchase agreements: Average daily balance $ - $ - $ 2,568 Weighted average rate 0.00 % 0.00 % 0.14 % Highest month-end balance $ - $ - $ 3,789 Year-end balance $ - $ - $ - Weighted average rate on outstanding at year-end 0.00 % 0.00 % 0.00 % Other short-term borrowings: Average daily balance $ 2,419 $ 71,880 $ 4,894 Weighted average rate 2.63 % 1.98 % 1.28 % Highest month-end balance $ - $ 145,000 $ 40,000 Year-end balance $ - $ - $ 40,000 Weighted average rate on outstanding at year-end 0.00 % 0.00 % 1.63 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows for the years ended December 31: (Dollars in thousands) 2019 2018 2017 Current: Federal $ 10,685 $ 11,167 $ 10,778 State 2,852 2,904 1,709 13,537 14,071 12,487 Deferred: Federal (26 ) (1,662 ) 3,468 State (8 ) (355 ) 522 Deferred (34 ) (2,017 ) 3,990 Income tax expense $ 13,503 $ 12,054 $ 16,477 |
Summary of Combined Federal and State Income Tax Expense Differs from Federal Statutory Corporate Tax Rate | The combined federal and state income tax expense differs from that computed at the federal statutory corporate tax rate as follows: 2019 2018 2017 Federal statutory rate 21.0 % 21.0 % 35.0 % Tax rate change 0.0 % (0.5 )% 13.0 % State taxes, net of federal income tax benefit 3.8 % 3.7 % 2.9 % Tax-exempt interest and income (0.8 )% (0.8 )% (2.1 )% Equity awards expense (0.3 )% (0.4 )% (2.8 )% Other, net (0.4 )% (0.1 )% (0.6 )% Effective tax rate 23.3 % 22.9 % 45.4 % |
Summary of Components of Net Deferred Income Tax Assets | The nature and components of the Company’s net deferred income tax assets are as follows as of December 31: (Dollars in thousands) 2019 2018 Deferred income tax assets: Allowance for loan losses $ 8,412 $ 7,435 Deferred loan fees and costs 1,635 1,920 Fair value adjustments on certificates of deposit 100 135 Deferred compensation 419 429 Unrealized loss on securities - 1,371 State income taxes 599 608 Other 612 902 11,777 12,800 Deferred income tax liabilities: FHLB dividends 166 166 Mortgage servicing rights 172 182 Unrealized gain on securities 461 - Basis difference in premises, equipment and other assets 1,262 938 2,061 1,286 Net deferred income tax assets $ 9,716 $ 11,514 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Contractual Amounts of Off-balance Sheet Financial Instruments | Contractual amounts of off-balance sheet financial instruments were as follows: (Dollars in thousands) 2019 2018 Commitments to extend credit, including unsecured commitments of $32,995 and $16,304 as of December 31, 2019 and 2018, respectively $ 632,577 $ 577,612 Stand-by letters of credit and bond commitments, including unsecured commitments of $555 and $730 as of December 31, 2019 and 2018, respectively 23,860 22,979 Unused credit card lines, all unsecured 26,121 24,885 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Summary of Actual and Required Capital Amounts and Ratios | The Company’s actual and required capital amounts and ratios are as follows: December 31, 2019 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 302,291 17.18 % $ 79,193 4.50 % $ 114,390 6.50 % Tier 1 Capital to Risk-Weighted Assets 302,291 17.18 % 105,590 6.00 % 140,787 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 324,415 18.43 % 140,787 8.00 % 175,984 10.00 % Tier 1 Leverage 302,291 12.67 % 95,431 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 297,108 16.88 % $ 79,191 4.50 % $ 114,387 6.50 % Tier 1 Capital to Risk-Weighted Assets 297,108 16.88 % 105,588 6.00 % 140,784 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 319,233 18.14 % 140,784 8.00 % 175,981 10.00 % Tier 1 Leverage 297,108 12.45 % 95,429 4.00 % 119,286 5.00 % December 31, 2018 Minimum Capital Well Capitalized Actual Requirement Requirement (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Consolidated CET1 Capital to Risk-Weighted Assets $ 264,790 15.11 % $ 78,857 4.50 % $ 113,904 6.50 % Tier 1 Capital to Risk-Weighted Assets 264,790 15.11 % 105,142 6.00 % 140,190 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 286,747 16.36 % 140,190 8.00 % 175,237 10.00 % Tier 1 Leverage 264,790 12.27 % 86,351 4.00 % NA NA Altabank TM CET1 Capital to Risk-Weighted Assets $ 261,703 14.94 % $ 78,833 4.50 % $ 113,870 6.50 % Tier 1 Capital to Risk-Weighted Assets 261,703 14.94 % 105,111 6.00 % 140,148 8.00 % Total Risk-Based Capital to Risk-Weighted Assets 283,654 16.19 % 140,148 8.00 % 175,185 10.00 % Tier 1 Leverage 261,703 12.12 % 86,346 4.00 % 107,932 5.00 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity Note [Abstract] | |
Summary of Dividends Per Share Declared and Paid | The following table summarizes dividends per share declared and paid per quarter for the periods indicated: Years Ended December 31, 2019 2018 First quarter $ 0.11 $ 0.09 Second quarter 0.12 0.10 Third quarter 0.13 0.11 Fourth quarter 0.13 0.11 Total $ 0.49 $ 0.41 |
Incentive Share-Based Plan an_2
Incentive Share-Based Plan and Other Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-Based Option Transactions | Share-based option transactions are summarized as follows: Weighted- Options Weighted Average Granted Average Remaining Aggregate for Common Exercise Contractual Intrinsic (Dollars in thousands, except share and per share data) Shares Price Term Value Outstanding at January 1, 2017 762,716 $ 7.42 Granted 17,692 29.59 Exercised (221,337 ) 7.76 Forfeited (14,358 ) 15.41 Outstanding at December 31, 2017 544,713 10.14 Granted 33,382 32.31 Exercised (218,928 ) 8.45 Forfeited (8,524 ) 7.61 Outstanding at December 31, 2018 350,643 13.38 Granted 545 27.53 Exercised (139,598 ) 9.05 Forfeited - - Outstanding at December 31, 2019 211,590 16.27 2.45 $ 3,603 Exercisable at December 31, 2019 190,514 14.59 2.54 2,965 Exercisable at December 31, 2018 292,100 11.27 3.25 5,562 |
Summary of Restricted Stock Unit | Note 11 — Incentive Share-Based Plan and Other Employee Benefits – Continued Restricted stock unit transactions are summarized as follows: Options Weighted Granted Average for Common Grant Date (Dollars in thousands, except share and per share data) Shares Fair Value Non-vested at January 1, 2017 27,895 $ 12.97 Granted 27,811 28.92 Vested (15,838 ) 13.37 Forfeited (292 ) 12.10 Non-vested at December 31, 2017 39,576 24.02 Granted 32,853 31.09 Vested (28,420 ) 32.06 Forfeited (1,565 ) 30.66 Non-vested at December 31, 2018 42,444 30.00 Granted 41,709 29.87 Vested (24,980 ) 25.96 Forfeited (5,124 ) 30.25 Non-vested at December 31, 2019 54,049 29.98 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Values of Financial Instruments | Note 12 — Fair Value – Continued The following table presents estimated fair values of the Company’s financial instruments as of December 31, 2019 and 2018: 2019 2018 Carrying Estimated Carrying Estimated (Dollars in thousands) Level Amount Fair Value Amount Fair Value Financial Assets: Cash and cash equivalents 1 $ 211,981 $ 211,981 $ 48,547 $ 48,547 Investment securities available for sale 2 395,410 395,410 280,964 280,964 Investment securities available for sale 3 10,585 10,585 - - Investment securities held to maturity 2 - - 50,905 50,364 Investment securities held to maturity 3 - - 14,557 14,402 Non-marketable securities 2 2,623 2,623 2,551 2,551 Loans held for sale 2 18,669 18,669 10,267 10,267 Loans held for investment 3 1,649,492 1,639,480 1,653,657 1,637,617 Financial Liabilities: Total deposits 2 $ 2,056,367 $ 1,851,954 $ 1,877,055 $ 1,675,992 |
Summary of Asset Measured on Recurring and Non-recurring Basic at Fair Value | Assets measured on a recurring and non-recurring basis are as follows: (Dollars in thousands) Level 1 Level 2 Level 3 Total As of December 31, 2019 Fair valued on a recurring basis: Investment securities available for sale $ - $ 395,410 $ 10,585 $ 405,995 Fair valued on a non-recurring basis: Impaired loans - - 17,497 17,497 As of December 31, 2018 Fair valued on a recurring basis: Investment securities available for sale $ - $ 280,964 $ - $ 280,964 Fair valued on a non-recurring basis: Impaired loans - - 7,304 7,304 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Financial information pertaining only to PUB, on a parent-only basis, is as follows as of and for the years ended December 31: (Dollars in thousands) 2019 2018 Balance Sheets Assets Cash and cash equivalents $ 4,895 $ 3,286 Investment in subsidiaries 327,178 287,075 Other assets 370 520 Total assets $ 332,443 $ 290,881 Liabilities and shareholders' equity Due to subsidiaries, net $ 61 $ 337 Other liabilities 20 382 Shareholders' equity 332,362 290,162 Total liabilities and shareholders' equity $ 332,443 $ 290,881 |
Statements of Income | (Dollars in thousands) 2019 2018 2017 Statements of Income Dividend and other income from subsidiaries $ 11,400 $ 7,900 $ 5,300 Interest and dividends 13 6 310 Total income 11,413 7,906 5,610 Salaries and employee benefits 121 283 1,455 Other expenses 775 666 420 Total expenses 896 949 1,875 Income before income taxes 10,517 6,957 3,735 Income tax benefit 208 266 575 10,725 7,223 4,310 Equity in undistributed net income of subsidiaries 33,599 33,409 15,536 Net income $ 44,324 $ 40,632 $ 19,846 |
