Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 03, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Allegiance Bancshares, Inc. | |
Entity Central Index Key | 0001642081 | |
Trading Symbol | ABTX | |
Security Exchange Name | NASDAQ | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Title of 12(b) Security | Common Stock, par value, $1.00 per share | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37585 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 26-3564100 | |
Entity Address, Address Line One | 8847 West Sam Houston Parkway, N. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77040 | |
City Area Code | 281 | |
Local Phone Number | 894-3200 | |
Entity Common Stock, Shares Outstanding (in shares) | 20,447,510 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 327,416 | $ 213,347 |
Interest-bearing deposits at other financial institutions | 19,732 | 132,901 |
Total cash and cash equivalents | 347,148 | 346,248 |
Available for sale securities, at fair value | 663,301 | 372,545 |
Loans held for investment | 4,592,362 | 3,915,310 |
Less: allowance for loan losses | (48,698) | (29,438) |
Loans, net | 4,543,664 | 3,885,872 |
Accrued interest receivable | 36,996 | 15,468 |
Premises and equipment, net | 69,887 | 66,790 |
Other real estate owned | 8,876 | 8,337 |
Federal Home Loan Bank stock | 9,716 | 6,242 |
Bank owned life insurance | 27,542 | 27,104 |
Goodwill | 223,642 | 223,642 |
Core deposit intangibles, net | 18,907 | 21,876 |
Other assets | 18,072 | 18,530 |
TOTAL ASSETS | 5,967,751 | 4,992,654 |
Deposits: | ||
Noninterest-bearing | 1,772,700 | 1,252,232 |
Interest-bearing | ||
Demand | 409,137 | 367,278 |
Money market and savings | 1,483,370 | 1,258,008 |
Certificates and other time | 1,252,159 | 1,190,583 |
Total interest-bearing deposits | 3,144,666 | 2,815,869 |
Total deposits | 4,917,366 | 4,068,101 |
Accrued interest payable | 3,082 | 4,326 |
Borrowed funds | 155,512 | 75,503 |
Subordinated debt | 108,191 | 107,799 |
Other liabilities | 30,547 | 27,060 |
Total liabilities | 5,214,698 | 4,282,789 |
COMMITMENTS AND CONTINGENCIES (See Note 14) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1 par value; 1,000,000 shares authorized; no shares issued or outstanding | ||
Common stock, $1 par value; 80,000,000 shares authorized; 20,444,630 shares issued and outstanding at September 30, 2020 and 20,523,816 shares issued and outstanding at December 31, 2019 | 20,445 | 20,524 |
Capital surplus | 516,151 | 521,066 |
Retained earnings | 186,866 | 163,375 |
Accumulated other comprehensive income | 29,591 | 4,900 |
Total shareholders’ equity | 753,053 | 709,865 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 5,967,751 | $ 4,992,654 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Shares issued (in shares) | 0 | 0 |
Shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 20,444,630 | 20,523,816 |
Common stock, shares outstanding (in shares) | 20,444,630 | 20,523,816 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 56,418 | $ 55,790 | $ 167,463 | $ 165,995 |
Securities: | ||||
Taxable | 2,095 | 2,090 | 6,024 | 4,909 |
Tax-exempt | 2,280 | 483 | 4,995 | 2,465 |
Deposits in other financial institutions | 18 | 302 | 233 | 1,391 |
Total interest income | 60,811 | 58,665 | 178,715 | 174,760 |
INTEREST EXPENSE: | ||||
Demand, money market and savings deposits | 1,657 | 4,975 | 7,750 | 13,216 |
Certificates and other time deposits | 5,239 | 6,909 | 17,168 | 20,173 |
Borrowed funds | 558 | 1,183 | 1,626 | 4,128 |
Subordinated debt | 1,448 | 761 | 4,390 | 2,232 |
Total interest expense | 8,902 | 13,828 | 30,934 | 39,749 |
NET INTEREST INCOME | 51,909 | 44,837 | 147,781 | 135,011 |
Provision for loan losses | 1,347 | 2,597 | 23,006 | 5,006 |
Net interest income after provision for loan losses | 50,562 | 42,240 | 124,775 | 130,005 |
NONINTEREST INCOME: | ||||
Gain on sale of securities | 287 | 846 | ||
Gain (loss) on sale of other real estate and other repossessed assets | 117 | (258) | 71 | |
Bank owned life insurance income | 144 | 153 | 438 | 467 |
Rebate from correspondent bank | 98 | 900 | 680 | 2,680 |
Other | 1,091 | 1,289 | 3,561 | 4,421 |
Total noninterest income | 1,850 | 2,889 | 6,137 | 10,023 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 20,034 | 20,221 | 59,149 | 59,320 |
Net occupancy and equipment | 2,057 | 1,973 | 5,890 | 6,139 |
Depreciation | 946 | 822 | 2,697 | 2,331 |
Data processing and software amortization | 2,125 | 2,058 | 5,885 | 5,390 |
Professional fees | 756 | 667 | 2,129 | 1,793 |
Regulatory assessments and FDIC insurance | 875 | (41) | 2,116 | 1,489 |
Core deposit intangibles amortization | 989 | 1,178 | 2,969 | 3,534 |
Communications | 355 | 455 | 1,162 | 1,353 |
Advertising | 327 | 449 | 1,218 | 1,770 |
Other real estate expense | 2,017 | 137 | 4,780 | 450 |
Acquisition and merger-related expenses | 1,326 | |||
Other | 2,084 | 2,090 | 6,750 | 6,309 |
Total noninterest expense | 32,565 | 30,009 | 94,745 | 91,204 |
INCOME BEFORE INCOME TAXES | 19,847 | 15,120 | 36,167 | 48,824 |
Provision for income taxes | 3,677 | 3,073 | 6,574 | 9,851 |
NET INCOME | $ 16,170 | $ 12,047 | $ 29,593 | $ 38,973 |
EARNINGS PER SHARE: | ||||
Basic | $ 0.79 | $ 0.57 | $ 1.45 | $ 1.83 |
Diluted | 0.79 | $ 0.57 | 1.44 | $ 1.81 |
DIVIDENDS PER SHARE | $ 0.10 | $ 0.30 | ||
Deposit Account, Nonsufficient Funds Fee | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 75 | $ 168 | $ 304 | $ 469 |
Deposit Account, Service Charge Fee | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 325 | $ 379 | $ 1,125 | $ 1,069 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 16,170 | $ 12,047 | $ 29,593 | $ 38,973 |
Unrealized gain on securities: | ||||
Change in unrealized holding gain on available for sale securities during the period, net of tax | 1,583 | 2,261 | 26,099 | 10,050 |
Reclassification of gain realized through the sale of securities, net of tax | (227) | (668) | ||
Change in fair value of cash flow hedge, net of tax | 64 | (1,181) | ||
Total other comprehensive income, net of tax | 1,647 | 2,261 | 24,691 | 9,382 |
Comprehensive income | $ 17,817 | $ 14,308 | $ 54,284 | $ 48,355 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2018 | $ 702,984 | $ 21,938 | $ 571,803 | $ 112,131 | $ (2,888) |
Balance (in shares) at Dec. 31, 2018 | 21,937,740 | ||||
Cumulative effect of change in accounting principle related to ASU 2017-08 (Accounting Standards Update 2017-08) at Dec. 31, 2018 | $ (1,715) | (1,715) | |||
Total shareholders' equity at beginning of period, as adjusted (See Note 1) at Dec. 31, 2018 | 701,269 | 21,938 | 571,803 | 110,416 | (2,888) |
Net income | 38,973 | 38,973 | |||
Other comprehensive income | 9,382 | 9,382 | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards | $ 1,562 | 160 | 1,402 | ||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 160,640 | ||||
Repurchase of common stock | $ (47,155) | (1,361) | (45,794) | ||
Repurchase of common stock (in shares) | (1,361,601) | ||||
Stock based compensation expense | $ 2,277 | 2,277 | |||
Balance at Sep. 30, 2019 | $ 706,308 | 20,737 | 529,688 | 149,389 | 6,494 |
Balance (in shares) at Sep. 30, 2019 | 20,736,779 | ||||
Balance at Jun. 30, 2019 | $ 704,701 | 21,147 | 541,979 | 137,342 | 4,233 |
Balance (in shares) at Jun. 30, 2019 | 21,147,179 | ||||
Net income | $ 12,047 | 12,047 | |||
Other comprehensive income | 2,261 | 2,261 | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards | $ 496 | 21 | 475 | ||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 20,590 | ||||
Repurchase of common stock | $ (13,986) | (431) | (13,555) | ||
Repurchase of common stock (in shares) | (430,990) | ||||
Stock based compensation expense | $ 789 | 789 | |||
Balance at Sep. 30, 2019 | $ 706,308 | 20,737 | 529,688 | 149,389 | 6,494 |
Balance (in shares) at Sep. 30, 2019 | 20,736,779 | ||||
Balance at Dec. 31, 2019 | $ 709,865 | 20,524 | 521,066 | 163,375 | 4,900 |
Balance (in shares) at Dec. 31, 2019 | 20,523,816 | ||||
Net income | $ 29,593 | 29,593 | |||
Other comprehensive income | 24,691 | 24,691 | |||
Cash dividends declared | (6,102) | (6,102) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards | $ 1,727 | 165 | 1,562 | ||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 165,148 | ||||
Repurchase of common stock | $ (9,302) | (244) | (9,058) | ||
Repurchase of common stock (in shares) | (244,334) | ||||
Stock based compensation expense | $ 2,581 | 2,581 | |||
Balance at Sep. 30, 2020 | $ 753,053 | 20,445 | 516,151 | 186,866 | 29,591 |
Balance (in shares) at Sep. 30, 2020 | 20,444,630 | ||||
Balance at Jun. 30, 2020 | $ 736,143 | 20,431 | 515,045 | 172,723 | 27,944 |
Balance (in shares) at Jun. 30, 2020 | 20,430,836 | ||||
Net income | $ 16,170 | 16,170 | |||
Other comprehensive income | 1,647 | 1,647 | |||
Cash dividends declared | (2,027) | (2,027) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards | $ 257 | 14 | 243 | ||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 13,794 | ||||
Stock based compensation expense | $ 863 | 863 | |||
Balance at Sep. 30, 2020 | $ 753,053 | $ 20,445 | $ 516,151 | $ 186,866 | $ 29,591 |
Balance (in shares) at Sep. 30, 2020 | 20,444,630 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Retained Earnings | ||
Per share amount of cash dividends declared | $ 0.10 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 29,593 | $ 38,973 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 5,666 | 5,865 |
Provision for loan losses | 23,006 | 5,006 |
Deferred income tax benefit | (5,123) | (784) |
Net amortization of premium on investments | 2,498 | 2,613 |
Excess tax benefit from stock based compensation | (65) | (105) |
Bank owned life insurance income | (438) | (467) |
Net accretion of discount on loans | (2,227) | (7,112) |
Net amortization of discount on subordinated debt | 84 | 83 |
Net accretion of discount on certificates of deposit | (295) | (287) |
Loss (gain) on sale or write-downs of other real estate and other repossessed assets | 4,323 | (71) |
Net gain on sale of securities | (287) | (846) |
Federal Home Loan Bank stock dividends | (170) | (332) |
Stock based compensation expense | 2,581 | 2,277 |
Net change in operating leases | 1,947 | 1,467 |
(Increase) decrease in accrued interest receivable and other assets | (21,070) | 1,340 |
(Decrease) increase in accrued interest payable and other liabilities | (2,397) | 7,143 |
Net cash provided by operating activities | 37,626 | 54,763 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of available for sale securities | 3,548,616 | 2,245,919 |
Proceeds from sales of available for sale securities | 30,790 | 149,366 |
Purchase of available for sale securities | (3,839,758) | (2,401,762) |
Net change in total loans | (687,460) | (135,197) |
Purchase of bank premises and equipment | (5,520) | (12,279) |
Proceeds from sale of bank premises, equipment and other real estate | 4,027 | |
Net purchases of Federal Home Loan Bank stock | (3,304) | (2,865) |
Net cash paid for the LoweryBank branch acquisition | (32,867) | |
Net cash used in investing activities | (952,609) | (189,685) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in noninterest-bearing deposits | 520,468 | 4,659 |
Net increase in interest-bearing deposits | 329,092 | 214,828 |
Net change in other borrowed funds | 65,000 | (99,992) |
Net increase in borrowings under credit agreement | 15,000 | 34,000 |
Proceeds from subordinated notes issuance | 58,692 | |
Dividends paid to common shareholders | (6,102) | |
Proceeds from the issuance of common stock, stock option exercises and the ESPP | 1,727 | 1,562 |
Repurchase of common stock | (9,302) | (47,155) |
Net cash provided by financing activities | 915,883 | 166,594 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 900 | 31,672 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 346,248 | 268,947 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 347,148 | 300,619 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 5,800 | 8,000 |
Interest paid | 32,178 | 37,645 |
Cash paid for operating lease liabilities | 2,438 | 2,713 |
SUPPLEMENTAL NONCASH DISCLOSURE: | ||
Lease right-of-use asset obtained in exchange for lessee operating lease liabilities | 2,221 | 13,277 |
Loans transferred to other real estate | 539 | $ 7,703 |
Other real estate transferred to loans | $ 2,315 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations -Allegiance Bancshares, Inc. (“Allegiance”) and its wholly-owned subsidiary, Allegiance Bank, (the “Bank”, and together with Allegiance, collectively referred to as the “Company”) provide commercial and retail loans and commercial banking services. The Company derives substantially all of its revenues and income from the operation of the Bank. The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small to medium-sized businesses, professionals and individual customers. The Company operated 28 full-service bank offices in the Houston region, which it defines as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 27 bank offices in the Houston metropolitan area and one bank office location in Beaumont, just outside of the Houston metropolitan area as of September 30, 2020. The Bank provides its customers with a variety of banking services including checking accounts, savings accounts and certificates of deposit, and its primary lending products are commercial, personal, automobile, mortgage and home improvement loans. The Bank also offers safe deposit boxes, automated teller machines, drive-through services and 24-hour depository facilities. Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between the Company and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. Impact of COVID-19 The coronavirus (COVID-19) pandemic has negatively impacted the global economy, disrupted global supply chains and increased unemployment levels. The resulting temporary closure or limited service capacity of many businesses and the implementation of social distancing and sheltering-in-place policies has and may continue to impact many of the Company’s customers. While the full effects of the pandemic remain unknown, the Company is committed to supporting its customers, employees and communities during this difficult time. The Company has given hardship relief assistance to customers, including the consideration of various loan payment deferral and fee waiver options, and encourages customers to reach out for assistance to support their individual circumstances. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by the President of the United States. Certain provisions within the CARES Act encourage financial institutions to practice prudent efforts to work with borrowers impacted by COVID-19. Under these provisions, modifications deemed to be COVID-19-related would not be considered a troubled debt restructuring (“TDR”) if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. The banking regulators issued similar guidance, which also clarified that a COVID-19-related modification should not be considered a TDR if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification is considered to be short-term. For loans subject to the deferral program, each borrower is required to begin making their regularly scheduled loan payment at the end of the deferral period and the deferred amounts were generally moved to the end of the loan. Under these terms, during the nine months ended September 30, 2020, the Company granted 2,007 initial principal and interest deferrals on outstanding loan balances of $1.15 billion at September 30, 2020 with associated accrued interest of $16.1 million. Additionally, upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. Of the initial deferrals, 242 loans with outstanding loan balances of $219.6 million with associated accrued interest of $3.4 million, as of September 30 , 2020 had been granted additional deferrals. These deferrals were generally no more than 90 days in duration . As of September 30, 2020, 286 loans with outstanding loan balances of $ 237.0 million remained on deferral. Additionally, the Bank is a lender for the Small Business Administration's (“SBA”) Paycheck Protection Program ("PPP"), a program under the CARES Act, and other SBA, Federal Reserve or United States Treasury programs that have been created in response to the pandemic and may be a lender for programs created in the future. These programs are new and their effects on the Company’s business are uncertain. As of September 30, 2020, the Company had funded 6,334 PPP loans totaling $710.2 million under the allocation approved by Congress. The Company identified several loan portfolio categories that it considered to be most “at-risk” from the COVID-19 pandemic, such as, oil and gas, hotel, and restaurants and bars with outstanding loan balances, excluding PPP loans, of $74.0 million, $133.8 million and $117.1 million at September 30, 2020, respectively. The Company’s exposure to the oil and gas industry was less than 2.0% of total loans at September 30, 2020 and it does not participate in exploration and production or reserve-based lending; however, the industry is vital to the Houston region and the indirect effects could be significant. The Company considers these “at-risk” portfolios to be the most vulnerable to financial difficulties and risks from business disruptions caused by the pandemic spread mitigation efforts. Due to the uncertainty in the economy and potential impacts from unemployment as a result of COVID-19 and the volatility of crude oil prices, the impact could extend to the Company’s securities portfolio, income taxes, other real estate owned and goodwill and intangibles among other items, although the impact is dependent on future events which are highly uncertain and cannot be predicted at this time. Due to the COVID-19 pandemic, the Company initiated an enhanced customer outreach effort to re-evaluate its loan grades assigned to its commercial loan portfolio during the third quarter of 2020, the results of which are reflected in the financial statement disclosures for this quarter. Effects as a result of the pandemic may continue, potentially resulting in further downgrades and additional loans being identified. In a period of economic contraction, additional loan losses and lost interest income may occur, either in the industries previously noted or others to which the Company has exposure. The Company continues to accrue interest on loans modified under the new accounting standards. To the extent those borrowers are unable to resume normal contractual payments, the Company could experience additional losses of principal and interest. Significant Accounting and Reporting Policies The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Derivative Instruments — In accordance with ASC Topic 815, “Derivatives and Hedging”, derivative instruments are recorded on the accompanying consolidated balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings in the period of change. The derivative is carried on the balance sheet in other liabilities. The Company’s derivative contract has been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. The Company prepared written hedge documentation for the derivative that is designated as a hedge. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be effective. For the designated hedging relationship, the Company performs retrospective and prospective effectiveness testing using quantitative methods where required by accounting standards. For the hedging relationship, effectiveness is tested through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The portion of the changes in the fair value of a derivative that is effective and that has been designated and qualifies as a cash flow hedge is initially recorded in accumulated other comprehensive income and will be reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings. The derivative is carried at fair value based on the Company’s pricing model that utilizes observable market inputs and is reflected within Level 2 of the valuation hierarchy. New Accounting Standards Adoption of New Accounting Standards ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. In response to COVID-19, new GAAP guidance was issued whereby, subject to certain restrictions, loan modifications may not be subject to classification as TDRs. Upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. During the nine months ended September 30, 2020, the Company granted 2,007 initial principal and interest deferrals on outstanding loan balances of $1.15 billion, as of September 30, 2020. Of the initial deferrals, 242 loans with outstanding loan balances of $219.6 million had been granted additional deferrals upon request and after meeting certain conditions, as of September 30, 2020. As of September 30, 2020, 286 loans with outstanding loan balances of $237.0 million remained on deferral. ASU 2018-13, “Fair Value Measurement (Topic 820). – Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in ASU 2018-13 remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements identified as relevant. ASU 2018-13 became effective for the Company on January 1, 2020 and did not have a significant impact on the Company’s financial statements. A SU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” The amendments in this update are effective for the Company’s annual goodwill impairment tests beginning in 2020. The amendments are applied on a prospective basis and the impact from the accounting guidance is highly dependent on changes in financial markets and future events. The Company will monitor indicators of goodwill impairment on a quarterly basis and will record impairment if it is determined to have occurred. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 became effective for the Company on January 1, 2019. Upon adoption, the Company recognized a cumulative effect reduction in retained earnings totaling $1.7 million. Newly Issued But Not Yet Effective Accounting Standards ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In March 2020, the FASB issued Accounting Standards Update 2020-04, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is implementing a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. The Company is assessing ASU 2020-04 and its impact on the transition away from LIBOR for its loan and other financial instruments. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other things, ASU 2016-13 (“CECL”) requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, CECL amends the accounting for credit losses on available for sale debt securities and purchased financial assets with cred it deterioration. CECL became effective for the Company on January 1, 2020 using the modified retrospective a pproach; however , the CARES Act includes an option for entities to delay the implementation of ASU 2016-13 until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020. The Company expects to adopt CECL as of January 1, 2020 after the deferral period ends. Due to the uncertainty of the impact of COVID-19 and the volatility of crude oil prices , which can be impactful to the Houston market , the Company has delayed its implementation of CECL and has calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASU 2016-13. The Company will continue to perform and enhance CECL model operations parallel with the incurred loss model throughout 2020, or until adoption. ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” to simplify various aspects of the current guidance to promote consistent application of the standard among reporting entities by moving certain exceptions to the general principles. The amendment is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 will be become effective for the Company on January 1, 2021 and is not expected to have a significant impact on the Company’s financial statements. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | 2. ACQUISITIONS Acquisitions are accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of an acquired entity are recorded at their fair value at the acquisition date. The excess of the purchase price over the estimated fair value of the net assets is recorded as goodwill. The results of operations for an acquisition have been included in the Company’s consolidated financial results beginning on the respective acquisition date. The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities will end at the earlier of (1) twelve months from the date of the acquisition or (2) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. The following acquisitions were completed on the dates indicated below: 2018 Acquisition Acquisition of Post Oak Bancshares, Inc. —On October 1, 2018, the Company completed the acquisition of Post Oak Bancshares, Inc. (“Post Oak”) and its wholly-owned subsidiary Post Oak Bank, N.A. headquartered in Houston, Texas. Post Oak operated thirteen bank offices, twelve located throughout the greater Houston metropolitan area and one in Beaumont, just outside of the Houston metropolitan area. The Company acquired Post Oak to further expand its Houston, Texas area market. Goodwill resulted from a combination of expected operational synergies and an enhanced branching network. Goodwill is not expected to be deductible for tax purposes. Pursuant to the merger agreement, the Company issued 8,402,010 shares of Company common stock for all outstanding shares of Post Oak common stock and paid $21 thousand in cash for any fractional shares held by Post Oak shareholders. Additionally, all outstanding Post Oak options were assumed by Allegiance and converted using the 0.7017 exchange ratio to 299,352 options at a weighted average exercise price of $12.83 per option. Based on the $41.70 per share closing price of Allegiance common stock on September 28, 2018, the total transaction value was approximately $359.0 million. The acquisition was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $183.7 million which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of identifiable assets acquired, none of which is expected to be deductible for tax purposes. The intangible assets recognized in the transaction are amortized utilizing an accelerated method over their ten year estimated useful lives. As of September 30, 2019, the Company finalized its valuation of all assets and liabilities acquired. A summary of the purchase price allocation is as follows (in thousands): Fair value of consideration paid: Common shares issued (8,402,010 shares) $ 350,364 Stock options issued (299,352) 8,639 Cash in lieu of fractional shares 21 Total consideration paid $ 359,024 Fair value of assets acquired: Cash and cash equivalents $ 230,416 Investment securities 42,779 Loans 1,164,281 Premises and equipment 21,988 Core deposit intangibles 25,128 Other assets 18,076 Total assets acquired $ 1,502,668 Fair value of liabilities assumed: Deposits $ 1,291,310 Other borrowed funds 30,000 Other liabilities 6,070 Total liabilities assumed 1,327,380 Fair value of net assets acquired $ 175,288 Goodwill resulting from acquisition $ 183,736 The fair value of net assets acquired includes fair value adjustments to certain acquired loans that were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows. The following presents details of all loans acquired as of October 1, 2018: Contractual Balance Fair Value Discount (Dollars in thousands) Commercial and industrial $ 221,098 $ 217,204 $ (3,894 ) Real estate: Commercial real estate (including multi-family residential) 450,947 443,512 (7,435 ) Commercial real estate construction and land development 167,386 165,387 (1,999 ) 1-4 family residential (including home equity) 288,304 285,099 (3,205 ) Residential construction 23,812 23,812 — Consumer and other 29,684 29,267 (417 ) Total loans $ 1,181,231 $ 1,164,281 $ (16,950 ) In connection with the Post Oak acquisition, the Company acquired loans both with and without evidence of credit quality deterioration since origination. The acquired loans were initially recorded at fair value with no carryover of any allowance for loan losses. Acquired loans were segregated between those considered to be purchased credit impaired (“PCI”) loans and those without credit impairment at acquisition. The Company incurred approximately $1.7 million and $1.3 million of pre-tax acquisition and merger-related expenses reflected on the Company’s income statement during the years ended December 31, 2018 and 2019, respectively, related to the Post Oak acquisition. 2019 Acquisition Acquisition of LoweryBank Branch —On February 1, 2019, the Bank completed the acquisition of LoweryBank, the Sugar Land location of Huntington State Bank. The Bank paid $32.9 million in cash to acquire certain assets which included approximately $45.0 million in loans and assumed approximately $16.0 million in customer deposits. The Bank consolidated its existing Sugar Land bank office into this new bank office location, which was less than one mile away. The acquisition of LoweryBank was accounted for under the acquisition method of accounting in accordance with ASC Topic 805, Business Combinations. The Company recognized goodwill of $578 thousand which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of identifiable assets acquired, which is expected to be deductible for tax purposes. Income and expense generated from acquired assets and liabilities assumed would not have a material impact; therefore, proforma numbers are not presented. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 3. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Core Deposit Goodwill Intangibles (Dollars in thousands) Balance as of December 31, 2018 $ 223,125 $ 26,587 Acquisition of LoweryBank branch 578 — Measurement period adjustment (61 ) — Amortization — (4,711 ) Balance as of December 31, 2019 223,642 21,876 Amortization — (2,969 ) Balance as of September 30, 2020 $ 223,642 $ 18,907 Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. There was a $61 thousand measurement period adjustment recorded during the first quarter 2019 related to the Post Oak Bank acquisition. The Company performs its annual evaluation of goodwill impairment of Allegiance Bancshares, Inc., the sole reporting unit, in the fourth quarter of each year and on an interim basis if events or changes in circumstances between annual tests suggest additional testing may be warranted to determine if goodwill might be impaired. The Company has one reporting unit. Due to the effects that the COVID-19 pandemic continues to have on the economy and the movement of the Company’s stock price, the Company performed a quantitative goodwill impairment analysis and determined that goodwill was not impaired as of September 30, 2020. If adverse economic conditions or declines in the Company’s stock price are sustained, further quantitative and qualitative analysis could result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. However, such a charge would not have an impact on the Company’s liquidity, operations or regulatory capital. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2020 is as follows (dollars in thousands): Remaining 2020 $ 953 2021 3,296 2022 3,003 2023 2,323 2024 2,188 Thereafter 7,144 Total $ 18,907 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
SECURITIES | 4. SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 26,304 $ 678 $ — $ 26,982 Municipal securities 355,565 29,617 (228 ) 384,954 Agency mortgage-backed pass-through securities 100,078 3,871 (45 ) 103,904 Agency collateralized mortgage obligations 79,765 4,302 (71 ) 83,996 Corporate bonds and other 62,626 1,174 (335 ) 63,465 Total $ 624,338 $ 39,642 $ (679 ) $ 663,301 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 29,420 $ 298 $ (243 ) $ 29,475 Municipal securities 84,200 3,453 (116 ) 87,537 Agency mortgage-backed pass-through securities 104,669 1,713 (214 ) 106,168 Agency collateralized mortgage obligations 106,351 1,199 (208 ) 107,342 Corporate bonds and other 41,691 346 (14 ) 42,023 Total $ 366,331 $ 7,009 $ (795 ) $ 372,545 As of September 30, 2020, the Company’s management did not expect to sell any securities classified as available for sale with material unrealized losses, and the Company believes it is more likely than not it will not be required to sell any of these securities before their anticipated recovery, at which time the Company will receive full value for the securities. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2020, management believed the unrealized losses in the previous table are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated statements of income. The amortized cost and fair value of investment securities at September 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair Cost Value (Dollars in thousands) Due in one year or less $ 4,415 $ 4,419 Due after one year through five years 11,508 11,986 Due after five years through ten years 102,340 106,109 Due after ten years 326,232 352,887 Subtotal 444,495 475,401 Agency mortgage-backed pass through and collateralized mortgage obligation securities 179,843 187,900 Total $ 624,338 $ 663,301 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2020 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available for Sale Agency mortgage-backed pass-through securities $ 7,930 $ (45 ) $ — $ — $ 7,930 $ (45 ) Agency collateralized mortgage obligations 15,713 (32 ) 4,356 (39 ) 20,069 (71 ) Municipal securities 31,893 (228 ) — — 31,893 (228 ) Corporate bonds and other 16,571 (335 ) — — 16,571 (335 ) Total $ 72,107 $ (640 ) $ 4,356 $ (39 ) $ 76,463 $ (679 ) December 31, 2019 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available for Sale U.S. government and agency securities $ 22,295 $ (239 ) $ 436 $ (4 ) $ 22,731 $ (243 ) Agency mortgage-backed pass-through securities 20,792 (155 ) 4,369 (59 ) 25,161 (214 ) Agency collateralized mortgage obligations 22,340 (208 ) — — 22,340 (208 ) Municipal securities 9,514 (116 ) — — 9,514 (116 ) Corporate bonds and other 5,492 (14 ) — — 5,492 (14 ) Total $ 80,433 $ (732 ) $ 4,805 $ (63 ) $ 85,238 $ (795 ) There were no securities sold during the three months ended September 30, 2020. The Company sold $30.8 million and had calls of $7.1 million of securities recording gross gains of $391 thousand and gross losses of $104 thousand for a net gain of $287 thousand for the nine months ended September 30, 2020. The Company sold $149.4 million of securities and recorded gross gains of $1.4 million and gross losses of $576 thousand for a net gain of $846 thousand during the three and nine months ended September 30, 2019. At September 30, 2020 and December 31, 2019, the Company did not own securities of any one issuer, other than the U.S government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates. The carrying value of pledged securities was $20.7 million at September 30, 2020 and $24.3 million at December 31, 2019, respectively. The majority of the securities were pledged to collateralize public fund deposits. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2020 | |
Loans And Allowance For Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | 5. LOANS AND ALLOWANCE FOR LOAN LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial and industrial $ 650,634 $ 689,360 Mortgage warehouse — 8,304 Paycheck Protection Program (PPP) 710,234 — Real estate: Commercial real estate (including multi-family residential) 1,971,228 1,873,782 Commercial real estate construction and land development 376,877 410,471 1-4 family residential (including home equity) 716,565 698,957 Residential construction 148,056 192,515 Consumer and other 18,768 41,921 Total loans 4,592,362 3,915,310 Allowance for loan losses (48,698 ) (29,438 ) Loans, net $ 4,543,664 $ 3,885,872 Acquired Loans PCI loans The Company has loans that were acquired and for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of PCI loans included in the consolidated balance sheet and the related outstanding balance owed at September 30, 2020 and December 31, 2019 are presented in the table below: As of September 30, 2020 As of December 31, 2019 (Dollars in thousands) Outstanding balance $ 15,195 $ 16,589 Less: Discount (1,970 ) (2,414 ) Less: Allowance (1,381 ) (259 ) Recorded investment $ 11,844 $ 13,916 Acquired loans were recorded through acquisition accounting without an allowance. There was an allocation of $1.4 million in the allowance for loan losses relating to PCI loans at September 30, 2020. Changes in the accretable yield for PCI loans for the three and nine months ended September 30, 2020 and 2019 were deemed immaterial. Nonaccrual and Past Due Loans An aging analysis of the recorded investment, defined as the unpaid principal balance, in past due loans, segregated by class of loans, is as follows: September 30, 2020 Loans Past Due and Still Accruing 30-89 90 or More Total Past Nonaccrual Current Total Days Days Due Loans Loans Loans Loans (Dollars in thousands) Commercial and industrial $ 3,793 $ — $ 3,793 $ 13,171 $ 633,670 $ 650,634 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — 710,234 710,234 Real estate: Commercial real estate (including multi-family residential) 2,419 — 2,419 15,849 1,952,960 1,971,228 Commercial real estate construction and land development 1,433 — 1,433 3,085 372,359 376,877 1-4 family residential (including home equity) 8,722 — 8,722 4,263 703,580 716,565 Residential construction 3,150 — 3,150 876 144,030 148,056 Consumer and other 392 — 392 684 17,692 18,768 Total loans $ 19,909 $ — $ 19,909 $ 37,928 $ 4,534,525 $ 4,592,362 December 31, 2019 Loans Past Due and Still Accruing 30-89 90 or More Total Past Nonaccrual Current Total Days Days Due Loans Loans Loans Loans (Dollars in thousands) Commercial and industrial $ 3,098 $ — $ 3,098 $ 8,388 $ 677,874 $ 689,360 Mortgage warehouse — — — — 8,304 8,304 Real estate: Commercial real estate (including multi-family residential) 4,421 — 4,421 6,741 1,862,620 1,873,782 Commercial real estate construction and land development 66 — 66 9,050 401,355 410,471 1-4 family residential (including home equity) 1,598 — 1,598 3,294 694,065 698,957 Residential construction 564 — 564 746 191,205 192,515 Consumer and other 254 — 254 152 41,515 41,921 Total loans $ 10,001 $ — $ 10,001 $ 28,371 $ 3,876,938 $ 3,915,310 Impaired Loans Impaired loans by class of loans are set forth in the following tables. As of September 30, 2020 Unpaid Recorded Principal Related Investment Balance Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,627 $ 5,771 $ — Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 12,835 12,835 — Commercial real estate construction and land development 3,085 3,085 — 1-4 family residential (including home equity) 1,623 1,623 — Residential construction 876 1,053 — Consumer and other 53 53 — Total 24,099 24,420 — With an allowance recorded: Commercial and industrial 12,933 13,328 5,428 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 13,498 13,498 2,801 Commercial real estate construction and land development 3,342 3,342 216 1-4 family residential (including home equity) 1,834 1,834 124 Residential construction — — — Consumer and other 520 520 276 Total 32,127 32,522 8,845 Total: Commercial and industrial 18,560 19,099 5,428 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 26,333 26,333 2,801 Commercial real estate construction and land development 6,427 6,427 216 1-4 family residential (including home equity) 3,457 3,457 124 Residential construction 876 1,053 — Consumer and other 573 573 276 $ 56,226 $ 56,942 $ 8,845 As of December 31, 2019 Unpaid Recorded Principal Related Investment Balance Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,721 $ 6,136 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 19,478 19,558 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 2,000 2,000 — Residential construction 208 208 — Consumer and other 38 38 — Total 27,445 27,940 — With an allowance recorded: Commercial and industrial 7,812 7,286 3,480 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 5,335 5,335 459 Commercial real estate construction and land development 12,142 12,142 2,085 1-4 family residential (including home equity) — — — Residential construction 537 537 66 Consumer and other 26 26 26 PCI 2,039 2,959 659 Total 27,891 28,285 6,775 Total: Commercial and industrial 13,533 13,422 3,480 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 24,813 24,893 459 Commercial real estate construction and land development 12,142 12,142 2,085 1-4 family residential (including home equity) 2,000 2,000 — Residential construction 745 745 66 Consumer and other 64 64 26 PCI 2,039 2,959 659 $ 55,336 $ 56,225 $ 6,775 The following table presents average impaired loans and interest recognized on impaired loans for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) Commercial and industrial $ 19,109 $ 128 $ 12,268 $ 94 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 26,326 63 18,762 86 Commercial real estate construction and land development 6,440 65 12,005 52 1-4 family residential (including home equity) 3,498 — 1,609 — Residential construction 887 — — — Consumer and other 580 2 91 1 Total $ 56,840 $ 258 $ 44,735 $ 233 Nine Months Ended September 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) Commercial and industrial $ 19,770 $ 292 $ 12,265 $ 261 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 26,513 370 19,453 279 Commercial real estate construction and land development 6,308 162 10,263 140 1-4 family residential (including home equity) 3,540 6 1,641 4 Residential construction 811 — — — Consumer and other 590 3 96 — Total $ 57,532 $ 833 $ 43,718 $ 684 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including factors such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans by credit risk. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for loan losses, management assigns and tracks risk ratings to be used as credit quality indicators. Due to the COVID-19 pandemic, the Company initiated an enhanced customer outreach effort to re-evaluate its loan grades assigned to its commercial loan portfolio during the third quarter of 2020, the results of which are reflected in the disclosures below. Effects as a result of the pandemic may continue, potentially resulting in further downgrades and additional loans being identified. The following is a general description of the risk ratings used: Pass —Loans classified as pass are loans with low to average risk and not otherwise classified as watch, special mention, substandard or doubtful. In addition, the guaranteed portion of SBA loans are considered pass risk rated loans. Watch —Loans classified as watch loans may still be of high quality, but have an element of risk added to the credit such as declining payment history, deteriorating financial position of the borrower or a decrease in collateral value. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard —Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, impaired or declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These classified loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loan at their recorded investment at September 30, 2020 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 563,375 $ 31,973 $ 23,748 $ 31,395 $ 143 $ 650,634 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) 710,234 — — — — 710,234 Real estate: Commercial real estate (including multi-family residential) 1,638,276 192,413 78,725 61,814 — 1,971,228 Commercial real estate construction and land development 335,865 32,436 3,108 5,468 — 376,877 1-4 family residential (including home equity) 651,583 36,696 18,444 9,842 — 716,565 Residential construction 141,319 3,614 2,247 876 — 148,056 Consumer and other 17,487 297 281 703 — 18,768 Total loans $ 4,058,139 $ 297,429 $ 126,553 $ 110,098 $ 143 $ 4,592,362 The following table presents the risk category of loans by class of loan at December 31, 2019: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 641,696 $ 14,170 $ 9,121 $ 24,295 $ 78 $ 689,360 Mortgage warehouse 8,304 — — — — 8,304 Real estate: Commercial real estate (including multi-family residential) 1,775,789 47,762 9,289 40,942 — 1,873,782 Commercial real estate construction and land development 388,151 9,583 639 12,098 — 410,471 1-4 family residential (including home equity) 669,288 15,798 5,844 8,027 — 698,957 Residential construction 189,209 2,560 — 746 — 192,515 Consumer and other 41,355 6 358 202 — 41,921 Total loans $ 3,713,792 $ 89,879 $ 25,251 $ 86,310 $ 78 $ 3,915,310 Allowance for Loan Losses The following table presents the activity in the allowance for loan losses by portfolio type for the three and nine months ended September 30, 2020 and 2019: Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Three Months Ended Balance June 30, 2020 $ 13,367 $ — $ — $ 20,889 $ 3,865 $ 7,542 $ 1,803 $ 176 $ 47,642 Provision for loan losses (126 ) — — 2,453 (379 ) (349 ) (471 ) 219 1,347 Charge-offs (350 ) — — — (71 ) — — — (421 ) Recoveries 122 — — 8 — — — — 130 Net charge-offs (228 ) — — 8 (71 ) — — — (291 ) Balance September 30, 2020 $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Nine Months Ended Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Provision for loan losses 5,256 — — 12,309 1,335 3,556 275 275 23,006 Charge-offs (1,442 ) — — (137 ) (2,341 ) (215 ) — — (4,135 ) Recoveries 381 — — 8 — — — — 389 Net charge-offs (1,061 ) — — (129 ) (2,341 ) (215 ) — — (3,746 ) Balance September 30, 2020 $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Allowance for loan losses: Three Months Ended Balance June 30, 2019 $ 8,255 $ — $ — $ 12,940 $ 2,257 $ 3,376 $ 1,004 $ 108 $ 27,940 Provision for loan losses 1,322 — — 613 (222 ) 608 247 29 2,597 Charge-offs (769 ) — — — (44 ) — — — (813 ) Recoveries 84 — — — — — — — 84 Net charge-offs (685 ) — — — (44 ) — — — (729 ) Balance September 30, 2019 $ 8,892 $ — $ — $ 13,553 $ 1,991 $ 3,984 $ 1,251 $ 137 $ 29,808 Nine Months Ended Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 Provision for loan losses 1,668 — — 1,729 (689 ) 2,037 211 50 5,006 Charge-offs (1,357 ) — — (80 ) (44 ) (295 ) — (8 ) (1,784 ) Recoveries 230 — — 3 — — — 22 255 Net charge-offs (1,127 ) — — (77 ) (44 ) (295 ) — 14 (1,529 ) Balance September 30, 2019 $ 8,892 $ — $ — $ 13,553 $ 1,991 $ 3,984 $ 1,251 $ 137 $ 29,808 The following table presents the balance of the allowance for loan losses by portfolio type based on the i mpairment method as of September 3 0 , 20 20 and December 31, 201 9 : Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: September 30, 2020 Individually evaluated for impairment $ 5,428 $ — $ — $ 2,801 $ 216 $ 124 $ — $ 276 $ 8,845 Collectively evaluated for impairment 7,585 — — 20,549 3,199 7,069 1,332 119 39,853 Total allowance for loan losses $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 December 31, 2019 Individually evaluated for impairment $ 4,139 $ — $ — $ 459 $ 2,085 $ — $ 66 $ 26 $ 6,775 Collectively evaluated for impairment 4,679 — — 10,711 2,336 3,852 991 94 22,663 Total allowance for loan losses $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of September 30, 2020 and December 31, 2019: Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: September 30, 2020 Individually evaluated for impairment $ 18,560 $ — $ — $ 26,333 $ 6,427 $ 3,457 $ 876 $ 573 $ 56,226 Collectively evaluated for impairment 632,074 — 710,234 1,944,895 370,450 713,108 147,180 18,195 4,536,136 Total loans evaluated for impairment $ 650,634 $ — $ 710,234 $ 1,971,228 $ 376,877 $ 716,565 $ 148,056 $ 18,768 $ 4,592,362 December 31, 2019 Individually evaluated for impairment $ 15,572 $ — $ — $ 24,813 $ 12,142 $ 2,000 $ 745 $ 64 $ 55,336 Collectively evaluated for impairment 673,788 8,304 — 1,848,969 398,329 696,957 191,770 41,857 3,859,974 Total loans evaluated for impairment $ 689,360 $ 8,304 $ — $ 1,873,782 $ 410,471 $ 698,957 $ 192,515 $ 41,921 $ 3,915,310 Troubled Debt Restructurings As of September 30, 2020 and December 31, 2019, the Company had a recorded investment in troubled debt restructurings of $32.1 million and $28.9 million, respectively. The Company allocated $6.8 million and $3.2 million of specific reserves for troubled debt restructurings at September 30, 2020 and December 31, 2019. The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 5 $ 1,133 $ 1,133 4 $ 1,502 $ 1,502 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 1,983 1,983 — — — Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) 1 1,081 1,081 — — — Residential construction — — — — — — Consumer and other — — — — — — Total 9 $ 4,197 $ 4,197 4 $ 1,502 $ 1,502 Nine Months Ended September 30, 2020 2019 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 16 $ 3,137 $ 3,137 11 $ 2,069 $ 2,069 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 1,983 1,983 1 303 303 Commercial real estate construction and land development 1 830 830 — — — 1-4 family residential (including home equity) 4 2,021 2,021 1 396 396 Residential construction — — — — — — Consumer and other 1 30 30 1 38 38 Total 25 $ 8,001 $ 8,001 14 $ 2,806 $ 2,806 Troubled debt restructurings resulted in $632 thousand of charge-offs during the nine months ended September 30, 2020 and $251 thousand of charge-offs during the nine months ended September 30, 2019. There was one loan for $22 thousand modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the nine months ended September 30, 2020. As of September 30, 2019, seven loans for a total of $4.7 million were modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the nine months ended September 30, 2019. Default is determined at 90 or more days past due. The modifications primarily related to extending the amortization periods of the loans. The Company did not grant principal reductions on any restructured loans. There were no commitments to lend additional amounts to troubled debt restructured loans for the three and nine months ended September 30, 2020 and 2019. During the nine months ended September 30, 2020, the Company added $8.0 million in new troubled debt restructurings, of which $6.7 million was still outstanding on September 30, 2020. During the nine months ended September 30, 2019, the Company added $2.8 million in new troubled debt restructurings, of which $2.7 million was still outstanding on September 30, 2019. In working with customers adversely affected by the COVID-19 pandemic, the Company implemented a payment deferral program where customers meeting certain conditions were able to request payment deferrals that were not considered troubled debt restructurings. During the nine months ended September 30, 2020, the Company granted 2,007 initial principal and interest deferrals on outstanding loan balances of $1.15 billion at September 30, 2020 with associated accrued interest of $16.1 million. Additionally, upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. Of the initial deferrals, 242 loans with outstanding loan balances of $219.6 million with associated accrued interest of $3.4 million, as of September 30, 2020 had been granted additional deferrals. These deferrals were generally no more than 90 days in duration and were not considered troubled debt restructurings. While the modifications themselves did not trigger a downgrade, if the impact of COVID-19 continues, borrower operations do not improve or if other negative events occur, such modified loans could transition to potential problem loans or into problem loans. The following table presents information regarding principal and interest deferrals as of September 30, 2020 associated with loan modifications related to COVID-19: Initial Deferrals Additional Deferrals Remaining Deferrals Outstanding Loan Balance Deferred Loan Balance Percentage of Total Deferrals Deferred Loan Balance Percentage of Total Deferrals Deferred Loan Balance Percentage of Total Deferrals (Dollars in thousands) Commercial and industrial $ 650,634 $ 123,996 10.8 % $ 19,681 9.0 % $ 26,061 11.0 % Mortgage warehouse — — 0.0 % — 0.0 % — 0.0 % Paycheck Protection Program (PPP) 710,234 — 0.0 % — 0.0 % — 0.0 % Real estate: Commercial real estate (including multi-family residential) 1,971,228 791,323 68.7 % 166,509 75.8 % 169,875 71.6 % Commercial real estate construction and land development 376,877 102,537 8.9 % 17,041 7.7 % 22,219 9.4 % 1-4 family residential (including home equity) 716,565 125,063 10.8 % 15,132 6.9 % 17,599 7.4 % Residential construction 148,056 7,654 0.7 % 1,139 0.5 % 1,139 0.5 % Consumer and other 18,768 1,112 0.1 % 140 0.1 % 142 0.1 % Total loans $ 4,592,362 $ 1,151,685 100.0 % $ 219,642 100.0 % $ 237,035 100.0 % |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | 6. LEASES Lease payments over the expected term are discounted using the Company’s incremental borrowing rate for borrowings of similar terms. Generally, the Company cannot be reasonably certain about whether or not it will renew a lease until such time as the lease is within the last two years of the existing lease term. When the Company is reasonably certain that a renewal option will be exercised, it measures/remeasures the right-of-use asset and related lease liability using the lease payments specified for the renewal period or, if such amounts are unspecified, the Company generally assumes an increase (evaluated on a case-by-case basis in light of prevailing market conditions) in the lease payment over the final period of the existing lease term. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the nine months ended September 30, 2020 and 2019. At September 30, 2020, the Company had 14 leases consisting of branch locations and office space along with equipment. On the September 30, 2020 balance sheet, the right-of-use asset is classified within premises and equipment and the lease liability is included in other liabilities. The Company also owns certain office facilities which it leases to outside parties under operating lessor leases; however, such leases are not significant. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. During the third quarter 2019, Allegiance Bank purchased two previously leased properties for a total of $10.7 million. Certain leases include options to renew, with renewal terms that can extend the lease term from one to five years. Lease assets and liabilities include related options that are reasonably certain of being exercised. The depreciable life of leased assets are limited by the expected lease term. Supplemental lease information at the dates indicated is as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 11,455 $ 11,180 Operating lease liability classified as other liabilities 11,714 11,477 Weighted average lease term, in years 5.74 5.53 Weighted average discount rate 2.85 % 3.19 % Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Income Statement: Operating lease cost $ 839 $ 734 $ 2,422 $ 2,281 Short-term lease cost 14 132 64 506 Sublease income (18 ) (18 ) (48 ) (54 ) Total operating lease costs $ 835 $ 848 $ 2,438 $ 2,733 A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Lease payments due: Within one year $ 2,948 $ 2,867 After one but within two years 2,708 2,608 After two but within three years 1,916 2,204 After three but within four years 1,617 1,596 After four but within five years 913 1,131 After five years 2,571 2,162 Total lease payments 12,673 12,568 Discount on cash flows 959 1,091 Total lease liability $ 11,714 $ 11,477 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 7. FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price,” in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 347,148 $ 347,148 $ — $ — $ 347,148 Available for sale securities 663,301 — 663,301 — 663,301 Loans held for investment, net of allowance 4,543,664 — — 4,528,496 4,528,496 Accrued interest receivable 36,996 2 4,504 32,490 36,996 Financial liabilities Deposits $ 4,917,366 $ — $ 4,934,061 $ — $ 4,934,061 Interest rate swap 1,495 — 1,495 — 1,495 Accrued interest payable 3,082 — 3,082 — 3,082 Borrowed funds 155,512 — 157,413 — 157,413 Subordinated debt 108,191 — 108,600 — 108,600 As of December 31, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 346,248 $ 346,248 $ — $ — $ 346,248 Available for sale securities 372,545 — 372,545 — 372,545 Loans held for investment, net of allowance 3,885,872 — — 3,918,210 3,918,210 Accrued interest receivable 15,468 13 1,783 13,672 15,468 Financial liabilities Deposits $ 4,068,101 $ — $ 4,073,031 $ — $ 4,073,031 Accrued interest payable 4,326 — 4,326 — 4,326 Borrowed funds 75,503 — 83,302 — 83,302 Subordinated debt 107,799 — 109,607 — 109,607 The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: September 30, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,982 $ — $ 26,982 Municipal securities — 384,954 — 384,954 Agency mortgage-backed pass-through securities — 103,904 — 103,904 Agency collateralized mortgage obligations — 83,996 — 83,996 Corporate bonds and other — 63,465 — 63,465 Total available for sale securities $ — $ 663,301 $ — $ 663,301 Financial liabilities Interest rate swap $ — $ 1,495 $ — $ 1,495 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 29,475 $ — $ 29,475 Municipal securities — 87,537 — 87,537 Agency mortgage-backed pass-through securities — 106,168 — 106,168 Agency collateralized mortgage obligations — 107,342 — 107,342 Corporate bonds and other — 42,023 — 42,023 Total available for sale securities $ — $ 372,545 $ — $ 372,545 There were no liabilities measured at fair value on a recurring basis as of December 31, 2019. There were no transfers between levels during the nine months ended September 30, 2020 or 2019. The following table presents certain assets measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of September 30, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 7,505 Commercial real estate (including multi- family residential) — — 10,697 Commercial real estate construction and land development — — 3,126 1-4 family residential (including home equity) — — 1,710 Residential construction — — — Consumer and other — — 244 Other real estate owned — — 8,876 $ — $ — $ 32,158 As of December 31, 2019 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 4,332 Commercial real estate (including multi- family residential) — — 4,876 Commercial real estate construction and land development — — 10,057 Residential construction — — 471 PCI — — 1,380 Other real estate owned — — 8,337 $ — $ — $ 29,453 Impaired Loans with Specific Allocation of Allowance A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due pursuant to the contractual terms of the loan agreement. Impairment is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the impaired loan’s collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third-party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 10% of the appraised value. For non-real estate loans, fair value of the impaired loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the customer and the customer's business. During the nine months ended September 30, 2020 and the year ended December 31, 2019, certain impaired loans were reevaluated and reported at fair value through a specific allocation of the allowance for loan losses. At September 30, 2020, the total reported fair value of impaired loans of $23.3 million based on collateral valuations utilizing Level 3 valuation inputs had a recorded investment of $32.1 million that was reduced by specific allowance allocations totaling $8.8 million. At December 31, 2019, the total reported fair value of impaired loans of $21.1 million based on collateral valuations utilizing Level 3 valuation inputs had a recorded investment of $27.9 million that was reduced by specific allowance allocations totaling $6.8 million. Other Real Estate Owned Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans. Other real estate owned is recorded at its estimated fair value less estimated selling and closing costs at the date of transfer. Any excess of the related loan balance over the fair value less expected selling costs is charged to the allowance. Subsequent declines in fair value are reported as adjustments to the carrying amount and are recorded against earnings. The fair value of other real estate owned is determined using third-party appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. For this asset class, the actual valuation methods (income, sales comparable or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 10% of the appraised value. At September 30, 2020, the $8.9 million balance of other real estate owned consisted of three foreclosed commercial real estate properties and one foreclosed residential property recorded as a result of obtaining the physical possession of the property. The Company had $8.3 million of other real estate owned at December 31, 2019 consisting primarily of foreclosed commercial real estate properties and one foreclosed residential property recorded as a result of obtaining physical possession of the property. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2020 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | 8. DEPOSITS Time deposits that met or exceeded the Federal Deposit Insurance Corporation insurance limit of $250 thousand at September 30, 2020 and December 31, 2019 were $616.6 million and $485.8 million, respectively. Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 868,945 After one but within two years 216,527 After two but within three years 91,288 After three but within four years 40,462 After four but within five years 34,937 Total $ 1,252,159 The Company had $418.8 million and $263.5 million of brokered deposits as of September 30, 2020 and December 31, 2019, respectively. There were no concentrations of deposits with any one depositor at September 30, 2020 and December 31, 2019. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 9. DERIVATIVE INSTRUMENTS During the second quarter of 2020, the Company entered into a financial derivative. Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrum ent is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company uses forward cash flow hedges in an effort to manage future interest rate exposure on liabilities. The hedging strategy converts the LIBOR-based variable interest rate on liabilities to a fixed interest rate and is used in an effort to protect the Company from floating interest rate variability. A summary of the Company’s cash flow hedge relationship as of September 30, 2020 is as follows: Balance Sheet Location Weighted Average Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value (Dollars in thousands) Liability derivatives Interest rate swaps Other liabilities 4.52 0.64% 3 month LIBOR $ 100,000 $ (1,495 ) The effects of the Company’s cash flow hedge relationship on the statement of comprehensive income during the three and nine months ended September Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Liability derivatives Interest rate swaps $ 64 $ — $ (1,181 ) $ — The cash flow hedge was determined to be effective during the periods presented and as a result qualified for hedge accounting treatment. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or the Company discontinues hedge accounting. The Company expects the hedge at September September Gains/losses totaling $68 thousand, net of tax, were reclassified from accumulated other comprehensive income into net income during the three and nine months ended September 30, 2020. |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | 10. BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At September 30, 2020, the Company had a total borrowing capacity of $1.94 billion, of which $1.51 billion was available and $427.6 million was outstanding. FHLB advances of $140.0 million were outstanding at September 30, 2020, at a weighted average interest rate of 1.19%. Letters of credit were $287.7 million at September 30, 2020, of which $29.8 million will expire during the remaining months of 2020, $204.7 million will expire in 2021 and $53.2 million will expire in 2022. On December 28, 2018, the Company amended its revolving credit agreement to increase the maximum commitment to advance funds to $45.0 million which will reduce annually by $7.5 million beginning in December 2020 and on each December 22nd each year thereafter. The Company is required to repay any outstanding balance in excess of the then-current maximum commitment amount. The revised agreement will mature in December 2025 and is secured by 100% of the capital stock of the Bank. At September 30, 2020, the balance of the revolving credit agreement was $15.6 million. The credit agreement contains certain restrictive covenants. At September 30, 2020, the Company believes it was in compliance with all such debt covenants. The interest rate on the debt is the Prime Rate minus 25 basis points, or 3.00%, at September 30, 2020, and is paid quarterly. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | 11. SUBORDINATED DEBT Junior Subordinated Debentures On January 1, 2015, the Company acquired F&M Bancshares, Inc. and assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III. Each of these trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. The Company assumed the junior subordinated debentures with an aggregate original principal amount of $11.3 million and a current carrying value at September 30, 2020 of $9.6 million. At acquisition, the Company recorded a discount of $2.5 million on the debentures. The difference between the carrying value and contractual balance will be recognized as a yield adjustment over the remaining term for the debentures. At September 30, 2020, the Company had $11.3 million outstanding in junior subordinated debentures issued to the Company’s unconsolidated subsidiary trusts. The junior subordinated debentures are included in tier 1 capital under current regulatory guidelines and interpretations. A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2020 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2020 was 0.23689%. (2) All debentures are currently callable. Subordinated Notes In December 2017, the Bank completed the issuance, through a private placement, of $40.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Bank Notes") due December 15, 2027. The Bank Notes were issued at a price equal to 100% of the principal amount, resulting in net proceeds to the Bank of $39.4 million. The Bank Notes bear a fixed interest rate of 5.25% per annum until (but excluding) December 15, 2022, payable semi-annually in arrears. From December 15, 2022, the Bank Notes will bear a floating rate of interest equal to 3-Month LIBOR + 3.03% until the Bank Notes mature on December 15, 2027, or such earlier redemption date, payable quarterly in arrears. The Bank Notes will be redeemable by the Bank, in whole or in part, on or after December 15, 2022 or, in whole but not in part, upon the occurrence of certain specified tax events, capital events or investment company events. Any redemption will be at a redemption price equal to 100% of the principal amount of Bank Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Bank Notes are not subject to redemption at the option of the holders. In September 2019, the Company completed the issuance of $60.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Company Notes") due October 1, 2029. The Company Notes were issued at a price equal to 100% of the principal amount, resulting in net proceeds to the Company of $58.6 million. The Company used the net proceeds from the offering to support its growth and for general corporate purposes. The Company Notes bear a fixed interest rate of 4.70% per annum until (but excluding) October 1, 2024, payable semi-annually in arrears on April 1 and October 1, commencing on April 1, 2020. Thereafter, from October 1, 2024 through the maturity date, October 1, 2029, or earlier redemption date, the Company Notes will bear interest at a floating rate equal to the then-current three-month LIBOR, plus 313 basis points (3.13%) for each quarterly interest period (subject to certain provisions set forth under “Description of the Notes—Interest Rates and Interest Payment Dates” included in the Prospectus Supplement), payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. Any redemption will be at a redemption price equal to 100% of the principal amount of Company Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Company Notes are not subject to redemption at the option of the holders. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 12. INCOME TAXES The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. For the three and nine months ended September 30, 2020, income tax expense was $3.7 million and $6.6 million, respectively, compared with $3.1 million and $9.9 million, respectively, for the three and nine months ended September 30, 2019. The effective income tax rate for the three and nine months ended September 30, 2020 was 18.5% and 18.2%, respectively, compared to 20.3% and 20.2%, respectively, for the three and nine months ended September 30, 2019. Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any uncertain tax positions and does not have any interest and penalties recorded in the income statement for the three and nine months ended September 30, 2020. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2016. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK BASED COMPENSATION | 13. STOCK BASED COMPENSATION At September 30, 2020, the Company had two stock-based employee compensation plans with awards outstanding. In connection with the acquisition of Post Oak Bancshares, Inc. on October 1, 2018, the Company assumed the Post Oak Bancshares, Inc. Stock Option Plan, under which no additional awards will be issued. During 2019, the Company’s Board of Directors and shareholders approved the 2019 Amended and Restated Stock Awards and Incentive Plan (the “Plan”) covering certain awards of stock-based compensation to key employees and directors of the Company. Under the Plan, the Company is authorized to issue a maximum aggregate of 3,200,000 shares of stock, up to 1,800,000 of which may be issued through incentive stock options. The Company accounts for stock based employee compensation plans using the fair value-based method of accounting. The Company recognized total stock based compensation expense of $863 thousand and $2.6 million for the three and nine months ended September 30, 2020, respectively, and $789 thousand and $2.3 million for the three and nine months ended September 30, 2019, respectively. Stock Options Options to purchase a total of 1,309,231 shares of Company stock have been granted as of September 30, 2020. Options are exercisable for up to 10 years from the date of the grant and, dependent on the terms of the applicable award agreement generally vest four years after the date of grant. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. A summary of the activity in the stock option plans during the nine months ended September 30, 2020 is set forth below: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contractual Term Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2020 616 $ 19.90 4.00 $ 10,904 Options granted — — Options exercised (116 ) 15.59 Options forfeited (3 ) 23.44 Options outstanding, September 30, 2020 497 $ 20.86 3.59 $ 1,249 Options vested and exercisable, September 30, 2020 480 $ 20.27 3.47 $ 1,487 As of September 30, 2020, there was $164 thousand of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 0.72 years. Restricted Stock Awards During the nine months ended September 30, 2020, the Company issued 61,509 shares of restricted stock. The shares of restricted stock generally vest over a period of four years and are considered outstanding at the date of issuance. The Company accounts for shares of restricted stock by recording the fair value of the grant on the award date as compensation expense over the vesting period. A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2020 is as follows: Weighted Average Grant Number of Date Fair Shares Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2020 167 $ 36.23 Share awards granted 62 22.55 Share awards vested (36 ) 33.77 Unvested share awards forfeited or cancelled (9 ) 37.96 Nonvested share awards outstanding, September 30, 2020 184 $ 32.04 As of September 30, 2020, there was $4.9 million of total unrecognized compensation cost related to the restricted stock awards which is expected to be recognized over a weighted-average period of 2.47 years. Performance Share Units (“PSUs”) PSUs are earned subject to certain performance goals being met after the two-year one-year |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 14. OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States, are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve to varying degrees elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2020 December 31, 2019 Fixed Variable Fixed Variable Rate Rate Rate Rate (Dollars in thousands) Commitments to extend credit $ 669,321 $ 509,292 $ 507,411 $ 531,470 Standby letters of credit 10,668 7,595 10,843 4,309 Total $ 679,989 $ 516,887 $ 518,254 $ 535,779 Commitments to extend credit include lines of credit as well as commitments to make new loans. Commitments to make loans are generally made for an approval period of 120 days or fewer. As of September 30, 2020, the funded fixed rate loan commitments had interest rates ranging from 1.35% to 8.25% with a weighted average maturity and rate of 2.69 years and 5.09%, respectively. As of December 31, 2019, the funded fixed rate loan commitments had interest rates ranging from 1.95% to 8.40% with a weighted average maturity and rate of 3.59 years and 5.32%, respectively. Litigation From time to time, the Company is subject to claims and litigation arising in the ordinary course of business. In the opinion of management, the Company is not party to any legal proceedings the resolution of which it believes would have a material adverse effect on the Company’s business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which such claim or litigation is resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect the Company’s reputation, even if resolved in its favor. The Company intends to defend itself vigorously against any future claims or litigation. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2020 | |
Banking And Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | 15. REGULATORY CAPITAL MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can cause regulators to initiate actions that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The final rules implementing Basel Committee on Banking Supervision's capital guideline for U.S. Banks (Basel III Rules) were fully phased in on January 1, 2019 when the capital conservation buffer reached 2.5%. Management believes as of September 30, 2020 and December 31, 2019 the Company and the Bank met all capital adequacy requirements to which they were then subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If less than well capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2020 and December 31, 2019: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2020 Total Capital (to risk weighted assets) $ 637,803 15.56 % $ 328,020 8.00 % $ 430,526 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 480,913 11.73 % 184,511 4.50 % 287,017 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 490,523 11.96 % 246,015 6.00 % 348,521 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 490,523 8.70 % 225,483 4.00 % 225,483 4.00 % N/A N/A As of December 31, 2019 Total Capital (to risk weighted assets) $ 596,684 14.83 % $ 321,775 8.00 % $ 422,330 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 459,447 11.42 % 180,999 4.50 % 281,553 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 468,972 11.66 % 241,331 6.00 % 341,886 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 468,972 10.02 % 187,146 4.00 % 187,146 4.00 % N/A N/A ALLEGIANCE BANK As of September 30, 2020 Total Capital (to risk weighted assets) $ 631,309 15.41 % $ 327,792 8.00 % $ 430,227 10.50 % $ 409,740 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 542,898 13.25 % 184,383 4.50 % 286,818 7.00 % 266,331 6.50 % Tier 1 Capital (to risk weighted assets) 542,898 13.25 % 245,844 6.00 % 348,279 8.50 % 327,792 8.00 % Tier 1 Capital (to average tangible assets) 542,898 9.64 % 225,365 4.00 % 225,365 4.00 % 281,706 5.00 % As of December 31, 2019 Total Capital (to risk weighted assets) $ 578,425 14.39 % $ 321,556 8.00 % $ 422,043 10.50 % $ 401,945 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 509,372 12.67 % 180,875 4.50 % 281,362 7.00 % 261,265 6.50 % Tier 1 Capital (to risk weighted assets) 509,372 12.67 % 241,167 6.00 % 341,654 8.50 % 321,556 8.00 % Tier 1 Capital (to average tangible assets) 509,372 10.89 % 187,018 4.00 % 187,018 4.00 % 233,773 5.00 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | 16. EARNINGS PER COMMON SHARE Diluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Performance share units that vest based on the Company’s performance and service conditions that have not been achieved as of the end of the period are not included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Per Share Per Share Per Share Per Share Amount Amount Amount Amount Amount Amount Amount Amount (Amounts in thousands, except per share data) Net income attributable to shareholders $ 16,170 $ 12,047 $ 29,593 $ 38,973 Basic: Weighted average shares outstanding 20,439 $ 0.79 20,981 $ 0.57 20,421 $ 1.45 21,321 $ 1.83 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 93 275 130 270 Total 20,532 $ 0.79 21,256 $ 0.57 20,551 $ 1.44 21,591 $ 1.81 Stock options for 71,990 and 51,875 shares were not considered in computing diluted earnings per common share as of September 30, 2020 and 2019, respectively, as they were antidilutive. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between the Company and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. |
Impact of COVID-19 | Impact of COVID-19 The coronavirus (COVID-19) pandemic has negatively impacted the global economy, disrupted global supply chains and increased unemployment levels. The resulting temporary closure or limited service capacity of many businesses and the implementation of social distancing and sheltering-in-place policies has and may continue to impact many of the Company’s customers. While the full effects of the pandemic remain unknown, the Company is committed to supporting its customers, employees and communities during this difficult time. The Company has given hardship relief assistance to customers, including the consideration of various loan payment deferral and fee waiver options, and encourages customers to reach out for assistance to support their individual circumstances. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed by the President of the United States. Certain provisions within the CARES Act encourage financial institutions to practice prudent efforts to work with borrowers impacted by COVID-19. Under these provisions, modifications deemed to be COVID-19-related would not be considered a troubled debt restructuring (“TDR”) if the loan was not more than 30 days past due as of December 31, 2019 and the deferral was executed between March 1, 2020 and the earlier of 60 days after the date of termination of the COVID-19 national emergency or December 31, 2020. The banking regulators issued similar guidance, which also clarified that a COVID-19-related modification should not be considered a TDR if the borrower was current on payments at the time the underlying loan modification program was implemented and if the modification is considered to be short-term. For loans subject to the deferral program, each borrower is required to begin making their regularly scheduled loan payment at the end of the deferral period and the deferred amounts were generally moved to the end of the loan. Under these terms, during the nine months ended September 30, 2020, the Company granted 2,007 initial principal and interest deferrals on outstanding loan balances of $1.15 billion at September 30, 2020 with associated accrued interest of $16.1 million. Additionally, upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. Of the initial deferrals, 242 loans with outstanding loan balances of $219.6 million with associated accrued interest of $3.4 million, as of September 30 , 2020 had been granted additional deferrals. These deferrals were generally no more than 90 days in duration . As of September 30, 2020, 286 loans with outstanding loan balances of $ 237.0 million remained on deferral. Additionally, the Bank is a lender for the Small Business Administration's (“SBA”) Paycheck Protection Program ("PPP"), a program under the CARES Act, and other SBA, Federal Reserve or United States Treasury programs that have been created in response to the pandemic and may be a lender for programs created in the future. These programs are new and their effects on the Company’s business are uncertain. As of September 30, 2020, the Company had funded 6,334 PPP loans totaling $710.2 million under the allocation approved by Congress. The Company identified several loan portfolio categories that it considered to be most “at-risk” from the COVID-19 pandemic, such as, oil and gas, hotel, and restaurants and bars with outstanding loan balances, excluding PPP loans, of $74.0 million, $133.8 million and $117.1 million at September 30, 2020, respectively. The Company’s exposure to the oil and gas industry was less than 2.0% of total loans at September 30, 2020 and it does not participate in exploration and production or reserve-based lending; however, the industry is vital to the Houston region and the indirect effects could be significant. The Company considers these “at-risk” portfolios to be the most vulnerable to financial difficulties and risks from business disruptions caused by the pandemic spread mitigation efforts. Due to the uncertainty in the economy and potential impacts from unemployment as a result of COVID-19 and the volatility of crude oil prices, the impact could extend to the Company’s securities portfolio, income taxes, other real estate owned and goodwill and intangibles among other items, although the impact is dependent on future events which are highly uncertain and cannot be predicted at this time. Due to the COVID-19 pandemic, the Company initiated an enhanced customer outreach effort to re-evaluate its loan grades assigned to its commercial loan portfolio during the third quarter of 2020, the results of which are reflected in the financial statement disclosures for this quarter. Effects as a result of the pandemic may continue, potentially resulting in further downgrades and additional loans being identified. In a period of economic contraction, additional loan losses and lost interest income may occur, either in the industries previously noted or others to which the Company has exposure. The Company continues to accrue interest on loans modified under the new accounting standards. To the extent those borrowers are unable to resume normal contractual payments, the Company could experience additional losses of principal and interest. |
Derivative Instruments | Derivative Instruments — In accordance with ASC Topic 815, “Derivatives and Hedging”, derivative instruments are recorded on the accompanying consolidated balance sheet at their respective fair values. The accounting for changes in fair value (i.e., gains or losses) of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship. If the derivative instrument is not designated as a hedge, changes in the fair value of the derivative instrument are recognized in earnings in the period of change. The derivative is carried on the balance sheet in other liabilities. The Company’s derivative contract has been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. The Company prepared written hedge documentation for the derivative that is designated as a hedge. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be effective. For the designated hedging relationship, the Company performs retrospective and prospective effectiveness testing using quantitative methods where required by accounting standards. For the hedging relationship, effectiveness is tested through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The portion of the changes in the fair value of a derivative that is effective and that has been designated and qualifies as a cash flow hedge is initially recorded in accumulated other comprehensive income and will be reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings. The derivative is carried at fair value based on the Company’s pricing model that utilizes observable market inputs and is reflected within Level 2 of the valuation hierarchy. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” (“ASC 310-40”), a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. In response to COVID-19, new GAAP guidance was issued whereby, subject to certain restrictions, loan modifications may not be subject to classification as TDRs. Upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. During the nine months ended September 30, 2020, the Company granted 2,007 initial principal and interest deferrals on outstanding loan balances of $1.15 billion, as of September 30, 2020. Of the initial deferrals, 242 loans with outstanding loan balances of $219.6 million had been granted additional deferrals upon request and after meeting certain conditions, as of September 30, 2020. As of September 30, 2020, 286 loans with outstanding loan balances of $237.0 million remained on deferral. ASU 2018-13, “Fair Value Measurement (Topic 820). – Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in ASU 2018-13 remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures and add disclosure requirements identified as relevant. ASU 2018-13 became effective for the Company on January 1, 2020 and did not have a significant impact on the Company’s financial statements. A SU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” The amendments in this update are effective for the Company’s annual goodwill impairment tests beginning in 2020. The amendments are applied on a prospective basis and the impact from the accounting guidance is highly dependent on changes in financial markets and future events. The Company will monitor indicators of goodwill impairment on a quarterly basis and will record impairment if it is determined to have occurred. ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 became effective for the Company on January 1, 2019. Upon adoption, the Company recognized a cumulative effect reduction in retained earnings totaling $1.7 million. Newly Issued But Not Yet Effective Accounting Standards ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In March 2020, the FASB issued Accounting Standards Update 2020-04, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is implementing a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. The Company is assessing ASU 2020-04 and its impact on the transition away from LIBOR for its loan and other financial instruments. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other things, ASU 2016-13 (“CECL”) requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, CECL amends the accounting for credit losses on available for sale debt securities and purchased financial assets with cred it deterioration. CECL became effective for the Company on January 1, 2020 using the modified retrospective a pproach; however , the CARES Act includes an option for entities to delay the implementation of ASU 2016-13 until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020. The Company expects to adopt CECL as of January 1, 2020 after the deferral period ends. Due to the uncertainty of the impact of COVID-19 and the volatility of crude oil prices , which can be impactful to the Houston market , the Company has delayed its implementation of CECL and has calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASU 2016-13. The Company will continue to perform and enhance CECL model operations parallel with the incurred loss model throughout 2020, or until adoption. ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” to simplify various aspects of the current guidance to promote consistent application of the standard among reporting entities by moving certain exceptions to the general principles. The amendment is effective for fiscal years beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 will be become effective for the Company on January 1, 2021 and is not expected to have a significant impact on the Company’s financial statements. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | As of September 30, 2019, the Company finalized its valuation of all assets and liabilities acquired. A summary of the purchase price allocation is as follows (in thousands): Fair value of consideration paid: Common shares issued (8,402,010 shares) $ 350,364 Stock options issued (299,352) 8,639 Cash in lieu of fractional shares 21 Total consideration paid $ 359,024 Fair value of assets acquired: Cash and cash equivalents $ 230,416 Investment securities 42,779 Loans 1,164,281 Premises and equipment 21,988 Core deposit intangibles 25,128 Other assets 18,076 Total assets acquired $ 1,502,668 Fair value of liabilities assumed: Deposits $ 1,291,310 Other borrowed funds 30,000 Other liabilities 6,070 Total liabilities assumed 1,327,380 Fair value of net assets acquired $ 175,288 Goodwill resulting from acquisition $ 183,736 |
