Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 08, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Allegiance Bancshares, Inc. | ||
Entity Central Index Key | 0001642081 | ||
Trading Symbol | ABTX | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 480.2 | ||
Entity Common Stock Shares Outstanding | 20,166,968 | ||
Title of 12(b) Security | Common Stock, par value $1.00 per share | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 001-37585 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Tax Identification Number | 26-3564100 | ||
Entity Address, Address Line One | 8847 West Sam Houston Parkway, N. | ||
Entity Address, Address Line Two | Suite 200 | ||
Entity Address, City or Town | Houston | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 77040 | ||
City Area Code | 281 | ||
Local Phone Number | 894-3200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Portions of the Proxy Statement relating to the 2021 Annual Meeting of Shareholders of Allegiance Bancshares, Inc., which will be filed within 120 days after December 31, 2020, are incorporated by reference into Part III, Items 10-14 of this Annual Report on Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 122,897 | $ 213,347 |
Interest-bearing deposits at other financial institutions | 299,869 | 132,901 |
Total cash and cash equivalents | 422,766 | 346,248 |
Available for sale securities, at fair value | 772,890 | 372,545 |
Loans held for investment | 4,491,764 | 3,915,310 |
Less: allowance for credit losses on loans | (53,173) | (29,438) |
Loans, net | 4,438,591 | 3,885,872 |
Accrued interest receivable | 40,053 | 15,468 |
Premises and equipment, net | 70,685 | 66,790 |
Other real estate owned | 9,196 | 8,337 |
Federal Home Loan Bank stock | 7,756 | 6,242 |
Bank owned life insurance | 27,686 | 27,104 |
Goodwill | 223,642 | 223,642 |
Core deposit intangibles, net | 17,954 | 21,876 |
Other assets | 18,909 | 18,530 |
TOTAL ASSETS | 6,050,128 | 4,992,654 |
Deposits: | ||
Noninterest-bearing | 1,704,567 | 1,252,232 |
Interest-bearing | ||
Demand | 437,328 | 367,278 |
Money market and savings | 1,499,938 | 1,258,008 |
Certificates and other time | 1,346,649 | 1,190,583 |
Total interest-bearing deposits | 3,283,915 | 2,815,869 |
Total deposits | 4,988,482 | 4,068,101 |
Accrued interest payable | 2,701 | 4,326 |
Borrowed funds | 155,515 | 75,503 |
Subordinated debt | 108,322 | 107,799 |
Other liabilities | 36,439 | 27,060 |
Total liabilities | 5,291,459 | 4,282,789 |
COMMITMENTS AND CONTINGENCIES (See Note 17) | ||
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; 20,208,323 shares issued and outstanding at December 31, 2020 and 20,523,816 shares issued and outstanding at December 31, 2019 | 20,208 | 20,524 |
Capital surplus | 508,794 | 521,066 |
Retained earnings | 195,236 | 163,375 |
Accumulated other comprehensive income | 34,431 | 4,900 |
Total shareholders’ equity | 758,669 | 709,865 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 6,050,128 | $ 4,992,654 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Dec. 31, 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) | 20,208,323 | 20,523,816 |
Common stock, shares outstanding (in shares) | 20,208,323 | 20,523,816 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
INTEREST INCOME: | |||
Loans, including fees | $ 225,959 | $ 221,363 | $ 148,223 |
Securities: | |||
Taxable | 8,227 | 6,975 | 2,725 |
Tax-exempt | 7,311 | 2,934 | 5,802 |
Deposits in other financial institutions | 265 | 1,635 | 1,473 |
Total interest income | 241,762 | 232,907 | 158,223 |
INTEREST EXPENSE: | |||
Demand, money market and savings deposits | 9,371 | 18,307 | 6,478 |
Certificates and other time deposits | 21,675 | 26,656 | 15,478 |
Borrowed funds | 2,183 | 4,675 | 4,788 |
Subordinated debt | 5,850 | 3,732 | 2,900 |
Total interest expense | 39,079 | 53,370 | 29,644 |
NET INTEREST INCOME | 202,683 | 179,537 | 128,579 |
Provision for credit losses | 27,374 | 5,939 | 4,248 |
Net interest income after provision for credit losses | 175,309 | 173,598 | 124,331 |
NONINTEREST INCOME: | |||
Gain on sale of securities | 287 | 1,459 | |
(Loss) gain on sale of other real estate and other repossessed assets | (258) | 26 | (428) |
Bank owned life insurance income | 582 | 624 | 579 |
Rebate from correspondent bank | 876 | 3,580 | 2,609 |
Other | 4,735 | 5,604 | 3,329 |
Total noninterest income | 8,156 | 13,423 | 7,713 |
NONINTEREST EXPENSE: | |||
Salaries and employee benefits | 80,152 | 77,593 | 56,704 |
Net occupancy and equipment | 7,969 | 8,179 | 5,845 |
Depreciation | 3,716 | 3,192 | 2,132 |
Data processing and software amortization | 7,992 | 7,464 | 5,120 |
Professional fees | 3,128 | 2,333 | 2,009 |
Regulatory assessments and FDIC insurance | 2,926 | 1,705 | 2,309 |
Core deposit intangibles amortization | 3,922 | 4,711 | 1,815 |
Communications | 1,387 | 1,839 | 1,185 |
Advertising | 1,565 | 2,367 | 1,725 |
Other real estate expense | 5,162 | 614 | 313 |
Acquisition and merger-related expenses | 1,326 | 1,661 | |
Other | 9,575 | 9,312 | 5,969 |
Total noninterest expense | 127,494 | 120,635 | 86,787 |
INCOME BEFORE INCOME TAXES | 55,971 | 66,386 | 45,257 |
Provision for income taxes | 10,437 | 13,427 | 7,948 |
NET INCOME | $ 45,534 | $ 52,959 | $ 37,309 |
EARNINGS PER SHARE: | |||
Basic | $ 2.23 | $ 2.50 | $ 2.41 |
Diluted | 2.22 | $ 2.47 | $ 2.37 |
DIVIDENDS PER SHARE | $ 0.40 | ||
Deposit Account, Nonsufficient Funds Fee | |||
NONINTEREST INCOME: | |||
Revenue from contract with customer | $ 404 | $ 658 | $ 755 |
Deposit Account, Service Charge Fee | |||
NONINTEREST INCOME: | |||
Revenue from contract with customer | $ 1,530 | $ 1,472 | $ 869 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 45,534 | $ 52,959 | $ 37,309 |
Unrealized gain (loss) on securities: | |||
Change in unrealized holding gain (loss) on available for sale securities during the period, net of tax | 30,747 | 8,941 | (3,224) |
Reclassification of gain realized through the sale of securities, net of tax | (227) | (1,153) | |
Change in fair value of cash flow hedge, net of tax | (989) | ||
Total other comprehensive income (loss), net of tax | 29,531 | 7,788 | (3,224) |
Comprehensive income | $ 75,065 | $ 60,747 | $ 34,085 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at Dec. 31, 2017 | $ 306,865 | $ 13,227 | $ 218,408 | $ 74,894 | $ 336 |
Balance (in shares) at Dec. 31, 2017 | 13,226,826 | ||||
Net income | 37,309 | 37,309 | |||
Other comprehensive income (loss) | (3,224) | (3,224) | |||
Reclassification of amounts within AOCI to retained earnings due to tax reform | (72) | (72) | |||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP | 3,750 | $ 378 | 3,372 | ||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP (in shares) | 378,293 | ||||
Common stock issued in connection with the acquisition of Post Oak Bancshares, Inc., net of registration expenses | 358,783 | $ 8,402 | 350,381 | ||
Common stock issued in connection with the acquisition of Post Oak Bancshares, Inc., net of registration expenses (in shares) | 8,402,010 | ||||
Repurchase of common stock | (2,112) | $ (69) | (2,043) | ||
Repurchase of common stock (in shares) | (69,389) | ||||
Stock based compensation expense | 1,685 | 1,685 | |||
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 (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 | 52,959 | 52,959 | |||
Other comprehensive income (loss) | 7,788 | 7,788 | |||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP | 3,412 | $ 272 | 3,140 | ||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP (in shares) | 272,353 | ||||
Repurchase of common stock | (58,663) | $ (1,686) | (56,977) | ||
Repurchase of common stock (in shares) | (1,686,277) | ||||
Stock based compensation expense | 3,100 | 3,100 | |||
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 | ||||
Cumulative effect of change in accounting principle (Accounting Standards Update 2016-13) at Dec. 31, 2019 | (5,508) | (5,508) | |||
Total shareholders' equity at beginning of period, as adjusted (See Note 1) at Dec. 31, 2019 | 704,357 | $ 20,524 | 521,066 | 157,867 | 4,900 |
Net income | 45,534 | 45,534 | |||
Other comprehensive income (loss) | 29,531 | 29,531 | |||
Cash dividends declared | (8,165) | (8,165) | |||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP | 2,569 | $ 203 | 2,366 | ||
Common stock issued in connection with the exercise of stock options, restricted stock awards and the ESPP (in shares) | 203,404 | ||||
Repurchase of common stock | (18,582) | $ (519) | (18,063) | ||
Repurchase of common stock (in shares) | (518,897) | ||||
Stock based compensation expense | 3,425 | 3,425 | |||
Balance at Dec. 31, 2020 | $ 758,669 | $ 20,208 | $ 508,794 | $ 195,236 | $ 34,431 |
Balance (in shares) at Dec. 31, 2020 | 20,208,323 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) | 12 Months Ended |
Dec. 31, 2020$ / shares | |
Retained Earnings | |
Per share amount of cash dividends declared | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 45,534 | $ 52,959 | $ 37,309 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and core deposit intangibles amortization | 7,638 | 7,903 | 3,947 |
Provision for credit losses | 27,374 | 5,939 | 4,248 |
Deferred income tax benefit | (7,059) | (87) | (256) |
Net amortization of premium on investments | 3,731 | 4,051 | 3,533 |
Excess tax benefit from stock based compensation | (149) | (11) | (587) |
Bank owned life insurance income | (582) | (624) | (579) |
Net accretion of discount on loans | (2,508) | (8,853) | (2,702) |
Net amortization of discount on subordinated debt | 113 | 111 | 110 |
Net accretion of discount on certificates of deposit | (356) | (772) | (367) |
Loss (gain) on sale or write-downs of other real estate and other repossessed assets | 4,323 | (26) | 428 |
Net gain on sale of securities | (287) | (1,459) | |
Federal Home Loan Bank stock dividends | (192) | (403) | (396) |
Stock based compensation expense | 3,425 | 3,100 | 1,685 |
Net change in operating leases | 2,627 | 2,097 | |
Increase in accrued interest receivable and other assets | (24,964) | (111) | (2,136) |
Increase in accrued interest payable and other liabilities | 2,395 | 3,053 | 1,822 |
Net cash provided by operating activities | 61,063 | 66,867 | 46,059 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Proceeds from maturities and principal paydowns of available for sale securities | 3,959,259 | 3,462,495 | 2,328,864 |
Proceeds from sales and calls of available for sale securities | 38,106 | 173,024 | 12,701 |
Purchase of available for sale securities | (4,362,521) | (3,663,770) | (2,334,149) |
Net change in total loans | (591,471) | (165,984) | (270,314) |
Purchase of bank premises and equipment | (7,182) | (13,385) | (3,419) |
Proceeds from sale of bank premises, equipment and other real estate | 4,027 | 1,871 | |
Net (redemptions) purchases of Federal Home Loan Bank stock | (1,322) | 5,102 | 4,746 |
Net cash paid for the LoweryBank branch acquisition | (32,867) | ||
Net cash and cash equivalents acquired in the purchase of Post Oak Bancshares, Inc. | 230,416 | ||
Net cash used in investing activities | (961,104) | (233,514) | (31,155) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net increase in noninterest-bearing deposits | 452,335 | 29,052 | 93,053 |
Net increase in interest-bearing deposits | 468,402 | 361,536 | 64,566 |
Net change in other borrowed funds | 65,000 | (149,990) | (87,076) |
Net increase in borrowings under credit agreement | 15,000 | ||
Proceeds from subordinated notes issuance | 58,601 | ||
Dividends paid to common shareholders | (8,165) | ||
Proceeds from the issuance of common stock, stock option exercises and the ESPP | 2,569 | 3,412 | 3,750 |
Cash paid for fractional shares related to the Post Oak acquisition | (21) | ||
Registration expenses related to common stock issued in the Post Oak acquisition | (220) | ||
Repurchase of common stock | (18,582) | (58,663) | (2,112) |
Net cash provided by financing activities | 976,559 | 243,948 | 71,940 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 76,518 | 77,301 | 86,844 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 346,248 | 268,947 | 182,103 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 422,766 | 346,248 | 268,947 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Income taxes paid | 15,100 | 15,400 | 6,650 |
Interest paid | 40,704 | 51,856 | 27,442 |
Cash paid for operating lease liabilities | 3,282 | 3,543 | |
SUPPLEMENTAL NONCASH DISCLOSURE: | |||
Lease right-of-use asset obtained in exchange for lessee operating lease liabilities | 3,056 | 13,277 | |
Loans transferred to other real estate | 9,209 | $ 7,707 | $ 265 |
Other real estate transferred to loans | $ 2,379 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 12 Months Ended |
Dec. 31, 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 and Principles of Consolidation- The consolidated financial statements include 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. Intercompany transactions and balances are eliminated in consolidation under U.S. generally accepted accounting principles (“GAAP”). The Company derives substantially all of its revenues and income from the operation of the Bank. Allegiance Bank is a Texas banking association which began operations in October 2007. 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 mid-sized businesses, professionals and individuals through its 28 offices, with 27 bank offices in the Houston metropolitan area and one office in Beaumont, just outside of the Houston metropolitan area, as of the year ended December 31, 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. Use of Estimates— The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reporting of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Acquisitions – On October 1, 2018, Allegiance completed the acquisition of Post Oak Bancshares, Inc. On February 1, 2019, Allegiance completed the acquisition of the LoweryBank branch, the Sugar Land location of Huntington State Bank. See Note 2 – Acquisitions for additional information pertaining to the Post Oak and LoweryBank acquisitions and the impact of the Post Oak transaction on the Company’s consolidated financial statements. Cash and cash equivalents —Cash and cash equivalents include cash, deposits with other financial institutions with maturities not greater than one year. Net cash flows are reported for customer loan and deposit transactions. Securities —Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value. Unrealized gains and losses are excluded from earnings and reported, net of tax, as a separate component of shareholders’ equity until realized. Securities within the available for sale portfolio may be used as part of the Company’s asset/liability strategy and may be sold in response to changes in interest rate risk, prepayment risk or other similar economic factors. Interest earned on these assets is included in interest income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Loans —Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses on loans. Amortized cost is the principal balance outstanding, net of purchase accounting adjustments and deferred fees and costs. Accrued interest receivable on loans totaled $34.5 million at December 31, 2020 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments. Interest income on loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Loans are returned to accrual status when all the principal and interest amount contractually due are brought current and future payments are reasonably assured. Purchased Credit Deteriorated (PCD) Loans —Upon adoption of ASC 326, the allowance for credit losses was determined for each loan and added to the loan’s carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the loan and the new amortized cost basis was the noncredit premium or discount which was amortized into interest income over the remaining life of the loan. Changes to the allowance for credit losses after adoption are recorded through provision expense. Nonrefundable Fees and Costs Associated with Lending Activities —Loan commitment and loan origination fees, and certain direct origination costs, are deferred and recognized in interest income as an adjustment to yield without anticipating prepayments using the interest method over the related loan life or; if the commitment expires unexercised, balances are recognized in income upon expiration of the commitment. Nonperforming and Past Due Loans —The Company has several procedures in place to assist it in maintaining the overall quality of its loan portfolio. The Company has established underwriting guidelines to be followed by its officers, and monitors its delinquency levels for any negative or adverse trends. There can be no assurance, however, that the Company’s loan portfolio will not become subject to increasing pressures from deteriorating borrower credit due to general economic conditions or other factors. Past due status is based on the contractual terms of the loan. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company generally classifies a loan as nonperforming, automatically places the loan on nonaccrual status, ceases accruing interest and reverses all unpaid accrued interest against interest income, when, in management’s opinion, the borrower may be unable to meet payment obligations, when the payment of principal or interest on a loan is delinquent for 90 days, as well as when required by regulatory provisions, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. Any payments received on nonaccrual loans are applied first to outstanding loan amounts. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Any excess is treated as recovery of lost interest. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan. Nonaccrual loans and loans past due 90 days include both smaller balance homogeneous loans that are collectively and individually evaluated. When available information confirms that specific loans, or portions thereof, are uncollectible, these amounts are charged-off against the allowance. All loan types are considered delinquent after 30 days past due and are typically charged-off or charged-down no later than 120 days past due, with consideration of, but not limited to, the following criteria in determining the need and timing of the charge-off or charge-down: (1) the Bank is in the process of repossession or foreclosure and there appears to be a likely deficiency; (2) the collateral securing the loan has been sold and there is an actual deficiency; (3) the Bank is proceeding with lengthy legal action to collect its balance; (4) the borrower is unable to be located; or (5) the borrower has filed bankruptcy. Charge-offs occur when the Company confirms a loss on a loan. Acquired Loans — Acquired loans are recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Prior to the adoption of ASC Topic 326 on January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. Valuation allowances on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as a provision for credit losses expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. A llowance for Credit Losses – Allowance for Credit Losses on Loans - Effective January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay a loan (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The allowance for credit losses on loans maintained by management is believed adequate to absorb all expected future losses in the loan portfolio at the balance sheet date. The Company disaggregates the loan portfolio into pools for purposes of determining the allowance for credit losses. These pools are based on the level at which the Company develops, documents and applies a systematic methodology to determine the allowance for credit losses. Loans with similar risk characteristics are collectively evaluated resulting in loss estimates as determined by applying reserve factors, such as historical lifetime loan loss experience, concentration risk of specific loan types, the volume, growth and composition of the Company’s loan portfolio, current economic conditions and reasonable and supportable forecasted economic conditions that may affect the borrower’s ability to pay and the value of collateral, the evaluation of the Company’s loan portfolio through its internal loan review process, general economic conditions and other qualitative risk factors both internal and external to the Company and other relevant factors, designed to estimate current expected credit losses, to amortized cost balances over the remaining contractual life of the collectively evaluated portfolio. Loans with similar risk characteristics are aggregated into homogeneous pools for assessment. Historical lifetime loan loss experience is determined by utilizing an open-pool (“cumulative loss rate”) methodology. Adjustments to the historical lifetime loan loss experience are made for differences in current loan pool risk characteristics such as portfolio concentrations, delinquency, nonaccrual, and watch list levels, as well as changes in current and forecasted economic conditions such as unemployment rates, property and collateral values, and other indices relating to economic activity. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each year by the Company and are dependent on the current economic environment among other factors. A reasonable and supportable period of twelve months was utilized for all loan pools, followed by an immediate reversion to long term averages. Based on a review of these factors for each loan type, the Company applies an estimated percentage to the outstanding balance of each loan type. Loans that no longer share risk characteristics with the collectively evaluated loan pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. In order to assess which loans are to be individually evaluated, the Company follows a loan review program to evaluate the credit risk in the total loan portfolio and assigns risk grades to each loan. Individual credit loss estimates are typically performed for nonaccrual loans, modified loans classified as troubled debt restructurings and all other loans identified by management. All loans deemed as being individually evaluated are reviewed on a quarterly basis in order to determine whether a specific reserve is required. The Company considers certain loans to be collateral dependent if the borrower is experiencing financial difficulty and management expects repayment for the loan to be substantially through the operation or sale of the collateral. For collateral dependent loans, loss estimates are based on the fair value of collateral, less estimated cost to sell (if applicable). Collateral values supporting individually evaluated loans are assessed quarterly and appraisals are typically obtained at least annually. The Company allocates a specific loan loss reserve on an individual loan basis primarily based on the value of the collateral securing the individually evaluated loan. Through this loan review process, the Company assesses the overall quality of the loan portfolio and the adequacy of the allowance for credit losses on loans while considering risk elements attributable to particular loan types in assessing the quality of individual loans. In addition, for each category of loans, the Company considers secondary sources of income and the financial strength and credit history of the borrower and any guarantors. A change in the allowance for credit losses on loans can be attributable to several factors, most notably specific reserves for individually evaluated loans, historical lifetime loan loss information, and changes in economic factors and growth in the loan portfolio. Specific reserves that are calculated on an individual basis and the qualitative assessment of all other loans reflect current changes in the credit quality of the loan portfolio. Historical lifetime credit losses, on the other hand, are based on an open-pool (“cumulative loss rate”) methodology, which is then applied to estimate lifetime credit losses in the loan portfolio. The allowance for credit losses on loans is further determined by the size of the loan portfolio subject to the allowance methodology and factors that include Company-specific risk indicators and general economic conditions, both of which are constantly changing. The Company evaluates the economic and portfolio-specific factors on a quarterly basis to determine a qualitative component of the general valuation allowance. These factors include current economic metrics, reasonable and supportable forecasted economic metrics, delinquency trends, credit concentrations, nature and volume of the portfolio and other adjustments for items not covered by specific reserves and historical lifetime loss experience. Based on the Company’s actual historical lifetime loan loss experience relative to economic and loan portfolio-specific factors at the time the losses occurred, management is able to identify the probable level of lifetime losses as of the date of measurement. The Company’s analysis of qualitative, or economic, factors on pools of loans with common risk characteristics, in combination with the quantitative historical lifetime loss information and specific reserves, provides the Company with an estimate of lifetime losses. The calculation of current expected credit losses is inherently subjective, as it requires management to exercise judgment in determining appropriate factors used to determine the allowance. The estimated loan losses for all loan pools are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses to bring the allowance to the level management believes is appropriate based on factors that have not otherwise been fully accounted for, including adjustments for foresight risk, input imprecision and model imprecision. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management, but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, changes in lending policies and procedures, policy exceptions, independent loan review results, internal risk ratings and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan pool based on the assessment of these various qualitative factors. The determination of the appropriate qualitative adjustment is based on management's analysis of current and expected economic conditions and their impact to the portfolio, as well as internal credit risk movements and a qualitative assessment of the lending environment, including underwriting standards. Management recognizes the sensitivity of various assumptions made in the quantitative modeling of expected losses and may adjust reserves depending upon the level of uncertainty that currently exists in one or more assumptions. While policies and procedures used to estimate the allowance for credit losses on loans, as well as the resultant provision for credit losses charged to income, are considered adequate by management and are reviewed periodically by regulators and internal audit, they are approximate and could materially change based on changes within the loan portfolio and effects from economic factors. There are factors beyond the Company’s control, such as changes in projected economic conditions, including political instability or global events affecting the U.S. economy, real estate markets or particular industry conditions which could cause changes to expectations for current conditions and economic forecasts that could result in an unanticipated increase in the allowance and may materially impact asset quality and the adequacy of the allowance for credit losses and thus the resulting provision for credit losses. In assessing the adequacy of the allowance for credit losses on loans, the Company considers the results of its ongoing independent loan review process. The Company undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers and reviews that may have been conducted by third-party reviewers including regulatory examiners. The Company incorporates relevant loan review results in the allowance. In accordance with CECL, losses are estimated over the remaining contractual terms of loans, adjusted for prepayments. The contractual term excludes expected extensions, renewals and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed or such renewals, extensions or modifications are included in the original loan agreement and are not unconditionally cancellable by the Company. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums and deferred loan fees and costs. Loan losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income in a timely manner. Accrued interest is presented separately on the balance sheets and as allowed under ASC Topic 326 is excluded from the tabular loan disclosures in Note 6 – Loans and Allowance for Credit Losses. Allowance for Credit Losses on Unfunded Commitments - The Company estimates expected credit losses over the contractual term in which the Company is exposed to credit risk through a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. Allowance for Credit Losses - Securities Available for Sale – For securities classified as available for sale that are in an unrealized loss position at the balance sheet date, the Company first assesses whether or not it intends to sell the security, or more likely than not will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through net income. If neither criteria is met, the Company evaluates whether any portion of the decline in fair value is the result of credit deterioration. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. If the evaluation indicates that a credit loss exists, an allowance for credit losses is recorded through provisions for credit losses for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. The zero-loss expectation applies to all of the Company’s securities and no allowance for credit losses was recorded on its available for sale securities portfolio at transition. Prior to the adoption of ASU 2016-13, declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2020, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Accrued interest receivable on available for sale securities totaled $5.5 million at December 31, 2020 and is excluded from the estimate of credit losses. Troubled debt restructurings (TDRs) — Loans for which terms have been modified in a TDR are evaluated using these same individual evaluation methods. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. The Company assesses the exposure for each modification, by collateral discounting and determines if a specific allocation to the allowance for credit losses is needed. Once an obligation has been restructured because of such credit problems, it continues to be considered a troubled debt restructuring until paid in full. The Company returns troubled debt restructurings to accrual status only if (1) all contractual amounts due can reasonably be expected to be repaid within a prudent period and (2) repayment has been in accordance with the contract for a sustained period, typically at least twelve months. Premises and Equipment —Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is calculated principally using the straight-line method over the estimated useful lives of the assets which range from 3 to 40 years. Leasehold improvements are amortized using the straight-line method over the periods of the leases or the estimated useful lives, whichever is shorter. Land is carried at cost. Leases — On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) through the required modified retrospective approach by applying the allowed transition method whereby comparative periods were not restated. The Company elected to apply several of the available practical expedients provided by ASU 2016-12, including carryover of historical lease determination, carryover of historical initial direct cost balances for existing leases and accounting for lease and non-lease components in contracts in which the Company is a lease as a single lease component. Upon adoption of the new leasing standard on January 1, 2019, the Company recognized $15.3 million of right-of-use assets, and $15.7 million of related lease liabilities on the Consolidated Balance Sheet. The Company leases certain office facilities under operating leases. We also own certain office facilities which we lease to outside parties under operating lessor leases; however, such leases are not significant. Under the new standards, for operating leases other than those considered to be short-term, we recognize lease right-of-use assets and related lease liabilities. Such amounts are reported as components of premises and equipment and other liabilities, respectively, on our consolidated balance sheet. Other Real Estate Owned —Assets acquired through or instead of loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. At December 31, 2020, the $9.2 million balance of other real estate owned primarily consisted of foreclosed commercial real estate properties recorded as a result of obtaining physical possession of the property. Federal Home Loan Bank (“FHLB”) Stock— The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Bank Owned Life Insurance— The Company purchased bank owned life insurance policies on certain key executives and acquired life insurance policies in conjunction with the acquisitions of F&M Bancshares and Post Oak. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value, and the most reasonable estimate of fair value, adjusted for other charges or other amounts due that are probable at settlement. Goodwill —Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is assessed annually on October 1 for impairment or more frequently if events and circumstances exist that indicate that the carrying amount of the asset may not be recoverable and a goodwill impairment test should be performed. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 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: 2019 Acquisition Acquisition of LoweryBank Branch —On February 1, 2019, the Bank completed the acquisition of the LoweryBank branch, 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 was 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 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 and was not 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 will be 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 final purchase price allocation is as follows (dollars 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. PCI Loans. The following presents information at the acquisition date for PCI loans acquired in the transaction (dollars in thousands): Contractually required principal and interest payments $ 28,340 Contractual cash flows not expected to be collected (nonaccretable difference) (3,163 ) Expected cash flows at acquisition 25,177 Interest component of expected cash flows (accretable yield) (495 ) Fair value of loans acquired with deterioration of credit quality $ 25,672 Non-PCI Loans. The following table presents information at the acquisition date for non-PCI loans acquired in the transaction (dollars in thousands): Contractually required principal and interest payments $ 1,152,892 Accretable discount (13,293 ) Fair value at acquisition $ 1,166,185 The following table presents unaudited pro forma financial information as if the acquisition had occurred at the beginning of 2017. Post Oak’s results of operations were included in the Company’s results beginning October 1, 2018. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates. For the Years Ended December 31, 2018 2017 (Dollars in thousands, except per share data) Net interest income $ 170,801 $ 165,612 Noninterest income 10,060 9,543 Net income 41,807 35,107 Basic earnings per common share 2.70 1.63 Diluted earnings per common share 2.65 1.61 To determine pro forma information, the Company adjusted its year ended December 31, 2018 and 2017 historical results to include the historical results for Post Oak for the year ended December 31, 2017 and the year ended December 31, 2018. The pro forma information includes acquisition accounting adjustments to interest on loans, certificates of deposit and subordinated debt, difference in the rate of borrowed funds, amortization of intangibles arising from the transaction and the related income tax effects. Earnings of Post Oak since the acquisition date have not been disclosed as the acquired company was merged into the Company and separate financial information is not readily available. The Company incurred approximately $1.3 million and $1.7 million of pre-tax acquisition and merger-related expenses during the years ended December 31, 2019 and 2018, respectively, related to the Post Oak acquisition. The acquisition and merger-related expenses are reflected on the Company’s income statement for 2019 and 2018 but are excluded from the calculation of pro forma income above. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 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 intangibles were as follows: Core Deposit Goodwill Intangibles (Dollars in thousands) Balance as of December 31, 2017 $ 39,389 $ 3,274 Acquisition of Post Oak Bancshares, Inc. 183,736 25,128 Amortization — (1,815 ) 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 — (3,922 ) Balance as of December 31, 2020 $ 223,642 $ 17,954 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. The Company performs its annual evaluation of goodwill impairment of Allegiance Bancshares, Inc., the sole reporting unit, on October 1 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 continued to have on the economy and the movement of the Company’s stock price, the Company performed its annual quantitative goodwill impairment analysis as of September 30, 2020 and determined that goodwill was not impaired. 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. No triggering event occurred during the fourth quarter of 2020 that required an updated goodwill impairment analysis at December 31, 2020. The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2020 is as follows (dollars in thousands): 2021 $ 3,296 2022 3,003 2023 2,323 2024 2,188 2025 2,061 Thereafter 5,083 Total $ 17,954 |
CASH AND DUE FROM BANKS
CASH AND DUE FROM BANKS | 12 Months Ended |
Dec. 31, 2020 | |
Cash And Cash Equivalents [Abstract] | |
CASH AND DUE FROM BANKS | 4. CASH AND DUE FROM BANKS The Bank can be required by the Federal Reserve Bank of Dallas to maintain average reserve balances. The Bank was not required to maintain reserve balances at December 31, 2020 and 2019. |
SECURITIES
SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
SECURITIES | 5. The amortized cost and fair value of investment securities were as follows: December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 25,545 $ 654 $ — $ 26,199 Municipal securities 392,586 35,079 (60 ) 427,605 Agency mortgage-backed pass-through securities 167,606 3,829 (146 ) 171,289 Agency collateralized mortgage obligations 80,182 4,263 (75 ) 84,370 Corporate bonds and other 62,124 1,352 (49 ) 63,427 Total $ 728,043 $ 45,177 $ (330 ) $ 772,890 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 December 31, 2020, no The amortized cost and fair value of investment securities at December 31, 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 $ 110 $ 110 Due after one year through five years 12,849 13,412 Due after five years through ten years 105,239 109,238 Due after ten years 362,057 394,471 Subtotal 480,255 517,231 Agency mortgage-backed pass through and collateralized mortgage obligation securities 247,788 255,659 Total $ 728,043 $ 772,890 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: December 31, 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 $ 28,659 $ (146 ) $ — $ — $ 28,659 $ (146 ) Agency collateralized mortgage obligations 11,629 (39 ) 4,203 (36 ) 15,832 (75 ) Municipal securities 8,844 (60 ) — — 8,844 (60 ) Corporate bonds and other 15,951 (49 ) — — 15,951 (49 ) Total $ 65,083 $ (294 ) $ 4,203 $ (36 ) $ 69,286 $ (330 ) 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 ) During 2020, the Company sold $30.8 million and had calls of $7.3 million of securities recording gross gains of $391 thousand and gross losses of $104 thousand for a net gain of $287 thousand for the year ended December 31, 2020. The Company sold $173.0 million of securities recording gross gains of $2.1 million and gross losses of $596 thousand for a net gain of $1.5 million for the year ended December 31, 2019. At December 31, 2020 and 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 the consolidated shareholders’ equity at such respective dates. The carrying value of pledged securities was $18.5 million and $24.3 million at December 31, 2020 and 2019, respectively. The majority of the securities were pledged to collateralize public fund deposits. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 12 Months Ended |
Dec. 31, 2020 | |
Loans And Allowance For Credit Losses [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 6. LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily all made to borrowers located within Texas and are classified by major type as follows: December 31, 2020 December 31, 2019 (Dollars in thousands) Commercial and industrial $ 667,079 $ 689,360 Mortgage warehouse — 8,304 Paycheck Protection Program (PPP) 569,901 — Real estate: Commercial real estate (including multi-family residential) 1,999,877 1,873,782 Commercial real estate construction and land development 367,213 410,471 1-4 family residential (including home equity) 737,605 698,957 Residential construction 127,522 192,515 Consumer and other 22,567 41,921 Total loans 4,491,764 3,915,310 Allowance for credit losses on loans (53,173 ) (29,438 ) Loans, net $ 4,438,591 $ 3,885,872 Loan Origination/Risk Management The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company maintains an independent loan review department that reviews and validates the credit risk program on a periodic basis. In addition, an independent third party loan review is performed on a semi-annual basis. In connection with the reviews of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. Some of the risk elements include: (i) Commercial and Industrial Loans. (ii) Commercial Real Estate. The Company’s nonowner-occupied and multi-family commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on sufficient income from the properties securing the loans to cover operating expenses and debt service. The Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. In addition, these loans are generally guaranteed by individual owners of the borrower and have typically lower loan to value ratios. Loans secured by owner-occupied properties represented 54.6% of the outstanding principal balance of the Company’s commercial real estate loans at December 31, 2020. The Company is dependent on the cash flows of the business occupying the property and its owners and requires these loans generally to be secured by property with adequate margins and guaranteed by the individual owners. The Company’s owner-occupied commercial real estate loans collateralized by first liens on real estate typically have fixed interest rates and amortize over a 10 to 20 year period. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economies in the Company’s region. (iii) Construction and Land Development Loans. have floating interest rates. Construction and land development real estate loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. The Company generally conducts periodic inspections, either directly or through an agent, prior to approval of periodic draws on these loans. Underwriting guidelines similar to those described above are also used in the Company’s construction lending activities. The Company may be required to fund additional amounts to complete a project and may have to hold the property for an indeterminate period of time. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economies in the Company’s region . (iv) Residential Real Estate Loans. (v) Consumer and Other Loans. In addition, for each category, the Company considers secondary sources of income and the financial strength and credit history of the borrower and any guarantors. Acquired Loans The carrying amount of PCI loans included in the consolidated balance sheet and the related outstanding balance owed at December 31, 2019 are presented in the table below (dollars in thousands): As of December 31, 2019 Outstanding balance $ 16,589 Less: Discount (2,414 ) Less: Allowance (259 ) Recorded investment $ 13,916 Changes in the accretable yield for PCI loans for the year ended December 31, 2019 were deemed immaterial. Non-PCI Loans The recorded investment of Non-PCI loans included in the consolidated balance sheet and the related outstanding balance owed are presented in the table below (dollars in thousands). As of December 31, 2019 Outstanding balance $ 672,927 Less: Discount (3,069 ) Recorded investment $ 669,858 Changes in the discount accretion for Non-PCI loans were as follows (dollars in thousands): As of December 31, 2019 Balance at beginning of period $ 10,650 Additions 573 Accretion (8,154 ) Balance at end of period $ 3,069 Concentrations of Credit The vast majority of the Company’s lending activity occurs in and around the Houston, Texas area. The Company’s loans are primarily loans secured by real estate, including commercial and residential construction, owner-occupied and nonowner-occupied and multi-family commercial real estate, raw land and other real estate based loans. Related Party Loans As of December 31, 2020 and 2019, loans outstanding to directors, officers and their affiliates totaled $1.2 million and $6.8 million, respectively. An analysis of activity with respect to these related-party loans is as follows: 2020 (Dollars in thousands) Beginning balance on January 1 $ 6,782 New loans and reclassified related loans 90 Repayments and reclassified related loans (5,689 ) Ending balance on December 31 $ 1,183 Nonaccrual and Past Due Loans An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. For purposes of this and future disclosures recorded investment has been defined as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $34.5 million and $15.5 million as of December 31, 2020 and 2019, respectively, due to immateriality. December 31, 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 $ 2,486 $ — $ 2,486 $ 10,747 $ 653,846 $ 667,079 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — 569,901 569,901 Real estate: Commercial real estate (including multi-family residential) 3,063 — 3,063 10,081 1,986,733 1,999,877 Commercial real estate construction and land development 2,930 — 2,930 3,011 361,272 367,213 1-4 family residential (including home equity) 3,000 — 3,000 4,525 730,080 737,605 Residential construction — — — — 127,522 127,522 Consumer and other 46 — 46 529 21,992 22,567 Total loans $ 11,525 $ — $ 11,525 $ 28,893 $ 4,451,346 $ 4,491,764 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 If interest on nonaccrual loans had been accrued under the original loan terms, approximately $902.5 thousand and $1.2 million would have been recorded as income for the years ended December 31, 2020 and 2019, respectively. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt. The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale of 1 to 9. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes including lending management monitoring, executive management and board committee oversight, and independent credit review. including trends related to (i) the weighted-average risk The following is a general description of the risk ratings used: 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, 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 loans so classified 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. Loss — Loans classified as loss are to be charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. The following table presents risk ratings by category of loan as of December 31, 2020 and 2019: As of December 31, 2020 As of December 31, 2019 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Total (Dollars in thousands) Commercial and industrial Pass $ 149,522 $ 81,526 $ 46,909 $ 17,610 $ 20,955 $ 6,951 $ 239,045 $ — $ 562,518 $ 637,388 Watch 12,755 6,956 6,600 2,436 1,446 1,067 9,766 — 41,026 14,797 Special Mention 758 2,746 3,740 1,860 2,756 — 13,150 — 25,010 10,871 Substandard 12,650 4,272 3,798 7,043 2,577 99 7,946 — 38,385 26,226 Doubtful 69 71 — — — — — — 140 78 Total commercial and industrial loans $ 175,754 $ 95,571 $ 61,047 $ 28,949 $ 27,734 $ 8,117 $ 269,907 $ — $ 667,079 $ 689,360 Mortgage warehouse Pass $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 8,304 Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total mortgage warehouse loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 8,304 Paycheck Protection Program (PPP) Pass $ 569,901 $ — $ — $ — $ — $ — $ — $ — $ 569,901 $ — Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ 569,901 $ — $ — $ — $ — $ — $ — $ — $ 569,901 $ — Commercial real estate (including multi-family residential) Pass $ 587,089 $ 321,020 $ 220,554 $ 221,147 $ 156,671 $ 75,353 $ 47,189 $ — $ 1,629,023 $ 1,760,476 Watch 27,851 45,009 23,492 32,567 24,051 23,531 1,150 — 177,651 56,367 Special Mention 10,931 16,452 9,940 12,128 3,243 14,482 1,100 — 68,276 11,974 Substandard 17,391 27,265 18,926 20,688 27,595 10,896 2,166 — 124,927 44,965 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 643,262 $ 409,746 $ 272,912 $ 286,530 $ 211,560 $ 124,262 $ 51,605 $ — $ 1,999,877 $ 1,873,782 Commercial real estate construction and land development Pass $ 172,389 $ 77,535 $ 31,392 $ 16,712 $ 5,098 $ 2,036 $ 14,971 $ — $ 320,133 $ 385,832 Watch 12,801 2,943 4,315 13,157 5,290 515 — — 39,021 9,583 Special Mention 615 1,620 378 — — 267 — — 2,880 639 Substandard 2,958 986 693 — — — 542 — 5,179 14,417 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 188,763 $ 83,084 $ 36,778 $ 29,869 $ 10,388 $ 2,818 $ 15,513 $ — $ 367,213 $ 410,471 The following table presents risk ratings by category of loan as of December 31, 2020 and 2019: As of December 31, 2020 As of December 31, 2019 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Total (Dollars in thousands) 1-4 family residential (including home equity) Pass $ 212,543 $ 128,835 $ 101,091 $ 67,257 $ 44,666 $ 27,846 $ 87,836 $ — $ 670,074 $ 669,288 Watch 14,153 3,565 4,406 5,994 2,099 3,138 4,312 — 37,667 15,798 Special Mention 6,237 728 4,312 674 2,379 2,006 2,454 — 18,790 5,844 Substandard 1,392 2,308 2,576 1,238 1,869 1,422 269 — 11,074 8,027 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 234,325 $ 135,436 $ 112,385 $ 75,163 $ 51,013 $ 34,412 $ 94,871 $ — $ 737,605 $ 698,957 Residential construction Pass $ 106,804 $ 10,330 $ 5,288 $ 742 $ 1,573 $ — $ — $ — $ 124,737 $ 188,636 Watch 2,036 749 — — — — — — 2,785 2,560 Special Mention — — — — — — — — — — Substandard — — — — — — — — — 1,319 Doubtful — — — — — — — — — — Total residential construction $ 108,840 $ 11,079 $ 5,288 $ 742 $ 1,573 $ — $ — $ — $ 127,522 $ 192,515 Consumer and other Pass (1) $ (6,193 ) $ 20,578 $ 1,537 $ 586 $ 25 $ 122 $ 4,704 $ — $ 21,359 $ 41,355 Watch 57 242 27 — — — 63 — 389 6 Special Mention 231 — 39 — — — — — 270 358 Substandard 491 33 25 — — — — — 549 202 Doubtful — — — — — — — — — — Total consumer and other $ (5,414 ) $ 20,853 $ 1,628 $ 586 $ 25 $ 122 $ 4,767 $ — $ 22,567 $ 41,921 Total loans Pass $ 1,792,055 $ 639,824 $ 406,771 $ 324,054 $ 228,988 $ 112,308 $ 393,745 $ — $ 3,897,745 $ 3,691,279 Watch 69,653 59,464 38,840 54,154 32,886 28,251 15,291 — 298,539 99,111 Special Mention 18,772 21,546 18,409 14,662 8,378 16,755 16,704 — 115,226 29,686 Substandard 34,882 34,864 26,018 28,969 32,041 12,417 10,923 — 180,114 95,156 Doubtful 69 71 — — — — — — 140 78 Total loans $ 1,915,431 $ 755,769 $ 490,038 $ 421,839 $ 302,293 $ 169,731 $ 436,663 $ — $ 4,491,764 $ 3,915,310 (1) Includes net deferred fees of $13.9 million on PPP loans. The following table presents the activity in the allowance for credit losses on loans by portfolio type for the years ended December 31, 2020, 2019 and 2018: 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 credit losses on loans: Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Impact of ASC 326 adoption 7,022 — — (5,163 ) 1,630 1,600 (1 ) 137 5,225 Provision for loan losses 4,363 — — 20,417 3,461 (1,822 ) (186 ) 310 26,543 Charge-offs (2,938 ) — — (2,562 ) (2,573 ) (351 ) — (159 ) (8,583 ) Recoveries 473 — — 72 — — — 5 550 Net charge-offs (2,465 ) — — (2,490 ) (2,573 ) (351 ) — (154 ) (8,033 ) Balance December 31, 2020 $ 17,738 $ — $ — $ 23,934 $ 6,939 $ 3,279 $ 870 $ 413 $ 53,173 Allowance for loan losses: Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 Provision for loan losses 2,881 — — (654 ) 1,741 1,905 17 49 5,939 Charge-offs (2,688 ) — — (80 ) (44 ) (295 ) — (34 ) (3,141 ) Recoveries 274 — — 3 — — — 32 309 Net charge-offs (2,414 ) — — (77 ) (44 ) (295 ) — (2 ) (2,832 ) Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Allowance for loan losses: Balance December 31, 2017 $ 7,694 $ — $ — $ 10,253 $ 2,525 $ 2,140 $ 942 $ 95 $ 23,649 Provision for loan losses 2,234 — — 1,588 199 127 98 2 4,248 Charge-offs (2,424 ) — — (42 ) — (25 ) — (24 ) (2,515 ) Recoveries 847 — — 102 — — — — 949 Net charge-offs (1,577 ) — — 60 — (25 ) — (24 ) (1,566 ) Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 Allowance for Credit Losses on Unfunded Commitments . In addition to the allowance for credit losses on loans, the Company has established an allowance for credit losses on unfunded commitments, classified in other liabilities and adjusted as a provision for credit loss expense. The allowance represents estimates of expected credit losses over the contractual period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on the commitments expected to fund. The estimate of commitments expected to fund is informed by historical analysis looking at utilization rates. The expected credit loss rates applied to the commitments expected to fund is informed by the general valuation allowance utilized for outstanding balances with the same underlying assumptions and drivers. The allowance for credit losses on unfunded commitments as of December 31, 2020 was $4.7 million. There was no allowance recorded on unfunded commitments at December 31, 2019. The establishment of an allowance in 2020 was due to the adoption of CECL. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The following table details activity in the allowance for credit losses on unfunded commitments: As of December 31, 2020 (Dollars in thousands) Balance at beginning of period on January 1 $ 3,866 Provision for credit losses on off-balance sheet exposures 831 Balance at end of period on December 31 $ 4,697 Collateral dependent loans we re secured by commercial real estate assets, accounts receivable, inventory and equipment. For a collateral dependent loan, the Company’s evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is incl uded in the allowance for credit losses on loan s as a specific allocation. A t December 31, 2020, collateral dependent loans consisted primarily of com mercial loans. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses: As of December 31, 2020 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 5,157 $ — $ 5,157 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 425 — — 425 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,101 — — 3,101 Residential construction — — — — Consumer and other — — — — Total $ 3,526 $ 5,157 $ — $ 8,683 The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,097 $ 8,650 $ 10,747 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 7,487 2,594 10,081 Commercial real estate construction and land development 2,958 53 3,011 1-4 family residential (including home equity) 2,652 1,873 4,525 Residential construction — — — Consumer and other — 529 529 Total loans $ 15,194 $ 13,699 $ 28,893 Impaired Loans. Prior to the adoption of ASC Topic 326 on January 1, 2020, loans were reported as impaired when, based on then current information and events, it was probable the Company would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. If a loan was impaired, a specific valuation allowance was allocated, if necessary, so that the loan was reported net, at the fair value of collateral if repayment was expected solely from the collateral. The following table presents impaired loans at December 31, 2019 as determined under ASC 310 prior to the adoption of ASC Topic 326 by class of loans. 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 year ended December 31, 2019: For the Year Ended December 31, 2019 Average Interest Recorded Income Investment Recognized (Dollars in thousands) Commercial and industrial $ 13,376 $ 399 Mortgage warehouse — — Paycheck Protection Program (PPP) — — Real estate: Commercial real estate (including multi-family residential) 25,856 489 Commercial real estate construction and land development 10,251 185 1-4 family residential (including home equity) 2,058 6 Residential construction 594 — Consumer and other 75 1 PCI 3,133 8 Total $ 55,343 $ 1,088 Troubled Debt Restructurings As of December 31, 2020 and 2019, the Company had a recorded investment in troubled debt restructurings of $25.8 million and $28.9 million, respectively. The Company allocated $3.3 million and $3.2 million of specific reserves for these loans at December 31, 2020 and 2019, respectively, and did not commit to lend additional amounts on these loans. The following table presents information regarding loans modified in a troubled debt restructuring during the years ended December 31, 2020, 2019 and 2018: As of December 31, 2020 2019 2018 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 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 20 $ 4,333 $ 4,333 13 $ 4,358 $ 4,358 11 $ 2,770 $ 2,770 Mortgage warehouse — — — — — — — — — Real estate: Commercial real estate (including multi-family residential) 5 4,560 4,560 1 303 303 3 4,288 4,288 Commercial real estate construction and land development 1 830 830 — — — 1 3,114 3,114 1-4 family residential (including home equity) 5 2,051 2,051 1 396 396 — — — Residential construction — — — — — — — — — Consumer and other 1 30 30 2 43 43 — — — Total 32 $ 11,804 $ 11,804 17 $ 5,100 $ 5,100 15 $ 10,172 $ 10,172 Troubled debt restructurings resulted in charge-offs of $3.2 million, $251 thousand and $272 thousand during the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2020, there were four loans for a total of $2.6 million were modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the year 2020. As of December 31, 2019, there were five loans for a total of $472 thousand were modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the year 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 for the years 2020 and 2019. During the year ended December 31, 2020, the Company added $11.8 million in new troubled debt restructurings, of which $8.1 million was still outstanding on December 31, 2020. During the year ended December 31, 2019, the Company added $ 5.1 million in new troubled debt restructurings, of which $ 4.6 million was still outstanding on December 31, 2019. During the year ended December 31, 2020, the Company granted principal and interest deferrals on outstanding loan balances to customers affected by the COVID-19 pandemic. Additionally, upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. In addition to the short-term modification program implemented by the Company, Section 4013 of the CARES Act and bank regulatory interagency guidance gave entities temporary relief from the accounting and disclosure requirements for TDRs indicating that a lender could conclude that the modifications are not a TDR if the borrower was less than 30 days past due as of December 31, 2019. The following table presents information regarding principal and interest deferrals as of December 31, 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 $ 667,079 $ 127,689 11.3 % $ 21,747 9.5 % $ 23,822 14.8 % Mortgage warehouse — — 0.0 % — 0.0 % — 0.0 % Paycheck Protection Program (PPP) 569,901 — 0.0 % — 0.0 % — 0.0 % Real estate: Commercial real estate (including multi-family residential) 1,999,877 790,468 69.9 % 171,945 75.5 % 129,067 80.0 % Commercial real estate construction and land development 367,213 88,446 7.8 % 20,032 8.8 % 5,860 3.6 % 1-4 family residential (including home equity) 737,605 118,595 10.5 % 12,922 5.7 % 2,489 1.6 % Residential construction 127,522 4,452 0.4 % 926 0.4 % — 0.0 % Consumer and other 22,567 1,015 0.1 % 172 0.1 % 59 0.0 % Total loans $ 4,491,764 $ 1,130,665 100.0 % $ 227,744 100.0 % $ 161,297 100.0 % |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 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 estimated 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 December 31, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 422,766 $ 422,766 $ — $ — $ 422,766 Available for sale securities 772,890 — 772,890 — 772,890 Loans held for investment, net of allowance 4,438,591 — — 4,431,816 4,431,816 Accrued interest receivable 40,053 2 5,531 34,520 40,053 Financial liabilities Deposits $ 4,988,482 $ — $ 5,003,594 $ — $ 5,003,594 Interest rate swap 1,252 — 1,252 — 1,252 Accrued interest payable 2,701 — 2,701 — 2,701 Borrowed funds 155,515 — 144,629 — 144,629 Subordinated debt 108,322 — 109,832 — 109,832 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 fair value estimates presented herein are based on pertinent information available to management as of the dates indicated. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value, non-financial assets and non-financial liabilities and for estimating fair value for financial instruments not recorded at fair value: Cash and Cash Equivalents —For these short-term instruments, the carrying amount is a reasonable estimate of fair value. The Company classifies the estimated fair value of these instruments as Level 1. Available for Sale Securities —Fair values for investment securities are based upon quoted market prices, if available, and are considered Level 1 inputs. For all other available for sale securities, if quoted prices are not available, fair values are measured based on market prices for similar securities and are considered Level 2 inputs. For these securities, the Company generally obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Available for sale securities are recorded at fair value on a recurring basis. Loans —The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and that have no significant change in credit risk resulting in a Level 3 classification. Fair values for fixed-rate loans and variable rate loans which reprice infrequently are estimated by discounting future cash flows. In accordance with ASU 2016-01, which was adopted effective January 1, 2018, the discount rates used to determine the fair value of loans used interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans. Deposits —The fair value of demand deposits (e.g., interest and noninterest checking, savings and certain types of money market deposits) is the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 2 classification. The fair value of fixed rate certificates of deposit is estimated using a discounted cash flows calculation that applies interest rates currently offered on certificates of deposit to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. Accrued Interest —The carrying amounts of accrued interest approximate their fair values resulting in a Level 1, 2 or 3 classification. Borrowed Funds —The fair value of the Company’s borrowed funds are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements and are measured utilizing Level 2 inputs. Subordinated Debt —The fair values of subordinated debentures and notes are estimated using discounted cash flow analyses based on the Company’s current borrowing rates for similar types of borrowing arrangements and are measured utilizing Level 2 inputs. Off-balance sheet instruments —The fair values of off-balance sheet commitments to extend credit and standby letters of credit financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The Company has reviewed the unfunded portion of commitments to extend credit as well as standby and other letters of credit and has determined that the fair value of such financial instruments is not material. The following tables present fair values for assets measured at fair value on a recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,199 $ — $ 26,199 Municipal securities — 427,605 — 427,605 Agency mortgage-backed pass-through securities — 171,289 — 171,289 Agency collateralized mortgage obligations — 84,370 — 84,370 Corporate bonds and other — 63,427 — 63,427 Total available for sale securities $ — $ 772,890 $ — $ 772,890 Financial liabilities Interest rate swap $ — $ 1,252 $ — $ 1,252 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 2020 or 2019. Assets measured at fair value on a nonrecurring basis are summarized in the table below. There were no liabilities measured at fair value on a nonrecurring basis at December 31, 2020 and 2019. As of December 31, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Collateral Dependent Loans: Commercial and industrial $ — $ — $ 8,650 Commercial real estate (including multi- family residential) — — 2,594 Commercial real estate construction and land development — — 53 1-4 family residential (including home equity) — — 1,873 Residential construction — — — Consumer and other — — 529 Other real estate owned — — 9,196 $ — $ — $ 22,895 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 Historically, the Company measures fair value for certain loans and other real estate owned on a nonrecurring basis as described below. Collateral Dependent Loans Specific Allocation of Allowance for Credit Losses on Loans A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The allowance for credit losses on loans 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 loan’s collateral is generally determined by third-party appraisals or internal evaluations, 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 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 client and client’s business. 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 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 December 31, 2020, the balance of other real estate owned was $9.2 million consisting primarily of foreclosed commercial real estate properties recorded as a result of obtaining physical possession of the property. The Company had $8.3 million of other real estate owned at December 31, 2019. As of December 31, 2020 and 2019, no valuation allowance was recorded. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
PREMISES AND EQUIPMENT | 8. PREMISES AND EQUIPMENT Premises and equipment are summarized as follows: As of December 31, 2020 2019 (Dollars in thousands) Land $ 13,913 $ 13,913 Buildings 39,998 36,826 Lease right-of-use assets 11,610 11,180 Leasehold improvements 5,689 4,522 Furniture, fixtures and equipment 16,106 13,612 Construction in progress 2 250 Total 87,318 80,303 Less: accumulated depreciation 16,633 13,513 Premises and equipment, net $ 70,685 $ 66,790 Depreciation expense was $3.7 million for the year ended December 31, 2020 and $3.2 million for the year ended December 31, 2019. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | 9. 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 years ended December 31, 2020 and 2019. At December 31, 2020, the Company had 14 leases consisting of branch locations and office space along with equipment. On the December 31, 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 year 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: December 31, 2020 December 31, 2019 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 11,610 $ 11,180 Operating lease liability classified as other liabilities $ 11,850 $ 11,477 Weighted average lease term, in years 5.56 5.53 Weighted average discount rate 2.86 % 3.19 % Lease costs for the dates indicated is as follows: For the Years Ended December 31, 2020 2019 (Dollars in thousands) Income Statement: Operating lease cost $ 3,270 $ 3,073 Short-term lease cost 78 553 Sublease income (66 ) (72 ) Total operating lease costs $ 3,282 $ 3,554 A maturity analysis of the Company’s lease liabilities is as follows: December 31, 2020 December 31, 2019 (Dollars in thousands) Lease payments due: Within one year $ 3,068 $ 2,867 After one but within two years 2,664 2,608 After two but within three years 2,056 2,204 After three but within four years 1,591 1,596 After four but within five years 1,057 1,131 After five years 2,355 2,162 Total lease payments 12,791 12,568 Discount on cash flows 941 1,091 Total lease liability $ 11,850 $ 11,477 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2020 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | 10. DEPOSITS Time deposits that meet or exceed the Federal Deposit Insurance Corporation (the “FDIC”) insurance limit of $250 thousand at December 31, 2020 and December 31, 2019 were $726.8 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 $ 872,599 After one but within two years 313,154 After two but within three years 92,863 After three but within four years 39,782 After four but within five years 28,251 Total $ 1,346,649 The Company had $453.8 million and $263.5 million of brokered deposits as of December 31, 2020 and 2019, respectively. There were no concentrations of deposits with any one depositor at December 31, 2020 or 2019. Related party deposits from principal officers, directors and their affiliates at December 31, 2020 and 2019 were $9.2 million. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 11. DERIVATIVE INSTRUMENTS During 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 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 December 31, 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 4.02 0.64% 3 month LIBOR $ 100,000 $ (1,252 ) The effects of the Company’s cash flow hedge relationship on the statement of comprehensive income during the years ended December Amount of Loss Recognized in Other Comprehensive Loss For the Years Ended December 31, 2020 2019 (Dollars in thousands) Liability derivatives Interest rate swaps $ (989 ) $ — 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 December December Losses totaling $76 thousand, net of tax, were reclassified from accumulated other comprehensive income into net income during the year ended December 31, 2020. |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | 12. BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the 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 December 31, 2020, the Company had total borrowing capacity of $1.99 billion, of which $1.44 billion was available under this agreement and $550.2 million was outstanding. FHLB advances of $140.0 million were outstanding at December 31, 2020, at a weighted average rate of 1.19%. Letters of credit were $410.2 million at December 31, 2020, of which $248.4 million will expire in 2021, $151.7 million will expire in 2022 and $10.1 million will expire in 2023. 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 for the following years 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. The credit agreement contains certain restrictive covenants. At December 31, 2020, the Company believes it was in compliance with all such debt covenants and had not been made aware of any noncompliance by the lender. The interest rate on the debt is the Prime Rate minus 25 basis points, or 3.00%, at December 31, 2020, and is paid quarterly. Scheduled principal maturities are as follows (dollars in thousands): 2021 $ — 2022 — 2023 — 2024 569 2025 and thereafter 15,000 Total $ 15,569 |
SUBORDINATED DEBT
SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | 13. SUBORDINATED DEBT Junior Subordinated Debentures On January 1, 2015, the Company acquired F&M Bancshares and assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III with an aggregate original principal amount of $11.3 million and a current carrying value of $9.6 million at December 31, 2020. 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. Each of the 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 each trust, provided such trust has funds available for such obligations. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. 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. A summary of pertinent information related to the Company's issuances of junior subordinated debentures outstanding at December 31, 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 December 31, 2020 was 0.23364%. (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 "Notes") due December 15, 2027. The 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 used the net proceeds from the offering to support its growth and for general corporate purposes. The Notes are intended to qualify as Tier 2 capital for bank regulatory purposes. The 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 Notes will bear a floating rate of interest equal to 3-Month LIBOR + 3.03% until the Notes mature on December 15, 2027, or such earlier redemption date, payable quarterly in arrears. The 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 Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The 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 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 | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES The components of the provision for federal income taxes are as follows: For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Current $ 17,527 $ 13,514 $ 8,204 Deferred (7,090 ) (87 ) (256 ) Total $ 10,437 $ 13,427 $ 7,948 Reported income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate to income before income taxes for the years ended December 31, 2020, 2019 and 2018 due to the following: For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Taxes calculated at statutory rate $ 11,754 $ 13,940 $ 9,504 Increase (decrease) resulting from: Stock based compensation 136 (11 ) (400 ) Effect of tax-exempt income (1,475 ) (698 ) (1,284 ) Other, net 22 196 128 Total $ 10,437 $ 13,427 $ 7,948 The Company recognized net tax shortfall related to stock based compensation totaling $136 thousand in 2020, compared to net tax benefits of $11 thousand in 2019 and $400 thousand in 2018. Year-end deferred taxes are presented in the table below. Deferred taxes as of December 31, 2020 and 2019 are based on the 21% Deferred tax assets and liabilities are as follows: As of December 31, 2020 2019 (Dollars in thousands) Deferred tax assets: Allowance for credit losses $ 12,590 $ 6,432 Deferred loan fees 3,164 — Deferred compensation 655 855 Cash flow hedge 263 — Other deferred assets 342 — Total deferred tax assets 17,014 7,287 Deferred tax liabilities: Core deposit intangible and other purchase accounting adjustments (3,964 ) (3,591 ) Net unrealized gain on available for sale securities (9,417 ) (1,307 ) Premises and equipment basis difference (2,573 ) (2,099 ) Total deferred tax liabilities (15,954 ) (6,997 ) Net deferred tax assets $ 1,060 $ 290 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 years ended December 31, 2020, 2019 and 2018. The Company is no longer subject to examination by the US Federal Tax Jurisdiction for the years prior to 2017. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK BASED COMPENSATION | 15. STOCK BASED COMPENSATION At December 31, 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 and its affiliates. 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 $3.4 million, $3.1 million and $1.7 million for the years ended December 31, 2020, 2019 and 2018, respectively. Stock Options Options to purchase a total of 1,309,231 shares of Company stock have been granted as of December 31, 2020. There were no stock options granted during 2020 and 2019. Under the Plan, options are exercisable up to 10 years from the date of the grant and, dependent on the terms of the applicable award agreement generally vest 4 years after the date of grant. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes model. A summary of the activity in the stock option plans during the years ended December 31, 2020 and 2019 is set forth below: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contractual Term Value (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2019 802 $ 18.88 4.61 $ 10,830 Options granted — — Options exercised (179 ) 15.16 Options forfeited (7 ) 24.18 Options outstanding, December 31, 2019 616 $ 19.90 4.00 $ 10,904 Options granted — — Options exercised (141 ) 15.72 Options forfeited (6 ) 20.36 Options outstanding, December 31, 2020 469 $ 21.08 3.43 $ 6,118 Options vested and exercisable, December 31, 2020 455 $ 20.58 3.34 $ 6,164 The Company expects all outstanding options at December 31, 2020 to vest. Information related to the stock option plans during each year is as follows: 2020 2019 2018 (Dollars in thousands, except per share data) Intrinsic value of options exercised $ 734 $ 751 $ 3,254 Cash received from option exercises 2,221 2,709 3,393 Weighted average fair value of options granted $ — $ — $ 18.00 As of December 31, 2020, there was $110 thousand of total unrecognized compensation cost related to nonvested stock options granted under the plans. The cost is expected to be recognized over a weighted-average period of 0.53 years. Restricted Stock Awards The Company has issued 378,091 restricted stock awards under the Plan as of December 31, 2020. During 2019, the Company awarded 87,950 shares of restricted stock with a weighted average grant date fair value of $34.97. During 2020, the Company awarded 63,596 shares of restricted stock with a weighted average grant date fair value of $22.59. The shares of restricted stock generally vest over a period of 4 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 as of December 31, 2020 and 2019 including changes during the years then ended is as follows: Weighted Average Grant Number of Date Fair Shares Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2019 143 $ 37.48 Share awards granted 88 34.97 Share awards vested (45 ) 36.70 Unvested share awards forfeited or cancelled (19 ) 38.46 Nonvested share awards outstanding, December 31, 2019 167 $ 36.23 Share awards granted 64 22.59 Share awards vested (60 ) 33.97 Unvested share awards forfeited or cancelled (13 ) 37.92 Nonvested share awards outstanding, December 31, 2020 158 $ 30.78 At December 31, 2020, there was $4.3 million of unrecognized compensation expense related to the restricted stock awards which is expected to be recognized over a weighted-average period of 2.28 years. The total fair value of restricted stock awards that fully vested during the years ended December 31, 2020, 2019 and 2018 was approximately $2.0 million, $1.6 million and $621 thousand, respectively. Performance Share Units (“PSUs”) PSUs are earned subject to certain performance goals being met after the two-year one-year |
OTHER EMPLOYEE BENEFITS
OTHER EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
OTHER EMPLOYEE BENEFITS | 16. OTHER EMPLOYEE BENEFITS 401(k) benefit plan The Company has a 401(k) benefit plan whereby participants may contribute a percentage of their compensation. The Company matches 50% of an employee's contributions up to 6% of the employee’s compensation, for a maximum match of 3% of compensation. Matching contribution expense as of December 31, 2020, 2019 and 2018 was $1.4 million, $1.4 million and $962 thousand, respectively. Profit sharing plan The financial statements include an accrual for $3.5 million, $3.7 million and $2.5 million for a contribution to the plan as a profit sharing contribution for the years ended December 31, 2020, 2019 and 2018, respectively. Employee Stock Purchase Plan The Company offers its employees an opportunity to purchase shares of Allegiance’s common stock, pursuant to the terms of the Allegiance Bancshares, Inc. 2019 Amended and Restated Employee Stock Purchase Plan (“ESPP”). The ESPP was adopted by the Board of Directors to provide employees with an opportunity to purchase shares of Allegiance in order to provide employees a more direct opportunity to participate in the Company’s growth. The Company allows employees to purchase shares at a 15% discount to market value and thus incurs stock based compensation expense for the fair value of the discount given. The Company recognized total stock based compensation expense of $ 142 thousand, $ 210 thousand and $ thousand for the years ended D ecember 31, 20 20 , 201 9 , and 201 8 respectively. |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 17. 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 and commercial 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. Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed do not necessarily represent future cash funding requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. The amount and type of collateral, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Standby Letters of Credit Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, the Company has the rights to the underlying collateral. The credit risk to the Company in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. The Company’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. The contractual amounts of financial instruments with off-balance sheet risk are as follows: December 31, 2020 December 31, 2019 Fixed Variable Fixed Variable Rate Rate Rate Rate (Dollars in thousands) Commitments to extend credit $ 761,938 $ 480,067 $ 507,411 $ 531,470 Standby letters of credit 9,252 8,003 10,843 4,309 Total $ 771,190 $ 488,070 $ 518,254 $ 535,779 Commitments to make loans are generally made for periods of 120 days or less. As of December 31, 2020, the fixed rate loan commitments have interest rates ranging from 1.20% to 18.00% with a weighted average maturity and rate of 3.53 years and 5.13%, respectively. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2020 | |
Banking And Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | 18. 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, additionally 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 initiate actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Management believes as of December 31, 2020 and 2019, the Company and the Bank met all capital adequacy requirements to which they were 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 adequately 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. At year-end 20 20 and 201 9 , the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. The following is a summary of the Company’s and the Bank’s actual and required capital ratios at December 31, 2020 and 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 December 31, 2020 Total Capital (to risk weighted assets) $ 642,155 15.71 % $ 327,084 8.00 % $ 429,298 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 482,643 11.80 % 183,985 4.50 % 286,199 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 492,281 12.04 % 245,313 6.00 % 347,527 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 492,281 8.51 % 231,518 4.00 % 231,518 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 December 31, 2020 Total Capital (to risk weighted assets) $ 635,223 15.55 % $ 326,804 8.00 % $ 428,931 10.50 % $ 408,506 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 183,828 4.50 % 285,954 7.00 % 265,529 6.50 % Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 245,103 6.00 % 347,230 8.50 % 326,804 8.00 % Tier 1 Capital (to average tangible assets) 544,331 9.41 % 231,334 4.00 % 231,334 4.00 % 289,167 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 % Dividend Restrictions Allegiance's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. In addition, Allegiance's credit agreement with another financial institution also limits its ability to pay dividends. Under applicable banking regulations, the amount of dividends that may be paid by the Bank in any calendar year is limited to the current year’s net profits combined with the retained net profits of the preceding two years, subject to the capital requirements described above. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | 1 9 . 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 and PSUs issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Common shares issuable under restricted stock awards are considered outstanding at the date of grant and are accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. For the Years Ended December 31, 2020 2019 2018 Per Share Per Share Per Share Amount Amount Amount Amount Amount Amount (Amounts in thousands, except per share data) Net income attributable to shareholders $ 45,534 $ 52,959 $ 37,309 Basic: Weighted average shares outstanding 20,415 $ 2.23 21,152 $ 2.50 15,485 $ 2.41 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 131 272 288 Total 20,546 $ 2.22 21,424 $ 2.47 15,773 $ 2.37 Stock options for 39,050, 23,125 and 54,175 shares were not considered in computing diluted earnings per share as of December 31, 2020, 2019 and 2018, respectively, because they were antidilutive. |
PARENT COMPANY ONLY FINANCIAL S
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY ONLY FINANCIAL STATEMENTS | 20. PARENT COMPANY ONLY FINANCIAL STATEMENTS ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2020 2019 (Dollars in thousands) ASSETS Cash and due from banks $ 19,340 $ 17,775 Investment in subsidiary 820,699 760,131 Other assets 2,691 1,665 TOTAL $ 842,730 $ 779,571 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES: Other borrowed funds $ 15,514 $ 504 Subordinated debentures 68,577 68,184 Accrued interest payable and other liabilities (30 ) 1,018 Total liabilities 84,061 69,706 SHAREHOLDERS’ EQUITY: Common stock 20,208 20,524 Capital surplus 508,794 521,066 Retained earnings 195,236 163,375 Accumulated other comprehensive income 34,431 4,900 Total shareholders’ equity 758,669 709,865 TOTAL $ 842,730 $ 779,571 ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) OPERATING INCOME: Other income $ 16 $ 25 $ 16 Total income 16 25 16 OPERATING EXPENSE: Interest expense on borrowed funds 3,497 1,459 38 Other expenses 1,595 1,922 1,692 Total operating expense 5,092 3,381 1,730 Income before income tax benefit and equity in undistributed income of subsidiaries (5,076 ) (3,356 ) (1,714 ) Income tax benefit 1,066 705 360 Income before equity in undistributed income of subsidiaries (4,010 ) (2,651 ) (1,354 ) Dividends from subsidiary and equity in undistributed income of subsidiaries 49,544 55,610 38,663 Net income $ 45,534 $ 52,959 $ 37,309 ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 45,534 $ 52,959 $ 37,309 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries (49,544 ) (55,610 ) (38,663 ) Net amortization of discount on subordinated debentures 392 169 110 Stock based compensation expense 3,425 3,100 1,685 Increase in other assets (1,026 ) (639 ) (236 ) (Decrease) increase in accrued interest payable and other liabilities (1,038 ) 166 279 Net cash (used in) provided by operating activities (2,257 ) 145 484 CASH FLOWS FROM INVESTING ACTIVITIES: Dividend from subsidiary 13,000 7,500 — Capital investment in bank subsidiary — — — Net cash provided by investing activities 13,000 7,500 — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock, stock option exercises and the ESPP 2,569 3,412 3,552 Net increase in borrowings under credit agreement 15,000 — — Proceeds from subordinated notes issuance, net of offering expenses — 58,601 — Dividends paid to common shareholders (8,165 ) — — Repurchase of common stock (18,582 ) (58,663 ) (2,113 ) Net cash (used in) provided by financing activities (9,178 ) 3,350 1,439 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,565 10,995 1,923 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,775 6,780 4,857 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 19,340 $ 17,775 $ 6,780 |
QUARTERLY FINANCIAL DATA (UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (UNAUDITED) | 21. QUARTERLY FINANCIAL DATA (UNAUDITED) Earnings Per Share (1) Interest Income Net Interest Income Net Income Attributable to Common Shareholders Basic Diluted (Dollars in thousands, except per share data) 2020 First quarter (2) $ 57,452 $ 45,025 $ 3,516 $ 0.17 $ 0.17 Second quarter (2) 60,452 50,847 9,907 0.49 0.48 Third quarter (2) 60,811 51,909 16,170 0.79 0.79 Fourth quarter 63,047 54,902 15,941 0.78 0.77 2019 First quarter $ 57,149 $ 44,603 $ 12,678 $ 0.58 $ 0.58 Second quarter 58,946 45,571 14,248 0.67 0.66 Third quarter 58,665 44,837 12,047 0.57 0.57 Fourth quarter 58,147 44,526 13,986 0.68 0.67 (1) Earnings per share are computed independently for each of the quarters presented and therefore may not total earnings per share for the year. (2) Does not reflect the adoption of ASC 326. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 22. SUBSEQUENT EVENT Dividend Declaration On January 27, 2021, the Company declared a cash dividend of $0.12 per share of common stock to be paid on March 15, 2021 to all shareholders of record as of February 26, 2021. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation- The consolidated financial statements include 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. Intercompany transactions and balances are eliminated in consolidation under U.S. generally accepted accounting principles (“GAAP”). The Company derives substantially all of its revenues and income from the operation of the Bank. Allegiance Bank is a Texas banking association which began operations in October 2007. 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 mid-sized businesses, professionals and individuals through its 28 offices, with 27 bank offices in the Houston metropolitan area and one office in Beaumont, just outside of the Houston metropolitan area, as of the year ended December 31, 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. |
Use of Estimates | Use of Estimates— The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions based on available information. These estimates and assumptions affect the reporting of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Acquisitions | Acquisitions – On October 1, 2018, Allegiance completed the acquisition of Post Oak Bancshares, Inc. On February 1, 2019, Allegiance completed the acquisition of the LoweryBank branch, the Sugar Land location of Huntington State Bank. See Note 2 – Acquisitions for additional information pertaining to the Post Oak and LoweryBank acquisitions and the impact of the Post Oak transaction on the Company’s consolidated financial statements. |