Statements of Cash Flows | (Dollars in thousands) 2019 2018 2017 Statements of Cash Flows Cash flows from operating activities: Net income $ 44,324 $ 40,632 $ 19,846 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of the Bank (33,599 ) (33,409 ) (15,536 ) Net amortization of securities discounts and premiums - - - Change in other assets and liabilities (487 ) 214 (1,204 ) Net change provided by operating activities 10,238 7,437 3,106 Cash flows from investing activities: Purchase of available for sale securities - - - Maturities/sales of available for sale securities - - 34,278 Investments in banking subsidiary - - (46,977 ) Net change (used in) provided by investing activities - - (12,699 ) Cash flows from financing activities: Issuance of common shares - - 13,977 Exercise of stock options 596 887 1,395 Dividends paid (9,225 ) (7,657 ) (6,106 ) Net change (used in) provided by financing activities (8,629 ) (6,770 ) 9,266 Net change in cash and cash equivalents 1,609 667 (327 ) Cash and cash equivalents, beginning of year 3,286 2,619 2,946 Cash and cash equivalents, end of year $ 4,895 $ 3,286 $ 2,619 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banner Bank | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed and Recognized | The following table summarizes the consideration paid and the fair value of the assets acquired and liabilities assumed and recognized at the acquisition date. (Dollars in thousands) Purchase Price Cash $ 100,283 Premium paid on average deposits 13,762 Total consideration $ 114,045 Recorded amounts of assets acquired and liabilities assumed Assets Loans, net of discounts $ 251,782 Premises & equipment 3,467 Core deposit intangible 2,604 Other assets 1,761 Total assets 259,614 Liabilities Deposits, net of premiums 160,292 Other liabilities 175 Total liabilities assumed 160,467 Total net assets from merger $ 99,147 Goodwill $ 14,898 |
Town & Country Bank, Inc. | |
Business Acquisition [Line Items] | |
Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed and Recognized | Note 15 —Acquisitions – Continued The following table summarizes the consideration paid and the fair value of the assets acquired and liabilities assumed and recognized at the acquisition date. (Dollars in thousands, except share data) Purchase Price PUB common shares issued for Town & Country shares 466,546 PUB share price at closing $ 29.96 Consideration from common stock conversion (0.2916 ratio) $ 13,977 Cash 11,603 Total consideration $ 25,580 Recorded amounts of assets acquired and liabilities assumed Assets Cash and cash equivalents $ 13,401 Investment securities 9,585 Loans, net of discounts 110,334 Premises & equipment 145 Core deposit intangible 845 Bank owned life insurance 3,332 Deferred income tax asset 2,571 Other assets 4,161 Total assets 144,374 Liabilities Deposits, net of premiums 123,777 Other liabilities 6,127 Total liabilities assumed 129,904 Total net assets from merger $ 14,470 Goodwill $ 11,110 |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Data | Summarized unaudited quarterly financial data is as follows: Quarters Ended 2019 (Dollars in thousands, except share and per share data) March 31 June 30 September 30 December 31 Net interest income $ 26,907 $ 27,720 $ 28,191 $ 27,100 Provision for loan losses 1,550 2,150 2,100 1,200 Non-interest income 3,337 3,598 4,467 3,779 Non-interest expense 14,916 14,699 16,068 14,589 Income before income tax expense 13,778 14,469 14,490 15,090 Income tax expense 3,273 3,480 3,355 3,395 Net income $ 10,505 $ 10,989 $ 11,135 $ 11,695 Earnings per common share: Basic $ 0.56 $ 0.58 $ 0.59 $ 0.62 Diluted $ 0.55 $ 0.58 $ 0.59 $ 0.61 Quarters Ended 2018 (Dollars in thousands, except share and per share data) March 31 June 30 September 30 December 31 Net interest income $ 25,944 $ 26,978 $ 27,182 $ 28,074 Provision for loan losses 2,050 1,475 1,925 3,175 Non-interest income 3,718 4,066 3,794 3,551 Non-interest expense 16,048 15,823 15,280 14,845 Income before income tax expense 11,564 13,746 13,771 13,605 Income tax expense 2,560 3,279 3,288 2,927 Net income $ 9,004 $ 10,467 $ 10,483 $ 10,678 Earnings per common share: Basic $ 0.48 $ 0.56 $ 0.56 $ 0.57 Diluted $ 0.48 $ 0.55 $ 0.55 $ 0.56 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)Branch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jan. 01, 2019USD ($)Property | |
Significant Accounting Policies [Line Items] | |||||
Advertising cost | $ 1,800,000 | $ 1,300,000 | $ 1,400,000 | ||
Public float | $ 466,000 | ||||
Annual revenues | $ 130,000 | ||||
Number of real property leases under non-cancelable operating leases | Property | 6 | ||||
ASU 2016-02 | |||||
Significant Accounting Policies [Line Items] | |||||
Number of properties under right-of-use assets and lease liabilities | Property | 5 | ||||
Operating lease, right of use asset | $ 2,200,000 | ||||
Operating lease liability | $ 2,200,000 | ||||
RSU | |||||
Significant Accounting Policies [Line Items] | |||||
Vesting period | 3 years | ||||
Vesting period, description | RSU awards generally vest in thirds over three years from date of grant. | ||||
Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Threshold period past due for loans placed on non-accrual status | 90 days | ||||
Minimum | ASU 2016-13 | |||||
Significant Accounting Policies [Line Items] | |||||
Expected increase in allowance for credit losses | $ 10,000,000 | ||||
Expected percentage of increase in allowance for credit losses | 30.00% | ||||
Expected gross-up for nonaccretable discounts on PCD loans | $ 2,500,000 | ||||
Expected percentage of increase in gross-up for nonaccretable discounts on PCD loans | 10.00% | ||||
Expected increase in cumulative, tax-effected impact to total shareholders’ equity | $ 6,000,000 | ||||
Expected percentage of increase in cumulative, tax-effected impact to shareholders’ equity | 2.00% | ||||
Maximum | ASU 2016-13 | |||||
Significant Accounting Policies [Line Items] | |||||
Expected increase in allowance for credit losses | $ 14,000,000 | ||||
Expected percentage of increase in allowance for credit losses | 45.00% | ||||
Expected gross-up for nonaccretable discounts on PCD loans | $ 5,000,000 | ||||
Expected percentage of increase in gross-up for nonaccretable discounts on PCD loans | 15.00% | ||||
Expected increase in cumulative, tax-effected impact to total shareholders’ equity | $ 8,000,000 | ||||
Expected percentage of increase in cumulative, tax-effected impact to shareholders’ equity | 2.50% | ||||
People's Intermountain Bank | |||||
Significant Accounting Policies [Line Items] | |||||
Number of retail branches | Branch | 26 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Related Assets (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building and Building Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Building and Building Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 40 years |
Leasehold Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Leasehold Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Furniture and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 15 years |
Computers Software and Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Computers Software and Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Earnings 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 | |
Numerator | |||||||||||
Net income | $ 11,695 | $ 11,135 | $ 10,989 | $ 10,505 | $ 10,678 | $ 10,483 | $ 10,467 | $ 9,004 | $ 44,324 | $ 40,632 | $ 19,846 |
Denominator | |||||||||||
Weighted-average number of common shares outstanding | 18,822,103 | 18,679,165 | 18,019,643 | ||||||||
Incremental shares assumed for stock options and RSUs | 194,944 | 303,356 | 427,978 | ||||||||
Weighted-average number of dilutive shares outstanding | 19,017,047 | 18,982,521 | 18,447,621 | ||||||||
Basic earnings per common share | $ 0.62 | $ 0.59 | $ 0.58 | $ 0.56 | $ 0.57 | $ 0.56 | $ 0.56 | $ 0.48 | $ 2.35 | $ 2.18 | $ 1.10 |
Diluted earnings per common share | $ 0.61 | $ 0.59 | $ 0.58 | $ 0.55 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.48 | $ 2.33 | $ 2.14 | $ 1.08 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost and Approximate Fair Values of Investment Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | $ 404,153 | $ 286,446 |
Available for Sale, Gross Unrealized Gains | 3,093 | 277 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (482) | (191) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (769) | (5,568) |
Available for Sale, Fair Value | 405,995 | 280,964 |
U.S. Government Sponsored Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 20,957 | 48,954 |
Available for Sale, Gross Unrealized Gains | 235 | |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (2) | (588) |
Available for Sale, Fair Value | 21,190 | 48,366 |
Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 321,944 | 222,218 |
Available for Sale, Gross Unrealized Gains | 2,188 | 218 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (481) | (156) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (543) | (4,523) |
Available for Sale, Fair Value | 323,108 | 217,757 |
Municipal Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 56,252 | 10,274 |
Available for Sale, Gross Unrealized Gains | 670 | 59 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (1) | (12) |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (9) | (53) |
Available for Sale, Fair Value | 56,912 | 10,268 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 5,000 | 5,000 |
Available for Sale, Gross Unrealized Losses, Less Than 12 Months | (23) | |
Available for Sale, Gross Unrealized Losses, 12 Months or Longer | (215) | (404) |
Available for Sale, Fair Value | $ 4,785 | $ 4,573 |
Investment Securities - Summa_2
Investment Securities - Summary of Carrying Amounts and Estimated Fair Values of Securities Held to Maturity (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Schedule Of Held To Maturity Securities [Line Items] | |
Held to Maturity, Amortized Cost | $ 65,462 |
Held to Maturity, Gross Unrealized Gain | 28 |