Schedule of Details of Loans Acquired | The following presents details of all loans acquired as of October 1, 2018: Contractual Balance Fair Value Discount (Dollars in thousands) Commercial and industrial $ 221,098 $ 217,204 $ (3,894 ) Real estate: Commercial real estate (including multi-family residential) 450,947 443,512 (7,435 ) Commercial real estate construction and land development 167,386 165,387 (1,999 ) 1-4 family residential (including home equity) 288,304 285,099 (3,205 ) Residential construction 23,812 23,812 — Consumer and other 29,684 29,267 (417 ) Total loans $ 1,181,231 $ 1,164,281 $ (16,950 ) |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Core Deposit Goodwill Intangibles (Dollars in thousands) Balance as of December 31, 2018 $ 223,125 $ 26,587 Acquisition of LoweryBank branch 578 — Measurement period adjustment (61 ) — Amortization — (4,711 ) Balance as of December 31, 2019 223,642 21,876 Amortization — (2,969 ) Balance as of September 30, 2020 $ 223,642 $ 18,907 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2020 is as follows (dollars in thousands): Remaining 2020 $ 953 2021 3,296 2022 3,003 2023 2,323 2024 2,188 Thereafter 7,144 Total $ 18,907 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 26,304 $ 678 $ — $ 26,982 Municipal securities 355,565 29,617 (228 ) 384,954 Agency mortgage-backed pass-through securities 100,078 3,871 (45 ) 103,904 Agency collateralized mortgage obligations 79,765 4,302 (71 ) 83,996 Corporate bonds and other 62,626 1,174 (335 ) 63,465 Total $ 624,338 $ 39,642 $ (679 ) $ 663,301 December 31, 2019 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 29,420 $ 298 $ (243 ) $ 29,475 Municipal securities 84,200 3,453 (116 ) 87,537 Agency mortgage-backed pass-through securities 104,669 1,713 (214 ) 106,168 Agency collateralized mortgage obligations 106,351 1,199 (208 ) 107,342 Corporate bonds and other 41,691 346 (14 ) 42,023 Total $ 366,331 $ 7,009 $ (795 ) $ 372,545 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment securities at September 30, 2020, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair Cost Value (Dollars in thousands) Due in one year or less $ 4,415 $ 4,419 Due after one year through five years 11,508 11,986 Due after five years through ten years 102,340 106,109 Due after ten years 326,232 352,887 Subtotal 444,495 475,401 Agency mortgage-backed pass through and collateralized mortgage obligation securities 179,843 187,900 Total $ 624,338 $ 663,301 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2020 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available for Sale Agency mortgage-backed pass-through securities $ 7,930 $ (45 ) $ — $ — $ 7,930 $ (45 ) Agency collateralized mortgage obligations 15,713 (32 ) 4,356 (39 ) 20,069 (71 ) Municipal securities 31,893 (228 ) — — 31,893 (228 ) Corporate bonds and other 16,571 (335 ) — — 16,571 (335 ) Total $ 72,107 $ (640 ) $ 4,356 $ (39 ) $ 76,463 $ (679 ) December 31, 2019 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in thousands) Available for Sale U.S. government and agency securities $ 22,295 $ (239 ) $ 436 $ (4 ) $ 22,731 $ (243 ) Agency mortgage-backed pass-through securities 20,792 (155 ) 4,369 (59 ) 25,161 (214 ) Agency collateralized mortgage obligations 22,340 (208 ) — — 22,340 (208 ) Municipal securities 9,514 (116 ) — — 9,514 (116 ) Corporate bonds and other 5,492 (14 ) — — 5,492 (14 ) Total $ 80,433 $ (732 ) $ 4,805 $ (63 ) $ 85,238 $ (795 ) |
LOANS AND ALLOWANCE FOR LOAN _2
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Loans And Allowance For Loan Losses [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial and industrial $ 650,634 $ 689,360 Mortgage warehouse — 8,304 Paycheck Protection Program (PPP) 710,234 — Real estate: Commercial real estate (including multi-family residential) 1,971,228 1,873,782 Commercial real estate construction and land development 376,877 410,471 1-4 family residential (including home equity) 716,565 698,957 Residential construction 148,056 192,515 Consumer and other 18,768 41,921 Total loans 4,592,362 3,915,310 Allowance for loan losses (48,698 ) (29,438 ) Loans, net $ 4,543,664 $ 3,885,872 |
Carrying Amount of PCI Loans | The Company has loans that were acquired and for which there was, at acquisition, evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of PCI loans included in the consolidated balance sheet and the related outstanding balance owed at September 30, 2020 and December 31, 2019 are presented in the table below: As of September 30, 2020 As of December 31, 2019 (Dollars in thousands) Outstanding balance $ 15,195 $ 16,589 Less: Discount (1,970 ) (2,414 ) Less: Allowance (1,381 ) (259 ) Recorded investment $ 11,844 $ 13,916 |
Past Due Financing Receivables | An aging analysis of the recorded investment, defined as the unpaid principal balance, in past due loans, segregated by class of loans, is as follows: September 30, 2020 Loans Past Due and Still Accruing 30-89 90 or More Total Past Nonaccrual Current Total Days Days Due Loans Loans Loans Loans (Dollars in thousands) Commercial and industrial $ 3,793 $ — $ 3,793 $ 13,171 $ 633,670 $ 650,634 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — 710,234 710,234 Real estate: Commercial real estate (including multi-family residential) 2,419 — 2,419 15,849 1,952,960 1,971,228 Commercial real estate construction and land development 1,433 — 1,433 3,085 372,359 376,877 1-4 family residential (including home equity) 8,722 — 8,722 4,263 703,580 716,565 Residential construction 3,150 — 3,150 876 144,030 148,056 Consumer and other 392 — 392 684 17,692 18,768 Total loans $ 19,909 $ — $ 19,909 $ 37,928 $ 4,534,525 $ 4,592,362 December 31, 2019 Loans Past Due and Still Accruing 30-89 90 or More Total Past Nonaccrual Current Total Days Days Due Loans Loans Loans Loans (Dollars in thousands) Commercial and industrial $ 3,098 $ — $ 3,098 $ 8,388 $ 677,874 $ 689,360 Mortgage warehouse — — — — 8,304 8,304 Real estate: Commercial real estate (including multi-family residential) 4,421 — 4,421 6,741 1,862,620 1,873,782 Commercial real estate construction and land development 66 — 66 9,050 401,355 410,471 1-4 family residential (including home equity) 1,598 — 1,598 3,294 694,065 698,957 Residential construction 564 — 564 746 191,205 192,515 Consumer and other 254 — 254 152 41,515 41,921 Total loans $ 10,001 $ — $ 10,001 $ 28,371 $ 3,876,938 $ 3,915,310 |
Impaired Financing Receivables | Impaired loans by class of loans are set forth in the following tables. As of September 30, 2020 Unpaid Recorded Principal Related Investment Balance Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,627 $ 5,771 $ — Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 12,835 12,835 — Commercial real estate construction and land development 3,085 3,085 — 1-4 family residential (including home equity) 1,623 1,623 — Residential construction 876 1,053 — Consumer and other 53 53 — Total 24,099 24,420 — With an allowance recorded: Commercial and industrial 12,933 13,328 5,428 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 13,498 13,498 2,801 Commercial real estate construction and land development 3,342 3,342 216 1-4 family residential (including home equity) 1,834 1,834 124 Residential construction — — — Consumer and other 520 520 276 Total 32,127 32,522 8,845 Total: Commercial and industrial 18,560 19,099 5,428 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 26,333 26,333 2,801 Commercial real estate construction and land development 6,427 6,427 216 1-4 family residential (including home equity) 3,457 3,457 124 Residential construction 876 1,053 — Consumer and other 573 573 276 $ 56,226 $ 56,942 $ 8,845 As of December 31, 2019 Unpaid Recorded Principal Related Investment Balance Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,721 $ 6,136 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 19,478 19,558 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 2,000 2,000 — Residential construction 208 208 — Consumer and other 38 38 — Total 27,445 27,940 — With an allowance recorded: Commercial and industrial 7,812 7,286 3,480 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 5,335 5,335 459 Commercial real estate construction and land development 12,142 12,142 2,085 1-4 family residential (including home equity) — — — Residential construction 537 537 66 Consumer and other 26 26 26 PCI 2,039 2,959 659 Total 27,891 28,285 6,775 Total: Commercial and industrial 13,533 13,422 3,480 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 24,813 24,893 459 Commercial real estate construction and land development 12,142 12,142 2,085 1-4 family residential (including home equity) 2,000 2,000 — Residential construction 745 745 66 Consumer and other 64 64 26 PCI 2,039 2,959 659 $ 55,336 $ 56,225 $ 6,775 The following table presents average impaired loans and interest recognized on impaired loans for the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) Commercial and industrial $ 19,109 $ 128 $ 12,268 $ 94 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 26,326 63 18,762 86 Commercial real estate construction and land development 6,440 65 12,005 52 1-4 family residential (including home equity) 3,498 — 1,609 — Residential construction 887 — — — Consumer and other 580 2 91 1 Total $ 56,840 $ 258 $ 44,735 $ 233 Nine Months Ended September 30, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized (Dollars in thousands) Commercial and industrial $ 19,770 $ 292 $ 12,265 $ 261 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 26,513 370 19,453 279 Commercial real estate construction and land development 6,308 162 10,263 140 1-4 family residential (including home equity) 3,540 6 1,641 4 Residential construction 811 — — — Consumer and other 590 3 96 — Total $ 57,532 $ 833 $ 43,718 $ 684 |
Financing Receivable Credit Quality Indicators | Based on the most recent analysis performed, the risk category of loans by class of loan at their recorded investment at September 30, 2020 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 563,375 $ 31,973 $ 23,748 $ 31,395 $ 143 $ 650,634 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) 710,234 — — — — 710,234 Real estate: Commercial real estate (including multi-family residential) 1,638,276 192,413 78,725 61,814 — 1,971,228 Commercial real estate construction and land development 335,865 32,436 3,108 5,468 — 376,877 1-4 family residential (including home equity) 651,583 36,696 18,444 9,842 — 716,565 Residential construction 141,319 3,614 2,247 876 — 148,056 Consumer and other 17,487 297 281 703 — 18,768 Total loans $ 4,058,139 $ 297,429 $ 126,553 $ 110,098 $ 143 $ 4,592,362 The following table presents the risk category of loans by class of loan at December 31, 2019: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 641,696 $ 14,170 $ 9,121 $ 24,295 $ 78 $ 689,360 Mortgage warehouse 8,304 — — — — 8,304 Real estate: Commercial real estate (including multi-family residential) 1,775,789 47,762 9,289 40,942 — 1,873,782 Commercial real estate construction and land development 388,151 9,583 639 12,098 — 410,471 1-4 family residential (including home equity) 669,288 15,798 5,844 8,027 — 698,957 Residential construction 189,209 2,560 — 746 — 192,515 Consumer and other 41,355 6 358 202 — 41,921 Total loans $ 3,713,792 $ 89,879 $ 25,251 $ 86,310 $ 78 $ 3,915,310 |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for loan losses by portfolio type for the three and nine months ended September 30, 2020 and 2019: Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Three Months Ended Balance June 30, 2020 $ 13,367 $ — $ — $ 20,889 $ 3,865 $ 7,542 $ 1,803 $ 176 $ 47,642 Provision for loan losses (126 ) — — 2,453 (379 ) (349 ) (471 ) 219 1,347 Charge-offs (350 ) — — — (71 ) — — — (421 ) Recoveries 122 — — 8 — — — — 130 Net charge-offs (228 ) — — 8 (71 ) — — — (291 ) Balance September 30, 2020 $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Nine Months Ended Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Provision for loan losses 5,256 — — 12,309 1,335 3,556 275 275 23,006 Charge-offs (1,442 ) — — (137 ) (2,341 ) (215 ) — — (4,135 ) Recoveries 381 — — 8 — — — — 389 Net charge-offs (1,061 ) — — (129 ) (2,341 ) (215 ) — — (3,746 ) Balance September 30, 2020 $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Allowance for loan losses: Three Months Ended Balance June 30, 2019 $ 8,255 $ — $ — $ 12,940 $ 2,257 $ 3,376 $ 1,004 $ 108 $ 27,940 Provision for loan losses 1,322 — — 613 (222 ) 608 247 29 2,597 Charge-offs (769 ) — — — (44 ) — — — (813 ) Recoveries 84 — — — — — — — 84 Net charge-offs (685 ) — — — (44 ) — — — (729 ) Balance September 30, 2019 $ 8,892 $ — $ — $ 13,553 $ 1,991 $ 3,984 $ 1,251 $ 137 $ 29,808 Nine Months Ended Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 Provision for loan losses 1,668 — — 1,729 (689 ) 2,037 211 50 5,006 Charge-offs (1,357 ) — — (80 ) (44 ) (295 ) — (8 ) (1,784 ) Recoveries 230 — — 3 — — — 22 255 Net charge-offs (1,127 ) — — (77 ) (44 ) (295 ) — 14 (1,529 ) Balance September 30, 2019 $ 8,892 $ — $ — $ 13,553 $ 1,991 $ 3,984 $ 1,251 $ 137 $ 29,808 The following table presents the balance of the allowance for loan losses by portfolio type based on the i mpairment method as of September 3 0 , 20 20 and December 31, 201 9 : Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: September 30, 2020 Individually evaluated for impairment $ 5,428 $ — $ — $ 2,801 $ 216 $ 124 $ — $ 276 $ 8,845 Collectively evaluated for impairment 7,585 — — 20,549 3,199 7,069 1,332 119 39,853 Total allowance for loan losses $ 13,013 $ — $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 December 31, 2019 Individually evaluated for impairment $ 4,139 $ — $ — $ 459 $ 2,085 $ — $ 66 $ 26 $ 6,775 Collectively evaluated for impairment 4,679 — — 10,711 2,336 3,852 991 94 22,663 Total allowance for loan losses $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of September 30, 2020 and December 31, 2019: Commercial and Mortgage warehouse Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: September 30, 2020 Individually evaluated for impairment $ 18,560 $ — $ — $ 26,333 $ 6,427 $ 3,457 $ 876 $ 573 $ 56,226 Collectively evaluated for impairment 632,074 — 710,234 1,944,895 370,450 713,108 147,180 18,195 4,536,136 Total loans evaluated for impairment $ 650,634 $ — $ 710,234 $ 1,971,228 $ 376,877 $ 716,565 $ 148,056 $ 18,768 $ 4,592,362 December 31, 2019 Individually evaluated for impairment $ 15,572 $ — $ — $ 24,813 $ 12,142 $ 2,000 $ 745 $ 64 $ 55,336 Collectively evaluated for impairment 673,788 8,304 — 1,848,969 398,329 696,957 191,770 41,857 3,859,974 Total loans evaluated for impairment $ 689,360 $ 8,304 $ — $ 1,873,782 $ 410,471 $ 698,957 $ 192,515 $ 41,921 $ 3,915,310 |
Troubled Debt Restructurings on Financing Receivables | The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2020 and 2019: Three Months Ended September 30, 2020 2019 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 5 $ 1,133 $ 1,133 4 $ 1,502 $ 1,502 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 1,983 1,983 — — — Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) 1 1,081 1,081 — — — Residential construction — — — — — — Consumer and other — — — — — — Total 9 $ 4,197 $ 4,197 4 $ 1,502 $ 1,502 Nine Months Ended September 30, 2020 2019 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 16 $ 3,137 $ 3,137 11 $ 2,069 $ 2,069 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 1,983 1,983 1 303 303 Commercial real estate construction and land development 1 830 830 — — — 1-4 family residential (including home equity) 4 2,021 2,021 1 396 396 Residential construction — — — — — — Consumer and other 1 30 30 1 38 38 Total 25 $ 8,001 $ 8,001 14 $ 2,806 $ 2,806 |
Schedule of Principal and Interest Deferrals Associated with Loan Modifications Related to COVID 19 | The following table presents information regarding principal and interest deferrals as of September 30, 2020 associated with loan modifications related to COVID-19: Initial Deferrals Additional Deferrals Remaining Deferrals Outstanding Loan Balance Deferred Loan Balance Percentage of Total Deferrals Deferred Loan Balance Percentage of Total Deferrals Deferred Loan Balance Percentage of Total Deferrals (Dollars in thousands) Commercial and industrial $ 650,634 $ 123,996 10.8 % $ 19,681 9.0 % $ 26,061 11.0 % Mortgage warehouse — — 0.0 % — 0.0 % — 0.0 % Paycheck Protection Program (PPP) 710,234 — 0.0 % — 0.0 % — 0.0 % Real estate: Commercial real estate (including multi-family residential) 1,971,228 791,323 68.7 % 166,509 75.8 % 169,875 71.6 % Commercial real estate construction and land development 376,877 102,537 8.9 % 17,041 7.7 % 22,219 9.4 % 1-4 family residential (including home equity) 716,565 125,063 10.8 % 15,132 6.9 % 17,599 7.4 % Residential construction 148,056 7,654 0.7 % 1,139 0.5 % 1,139 0.5 % Consumer and other 18,768 1,112 0.1 % 140 0.1 % 142 0.1 % Total loans $ 4,592,362 $ 1,151,685 100.0 % $ 219,642 100.0 % $ 237,035 100.0 % |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Supplemental Lease Information | Supplemental lease information at the dates indicated is as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 11,455 $ 11,180 Operating lease liability classified as other liabilities 11,714 11,477 Weighted average lease term, in years 5.74 5.53 Weighted average discount rate 2.85 % 3.19 % |
Summary of Lease Costs | Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Income Statement: Operating lease cost $ 839 $ 734 $ 2,422 $ 2,281 Short-term lease cost 14 132 64 506 Sublease income (18 ) (18 ) (48 ) (54 ) Total operating lease costs $ 835 $ 848 $ 2,438 $ 2,733 |
Maturity Analysis of Lease Liabilities | A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Lease payments due: Within one year $ 2,948 $ 2,867 After one but within two years 2,708 2,608 After two but within three years 1,916 2,204 After three but within four years 1,617 1,596 After four but within five years 913 1,131 After five years 2,571 2,162 Total lease payments 12,673 12,568 Discount on cash flows 959 1,091 Total lease liability $ 11,714 $ 11,477 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 347,148 $ 347,148 $ — $ — $ 347,148 Available for sale securities 663,301 — 663,301 — 663,301 Loans held for investment, net of allowance 4,543,664 — — 4,528,496 4,528,496 Accrued interest receivable 36,996 2 4,504 32,490 36,996 Financial liabilities Deposits $ 4,917,366 $ — $ 4,934,061 $ — $ 4,934,061 Interest rate swap 1,495 — 1,495 — 1,495 Accrued interest payable 3,082 — 3,082 — 3,082 Borrowed funds 155,512 — 157,413 — 157,413 Subordinated debt 108,191 — 108,600 — 108,600 As of December 31, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 346,248 $ 346,248 $ — $ — $ 346,248 Available for sale securities 372,545 — 372,545 — 372,545 Loans held for investment, net of allowance 3,885,872 — — 3,918,210 3,918,210 Accrued interest receivable 15,468 13 1,783 13,672 15,468 Financial liabilities Deposits $ 4,068,101 $ — $ 4,073,031 $ — $ 4,073,031 Accrued interest payable 4,326 — 4,326 — 4,326 Borrowed funds 75,503 — 83,302 — 83,302 Subordinated debt 107,799 — 109,607 — 109,607 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: September 30, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,982 $ — $ 26,982 Municipal securities — 384,954 — 384,954 Agency mortgage-backed pass-through securities — 103,904 — 103,904 Agency collateralized mortgage obligations — 83,996 — 83,996 Corporate bonds and other — 63,465 — 63,465 Total available for sale securities $ — $ 663,301 $ — $ 663,301 Financial liabilities Interest rate swap $ — $ 1,495 $ — $ 1,495 December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 29,475 $ — $ 29,475 Municipal securities — 87,537 — 87,537 Agency mortgage-backed pass-through securities — 106,168 — 106,168 Agency collateralized mortgage obligations — 107,342 — 107,342 Corporate bonds and other — 42,023 — 42,023 Total available for sale securities $ — $ 372,545 $ — $ 372,545 |
Fair Value Measurements, Nonrecurring | The following table presents certain assets measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of September 30, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 7,505 Commercial real estate (including multi- family residential) — — 10,697 Commercial real estate construction and land development — — 3,126 1-4 family residential (including home equity) — — 1,710 Residential construction — — — Consumer and other — — 244 Other real estate owned — — 8,876 $ — $ — $ 32,158 As of December 31, 2019 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 4,332 Commercial real estate (including multi- family residential) — — 4,876 Commercial real estate construction and land development — — 10,057 Residential construction — — 471 PCI — — 1,380 Other real estate owned — — 8,337 $ — $ — $ 29,453 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Deposit Liabilities [Abstract] | |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 868,945 After one but within two years 216,527 After two but within three years 91,288 After three but within four years 40,462 After four but within five years 34,937 Total $ 1,252,159 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Cash Flow Hedge Relationships | A summary of the Company’s cash flow hedge relationship as of September 30, 2020 is as follows: Balance Sheet Location Weighted Average Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value (Dollars in thousands) Liability derivatives Interest rate swaps Other liabilities 4.52 0.64% 3 month LIBOR $ 100,000 $ (1,495 ) |
Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income | The effects of the Company’s cash flow hedge relationship on the statement of comprehensive income during the three and nine months ended September Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Liability derivatives Interest rate swaps $ 64 $ — $ (1,181 ) $ — |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2020 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2020 was 0.23689%. (2) All debentures are currently callable. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the activity in the stock option plans during the nine months ended September 30, 2020 is set forth below: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contractual Term Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2020 616 $ 19.90 4.00 $ 10,904 Options granted — — Options exercised (116 ) 15.59 Options forfeited (3 ) 23.44 Options outstanding, September 30, 2020 497 $ 20.86 3.59 $ 1,249 Options vested and exercisable, September 30, 2020 480 $ 20.27 3.47 $ 1,487 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2020 is as follows: Weighted Average Grant Number of Date Fair Shares Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2020 167 $ 36.23 Share awards granted 62 22.55 Share awards vested (36 ) 33.77 Unvested share awards forfeited or cancelled (9 ) 37.96 Nonvested share awards outstanding, September 30, 2020 184 $ 32.04 |
OFF-BALANCE SHEET ARRANGEMENT_2