Cash and cash equivalents | Cash and cash equivalents —Cash and cash equivalents include cash, deposits with other financial institutions with maturities not greater than one year. Net cash flows are reported for customer loan and deposit transactions. |
Securities | Securities —Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value. Unrealized gains and losses are excluded from earnings and reported, net of tax, as a separate component of shareholders’ equity until realized. Securities within the available for sale portfolio may be used as part of the Company’s asset/liability strategy and may be sold in response to changes in interest rate risk, prepayment risk or other similar economic factors. Interest earned on these assets is included in interest income. Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. |
Loans | Loans —Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost net of the allowance for credit losses on loans. Amortized cost is the principal balance outstanding, net of purchase accounting adjustments and deferred fees and costs. Accrued interest receivable on loans totaled $34.5 million at December 31, 2020 and was reported in accrued interest receivable on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of origination costs, are deferred and recognized in interest income using the interest method without anticipating prepayments. Interest income on loans is discontinued and placed on nonaccrual status at the time the loan is 90 days delinquent. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Loans are returned to accrual status when all the principal and interest amount contractually due are brought current and future payments are reasonably assured. |
Purchased Credit Deteriorated (PCD) Loans | Purchased Credit Deteriorated (PCD) Loans —Upon adoption of ASC 326, the allowance for credit losses was determined for each loan and added to the loan’s carrying amount to establish a new amortized cost basis. The difference between the unpaid principal balance of the loan and the new amortized cost basis was the noncredit premium or discount which was amortized into interest income over the remaining life of the loan. Changes to the allowance for credit losses after adoption are recorded through provision expense. |
Nonrefundable Fees and Costs Associated with Lending Activities | Nonrefundable Fees and Costs Associated with Lending Activities —Loan commitment and loan origination fees, and certain direct origination costs, are deferred and recognized in interest income as an adjustment to yield without anticipating prepayments using the interest method over the related loan life or; if the commitment expires unexercised, balances are recognized in income upon expiration of the commitment. |
Nonperforming and Past Due Loans | Nonperforming and Past Due Loans —The Company has several procedures in place to assist it in maintaining the overall quality of its loan portfolio. The Company has established underwriting guidelines to be followed by its officers, and monitors its delinquency levels for any negative or adverse trends. There can be no assurance, however, that the Company’s loan portfolio will not become subject to increasing pressures from deteriorating borrower credit due to general economic conditions or other factors. Past due status is based on the contractual terms of the loan. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The Company generally classifies a loan as nonperforming, automatically places the loan on nonaccrual status, ceases accruing interest and reverses all unpaid accrued interest against interest income, when, in management’s opinion, the borrower may be unable to meet payment obligations, when the payment of principal or interest on a loan is delinquent for 90 days, as well as when required by regulatory provisions, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. Any payments received on nonaccrual loans are applied first to outstanding loan amounts. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Any excess is treated as recovery of lost interest. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan. Nonaccrual loans and loans past due 90 days include both smaller balance homogeneous loans that are collectively and individually evaluated. When available information confirms that specific loans, or portions thereof, are uncollectible, these amounts are charged-off against the allowance. All loan types are considered delinquent after 30 days past due and are typically charged-off or charged-down no later than 120 days past due, with consideration of, but not limited to, the following criteria in determining the need and timing of the charge-off or charge-down: (1) the Bank is in the process of repossession or foreclosure and there appears to be a likely deficiency; (2) the collateral securing the loan has been sold and there is an actual deficiency; (3) the Bank is proceeding with lengthy legal action to collect its balance; (4) the borrower is unable to be located; or (5) the borrower has filed bankruptcy. Charge-offs occur when the Company confirms a loss on a loan. |
Acquired Loans | Acquired Loans — Acquired loans are recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Certain larger purchased loans are individually evaluated while certain purchased loans are grouped together according to similar risk characteristics and are treated in the aggregate when applying various valuation techniques. These cash flow evaluations are inherently subjective as they require material estimates, all of which may be susceptible to significant change. Prior to the adoption of ASC Topic 326 on January 1, 2020, loans acquired in a business combination that had evidence of deterioration of credit quality since origination and for which it was probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable were considered purchased credit impaired (“PCI”). PCI loans were individually evaluated and recorded at fair value at the date of acquisition with no initial valuation allowance based on a discounted cash flow methodology that considers various factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and a discount rate reflecting the Company’s assessment of risk inherent in the cash flow estimates. Increases in expected cash flows, including prepayments, subsequent to the initial investment were recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows were recognized as impairment. Valuation allowances on PCI loans reflected only losses incurred after the acquisition (meaning the present value of all cash flows expected at acquisition that ultimately are not to be received). Subsequent to January 1, 2020, loans acquired in a business combination that have experienced more-than-insignificant deterioration in credit quality since origination are considered purchased credit deteriorated (“PCD”) loans. At the acquisition date, an estimate of expected credit losses is made for groups of PCD loans with similar risk characteristics and individual PCD loans without similar risk characteristics. This initial allowance for credit losses is allocated to individual PCD loans and added to the purchase price or acquisition date fair values to establish the initial amortized cost basis of the PCD loans. As the initial allowance for credit losses is added to the purchase price, there is no credit loss expense recognized upon acquisition of a PCD loan. Any difference between the unpaid principal balance of PCD loans and the amortized cost basis is considered to relate to noncredit factors and results in a discount or premium. Discounts and premiums are recognized through interest income on a level-yield method over the life of the loans. All loans considered to be PCI prior to January 1, 2020 were converted to PCD on that date. For acquired loans not deemed purchased credit deteriorated at acquisition, the differences between the initial fair value and the unpaid principal balance are recognized as interest income on a level-yield basis over the lives of the related loans. At the acquisition date, an initial allowance for expected credit losses is estimated and recorded as a provision for credit losses expense. The subsequent measurement of expected credit losses for all acquired loans is the same as the subsequent measurement of expected credit losses for originated loans. |
Allowance for Credit Losses | A llowance for Credit Losses – Allowance for Credit Losses on Loans - Effective January 1, 2020, the Company adopted ASU 2016-13 Financial Instruments – Credit Losses (ASC Topic 326): Measurement of Credit Losses on Financial Instruments , which replaced the incurred loss methodology with an expected loss methodology that is referred to as the CECL methodology. The level of the allowance is based upon management's evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay a loan (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The allowance for credit losses on loans maintained by management is believed adequate to absorb all expected future losses in the loan portfolio at the balance sheet date. The Company disaggregates the loan portfolio into pools for purposes of determining the allowance for credit losses. These pools are based on the level at which the Company develops, documents and applies a systematic methodology to determine the allowance for credit losses. Loans with similar risk characteristics are collectively evaluated resulting in loss estimates as determined by applying reserve factors, such as historical lifetime loan loss experience, concentration risk of specific loan types, the volume, growth and composition of the Company’s loan portfolio, current economic conditions and reasonable and supportable forecasted economic conditions that may affect the borrower’s ability to pay and the value of collateral, the evaluation of the Company’s loan portfolio through its internal loan review process, general economic conditions and other qualitative risk factors both internal and external to the Company and other relevant factors, designed to estimate current expected credit losses, to amortized cost balances over the remaining contractual life of the collectively evaluated portfolio. Loans with similar risk characteristics are aggregated into homogeneous pools for assessment. Historical lifetime loan loss experience is determined by utilizing an open-pool (“cumulative loss rate”) methodology. Adjustments to the historical lifetime loan loss experience are made for differences in current loan pool risk characteristics such as portfolio concentrations, delinquency, nonaccrual, and watch list levels, as well as changes in current and forecasted economic conditions such as unemployment rates, property and collateral values, and other indices relating to economic activity. Losses are predicted over a period of time determined to be reasonable and supportable, and at the end of the reasonable and supportable period losses are reverted to long term historical averages. The reasonable and supportable period and reversion period are re-evaluated each year by the Company and are dependent on the current economic environment among other factors. A reasonable and supportable period of twelve months was utilized for all loan pools, followed by an immediate reversion to long term averages. Based on a review of these factors for each loan type, the Company applies an estimated percentage to the outstanding balance of each loan type. Loans that no longer share risk characteristics with the collectively evaluated loan pools are evaluated on an individual basis and are excluded from the collectively evaluated pools. In order to assess which loans are to be individually evaluated, the Company follows a loan review program to evaluate the credit risk in the total loan portfolio and assigns risk grades to each loan. Individual credit loss estimates are typically performed for nonaccrual loans, modified loans classified as troubled debt restructurings and all other loans identified by management. All loans deemed as being individually evaluated are reviewed on a quarterly basis in order to determine whether a specific reserve is required. The Company considers certain loans to be collateral dependent if the borrower is experiencing financial difficulty and management expects repayment for the loan to be substantially through the operation or sale of the collateral. For collateral dependent loans, loss estimates are based on the fair value of collateral, less estimated cost to sell (if applicable). Collateral values supporting individually evaluated loans are assessed quarterly and appraisals are typically obtained at least annually. The Company allocates a specific loan loss reserve on an individual loan basis primarily based on the value of the collateral securing the individually evaluated loan. Through this loan review process, the Company assesses the overall quality of the loan portfolio and the adequacy of the allowance for credit losses on loans while considering risk elements attributable to particular loan types in assessing the quality of individual loans. In addition, for each category of loans, the Company considers secondary sources of income and the financial strength and credit history of the borrower and any guarantors. A change in the allowance for credit losses on loans can be attributable to several factors, most notably specific reserves for individually evaluated loans, historical lifetime loan loss information, and changes in economic factors and growth in the loan portfolio. Specific reserves that are calculated on an individual basis and the qualitative assessment of all other loans reflect current changes in the credit quality of the loan portfolio. Historical lifetime credit losses, on the other hand, are based on an open-pool (“cumulative loss rate”) methodology, which is then applied to estimate lifetime credit losses in the loan portfolio. The allowance for credit losses on loans is further determined by the size of the loan portfolio subject to the allowance methodology and factors that include Company-specific risk indicators and general economic conditions, both of which are constantly changing. The Company evaluates the economic and portfolio-specific factors on a quarterly basis to determine a qualitative component of the general valuation allowance. These factors include current economic metrics, reasonable and supportable forecasted economic metrics, delinquency trends, credit concentrations, nature and volume of the portfolio and other adjustments for items not covered by specific reserves and historical lifetime loss experience. Based on the Company’s actual historical lifetime loan loss experience relative to economic and loan portfolio-specific factors at the time the losses occurred, management is able to identify the probable level of lifetime losses as of the date of measurement. The Company’s analysis of qualitative, or economic, factors on pools of loans with common risk characteristics, in combination with the quantitative historical lifetime loss information and specific reserves, provides the Company with an estimate of lifetime losses. The calculation of current expected credit losses is inherently subjective, as it requires management to exercise judgment in determining appropriate factors used to determine the allowance. The estimated loan losses for all loan pools are adjusted for changes in qualitative factors not inherently considered in the quantitative analyses to bring the allowance to the level management believes is appropriate based on factors that have not otherwise been fully accounted for, including adjustments for foresight risk, input imprecision and model imprecision. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management, but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting qualitative adjustments are applied to the relevant collectively evaluated loan portfolios. These adjustments are based upon quarterly trend assessments in portfolio concentrations, changes in lending policies and procedures, policy exceptions, independent loan review results, internal risk ratings and peer group credit quality trends. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan pool based on the assessment of these various qualitative factors. The determination of the appropriate qualitative adjustment is based on management's analysis of current and expected economic conditions and their impact to the portfolio, as well as internal credit risk movements and a qualitative assessment of the lending environment, including underwriting standards. Management recognizes the sensitivity of various assumptions made in the quantitative modeling of expected losses and may adjust reserves depending upon the level of uncertainty that currently exists in one or more assumptions. While policies and procedures used to estimate the allowance for credit losses on loans, as well as the resultant provision for credit losses charged to income, are considered adequate by management and are reviewed periodically by regulators and internal audit, they are approximate and could materially change based on changes within the loan portfolio and effects from economic factors. There are factors beyond the Company’s control, such as changes in projected economic conditions, including political instability or global events affecting the U.S. economy, real estate markets or particular industry conditions which could cause changes to expectations for current conditions and economic forecasts that could result in an unanticipated increase in the allowance and may materially impact asset quality and the adequacy of the allowance for credit losses and thus the resulting provision for credit losses. In assessing the adequacy of the allowance for credit losses on loans, the Company considers the results of its ongoing independent loan review process. The Company undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers and reviews that may have been conducted by third-party reviewers including regulatory examiners. The Company incorporates relevant loan review results in the allowance. In accordance with CECL, losses are estimated over the remaining contractual terms of loans, adjusted for prepayments. The contractual term excludes expected extensions, renewals and modifications unless management has a reasonable expectation at the reporting date that a troubled debt restructuring will be executed or such renewals, extensions or modifications are included in the original loan agreement and are not unconditionally cancellable by the Company. Credit losses are estimated on the amortized cost basis of loans, which includes the principal balance outstanding, purchase discounts and premiums and deferred loan fees and costs. Loan losses are not estimated for accrued interest receivable as interest that is deemed uncollectible is written off through interest income in a timely manner. Accrued interest is presented separately on the balance sheets and as allowed under ASC Topic 326 is excluded from the tabular loan disclosures in Note 6 – Loans and Allowance for Credit Losses. Allowance for Credit Losses on Unfunded Commitments - The Company estimates expected credit losses over the contractual term in which the Company is exposed to credit risk through a contractual obligation to extend credit, unless the obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is adjusted as a provision for credit loss expense. The estimates are determined based on the likelihood of funding during the contractual term and an estimate of credit losses subsequent to funding. Estimated credit losses on subsequently funded balances are based on the same assumptions as used to estimate credit losses on existing funded loans. Allowance for Credit Losses - Securities Available for Sale – For securities classified as available for sale that are in an unrealized loss position at the balance sheet date, the Company first assesses whether or not it intends to sell the security, or more likely than not will be required to sell the security, before recovery of its amortized cost basis. If either criteria is met, the security's amortized cost basis is written down to fair value through net income. If neither criteria is met, the Company evaluates whether any portion of the decline in fair value is the result of credit deterioration. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. If the evaluation indicates that a credit loss exists, an allowance for credit losses is recorded through provisions for credit losses for the amount by which the amortized cost basis of the security exceeds the present value of cash flows expected to be collected, limited by the amount by which the amortized cost exceeds fair value. Losses are charged against the allowance when management believes the uncollectibility of an available for sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Any impairment not recognized in the allowance for credit losses is recognized in other comprehensive income. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. The zero-loss expectation applies to all of the Company’s securities and no allowance for credit losses was recorded on its available for sale securities portfolio at transition. Prior to the adoption of ASU 2016-13, declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to January 1, 2020, management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Accrued interest receivable on available for sale securities totaled $5.5 million at December 31, 2020 and is excluded from the estimate of credit losses. |
Troubled debt restructurings (TDRs) | Troubled debt restructurings (TDRs) — Loans for which terms have been modified in a TDR are evaluated using these same individual evaluation methods. For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for credit losses. The Company assesses the exposure for each modification, by collateral discounting and determines if a specific allocation to the allowance for credit losses is needed. Once an obligation has been restructured because of such credit problems, it continues to be considered a troubled debt restructuring until paid in full. The Company returns troubled debt restructurings to accrual status only if (1) all contractual amounts due can reasonably be expected to be repaid within a prudent period and (2) repayment has been in accordance with the contract for a sustained period, typically at least twelve months. |
Premises and Equipment | Premises and Equipment —Premises and equipment are carried at cost less accumulated depreciation. Depreciation expense is calculated principally using the straight-line method over the estimated useful lives of the assets which range from 3 to 40 years. Leasehold improvements are amortized using the straight-line method over the periods of the leases or the estimated useful lives, whichever is shorter. Land is carried at cost. |
Leases | Leases — On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) through the required modified retrospective approach by applying the allowed transition method whereby comparative periods were not restated. The Company elected to apply several of the available practical expedients provided by ASU 2016-12, including carryover of historical lease determination, carryover of historical initial direct cost balances for existing leases and accounting for lease and non-lease components in contracts in which the Company is a lease as a single lease component. Upon adoption of the new leasing standard on January 1, 2019, the Company recognized $15.3 million of right-of-use assets, and $15.7 million of related lease liabilities on the Consolidated Balance Sheet. The Company leases certain office facilities under operating leases. We also own certain office facilities which we lease to outside parties under operating lessor leases; however, such leases are not significant. Under the new standards, for operating leases other than those considered to be short-term, we recognize lease right-of-use assets and related lease liabilities. Such amounts are reported as components of premises and equipment and other liabilities, respectively, on our consolidated balance sheet. |
Other Real Estate Owned | Other Real Estate Owned —Assets acquired through or instead of loan foreclosure are held for sale and are initially recorded at fair value less estimated selling costs when acquired, establishing a new cost basis. Costs after acquisition are generally expensed. If the fair value of the asset declines, a write-down is recorded through expense. The valuation of foreclosed assets is subjective in nature and may be adjusted in the future because of changes in economic conditions. At December 31, 2020, the $9.2 million balance of other real estate owned primarily consisted of foreclosed commercial real estate properties recorded as a result of obtaining physical possession of the property. |
Federal Home Loan Bank ("FHLB") Stock | Federal Home Loan Bank (“FHLB”) Stock— The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest in additional amounts. FHLB stock is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Bank Owned Life Insurance | Bank Owned Life Insurance— The Company purchased bank owned life insurance policies on certain key executives and acquired life insurance policies in conjunction with the acquisitions of F&M Bancshares and Post Oak. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value, and the most reasonable estimate of fair value, adjusted for other charges or other amounts due that are probable at settlement. |
Goodwill | Goodwill —Goodwill resulting from business combinations is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is assessed annually on October 1 for impairment or more frequently if events and circumstances exist that indicate that the carrying amount of the asset may not be recoverable and a goodwill impairment test should be performed. A significant amount of judgment is involved in determining if an indicator of impairment has occurred. Such indicators may include, among others: a significant decline in our expected future cash flows; a sustained, significant decline in our stock price and market capitalization; a significant adverse change in legal factors or in the business climate; adverse action or assessment by a regulator; and unanticipated competition. Any adverse change in these factors could have a significant impact on the recoverability of these assets and could have a material impact on the Company’s consolidated financial statements. Goodwill is the only intangible asset with an indefinite life on the Company’s balance sheet. |
Core Deposit Intangibles | Core Deposit Intangibles —Core deposit and acquired customer relationship intangibles arising from acquisitions are amortized using a straight-line amortization method over their estimated useful lives, which is seven to ten years. |
Borrowed Funds | Borrowed Funds —The Company has a credit agreement with another financial institution. The Company pledged its shares in the Bank’s stock as collateral for the borrowing. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments —Financial instruments include off-balance sheet credit instruments, such as commitments to extend credit, issued to meet customer financing needs. The face amount for these items represents a promise to lend before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Stock Based Compensation | Stock Based Compensation —Compensation cost is recognized for stock options, restricted stock awards and performance share units (“PSUs”) issued to employees and directors, based on the fair value of these awards at the date of grant. The expense associated with stock based compensation is recognized over the required service period, generally defined as the vesting period of each individual arrangement. The fair value of stock options granted are estimated at the date of grant using the Black-Scholes model. The fair value of restricted stock awards is generally the market price of our stock on the date of grant. The grant date fair value of the PSUs is based on the probable outcome of the applicable performance conditions and is calculated at target based on a combination of the closing market price of our common stock on the grant date and a Monte Carlo simulated fair value in accordance with ASC 718. The impact of forfeitures of share-based payment awards on compensation expense is recognized as forfeitures occur. PSUs are contingent upon performance and service conditions, which affect the number of shares ultimately issued. The Company periodically evaluates the probable outcome of the performance conditions and makes cumulative adjustments to compensation expense as appropriate. |
Employee Stock Purchase Plan | Employee Stock Purchase Plan —The cost of shares issued in the ESPP, but not allocated to participants, is shown as a reduction of shareholder’s equity. Compensation expense is based on the market price of the shares as they are committed to be released to participant accounts.The fair value of shares purchased in the plan are estimated at the date of grant using the Black-Scholes model. |
Income Taxes | Income Taxes —Income tax expense is the total of the current year income tax due and the change in deferred tax assets or liabilities. Deferred tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are recorded in other assets on the Company’s consolidated balance sheets. The Company records uncertain tax positions on the basis of a two-step process whereby (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with the related tax authority. For tax positions not meeting the more likely than not test, no tax benefit is recorded. Any interest and/or penalties related to income taxes are reported as a component of income tax expense. The Company files a consolidated federal income tax return. |
Comprehensive Income | Comprehensive income —Comprehensive income consists of net income and other comprehensive income which includes unrealized gains and losses on securities available for sale which are also recognized as separate components of equity. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments —Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. |