Held to Maturity, Gross Unrealized Losses, Less Than 12 Months | (39) |
Held to Maturity, Gross Unrealized Losses, 12 Months or Longer | (685) |
Held to Maturity, Fair Value | 64,766 |
Municipal Securities | |
Schedule Of Held To Maturity Securities [Line Items] | |
Held to Maturity, Amortized Cost | 65,462 |
Held to Maturity, Gross Unrealized Gain | 28 |
Held to Maturity, Gross Unrealized Losses, Less Than 12 Months | (39) |
Held to Maturity, Gross Unrealized Losses, 12 Months or Longer | (685) |
Held to Maturity, Fair Value | $ 64,766 |
Investment Securities - Summa_3
Investment Securities - Summary of Gross Unrealized Losses and Fair Value for Securities Available for Sale and Held to Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | $ 118,303 | $ 38,833 |
Available for Sale, 12 Months or More, Fair Value | 82,504 | 205,626 |
Available for Sale, Fair Value, Total | 200,807 | 244,459 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (482) | (191) |
Available for Sale, 12 Months or More, Unrealized Losses | (769) | (5,568) |
Available for Sale, Unrealized Losses, Total | (1,251) | (5,759) |
Held to Maturity, Gross Unrealized Losses, Less Than 12 Months | (39) | |
Held to Maturity, Gross Unrealized Losses, 12 Months or Longer | (685) | |
Municipal Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | 3,060 | 1,701 |
Available for Sale, 12 Months or More, Fair Value | 1,338 | 4,095 |
Available for Sale, Fair Value, Total | 4,398 | 5,796 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (1) | (12) |
Available for Sale, 12 Months or More, Unrealized Losses | (9) | (53) |
Available for Sale, Unrealized Losses, Total | (10) | (65) |
Held to Maturity, Less Than 12 Months, Fair Value | 9,163 | |
Held to Maturity, 12 Months or More, Fair Value | 46,996 | |
Held to Maturity, Fair Value, Total | 56,159 | |
Held to Maturity, Gross Unrealized Losses, Less Than 12 Months | (39) | |
Held to Maturity, Gross Unrealized Losses, 12 Months or Longer | (685) | |
Held to Maturity, Unrealized Losses, Total | (724) | |
Corporate Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | 1,977 | |
Available for Sale, 12 Months or More, Fair Value | 4,785 | 2,596 |
Available for Sale, Fair Value, Total | 4,785 | 4,573 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (23) | |
Available for Sale, 12 Months or More, Unrealized Losses | (215) | (404) |
Available for Sale, Unrealized Losses, Total | (215) | (427) |
U.S. Government Sponsored Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, 12 Months or More, Fair Value | 5,998 | 48,366 |
Available for Sale, Fair Value, Total | 5,998 | 48,366 |
Available for Sale, 12 Months or More, Unrealized Losses | (2) | (588) |
Available for Sale, Unrealized Losses, Total | (2) | (588) |
Mortgage-backed Securities | ||
Available-for-Sale and Held-to-Maturity Securities Continuous Unrealized Loss Position [Line Items] | ||
Available for Sale, Less Than 12 Months, Fair Value | 115,243 | 35,155 |
Available for Sale, 12 Months or More, Fair Value | 70,383 | 150,569 |
Available for Sale, Fair Value, Total | 185,626 | 185,724 |
Available for Sale, Less Than 12 Months, Unrealized Losses | (481) | (156) |
Available for Sale, 12 Months or More, Unrealized Losses | (543) | (4,523) |
Available for Sale, Unrealized Losses, Total | $ (1,024) | $ (4,679) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Values of Investment Securities that are Available for Sale and Held to Maturity by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale Securities by Maturity, Amortized Cost | ||
Available for sale, Securities maturing in one year or less, Amortized cost | $ 24,499 | |
Available for sale, Securities maturing in After one year through five years, Amortized cost | 52,563 | |
Available for sale, Securities maturing in After five years through ten years, Amortized cost | 56,694 | |
Available for sale, Securities maturing in After ten years, Amortized cost | 270,397 | |
Available for Sale, Amortized Cost | 404,153 | $ 286,446 |
Available for sale Securities by Maturity, Fair Value | ||
Available for sale, Securities maturing in one year or less, Fair Value | 24,544 | |
Available for sale, Securities maturing in After one year through five years, Fair Value | 52,893 | |
Available for sale, Securities maturing in After five years through ten years, Fair Value | 56,973 | |
Available for sale, Securities maturing in After ten years, Fair Value | 271,585 | |
Available for sale, Fair Value | $ 405,995 | 280,964 |
Held to maturity Securities by Maturity, Amortized Cost | ||
Held to Maturity, Amortized Cost | 65,462 | |
Held to maturity Securities by Maturity, Fair Value | ||
Held to maturity, Fair Value | $ 64,766 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities | Dec. 31, 2017USD ($)Securities | |
Investments Debt And Equity Securities [Abstract] | |||
Number of available for sale investment securities with fair value less than amortized cost | Securities | 146 | 201 | |
Number of maturity securities with fair values less than amortized cost | Securities | 0 | 122 | |
Sales of available for sale securities | $ 2,100,000 | $ 500,000 | $ 126,200,000 |
Net loss in sales of available for sale securities | $ 4,000 | $ 336,000 | $ 486,000 |
Available for sale securities in a nonaccrual status | Securities | 0 | 0 | 0 |
Sales of held-to-maturity securities | $ 0 | $ 0 | $ 204,000 |
Net loss in sales of held-to-maturity securities | $ 13,000 | ||
Held to maturity securities in a nonaccrual status | Securities | 0 | 0 | 0 |
Held to maturity to available for sale transfer, number of securities | Securities | 140 | ||
Held to maturity to available for sale transfer amount | $ 64,600,000 | ||
Held to maturity to available for sale transfer, unrecognized loss | $ 19,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | $ 1,685,369 | $ 1,683,428 | ||
Net deferred loan fees | (4,451) | (4,526) | ||
Loans held for investment | 1,680,918 | 1,678,902 | ||
Less: allowance for loan losses | (31,426) | (25,245) | $ (18,303) | $ (16,715) |
Total loans held for investment, net | 1,649,492 | 1,653,657 | ||
Real Estate Term | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 948,073 | 891,131 | ||
Less: allowance for loan losses | (12,275) | (9,968) | (6,706) | (6,770) |
Construction and Land Development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 273,963 | 324,506 | ||
Less: allowance for loan losses | (6,990) | (7,022) | (6,309) | (5,449) |
Residential and Home Equity | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 162,559 | 155,601 | ||
Less: allowance for loan losses | (1,118) | (729) | (815) | (617) |
Consumer and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 16,036 | 16,621 | ||
Less: allowance for loan losses | (151) | (299) | (159) | (161) |
Commercial Real Estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 1,222,036 | 1,215,637 | ||
Less: allowance for loan losses | (19,265) | (16,990) | ||
Commercial Real Estate | Real Estate Term | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 948,073 | 891,131 | ||
Less: allowance for loan losses | (12,275) | (9,968) | ||
Commercial Real Estate | Construction and Land Development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 273,963 | 324,506 | ||
Less: allowance for loan losses | (6,990) | (7,022) | ||
Commercial and Industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 284,738 | 295,569 | ||
Less: allowance for loan losses | (10,892) | (7,227) | $ (4,314) | $ (3,718) |
Consumer | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 178,595 | 172,222 | ||
Less: allowance for loan losses | (1,269) | (1,028) | ||
Consumer | Residential and Home Equity | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 162,559 | 155,601 | ||
Less: allowance for loan losses | (1,118) | (729) | ||
Consumer | Consumer and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Gross loans held for investment | 16,036 | 16,621 | ||
Less: allowance for loan losses | $ (151) | $ (299) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of Changes in Allowance for Loan 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 | |
Allowance for loan losses: | |||||||||||
Balance at beginning of year | $ 25,245 | $ 18,303 | $ 25,245 | $ 18,303 | $ 16,715 | ||||||
Provision for loan losses | $ 1,200 | $ 2,100 | $ 2,150 | 1,550 | $ 3,175 | $ 1,925 | $ 1,475 | 2,050 | 7,000 | 8,625 | 2,750 |
Charge-offs | (3,146) | (3,465) | (2,038) | ||||||||
Recoveries | 2,327 | 1,782 | 876 | ||||||||
Balance at end of year | 31,426 | 25,245 | 31,426 | 25,245 | 18,303 | ||||||
Real Estate Term | |||||||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of year | 9,968 | 6,706 | 9,968 | 6,706 | 6,770 | ||||||
Provision for loan losses | 2,401 | 3,414 | 67 | ||||||||
Charge-offs | (118) | (294) | (350) | ||||||||
Recoveries | 24 | 142 | 219 | ||||||||
Balance at end of year | 12,275 | 9,968 | 12,275 | 9,968 | 6,706 | ||||||
Construction and Land Development | |||||||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of year | 7,022 | 6,309 | 7,022 | 6,309 | 5,449 | ||||||
Provision for loan losses | (917) | 587 | 731 | ||||||||
Charge-offs | (5) | (1) | |||||||||
Recoveries | 890 | 127 | 129 | ||||||||
Balance at end of year | 6,990 | 7,022 | 6,990 | 7,022 | 6,309 | ||||||
Residential and Home Equity | |||||||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of year | 729 | 815 | 729 | 815 | 617 | ||||||
Provision for loan losses | 370 | (170) | 406 | ||||||||
Charge-offs | (19) | (359) | |||||||||
Recoveries | 38 | 84 | 151 | ||||||||
Balance at end of year | 1,118 | 729 | 1,118 | 729 | 815 | ||||||