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2020 December 31, 2019 Fixed Variable Fixed Variable Rate Rate Rate Rate (Dollars in thousands) Commitments to extend credit $ 669,321 $ 509,292 $ 507,411 $ 531,470 Standby letters of credit 10,668 7,595 10,843 4,309 Total $ 679,989 $ 516,887 $ 518,254 $ 535,779 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking And Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2020 and December 31, 2019: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2020 Total Capital (to risk weighted assets) $ 637,803 15.56 % $ 328,020 8.00 % $ 430,526 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 480,913 11.73 % 184,511 4.50 % 287,017 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 490,523 11.96 % 246,015 6.00 % 348,521 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 490,523 8.70 % 225,483 4.00 % 225,483 4.00 % N/A N/A As of December 31, 2019 Total Capital (to risk weighted assets) $ 596,684 14.83 % $ 321,775 8.00 % $ 422,330 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 459,447 11.42 % 180,999 4.50 % 281,553 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 468,972 11.66 % 241,331 6.00 % 341,886 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 468,972 10.02 % 187,146 4.00 % 187,146 4.00 % N/A N/A ALLEGIANCE BANK As of September 30, 2020 Total Capital (to risk weighted assets) $ 631,309 15.41 % $ 327,792 8.00 % $ 430,227 10.50 % $ 409,740 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 542,898 13.25 % 184,383 4.50 % 286,818 7.00 % 266,331 6.50 % Tier 1 Capital (to risk weighted assets) 542,898 13.25 % 245,844 6.00 % 348,279 8.50 % 327,792 8.00 % Tier 1 Capital (to average tangible assets) 542,898 9.64 % 225,365 4.00 % 225,365 4.00 % 281,706 5.00 % As of December 31, 2019 Total Capital (to risk weighted assets) $ 578,425 14.39 % $ 321,556 8.00 % $ 422,043 10.50 % $ 401,945 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 509,372 12.67 % 180,875 4.50 % 281,362 7.00 % 261,265 6.50 % Tier 1 Capital (to risk weighted assets) 509,372 12.67 % 241,167 6.00 % 341,654 8.50 % 321,556 8.00 % Tier 1 Capital (to average tangible assets) 509,372 10.89 % 187,018 4.00 % 187,018 4.00 % 233,773 5.00 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Performance share units that vest based on the Company’s performance and service conditions that have not been achieved as of the end of the period are not included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Per Share Per Share Per Share Per Share Amount Amount Amount Amount Amount Amount Amount Amount (Amounts in thousands, except per share data) Net income attributable to shareholders $ 16,170 $ 12,047 $ 29,593 $ 38,973 Basic: Weighted average shares outstanding 20,439 $ 0.79 20,981 $ 0.57 20,421 $ 1.45 21,321 $ 1.83 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 93 275 130 270 Total 20,532 $ 0.79 21,256 $ 0.57 20,551 $ 1.44 21,591 $ 1.81 |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020USD ($)officeLoan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | office | 28 | ||
Accrued interest receivable | $ 36,996 | $ 15,468 | |
Number of approved loans | Loan | 6,334 | ||
Amount of loan under approved allocation | $ 710,200 | ||
ASU 2017-08 | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Cumulative effect of adopting new accounting principle in period of adoption | $ 1,715 | ||
ASU 2017-08 | Retained Earnings | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Cumulative effect of adopting new accounting principle in period of adoption | 1,700 | $ 1,715 | |
Additional Deferrals | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Outstanding loan balances deferrals due to CARES Act | 219,642 | ||
Remaining Deferrals | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Outstanding loan balances deferrals due to CARES Act | 237,035 | ||
COVID-19 | Oil and Gas | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Outstanding loan balances, excluding PPP loans deferrals due to CARES Act | $ 74,000 | ||
COVID-19 | Oil and Gas | Maximum | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Percentage of allocated loan portfolio categories | 2.00% | ||
COVID-19 | Hotel and Restaurants | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Outstanding loan balances, excluding PPP loans deferrals due to CARES Act | $ 133,800 | ||
COVID-19 | Bars | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Outstanding loan balances, excluding PPP loans deferrals due to CARES Act | $ 117,100 | ||
COVID-19 | First Payment Deferrals | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of loans deferral due to CARES Act | Loan | 2,007 | ||
Outstanding loan balances deferrals due to CARES Act | $ 1,150,000 | ||
Accrued interest receivable | $ 16,100 | ||
COVID-19 | Additional Deferrals | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of loans deferral due to CARES Act | Loan | 242 | ||
Outstanding loan balances deferrals due to CARES Act | $ 219,600 | ||
Accrued interest receivable | $ 3,400 | ||
COVID-19 | Remaining Deferrals | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of loans deferral due to CARES Act | Loan | 286 | ||
Outstanding loan balances deferrals due to CARES Act | $ 237,000 | ||
Houston | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of banks in which entity operates | office | 27 | ||
Beaumont | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of banks in which entity operates | office | 1 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 01, 2019USD ($) | Oct. 01, 2018USD ($)branch$ / sharesshares | Sep. 30, 2020$ / shares | Sep. 30, 2019USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 28, 2018USD ($)$ / shares |
Business Acquisition [Line Items] | |||||||
Options exercised | $ / shares | $ 15.59 | ||||||
Post Oak Bancshares, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Oct. 1, 2018 | ||||||
Number of branches | branch | 13 | ||||||
Number of shares issued in acquisition | shares | 8,402,010 | 8,402,010 | |||||
Cash paid for acquisition | $ 21 | ||||||
Number of shares per common share or option to purchase common shares | 0.7017 | ||||||
Option issued in acquisition to purchase common shares | shares | 299,352 | 299,352 | |||||
Options exercised | $ / shares | $ 12.83 | ||||||
Business acquisition, share price | $ / shares | $ 41.70 | ||||||
Business acquisition, equity transaction value | $ 359,000 | ||||||
Goodwill, acquired during period | $ 183,700 | ||||||
Pre-tax acquisition and merger-related expenses | $ 1,300 | $ 1,700 | |||||
Business acquisition, loans | $ 1,164,281 | ||||||
Post Oak Bancshares, Inc. | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles, useful life | 10 years | ||||||
Post Oak Bancshares, Inc. | Houston, Texas | |||||||
Business Acquisition [Line Items] | |||||||
Number of branches | branch | 12 | ||||||
Post Oak Bancshares, Inc. | Beaumont, TX | |||||||
Business Acquisition [Line Items] | |||||||
Number of branches | branch | 1 | ||||||
Lowery Bank | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Feb. 1, 2019 | ||||||
Goodwill, acquired during period | $ 578 | $ 578 | |||||
Business acquisition, customer deposits balances | 16,000 | ||||||
Business acquisition, loans | 45,000 | ||||||
Lowery Bank | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisition | $ 32,900 |
ACQUISITIONS - Allocation of th
ACQUISITIONS - Allocation of the Purchase Price to Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||||
Goodwill resulting from acquisition | $ 223,642 | $ 223,642 | $ 223,125 | |
Post Oak Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Stock options issued (299,352) | $ 8,639 | |||
Cash in lieu of fractional shares | 21 | |||
Total consideration paid | 359,024 | |||
Cash and cash equivalents | 230,416 | |||
Investment securities | 42,779 | |||
Loans | 1,164,281 | |||
Premises and equipment | 21,988 | |||
Core deposit intangibles | 25,128 | |||
Other assets | 18,076 | |||
Total assets acquired | 1,502,668 | |||
Deposits | 1,291,310 | |||
Other borrowed funds | 30,000 | |||
Other liabilities | 6,070 | |||
Total liabilities assumed | 1,327,380 | |||
Fair value of net assets acquired | 175,288 | |||
Goodwill resulting from acquisition | 183,736 | |||
Post Oak Bancshares, Inc. | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Common shares issued (8,402,010 shares) | $ 350,364 |
ACQUISITIONS - Allocation of _2
ACQUISITIONS - Allocation of the Purchase Price to Assets and Liabilities - Narrative (Details) - Post Oak Bancshares, Inc. - shares | Oct. 01, 2018 | Sep. 30, 2019 |
Business Acquisition [Line Items] | ||
Number of shares issued in acquisition | 8,402,010 | 8,402,010 |
Option issued in acquisition to purchase common shares | 299,352 | 299,352 |
ACQUISITIONS - Details of Loans
ACQUISITIONS - Details of Loans Acquired (Details) $ in Thousands | Oct. 01, 2018USD ($) |
Business Acquisition [Line Items] | |
Discount | $ (16,950) |
Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 1,181,231 |
Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 1,164,281 |
Commercial and industrial | |
Business Acquisition [Line Items] | |
Discount | (3,894) |
Commercial and industrial | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 221,098 |
Commercial and industrial | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 217,204 |
Real estate | Commercial real estate (including multi-family residential) | |
Business Acquisition [Line Items] | |
Discount | (7,435) |
Real estate | Commercial real estate (including multi-family residential) | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 450,947 |
Real estate | Commercial real estate (including multi-family residential) | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 443,512 |
Real estate | Commercial real estate construction and land development | |
Business Acquisition [Line Items] | |
Discount | (1,999) |
Real estate | Commercial real estate construction and land development | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 167,386 |
Real estate | Commercial real estate construction and land development | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 165,387 |
Real estate | 1-4 family residential (including home equity) | |
Business Acquisition [Line Items] | |
Discount | (3,205) |
Real estate | 1-4 family residential (including home equity) | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 288,304 |
Real estate | 1-4 family residential (including home equity) | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 285,099 |
Real estate | Residential construction | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 23,812 |
Real estate | Residential construction | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 23,812 |
Consumer and other | |
Business Acquisition [Line Items] | |
Discount | (417) |
Consumer and other | Contractual Balance | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 29,684 |
Consumer and other | Fair Value | |
Business Acquisition [Line Items] | |
Acquired loans receivable | $ 29,267 |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) $ in Thousands | Feb. 01, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Goodwill | ||||||
Balance, beginning | $ 223,642 | $ 223,125 | $ 223,125 | |||
Measurement period adjustment | (61) | |||||
Balance, ending | $ 223,642 | 223,642 | 223,642 | |||
Core Deposit Intangible Assets | ||||||
Balance, beginning | 21,876 | |||||
Amortization | (989) | $ (1,178) | (2,969) | (3,534) | ||
Balance, ending | 18,907 | 18,907 | 21,876 | |||
Core Deposit Intangible Assets | ||||||
Core Deposit Intangible Assets | ||||||
Balance, beginning | 21,876 | $ 26,587 | 26,587 | |||
Amortization | (2,969) | (4,711) | ||||
Balance, ending | $ 18,907 | $ 18,907 | 21,876 | |||
Lowery Bank | ||||||
Goodwill | ||||||
Goodwill, acquired during period | $ 578 | $ 578 |
GOODWILL AND CORE DEPOSIT INT_4
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)ReportingUnit | Dec. 31, 2019USD ($) | |
Finite Lived Intangible Assets [Line Items] | |||
Measurement period adjustment | $ (61,000) | ||
Number of reporting units | ReportingUnit | 1 | ||
Post Oak Bancshares, Inc. | |||
Finite Lived Intangible Assets [Line Items] | |||
Measurement period adjustment | $ (61,000) | ||
Goodwill impairment | $ 0 |
GOODWILL AND CORE DEPOSIT INT_5
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remaining 2020 | $ 953 | |
2021 | 3,296 | |
2022 | 3,003 | |
2023 | 2,323 | |
2024 | 2,188 | |
Thereafter | 7,144 | |
Total | $ 18,907 | $ 21,876 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 624,338 | $ 366,331 |
Gross Unrealized Gains | 39,642 | 7,009 |
Gross Unrealized Losses | (679) | (795) |
Fair Value | 663,301 | 372,545 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 26,304 | 29,420 |
Gross Unrealized Gains | 678 | 298 |
Gross Unrealized Losses | (243) | |
Fair Value | 26,982 | 29,475 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 355,565 | 84,200 |
Gross Unrealized Gains | 29,617 | 3,453 |
Gross Unrealized Losses | (228) | (116) |
Fair Value | 384,954 | 87,537 |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 100,078 | 104,669 |
Gross Unrealized Gains | 3,871 | 1,713 |
Gross Unrealized Losses | (45) | (214) |
Fair Value | 103,904 | 106,168 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 79,765 | 106,351 |
Gross Unrealized Gains | 4,302 | 1,199 |
Gross Unrealized Losses | (71) | (208) |
Fair Value | 83,996 | 107,342 |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,626 | 41,691 |
Gross Unrealized Gains | 1,174 | 346 |
Gross Unrealized Losses | (335) | (14) |
Fair Value | $ 63,465 | $ 42,023 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 4,415 | |
Due after one year through five years | 11,508 | |
Due after five years through ten years | 102,340 | |
Due after ten years | 326,232 | |
Subtotal | 444,495 | |
Agency mortgage-backed pass through and collateralized mortgage obligation securities | 179,843 | |
Amortized Cost | 624,338 | $ 366,331 |
Fair Value | ||
Due in one year or less | 4,419 | |
Due after one year through five years | 11,986 | |
Due after five years through ten years | 106,109 | |
Due after ten years | 352,887 | |
Subtotal | 475,401 | |
Agency mortgage-backed pass through and collateralized mortgage obligation securities | 187,900 | |
Total | $ 663,301 | $ 372,545 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | $ 72,107 | $ 80,433 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (640) | (732) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 4,356 | 4,805 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (39) | (63) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 76,463 | 85,238 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (679) | (795) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 22,295 | |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (239) | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 436 | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (4) | |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 22,731 | |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (243) | |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 7,930 | 20,792 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (45) | (155) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 4,369 | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (59) | |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 7,930 | 25,161 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (45) | (214) |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 15,713 | 22,340 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (32) | (208) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 4,356 | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (39) | |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 20,069 | 22,340 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (71) | (208) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 31,893 | 9,514 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (228) | (116) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 31,893 | 9,514 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (228) | (116) |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 16,571 | 5,492 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (335) | (14) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 16,571 | 5,492 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (335) | $ (14) |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |||||
Gross realized gains | $ 1,400,000 | $ 391,000 | $ 1,400,000 | ||
Gross realized losses | 576,000 | 104,000 | 576,000 | ||
Net realized gain (loss) | 846,000 | 287,000 | 846,000 | ||
Proceeds from sales of available for sale securities | $ 0 | $ 149,400,000 | 30,800,000 | $ 149,400,000 | |
Calls of available for sale securities | 7,100,000 | ||||
Security owned and pledged as collateral | $ 20,700,000 | $ 20,700,000 | $ 24,300,000 |
LOANS AND ALLOWANCE FOR LOAN _3
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | $ 4,592,362 | $ 3,915,310 | ||||
Allowance for loan losses | (48,698) | $ (47,642) | (29,438) | $ (29,808) | $ (27,940) | $ (26,331) |
Loans, net | 4,543,664 | 3,885,872 | ||||
Commercial and industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 650,634 | 689,360 | ||||
Allowance for loan losses | (13,013) | (13,367) | (8,818) | (8,892) | (8,255) | (8,351) |
Mortgage warehouse | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 0 | 8,304 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Paycheck Protection Program (PPP) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 710,234 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 1,971,228 | 1,873,782 | ||||
Real estate | Commercial real estate construction and land development | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 376,877 | 410,471 | ||||
Real estate | 1-4 family residential (including home equity) | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 716,565 | 698,957 | ||||
Real estate | Residential construction | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 148,056 | 192,515 | ||||
Consumer and other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for investment | 18,768 | 41,921 | ||||
Allowance for loan losses | $ (395) | $ (176) | $ (120) | $ (137) | $ (108) | $ (73) |
LOANS AND ALLOWANCE FOR LOAN _4
LOANS AND ALLOWANCE FOR LOAN LOSSES - Carrying Amount of PCI Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment | $ 4,592,362 | $ 3,915,310 |
PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding balance | 15,195 | 16,589 |
Less: Discount | (1,970) | (2,414) |
Less: Allowance | (1,381) | (259) |
Recorded investment | $ 11,844 | $ 13,916 |
LOANS AND ALLOWANCE FOR LOAN _5
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020USD ($)Loan | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Loancontract | Sep. 30, 2019USD ($)contract | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 48,698 | $ 29,808 | $ 48,698 | $ 29,808 | $ 47,642 | $ 29,438 | $ 27,940 | $ 26,331 |
Recorded investment | 32,100 | 32,100 | 28,900 | |||||
Change in method of calculating impairment | 6,800 | 6,800 | 3,200 | |||||
Troubled debt restructuring, write-down | 632 | 251 | ||||||
Troubled debt restructuring, addition | 22 | 4,700 | ||||||
Modification of outstanding recorded investment | 4,197 | 1,502 | $ 8,001 | $ 2,806 | ||||
Number of defaults on loan that were modified as troubled debt restructuring during the preceding 12 months | contract | 1 | 7 | ||||||
Accrued interest receivable | 36,996 | $ 36,996 | $ 15,468 | |||||
Additional Deferrals | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Outstanding loan balances deferrals due to CARES Act | $ 219,642 | $ 219,642 | ||||||
COVID-19 | First Payment Deferrals | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Number of loans deferral due to CARES Act | Loan | 2,007 | 2,007 | ||||||
Outstanding loan balances deferrals due to CARES Act | $ 1,150,000 | $ 1,150,000 | ||||||
Accrued interest receivable | $ 16,100 | $ 16,100 | ||||||
COVID-19 | Additional Deferrals | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Number of loans deferral due to CARES Act | Loan | 242 | 242 | ||||||
Outstanding loan balances deferrals due to CARES Act | $ 219,600 | $ 219,600 | ||||||
Accrued interest receivable | 3,400 | 3,400 | ||||||
Troubled debt added during quarter | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Recorded investment | 6,700 | $ 2,700 | 6,700 | $ 2,700 | ||||
PCI Loans | ||||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||||
Allowance for loan losses | $ 1,400 | $ 1,400 |
LOANS AND ALLOWANCE FOR LOAN _6
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 19,909 | $ 10,001 |
Nonaccrual Loans | 37,928 | 28,371 |
Current Loans | 4,534,525 | 3,876,938 |
Total loans evaluated for impairment | 4,592,362 | 3,915,310 |
Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 19,909 | 10,001 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,793 | 3,098 |
Nonaccrual Loans | 13,171 | 8,388 |
Current Loans | 633,670 | 677,874 |
Total loans evaluated for impairment | 650,634 | 689,360 |
Commercial and industrial | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,793 | 3,098 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current Loans | 8,304 | |
Total loans evaluated for impairment | 0 | 8,304 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current Loans | 710,234 | |
Total loans evaluated for impairment | 710,234 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,419 | 4,421 |
Nonaccrual Loans | 15,849 | 6,741 |
Current Loans | 1,952,960 | 1,862,620 |
Total loans evaluated for impairment | 1,971,228 | 1,873,782 |
Real estate | Commercial real estate (including multi-family residential) | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,419 | 4,421 |
Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,433 | 66 |
Nonaccrual Loans | 3,085 | 9,050 |
Current Loans | 372,359 | 401,355 |
Total loans evaluated for impairment | 376,877 | 410,471 |
Real estate | Commercial real estate construction and land development | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,433 | 66 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 8,722 | 1,598 |
Nonaccrual Loans | 4,263 | 3,294 |
Current Loans | 703,580 | 694,065 |
Total loans evaluated for impairment | 716,565 | 698,957 |
Real estate | 1-4 family residential (including home equity) | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 8,722 | 1,598 |
Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,150 | 564 |
Nonaccrual Loans | 876 | 746 |
Current Loans | 144,030 | 191,205 |
Total loans evaluated for impairment | 148,056 | 192,515 |
Real estate | Residential construction | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,150 | 564 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 392 | 254 |
Nonaccrual Loans | 684 | 152 |
Current Loans | 17,692 | 41,515 |
Total loans evaluated for impairment | 18,768 | 41,921 |
Consumer and other | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 392 | $ 254 |
LOANS AND ALLOWANCE FOR LOAN _7
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | $ 24,099 | $ 27,445 |
Unpaid principal balance with no related allowance recorded | 24,420 | 27,940 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 32,127 | 27,891 |
Impaired financing receivable, with related allowance, unpaid principal balance | 32,522 | 28,285 |
Related Allowance | 8,845 | 6,775 |
Total: | ||
Recorded Investment | 56,226 | 55,336 |
Unpaid Principal Balance | 56,942 | 56,225 |
Related Allowance | 8,845 | 6,775 |
PCI Loans | ||
