Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | Allegiance Bancshares, Inc. | |
Entity Central Index Key | 1,642,081 | |
Trading Symbol | abtx | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 13,181,544 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 140,348 | $ 94,073 |
Interest-bearing deposits at other financial institutions | 52,079 | 48,025 |
Total cash and cash equivalents | 192,427 | 142,098 |
Available for sale securities, at fair value | 323,856 | 316,455 |
Loans held for investment | 2,201,540 | 1,891,635 |
Less: allowance for loan losses | (23,722) | (17,911) |
Loans, net | 2,177,818 | 1,873,724 |
Accrued interest receivable | 7,993 | 9,007 |
Premises and equipment, net | 18,273 | 18,340 |
Other real estate owned | 453 | 1,503 |
Federal Home Loan Bank stock | 12,790 | 13,175 |
Bank owned life insurance | 22,277 | 21,837 |
Goodwill | 39,389 | 39,389 |
Core deposit intangibles, net | 3,469 | 4,055 |
Other assets | 14,689 | 11,365 |
TOTAL ASSETS | 2,813,434 | 2,450,948 |
Deposits: | ||
Noninterest-bearing | 712,951 | 593,751 |
Interest-bearing | ||
Demand | 207,140 | 114,772 |
Money market and savings | 609,640 | 483,266 |
Certificates and other time | 756,884 | 678,394 |
Total interest-bearing deposits | 1,573,664 | 1,276,432 |
Total deposits | 2,286,615 | 1,870,183 |
Accrued interest payable | 521 | 285 |
Borrowed funds | 207,569 | 285,569 |
Subordinated debentures | 9,277 | 9,196 |
Other liabilities | 6,725 | 5,898 |
Total liabilities | 2,510,707 | 2,171,131 |
COMMITMENTS AND CONTINGENCIES (See Note 12) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1 par value; 1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $1 par value; 40,000,000 shares authorized; 13,170,729 shares issued and outstanding at September 30, 2017 and 12,958,341 shares issued and outstanding at December 31, 2016 | 13,171 | 12,958 |
Capital surplus | 216,943 | 212,649 |
Retained earnings | 71,690 | 57,262 |
Accumulated other comprehensive income (loss) | 923 | (3,052) |
Total shareholders’ equity | 302,727 | 279,817 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,813,434 | $ 2,450,948 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 13,170,729 | 12,958,341 |
Common stock, shares outstanding (in shares) | 13,170,729 | 12,958,341 |
Series A Preferred Stock | ||
Shares issued (in shares) | 0 | 0 |
Shares outstanding (in shares) | 0 | 0 |
Series B Preferred Stock | ||
Shares issued (in shares) | 0 | 0 |
Shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 28,588 | $ 24,057 | $ 80,584 | $ 69,124 |
Securities: | ||||
Taxable | 547 | 607 | 1,548 | 1,329 |
Tax-exempt | 1,574 | 1,505 | 4,789 | 3,402 |
Deposits in other financial institutions | 192 | 150 | 479 | 442 |
Total interest income | 30,901 | 26,319 | 87,400 | 74,297 |
INTEREST EXPENSE: | ||||
Demand, money market and savings deposits | 811 | 651 | 2,167 | 1,764 |
Certificates and other time deposits | 2,299 | 1,872 | 6,539 | 5,097 |
Borrowed funds | 654 | 264 | 2,068 | 634 |
Subordinated debentures | 140 | 123 | 394 | 360 |
Total interest expense | 3,904 | 2,910 | 11,168 | 7,855 |
NET INTEREST INCOME | 26,997 | 23,409 | 76,232 | 66,442 |
Provision for loan losses | 6,908 | 2,214 | 11,258 | 4,569 |
Net interest income after provision for loan losses | 20,089 | 21,195 | 64,974 | 61,873 |
NONINTEREST INCOME: | ||||
Nonsufficient funds fees | 144 | 175 | 527 | 483 |
Service charges on deposit accounts | 204 | 182 | 604 | 500 |
Gain on sale of branch assets | 0 | 0 | 0 | 2,050 |
Loss on sale of securities | (12) | 0 | (12) | 0 |
Gain on sale of other real estate | 0 | 60 | 0 | 60 |
Bank owned life insurance income | 146 | 154 | 440 | 473 |
Other | 978 | 703 | 2,719 | 2,224 |
Total noninterest income | 1,460 | 1,274 | 4,278 | 5,790 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 11,580 | 9,781 | 32,557 | 28,231 |
Net occupancy and equipment | 1,325 | 1,260 | 4,054 | 3,706 |
Depreciation | 427 | 404 | 1,225 | 1,236 |
Data processing and software amortization | 783 | 655 | 2,197 | 1,930 |
Professional fees | 822 | 442 | 2,704 | 1,377 |
Regulatory assessments and FDIC insurance | 582 | 396 | 1,740 | 1,096 |
Core deposit intangibles amortization | 195 | 196 | 586 | 590 |
Communications | 251 | 264 | 731 | 818 |
Advertising | 302 | 228 | 853 | 626 |
Other | 1,409 | 1,269 | 4,039 | 3,461 |
Total noninterest expense | 17,676 | 14,895 | 50,686 | 43,071 |
INCOME BEFORE INCOME TAXES | 3,873 | 7,574 | 18,566 | 24,592 |
Provision for income taxes | 887 | 2,103 | 4,138 | 7,512 |
NET INCOME | $ 2,986 | $ 5,471 | $ 14,428 | $ 17,080 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.23 | $ 0.42 | $ 1.10 | $ 1.33 |
Diluted (in dollars per share) | $ 0.22 | $ 0.42 | $ 1.07 | $ 1.31 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,986 | $ 5,471 | $ 14,428 | $ 17,080 |
Unrealized gain (loss) on securities: | ||||
Change in unrealized holding gain (loss) on available for sale securities during the period | 735 | (2,308) | 6,115 | 5,127 |
Reclassification of amount realized through the sale of securities | 12 | 0 | 12 | 0 |
Total other comprehensive income (loss) | 747 | (2,308) | 6,127 | 5,127 |
Income tax effect to other comprehensive income (loss) | (268) | 808 | (2,152) | (1,794) |
Other comprehensive income (loss), net of tax | 479 | (1,500) | 3,975 | 3,333 |
Comprehensive income | $ 3,465 | $ 3,971 | $ 18,403 | $ 20,413 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Balance (in shares) at Dec. 31, 2015 | 12,814,696 | |||||