Consumer and Other | |||||||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of year | 299 | 159 | 299 | 159 | 161 | ||||||
Provision for loan losses | (11) | 330 | 123 | ||||||||
Charge-offs | (360) | (369) | (231) | ||||||||
Recoveries | 223 | 179 | 106 | ||||||||
Balance at end of year | 151 | 299 | 151 | 299 | 159 | ||||||
Commercial and Industrial | |||||||||||
Allowance for loan losses: | |||||||||||
Balance at beginning of year | $ 7,227 | $ 4,314 | 7,227 | 4,314 | 3,718 | ||||||
Provision for loan losses | 5,157 | 4,464 | 1,423 | ||||||||
Charge-offs | (2,644) | (2,801) | (1,098) | ||||||||
Recoveries | 1,152 | 1,250 | 271 | ||||||||
Balance at end of year | $ 10,892 | $ 7,227 | $ 10,892 | $ 7,227 | $ 4,314 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Non Accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 4,079 | $ 656 |
Troubled debt restructured loans, non-accrual | 3,051 | 1,599 |
Total non-accrual loans | 7,130 | 2,255 |
Real Estate Term | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 2,416 | 309 |
Troubled debt restructured loans, non-accrual | 2,393 | 1,449 |
Construction and Land Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 60 | |
Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 1,550 | 347 |
Troubled debt restructured loans, non-accrual | 658 | $ 150 |
Residential and Home Equity | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | 45 | |
Consumer and Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Non-accrual loans, not troubled debt restructured | $ 8 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Purchased credit impaired loans not performing contractual terms | $ 1,660,000 | $ 2,240,000 |
Total non-accrual loans | 7,130,000 | 2,255,000 |
Troubled debt restructured loans, non-accrual | 3,051,000 | 1,599,000 |
Purchased credit impaired loans | 1,660,000 | 2,240,000 |
Outstanding contractual unpaid principal balance, excluding acquisition accounting adjustments | 203,335,000 | 275,892,000 |
Carrying balance of PCI loans | 196,311,000 | 267,066,000 |
Available lines of credit for loans and credit cards to affiliates | 278,000 | |
Affiliates | ||
Financing Receivable Impaired [Line Items] | ||
Outstanding loans with affiliates | 5,400,000 | 5,600,000 |
PCI Loans | ||
Financing Receivable Impaired [Line Items] | ||
Total non-accrual loans | 8,800,000 | 4,500,000 |
Troubled debt restructured loans, non-accrual | 0 | 0 |
Outstanding contractual unpaid principal balance, excluding acquisition accounting adjustments | 6,241,000 | 7,677,000 |
Carrying balance of PCI loans | $ 3,480,000 | $ 4,735,000 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Troubled Debt Restructured Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Abstract] | ||
Accruing troubled debt restructured loans | $ 25,346 | $ 5,912 |
Non-accrual troubled debt restructured loans | 3,051 | 1,599 |
Total troubled debt restructured loans | $ 28,397 | $ 7,511 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Changes in Troubled Debt Restructured Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 47 | 11 |
Pre-modification balance | $ 25,251 | $ 5,426 |
Post-modification balance | $ 25,251 | $ 5,426 |
Number of loans, subsequently defaulted | Loan | 2 | 5 |
Pre-modification balance, subsequently defaulted | $ 1,112 | $ 1,599 |
Real Estate Term | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 9 | 4 |
Pre-modification balance | $ 6,846 | $ 3,434 |
Post-modification balance | $ 6,846 | $ 3,434 |
Number of loans, subsequently defaulted | Loan | 1 | 2 |
Pre-modification balance, subsequently defaulted | $ 1,094 | $ 1,449 |
Construction and Land Development | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 1 | |
Pre-modification balance | $ 4,075 | |
Post-modification balance | $ 4,075 | |
Commercial and Industrial | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 32 | 6 |
Pre-modification balance | $ 12,683 | $ 1,460 |
Post-modification balance | $ 12,683 | $ 1,460 |
Number of loans, subsequently defaulted | Loan | 1 | 3 |
Pre-modification balance, subsequently defaulted | $ 18 | $ 150 |
Residential and Home Equity | ||
Loans And Leases Receivable Disclosure [Line Items] | ||
Number of loans | Loan | 5 | 1 |
Pre-modification balance | $ 1,647 | $ 532 |
Post-modification balance | $ 1,647 | $ 532 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Current and Past Due Loans Held For Investment (Accruing And Non-Accruing) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | $ 1,672,797 | $ 1,667,239 |
30-89 Days Past Due | 1,959 | 9,182 |
90+ Days Past Due | 3 | 17 |
Non-accrual | 7,130 | 2,255 |
Total Past-Due | 9,092 | 11,454 |
Purchased Credit Impaired | 3,480 | 4,735 |
Total loans | 1,685,369 | 1,683,428 |
Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 360 | 932 |
Total loans | 948,073 | 891,131 |
Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Purchased Credit Impaired | 65 | 284 |
Total loans | 273,963 | 324,506 |
Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 162,559 | 155,601 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total loans | 16,036 | 16,621 |
Commercial Real Estate | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 1,215,638 | 1,208,363 |
30-89 Days Past Due | 1,104 | 4,300 |
Non-accrual | 4,869 | 1,758 |
Total Past-Due | 5,973 | 6,058 |
Purchased Credit Impaired | 425 | 1,216 |
Total loans | 1,222,036 | 1,215,637 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 942,370 | 886,974 |
30-89 Days Past Due | 534 | 1,467 |
Non-accrual | 4,809 | 1,758 |
Total Past-Due | 5,343 | 3,225 |
Purchased Credit Impaired | 360 | 932 |
Total loans | 948,073 | 891,131 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 273,268 | 321,389 |
30-89 Days Past Due | 570 | 2,833 |
Non-accrual | 60 | |
Total Past-Due | 630 | 2,833 |
Purchased Credit Impaired | 65 | 284 |
Total loans | 273,963 | 324,506 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 279,072 | 288,328 |
30-89 Days Past Due | 403 | 3,225 |
Non-accrual | 2,208 | 497 |
Total Past-Due | 2,611 | 3,722 |
Purchased Credit Impaired | 3,055 | 3,519 |
Total loans | 284,738 | 295,569 |
Consumer | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 178,087 | 170,548 |
30-89 Days Past Due | 452 | 1,657 |
90+ Days Past Due | 3 | 17 |
Non-accrual | 53 | |
Total Past-Due | 508 | 1,674 |
Total loans | 178,595 | 172,222 |
Consumer | Residential and Home Equity | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 162,360 | 154,368 |
30-89 Days Past Due | 154 | 1,233 |
Non-accrual | 45 | |
Total Past-Due | 199 | 1,233 |
Total loans | 162,559 | 155,601 |
Consumer | Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 15,727 | 16,180 |
30-89 Days Past Due | 298 | 424 |
90+ Days Past Due | 3 | 17 |
Non-accrual | 8 | |
Total Past-Due | 309 | 441 |
Total loans | $ 16,036 | $ 16,621 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Summary of Outstanding Loan Balances (Accruing and Non - Accruing) Categorized by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | $ 1,685,369 | $ 1,683,428 | ||
Total Allowance | 31,426 | 25,245 | $ 18,303 | $ 16,715 |
Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 948,073 | 891,131 | ||
Total Allowance | 12,275 | 9,968 | 6,706 | 6,770 |
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 273,963 | 324,506 | ||
Total Allowance | 6,990 | 7,022 | 6,309 | 5,449 |
Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 162,559 | 155,601 | ||
Total Allowance | 1,118 | 729 | 815 | 617 |
Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 16,036 | 16,621 | ||
Total Allowance | 151 | 299 | 159 | 161 |
Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 1,222,036 | 1,215,637 | ||
Total Allowance | 19,265 | 16,990 | ||
Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 948,073 | 891,131 | ||
Total Allowance | 12,275 | 9,968 | ||
Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 273,963 | 324,506 | ||
Total Allowance | 6,990 | 7,022 | ||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 284,738 | 295,569 | ||
Total Allowance | 10,892 | 7,227 | $ 4,314 | $ 3,718 |
Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 178,595 | 172,222 | ||
Total Allowance | 1,269 | 1,028 | ||
Consumer | Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 162,559 | 155,601 | ||
Total Allowance | 1,118 | 729 | ||
Consumer | Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 16,036 | 16,621 | ||
Total Allowance | 151 | 299 | ||
Pass | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 1,594,031 | 1,627,086 | ||
Pass | Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 1,160,598 | 1,188,097 | ||
Pass | Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 901,353 | 865,472 | ||
Pass | Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 259,245 | 322,625 | ||
Pass | Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 259,035 | 271,825 | ||
Pass | Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 174,398 | 167,164 | ||
Pass | Consumer | Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 158,364 | 150,590 | ||
Pass | Consumer | Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 16,034 | 16,574 | ||
Special Mention | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 40,217 | 26,458 | ||
Special Mention | Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 33,384 | 15,671 | ||
Special Mention | Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 23,202 | 14,339 | ||
Special Mention | Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 10,182 | 1,332 | ||
Special Mention | Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 6,629 | 10,138 | ||