Operating Segments | Operating Segments— While management monitors the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. All of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassification | Reclassifications —Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Earnings per Common Share | Earnings per Common Share —Basic earnings per common share is calculated as net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options, performance share unit awards and the Employee Stock Purchase Plan. |
Loss Contingencies | Loss Contingencies —Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Dividend Restrictions | Dividend Restrictions —Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to Allegiance or by Allegiance to its shareholders. In addition, Allegiance's credit agreement with another financial institution also limits its ability to pay dividends. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers —The Company records revenue from contracts with customers in accordance with Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers” (“Topic 606”). Under Topic 606, the Company must identify the contract with a customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize revenue when (or as) the Company satisfies a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, the Company has made no significant judgments in applying the revenue guidance prescribed in ASC 606 that affect the determination of the amount and timing of revenue from contracts with customers. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC Topic 326”) , was issued by the FASB in June 2016 along with subsequent amendments thereto, which introduce the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities measured at amortized cost. ASC Topic 326 also applies to off-balance sheet credit exposures. This methodology replaces the multiple existing impairment methods in current guidance, which generally require that a loss be incurred before it is recognized. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than previous practice. For available for sale debt securities that the Company intends to hold and where fair value is less than cost, credit-related impairment, if any, will be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. CECL became effective for the Company on January 1, 2020 using the modified retrospective approach; however, o n March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed in to law by the President of the United States and allowed the option to temporarily defer or suspend the adoption of AS C Topic 326 . The Company elected to temporarily defer the adoption of CECL 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. During th e deferral, t he Company calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASC Topic 326. The Company adopted the new standard as of January 1, 2020 during the fourth quarter of 2020. Upon adoption of ASC Topic 326, the Company recognized an increase in allowance for credit losses on loans of $3.1 million and the establishment of an allowance for credit losses for off-balance sheet exposure of $3.9 million and a corresponding decrease in retained earnings of $5.5 million, after-tax. The Company adopted ASC Topic 326 using the prospective transition approach for purchased credit deteriorated (“PCD”) loans, which did not require re-evaluation of whether loans previously classified as purchased credit impaired (“PCI”) loans met the criteria of PCD assets at the date of adoption. The Company recognized an increase in the allowance for credit losses for loans of $2.1 million, due to the reclass of PCD discounts previously classified as PCI with a corresponding adjustment to the gross carrying amount of the loans. The remaining noncredit discount was accreted into interest income at the effective interest rate as of January 1, 2020. See Note 6 “Loans and Allowance for Credit Losses” for additional information. The following table illustrates the impact of adopting ASC Topic 326: As of January 1, 2020 As Reported Under ASC Topic 326 Pre-ASC Topic 326 Adoption Impact of ASC Topic 326 Adoption (Dollars in thousands) Assets: Allowance for credit losses on loans: Commercial and industrial $ 15,840 $ 8,818 $ 7,022 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 6,007 11,170 (5,163 ) Commercial real estate construction and land development 6,051 4,421 1,630 1-4 family residential (including home equity) 5,452 3,852 1,600 Residential construction 1,056 1,057 (1 ) Consumer and other 257 120 137 Allowance for credit losses on loans $ 34,663 $ 29,438 $ 5,225 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 3,866 $ — $ 3,866 ASC Topic 326 also requires expected credit losses on available for sale (AFS) debt securities to be recorded as an allowance for credit losses. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. The zero-loss expectation generally applies to the Company’s securities and no allowance for credit losses were recorded on its AFS securities portfolio at transition. See Note 5 “Securities” for additional information. ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. ASU 2017-04 became effective for the Company on January 1, 2020 and did not have a significant impact on the Company's financial statements. ASU 2016-02, “Leases (Topic 842)." ASU 2016-02 requires lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 became effective for the Company on January 1, 2019. The Company adopted the standard through the required modified retrospective approach by applying the allowed transition method whereby comparative periods were not restated and a cumulative effect adjustment to the opening balance of retained earnings was recognized as of January 1, 2019. Topic 842 requires the recognition of a lease liability measured as the present value of unpaid lease payments for operating leases where the Company is the lessee, and a corresponding right-of-use (ROU) asset for the right to use the leased properties. The Company elected not to reassess whether contracts are or contain leases, lease classification or initial direct costs for existing leases, a set of practical expedients for transition provided by ASU 2016-12. Further, the Company elected the practical expedient to use hindsight in determining the lease term and assessing impairment. The election of the hindsight practical expedient resulted in longer lease terms for a limited number of strategic locations based on relevant factors as of the adoption date. The Company implemented a lease management system to assist in centralizing, maintaining and accounting for all leases to ensure the Company meets the ASU’s reporting and disclosure requirements. Prior comparable periods are presented in accordance with previous guidance under Accounting Standards Codification (ASC) 840, “Leases.” As of January 1, 2019, right-of-use assets and related lease liabilities totaled $15.3 million and $15.7 million, respectively. See Note 9 – Leases for further information regarding the Company’s leases on certain properties and equipment under operating leases. 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 No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. Additionally, ASU 2019-12 changes the following current guidance: i) making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations, ii) determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, iii) accounting for tax law changes and year-to-date losses in interim periods, and iv) determining how to apply the income tax guidance to franchise taxes that are partially based on income. ASU 2019-12 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. ASU 2019-12 is not expected to have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2020-04, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting - Accounting Standards Codification (“ASC”) Topic 848." ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The guidance allows for companies to: (i) account for certain contract modifications as a continuation of the existing contract without additional analysis; (ii) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (iii) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available for sale or trading. This ASU is available for adoption effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within ASU 2020-04, the amendments must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates this ASU will simplify any modifications it executes between the selected start date (yet to be determined) and December 31, 2022 that are directly related to the LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees and costs. ASU 2020-04 is not expected to have a significant impact on the Company’s financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Impact of Adopting ASC Topic 326 | The following table illustrates the impact of adopting ASC Topic 326: As of January 1, 2020 As Reported Under ASC Topic 326 Pre-ASC Topic 326 Adoption Impact of ASC Topic 326 Adoption (Dollars in thousands) Assets: Allowance for credit losses on loans: Commercial and industrial $ 15,840 $ 8,818 $ 7,022 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 6,007 11,170 (5,163 ) Commercial real estate construction and land development 6,051 4,421 1,630 1-4 family residential (including home equity) 5,452 3,852 1,600 Residential construction 1,056 1,057 (1 ) Consumer and other 257 120 137 Allowance for credit losses on loans $ 34,663 $ 29,438 $ 5,225 Liabilities: Allowance for credit losses on off-balance sheet exposures $ 3,866 $ — $ 3,866 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
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 final purchase price allocation is as follows (dollars 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 ) |
Schedule of Pro Forma Information | The following table presents unaudited pro forma financial information as if the acquisition had occurred at the beginning of 2017. Post Oak’s results of operations were included in the Company’s results beginning October 1, 2018. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed dates. For the Years Ended December 31, 2018 2017 (Dollars in thousands, except per share data) Net interest income $ 170,801 $ 165,612 Noninterest income 10,060 9,543 Net income 41,807 35,107 Basic earnings per common share 2.70 1.63 Diluted earnings per common share 2.65 1.61 |
PCI Loans | |
Business Acquisition [Line Items] | |
Schedule of PCI Loans and Non-PCI Loans Acquired in Transactions | The following presents information at the acquisition date for PCI loans acquired in the transaction (dollars in thousands): Contractually required principal and interest payments $ 28,340 Contractual cash flows not expected to be collected (nonaccretable difference) (3,163 ) Expected cash flows at acquisition 25,177 Interest component of expected cash flows (accretable yield) (495 ) Fair value of loans acquired with deterioration of credit quality $ 25,672 |
Non-PCI Loans | |
Business Acquisition [Line Items] | |
Schedule of PCI Loans and Non-PCI Loans Acquired in Transactions | The following table presents information at the acquisition date for non-PCI loans acquired in the transaction (dollars in thousands): Contractually required principal and interest payments $ 1,152,892 Accretable discount (13,293 ) Fair value at acquisition $ 1,166,185 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 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 intangibles were as follows: Core Deposit Goodwill Intangibles (Dollars in thousands) Balance as of December 31, 2017 $ 39,389 $ 3,274 Acquisition of Post Oak Bancshares, Inc. 183,736 25,128 Amortization — (1,815 ) 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 — (3,922 ) Balance as of December 31, 2020 $ 223,642 $ 17,954 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangibles remaining as of December 31, 2020 is as follows (dollars in thousands): 2021 $ 3,296 2022 3,003 2023 2,323 2024 2,188 2025 2,061 Thereafter 5,083 Total $ 17,954 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities were as follows: December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in thousands) Available for Sale U.S. government and agency securities $ 25,545 $ 654 $ — $ 26,199 Municipal securities 392,586 35,079 (60 ) 427,605 Agency mortgage-backed pass-through securities 167,606 3,829 (146 ) 171,289 Agency collateralized mortgage obligations 80,182 4,263 (75 ) 84,370 Corporate bonds and other 62,124 1,352 (49 ) 63,427 Total $ 728,043 $ 45,177 $ (330 ) $ 772,890 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 December 31, 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 $ 110 $ 110 Due after one year through five years 12,849 13,412 Due after five years through ten years 105,239 109,238 Due after ten years 362,057 394,471 Subtotal 480,255 517,231 Agency mortgage-backed pass through and collateralized mortgage obligation securities 247,788 255,659 Total $ 728,043 $ 772,890 |
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: December 31, 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 $ 28,659 $ (146 ) $ — $ — $ 28,659 $ (146 ) Agency collateralized mortgage obligations 11,629 (39 ) 4,203 (36 ) 15,832 (75 ) Municipal securities 8,844 (60 ) — — 8,844 (60 ) Corporate bonds and other 15,951 (49 ) — — 15,951 (49 ) Total $ 65,083 $ (294 ) $ 4,203 $ (36 ) $ 69,286 $ (330 ) 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 CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |
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 all made to borrowers located within Texas and are classified by major type as follows: December 31, 2020 December 31, 2019 (Dollars in thousands) Commercial and industrial $ 667,079 $ 689,360 Mortgage warehouse — 8,304 Paycheck Protection Program (PPP) 569,901 — Real estate: Commercial real estate (including multi-family residential) 1,999,877 1,873,782 Commercial real estate construction and land development 367,213 410,471 1-4 family residential (including home equity) 737,605 698,957 Residential construction 127,522 192,515 Consumer and other 22,567 41,921 Total loans 4,491,764 3,915,310 Allowance for credit losses on loans (53,173 ) (29,438 ) Loans, net $ 4,438,591 $ 3,885,872 |
Schedule of Related Party Transactions | An analysis of activity with respect to these related-party loans is as follows: 2020 (Dollars in thousands) Beginning balance on January 1 $ 6,782 New loans and reclassified related loans 90 Repayments and reclassified related loans (5,689 ) Ending balance on December 31 $ 1,183 |
Past Due Financing Receivables | An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. For purposes of this and future disclosures recorded investment has been defined as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $34.5 million and $15.5 million as of December 31, 2020 and 2019, respectively, due to immateriality. December 31, 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 $ 2,486 $ — $ 2,486 $ 10,747 $ 653,846 $ 667,079 Mortgage warehouse — — — — — — Paycheck Protection Program (PPP) — — — — 569,901 569,901 Real estate: Commercial real estate (including multi-family residential) 3,063 — 3,063 10,081 1,986,733 1,999,877 Commercial real estate construction and land development 2,930 — 2,930 3,011 361,272 367,213 1-4 family residential (including home equity) 3,000 — 3,000 4,525 730,080 737,605 Residential construction — — — — 127,522 127,522 Consumer and other 46 — 46 529 21,992 22,567 Total loans $ 11,525 $ — $ 11,525 $ 28,893 $ 4,451,346 $ 4,491,764 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 |
Risk Ratings by Category of Loans | The following table presents risk ratings by category of loan as of December 31, 2020 and 2019: As of December 31, 2020 As of December 31, 2019 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Total (Dollars in thousands) Commercial and industrial Pass $ 149,522 $ 81,526 $ 46,909 $ 17,610 $ 20,955 $ 6,951 $ 239,045 $ — $ 562,518 $ 637,388 Watch 12,755 6,956 6,600 2,436 1,446 1,067 9,766 — 41,026 14,797 Special Mention 758 2,746 3,740 1,860 2,756 — 13,150 — 25,010 10,871 Substandard 12,650 4,272 3,798 7,043 2,577 99 7,946 — 38,385 26,226 Doubtful 69 71 — — — — — — 140 78 Total commercial and industrial loans $ 175,754 $ 95,571 $ 61,047 $ 28,949 $ 27,734 $ 8,117 $ 269,907 $ — $ 667,079 $ 689,360 Mortgage warehouse Pass $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 8,304 Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total mortgage warehouse loans $ — $ — $ — $ — $ — $ — $ — $ — $ — $ 8,304 Paycheck Protection Program (PPP) Pass $ 569,901 $ — $ — $ — $ — $ — $ — $ — $ 569,901 $ — Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ 569,901 $ — $ — $ — $ — $ — $ — $ — $ 569,901 $ — Commercial real estate (including multi-family residential) Pass $ 587,089 $ 321,020 $ 220,554 $ 221,147 $ 156,671 $ 75,353 $ 47,189 $ — $ 1,629,023 $ 1,760,476 Watch 27,851 45,009 23,492 32,567 24,051 23,531 1,150 — 177,651 56,367 Special Mention 10,931 16,452 9,940 12,128 3,243 14,482 1,100 — 68,276 11,974 Substandard 17,391 27,265 18,926 20,688 27,595 10,896 2,166 — 124,927 44,965 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 643,262 $ 409,746 $ 272,912 $ 286,530 $ 211,560 $ 124,262 $ 51,605 $ — $ 1,999,877 $ 1,873,782 Commercial real estate construction and land development Pass $ 172,389 $ 77,535 $ 31,392 $ 16,712 $ 5,098 $ 2,036 $ 14,971 $ — $ 320,133 $ 385,832 Watch 12,801 2,943 4,315 13,157 5,290 515 — — 39,021 9,583 Special Mention 615 1,620 378 — — 267 — — 2,880 639 Substandard 2,958 986 693 — — — 542 — 5,179 14,417 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 188,763 $ 83,084 $ 36,778 $ 29,869 $ 10,388 $ 2,818 $ 15,513 $ — $ 367,213 $ 410,471 The following table presents risk ratings by category of loan as of December 31, 2020 and 2019: As of December 31, 2020 As of December 31, 2019 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total Total (Dollars in thousands) 1-4 family residential (including home equity) Pass $ 212,543 $ 128,835 $ 101,091 $ 67,257 $ 44,666 $ 27,846 $ 87,836 $ — $ 670,074 $ 669,288 Watch 14,153 3,565 4,406 5,994 2,099 3,138 4,312 — 37,667 15,798 Special Mention 6,237 728 4,312 674 2,379 2,006 2,454 — 18,790 5,844 Substandard 1,392 2,308 2,576 1,238 1,869 1,422 269 — 11,074 8,027 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 234,325 $ 135,436 $ 112,385 $ 75,163 $ 51,013 $ 34,412 $ 94,871 $ — $ 737,605 $ 698,957 Residential construction Pass $ 106,804 $ 10,330 $ 5,288 $ 742 $ 1,573 $ — $ — $ — $ 124,737 $ 188,636 Watch 2,036 749 — — — — — — 2,785 2,560 Special Mention — — — — — — — — — — Substandard — — — — — — — — — 1,319 Doubtful — — — — — — — — — — Total residential construction $ 108,840 $ 11,079 $ 5,288 $ 742 $ 1,573 $ — $ — $ — $ 127,522 $ 192,515 Consumer and other Pass (1) $ (6,193 ) $ 20,578 $ 1,537 $ 586 $ 25 $ 122 $ 4,704 $ — $ 21,359 $ 41,355 Watch 57 242 27 — — — 63 — 389 6 Special Mention 231 — 39 — — — — — 270 358 Substandard 491 33 25 — — — — — 549 202 Doubtful — — — — — — — — — — Total consumer and other $ (5,414 ) $ 20,853 $ 1,628 $ 586 $ 25 $ 122 $ 4,767 $ — $ 22,567 $ 41,921 Total loans Pass $ 1,792,055 $ 639,824 $ 406,771 $ 324,054 $ 228,988 $ 112,308 $ 393,745 $ — $ 3,897,745 $ 3,691,279 Watch 69,653 59,464 38,840 54,154 32,886 28,251 15,291 — 298,539 99,111 Special Mention 18,772 21,546 18,409 14,662 8,378 16,755 16,704 — 115,226 29,686 Substandard 34,882 34,864 26,018 28,969 32,041 12,417 10,923 — 180,114 95,156 Doubtful 69 71 — — — — — — 140 78 Total loans $ 1,915,431 $ 755,769 $ 490,038 $ 421,839 $ 302,293 $ 169,731 $ 436,663 $ — $ 4,491,764 $ 3,915,310 (1) Includes net deferred fees of $13.9 million on PPP loans. |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses on loans by portfolio type for the years ended December 31, 2020, 2019 and 2018: 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 credit losses on loans: Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Impact of ASC 326 adoption 7,022 — — (5,163 ) 1,630 1,600 (1 ) 137 5,225 Provision for loan losses 4,363 — — 20,417 3,461 (1,822 ) (186 ) 310 26,543 Charge-offs (2,938 ) — — (2,562 ) (2,573 ) (351 ) — (159 ) (8,583 ) Recoveries 473 — — 72 — — — 5 550 Net charge-offs (2,465 ) — — (2,490 ) (2,573 ) (351 ) — (154 ) (8,033 ) Balance December 31, 2020 $ 17,738 $ — $ — $ 23,934 $ 6,939 $ 3,279 $ 870 $ 413 $ 53,173 Allowance for loan losses: Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 Provision for loan losses 2,881 — — (654 ) 1,741 1,905 17 49 5,939 Charge-offs (2,688 ) — — (80 ) (44 ) (295 ) — (34 ) (3,141 ) Recoveries 274 — — 3 — — — 32 309 Net charge-offs (2,414 ) — — (77 ) (44 ) (295 ) — (2 ) (2,832 ) Balance December 31, 2019 $ 8,818 $ — $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Allowance for loan losses: Balance December 31, 2017 $ 7,694 $ — $ — $ 10,253 $ 2,525 $ 2,140 $ 942 $ 95 $ 23,649 Provision for loan losses 2,234 — — 1,588 199 127 98 2 4,248 Charge-offs (2,424 ) — — (42 ) — (25 ) — (24 ) (2,515 ) Recoveries 847 — — 102 — — — — 949 Net charge-offs (1,577 ) — — 60 — (25 ) — (24 ) (1,566 ) Balance December 31, 2018 $ 8,351 $ — $ — $ 11,901 $ 2,724 $ 2,242 $ 1,040 $ 73 $ 26,331 |
Summary of Activity in Allowance for Credit Losses on Unfunded Commitments | The following table details activity in the allowance for credit losses on unfunded commitments: As of December 31, 2020 (Dollars in thousands) Balance at beginning of period on January 1 $ 3,866 Provision for credit losses on off-balance sheet exposures 831 Balance at end of period on December 31 $ 4,697 |
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses: As of December 31, 2020 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 5,157 $ — $ 5,157 Mortgage warehouse — — — — Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 425 — — 425 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,101 — — 3,101 Residential construction — — — — Consumer and other — — — — Total $ 3,526 $ 5,157 $ — $ 8,683 |
Summary of Nonaccrual Loans | The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,097 $ 8,650 $ 10,747 Mortgage warehouse — — — Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 7,487 2,594 10,081 Commercial real estate construction and land development 2,958 53 3,011 1-4 family residential (including home equity) 2,652 1,873 4,525 Residential construction — — — Consumer and other — 529 529 Total loans $ 15,194 $ 13,699 $ 28,893 |
Impaired Financing Receivables | The following table presents impaired loans at December 31, 2019 as determined under ASC 310 prior to the adoption of ASC Topic 326 by class of loans. 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 year ended December 31, 2019: For the Year Ended December 31, 2019 Average Interest Recorded Income Investment Recognized (Dollars in thousands) Commercial and industrial $ 13,376 $ 399 Mortgage warehouse — — Paycheck Protection Program (PPP) — — Real estate: Commercial real estate (including multi-family residential) 25,856 489 Commercial real estate construction and land development 10,251 185 1-4 family residential (including home equity) 2,058 6 Residential construction 594 — Consumer and other 75 1 PCI 3,133 8 Total $ 55,343 $ 1,088 |
Troubled Debt Restructurings on Financing Receivables | The following table presents information regarding loans modified in a troubled debt restructuring during the years ended December 31, 2020, 2019 and 2018: As of December 31, 2020 2019 2018 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 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 20 $ 4,333 $ 4,333 13 $ 4,358 $ 4,358 11 $ 2,770 $ 2,770 Mortgage warehouse — — — — — — — — — Real estate: Commercial real estate (including multi-family residential) 5 4,560 4,560 1 303 303 3 4,288 4,288 Commercial real estate construction and land development 1 830 830 — — — 1 3,114 3,114 1-4 family residential (including home equity) 5 2,051 2,051 1 396 396 — — — Residential construction — — — — — — — — — Consumer and other 1 30 30 2 43 43 — — — Total 32 $ 11,804 $ 11,804 17 $ 5,100 $ 5,100 15 $ 10,172 $ 10,172 |
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 December 31, 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 $ 667,079 $ 127,689 11.3 % $ 21,747 9.5 % $ 23,822 14.8 % Mortgage warehouse — — 0.0 % — 0.0 % — 0.0 % Paycheck Protection Program (PPP) 569,901 — 0.0 % — 0.0 % — 0.0 % Real estate: Commercial real estate (including multi-family residential) 1,999,877 790,468 69.9 % 171,945 75.5 % 129,067 80.0 % Commercial real estate construction and land development 367,213 88,446 7.8 % 20,032 8.8 % 5,860 3.6 % 1-4 family residential (including home equity) 737,605 118,595 10.5 % 12,922 5.7 % 2,489 1.6 % Residential construction 127,522 4,452 0.4 % 926 0.4 % — 0.0 % Consumer and other 22,567 1,015 0.1 % 172 0.1 % 59 0.0 % Total loans $ 4,491,764 $ 1,130,665 100.0 % $ 227,744 100.0 % $ 161,297 100.0 % |
PCI Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Carrying Amount of PCI Loans | The carrying amount of PCI loans included in the consolidated balance sheet and the related outstanding balance owed at December 31, 2019 are presented in the table below (dollars in thousands): As of December 31, 2019 Outstanding balance $ 16,589 Less: Discount (2,414 ) Less: Allowance (259 ) Recorded investment $ 13,916 |
Non-PCI Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Recorded Investment of Non-PCI Loans | The recorded investment of Non-PCI loans included in the consolidated balance sheet and the related outstanding balance owed are presented in the table below (dollars in thousands). As of December 31, 2019 Outstanding balance $ 672,927 Less: Discount (3,069 ) Recorded investment $ 669,858 |
Changes in or Discount Accretion for Non-PCI Loans | Changes in the discount accretion for Non-PCI loans were as follows (dollars in thousands): As of December 31, 2019 Balance at beginning of period $ 10,650 Additions 573 Accretion (8,154 ) Balance at end of period $ 3,069 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 422,766 $ 422,766 $ — $ — $ 422,766 Available for sale securities 772,890 — 772,890 — 772,890 Loans held for investment, net of allowance 4,438,591 — — 4,431,816 4,431,816 Accrued interest receivable 40,053 2 5,531 34,520 40,053 Financial liabilities Deposits $ 4,988,482 $ — $ 5,003,594 $ — $ 5,003,594 Interest rate swap 1,252 — 1,252 — 1,252 Accrued interest payable 2,701 — 2,701 — 2,701 Borrowed funds 155,515 — 144,629 — 144,629 Subordinated debt 108,322 — 109,832 — 109,832 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 measured at fair value on a recurring basis: December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,199 $ — $ 26,199 Municipal securities — 427,605 — 427,605 Agency mortgage-backed pass-through securities — 171,289 — 171,289 Agency collateralized mortgage obligations — 84,370 — 84,370 Corporate bonds and other — 63,427 — 63,427 Total available for sale securities $ — $ 772,890 $ — $ 772,890 Financial liabilities Interest rate swap $ — $ 1,252 $ — $ 1,252 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 | Assets measured at fair value on a nonrecurring basis are summarized in the table below. As of December 31, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Collateral Dependent Loans: Commercial and industrial $ — $ — $ 8,650 Commercial real estate (including multi- family residential) — — 2,594 Commercial real estate construction and land development — — 53 1-4 family residential (including home equity) — — 1,873 Residential construction — — — Consumer and other — — 529 Other real estate owned — — 9,196 $ — $ — $ 22,895 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 |
PREMISES AND EQUIPMENT (Tables)
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows: As of December 31, 2020 2019 (Dollars in thousands) Land $ 13,913 $ 13,913 Buildings 39,998 36,826 Lease right-of-use assets 11,610 11,180 Leasehold improvements 5,689 4,522 Furniture, fixtures and equipment 16,106 13,612 Construction in progress 2 250 Total 87,318 80,303 Less: accumulated depreciation 16,633 13,513 Premises and equipment, net $ 70,685 $ 66,790 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Supplemental Lease Information | Supplemental lease information at the dates indicated is as follows: December 31, 2020 December 31, 2019 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 11,610 $ 11,180 Operating lease liability classified as other liabilities $ 11,850 $ 11,477 Weighted average lease term, in years 5.56 5.53 Weighted average discount rate 2.86 % 3.19 % |
Summary of Lease Costs | Lease costs for the dates indicated is as follows: For the Years Ended December 31, 2020 2019 (Dollars in thousands) Income Statement: Operating lease cost $ 3,270 $ 3,073 Short-term lease cost 78 553 Sublease income (66 ) (72 ) Total operating lease costs $ 3,282 $ 3,554 |
Maturity Analysis of Lease Liabilities | A maturity analysis of the Company’s lease liabilities is as follows: December 31, 2020 December 31, 2019 (Dollars in thousands) Lease payments due: Within one year $ 3,068 $ 2,867 After one but within two years 2,664 2,608 After two but within three years 2,056 2,204 After three but within four years 1,591 1,596 After four but within five years 1,057 1,131 After five years 2,355 2,162 Total lease payments 12,791 12,568 Discount on cash flows 941 1,091 Total lease liability $ 11,850 $ 11,477 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 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 $ 872,599 After one but within two years 313,154 After two but within three years 92,863 After three but within four years 39,782 After four but within five years 28,251 Total $ 1,346,649 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 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 4.02 0.64% 3 month LIBOR $ 100,000 $ (1,252 ) |
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 years ended December Amount of Loss Recognized in Other Comprehensive Loss For the Years Ended December 31, 2020 2019 (Dollars in thousands) Liability derivatives Interest rate swaps $ (989 ) $ — |