Balance at Dec. 31, 2015 | $ 258,490 | $ 12,815 | $ 209,285 | $ 34,411 | $ 2,017 | $ (38) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 17,080 | 17,080 | ||||
Other comprehensive income | 3,333 | 3,333 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 90,372 | |||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 1,076 | $ 90 | 986 | |||
Repurchase of treasury stock | 38 | 38 | ||||
Stock based compensation expense | 1,078 | 1,078 | ||||
Balance (in shares) at Sep. 30, 2016 | 12,905,068 | |||||
Balance at Sep. 30, 2016 | 281,095 | $ 12,905 | 211,349 | 51,491 | 5,350 | 0 |
Balance (in shares) at Dec. 31, 2016 | 12,958,341 | |||||
Balance at Dec. 31, 2016 | 279,817 | $ 12,958 | 212,649 | 57,262 | (3,052) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 14,428 | 14,428 | ||||
Other comprehensive income | 3,975 | 3,975 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 212,388 | |||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 3,213 | $ 213 | 3,000 | |||
Stock based compensation expense | 1,294 | 1,294 | ||||
Balance (in shares) at Sep. 30, 2017 | 13,170,729 | |||||
Balance at Sep. 30, 2017 | $ 302,727 | $ 13,171 | $ 216,943 | $ 71,690 | $ 923 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 14,428,000 | $ 17,080,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 1,811,000 | 1,826,000 |
Provision for loan losses | 11,258,000 | 4,569,000 |
Excess tax benefit related to the exercise of stock options | (989,000) | (327,000) |
Net amortization of premium on investments | 2,550,000 | 2,048,000 |
Bank owned life insurance | (440,000) | (473,000) |
Net accretion of discount on loans | (536,000) | (1,213,000) |
Net amortization of discount on subordinated debentures | 81,000 | 80,000 |
Net amortization of discount on certificates of deposit | (3,000) | (228,000) |
Net gain on sale or write down of premises, equipment and other real estate | 0 | (60,000) |
Net gain on sale of branch assets | 0 | (2,050,000) |
Federal Home Loan Bank stock dividends | (201,000) | (60,000) |
Stock based compensation expense | 1,294,000 | 1,078,000 |
Increase in accrued interest receivable and other assets | (4,091,000) | (3,461,000) |
Increase in accrued interest payable and other liabilities | 2,052,000 | 2,483,000 |
Net cash provided by operating activities | 27,214,000 | 21,292,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of available for sale securities | 2,007,007,000 | 2,564,916,000 |
Proceeds from sales of available for sale securities | 9,000,000 | 0 |
Purchase of available for sale securities | (2,019,843,000) | (2,706,773,000) |
Net change in total loans | (314,816,000) | (168,108,000) |
Purchase of bank premises and equipment | (1,517,000) | (590,000) |
Proceeds from sale of bank premises, equipment and other real estate | 1,050,000 | 0 |
Net purchases of Federal Home Loan Bank stock | 586,000 | (9,309,000) |
Net cash paid for the sale of branch assets | 0 | (5,250,000) |
Net cash used in investing activities | (318,533,000) | (325,114,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in noninterest-bearing deposits | 119,200,000 | (9,514,000) |
Net increase in interest-bearing deposits | 297,235,000 | 177,873,000 |
Proceeds from borrowed funds | 25,000,000 | 231,000,000 |
Paydowns on borrowed funds | (103,000,000) | (20,000,000) |
Proceeds from the issuance of common stock, stock option exercises, restricted stock awards and the ESPP | 3,213,000 | 1,076,000 |
Issuance of treasury stock | 0 | 38,000 |
Net cash provided by financing activities | 341,648,000 | 380,473,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 50,329,000 | 76,651,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 142,098,000 | 148,431,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 192,427,000 | 225,082,000 |
SUPPLEMENTAL INFORMATION: | ||
Income taxes paid | 6,000,000 | 9,100,000 |
Interest paid | $ 10,929,000 | $ 2,541,000 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations -Allegiance Bancshares, Inc. (“Allegiance”) and its wholly-owned subsidiary, Allegiance Bank, (the “Bank”, and together with Allegiance, collectively referred to as the “Company”) provide commercial and retail loans and commercial banking services. The Company derives substantially all of its revenues and income from the operation of the Bank. The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small to mid-sized businesses, professionals and individuals through its 16 offices and one loan production office in Houston, Texas and the surrounding region. The Bank provides its customers with a variety of banking services including checking accounts, savings accounts and certificates of deposit, and its primary lending products are commercial, personal, automobile, mortgage and home improvement loans. The Bank also offers safe deposit boxes, automated teller machines, drive-through services and 24-hour depository facilities. Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions with Allegiance have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . Significant Accounting and Reporting Policies The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . New Accounting Standards Newly Issued But Not Yet Effective Accounting Standards ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for the Company beginning on January 1, 2018, with retrospective application to each prior reporting period presented. The Company expects to adopt ASU 2014-09 in the first quarter 2018 using the modified retrospective approach, which includes presenting the cumulative effect of initial application along with supplementary disclosures. The Company is evaluating the full effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures; however, adoption of the ASU is not expected to have a significant impact. The Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of ASU 2014-09. ASU 2016-02 “Leases (Topic 842)." ASU 2016-02 will, among other things, require 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 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s financial statements. The Company leases certain properties and equipment under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for the Company on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. The Company has formed a team that is assessing its data and system needs and is evaluating the impact of adoption. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but has not yet determined the magnitude of any such one-time adjustment or the overall impact on the Company’s financial statements. ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on its financial condition or results of operation. 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 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2017-08 on its financial statements. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisition of F&M Bancshares - On January 1, 2015, the Company completed the acquisition of F&M Bancshares, Inc. (“F&M Bancshares”) and its wholly-owned subsidiary Enterprise Bank (“Enterprise”) headquartered in Houston, Texas. Enterprise operated nine bank offices, seven in Houston, Texas and two in Central Texas. During the first quarter of 2016, the Bank completed the sale of the two Central Texas branch locations of Enterprise. The Bank sold $18.2 million and $26.6 million of loans and deposits, respectively, and recorded a gain of approximately $2.1 million on the sale of these branches. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of January 1, 2016 $ 39,389 $ 5,230 Sale of branch assets — (390 ) Amortization — (785 ) Balance as of December 31, 2016 39,389 4,055 Amortization — (586 ) Balance as of September 30, 2017 $ 39,389 $ 3,469 Goodwill is recorded on the acquisition date of an entity. Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill and other intangible assets has occurred. If any such impairment is determined, a write-down is recorded. As of September 30, 2017 , there were no impairments recorded on goodwill and other intangible assets. During the first quarter 2016, the Bank completed the sale of the two Central Texas branch locations of Enterprise and wrote-down the core deposit intangible assets related to those locations. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2017 is as follows (dollars in thousands): Remaining 2017 $ 195 2018 781 2019 781 2020 744 2021 484 Thereafter 484 Total $ 3,469 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 8,496 $ 302 $ (18 ) $ 8,780 Municipal securities 237,342 2,999 (1,969 ) 238,372 Agency mortgage-backed pass-through securities 30,183 222 (273 ) 30,132 Corporate bonds and other 46,416 197 (41 ) 46,572 Total $ 322,437 $ 3,720 $ (2,301 ) $ 323,856 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,883 $ 266 $ — $ 6,149 Municipal securities 242,501 956 (5,655 ) 237,802 Agency mortgage-backed pass-through securities 27,496 265 (437 ) 27,324 Corporate bonds and other 45,271 77 (168 ) 45,180 Total $ 321,151 $ 1,564 $ (6,260 ) $ 316,455 As of September 30, 2017 , the Company’s management does not expect to sell any securities classified as available for sale with material unrealized losses, and the Company believes it is more likely than not it will not be required to sell any of these securities before their anticipated recovery, at which time the Company will receive full value for the securities. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2017 , management believes the unrealized losses in the previous table are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated statements of income. The amortized cost and fair value of investment securities at September 30, 2017 , 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 Cost Fair Value (Dollars in thousands) Due in one year or less $ 10,879 $ 10,904 Due after one year through five years 65,441 65,873 Due after five years through ten years 100,154 100,909 Due after ten years 115,780 116,038 Subtotal 292,254 293,724 Agency mortgage-backed pass through securities 30,183 30,132 Total $ 322,437 $ 323,856 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2017 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 1,153 $ (18 ) $ — $ — $ 1,153 $ (18 ) Municipal securities 51,739 (554 ) 56,306 (1,415 ) 108,045 (1,969 ) Agency mortgage-backed pass-through securities 13,173 (168 ) 3,581 (105 ) 16,754 (273 ) Corporate bonds and other 9,222 (41 ) — — 9,222 (41 ) Total $ 75,287 $ (781 ) $ 59,887 $ (1,520 ) $ 135,174 $ (2,301 ) December 31, 2016 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 178,876 (5,655 ) — — 178,876 (5,655 ) Agency mortgage-backed pass-through securities 12,520 (347 ) 2,803 (90 ) 15,323 (437 ) Corporate bonds and other 24,629 (168 ) — — 24,629 (168 ) Total $ 216,025 $ (6,170 ) $ 2,803 $ (90 ) $ 218,828 $ (6,260 ) During the three and nine months ended September 30, 2017 , the Company sold $9.0 million of corporate bonds with a minimal gain recognized. No securities were sold during the three and nine months ended September 30, 2016. At September 30, 2017 and December 31, 2016 , the Company did not own securities of any one issuer, other than the U.S government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates. The carrying value of pledged securities was $5.0 million at September 30, 2017 and $4.9 million at December 31, 2016 . The securities are pledged to further collateralize letters of credit issued by the Bank but confirmed by another financial institution. |