Special Mention | Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 204 | 649 | ||
Special Mention | Consumer | Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 204 | 620 | ||
Special Mention | Consumer | Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 29 | |||
Substandard | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 51,121 | 29,884 | ||
Substandard | Commercial Real Estate | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 28,054 | 11,869 | ||
Substandard | Commercial Real Estate | Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 23,518 | 11,320 | ||
Substandard | Commercial Real Estate | Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 4,536 | 549 | ||
Substandard | Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 19,074 | 13,606 | ||
Substandard | Consumer | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 3,993 | 4,409 | ||
Substandard | Consumer | Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | 3,991 | 4,391 | ||
Substandard | Consumer | Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Total Loans | $ 2 | $ 18 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summary of ALLL And Outstanding Loan Balances According To The Company's Impairment Method (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | $ 7,432 | $ 2,160 | ||
Allowance for loan losses, Collectively evaluated for impairment | 23,783 | 23,085 | ||
Allowance for loan losses, Purchased credit-impaired loans | 211 | |||
Allowance for loan losses, Total | 31,426 | 25,245 | $ 18,303 | $ 16,715 |
Outstanding loan balances, Individually evaluated for impairment | 40,947 | 23,633 | ||
Outstanding loan balances, Collectively evaluated for impairment | 1,640,942 | 1,655,060 | ||
Outstanding loan balances, Purchased credit-impaired loans | 3,480 | 4,735 | ||
Total loans | 1,685,369 | 1,683,428 | ||
Real Estate Term | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 825 | 324 | ||
Allowance for loan losses, Collectively evaluated for impairment | 11,255 | 9,644 | ||
Allowance for loan losses, Purchased credit-impaired loans | 195 | |||
Allowance for loan losses, Total | 12,275 | 9,968 | 6,706 | 6,770 |
Outstanding loan balances, Individually evaluated for impairment | 18,305 | 9,689 | ||
Outstanding loan balances, Collectively evaluated for impairment | 929,408 | 880,510 | ||
Outstanding loan balances, Purchased credit-impaired loans | 360 | 932 | ||
Total loans | 948,073 | 891,131 | ||
Construction and Land Development | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 1,305 | |||
Allowance for loan losses, Collectively evaluated for impairment | 5,669 | 7,022 | ||
Allowance for loan losses, Purchased credit-impaired loans | 16 | |||
Allowance for loan losses, Total | 6,990 | 7,022 | 6,309 | 5,449 |
Outstanding loan balances, Individually evaluated for impairment | 4,474 | 268 | ||
Outstanding loan balances, Collectively evaluated for impairment | 269,424 | 323,954 | ||
Outstanding loan balances, Purchased credit-impaired loans | 65 | 284 | ||
Total loans | 273,963 | 324,506 | ||
Residential and Home Equity | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 401 | 55 | ||
Allowance for loan losses, Collectively evaluated for impairment | 717 | 674 | ||
Allowance for loan losses, Total | 1,118 | 729 | 815 | 617 |
Outstanding loan balances, Individually evaluated for impairment | 3,701 | 4,095 | ||
Outstanding loan balances, Collectively evaluated for impairment | 158,858 | 151,506 | ||
Total loans | 162,559 | 155,601 | ||
Consumer and Other | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Collectively evaluated for impairment | 151 | 299 | ||
Allowance for loan losses, Total | 151 | 299 | 159 | 161 |
Outstanding loan balances, Collectively evaluated for impairment | 16,036 | 16,621 | ||
Total loans | 16,036 | 16,621 | ||
Commercial and Industrial | ||||
Financing Receivable Allowance For Credit Losses [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 4,901 | 1,781 | ||
Allowance for loan losses, Collectively evaluated for impairment | 5,991 | 5,446 | ||
Allowance for loan losses, Total | 10,892 | 7,227 | $ 4,314 | $ 3,718 |
Outstanding loan balances, Individually evaluated for impairment | 14,467 | 9,581 | ||
Outstanding loan balances, Collectively evaluated for impairment | 267,216 | 282,469 | ||
Outstanding loan balances, Purchased credit-impaired loans | 3,055 | 3,519 | ||
Total loans | $ 284,738 | $ 295,569 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summary of Information On Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | $ 40,947 | $ 24,894 |
Recorded investment With No Allowance | 17,590 | 12,631 |
Recorded investment With Allowance | 23,357 | 11,002 |
Total Recorded Investment | 40,947 | 23,633 |
Related Allowance | 7,432 | 2,160 |
Commercial Real Estate | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 22,779 | 10,686 |
Recorded investment With No Allowance | 11,805 | 4,091 |
Recorded investment With Allowance | 10,974 | 5,866 |
Total Recorded Investment | 22,779 | 9,957 |
Related Allowance | 2,130 | 324 |
Commercial Real Estate | Real Estate Term | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 18,305 | 9,689 |
Recorded investment With No Allowance | 11,684 | 3,823 |
Recorded investment With Allowance | 6,621 | 5,866 |
Total Recorded Investment | 18,305 | 9,689 |
Related Allowance | 825 | 324 |
Commercial Real Estate | Construction and Land Development | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 4,474 | 997 |
Recorded investment With No Allowance | 121 | 268 |
Recorded investment With Allowance | 4,353 | |
Total Recorded Investment | 4,474 | 268 |
Related Allowance | 1,305 | |
Commercial and Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 14,467 | 10,113 |
Recorded investment With No Allowance | 2,591 | 5,494 |
Recorded investment With Allowance | 11,876 | 4,087 |
Total Recorded Investment | 14,467 | 9,581 |
Related Allowance | 4,901 | 1,781 |
Consumer | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 3,701 | 4,095 |
Recorded investment With No Allowance | 3,194 | 3,046 |
Recorded investment With Allowance | 507 | 1,049 |
Total Recorded Investment | 3,701 | 4,095 |
Related Allowance | 401 | 55 |
Consumer | Residential and Home Equity | ||
Financing Receivable Impaired [Line Items] | ||
Unpaid Principal Balance | 3,701 | 4,095 |
Recorded investment With No Allowance | 3,194 | 3,046 |
Recorded investment With Allowance | 507 | 1,049 |
Total Recorded Investment | 3,701 | 4,095 |
Related Allowance | $ 401 | $ 55 |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Summary of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | $ 34,138 | $ 19,984 | $ 18,461 |
Interest Income Recognition | 1,998 | 982 | 646 |
Commercial Real Estate | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 18,184 | 9,526 | 9,596 |
Interest Income Recognition | 1,021 | 438 | 324 |
Commercial Real Estate | Real Estate Term | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 14,516 | 8,027 | 6,489 |
Interest Income Recognition | 747 | 332 | 187 |
Commercial Real Estate | Construction and Land Development | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 3,668 | 1,499 | 3,107 |
Interest Income Recognition | 274 | 106 | 137 |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 12,496 | 8,049 | 7,552 |
Interest Income Recognition | 780 | 426 | 276 |
Consumer | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 3,458 | 2,409 | 1,313 |
Interest Income Recognition | 197 | 118 | 46 |
Consumer | Residential and Home Equity | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 3,458 | 2,409 | 1,313 |
Interest Income Recognition | $ 197 | $ 118 | $ 46 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Summary of Changes in Accretable Yield for Purchased Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 5,884 | $ 8,536 |
Accretion to interest income | (1,818) | (2,866) |
Reclassification from non-accretable difference | 181 | 214 |
Balance, end of period | $ 4,247 | $ 5,884 |
Loans and Allowance for Loan_15
Loans and Allowance for Loan Losses - Summary of Changes in Non-accretable Yield for Purchased Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities Non-accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 2,942 | $ 3,739 |
Loans charged off | (583) | |
Reclassification to accretable | (181) | (214) |
Balance, end of period | $ 2,761 | $ 2,942 |
Loans and Allowance for Loan_16
Loans and Allowance for Loan Losses - Summary of Balance of Purchased Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans carrying balance | $ 196,311 | $ 267,066 |
Total loans unpaid principal balance | 203,335 | 275,892 |
Performing Purchased Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans carrying balance | 192,831 | 262,331 |
Total loans unpaid principal balance | 197,094 | 268,215 |
PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total loans carrying balance | 3,480 | 4,735 |
Total loans unpaid principal balance | 6,241 | 7,677 |
Commercial Real Estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 156,430 | 203,921 |
Commercial Real Estate | Real Estate Term | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 156,004 | 195,836 |
Commercial Real Estate | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 426 | 8,085 |
Commercial Real Estate | Performing Purchased Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 156,005 | 202,705 |
Commercial Real Estate | Performing Purchased Loans | Real Estate Term | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 155,644 | 194,904 |