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 2,039 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 2,959 | |
Related Allowance | 659 | |
Total: | ||
Recorded Investment | 2,039 | |
Unpaid Principal Balance | 2,959 | |
Related Allowance | 659 | |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 5,627 | 5,721 |
Unpaid principal balance with no related allowance recorded | 5,771 | 6,136 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 12,933 | 7,812 |
Impaired financing receivable, with related allowance, unpaid principal balance | 13,328 | 7,286 |
Related Allowance | 5,428 | 3,480 |
Total: | ||
Recorded Investment | 18,560 | 13,533 |
Unpaid Principal Balance | 19,099 | 13,422 |
Related Allowance | 5,428 | 3,480 |
Mortgage warehouse | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 0 | 0 |
Unpaid principal balance with no related allowance recorded | 0 | 0 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Paycheck Protection Program (PPP) | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 0 | |
Unpaid principal balance with no related allowance recorded | 0 | |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | |
Related Allowance | 0 | |
Total: | ||
Recorded Investment | 0 | |
Unpaid Principal Balance | 0 | |
Related Allowance | 0 | |
Real estate | Commercial real estate (including multi-family residential) | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 12,835 | 19,478 |
Unpaid principal balance with no related allowance recorded | 12,835 | 19,558 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 13,498 | 5,335 |
Impaired financing receivable, with related allowance, unpaid principal balance | 13,498 | 5,335 |
Related Allowance | 2,801 | 459 |
Total: | ||
Recorded Investment | 26,333 | 24,813 |
Unpaid Principal Balance | 26,333 | 24,893 |
Related Allowance | 2,801 | 459 |
Real estate | Commercial real estate construction and land development | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 3,085 | 0 |
Unpaid principal balance with no related allowance recorded | 3,085 | 0 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 3,342 | 12,142 |
Impaired financing receivable, with related allowance, unpaid principal balance | 3,342 | 12,142 |
Related Allowance | 216 | 2,085 |
Total: | ||
Recorded Investment | 6,427 | 12,142 |
Unpaid Principal Balance | 6,427 | 12,142 |
Related Allowance | 216 | 2,085 |
Real estate | 1-4 family residential (including home equity) | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 1,623 | 2,000 |
Unpaid principal balance with no related allowance recorded | 1,623 | 2,000 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 1,834 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 1,834 | 0 |
Related Allowance | 124 | 0 |
Total: | ||
Recorded Investment | 3,457 | 2,000 |
Unpaid Principal Balance | 3,457 | 2,000 |
Related Allowance | 124 | 0 |
Real estate | Residential construction | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 876 | 208 |
Unpaid principal balance with no related allowance recorded | 1,053 | 208 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 537 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 537 |
Related Allowance | 0 | 66 |
Total: | ||
Recorded Investment | 876 | 745 |
Unpaid Principal Balance | 1,053 | 745 |
Related Allowance | 0 | 66 |
Consumer and other | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 53 | 38 |
Unpaid principal balance with no related allowance recorded | 53 | 38 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 520 | 26 |
Impaired financing receivable, with related allowance, unpaid principal balance | 520 | 26 |
Related Allowance | 276 | 26 |
Total: | ||
Recorded Investment | 573 | 64 |
Unpaid Principal Balance | 573 | 64 |
Related Allowance | $ 276 | $ 26 |
LOANS AND ALLOWANCE FOR LOAN _8
LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Impaired Loans and Interest Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | $ 56,840 | $ 44,735 | $ 57,532 | $ 43,718 |
Interest Income Recognized | 258 | 233 | 833 | 684 |
Commercial and industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 19,109 | 12,268 | 19,770 | 12,265 |
Interest Income Recognized | 128 | 94 | 292 | 261 |
Mortgage warehouse | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 0 | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Paycheck Protection Program (PPP) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 0 | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 26,326 | 18,762 | 26,513 | 19,453 |
Interest Income Recognized | 63 | 86 | 370 | 279 |
Real estate | Commercial real estate construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 6,440 | 12,005 | 6,308 | 10,263 |
Interest Income Recognized | 65 | 52 | 162 | 140 |
Real estate | 1-4 family residential (including home equity) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 3,498 | 1,609 | 3,540 | 1,641 |
Interest Income Recognized | 0 | 0 | 6 | 4 |
Real estate | Residential construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 887 | 0 | 811 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Consumer and other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Average Recorded Investment | 580 | 91 | 590 | 96 |
Interest Income Recognized | $ 2 | $ 1 | $ 3 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN _9
LOANS AND ALLOWANCE FOR LOAN LOSSES - Risk Category of Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 4,592,362 | $ 3,915,310 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 4,058,139 | 3,713,792 |
Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 297,429 | 89,879 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 126,553 | 25,251 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 110,098 | 86,310 |
Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 143 | 78 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 650,634 | 689,360 |
Commercial and industrial | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 563,375 | 641,696 |
Commercial and industrial | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 31,973 | 14,170 |
Commercial and industrial | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 23,748 | 9,121 |
Commercial and industrial | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 31,395 | 24,295 |
Commercial and industrial | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 143 | 78 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 8,304 |
Mortgage warehouse | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 8,304 |
Mortgage warehouse | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 710,234 | 0 |
Paycheck Protection Program (PPP) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 710,234 | |
Paycheck Protection Program (PPP) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | |
Paycheck Protection Program (PPP) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | |
Paycheck Protection Program (PPP) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | |
Paycheck Protection Program (PPP) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 1,971,228 | 1,873,782 |
Real estate | Commercial real estate (including multi-family residential) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 1,638,276 | 1,775,789 |
Real estate | Commercial real estate (including multi-family residential) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 192,413 | 47,762 |
Real estate | Commercial real estate (including multi-family residential) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 78,725 | 9,289 |
Real estate | Commercial real estate (including multi-family residential) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 61,814 | 40,942 |
Real estate | Commercial real estate (including multi-family residential) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 376,877 | 410,471 |
Real estate | Commercial real estate construction and land development | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 335,865 | 388,151 |
Real estate | Commercial real estate construction and land development | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 32,436 | 9,583 |
Real estate | Commercial real estate construction and land development | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 3,108 | 639 |
Real estate | Commercial real estate construction and land development | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 5,468 | 12,098 |
Real estate | Commercial real estate construction and land development | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 716,565 | 698,957 |
Real estate | 1-4 family residential (including home equity) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 651,583 | 669,288 |
Real estate | 1-4 family residential (including home equity) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 36,696 | 15,798 |
Real estate | 1-4 family residential (including home equity) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 18,444 | 5,844 |
Real estate | 1-4 family residential (including home equity) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 9,842 | 8,027 |
Real estate | 1-4 family residential (including home equity) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 148,056 | 192,515 |
Real estate | Residential construction | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 141,319 | 189,209 |
Real estate | Residential construction | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 3,614 | 2,560 |
Real estate | Residential construction | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 2,247 | 0 |
Real estate | Residential construction | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 876 | 746 |
Real estate | Residential construction | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 18,768 | 41,921 |
Consumer and other | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 17,487 | 41,355 |
Consumer and other | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 297 | 6 |
Consumer and other | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 281 | 358 |
Consumer and other | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 703 | 202 |
Consumer and other | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN_10
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for loan losses: | ||||||
Balance, beginning of period | $ 47,642 | $ 27,940 | $ 29,438 | $ 26,331 | ||
Provision for loan losses | 1,347 | 2,597 | 23,006 | 5,006 | ||
Charge-offs | (421) | (813) | (4,135) | (1,784) | ||
Recoveries | 130 | 84 | 389 | 255 | ||
Net charge-offs | (291) | (729) | (3,746) | (1,529) | ||
Balance, end of period | 48,698 | 29,808 | 48,698 | 29,808 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | $ 8,845 | $ 6,775 | ||||
Collectively evaluated for impairment | 39,853 | 22,663 | ||||
Total allowance for loan losses | 47,642 | 29,808 | 29,438 | 26,331 | 48,698 | 29,438 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 56,226 | 55,336 | ||||
Collectively evaluated for impairment | 4,536,136 | 3,859,974 | ||||
Total loans evaluated for impairment | 4,592,362 | 3,915,310 | ||||
Commercial and industrial | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 13,367 | 8,255 | 8,818 | 8,351 | ||
Provision for loan losses | (126) | 1,322 | 5,256 | 1,668 | ||
Charge-offs | (350) | (769) | (1,442) | (1,357) | ||
Recoveries | 122 | 84 | 381 | 230 | ||
Net charge-offs | (228) | (685) | (1,061) | (1,127) | ||
Balance, end of period | 13,013 | 8,892 | 13,013 | 8,892 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 5,428 | 4,139 | ||||
Collectively evaluated for impairment | 7,585 | 4,679 | ||||
Total allowance for loan losses | 13,013 | 8,892 | 8,818 | 8,351 | 13,013 | 8,818 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 18,560 | 15,572 | ||||
Collectively evaluated for impairment | 632,074 | 673,788 | ||||
Total loans evaluated for impairment | 650,634 | 689,360 | ||||
Mortgage warehouse | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | 0 | 0 | ||
Balance, end of period | 0 | 0 | 0 | 0 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 8,304 | ||||
Total loans evaluated for impairment | 0 | 8,304 | ||||
Paycheck Protection Program (PPP) | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | 0 | 0 | ||
Balance, end of period | 0 | 0 | 0 | 0 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 710,234 | 0 | ||||
Total loans evaluated for impairment | 710,234 | 0 | ||||
Commercial Real Estate Portfolio Segment | Commercial real estate (including multi-family residential) | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 20,889 | 12,940 | 11,170 | 11,901 | ||
Provision for loan losses | 2,453 | 613 | 12,309 | 1,729 | ||
Charge-offs | 0 | 0 | (137) | (80) | ||
Recoveries | 8 | 0 | 8 | 3 | ||
Net charge-offs | 8 | 0 | (129) | (77) | ||
Balance, end of period | 23,350 | 13,553 | 23,350 | 13,553 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 2,801 | 459 | ||||
Collectively evaluated for impairment | 20,549 | 10,711 | ||||
Total allowance for loan losses | 23,350 | 13,553 | 11,170 | 11,901 | 23,350 | 11,170 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 26,333 | 24,813 | ||||
Collectively evaluated for impairment | 1,944,895 | 1,848,969 | ||||
Total loans evaluated for impairment | 1,971,228 | 1,873,782 | ||||
Commercial Real Estate Portfolio Segment | Commercial real estate construction and land development | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 3,865 | 2,257 | 4,421 | 2,724 | ||
Provision for loan losses | (379) | (222) | 1,335 | (689) | ||
Charge-offs | (71) | (44) | (2,341) | (44) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | (71) | (44) | (2,341) | (44) | ||
Balance, end of period | 3,415 | 1,991 | 3,415 | 1,991 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 216 | 2,085 | ||||
Collectively evaluated for impairment | 3,199 | 2,336 | ||||
Total allowance for loan losses | 3,415 | 1,991 | 4,421 | 2,724 | 3,415 | 4,421 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 6,427 | 12,142 | ||||
Collectively evaluated for impairment | 370,450 | 398,329 | ||||
Total loans evaluated for impairment | 376,877 | 410,471 | ||||
Commercial Real Estate Portfolio Segment | 1-4 family residential (including home equity) | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 7,542 | 3,376 | 3,852 | 2,242 | ||
Provision for loan losses | (349) | 608 | 3,556 | 2,037 | ||
Charge-offs | 0 | 0 | (215) | (295) | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | (215) | (295) | ||
Balance, end of period | 7,193 | 3,984 | 7,193 | 3,984 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 124 | 0 | ||||
Collectively evaluated for impairment | 7,069 | 3,852 | ||||
Total allowance for loan losses | 7,193 | 3,984 | 3,852 | 2,242 | 7,193 | 3,852 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 3,457 | 2,000 | ||||
Collectively evaluated for impairment | 713,108 | 696,957 | ||||
Total loans evaluated for impairment | 716,565 | 698,957 | ||||
Commercial Real Estate Portfolio Segment | Residential construction | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 1,803 | 1,004 | 1,057 | 1,040 | ||
Provision for loan losses | (471) | 247 | 275 | 211 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | 0 | 0 | ||
Balance, end of period | 1,332 | 1,251 | 1,332 | 1,251 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 66 | ||||
Collectively evaluated for impairment | 1,332 | 991 | ||||
Total allowance for loan losses | 1,332 | 1,251 | 1,057 | 1,040 | 1,332 | 1,057 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 876 | 745 | ||||
Collectively evaluated for impairment | 147,180 | 191,770 | ||||
Total loans evaluated for impairment | 148,056 | 192,515 | ||||
Consumer and other | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 176 | 108 | 120 | 73 | ||
Provision for loan losses | 219 | 29 | 275 | 50 | ||
Charge-offs | 0 | 0 | 0 | (8) | ||
Recoveries | 0 | 0 | 0 | 22 | ||
Net charge-offs | 0 | 0 | 0 | 14 | ||
Balance, end of period | 395 | 137 | 395 | 137 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 276 | 26 | ||||
Collectively evaluated for impairment | 119 | 94 | ||||
Total allowance for loan losses | $ 395 | $ 137 | $ 120 | $ 73 | 395 | 120 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 573 | 64 | ||||
Collectively evaluated for impairment | 18,195 | 41,857 | ||||
Total loans evaluated for impairment | $ 18,768 | $ 41,921 |
LOANS AND ALLOWANCE FOR LOAN_11
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 9 | 4 | 25 | 14 |
Pre-Modification of Outstanding Recorded Investment | $ 4,197 | $ 1,502 | $ 8,001 | $ 2,806 |
Post Modification of Outstanding Recorded Investment | $ 4,197 | $ 1,502 | $ 8,001 | $ 2,806 |
Paycheck Protection Program (PPP) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 5 | 4 | 16 | 11 |
Pre-Modification of Outstanding Recorded Investment | $ 1,133 | $ 1,502 | $ 3,137 | $ 2,069 |
Post Modification of Outstanding Recorded Investment | $ 1,133 | $ 1,502 | $ 3,137 | $ 2,069 |
Mortgage warehouse | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 3 | 0 | 3 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 1,983 | $ 0 | $ 1,983 | $ 303 |
Post Modification of Outstanding Recorded Investment | $ 1,983 | $ 0 | $ 1,983 | $ 303 |
Real estate | Commercial real estate construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 830 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 830 | $ 0 |
Real estate | 1-4 family residential (including home equity) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 4 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 1,081 | $ 0 | $ 2,021 | $ 396 |
Post Modification of Outstanding Recorded Investment | $ 1,081 | $ 0 | $ 2,021 | $ 396 |
Real estate | Residential construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer and other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 1 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 30 | $ 38 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 30 | $ 38 |
LOANS AND ALLOWANCE FOR LOAN_12
LOANS AND ALLOWANCE FOR LOAN LOSSES - Schedule of Principal and Interest Deferrals Associated with Loan Modifications Related to COVID 19 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 4,592,362 | $ 3,915,310 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 650,634 | 689,360 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 0 | 8,304 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 710,234 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 1,971,228 | 1,873,782 |
Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 376,877 | 410,471 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 716,565 | 698,957 |
Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 148,056 | 192,515 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 18,768 | $ 41,921 |
Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,151,685 | |
Percentage of Total Deferrals | 100.00% | |
Initial Deferrals | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 123,996 | |
Percentage of Total Deferrals | 10.80% | |
Initial Deferrals | Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Initial Deferrals | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Initial Deferrals | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 791,323 | |
Percentage of Total Deferrals | 68.70% | |
Initial Deferrals | Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 102,537 | |
Percentage of Total Deferrals | 8.90% | |
Initial Deferrals | Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 125,063 | |
Percentage of Total Deferrals | 10.80% | |
Initial Deferrals | Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 7,654 | |
Percentage of Total Deferrals | 0.70% | |
Initial Deferrals | Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,112 | |
Percentage of Total Deferrals | 0.10% | |
Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 219,642 | |
Percentage of Total Deferrals | 100.00% | |
Additional Deferrals | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 19,681 | |
Percentage of Total Deferrals | 9.00% | |
Additional Deferrals | Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Additional Deferrals | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Additional Deferrals | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 166,509 | |
Percentage of Total Deferrals | 75.80% | |
Additional Deferrals | Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 17,041 | |
Percentage of Total Deferrals | 7.70% | |
Additional Deferrals | Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 15,132 | |
Percentage of Total Deferrals | 6.90% | |
Additional Deferrals | Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,139 | |
Percentage of Total Deferrals | 0.50% | |
Additional Deferrals | Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 140 | |
Percentage of Total Deferrals | 0.10% | |
Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 237,035 | |
Percentage of Total Deferrals | 100.00% | |
Remaining Deferrals | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 26,061 | |
Percentage of Total Deferrals | 11.00% | |
Remaining Deferrals | Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Remaining Deferrals | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Remaining Deferrals | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 169,875 | |
Percentage of Total Deferrals | 71.60% | |
Remaining Deferrals | Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 22,219 | |
Percentage of Total Deferrals | 9.40% | |
Remaining Deferrals | Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 17,599 | |
Percentage of Total Deferrals | 7.40% | |
Remaining Deferrals | Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,139 | |
Percentage of Total Deferrals | 0.50% | |
Remaining Deferrals | Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 142 | |
Percentage of Total Deferrals | 0.10% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($)Property | Sep. 30, 2020USD ($)BranchLocationandOfficeSpace | Sep. 30, 2019USD ($)Property | |
Lessee Lease Description [Line Items] | ||||
Number of leased branch locations and office space along with equipment | BranchLocationandOfficeSpace | 14 | |||
Operating lease, existence of option to extend | true | |||
Operating lease, cost | $ 839 | $ 734 | $ 2,422 | $ 2,281 |
Allegiance Bank | ||||
Lessee Lease Description [Line Items] | ||||
Number of leased properties | Property | 2 | 2 | ||
Operating lease, cost | $ 10,700 | |||
Maximum | ||||
Lessee Lease Description [Line Items] | ||||
Lessee, operating Lease, term of contract | 12 months | 12 months | ||
Operating lease renewal term | 5 years | 5 years | ||
Minimum | ||||
Lessee Lease Description [Line Items] | ||||
Operating lease renewal term | 1 year | 1 year |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Balance Sheet: | ||