LOANS AND ALLOWANCE FOR LOAN LO
LOANS AND ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Allowance for Loan Losses [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | LOANS AND ALLOWANCE FOR LOAN LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, December 31, (Dollars in thousands) Commercial and industrial $ 446,029 $ 416,752 Mortgage warehouse 83,577 67,038 Real estate: Commercial real estate (including multi-family residential) 1,045,220 891,989 Commercial real estate construction and land development 225,574 159,247 1-4 family residential (including home equity) 283,399 246,987 Residential construction 106,299 98,657 Consumer and other 11,442 10,965 Total loans 2,201,540 1,891,635 Allowance for loan losses (23,722 ) (17,911 ) Loans, net $ 2,177,818 $ 1,873,724 Nonaccrual and Past Due Loans An aging analysis of the recorded investment in past due loans, segregated by class of loans, is as follows: September 30, 2017 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 5,224 $ — $ 5,224 $ 5,031 $ 435,774 $ 446,029 Mortgage warehouse — — — — 83,577 83,577 Real estate: Commercial real estate (including multi-family residential) 2,736 — 2,736 8,097 1,034,387 1,045,220 Commercial real estate construction and land development 1,266 — 1,266 — 224,308 225,574 1-4 family residential (including home equity) 1,012 — 1,012 735 281,652 283,399 Residential construction 1,779 — 1,779 — 104,520 106,299 Consumer and other 32 — 32 50 11,360 11,442 Total loans $ 12,049 $ — $ 12,049 $ 13,913 $ 2,175,578 $ 2,201,540 December 31, 2016 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,028 $ 911 $ 1,939 $ 3,896 $ 410,917 $ 416,752 Mortgage warehouse — — — — 67,038 67,038 Real estate: Commercial real estate (including multi-family residential) 1,661 — 1,661 11,663 878,665 891,989 Commercial real estate construction and land development 263 — 263 — 158,984 159,247 1-4 family residential (including home equity) 280 — 280 217 246,490 246,987 Residential construction — — — — 98,657 98,657 Consumer and other 125 — 125 12 10,828 10,965 Total loans $ 3,357 $ 911 $ 4,268 $ 15,788 $ 1,871,579 $ 1,891,635 Impaired Loans Impaired loans by class of loans are set forth in the following tables. September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,461 $ 6,787 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 7,195 7,195 — Commercial real estate construction and land development 209 209 — 1-4 family residential (including home equity) 1,327 1,327 — Residential construction — — — Consumer and other 2 2 — Total 14,194 15,520 — With an allowance recorded: Commercial and industrial 7,569 7,569 2,947 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 9,304 9,525 862 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 48 48 20 Total 16,921 17,142 3,829 Total: Commercial and industrial 13,030 14,356 2,947 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,499 16,720 862 Commercial real estate construction and land development 209 209 — 1-4 family residential (including home equity) 1,327 1,327 — Residential construction — — — Consumer and other 50 50 20 $ 31,115 $ 32,662 $ 3,829 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,300 $ 5,414 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 11,748 11,833 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 5 5 — Total 17,270 17,469 — With an allowance recorded: Commercial and industrial 3,108 3,328 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 573 573 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 6 6 6 Total 3,687 3,907 1,654 Total: Commercial and industrial 8,408 8,742 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 12,321 12,406 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 11 11 6 $ 20,957 $ 21,376 $ 1,654 The following table presents average impaired loans and interest recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 13,848 $ 98 $ 7,461 $ 211 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,568 147 12,486 159 Commercial real estate construction and land development 209 3 — — 1-4 family residential (including home equity) 1,342 3 524 16 Residential construction — — — — Consumer and other 51 — 50 1 Total $ 32,018 $ 251 $ 20,521 $ 387 Nine Months Ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 14,343 $ 332 $ 8,963 $ 374 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,737 327 13,373 381 Commercial real estate construction and land development 314 7 — — 1-4 family residential (including home equity) 1,352 4 814 24 Residential construction — — — — Consumer and other 58 1 61 3 Total $ 32,804 $ 671 $ 23,211 $ 782 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including factors such as: current financial information, historical payment experience, credit documentation, public information and current economic trends. The Company analyzes loans individually by classifying the loans by credit risk. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks risk ratings to be used as credit quality indicators. The following is a general description of the risk ratings used: Pass —Loans classified as pass are loans with low to average risk and not otherwise classified as watch, special mention, substandard or doubtful. In addition, the guaranteed portion of SBA loans are considered pass risk rated loans. Watch —Loans classified as watch loans may still be of high quality, but have an element of risk added to the credit such as declining payment history, deteriorating financial position of the borrower or a decrease in collateral value. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard —Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, impaired or declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These classified loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values highly questionable and improbable. Based on the most recent analysis performed, the risk category of loans by class of loan at September 30, 2017 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 413,195 $ 12,270 $ 1,698 $ 18,866 $ — $ 446,029 Mortgage warehouse 83,577 — — — — 83,577 Real estate: Commercial real estate (including multi-family residential) 985,254 18,220 3,672 38,074 — 1,045,220 Commercial real estate construction and land development 213,312 4,790 2,426 5,046 — 225,574 1-4 family residential (including home equity) 278,224 838 1,980 2,357 — 283,399 Residential construction 104,051 2,248 — — — 106,299 Consumer and other 11,250 139 3 50 — 11,442 Total loans $ 2,088,863 $ 38,505 $ 9,779 $ 64,393 $ — $ 2,201,540 The following table presents the risk category of loans by class of loan at December 31, 2016 : Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 384,979 $ 11,784 $ 3,344 $ 16,645 $ — $ 416,752 Mortgage warehouse 67,038 — — — — 67,038 Real estate: Commercial real estate (including multi-family residential) 834,781 16,009 6,804 34,395 — 891,989 Commercial real estate construction and land development 149,010 8,124 — 2,113 — 159,247 1-4 family residential (including home equity) 242,208 512 2,069 2,198 — 246,987 Residential construction 97,808 — 415 434 — 98,657 Consumer and other 10,520 364 4 77 — 10,965 Total loans $ 1,786,344 $ 36,793 $ 12,636 $ 55,862 $ — $ 1,891,635 Allowance for Loan Losses The following table presents the activity in the allowance for loan losses by portfolio type for the three and nine months ended September 30, 2017 and 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Three Months Ended Balance June 30, 2017 $ 6,282 $ — $ 9,328 $ 1,894 $ 1,988 $ 835 $ 683 $ 21,010 Provision for loan losses 3,925 — 2,580 443 272 148 (460 ) 6,908 Charge-offs (4,059 ) — — — — — (148 ) (4,207 ) Recoveries 11 — — — — — — 11 Net charge-offs (4,048 ) — — — — — (148 ) (4,196 ) Balance September 30, 2017 $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 Nine Months Ended Balance January 1, 2017 $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 Provision for loan losses 6,423 — 2,958 1,110 374 235 158 11,258 Charge-offs (5,794 ) — — — — — (148 ) (5,942 ) Recoveries 471 — — 10 10 — 4 495 Net charge-offs (5,323 ) — — 10 10 — (144 ) (5,447 ) Balance September 30, 2017 $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 Allowance for loan losses: Three Months Ended Balance June 30, 2016 $ 4,105 $ — $ 6,846 $ 1,368 $ 1,642 $ 887 $ 69 $ 14,917 Provision for loan losses 781 — 1,563 (76 ) 101 (159 ) 4 2,214 Charge-offs (8 ) — — — — — (4 ) (12 ) Recoveries 22 — 43 — — — 1 66 Net charge-offs 14 — 43 — — — (3 ) 54 Balance September 30, 2016 $ 4,900 $ — $ 8,452 $ 1,292 $ 1,743 $ 728 $ 70 $ 17,185 Nine Months Ended Balance January 1, 2016 $ 3,644 $ — $ 5,914 $ 1,221 $ 1,432 $ 820 $ 67 $ 13,098 Provision for loan losses 1,640 — 2,624 71 301 (92 ) 25 4,569 Charge-offs (451 ) — (129 ) — — — (26 ) (606 ) Recoveries 67 — 43 — 10 — 4 124 Net charge-offs (384 ) — (86 ) — 10 — (22 ) (482 ) Balance September 30, 2016 $ 4,900 $ — $ 8,452 $ 1,292 $ 1,743 $ 728 $ 70 $ 17,185 The following table presents the balance of the allowance for loan losses by portfolio type based on the impairment method as of September 30, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: September 30, 2017 Individually evaluated for impairment $ 2,947 $ — $ 862 $ — $ — $ — $ 20 $ 3,829 Collectively evaluated for impairment 3,212 — 11,046 2,337 2,260 983 55 19,893 Total allowance for loan losses $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 December 31, 2016 Individually evaluated for impairment $ 1,543 $ — $ 105 $ — $ — $ — $ 6 $ 1,654 Collectively evaluated for impairment 3,516 — 8,845 1,217 1,876 748 55 16,257 Total allowance for loan losses $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of September 30, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: September 30, 2017 Individually evaluated for impairment $ 13,030 $ — $ 16,499 $ 209 $ 1,327 $ — $ 50 $ 31,115 Collectively evaluated for impairment 432,999 83,577 1,028,721 225,365 282,072 106,299 11,392 2,170,425 Total loans evaluated for impairment $ 446,029 $ 83,577 $ 1,045,220 $ 225,574 $ 283,399 $ 106,299 $ 11,442 $ 2,201,540 December 31, 2016 Individually evaluated for impairment $ 8,408 $ — $ 12,321 $ — $ 217 $ — $ 11 $ 20,957 Collectively evaluated for impairment 408,344 67,038 879,668 159,247 246,770 98,657 10,954 1,870,678 Total loans evaluated for impairment $ 416,752 $ 67,038 $ 891,989 $ 