BORROWINGS AND BORROWING CAPA_2
BORROWINGS AND BORROWING CAPACITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Scheduled principal maturities are as follows (dollars in thousands): 2021 $ — 2022 — 2023 — 2024 569 2025 and thereafter 15,000 Total $ 15,569 |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to the Company's issuances of junior subordinated debentures outstanding at December 31, 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 December 31, 2020 was 0.23364%. (2) All debentures are currently callable. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Provision for Federal Income Taxes | The components of the provision for federal income taxes are as follows: For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Current $ 17,527 $ 13,514 $ 8,204 Deferred (7,090 ) (87 ) (256 ) Total $ 10,437 $ 13,427 $ 7,948 |
Schedule of Effective Income Tax Rate Reconciliation | Reported income tax expense differs from the amounts computed by applying the U.S. federal statutory income tax rate to income before income taxes for the years ended December 31, 2020, 2019 and 2018 due to the following: For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) Taxes calculated at statutory rate $ 11,754 $ 13,940 $ 9,504 Increase (decrease) resulting from: Stock based compensation 136 (11 ) (400 ) Effect of tax-exempt income (1,475 ) (698 ) (1,284 ) Other, net 22 196 128 Total $ 10,437 $ 13,427 $ 7,948 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities are as follows: As of December 31, 2020 2019 (Dollars in thousands) Deferred tax assets: Allowance for credit losses $ 12,590 $ 6,432 Deferred loan fees 3,164 — Deferred compensation 655 855 Cash flow hedge 263 — Other deferred assets 342 — Total deferred tax assets 17,014 7,287 Deferred tax liabilities: Core deposit intangible and other purchase accounting adjustments (3,964 ) (3,591 ) Net unrealized gain on available for sale securities (9,417 ) (1,307 ) Premises and equipment basis difference (2,573 ) (2,099 ) Total deferred tax liabilities (15,954 ) (6,997 ) Net deferred tax assets $ 1,060 $ 290 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2020 and 2019 is set forth below: Weighted Weighted Average Average Aggregate Number of Exercise Remaining Intrinsic Options Price Contractual Term Value (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2019 802 $ 18.88 4.61 $ 10,830 Options granted — — Options exercised (179 ) 15.16 Options forfeited (7 ) 24.18 Options outstanding, December 31, 2019 616 $ 19.90 4.00 $ 10,904 Options granted — — Options exercised (141 ) 15.72 Options forfeited (6 ) 20.36 Options outstanding, December 31, 2020 469 $ 21.08 3.43 $ 6,118 Options vested and exercisable, December 31, 2020 455 $ 20.58 3.34 $ 6,164 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | Information related to the stock option plans during each year is as follows: 2020 2019 2018 (Dollars in thousands, except per share data) Intrinsic value of options exercised $ 734 $ 751 $ 3,254 Cash received from option exercises 2,221 2,709 3,393 Weighted average fair value of options granted $ — $ — $ 18.00 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity of the nonvested shares of restricted stock as of December 31, 2020 and 2019 including changes during the years then ended is as follows: Weighted Average Grant Number of Date Fair Shares Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2019 143 $ 37.48 Share awards granted 88 34.97 Share awards vested (45 ) 36.70 Unvested share awards forfeited or cancelled (19 ) 38.46 Nonvested share awards outstanding, December 31, 2019 167 $ 36.23 Share awards granted 64 22.59 Share awards vested (60 ) 33.97 Unvested share awards forfeited or cancelled (13 ) 37.92 Nonvested share awards outstanding, December 31, 2020 158 $ 30.78 |
OFF-BALANCE SHEET ARRANGEMENT_2
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, 2020 December 31, 2019 Fixed Variable Fixed Variable Rate Rate Rate Rate (Dollars in thousands) Commitments to extend credit $ 761,938 $ 480,067 $ 507,411 $ 531,470 Standby letters of credit 9,252 8,003 10,843 4,309 Total $ 771,190 $ 488,070 $ 518,254 $ 535,779 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 12 Months Ended |
Dec. 31, 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 at December 31, 2020 and 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 December 31, 2020 Total Capital (to risk weighted assets) $ 642,155 15.71 % $ 327,084 8.00 % $ 429,298 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 482,643 11.80 % 183,985 4.50 % 286,199 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 492,281 12.04 % 245,313 6.00 % 347,527 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 492,281 8.51 % 231,518 4.00 % 231,518 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 December 31, 2020 Total Capital (to risk weighted assets) $ 635,223 15.55 % $ 326,804 8.00 % $ 428,931 10.50 % $ 408,506 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 183,828 4.50 % 285,954 7.00 % 265,529 6.50 % Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 245,103 6.00 % 347,230 8.50 % 326,804 8.00 % Tier 1 Capital (to average tangible assets) 544,331 9.41 % 231,334 4.00 % 231,334 4.00 % 289,167 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) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Common shares issuable under restricted stock awards are considered outstanding at the date of grant and are accounted for as participating securities and included in basic and diluted weighted average common shares outstanding For the Years Ended December 31, 2020 2019 2018 Per Share Per Share Per Share Amount Amount Amount Amount Amount Amount (Amounts in thousands, except per share data) Net income attributable to shareholders $ 45,534 $ 52,959 $ 37,309 Basic: Weighted average shares outstanding 20,415 $ 2.23 21,152 $ 2.50 15,485 $ 2.41 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 131 272 288 Total 20,546 $ 2.22 21,424 $ 2.47 15,773 $ 2.37 |
PARENT COMPANY ONLY FINANCIAL_2
PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2020 2019 (Dollars in thousands) ASSETS Cash and due from banks $ 19,340 $ 17,775 Investment in subsidiary 820,699 760,131 Other assets 2,691 1,665 TOTAL $ 842,730 $ 779,571 LIABILITIES AND SHAREHOLDERS’ EQUITY LIABILITIES: Other borrowed funds $ 15,514 $ 504 Subordinated debentures 68,577 68,184 Accrued interest payable and other liabilities (30 ) 1,018 Total liabilities 84,061 69,706 SHAREHOLDERS’ EQUITY: Common stock 20,208 20,524 Capital surplus 508,794 521,066 Retained earnings 195,236 163,375 Accumulated other comprehensive income 34,431 4,900 Total shareholders’ equity 758,669 709,865 TOTAL $ 842,730 $ 779,571 |
Schedule of Condensed Income Statement | ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) OPERATING INCOME: Other income $ 16 $ 25 $ 16 Total income 16 25 16 OPERATING EXPENSE: Interest expense on borrowed funds 3,497 1,459 38 Other expenses 1,595 1,922 1,692 Total operating expense 5,092 3,381 1,730 Income before income tax benefit and equity in undistributed income of subsidiaries (5,076 ) (3,356 ) (1,714 ) Income tax benefit 1,066 705 360 Income before equity in undistributed income of subsidiaries (4,010 ) (2,651 ) (1,354 ) Dividends from subsidiary and equity in undistributed income of subsidiaries 49,544 55,610 38,663 Net income $ 45,534 $ 52,959 $ 37,309 |
Schedule of Condensed Cash Flow Statement | ALLEGIANCE BANCSHARES, INC (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2020 2019 2018 (Dollars in thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 45,534 $ 52,959 $ 37,309 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries (49,544 ) (55,610 ) (38,663 ) Net amortization of discount on subordinated debentures 392 169 110 Stock based compensation expense 3,425 3,100 1,685 Increase in other assets (1,026 ) (639 ) (236 ) (Decrease) increase in accrued interest payable and other liabilities (1,038 ) 166 279 Net cash (used in) provided by operating activities (2,257 ) 145 484 CASH FLOWS FROM INVESTING ACTIVITIES: Dividend from subsidiary 13,000 7,500 — Capital investment in bank subsidiary — — — Net cash provided by investing activities 13,000 7,500 — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from the issuance of common stock, stock option exercises and the ESPP 2,569 3,412 3,552 Net increase in borrowings under credit agreement 15,000 — — Proceeds from subordinated notes issuance, net of offering expenses — 58,601 — Dividends paid to common shareholders (8,165 ) — — Repurchase of common stock (18,582 ) (58,663 ) (2,113 ) Net cash (used in) provided by financing activities (9,178 ) 3,350 1,439 NET CHANGE IN CASH AND CASH EQUIVALENTS 1,565 10,995 1,923 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 17,775 6,780 4,857 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 19,340 $ 17,775 $ 6,780 |
QUARTERLY FINANCIAL DATA (UNA_2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Earnings Per Share (1) Interest Income Net Interest Income Net Income Attributable to Common Shareholders Basic Diluted (Dollars in thousands, except per share data) 2020 First quarter (2) $ 57,452 $ 45,025 $ 3,516 $ 0.17 $ 0.17 Second quarter (2) 60,452 50,847 9,907 0.49 0.48 Third quarter (2) 60,811 51,909 16,170 0.79 0.79 Fourth quarter 63,047 54,902 15,941 0.78 0.77 2019 First quarter $ 57,149 $ 44,603 $ 12,678 $ 0.58 $ 0.58 Second quarter 58,946 45,571 14,248 0.67 0.66 Third quarter 58,665 44,837 12,047 0.57 0.57 Fourth quarter 58,147 44,526 13,986 0.68 0.67 (1) Earnings per share are computed independently for each of the quarters presented and therefore may not total earnings per share for the year. (2) Does not reflect the adoption of ASC 326. |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) $ in Thousands | Jan. 01, 2020USD ($) | Feb. 01, 2019 | Oct. 01, 2018 | Dec. 31, 2020USD ($)officeBankSegment | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) |
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Number of offices in which entity operates | office | 28 | ||||||
Accrued interest receivable for loans outstanding | $ 34,500 | $ 15,500 | |||||
Debt securities available for Sale accrued interest receivable | 5,500 | ||||||
Right-of-use assets | 11,610 | 11,180 | |||||
Lease liabilities | 11,850 | 11,477 | |||||
Other real estate owned | $ 9,200 | ||||||
Percentage of recognition threshold for which the largest amount of tax benefit is realized upon ultimate settlement with the related tax authority | 50.00% | ||||||
Number of reportable segments | Segment | 1 | ||||||
Off-balance sheet exposure for allowance for credit losses | $ 3,866 | ||||||
ASU 2016-02 | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Right-of-use assets | $ 15,300 | ||||||
Lease liabilities | $ 15,700 | ||||||
Accounting Standards Update 2016-13 | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 3,100 | ||||||
Off-balance sheet exposure for allowance for credit losses | 3,866 | ||||||
Cumulative effect of adopting new accounting principle in period of adoption | 5,508 | ||||||
Increase in allowance for credit losses for loans | 2,100 | ||||||
Accounting Standards Update 2016-13 | Retained Earnings | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Cumulative effect of adopting new accounting principle in period of adoption | $ 5,500 | $ 5,508 | |||||
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 | |||||
Minimum | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Premises and equipment, useful life | 3 years | ||||||
Minimum | Core Deposits | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Intangibles, useful life | 7 years | ||||||
Maximum | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Premises and equipment, useful life | 40 years | ||||||
Maximum | Core Deposits | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Intangibles, useful life | 10 years | ||||||
Post Oak Bancshares, Inc. | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Effective date of acquisition | Oct. 1, 2018 | Oct. 1, 2018 | |||||
Post Oak Bancshares, Inc. | Minimum | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Intangibles, useful life | 10 years | ||||||
Lowery Bank | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Effective date of acquisition | Feb. 1, 2019 | Feb. 1, 2019 | |||||
Houston | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Number of banks in which entity operates | Bank | 27 | ||||||
Beaumont | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Number of offices in which entity operates | office | 1 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Schedule of Impact of Adopting ASC Topic 326 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | $ 53,173 | $ 34,663 | $ 29,438 | $ 26,331 | $ 23,649 |
Liabilities: | |||||
Off-balance sheet exposure for allowance for credit losses | 3,866 | ||||
Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 5,225 | $ 5,225 | |||
Liabilities: | |||||
Off-balance sheet exposure for allowance for credit losses | 3,866 | ||||
Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 29,438 | ||||
Commercial and industrial | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 15,840 | ||||
Commercial and industrial | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 7,022 | ||||
Commercial and industrial | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 8,818 | ||||
Commercial real estate (including multi-family residential) | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 6,007 | ||||
Commercial real estate (including multi-family residential) | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | (5,163) | ||||
Commercial real estate (including multi-family residential) | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 11,170 | ||||
Commercial real estate construction and land development | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 6,051 | ||||
Commercial real estate construction and land development | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 1,630 | ||||
Commercial real estate construction and land development | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 4,421 | ||||
1-4 family residential (including home equity) | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 5,452 | ||||
1-4 family residential (including home equity) | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 1,600 | ||||
1-4 family residential (including home equity) | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 3,852 | ||||
Residential construction | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 1,056 | ||||
Residential construction | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | (1) | ||||
Residential construction | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 1,057 | ||||
Consumer and other | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 257 | ||||
Consumer and other | Impact of ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | 137 | ||||
Consumer and other | Pre-ASC Topic 326 Adoption | |||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||
Allowance for credit losses on loans | $ 120 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 01, 2019USD ($) | Oct. 01, 2018USD ($)branch$ / sharesshares | Sep. 30, 2019USD ($)shares | Dec. 31, 2020$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Sep. 28, 2018USD ($)$ / shares |
Business Acquisition [Line Items] | |||||||
Options exercised | $ / shares | $ 15.72 | $ 15.16 | |||||
Lowery Bank | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Feb. 1, 2019 | Feb. 1, 2019 | |||||
Business acquisition, customer deposits balances | $ 16,000 | ||||||
Business acquisition, loans | 45,000 | ||||||
Goodwill, acquired during period | 578 | $ 578 | |||||
Lowery Bank | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisition | $ 32,900 | ||||||
Post Oak Bancshares, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Effective date of acquisition | Oct. 1, 2018 | Oct. 1, 2018 | |||||
Business acquisition, loans | $ 1,164,281 | ||||||
Goodwill, acquired during period | $ 183,700 | $ 183,736 | |||||
Cash paid for acquisition | $ 21 | ||||||
Number of branches | branch | 13 | ||||||
Number of shares issued in acquisition | shares | 8,402,010 | 8,402,010 | |||||
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 | ||||||
Pre-tax acquisition and merger-related expenses | $ 1,300 | $ 1,700 | |||||
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 | ||||||
Post Oak Bancshares, Inc. | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Intangibles, useful life | 10 years |
ACQUISITIONS - Allocation of th
ACQUISITIONS - Allocation of the Purchase Price to Assets and Liabilities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 223,642 | $ 223,642 | $ 223,125 | $ 39,389 | |
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 | 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 |
ACQUISITIONS - Schedule of PCI
ACQUISITIONS - Schedule of PCI Loans and Non-PCI Loans Acquired in Transaction (Details) $ in Thousands | Oct. 01, 2018USD ($) |
PCI Loans | |
Business Acquisition [Line Items] | |
Contractually required principal and interest payments | $ 28,340 |
Contractual cash flows not expected to be collected (nonaccretable difference) | (3,163) |
Expected cash flows at acquisition | 25,177 |
Interest component of expected cash flows (accretable yield) | (495) |
Fair value of loans acquired with deterioration of credit quality | 25,672 |
Non-PCI Loans | |
Business Acquisition [Line Items] | |
Contractually required principal and interest payments | 1,152,892 |
Accretable discount | (13,293) |
Fair value at acquisition | $ 1,166,185 |
ACQUISITIONS - Business Acquisi
ACQUISITIONS - Business Acquisition, Pro Forma Information (Details) - Post Oak Bancshares, Inc. - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net interest income | $ 170,801 | $ 165,612 |
Noninterest income | 10,060 | 9,543 |
Net income | $ 41,807 | $ 35,107 |
Basic earnings per common share | $ 2.70 | $ 1.63 |
Diluted earnings per common share | $ 2.65 | $ 1.61 |
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 | Oct. 01, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | |||||
Balance, beginning | $ 223,642 | $ 223,125 | $ 39,389 | ||
Measurement period adjustment | (61) | ||||
Balance, ending | 223,642 | 223,642 | 223,125 | ||
Core Deposit Intangible Assets | |||||
Balance, beginning | 21,876 | ||||
Amortization | (3,922) | (4,711) | (1,815) | ||
Balance, ending | 17,954 | 21,876 | |||
Core Deposit Intangible Assets | |||||
Core Deposit Intangible Assets | |||||
Balance, beginning | 21,876 | 26,587 | 3,274 | ||
Amortization | (3,922) | (4,711) | (1,815) | ||
Balance, ending | $ 17,954 | 21,876 | 26,587 | ||
Post Oak Bancshares, Inc. | |||||
Goodwill | |||||
Goodwill, acquired during period | $ 183,700 | 183,736 | |||
Post Oak Bancshares, Inc. | Core Deposit Intangible Assets | |||||
Core Deposit Intangible Assets | |||||
Acquisition | $ 25,128 | ||||
Lowery Bank | |||||
Goodwill | |||||
Goodwill, acquired during period | $ 578 | $ 578 |
GOODWILL AND CORE DEPOSIT INT_4
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2020ReportingUnit | Sep. 30, 2020USD ($) | |
Finite Lived Intangible Assets [Line Items] | ||
Number of reporting units | ReportingUnit | 1 | |
Goodwill impairment, triggering event | No triggering event occurred during the fourth quarter of 2020 that required an updated goodwill impairment analysis at December 31, 2020. | |
Acquisition of F&M | ||
Finite Lived Intangible Assets [Line Items] | ||
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 | $ 3,296 | |
2022 | 3,003 | |
2023 | 2,323 | |
2024 | 2,188 | |
2025 | 2,061 | |
Thereafter | 5,083 | |
Total | $ 17,954 | $ 21,876 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 728,043 | $ 366,331 |
Gross Unrealized Gains | 45,177 | 7,009 |
Gross Unrealized Losses | (330) | (795) |
Fair Value | 772,890 | 372,545 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,545 | 29,420 |
Gross Unrealized Gains | 654 | 298 |
Gross Unrealized Losses | (243) | |
Fair Value | 26,199 | 29,475 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 392,586 | 84,200 |
Gross Unrealized Gains | 35,079 | 3,453 |
Gross Unrealized Losses | (60) | (116) |
Fair Value | 427,605 | 87,537 |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 167,606 | 104,669 |
Gross Unrealized Gains | 3,829 | 1,713 |
Gross Unrealized Losses | (146) | (214) |
Fair Value | 171,289 | 106,168 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 80,182 | 106,351 |
Gross Unrealized Gains | 4,263 | 1,199 |
Gross Unrealized Losses | (75) | (208) |
Fair Value | 84,370 | 107,342 |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 62,124 | 41,691 |
Gross Unrealized Gains | 1,352 | 346 |
Gross Unrealized Losses | (49) | (14) |
Fair Value | $ 63,427 | $ 42,023 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |||
Allowance for credit losses for available for sale securities | $ 0 | $ 0 | |
Proceeds from sales of available for sale securities | 30,800,000 | 173,000,000 | |
Calls of available for sale securities | 7,300,000 | ||
Gross realized gains | 391,000 | 2,100,000 | |
Gross realized losses | 104,000 | 596,000 | |
Net realized gain (loss) | 287,000 | 1,500,000 | |
Security owned and pledged as collateral | $ 18,500,000 | $ 18,500,000 | $ 24,300,000 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 110 | |
Due after one year through five years | 12,849 | |
Due after five years through ten years | 105,239 | |
Due after ten years | 362,057 | |
Subtotal | 480,255 | |
Agency mortgage-backed pass through and collateralized mortgage obligation securities | 247,788 | |
Amortized Cost | 728,043 | $ 366,331 |
Fair Value | ||
Due in one year or less | 110 | |
Due after one year through five years | 13,412 | |
Due after five years through ten years | 109,238 | |
Due after ten years | 394,471 | |
Subtotal | 517,231 | |
Agency mortgage-backed pass through and collateralized mortgage obligation securities | 255,659 | |
Total | $ 772,890 | $ 372,545 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 65,083 | $ 80,433 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (294) | (732) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 4,203 | 4,805 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (36) | (63) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 69,286 | 85,238 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (330) | (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) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 8,844 | 9,514 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (60) | (116) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 8,844 | 9,514 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (60) | (116) |
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 | 28,659 | 20,792 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (146) | (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 | 28,659 | 25,161 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (146) | (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 | 11,629 | 22,340 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (39) | (208) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 4,203 | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (36) | |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 15,832 | 22,340 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (75) | (208) |
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 | 15,951 | 5,492 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (49) | (14) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 15,951 | 5,492 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (49) | $ (14) |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | $ 4,491,764 | $ 3,915,310 | |||
Allowance for credit losses on loans | (53,173) | $ (34,663) | (29,438) | $ (26,331) | $ (23,649) |
Loans, net | 4,438,591 | 3,885,872 | |||
Commercial real estate construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Allowance for credit losses on loans | (6,051) | ||||
1-4 family residential (including home equity) | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Allowance for credit losses on loans | (5,452) | ||||
Residential construction | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Allowance for credit losses on loans | $ (1,056) | ||||
Commercial and industrial | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 667,079 | 689,360 | |||
Allowance for credit losses on loans | (17,738) | (8,818) | (8,351) | (7,694) | |
Mortgage warehouse | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 8,304 | ||||
Paycheck Protection Program (PPP) | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 569,901 | ||||
Real estate | Commercial real estate (including multi-family residential) | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 1,999,877 | 1,873,782 | |||
Real estate | Commercial real estate construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 367,213 | 410,471 | |||
Real estate | 1-4 family residential (including home equity) | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 737,605 | 698,957 | |||
Real estate | Residential construction | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 127,522 | 192,515 | |||
Consumer and other | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans held for investment | 22,567 | 41,921 | |||
Allowance for credit losses on loans | $ (413) | $ (120) | $ (73) | $ (95) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2020USD ($)contractLoan | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2017USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||
Owner-occupied loans to commercial real estate loans | 54.60% | ||||
Maximum loans amount to appraised value | 90.00% | ||||
Loans outstanding | $ 1,183,000 | $ 6,782,000 | |||
Accrued interest receivable for loans outstanding | 34,500,000 | 15,500,000 | |||
Impaired, interest lost on nonaccrual loans | 902,500,000 | $ 1,200,000 | |||
Allowance for credit losses on loans | 53,173,000 | 29,438,000 | 26,331,000 | $ 34,663,000 | $ 23,649,000 |
Recorded investment | 25,800,000 | 28,900,000 | |||
Change in method of calculating impairment | 3,300,000 | 3,200,000 | |||
Troubled debt restructuring, write-down | 3,200 | 251,000 | 272,000 | ||
Troubled debt restructuring, addition | 2,600,000 | 472,000 | |||
Modification of outstanding recorded investment | $ 11,804,000 | $ 5,100,000 | $ 10,172,000 | ||
Number of defaults on loan that were modified as troubled debt restructurings during the preceding 12 months | contract | 4 | 5 | |||
COVID-19 | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Number of loans deferral due to CARES Act | Loan | 164 | ||||
Outstanding loan balances deferrals due to CARES Act | $ 161,300,000 | ||||
Troubled debt restructurings added in reporting period | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Recorded investment | 8,100,000 | $ 4,600,000 | |||
Unfunded Loan Commitment | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Allowance for credit losses on loans | 4,697,000 | 0 | $ 3,866,000 | ||
Non accrual loans interest income | $ 0 | $ 0 | |||
Minimum | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Owner-occupied commercial real estate loans, amortization period | 10 years | ||||
Mortgage loan, term | 5 years | ||||
Mortgage loan, amortization period | 10 years | ||||
Consumer and other loans, term | 12 months | ||||
Maximum | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Owner-occupied commercial real estate loans, amortization period | 20 years | ||||
Mortgage loan, term | 7 years | ||||
Mortgage loan, amortization period | 30 years | ||||
Consumer and other loans, term | 60 months |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Carrying Amount of PCI Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment | $ 4,491,764 | $ 3,915,310 |
PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding balance | 16,589 | |
Less: Discount | (2,414) | |
Less: Allowance | (259) | |
Recorded investment | $ 13,916 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Recorded Investment of Non-PCI Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Recorded investment | $ 4,491,764 | $ 3,915,310 |
Non-PCI Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding balance | 672,927 | |
Less: Discount | (3,069) | |
Recorded investment | $ 669,858 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Changes in the Discount Accretion for Non-PCI Loans (Details) - Non-PCI Loans $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Balance at beginning of period | $ 10,650 |
Additions | 573 |
Accretion | (8,154) |
Balance at end of period | $ 3,069 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Analysis Of Activity with Related-party Loans (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Beginning balance on January 1 | $ 6,782 |
New loans and reclassified related loans | 90 |
Repayments and reclassified related loans | (5,689) |
Ending balance on December 31 | $ 1,183 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 11,525 | $ 10,001 |
Nonaccrual Loans | 28,893 | 28,371 |
Current Loans | 4,451,346 | 3,876,938 |
Total loans evaluated for impairment | 4,491,764 | 3,915,310 |
Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 11,525 | 10,001 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,486 | 3,098 |
Nonaccrual Loans | 10,747 | 8,388 |
Current Loans | 653,846 | 677,874 |
Total loans evaluated for impairment | 667,079 | 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 | 2,486 | 3,098 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current Loans | 8,304 | |
Total loans evaluated for impairment | 8,304 | |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Current Loans | 569,901 | |
Total loans evaluated for impairment | 569,901 | |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,063 | 4,421 |
Nonaccrual Loans | 10,081 | 6,741 |
Current Loans | 1,986,733 | 1,862,620 |
Total loans evaluated for impairment | 1,999,877 | 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 | 3,063 | 4,421 |
Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,930 | 66 |
Nonaccrual Loans | 3,011 | 9,050 |
Current Loans | 361,272 | 401,355 |