Commercial Real Estate | Performing Purchased Loans | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 361 | 7,801 |
Commercial Real Estate | PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 425 | 1,216 |
Commercial Real Estate | PCI Loans | Real Estate Term | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 360 | 932 |
Commercial Real Estate | PCI Loans | Construction and Land Development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total commercial real estate loans | 65 | 284 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Commercial and industrial loans | 17,342 | 38,011 |
Commercial and Industrial | Performing Purchased Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Commercial and industrial loans | 14,287 | 34,492 |
Commercial and Industrial | PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Commercial and industrial loans | 3,055 | 3,519 |
Consumer | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | 22,539 | 25,134 |
Consumer | Residential and Home Equity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | 21,963 | 24,194 |
Consumer | Consumer and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | 576 | 940 |
Consumer | Performing Purchased Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | 22,539 | 25,134 |
Consumer | Performing Purchased Loans | Residential and Home Equity | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | 21,963 | 24,194 |
Consumer | Performing Purchased Loans | Consumer and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total consumer loans | $ 576 | $ 940 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 73,117 | $ 69,155 |
Accumulated depreciation and amortization | (33,643) | (32,623) |
Premises and equipment, net | 39,474 | 36,532 |
Land and buildings | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 45,426 | 45,060 |
Equipment, Furniture, and Software | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 27,691 | $ 24,095 |
Premises and Equipment - Additi
Premises and Equipment - Additional information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Total rent expense | $ 874,000 | $ 909,000 | $ 539,000 |
Depreciation and amortization expense | $ 3,396,000 | $ 3,281,000 | $ 2,612,000 |
Premises and Equipment - Sche_2
Premises and Equipment - Schedule of Future Minimum Rental Commitments Required under Operating Leases That have Initial or Remaining Non-cancelable Lease Terms in Excess of One Year (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Property Plant And Equipment [Abstract] | |
2020 | $ 800 |
2021 | 704 |
2022 | 581 |
2023 | 256 |
Total future minimum rental commitments required under operating leases | $ 2,341 |
Deposits - Summary of Deposit A
Deposits - Summary of Deposit Account Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Non-interest bearing deposits | $ 719,410 | $ 642,594 |
Interest bearing deposits: | ||
Interest bearing demand and savings | 846,199 | 795,456 |
Money market accounts | 324,565 | 257,308 |
Certificates of deposit less than or equal to $250,000 | 131,882 | 143,387 |
Certificates of deposit greater than $250,000 | 34,311 | 38,310 |
Total interest bearing deposits | 1,336,957 | 1,234,461 |
Total deposits | $ 2,056,367 | $ 1,877,055 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities for Certificate of Deposit (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Deposits [Abstract] | |
2020 | $ 93,543 |
2021 | 26,719 |
2022 | 13,979 |
2023 | 17,337 |
2024 and beyond | 14,615 |
Time Deposit | $ 166,193 |
Deposits - Additional informati
Deposits - Additional information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Deposits held by affiliates | $ 4.5 | $ 8.8 |
Short-term Borrowings - Additio
Short-term Borrowings - Additional information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short Term Debt [Line Items] | ||
Investment securities | $ 9,400,000 | $ 2,200,000 |
Maturity of investment securities | 144 months | |
Investment securities pledged for securities sold under agreements to repurchase | $ 0 | 0 |
FHLB of Des Moines | ||
Short Term Debt [Line Items] | ||
Debt instrument, interest rate during period | 1.73% | |
Credit line committed amount | $ 676,900,000 | |
Credit line, collateral amount | $ 929,300,000 | |
Federal Funds Purchased | ||
Short Term Debt [Line Items] | ||
Debt instrument, interest rate during period | 1.80% | |
Federal Funds Purchased | Unaffiliated Banks | ||
Short Term Debt [Line Items] | ||
Federal funds lines of credit arrangements | $ 25,000,000 | |
Federal Reserve Bank | ||
Short Term Debt [Line Items] | ||
Federal funds lines of credit arrangements | 26,500,000 | |
Investment securities | $ 26,800,000 | |
Interest rate description | The borrowing rate is the current discount rate plus 25 basis points. | |
Interest rate margin | 0.25% | |
Short-term borrowings advances | $ 0 | $ 0 |
Short-term Borrowings - Schedul
Short-term Borrowings - Schedule of Information Concerning Short-term Borrowings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Security Repurchase Agreements | |||
Short Term Debt [Line Items] | |||
Average daily balance | $ 2,568,000 | ||
Weighted average rate | 0.00% | 0.00% | 0.14% |
Highest month-end balance | $ 3,789,000 | ||
Weighted average rate on outstanding at year-end | 0.00% | 0.00% | 0.00% |
Other Short-term Borrowings | |||
Short Term Debt [Line Items] | |||
Average daily balance | $ 2,419,000 | $ 71,880,000 | $ 4,894,000 |
Weighted average rate | 2.63% | 1.98% | 1.28% |
Highest month-end balance | $ 145,000,000 | $ 40,000,000 | |
Year-end balance | $ 40,000,000 | ||
Weighted average rate on outstanding at year-end | 0.00% | 0.00% | 1.63% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income Tax Expense (Benefit) (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 | $ 10,685 | $ 11,167 | $ 10,778 | ||||||||
State | 2,852 | 2,904 | 1,709 | ||||||||
Current | 13,537 | 14,071 | 12,487 | ||||||||
Deferred: | |||||||||||
Federal | (26) | (1,662) | 3,468 | ||||||||
State | (8) | (355) | 522 | ||||||||
Deferred | (34) | (2,017) | 3,990 | ||||||||
Income tax expense | $ 3,395 | $ 3,355 | $ 3,480 | $ 3,273 | $ 2,927 | $ 3,288 | $ 3,279 | $ 2,560 | $ 13,503 | $ 12,054 | $ 16,477 |
Income Taxes - Summary of Combi
Income Taxes - Summary of Combined Federal and State Income Tax Expense Differs from Federal Statutory Corporate Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 35.00% |
Tax rate change | 0.00% | (0.50%) | 13.00% |
State taxes, net of federal income tax benefit | 3.80% | 3.70% | 2.90% |
Tax-exempt interest and income | (0.80%) | (0.80%) | (2.10%) |
Equity awards expense | (0.30%) | (0.40%) | (2.80%) |
Other, net | (0.40%) | (0.10%) | (0.60%) |
Effective tax rate | 23.30% | 22.90% | 45.40% |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Net Deferred Income Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Allowance for loan losses | $ 8,412 | $ 7,435 |
Deferred loan fees and costs | 1,635 | 1,920 |
Fair value adjustments on certificates of deposit | 100 | 135 |
Deferred compensation | 419 | 429 |
Unrealized loss on securities | 1,371 | |
State income taxes | 599 | 608 |
Other | 612 | 902 |
Deferred tax assets net | 11,777 | 12,800 |
Deferred income tax liabilities: | ||
FHLB dividends | 166 | 166 |
Mortgage servicing rights | 172 | 182 |
Unrealized gain on securities | 461 | |
Basis difference in premises, equipment and other assets | 1,262 | 938 |
Deferred tax liabilities net | 2,061 | 1,286 |
Net deferred income tax assets | $ 9,716 | $ 11,514 |
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] | |||
Valuation allowance | $ 0 | $ 0 | |
Employee service share-based compensation, tax benefit from compensation expense | 200,000 | 200,000 | $ 1,200,000 |
Deferred tax assets, operating loss carryforwards | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 632,577 | $ 577,612 |
Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | 23,860 | 22,979 |
Unused Credit Card Lines, All Unsecured | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 26,121 | $ 24,885 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Contractual Amounts of Off-balance Sheet Financial Instruments (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unsecured Commitments Included in Commitments to Extend Credit | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 32,995 | $ 16,304 |
Unsecured Commitments Included in Stand-by Letters of Credit and Bond Commitments | ||
Commitments And Contingencies [Line Items] | ||
Off-balance sheet financial instrument, contractual amount | $ 555 | $ 730 |
Regulatory Capital Matters - Su
Regulatory Capital Matters - Summary of Actual and Required Capital Amounts and Ratios (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 Capital to Risk-Weighted Assets, Actual Amount | $ 302,291,000 | $ 264,790,000 |
Tier 1 Capital to Risk-Weighted Assets, Actual Amount | 302,291,000 | 264,790,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Amount | 324,415,000 | 286,747,000 |
Tier 1 Leverage, Actual Amount | 302,291,000 | 264,790,000 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 79,193,000 | 78,857,000 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 105,590,000 | 105,142,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 140,787,000 | 140,190,000 |
Tier 1 Leverage, Minimum Capital Requirement Amount | 95,431,000 | 86,351,000 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 114,390,000 | 113,904,000 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 140,787,000 | 140,190,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | $ 175,984,000 | $ 175,237,000 |
CET1 Capital to Risk-Weighted Assets, Actual Ratio | 17.18% | 15.11% |