Operating lease right of use asset classified as premises and equipment | $ 11,455 | $ 11,180 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Operating lease liability classified as other liabilities | $ 11,714 | $ 11,477 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | us-gaap:OtherLiabilities |
Weighted average lease term, in years | 5 years 8 months 26 days | 5 years 6 months 10 days |
Weighted average discount rate | 2.85% | 3.19% |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement: | ||||
Operating lease cost | $ 839 | $ 734 | $ 2,422 | $ 2,281 |
Short-term lease cost | 14 | 132 | 64 | 506 |
Sublease income | (18) | (18) | (48) | (54) |
Total operating lease costs | $ 835 | $ 848 | $ 2,438 | $ 2,733 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Lease payments due: | ||
Within one year | $ 2,948 | $ 2,867 |
After one but within two years | 2,708 | 2,608 |
After two but within three years | 1,916 | 2,204 |
After three but within four years | 1,617 | 1,596 |
After four but within five years | 913 | 1,131 |
After five years | 2,571 | 2,162 |
Total lease payments | 12,673 | 12,568 |
Discount on cash flows | 959 | 1,091 |
Total lease liability | $ 11,714 | $ 11,477 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 663,301 | $ 372,545 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 347,148 | 346,248 |
Available for sale securities | 663,301 | 372,545 |
Loans held for investment, net of allowance | 4,543,664 | 3,885,872 |
Accrued interest receivable | 36,996 | 15,468 |
Deposits | 4,917,366 | 4,068,101 |
Interest rate swap | 1,495 | |
Accrued interest payable | 3,082 | 4,326 |
Borrowed funds | 155,512 | 75,503 |
Subordinated debt | 108,191 | 107,799 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 347,148 | 346,248 |
Available for sale securities | 663,301 | 372,545 |
Loans held for investment, net of allowance | 4,528,496 | 3,918,210 |
Accrued interest receivable | 36,996 | 15,468 |
Deposits | 4,934,061 | 4,073,031 |
Interest rate swap | 1,495 | |
Accrued interest payable | 3,082 | 4,326 |
Borrowed funds | 157,413 | 83,302 |
Subordinated debt | 108,600 | 109,607 |
Estimated Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 347,148 | 346,248 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 2 | 13 |
Deposits | 0 | 0 |
Interest rate swap | 0 | |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 663,301 | 372,545 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 4,504 | 1,783 |
Deposits | 4,934,061 | 4,073,031 |
Interest rate swap | 1,495 | |
Accrued interest payable | 3,082 | 4,326 |
Borrowed funds | 157,413 | 83,302 |
Subordinated debt | 108,600 | 109,607 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 4,528,496 | 3,918,210 |
Accrued interest receivable | 32,490 | 13,672 |
Deposits | 0 | 0 |
Interest rate swap | 0 | |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | $ 0 | $ 0 |
FAIR VALUE - Fair Values for As
FAIR VALUE - Fair Values for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 663,301,000 | $ 372,545,000 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,982,000 | 29,475,000 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 384,954,000 | 87,537,000 |
Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 103,904,000 | 106,168,000 |
Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 83,996,000 | 107,342,000 |
Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 63,465,000 | 42,023,000 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 663,301,000 | 372,545,000 |
Financial liabilities | 0 | |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 663,301,000 | 372,545,000 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,982,000 | 29,475,000 |
Recurring Basis | U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 26,982,000 | 29,475,000 |
Recurring Basis | U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 384,954,000 | 87,537,000 |
Recurring Basis | Municipal securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 384,954,000 | 87,537,000 |
Recurring Basis | Municipal securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 103,904,000 | 106,168,000 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 103,904,000 | 106,168,000 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 83,996,000 | 107,342,000 |
Recurring Basis | Agency collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 83,996,000 | 107,342,000 |
Recurring Basis | Agency collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 63,465,000 | 42,023,000 |
Recurring Basis | Corporate bonds and other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Corporate bonds and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 63,465,000 | 42,023,000 |
Recurring Basis | Corporate bonds and other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | $ 0 |
Recurring Basis | Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 1,495,000 | |
Recurring Basis | Interest rate swap | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 0 | |
Recurring Basis | Interest rate swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 1,495,000 | |
Recurring Basis | Interest rate swap | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | 9 Months Ended | ||
Sep. 30, 2020USD ($)Property | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Property | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total reported fair value of impaired loans based on collateral valuations | $ 56,226,000 | $ 55,336,000 | |
Impaired financing receivable, with related allowance, recorded investment | 32,127,000 | 27,891,000 | |
Related allowance | 8,845,000 | 6,775,000 | |
Real estate acquired through foreclosure | $ 8,876,000 | $ 8,337,000 | |
Foreclosed Commercial Real Estate Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of properties | Property | 3 | ||
Foreclosed Residential Rental Property | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of properties | Property | 1 | 1 | |
Impaired Loans with Specific Allocation of Allowance | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of estimated selling and closing costs of collateral | 5.00% | ||
Impaired Loans with Specific Allocation of Allowance | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of estimated selling and closing costs of collateral | 10.00% | ||
Other Real Estate Owned | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of estimated selling and closing costs of collateral | 5.00% | ||
Other Real Estate Owned | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Percentage of estimated selling and closing costs of collateral | 10.00% | ||
Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total reported fair value of impaired loans based on collateral valuations | $ 23,300,000 | $ 21,100,000 | |
Impaired financing receivable, with related allowance, recorded investment | 32,100,000 | 27,900,000 | |
Related allowance | 8,800,000 | 6,800,000 | |
Real estate acquired through foreclosure | 8,900,000 | 8,300,000 | |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial liabilities | $ 0 | ||
Transfers of assets between Level 1 and Level 2 | 0 | $ 0 | |
Transfers of assets between Level 2 and Level 1 | 0 | 0 | |
Transfers of assets into Level 3 | 0 | 0 | |
Transfers of assets out of Level 3 | 0 | 0 | |
Transfers of liabilities between Level 1 and Level 2 | 0 | 0 | |
Transfers of liabilities between Level 2 and Level 3 | 0 | 0 | |
Transfers of liabilities into Level 3 | 0 | 0 | |
Transfers of liabilities out of Level 3 | $ 0 | $ 0 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 0 | $ 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 1 | PCI Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 1 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 1 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 1 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 1 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 1 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 2 | PCI Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 2 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 2 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 2 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 2 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Level 2 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 8,876 | 8,337 |
Assets and liabilities are measured at fair value, nonrecurring basis | 32,158 | 29,453 |
Level 3 | PCI Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 1,380 | |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 7,505 | 4,332 |
Level 3 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 10,697 | 4,876 |
Level 3 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 244 | |
Level 3 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 3,126 | 10,057 |
Level 3 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 1,710 | |
Level 3 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | $ 0 | $ 471 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deposit Liabilities [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 250 | |
Time deposits 250,000 or more | 616,600 | $ 485,800 |
Brokered deposits | $ 418,800 | $ 263,500 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deposit Liabilities [Abstract] | ||
Within one year | $ 868,945 | |
After one but within two years | 216,527 | |
After two but within three years | 91,288 | |
After three but within four years | 40,462 | |
After four but within five years | 34,937 | |
Total | $ 1,252,159 | $ 1,190,583 |
DERIVATIVE INSTRUMENTS - Summar
DERIVATIVE INSTRUMENTS - Summary of Cash Flow Hedge Relationships (Detail) - Interest rate swaps - Other Liabilities - Cash Flow Hedging - Designated as Hedging Instrument | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Derivatives Fair Value [Line Items] | |
Weighted Average Maturity (In Years) | 4 years 6 months 7 days |
Weighted Average Pay Rate | 0.64% |
Receive Rate | 3 month LIBOR |
Notional Amount | $ 100,000,000 |
Estimated Fair Value | $ (1,495,000) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 64 | $ (1,181) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 64 | $ (1,181) |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($) | |
Derivative Instruments Gain Loss [Line Items] | ||
Unrealized loss reclassified as interest expense during the next twelve months | $ (86) | $ (86) |
Gains/losses, net of tax reclassified from accumulated other comprehensive income into net income | $ 68 | $ 68 |
BORROWINGS AND BORROWING CAPA_2
BORROWINGS AND BORROWING CAPACITY - Narrative (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 28, 2018 | |
Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Outstanding amount | $ 15,600,000 | |
Amended Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity, month and year | 2025-12 | |
Percentage of debt secured by capital stock | 100.00% | |
Borrowing Agreement | Prime Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Interest rate, effective percentage | 3.00% | |
Credit Facility With Another Financial Institution | Amended Revolving Credit Agreement | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 45,000,000 | |
Annual reduction in borrowing capacity | $ 7,500,000 | |
Federal Home Loan Bank of Dallas | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 1,940,000,000 | |
Remaining borrowing capacity | 1,510,000,000 | |
Outstanding amount | 427,600,000 | |
Letters of credit, outstanding amount | 287,700,000 | |
Federal Home Loan Bank of Dallas | Expire in Remaining Month of 2020 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 29,800,000 | |
Federal Home Loan Bank of Dallas | Expire in 2022 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 53,200,000 | |
Federal Home Loan Bank of Dallas | Expire in 2021 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 204,700,000 | |
Federal Home Loan Bank of Dallas | Short-term Debt | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances | $ 140,000,000 | |
Federal Home Loan Bank of Dallas | Short-term Debt | Weighted Average | ||
Debt Instrument [Line Items] | ||
Federal Home Loan Bank, advances, interest rate | 1.19% |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2017 | Sep. 30, 2020 | Jan. 01, 2015 | |
Subordinated Borrowing [Line Items] | ||||
Junior subordinated debt owed to trusts | $ 11,341 | |||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, face amount | $ 60,000 | $ 40,000 | ||
Issuance price, percentage | 100.00% | 100.00% | ||
Proceeds from issuance of debt | $ 58,600 | $ 39,400 | ||
Stated percentage | 4.70% | 5.25% | ||
Redemption price, percentage | 100.00% | 100.00% | ||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | 3 month LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Basis spread on variable rate | 3.13% | 3.03% | ||
F&M Bancshares. Inc. | Junior Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Debentures, period over which company may defer interest payments | 5 years | |||
Debt instrument, face amount | $ 11,300 | |||
Debt instrument, carrying value | $ 9,600 | |||
Debt instrument, unamortized discount | $ 2,500 |
SUBORDINATED DEBT - Summary of
SUBORDINATED DEBT - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) | 9 Months Ended | |
Sep. 30, 2020USD ($) | ||
Subordinated Borrowing [Line Items] | ||
Junior Subordinated Debt Owed to Trusts | $ 11,341,000 | |
Junior Subordinated Debt | 3 month LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Interest rate, period end | 0.23689% | |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | ||
Subordinated Borrowing [Line Items] | ||
Issuance Date | Nov. 13, 2003 | |
Trust Preferred Securities Outstanding | $ 7,500,000 | |
Junior Subordinated Debt Owed to Trusts | $ 7,732,000 | |
Maturity Date | Nov. 8, 2033 | [1] |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | 3 month LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Basis spread on variable rate | 3.00% | [2] |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | ||
Subordinated Borrowing [Line Items] | ||
Issuance Date | Jun. 30, 2005 | |
Trust Preferred Securities Outstanding | $ 3,500,000 | |
Junior Subordinated Debt Owed to Trusts | $ 3,609,000 | |
Maturity Date | Jul. 7, 2035 | [1] |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | 3 month LIBOR | ||
Subordinated Borrowing [Line Items] | ||
Basis spread on variable rate | 1.80% | [2] |
[1] | All debentures are currently callable. | |
[2] | The 3-month LIBOR in effect as of September 30, 2020 was 0.23689%. |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 3,677,000 | $ 3,073,000 | $ 6,574,000 | $ 9,851,000 |
Effective income tax rate reconciliation, percent | 18.50% | 20.30% | 18.20% | 20.20% |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 3,200,000 | 3,200,000 | |||
Share-based compensation expense | $ 863 | $ 789 | $ 2,600 | $ 2,300 | |
Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 1,800,000 | 1,800,000 | |||
Option, cumulative options granted since inception (in shares) | 1,309,231 | 1,309,231 | |||
Expiration period | 10 years | ||||
Award vesting period | 4 years | ||||
Unrecognized compensation cost | $ 164 | $ 164 | |||
Weighted average period over which unrecognized compensation | 8 months 19 days | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 4 years | ||||
Unrecognized compensation cost | 4,900 | $ 4,900 | |||
Weighted average period over which unrecognized compensation | 2 years 5 months 19 days | ||||
Equity instruments other than options, grants in period (in shares) | 61,509 | ||||
Share awards granted (in shares) | 62,000 | ||||
Performance Share Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period | 2 years | ||||
Weighted average period over which unrecognized compensation | 2 years 1 month 6 days | ||||
Service period | 1 year | ||||
Share awards granted (in shares) | 46,243 | 34,628 | |||
Unrecognized compensation expense | $ 1,400 | $ 1,400 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plans Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 616 | |
Options exercised (in shares) | (116) | |
Options forfeited (in shares) | (3) | |
Options outstanding, ending balance (in shares) | 497 | 616 |
Number of options vested and exercisable (in shares) | 480 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ 19.90 | |
Options exercised (in dollars per share) | 15.59 | |
Options forfeited (in dollars per share) | 23.44 | |
Options outstanding, ending balance (in dollars per share) | 20.86 | $ 19.90 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 20.27 | |
Weighted Average Remaining Contractual Term, Options outstanding | 3 years 7 months 2 days | 4 years |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 3 years 5 months 19 days | |
Aggregate Intrinsic Value, Options outstanding | $ 1,249 | $ 10,904 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 1,487 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Number of Shares | |
Nonvested share awards outstanding, beginning balance (in shares) | shares | 167 |
Share awards granted (in shares) | shares | 62 |
Share awards vested (in shares) | shares | (36) |
Unvested share awards forfeited or cancelled (in shares) | shares | (9) |
Nonvested share awards outstanding, ending balance (in shares) | shares | 184 |
Weighted Average Grant Date Fair Value | |
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 36.23 |
Share awards granted (in dollars per share) | $ / shares | 22.55 |
Share awards vested (in dollars per share) | $ / shares | 33.77 |
Unvested share awards forfeited or cancelled (in dollars per share) | $ / shares | 37.96 |
Nonvested share awards outstanding, ending balance | $ / shares | $ 32.04 |
OFF-BALANCE SHEET ARRANGEMENT_3
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 679,989 | $ 518,254 |
Variable Rate | 516,887 | 535,779 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 669,321 | 507,411 |
Variable Rate | 509,292 | 531,470 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 10,668 | 10,843 |
Variable Rate | $ 7,595 | $ 4,309 |
OFF-BALANCE SHEET ARRANGEMENT_4
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to make loans, period | 120 days | |
Off-balance-sheet fixed rate loan commitments, weighted average maturity | 2 years 8 months 8 days | 3 years 7 months 2 days |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 1.35% | 1.95% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 8.25% | 8.40% |
Weighted Average | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 5.09% | 5.32% |
REGULATORY CAPITAL MATTERS - Na
REGULATORY CAPITAL MATTERS - Narrative (Details) | Dec. 31, 2018 |
Banking And Thrift [Abstract] | |
Capital conservation buffer | 2.50% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Total Capital | ||
Capital | $ 637,803 | $ 596,684 |
Capital to Risk Weighted Assets | 15.56% | 14.83% |
Capital Required for Capital Adequacy | $ 328,020 | $ 321,775 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 430,526 | $ 422,330 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 10.50% | 10.50% |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 480,913 | $ 459,447 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 11.73% | 11.42% |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 184,511 | $ 180,999 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Plus Common Equity Tier 1 Risk Based Capital | $ 287,017 | $ 281,553 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 7.00% | 7.00% |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 490,523 | $ 468,972 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 11.96% | 11.66% |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 246,015 | $ 241,331 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Plus Tier 1 Risk Based Capital | $ 348,521 | $ 341,886 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 8.50% | 8.50% |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 490,523 | $ 468,972 |
Tier 1 Leverage Capital to Average Assets | 8.70% | 10.02% |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 225,483 | $ 187,146 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier 1 Leverage Capital | $ 225,483 | $ 187,146 |
Plus Tier 1 Leverage Capital to Average Assets | 4.00% | 4.00% |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 631,309 | $ 578,425 |
Capital to Risk Weighted Assets | 15.41% | 14.39% |
Capital Required for Capital Adequacy | $ 327,792 | $ 321,556 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 430,227 | $ 422,043 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 10.50% | 10.50% |
Capital Required to be Well Capitalized | $ 409,740 | $ 401,945 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 542,898 | $ 509,372 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 13.25% | 12.67% |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 184,383 | $ 180,875 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Plus Common Equity Tier 1 Risk Based Capital | $ 286,818 | $ 281,362 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 7.00% | 7.00% |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized | $ 266,331 | $ 261,265 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 542,898 | $ 509,372 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 13.25% | 12.67% |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 245,844 | $ 241,167 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Plus Tier 1 Risk Based Capital | $ 348,279 | $ 341,654 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 8.50% | 8.50% |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 327,792 | $ 321,556 |
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 542,898 | $ 509,372 |
Tier 1 Leverage Capital to Average Assets | 9.64% | 10.89% |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 225,365 | $ 187,018 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier 1 Leverage Capital | $ 225,365 | $ 187,018 |
Plus Tier 1 Leverage Capital to Average Assets | 4.00% | 4.00% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 281,706 | $ 233,773 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
EARNINGS PER COMMON SHARE - Sum
EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to shareholders | $ 16,170 | $ 12,047 | $ 29,593 | $ 38,973 |
Basic: | ||||
Weighted average shares outstanding (in shares) | 20,439 | 20,981 | 20,421 | 21,321 |
Weighted average shares outstanding (in dollars per share) | $ 0.79 | $ 0.57 | $ 1.45 | $ 1.83 |
Diluted: | ||||
Dilutive effect of stock option exercises (in shares) | 93 | 275 | 130 | 270 |
Total (in shares) | 20,532 | 21,256 | 20,551 | 21,591 |
Total (in dollars per share) | $ 0.79 | $ 0.57 | $ 1.44 | $ 1.81 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 71,990 | 51,875 |