Total loans evaluated for impairment | 367,213 | 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 | 2,930 | 66 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 3,000 | 1,598 |
Nonaccrual Loans | 4,525 | 3,294 |
Current Loans | 730,080 | 694,065 |
Total loans evaluated for impairment | 737,605 | 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 | 3,000 | 1,598 |
Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 564 | |
Nonaccrual Loans | 746 | |
Current Loans | 127,522 | 191,205 |
Total loans evaluated for impairment | 127,522 | 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 | 564 | |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 46 | 254 |
Nonaccrual Loans | 529 | 152 |
Current Loans | 21,992 | 41,515 |
Total loans evaluated for impairment | 22,567 | 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 | $ 46 | $ 254 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Ratings by Category of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | $ 1,915,431 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 755,769 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 490,038 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 421,839 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 302,293 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 169,731 | |
Revolving Loans | 436,663 | |
Total | 4,491,764 | $ 3,915,310 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 175,754 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 95,571 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 61,047 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 28,949 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 27,734 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 8,117 | |
Revolving Loans | 269,907 | |
Total | 667,079 | 689,360 |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 8,304 | |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 569,901 | |
Total | 569,901 | |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | (5,414) | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 20,853 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,628 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 586 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 25 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 122 | |
Revolving Loans | 4,767 | |
Total | 22,567 | 41,921 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,792,055 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 639,824 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 406,771 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 324,054 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 228,988 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 112,308 | |
Revolving Loans | 393,745 | |
Total | 3,897,745 | 3,691,279 |
Pass | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 149,522 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 81,526 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 46,909 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 17,610 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 20,955 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 6,951 | |
Revolving Loans | 239,045 | |
Total | 562,518 | 637,388 |
Pass | Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | 8,304 | |
Pass | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 569,901 | |
Total | 569,901 | |
Pass | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | (6,193) | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 20,578 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,537 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 586 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 25 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 122 | |
Revolving Loans | 4,704 | |
Total | 21,359 | 41,355 |
Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 69,653 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 59,464 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 38,840 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 54,154 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 32,886 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 28,251 | |
Revolving Loans | 15,291 | |
Total | 298,539 | 99,111 |
Watch | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,755 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 6,956 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 6,600 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 2,436 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1,446 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,067 | |
Revolving Loans | 9,766 | |
Total | 41,026 | 14,797 |
Watch | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 57 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 242 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 27 | |
Revolving Loans | 63 | |
Total | 389 | 6 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 18,772 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,546 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 18,409 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 14,662 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 8,378 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 16,755 | |
Revolving Loans | 16,704 | |
Total | 115,226 | 29,686 |
Special Mention | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 758 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,746 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,740 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 1,860 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 2,756 | |
Revolving Loans | 13,150 | |
Total | 25,010 | 10,871 |
Special Mention | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 231 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 39 | |
Total | 270 | 358 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 34,882 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 34,864 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 26,018 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 28,969 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 32,041 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 12,417 | |
Revolving Loans | 10,923 | |
Total | 180,114 | 95,156 |
Substandard | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,650 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4,272 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,798 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 7,043 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 2,577 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 99 | |
Revolving Loans | 7,946 | |
Total | 38,385 | 26,226 |
Substandard | Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 491 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 33 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 25 | |
Total | 549 | 202 |
Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 69 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 71 | |
Total | 140 | 78 |
Doubtful | Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 69 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 71 | |
Total | 140 | 78 |
Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 643,262 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 409,746 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 272,912 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 286,530 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 211,560 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 124,262 | |
Revolving Loans | 51,605 | |
Total | 1,999,877 | 1,873,782 |
Commercial real estate (including multi-family residential) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 587,089 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 321,020 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 220,554 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 221,147 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 156,671 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 75,353 | |
Revolving Loans | 47,189 | |
Total | 1,629,023 | 1,760,476 |
Commercial real estate (including multi-family residential) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 27,851 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 45,009 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 23,492 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 32,567 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 24,051 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 23,531 | |
Revolving Loans | 1,150 | |
Total | 177,651 | 56,367 |
Commercial real estate (including multi-family residential) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 10,931 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 16,452 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 9,940 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 12,128 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 3,243 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 14,482 | |
Revolving Loans | 1,100 | |
Total | 68,276 | 11,974 |
Commercial real estate (including multi-family residential) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 17,391 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 27,265 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 18,926 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 20,688 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 27,595 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 10,896 | |
Revolving Loans | 2,166 | |
Total | 124,927 | 44,965 |
Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 188,763 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 83,084 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 36,778 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 29,869 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 10,388 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,818 | |
Revolving Loans | 15,513 | |
Total | 367,213 | 410,471 |
Commercial real estate construction and land development | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 172,389 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 77,535 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 31,392 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 16,712 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 5,098 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,036 | |
Revolving Loans | 14,971 | |
Total | 320,133 | 385,832 |
Commercial real estate construction and land development | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 12,801 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,943 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,315 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 13,157 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 5,290 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 515 | |
Total | 39,021 | 9,583 |
Commercial real estate construction and land development | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 615 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,620 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 378 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 267 | |
Total | 2,880 | 639 |
Commercial real estate construction and land development | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,958 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 986 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 693 | |
Revolving Loans | 542 | |
Total | 5,179 | 14,417 |
1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 234,325 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 135,436 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 112,385 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 75,163 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 51,013 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 34,412 | |
Revolving Loans | 94,871 | |
Total | 737,605 | 698,957 |
1-4 family residential (including home equity) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 212,543 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 128,835 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 101,091 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 67,257 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 44,666 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 27,846 | |
Revolving Loans | 87,836 | |
Total | 670,074 | 669,288 |
1-4 family residential (including home equity) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 14,153 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 3,565 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,406 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 5,994 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 2,099 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 3,138 | |
Revolving Loans | 4,312 | |
Total | 37,667 | 15,798 |
1-4 family residential (including home equity) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 6,237 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 728 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,312 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 674 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 2,379 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,006 | |
Revolving Loans | 2,454 | |
Total | 18,790 | 5,844 |
1-4 family residential (including home equity) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,392 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,308 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 2,576 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 1,238 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1,869 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,422 | |
Revolving Loans | 269 | |
Total | 11,074 | 8,027 |
Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 108,840 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 11,079 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,288 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 742 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1,573 | |
Total | 127,522 | 192,515 |
Residential construction | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 106,804 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 10,330 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,288 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 742 | |
Term Loans Amortized Cost Basis by Origination Year, 2016 | 1,573 | |
Total | 124,737 | 188,636 |
Residential construction | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,036 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 749 | |
Total | $ 2,785 | 2,560 |
Residential construction | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Total | $ 1,319 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Ratings by Category of Loans (Parenthetical) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Paycheck Protection Program (PPP) | |
Accounts Notes And Loans Receivable [Line Items] | |
Net deferred fees | $ 13.9 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Credit Losses on Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for credit losses on loans: | |||
Balance, beginning of period | $ 29,438 | $ 26,331 | $ 23,649 |
Provision for loan losses | 26,543 | 5,939 | 4,248 |
Charge-offs | (8,583) | (3,141) | (2,515) |
Recoveries | 550 | 309 | 949 |
Net charge-offs | (8,033) | (2,832) | (1,566) |
Balance, end of period | 53,173 | 29,438 | 26,331 |
Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 5,225 | ||
Balance, end of period | 5,225 | ||
Commercial and industrial | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 8,818 | 8,351 | 7,694 |
Provision for loan losses | 4,363 | 2,881 | 2,234 |
Charge-offs | (2,938) | (2,688) | (2,424) |
Recoveries | 473 | 274 | 847 |
Net charge-offs | (2,465) | (2,414) | (1,577) |
Balance, end of period | 17,738 | 8,818 | 8,351 |
Commercial and industrial | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 7,022 | ||
Balance, end of period | 7,022 | ||
Commercial Real Estate Portfolio Segment | Commercial real estate (including multi-family residential) | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 11,170 | 11,901 | 10,253 |
Provision for loan losses | 20,417 | (654) | 1,588 |
Charge-offs | (2,562) | (80) | (42) |
Recoveries | 72 | 3 | 102 |
Net charge-offs | (2,490) | (77) | 60 |
Balance, end of period | 23,934 | 11,170 | 11,901 |
Commercial Real Estate Portfolio Segment | Commercial real estate (including multi-family residential) | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | (5,163) | ||
Balance, end of period | (5,163) | ||
Commercial Real Estate Portfolio Segment | Commercial real estate construction and land development | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 4,421 | 2,724 | 2,525 |
Provision for loan losses | 3,461 | 1,741 | 199 |
Charge-offs | (2,573) | (44) | |
Net charge-offs | (2,573) | (44) | |
Balance, end of period | 6,939 | 4,421 | 2,724 |
Commercial Real Estate Portfolio Segment | Commercial real estate construction and land development | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 1,630 | ||
Balance, end of period | 1,630 | ||
Commercial Real Estate Portfolio Segment | 1-4 family residential (including home equity) | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 3,852 | 2,242 | 2,140 |
Provision for loan losses | (1,822) | 1,905 | 127 |
Charge-offs | (351) | (295) | (25) |
Net charge-offs | (351) | (295) | (25) |
Balance, end of period | 3,279 | 3,852 | 2,242 |
Commercial Real Estate Portfolio Segment | 1-4 family residential (including home equity) | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 1,600 | ||
Balance, end of period | 1,600 | ||
Commercial Real Estate Portfolio Segment | Residential construction | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 1,057 | 1,040 | 942 |
Provision for loan losses | (186) | 17 | 98 |
Balance, end of period | 870 | 1,057 | 1,040 |
Commercial Real Estate Portfolio Segment | Residential construction | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | (1) | ||
Balance, end of period | (1) | ||
Consumer and other | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | 120 | 73 | 95 |
Provision for loan losses | 310 | 49 | 2 |
Charge-offs | (159) | (34) | (24) |
Recoveries | 5 | 32 | |
Net charge-offs | (154) | (2) | (24) |
Balance, end of period | 413 | 120 | $ 73 |
Consumer and other | Accounting Standards Update 2016-13 | |||
Allowance for credit losses on loans: | |||
Balance, beginning of period | $ 137 | ||
Balance, end of period | $ 137 |
LOANS AND ALLOWANCE FOR CRED_13
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Activity in Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance For Loan Commitments [Line Items] | |||||
Allowance for credit losses on loans | $ 53,173,000 | $ 34,663,000 | $ 29,438,000 | $ 26,331,000 | $ 23,649,000 |
Unfunded Loan Commitment | |||||
Allowance For Loan Commitments [Line Items] | |||||
Allowance for credit losses on loans | 4,697,000 | $ 3,866,000 | $ 0 | ||
Provision for credit losses on off-balance sheet exposures | $ 831,000 |
LOANS AND ALLOWANCE FOR CRED_14
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | $ 8,683 |
Real Estate | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 3,526 |
Business Assets | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 5,157 |
Commercial and industrial | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 5,157 |
Commercial and industrial | Business Assets | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 5,157 |
Real estate | Commercial real estate (including multi-family residential) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 425 |
Real estate | 1-4 family residential (including home equity) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 3,101 |
Real estate | Real Estate | Commercial real estate (including multi-family residential) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | 425 |
Real estate | Real Estate | 1-4 family residential (including home equity) | |
Financing Receivable Allowance For Credit Losses [Line Items] | |
Finance receivables allowance of credit losses | $ 3,101 |
LOANS AND ALLOWANCE FOR CRED_15
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | $ 15,194 | |
Nonaccrual Loans with Related Allowance | 13,699 | |
Nonaccrual Loans | 28,893 | $ 28,371 |
Commercial and industrial | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 2,097 | |
Nonaccrual Loans with Related Allowance | 8,650 | |
Nonaccrual Loans | 10,747 | 8,388 |
Real estate | Commercial real estate (including multi-family residential) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 7,487 | |
Nonaccrual Loans with Related Allowance | 2,594 | |
Nonaccrual Loans | 10,081 | 6,741 |
Real estate | Commercial real estate construction and land development | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 2,958 | |
Nonaccrual Loans with Related Allowance | 53 | |
Nonaccrual Loans | 3,011 | 9,050 |
Real estate | 1-4 family residential (including home equity) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 2,652 | |
Nonaccrual Loans with Related Allowance | 1,873 | |
Nonaccrual Loans | 4,525 | 3,294 |
Real estate | Residential construction | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans | 746 | |
Consumer and other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with Related Allowance | 529 | |
Nonaccrual Loans | $ 529 | $ 152 |
LOANS AND ALLOWANCE FOR CRED_16
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Impaired Loans by Loan Class (Details) $ in Thousands | Dec. 31, 2019USD ($) |
With no related allowance recorded: | |
Recorded investment with no related allowance recorded | $ 27,445 |
Unpaid principal balance with no related allowance recorded | 27,940 |
With an allowance recorded: | |
Impaired financing receivable, with related allowance, recorded investment | 27,891 |
Impaired financing receivable, with related allowance, unpaid principal balance | 28,285 |
Related Allowance | 6,775 |
Total: | |
Recorded Investment | 55,336 |
Unpaid Principal Balance | 56,225 |
Related Allowance | 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 | 5,721 |
Unpaid principal balance with no related allowance recorded | 6,136 |
With an allowance recorded: | |
Impaired financing receivable, with related allowance, recorded investment | 7,812 |
Impaired financing receivable, with related allowance, unpaid principal balance | 7,286 |
Related Allowance | 3,480 |
Total: | |
Recorded Investment | 13,533 |
Unpaid Principal Balance | 13,422 |
Related Allowance | 3,480 |
Mortgage warehouse | |
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 | 19,478 |
Unpaid principal balance with no related allowance recorded | 19,558 |
With an allowance recorded: | |
Impaired financing receivable, with related allowance, recorded investment | 5,335 |
Impaired financing receivable, with related allowance, unpaid principal balance | 5,335 |
Related Allowance | 459 |
Total: | |
Recorded Investment | 24,813 |
Unpaid Principal Balance | 24,893 |
Related Allowance | 459 |
Real estate | Commercial real estate construction and land development | |
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 | 12,142 |
Impaired financing receivable, with related allowance, unpaid principal balance | 12,142 |
Related Allowance | 2,085 |
Total: | |
Recorded Investment | 12,142 |
Unpaid Principal Balance | 12,142 |
Related Allowance | 2,085 |
Real estate | 1-4 family residential (including home equity) | |
With no related allowance recorded: | |
Recorded investment with no related allowance recorded | 2,000 |
Unpaid principal balance with no related allowance recorded | 2,000 |
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 | 2,000 |
Unpaid Principal Balance | 2,000 |
Related Allowance | 0 |
Real estate | Residential construction | |
With no related allowance recorded: | |
Recorded investment with no related allowance recorded | 208 |
Unpaid principal balance with no related allowance recorded | 208 |
With an allowance recorded: | |
Impaired financing receivable, with related allowance, recorded investment | 537 |
Impaired financing receivable, with related allowance, unpaid principal balance | 537 |
Related Allowance | 66 |
Total: | |
Recorded Investment | 745 |
Unpaid Principal Balance | 745 |
Related Allowance | 66 |
Consumer and other | |
With no related allowance recorded: | |
Recorded investment with no related allowance recorded | 38 |
Unpaid principal balance with no related allowance recorded | 38 |
With an allowance recorded: | |
Impaired financing receivable, with related allowance, recorded investment | 26 |
Impaired financing receivable, with related allowance, unpaid principal balance | 26 |
Related Allowance | 26 |
Total: | |
Recorded Investment | 64 |
Unpaid Principal Balance | 64 |
Related Allowance | $ 26 |
LOANS AND ALLOWANCE FOR CRED_17
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Average Impaired Loans and Interest Recognized (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | $ 55,343 |
Recognized | 1,088 |
PCI Loans | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 3,133 |
Recognized | 8 |
Commercial and industrial | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 13,376 |
Recognized | 399 |
Real estate | Commercial real estate (including multi-family residential) | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 25,856 |
Recognized | 489 |
Real estate | Commercial real estate construction and land development | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 10,251 |
Recognized | 185 |
Real estate | 1-4 family residential (including home equity) | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 2,058 |
Recognized | 6 |
Real estate | Residential construction | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 594 |
Consumer and other | |
Accounts Notes And Loans Receivable [Line Items] | |
Investment | 75 |
Recognized | $ 1 |
LOANS AND ALLOWANCE FOR CRED_18
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 32 | 17 | 15 |
Pre-Modification of Outstanding Recorded Investment | $ 11,804 | $ 5,100 | $ 10,172 |
Post Modification of Outstanding Recorded Investment | $ 11,804 | $ 5,100 | $ 10,172 |
Commercial and industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 20 | 13 | 11 |
Pre-Modification of Outstanding Recorded Investment | $ 4,333 | $ 4,358 | $ 2,770 |
Post Modification of Outstanding Recorded Investment | $ 4,333 | $ 4,358 | $ 2,770 |
Mortgage warehouse | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Real estate | Commercial real estate (including multi-family residential) | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 5 | 1 | 3 |
Pre-Modification of Outstanding Recorded Investment | $ 4,560 | $ 303 | $ 4,288 |
Post Modification of Outstanding Recorded Investment | $ 4,560 | $ 303 | $ 4,288 |
Real estate | Commercial real estate construction and land development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 830 | $ 0 | $ 3,114 |
Post Modification of Outstanding Recorded Investment | $ 830 | $ 0 | $ 3,114 |
Real estate | 1-4 family residential (including home equity) | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 5 | 1 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 2,051 | $ 396 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 2,051 | $ 396 | $ 0 |
Real estate | Residential construction | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Consumer and other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Number of Contracts | contract | 1 | 2 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 30 | $ 43 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 30 | $ 43 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_19
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Principal and Interest Deferrals Associated with Loan Modifications Related to COVID 19 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 4,491,764 | $ 3,915,310 |
Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,130,665 | |
Percentage of Total Deferrals | 100.00% | |
Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 227,744 | |
Percentage of Total Deferrals | 100.00% | |
Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 161,297 | |
Percentage of Total Deferrals | 100.00% | |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 667,079 | 689,360 |
Commercial and industrial | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 127,689 | |
Percentage of Total Deferrals | 11.30% | |
Commercial and industrial | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 21,747 | |
Percentage of Total Deferrals | 9.50% | |
Commercial and industrial | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 23,822 | |
Percentage of Total Deferrals | 14.80% | |
Mortgage warehouse | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | 8,304 | |
Mortgage warehouse | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Mortgage warehouse | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Mortgage warehouse | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 569,901 | |
Paycheck Protection Program (PPP) | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Paycheck Protection Program (PPP) | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Paycheck Protection Program (PPP) | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% | |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 22,567 | 41,921 |
Consumer and other | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 1,015 | |
Percentage of Total Deferrals | 0.10% | |
Consumer and other | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 172 | |
Percentage of Total Deferrals | 0.10% | |
Consumer and other | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 59 | |
Percentage of Total Deferrals | 0.00% | |
Commercial real estate (including multi-family residential) | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 1,999,877 | 1,873,782 |
Commercial real estate (including multi-family residential) | Real estate | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 790,468 | |
Percentage of Total Deferrals | 69.90% | |
Commercial real estate (including multi-family residential) | Real estate | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 171,945 | |
Percentage of Total Deferrals | 75.50% | |