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio | 17.18% | 15.11% |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Ratio | 18.43% | 16.36% |
Tier 1 Leverage, Actual Ratio | 12.67% | 12.27% |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 8.00% | 8.00% |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 10.00% | 10.00% |
Altabank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
CET1 Capital to Risk-Weighted Assets, Actual Amount | $ 297,108,000 | $ 261,703,000 |
Tier 1 Capital to Risk-Weighted Assets, Actual Amount | 297,108,000 | 261,703,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Amount | 319,233,000 | 283,654,000 |
Tier 1 Leverage, Actual Amount | 297,108,000 | 261,703,000 |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 79,191,000 | 78,833,000 |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 105,588,000 | 105,111,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Amount | 140,784,000 | 140,148,000 |
Tier 1 Leverage, Minimum Capital Requirement Amount | 95,429,000 | 86,346,000 |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 114,387,000 | 113,870,000 |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 140,784,000 | 140,148,000 |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Amount | 175,981,000 | 175,185,000 |
Tier 1 Leverage, Well Capitalized Requirement Amount | $ 119,286,000 | $ 107,932,000 |
CET1 Capital to Risk-Weighted Assets, Actual Ratio | 16.88% | 14.94% |
Tier 1 Capital to Risk-Weighted Assets, Actual Ratio | 16.88% | 14.94% |
Total Risk-Based Capital to Risk-Weighted Assets, Actual Ratio | 18.14% | 16.19% |
Tier 1 Leverage, Actual Ratio | 12.45% | 12.12% |
CET1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Total Risk-Based Capital to Risk-Weighted Assets, Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 Leverage, Minimum Capital Requirement Ratio | 4.00% | 4.00% |
CET1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 8.00% | 8.00% |
Total Risk-Based Capital to Risk-Weighted Assets, Well Capitalized Requirement Ratio | 10.00% | 10.00% |
Tier 1 Leverage, Well Capitalized Requirement Ratio | 5.00% | 5.00% |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking And Thrift [Abstract] | ||
Minimum reserve balances on average deposits | $ 9.4 | $ 2.2 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Dividends Per Share Declared and Paid (Details) - $ / shares | 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 | |
Stockholders Equity Note [Abstract] | |||||||||||
Dividends per share declared | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.09 | $ 0.49 | $ 0.41 | $ 0.34 |
Dividends per share paid | $ 0.13 | $ 0.13 | $ 0.12 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.10 | $ 0.09 | $ 0.49 | $ 0.41 |
Incentive Share-Based Plan an_3
Incentive Share-Based Plan and Other Employee Benefits - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Fair value of option granted per share | $ 7.80 | $ 3.58 | $ 3.82 | |
Total intrinsic value of options exercised | $ 3,500,000 | $ 5,200,000 | $ 4,200,000 | |
Unrecognized compensation expense | $ 1,007,000 | $ 956,000 | $ 711,000 | |
Unrecognized compensation expense, weighted-average period | 2 years 5 months 12 days | 3 years 1 month 6 days | 1 year 2 months 12 days | |
Share-based compensation expense related to recognized income tax benefit | $ 200,000 | $ 200,000 | $ 1,200,000 | |
Defined Contribution Plan, Plan Name | 401(k) | |||
Employer matching contributions to savings plan | $ 1,054,000 | 964,000 | 883,000 | |
Profit sharing contribution | $ 1,148,000 | 1,000,000 | 725,000 | |
Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Reduction in shares issued upon exercises | 22,903 | |||
Share-based compensation expense | $ 1,011,000 | $ 891,000 | $ 510,000 | |
Risk free interest rate, minimum | 0.10% | 0.10% | 0.10% | |
Risk free interest rate, maximum | 1.60% | 1.60% | 1.60% | |
Volatility index, minimum | 13.30% | 13.30% | 13.30% | |
Volatility index, maximum | 29.90% | 29.90% | 29.90% | |
Restricted Stock Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total intrinsic value | $ 648,000 | $ 911,000 | $ 423,000 | |
Restricted Stock Units and Non-Qualified Stock Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation expense | 1,010,000 | 862,000 | 342,000 | |
Share-based compensation expense related to recognized income tax benefit | $ 236,000 | $ 216,000 | $ 131,000 | |
Share-Based Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum number of shares available for issuance under the plan | 800,000 | |||
Maximum | Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected annual dividend yield | 2.30% | 2.30% | 2.30% | |
Expected term | 6 years 6 months | 6 years 6 months | 6 years 6 months | |
Maximum | Share-Based Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based awards granted term | 10 years | |||
Minimum | Options | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected annual dividend yield | 0.70% | 0.70% | 0.70% | |
Expected term | 8 months 12 days | 8 months 12 days | 8 months 12 days |
Incentive Share-Based Plan an_4
Incentive Share-Based Plan and Other Employee Benefits - Summary of Share-Based Option Transaction (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options Granted for Common Shares | |||
Outstanding at beginning of period | 350,643 | 544,713 | 762,716 |
Granted | 545 | 33,382 | 17,692 |
Exercised | (139,598) | (218,928) | (221,337) |
Forfeited | (8,524) | (14,358) | |
Outstanding at end of period | 211,590 | 350,643 | 544,713 |
Exercisable at end of period | 190,514 | 292,100 | |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $ 13.38 | $ 10.14 | $ 7.42 |
Granted | 27.53 | 32.31 | 29.59 |
Exercised | 9.05 | 8.45 | 7.76 |
Forfeited | 7.61 | 15.41 | |
Outstanding at end of period | 16.27 | 13.38 | $ 10.14 |
Exercisable at end of period | $ 14.59 | $ 11.27 | |
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 2 years 5 months 12 days | ||
Exercisable at end of period | 2 years 6 months 14 days | 3 years 3 months | |
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 3,603 | ||
Exercisable at end of period | $ 2,965 | $ 5,562 |
Incentive Share-Based Plan an_5
Incentive Share-Based Plan and Other Employee Benefits - Summary of Restricted Stock Unit (Details) - Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Non-vested at beginning of period | 42,444 | 39,576 | 27,895 |
Granted | 41,709 | 32,853 | 27,811 |
Vested | (24,980) | (28,420) | (15,838) |
Forfeited | (5,124) | (1,565) | (292) |
Non-vested at end of period | 54,049 | 42,444 | 39,576 |
Non-vested at beginning of period, Weighted Average Grant Date Fair Value | $ 30 | $ 24.02 | $ 12.97 |
Granted, Weighted Average Grant Date Fair Value | 29.87 | 31.09 | 28.92 |
Vested, Weighted Average Grant Date Fair Value | 25.96 | 32.06 | 13.37 |
Forfeited, Weighted Average Grant Date Fair Value | 30.25 | 30.66 | 12.10 |
Non-vested at end of period, Weighted Average Grant Date Fair Value | $ 29.98 | $ 30 | $ 24.02 |
Fair Value - Summary of Estimat
Fair Value - Summary of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Investment securities available for sale | $ 405,995 | $ 280,964 |
Investment securities held to maturity | 64,766 | |
Carrying Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 211,981 | 48,547 |
Carrying Value | Level 2 | ||
Financial Assets: | ||
Investment securities available for sale | 395,410 | 280,964 |
Investment securities held to maturity | 50,905 | |
Non-marketable securities | 2,623 | 2,551 |
Loans held for sale | 18,669 | 10,267 |
Financial Liabilities: | ||
Total deposits | 2,056,367 | 1,877,055 |
Carrying Value | Level 3 | ||
Financial Assets: | ||
Investment securities available for sale | 10,585 | |
Investment securities held to maturity | 14,557 | |
Loans held for investment | 1,649,492 | 1,653,657 |
Estimated Fair Value | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 211,981 | 48,547 |
Estimated Fair Value | Level 2 | ||
Financial Assets: | ||
Investment securities available for sale | 395,410 | 280,964 |
Investment securities held to maturity | 50,364 | |
Non-marketable securities | 2,623 | 2,551 |
Loans held for sale | 18,669 | 10,267 |
Financial Liabilities: | ||
Total deposits | 1,851,954 | 1,675,992 |
Estimated Fair Value | Level 3 | ||
Financial Assets: | ||
Investment securities available for sale | 10,585 | |
Investment securities held to maturity | 14,402 | |
Loans held for investment | $ 1,639,480 | $ 1,637,617 |
Fair Value - Summary of Asset M
Fair Value - Summary of Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $ 405,995 | $ 280,964 |
Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 405,995 | 280,964 |
Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 17,497 | 7,304 |
Level 2 | Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 395,410 | 280,964 |
Level 3 | Fair Valued on a Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,585 | |
Level 3 | Fair Valued on a Non-Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 17,497 | $ 7,304 |
Contingencies and Concentrati_2
Contingencies and Concentrations Of Credit Risk - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | |
Regulatory lending percentage of bank's total capital | 15.00% |
Lending limit amount | $ 53.8 |
Credit Concentration Risk | Real Estate Lending Arrangements | LTV Less than 80 Percent | |
Fair Value Concentration Of Risk Financial Statement Captions [Line Items] | |
Loan-to-value ratio | 80.00% |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 211,981 | $ 48,547 | ||
Other assets | 4,800 | 11,000 | ||