Commercial real estate (including multi-family residential) | Real estate | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 129,067 | |
Percentage of Total Deferrals | 80.00% | |
Commercial real estate construction and land development | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 367,213 | 410,471 |
Commercial real estate construction and land development | Real estate | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 88,446 | |
Percentage of Total Deferrals | 7.80% | |
Commercial real estate construction and land development | Real estate | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 20,032 | |
Percentage of Total Deferrals | 8.80% | |
Commercial real estate construction and land development | Real estate | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 5,860 | |
Percentage of Total Deferrals | 3.60% | |
1-4 family residential (including home equity) | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 737,605 | 698,957 |
1-4 family residential (including home equity) | Real estate | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 118,595 | |
Percentage of Total Deferrals | 10.50% | |
1-4 family residential (including home equity) | Real estate | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 12,922 | |
Percentage of Total Deferrals | 5.70% | |
1-4 family residential (including home equity) | Real estate | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 2,489 | |
Percentage of Total Deferrals | 1.60% | |
Residential construction | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for investment | $ 127,522 | $ 192,515 |
Residential construction | Real estate | Initial Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 4,452 | |
Percentage of Total Deferrals | 0.40% | |
Residential construction | Real estate | Additional Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred Loan Balance | $ 926 | |
Percentage of Total Deferrals | 0.40% | |
Residential construction | Real estate | Remaining Deferrals | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Percentage of Total Deferrals | 0.00% |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 772,890 | $ 372,545 |
Contractual Balance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 422,766 | 346,248 |
Available for sale securities | 772,890 | 372,545 |
Loans held for investment, net of allowance | 4,438,591 | 3,885,872 |
Accrued interest receivable | 40,053 | 15,468 |
Deposits | 4,988,482 | 4,068,101 |
Interest rate swap | 1,252 | |
Accrued interest payable | 2,701 | 4,326 |
Borrowed funds | 155,515 | 75,503 |
Subordinated debt | 108,322 | 107,799 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 422,766 | 346,248 |
Available for sale securities | 772,890 | 372,545 |
Loans held for investment, net of allowance | 4,431,816 | 3,918,210 |
Accrued interest receivable | 40,053 | 15,468 |
Deposits | 5,003,594 | 4,073,031 |
Interest rate swap | 1,252 | |
Accrued interest payable | 2,701 | 4,326 |
Borrowed funds | 144,629 | 83,302 |
Subordinated debt | 109,832 | 109,607 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 422,766 | 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 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
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 | 772,890 | 372,545 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 5,531 | 1,783 |
Deposits | 5,003,594 | 4,073,031 |
Interest rate swap | 1,252 | |
Accrued interest payable | 2,701 | 4,326 |
Borrowed funds | 144,629 | 83,302 |
Subordinated debt | 109,832 | 109,607 |
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 | 4,431,816 | 3,918,210 |
Accrued interest receivable | 34,520 | 13,672 |
Deposits | 0 | 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 Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 772,890,000 | $ 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 | 26,199,000 | 29,475,000 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 427,605,000 | 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 | 171,289,000 | 106,168,000 |
Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 84,370,000 | 107,342,000 |
Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 63,427,000 | 42,023,000 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 772,890,000 | 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 | 772,890,000 | 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 | 26,199,000 | 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 | 26,199,000 | 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 | 427,605,000 | 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 | 427,605,000 | 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 | 171,289,000 | 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 | 171,289,000 | 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 | 84,370,000 | 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 | 84,370,000 | 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 | 63,427,000 | 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 | 63,427,000 | 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 | 1,252,000 | |
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 | 1,252,000 | |
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) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate acquired through foreclosure | $ 9,196,000 | $ 8,337,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate acquired through foreclosure | 9,200,000 | 8,300,000 |
Valuation allowance for other real estate owned | $ 0 | 0 |
Collateral Dependent Loans Specific Allocation of Allowance for Credit Losses on Loans | 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% | |
Collateral Dependent Loans Specific Allocation of Allowance for Credit Losses on Loans | 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% | |
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 |
Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 0 | $ 0 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Dec. 31, 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 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] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 1 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 1 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Level 1 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 1 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Level 1 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Assets 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] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 2 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 2 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Level 2 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 2 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Level 2 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 0 | |
Impaired loans: | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 9,196 | 8,337 |
Assets are measured at fair value, nonrecurring basis | 22,895 | 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] | ||
Collateral Dependent Loans: | 8,650 | |
Impaired loans: | 4,332 | |
Level 3 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 2,594 | |
Impaired loans: | 4,876 | |
Level 3 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 529 | |
Level 3 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 53 | |
Impaired loans: | 10,057 | |
Level 3 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | 1,873 | |
Level 3 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral Dependent Loans: | $ 0 | |
Impaired loans: | $ 471 |
PREMISES AND EQUIPMENT - Premis
PREMISES AND EQUIPMENT - Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 87,318 | $ 80,303 |
Less: accumulated depreciation | 16,633 | 13,513 |
Premises and equipment, net | 70,685 | 66,790 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 13,913 | 13,913 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 39,998 | 36,826 |
Lease right-of-use assets | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 11,610 | 11,180 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 5,689 | 4,522 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 16,106 | 13,612 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 2 | $ 250 |
PREMISES AND EQUIPMENT - Narrat
PREMISES AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | ||
Depreciation | $ 3.7 | $ 3.2 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)BranchLocationandOfficeSpaceProperty | Dec. 31, 2019USD ($) | |
Lessee Lease Description [Line Items] | ||
Number of leased branch locations and office space along with equipment | BranchLocationandOfficeSpace | 14 | |
Operating lease, cost | $ 3,270 | $ 3,073 |
Operating lease, existence of option to extend | true | |
Allegiance Bank | ||
Lessee Lease Description [Line Items] | ||
Number of leased properties | Property | 2 | |
Operating lease, cost | $ 10,700 | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Lessee, operating Lease, term of contract | 12 months | |
Operating lease renewal term | 5 years | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating lease renewal term | 1 year |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Balance Sheet: | ||
Operating lease right of use asset classified as premises and equipment | $ 11,610 | $ 11,180 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Operating lease liability classified as other liabilities | $ 11,850 | $ 11,477 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilities | |
Weighted average lease term, in years | 5 years 6 months 21 days | 5 years 6 months 10 days |
Weighted average discount rate | 2.86% | 3.19% |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement: | ||
Operating lease cost | $ 3,270 | $ 3,073 |
Short-term lease cost | 78 | 553 |
Sublease income | (66) | (72) |
Total operating lease costs | $ 3,282 | $ 3,554 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Lease payments due: | ||
Within one year | $ 3,068 | $ 2,867 |
After one but within two years | 2,664 | 2,608 |
After two but within three years | 2,056 | 2,204 |
After three but within four years | 1,591 | 1,596 |
After four but within five years | 1,057 | 1,131 |
After five years | 2,355 | 2,162 |
Total lease payments | 12,791 | 12,568 |
Discount on cash flows | 941 | 1,091 |
Total lease liability | $ 11,850 | $ 11,477 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposit Liabilities [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 250 | |
Time deposits 250,000 or more | 726,800 | $ 485,800 |
Brokered deposits | 453,800 | 263,500 |
Related party deposit liabilities | $ 9,200 | $ 9,200 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposit Liabilities [Abstract] | ||
Within one year | $ 872,599 | |
After one but within two years | 313,154 | |
After two but within three years | 92,863 | |
After three but within four years | 39,782 | |
After four but within five years | 28,251 | |
Total | $ 1,346,649 | $ 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 | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivatives Fair Value [Line Items] | |
Weighted Average Maturity (In Years) | 4 years 7 days |
Weighted Average Pay Rate | 0.64% |
Receive Rate | 3 month LIBOR |
Notional Amount | $ 100,000,000 |
Estimated Fair Value | $ (1,252,000) |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |
Amount of Loss Recognized in Other Comprehensive Loss | $ (989) |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |
Derivative Instruments Gain Loss [Line Items] | |
Amount of Loss Recognized in Other Comprehensive Loss | $ (989) |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - Cash Flow Hedging - Designated as Hedging Instrument $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Derivative Instruments Gain Loss [Line Items] | |
Unrealized loss reclassified as interest expense during the next twelve months | $ 96 |
Losses, net of tax reclassified from accumulated other comprehensive income into net income | $ 76 |
BORROWINGS AND BORROWING CAPA_3
BORROWINGS AND BORROWING CAPACITY - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 28, 2018 | |
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 | $ 1,990,000,000 | |
Remaining borrowing capacity | 1,440,000,000 | |
Outstanding amount | 550,200,000 | |
Letters of credit, outstanding amount | 410,200,000 | |
Federal Home Loan Bank of Dallas | Expire in 2021 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 248,400,000 | |
Federal Home Loan Bank of Dallas | Expire in 2022 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 151,700,000 | |
Federal Home Loan Bank of Dallas | Expire in 2023 | ||
Debt Instrument [Line Items] | ||
Letters of credit, outstanding amount | 10,100,000 | |
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% |
BORROWINGS AND BORROWING CAPA_4
BORROWINGS AND BORROWING CAPACITY - Scheduled Principal Maturities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 0 |
2024 | 569 |
2025 and thereafter | 15,000 |
Total | $ 15,569 |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2020 | Jan. 01, 2015 | |
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, face amount | $ 60 | $ 40 | ||
Issuance price, percentage | 100.00% | 100.00% | ||
Proceeds from issuance of debt | $ 58.6 | $ 39.4 | ||
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] | ||||
Debt instrument, face amount | $ 11.3 | |||
Debt instrument, carrying value | $ 9.6 | |||
Debt instrument, unamortized discount | $ 2.5 | |||
Debentures, period over which company may defer interest payments | 5 years |
SUBORDINATED DEBT - Summary of
SUBORDINATED DEBT - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) | 12 Months Ended | |
Dec. 31, 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 | 0.23364% | |
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 December 31, 2020 was 0.23364%. |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Provision for Federal Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 17,527 | $ 13,514 | $ 8,204 |
Deferred | (7,090) | (87) | (256) |
Total | $ 10,437 | $ 13,427 | $ 7,948 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Taxes calculated at statutory rate | $ 11,754 | $ 13,940 | $ 9,504 |
Increase (decrease) resulting from: | |||
Stock based compensation | 136 | (11) | (400) |
Effect of tax-exempt income | (1,475) | (698) | (1,284) |
Other, net | 22 | 196 | 128 |
Total | $ 10,437 | $ 13,427 | $ 7,948 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Net shortfall (benefits), share-based compensation | $ (136,000) | $ 11,000 | $ 400,000 |
U.S. maximum federal statutory tax rate | 21.00% | 21.00% | |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Allowance for credit losses | $ 12,590 | $ 6,432 |
Deferred loan fees | 3,164 | |
Deferred compensation | 655 | 855 |
Cash flow hedge | 263 | |
Other deferred assets | 342 | |
Total deferred tax assets | 17,014 | 7,287 |
Deferred tax liabilities: | ||
Core deposit intangible and other purchase accounting adjustments | (3,964) | (3,591) |
Net unrealized gain on available for sale securities | (9,417) | (1,307) |
Premises and equipment basis difference | (2,573) | (2,099) |
Total deferred tax liabilities | (15,954) | (6,997) |
Net deferred tax assets | $ 1,060 | $ 290 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 3,200,000 | ||
Share-based compensation expense | $ 3,400 | $ 3,100 | $ 1,700 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 1,800,000 | ||
Option, cumulative options granted since inception (in shares) | 1,309,231 | ||
Stock options granted | 0 | 0 | |
Expiration period | 10 years | ||
Award vesting period | 4 years | ||
Unrecognized compensation cost | $ 110 | ||
Weighted average period over which unrecognized compensation | 6 months 10 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 4,300 | ||
Weighted average period over which unrecognized compensation | 2 years 3 months 10 days | ||
Share awards granted (in shares) | 64,000 | 88,000 | |
Share awards granted (in dollars per share) | $ 22.59 | $ 34.97 | |
Restricted Stock | Share Award Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option, cumulative options granted since inception (in shares) | 378,091 | ||
Award vesting period | 4 years | ||
Share awards granted (in shares) | 63,596 | 87,950 | |
Share awards granted (in dollars per share) | $ 22.59 | $ 34.97 | |
Award vested in period, fair value | $ 2,000 | $ 1,600 | $ 621 |
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 | 1 year 10 months 17 days | ||
Share awards granted (in shares) | 46,243 | 34,628 | |
Service period | 1 year | ||
Unrecognized compensation expense | $ 1,200 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plans Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | |||
Options outstanding, beginning balance (in shares) | 616 | 802 | |
Options exercised (in shares) | (141) | (179) | |
Options forfeited (in shares) | (6) | (7) | |
Options outstanding, ending balance (in shares) | 469 | 616 | 802 |
Number of options vested and exercisable (in shares) | 455 | ||
Weighted Average Exercise Price | |||
Options outstanding, beginning balance (in dollars per share) | $ 19.90 | $ 18.88 | |
Options exercised (in dollars per share) | 15.72 | 15.16 | |
Options forfeited (in dollars per share) | 20.36 | 24.18 | |
Options outstanding, ending balance (in dollars per share) | 21.08 | $ 19.90 | $ 18.88 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 20.58 | ||
Weighted Average Remaining Contractual Term, Options outstanding | 3 years 5 months 4 days | 4 years | 4 years 7 months 9 days |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 3 years 4 months 2 days | ||
Aggregate Intrinsic Value, Options outstanding | $ 6,118 | $ 10,904 | $ 10,830 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 6,164 |
STOCK BASED COMPENSATION - Info
STOCK BASED COMPENSATION - Information Related To The Stock Option Plan (Details) - Stock Option Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 734 | $ 751 | $ 3,254 |
Cash received from option exercises | $ 2,221 | $ 2,709 | $ 3,393 |
Weighted average fair value of options granted | $ 18 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Nonvested share awards outstanding, beginning balance (in shares) | 167 | 143 |
Share awards granted (in shares) | 64 | 88 |
Share awards vested (in shares) | (60) | (45) |
Unvested share awards forfeited or cancelled (in shares) | (13) | (19) |
Nonvested share awards outstanding, ending balance (in shares) | 158 | 167 |
Weighted Average Grant Date Fair Value | ||
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ 36.23 | $ 37.48 |
Share awards granted (in dollars per share) | 22.59 | 34.97 |
Share awards vested (in dollars per share) | 33.97 | 36.70 |
Unvested share awards forfeited or cancelled (in dollars per share) | 37.92 | 38.46 |
Nonvested share awards outstanding, ending balance | $ 30.78 | $ 36.23 |
OTHER EMPLOYEE BENEFITS (Detail
OTHER EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Share-based compensation expense | $ 3,400 | $ 3,100 | $ 1,700 |
401 (k) Benefit Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution, percent of match | 50.00% | ||
Employer matching contribution, percent of employee's gross pay | 6.00% | ||
Maximum annual contributions per employee, percent | 3.00% | ||
Employer contribution amount | $ 1,400 | 1,400 | 962 |
Profit Sharing Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer contribution amount | $ 3,500 | 3,700 | 2,500 |
Employee Stock Purchase Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employee purchase price for share as percent of discount to market value | 15.00% | ||
Share-based compensation expense | $ 142 | $ 210 | $ 48 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 771,190 | $ 518,254 |
Variable Rate | 488,070 | 535,779 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 761,938 | 507,411 |
Variable Rate | 480,067 | 531,470 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 9,252 | 10,843 |
Variable Rate | $ 8,003 | $ 4,309 |
OFF-BALANCE SHEET ARRANGEMENT_4
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
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 | 3 years 6 months 10 days |
Minimum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 1.20% |
Maximum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 18.00% |
Weighted Average | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 5.13% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total Capital | ||
Capital | $ 642,155 | $ 596,684 |
Capital to Risk Weighted Assets | 15.71% | 14.83% |
Capital Required for Capital Adequacy | $ 327,084 | $ 321,775 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 429,298 | $ 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 | $ 482,643 | $ 459,447 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 11.80% | 11.42% |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 183,985 | $ 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 | $ 286,199 | $ 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 | $ 492,281 | $ 468,972 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 12.04% | 11.66% |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 245,313 | $ 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 | $ 347,527 | $ 341,886 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 8.50% | 8.50% |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 492,281 | $ 468,972 |
Tier 1 Leverage Capital to Average Assets | 8.51% | 10.02% |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 231,518 | $ 187,146 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier 1 Leverage Capital | $ 231,518 | $ 187,146 |
Plus Tier 1 Leverage Capital to Average Assets | 4.00% | 4.00% |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 635,223 | $ 578,425 |
Capital to Risk Weighted Assets | 15.55% | 14.39% |
Capital Required for Capital Adequacy | $ 326,804 | $ 321,556 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 428,931 | $ 422,043 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 10.50% | 10.50% |
Capital Required to be Well Capitalized | $ 408,506 | $ 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 | $ 544,331 | $ 509,372 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 13.32% | 12.67% |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 183,828 | $ 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 | $ 285,954 | $ 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 | $ 265,529 | $ 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 | $ 544,331 | $ 509,372 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 13.32% | 12.67% |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 245,103 | $ 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 | $ 347,230 | $ 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 | $ 326,804 | $ 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 | $ 544,331 | $ 509,372 |
Tier 1 Leverage Capital to Average Assets | 9.41% | 10.89% |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 231,334 | $ 187,018 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier 1 Leverage Capital | $ 231,334 | $ 187,018 |
Plus Tier 1 Leverage Capital to Average Assets | 4.00% | 4.00% |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 289,167 | $ 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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to shareholders | $ 45,534 | $ 52,959 | $ 37,309 | ||||||||
Basic: | |||||||||||
Weighted average shares outstanding (in shares) | 20,415 | 21,152 | 15,485 | ||||||||
Weighted average shares outstanding (in dollars per share) | $ 0.78 | $ 0.79 | $ 0.49 | $ 0.17 | $ 0.68 | $ 0.57 | $ 0.67 | $ 0.58 | $ 2.23 | $ 2.50 | $ 2.41 |
Diluted: | |||||||||||
Dilutive effect of stock option exercises (in shares) | 131 | 272 | 288 | ||||||||
Total (in shares) | 20,546 | 21,424 | 15,773 | ||||||||
Total (in dollars per share) | $ 0.77 | $ 0.79 | $ 0.48 | $ 0.17 | $ 0.67 | $ 0.57 | $ 0.66 | $ 0.58 | $ 2.22 | $ 2.47 | $ 2.37 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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) | 39,050 | 23,125 | 54,175 |
PARENT COMPANY ONLY FINANCIAL_3
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||||
Cash and due from banks | $ 122,897 | $ 213,347 | ||
Other assets | 18,909 | 18,530 | ||
TOTAL ASSETS | 6,050,128 | 4,992,654 | ||
LIABILITIES: | ||||
Subordinated debt | 108,322 | 107,799 | ||
Total liabilities | 5,291,459 | 4,282,789 | ||
SHAREHOLDERS’ EQUITY: | ||||
Common stock | 20,208 | 20,524 | ||
Capital surplus | 508,794 | 521,066 | ||
Retained earnings | 195,236 | 163,375 | ||
Accumulated other comprehensive income | 34,431 | 4,900 | ||
Total shareholders’ equity | 758,669 | 709,865 | $ 702,984 | $ 306,865 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 6,050,128 | 4,992,654 | ||
Parent Company | ||||
ASSETS | ||||
Cash and due from banks | 19,340 | 17,775 | ||
Investment in subsidiary | 820,699 | 760,131 | ||
Other assets | 2,691 | 1,665 | ||
TOTAL ASSETS | 842,730 | 779,571 | ||
LIABILITIES: | ||||
Other borrowed funds | 15,514 | 504 | ||
Subordinated debt | 68,577 | 68,184 | ||
Accrued interest payable and other liabilities | (30) | 1,018 | ||
Total liabilities | 84,061 | 69,706 | ||
SHAREHOLDERS’ EQUITY: | ||||
Common stock | 20,208 | 20,524 | ||
Capital surplus | 508,794 | 521,066 | ||
Retained earnings | 195,236 | 163,375 | ||
Accumulated other comprehensive income | 34,431 | 4,900 | ||
Total shareholders’ equity | 758,669 | 709,865 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 842,730 | $ 779,571 |
PARENT COMPANY ONLY FINANCIAL_4
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING EXPENSE: | |||
Interest expense on borrowed funds | $ 39,079 | $ 53,370 | $ 29,644 |
Income tax benefit | (10,437) | (13,427) | (7,948) |
Net income | 45,534 | 52,959 | 37,309 |
Parent Company | |||
OPERATING INCOME: | |||
Other income | 16 | 25 | 16 |
Total income | 16 | 25 | 16 |
OPERATING EXPENSE: | |||
Interest expense on borrowed funds | 3,497 | 1,459 | 38 |
Other expenses | 1,595 | 1,922 | 1,692 |
Total operating expense | 5,092 | 3,381 | 1,730 |
Income before income tax benefit and equity in undistributed income of subsidiaries | (5,076) | (3,356) | (1,714) |
Income tax benefit | 1,066 | 705 | 360 |
Income before equity in undistributed income of subsidiaries | (4,010) | (2,651) | (1,354) |
Dividends from subsidiary and equity in undistributed income of subsidiaries | 49,544 | 55,610 | 38,663 |
Net income | $ 45,534 | $ 52,959 | $ 37,309 |
PARENT COMPANY ONLY FINANCIAL_5
PARENT COMPANY ONLY FINANCIAL STATEMENTS - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 45,534 | $ 52,959 | $ 37,309 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization of discount on subordinated debentures | 113 | 111 | 110 |
Stock based compensation expense | 3,425 | 3,100 | 1,685 |
(Decrease) increase in accrued interest payable and other liabilities | 2,395 | 3,053 | 1,822 |
Net cash provided by operating activities | 61,063 | 66,867 | 46,059 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Net cash used in investing activities | (961,104) | (233,514) | (31,155) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from the issuance of common stock, stock option exercises and the ESPP | 2,569 | 3,412 | 3,750 |
Net increase in borrowings under credit agreement | 15,000 | ||
Proceeds from subordinated notes issuance, net of offering expenses | 58,601 | ||
Dividends paid to common shareholders | (8,165) | ||
Repurchase of common stock | (18,582) | (58,663) | (2,112) |
Net cash provided by financing activities | 976,559 | 243,948 | 71,940 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 346,248 | ||
CASH AND CASH EQUIVALENTS, END OF PERIOD | 422,766 | 346,248 | |
Parent Company | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 45,534 | 52,959 | 37,309 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries | (49,544) | (55,610) | (38,663) |
Net amortization of discount on subordinated debentures | 392 | 169 | 110 |
Stock based compensation expense | 3,425 | 3,100 | 1,685 |
Increase in other assets | (1,026) | (639) | (236) |
(Decrease) increase in accrued interest payable and other liabilities | (1,038) | 166 | 279 |
Net cash provided by operating activities | (2,257) | 145 | 484 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Dividend from subsidiary | 13,000 | 7,500 | |
Net cash used in investing activities | 13,000 | 7,500 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from the issuance of common stock, stock option exercises and the ESPP | 2,569 | 3,412 | 3,552 |
Net increase in borrowings under credit agreement | 15,000 | ||
Proceeds from subordinated notes issuance, net of offering expenses | 58,601 | ||
Dividends paid to common shareholders | (8,165) | ||
Repurchase of common stock | (18,582) | (58,663) | (2,113) |
Net cash provided by financing activities | (9,178) | 3,350 | 1,439 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 1,565 | 10,995 | 1,923 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 17,775 | 6,780 | 4,857 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 19,340 | $ 17,775 | $ 6,780 |
QUARTERLY FINANCIAL DATA (UNA_3
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $ 63,047 | $ 60,811 | $ 60,452 | $ 57,452 | $ 58,147 | $ 58,665 | $ 58,946 | $ 57,149 | $ 241,762 | $ 232,907 | $ 158,223 |
Net Interest Income | 54,902 | 51,909 | 50,847 | 45,025 | 44,526 | 44,837 | 45,571 | 44,603 | 202,683 | 179,537 | 128,579 |
Net Income Attributable to Common Shareholders | $ 15,941 | $ 16,170 | $ 9,907 | $ 3,516 | $ 13,986 | $ 12,047 | $ 14,248 | $ 12,678 | $ 45,534 | $ 52,959 | $ 37,309 |
Earnings Per Share, Basic (in dollars per share) | $ 0.78 | $ 0.79 | $ 0.49 | $ 0.17 | $ 0.68 | $ 0.57 | $ 0.67 | $ 0.58 | $ 2.23 | $ 2.50 | $ 2.41 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.77 | $ 0.79 | $ 0.48 | $ 0.17 | $ 0.67 | $ 0.57 | $ 0.66 | $ 0.58 | $ 2.22 | $ 2.47 | $ 2.37 |
SUBSEQUENT EVENT - Narrative (D
SUBSEQUENT EVENT - Narrative (Details) - Subsequent Event | Jan. 27, 2021$ / shares |
Subsequent Event [Line Items] | |
Quarterly cash dividend, date declared | Jan. 27, 2021 |
Quarterly cash dividend, amount per share | $ 0.12 |
Quarterly cash dividend, date to be paid | Mar. 15, 2021 |
Quarterly cash dividend, date of record | Feb. 26, 2021 |