Total assets | 2,406,334 | 2,184,294 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Other liabilities | 17,059 | 16,594 | ||
Shareholders' equity | 332,362 | 290,162 | $ 257,418 | $ 228,517 |
Total liabilities and shareholders’ equity | 2,406,334 | 2,184,294 | ||
People’s Utah Bancorp, Inc. | ||||
ASSETS | ||||
Cash and cash equivalents | 4,895 | 3,286 | ||
Investment in subsidiaries | 327,178 | 287,075 | ||
Other assets | 370 | 520 | ||
Total assets | 332,443 | 290,881 | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||
Due to subsidiaries, net | 61 | 337 | ||
Other liabilities | 20 | 382 | ||
Shareholders' equity | 332,362 | 290,162 | ||
Total liabilities and shareholders’ equity | $ 332,443 | $ 290,881 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - 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 | |
Condensed Income Statements Captions [Line Items] | |||||||||||
Interest and dividends | $ 10,519 | $ 6,854 | $ 7,015 | ||||||||
Total interest income | 119,049 | 115,352 | 83,980 | ||||||||
Salaries and employee benefits | 38,502 | 39,902 | 34,392 | ||||||||
Other expenses | 9,757 | 10,030 | 7,205 | ||||||||
Total non-interest expense | $ 14,589 | $ 16,068 | $ 14,699 | $ 14,916 | $ 14,845 | $ 15,280 | $ 15,823 | $ 16,048 | 60,272 | 61,996 | 55,959 |
Income before income tax expense | 15,090 | 14,490 | 14,469 | 13,778 | 13,605 | 13,771 | 13,746 | 11,564 | 57,827 | 52,686 | 36,323 |
Income tax benefit | (3,395) | (3,355) | (3,480) | (3,273) | (2,927) | (3,288) | (3,279) | (2,560) | (13,503) | (12,054) | (16,477) |
Net income | $ 11,695 | $ 11,135 | $ 10,989 | $ 10,505 | $ 10,678 | $ 10,483 | $ 10,467 | $ 9,004 | 44,324 | 40,632 | 19,846 |
People’s Utah Bancorp, Inc. | |||||||||||
Condensed Income Statements Captions [Line Items] | |||||||||||
Dividend and other income from subsidiaries | 11,400 | 7,900 | 5,300 | ||||||||
Interest and dividends | 13 | 6 | 310 | ||||||||
Total interest income | 11,413 | 7,906 | 5,610 | ||||||||
Salaries and employee benefits | 121 | 283 | 1,455 | ||||||||
Other expenses | 775 | 666 | 420 | ||||||||
Total non-interest expense | 896 | 949 | 1,875 | ||||||||
Income before income tax expense | 10,517 | 6,957 | 3,735 | ||||||||
Income tax benefit | 208 | 266 | 575 | ||||||||
Income (loss) from continuing operations | 10,725 | 7,223 | 4,310 | ||||||||
Equity in undistributed net income of subsidiaries | 33,599 | 33,409 | 15,536 | ||||||||
Net income | $ 44,324 | $ 40,632 | $ 19,846 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 44,324 | $ 40,632 | $ 19,846 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of securities discounts and premiums | 2,363 | 2,628 | 2,822 |
Net cash provided by operating activities | 54,760 | 58,330 | 37,414 |
Cash flows from investing activities: | |||
Maturities/sales of available for sale securities | 96,076 | 43,810 | 147,351 |
Net cash used in investing activities | (62,009) | (76,463) | (191,904) |
Cash flows from financing activities: | |||
Exercise of stock options | 596 | 887 | 1,395 |
Dividends paid | (9,225) | (7,657) | (6,106) |
Net cash provided by financing activities | 170,683 | 15,653 | 137,579 |
Net change in cash and cash equivalents | 163,434 | (2,480) | (16,911) |
Cash and cash equivalents, beginning of year | 48,547 | 51,027 | 67,938 |
Cash and cash equivalents, end of year | 211,981 | 48,547 | 51,027 |
People’s Utah Bancorp, Inc. | |||
Cash flows from operating activities: | |||
Net income | 44,324 | 40,632 | 19,846 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net income of the Bank | (33,599) | (33,409) | (15,536) |
Change in other assets and liabilities | (487) | 214 | (1,204) |
Net cash provided by operating activities | 10,238 | 7,437 | 3,106 |
Cash flows from investing activities: | |||
Maturities/sales of available for sale securities | 34,278 | ||
Investments in banking subsidiary | (46,977) | ||
Net cash used in investing activities | (12,699) | ||
Cash flows from financing activities: | |||
Issuance of common shares | 13,977 | ||
Exercise of stock options | 596 | 887 | 1,395 |
Dividends paid | (9,225) | (7,657) | (6,106) |
Net cash provided by financing activities | (8,629) | (6,770) | 9,266 |
Net change in cash and cash equivalents | 1,609 | 667 | (327) |
Cash and cash equivalents, beginning of year | 3,286 | 2,619 | 2,946 |
Cash and cash equivalents, end of year | $ 4,895 | $ 3,286 | $ 2,619 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Details) | Nov. 13, 2017USD ($)Branchshares | Oct. 06, 2017USD ($)Branch | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)Business | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||
Number of branch location acquired | Business | 2 | ||||
Goodwill | $ 25,673,000 | $ 25,673,000 | |||
Acquisition related measurement period adjustments to goodwill | $ 335,000 | ||||
Banner Bank | |||||
Business Acquisition [Line Items] | |||||
Business acquisition date | Oct. 6, 2017 | ||||
Number of branch location acquired | Branch | 7 | ||||
Loans acquired | $ 257,000,000 | ||||
Deposits acquired | 160,292,000 | ||||
Deposit premium paid | $ 13,762,000 | ||||
Number of acquired branches consolidated into existing branches | Branch | 2 | ||||
Goodwill | $ 14,898,000 | ||||
Core deposit intangible | 2,604,000 | ||||
Expenses related to acquisition | $ 1,700,000 | ||||
Cash paid | 100,283,000 | ||||
Banner Bank | Other Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | $ 2,600,000 | ||||
Amortization period for core deposits | 10 years | ||||
Town & Country Bank, Inc. | |||||
Business Acquisition [Line Items] | |||||
Business acquisition date | Nov. 13, 2017 | ||||
Loans acquired | $ 117,000,000 | ||||
Deposits acquired | $ 123,777,000 | ||||
Number of acquired branches consolidated into existing branches | Branch | 1 | ||||
Goodwill | $ 11,110,000 | ||||
Core deposit intangible | $ 845,000 | ||||
Expenses related to acquisition | $ 3,100,000 | ||||
Common shares issued | shares | 466,546 | ||||
Cash paid | $ 11,603,000 | ||||
Cash held in escrow | 2,000,000 | ||||
Town & Country Bank, Inc. | Certificates of Deposit | |||||
Business Acquisition [Line Items] | |||||
Deposit premium paid | 702,000 | ||||
Town & Country Bank, Inc. | Other Intangible Assets | |||||
Business Acquisition [Line Items] | |||||
Core deposit intangible | $ 845,000 | ||||
Amortization period for core deposits | 10 years |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed and Recognized (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 13, 2017 | Oct. 06, 2017 | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities | ||||
Goodwill | $ 25,673 | $ 25,673 | ||
Banner Bank | ||||
Purchase Price | ||||
Cash | $ 100,283 | |||
Premium paid on average deposits | 13,762 | |||
Total consideration | 114,045 | |||
Assets | ||||
Loans, net of discounts | 251,782 | |||
Premises & equipment | 3,467 | |||
Core deposit intangible | 2,604 | |||
Other assets | 1,761 | |||
Total assets | 259,614 | |||
Liabilities | ||||
Deposits, net of premiums | 160,292 | |||
Other liabilities | 175 | |||
Total liabilities assumed | 160,467 | |||
Total net assets from merger | 99,147 | |||
Goodwill | $ 14,898 | |||
Town & Country Bank, Inc. | ||||
Purchase Price | ||||
PUB common shares issued for Town & Country shares | 466,546 | |||
PUB share price at closing | $ 29.96 | |||
Consideration from common stock conversion (0.2916 ratio) | $ 13,977 | |||
Cash | 11,603 | |||
Total consideration | 25,580 | |||
Assets | ||||
Cash and cash equivalents | 13,401 | |||
Investment securities | 9,585 | |||
Loans, net of discounts | 110,334 | |||
Premises & equipment | 145 | |||
Core deposit intangible | 845 | |||
Bank owned life insurance | 3,332 | |||
Deferred income tax asset | 2,571 | |||
Other assets | 4,161 | |||
Total assets | 144,374 | |||
Liabilities | ||||
Deposits, net of premiums | 123,777 | |||
Other liabilities | 6,127 | |||
Total liabilities assumed | 129,904 | |||
Total net assets from merger | 14,470 | |||
Goodwill | $ 11,110 |
Acquisitions - Summary of Con_2
Acquisitions - Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed and Recognized (Parenthetical) (Details) | Nov. 13, 2017 |
Town & Country Bank, Inc. | |
Business Acquisition [Line Items] | |
Consideration from common stock conversion percentage | 29.16% |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data - Summary of Unaudited Quarterly Financial Data (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] | |||||||||||
Net interest income | $ 27,100 | $ 28,191 | $ 27,720 | $ 26,907 | $ 28,074 | $ 27,182 | $ 26,978 | $ 25,944 | $ 109,918 | $ 108,178 | $ 80,638 |
Provision for loan losses | 1,200 | 2,100 | 2,150 | 1,550 | 3,175 | 1,925 | 1,475 | 2,050 | 7,000 | 8,625 | 2,750 |
Non-interest income | 3,779 | 4,467 | 3,598 | 3,337 | 3,551 | 3,794 | 4,066 | 3,718 | 15,181 | 15,129 | 14,394 |
Non-interest expense | 14,589 | 16,068 | 14,699 | 14,916 | 14,845 | 15,280 | 15,823 | 16,048 | 60,272 | 61,996 | 55,959 |
Income before income tax expense | 15,090 | 14,490 | 14,469 | 13,778 | 13,605 | 13,771 | 13,746 | 11,564 | 57,827 | 52,686 | 36,323 |
Income tax expense | 3,395 | 3,355 | 3,480 | 3,273 | 2,927 | 3,288 | 3,279 | 2,560 | 13,503 | 12,054 | 16,477 |
Net income | $ 11,695 | $ 11,135 | $ 10,989 | $ 10,505 | $ 10,678 | $ 10,483 | $ 10,467 | $ 9,004 | $ 44,324 | $ 40,632 | $ 19,846 |
Earnings per common share: | |||||||||||
Basic | $ 0.62 | $ 0.59 | $ 0.58 | $ 0.56 | $ 0.57 | $ 0.56 | $ 0.56 | $ 0.48 | $ 2.35 | $ 2.18 | $ 1.10 |
Diluted | $ 0.61 | $ 0.59 | $ 0.58 | $ 0.55 | $ 0.56 | $ 0.55 | $ 0.55 | $ 0.48 | $ 2.33 | $ 2.14 | $ 1.08 |