159,247 $ 246,987 $ 98,657 $ 10,965 $ 1,891,635 Troubled Debt Restructurings As of September 30, 2017 and December 31, 2016 , the Company had a recorded investment in troubled debt restructurings of $24.3 million and $12.6 million , respectively. The Company allocated $1.9 million and $879 thousand of specific reserves for troubled debt restructurings at September 30, 2017 and December 31, 2016 , respectively, and did not commit to lend additional amounts on these loans. The following tables present information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 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 4 $ 1,520 $ 1,520 4 $ 872 $ 872 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 502 502 1 632 632 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — — — — — — Residential construction — — — — — — Consumer and other — — — — — — Total 5 $ 2,022 $ 2,022 5 $ 1,504 $ 1,504 Nine Months Ended September 30, 2017 2016 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 7 $ 3,441 $ 3,441 16 $ 3,803 $ 3,803 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 8,783 8,783 7 6,882 6,882 Commercial real estate construction and land development 1 210 210 — — — 1-4 family residential (including home equity) 1 86 86 — — — Residential construction — — — — — — Consumer and other — — — 1 7 7 Total 12 $ 12,520 $ 12,520 24 $ 10,692 $ 10,692 Troubled debt restructurings resulted in charge-offs of $407 thousand during the nine months ended September 30, 2017. There were no charge offs from troubled debt restructurings during the three months ended September 30, 2017. There were $442 thousand in charge-offs resulting from troubled debt restructurings during the nine months ended September 30, 2016. There were no charge offs from troubled debt restructurings during the three months ended September 30, 2016. As of September 30, 2017 , a $12 thousand loan was modified under a troubled debt restructuring during the previous twelve month period that subsequently defaulted and was charged off during the nine months ended September 30, 2017 . As of September 30, 2016 , a $32 thousand loan was modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the nine months ended September 30, 2016 . The modifications primarily related to extending the amortization periods of the loans. Default is determined at 90 or more days past due. The Company did not grant principal reductions on any restructured loans. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price,” in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2017 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 192,427 $ 192,427 $ — $ — $ 192,427 Available for sale securities 323,856 — 323,856 — 323,856 Loans held for investment, net of allowance 2,177,818 — — 2,184,269 2,184,269 FHLB stock 12,790 N/A N/A N/A N/A Accrued interest receivable 7,993 1 2,081 5,911 7,993 Financial liabilities Deposits $ 2,286,615 $ — $ 2,284,709 $ — $ 2,284,709 Accrued interest payable 521 — 521 — 521 Borrowed funds 207,569 — 206,850 — 206,850 Subordinated debentures 9,277 — 9,277 — 9,277 As of December 31, 2016 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 142,098 $ 142,098 $ — $ — $ 142,098 Available for sale securities 316,455 — 316,455 — 316,455 Loans held for investment, net of allowance 1,873,724 — — 1,872,056 1,872,056 FHLB stock 13,175 N/A N/A N/A N/A Accrued interest receivable 9,007 3 3,616 5,388 9,007 Financial liabilities Deposits $ 1,870,183 $ — $ 1,868,429 $ — $ 1,868,429 Accrued interest payable 285 — 285 — 285 Borrowed funds 285,569 — 284,989 — 284,989 Subordinated debentures 9,196 — 9,196 — 9,196 The fair value estimates presented above are based on pertinent information available to management as of the dates indicated. The methods used to determine fair value are described in the Company's audited financial statements which are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The following tables present fair values for assets measured at fair value on a recurring basis: As of September 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 8,780 $ — $ 8,780 Municipal securities — 238,372 — 238,372 Agency mortgage-backed pass-through securities — 30,132 — 30,132 Corporate bonds and other — 46,572 — 46,572 Total $ — $ 323,856 $ — $ 323,856 As of December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,149 $ — $ 6,149 Municipal securities — 237,802 — 237,802 Agency mortgage-backed pass-through securities — 27,324 — 27,324 Corporate bonds and other — 45,180 — 45,180 Total $ — $ 316,455 $ — $ 316,455 There were no liabilities measured at fair value on a recurring basis as of September 30, 2017 or December 31, 2016 . There were no transfers between levels during the three and nine months ended September 30, 2017 or 2016 . Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of September 30, 2017 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 4,622 Commercial real estate (including multi-family residential) — — 8,663 Consumer and other — — 28 Other real estate owned — — 453 $ — $ — $ 13,766 As of December 31, 2016 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 1,785 Commercial real estate (including multi-family residential) — — 468 Other real estate owned — — 1,503 $ — $ — $ 3,756 Impaired Loans with Specific Allocation of Allowance During the nine months ended September 30, 2017 and the year ended December 31, 2016, certain impaired loans were reevaluated and reported at fair value through a specific allocation of the allowance for loan losses. At September 30, 2017 , the total reported fair value of impaired loans of $13.3 million based on collateral valuations utilizing Level 3 valuation inputs had a carrying value of $17.1 million that was reduced by specific allowance allocations totaling $3.8 million . At December 31, 2016, the total reported fair value of impaired loans of $2.3 million based on collateral valuations utilizing Level 3 valuation inputs had a carrying value of $3.9 million that was reduced by specific allowance allocations totaling $1.7 million . Other Real Estate Owned At September 30, 2017 , the balance of other real estate owned included $453 thousand of foreclosed commercial real estate properties recorded as a result of obtaining physical possession of the property. At September 30, 2017 , there was no formal foreclosure in process on this other real estate owned. The Company had $1.5 million of other real estate owned at December 31, 2016 . |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2017 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITS Time deposits that meet or exceed the Federal Deposit Insurance Corporation Insurance limit of $250 thousand at September 30, 2017 and December 31, 2016 were $214.9 million and $196.5 million , respectively. Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 483,649 After one but within two years 161,360 After two but within three years 38,039 After three but within four years 28,941 After four but within five years 44,895 Total $ 756,884 The Company has $230.1 million and $65.9 million of brokered deposits as of September 30, 2017 and December 31, 2016, respectively; and there are no major concentrations of deposits with any one depositor at September 30, 2017 and December 31, 2016. Included in these amounts are reciprocal deposits of $163.4 million and $64.8 million , at September 30, 2017 and December 31, 2016, respectively. |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At September 30, 2017 , the Company had a total borrowing capacity of $886.6 million , of which $646.0 million was available and $240.6 million was outstanding. FHLB advances of $207.0 million were outstanding at September 30, 2017 , at a weighted average interest rate of 1.32% . Letters of credit were $33.6 million at September 30, 2017 , of which $25.0 million expired in October 2017 and was renewed until October 2018, $3.1 million will expire in February 2018 and $5.5 million will expire in August 2018. In 2015, the Company borrowed an additional $ 18.0 million under its credit agreement with another financial institution, which was in addition to the $10.1 million of indebtedness incurred under the same credit agreement in 2014. The credit agreement matures in December 2021. The Company used the funds borrowed in 2015 to repay debt that F&M Bancshares owed and used the funds borrowed in 2014 to pay off a previous borrowing with another financial institution that had been entered into during 2013 in conjunction with the acquisition of Independence Bank. In October 2015, the Company paid down $ 27.5 million of the credit agreement with a portion of the proceeds from the initial public offering of Allegiance common stock. The credit agreement includes certain restrictive covenants. At September 30, 2017, the Company was in compliance with all such debt covenants, except that return on assets at the Bank was 0.47% (below the required minimum), primarily due to the unusually large provision for loan losses experienced during the quarter. Such non-compliance has been waived by the lender with respect to the quarter ended September 30, 2017. The interest rate on the outstanding debt under the revolving credit agreement is the Prime rate minus 25 basis points, or 4.00% , at September 30, 2017 , and is paid quarterly. Scheduled principal maturities are as follows (dollars in thousands): Remaining 2017 $ — 2018 — 2019 — 2020 — 2021 and thereafter 569 Total $ 569 |
SUBORDINATED DEBENTURES
SUBORDINATED DEBENTURES | 9 Months Ended |
Sep. 30, 2017 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBENTURES | 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. Each of these trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. The Company assumed the junior subordinated debentures with an aggregate original principal amount of $11.3 million and a carrying fair value at September 30, 2017 of $9.3 million . At acquisition, the Company recorded a discount of $2.5 million on the debentures. The difference between the carrying value and contractual balance will be recognized as a yield adjustment over the remaining term for the debentures. At September 30, 2017 , the Company had $11.3 million outstanding in junior subordinated debentures issued to the Company’s unconsolidated subsidiary trusts. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2017 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2017 was 1.3233% . (2) All debentures are currently callable. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. For the three and nine months ended September 30, 2017 , income tax expense was $887 thousand and $4.1 million , respectively, compared with $2.1 million and $7.5 million , respectively, for the three and nine months ended September 30, 2016 . The effective income tax rate for the three and nine months ended September 30, 2017 was 22.9% and 22.3% , respectively, compared to 27.8% and 30.6% , respectively, for the three and nine months ended September 30, 2016 . The decrease in income tax expense and the effective tax rate year over year was primarily attributable to the excess tax benefit from the exercise of stock options by employees, which was recognized in income tax expense as a result of the adoption of ASU 2016-09. Additionally, the decrease in income tax expense and the effective tax rate was due to the increase in tax free income from the purchase of additional municipal securities from the prior year. During the nine months ended September 30, 2017, the impact on the tax rate due to the excess tax benefit on stock options exercised and the increased tax free income from the purchase of municipal securities was 5.3% and 9.0% , respectively. Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any uncertain tax positions and does not have any interest and penalties recorded in the income statement for the three and nine months ended September 30, 2017 and 2016. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2013. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION During 2015, the Company’s Board of Directors and shareholders approved the 2015 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. The Plan was amended in 2017 as the shareholders authorized a maximum aggregate number of shares of stock to be issued of 1,900,000 , any or all 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 $497 thousand and $1.3 million for the three and nine months ended September 30, 2017 , respectively, and $370 thousand and $1.1 million for the three and nine months ended September 30, 2016 , respectively. Stock Options Options to purchase a total of 1,290,431 shares of Company stock have been granted as of September 30, 2017 . Under the Plan, options are exercisable up to 10 years from the date of the grant and are fully vested 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 option-pricing model. A summary of the activity in the stock option plan during the nine months ended September 30, 2017 is set forth below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2017 935 $ 18.21 6.23 $ 16,773 Options granted 50 36.22 Options exercised (182 ) 17.44 Options forfeited (3 ) 20.53 Options outstanding, September 30, 2017 800 $ 19.56 5.88 $ 13,885 Options vested and exercisable, September 30, 2017 508 $ 17.01 4.70 $ 10,093 Restricted Stock Awards During the nine months ended 2017 , the Company issued 28,106 shares of restricted stock. The forfeiture restrictions on restricted stock shares will lapse over a period of 4 years, and the shares are considered outstanding at the date of issuance. The Company accounts for restricted stock grants by recording the fair value of the grant on the award date as compensation expense over the vesting period. A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2017 24 $ 18.31 Share awards granted 28 36.17 Share awards vested (10 ) 18.19 Unvested share awards forfeited — — Nonvested share awards outstanding, September 30, 2017 42 $ 30.24 |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States, are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve to varying degrees elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2017 December 31, 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to extend credit $ 380,565 $ 257,859 $ 353,822 $ 232,551 Standby letters of credit 15,316 1,675 9,423 124 Total $ 395,881 $ 259,534 $ 363,245 $ 232,675 Commitments to make loans are generally made for an approval period of 120 days or fewer. As of September 30, 2017 , the funded fixed rate loan commitments had interest rates ranging from 1.60% to 7.50% with a weighted average maturity and rate of 2.76 years and 5.03% , respectively. Litigation From time to time, the Company is subject to claims and litigation arising in the ordinary course of business. In the opinion of management, the Company is not party to any legal proceedings the resolution of which it believes would have a material adverse effect on the Company’s business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which such claim or litigation is resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect the Company’s reputation, even if resolved in its favor. The Company intends to defend itself vigorously against any future claims or litigation. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2017 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can cause regulators to initiate actions that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The final rules implementing Basel Committee on Banking Supervision's capital guideline for U.S. Banks (Basel III Rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. Management believes as of September 30, 2017 and December 31, 2016 the Company and the Bank met all capital adequacy requirements to which they were then subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If 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. The following is a summary of the Company’s and the Bank’s actual and required capital ratios at September 30, 2017 and December 31, 2016 : Actual Minimum Required For Capital Adequacy Purposes Minimum Required Plus Capital To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2017 Total Capital (to risk weighted assets) $ 292,639 12.04 % $ 194,407 8.00 % $ 224,783 9.250 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 259,640 10.68 % 109,354 4.50 % 139,730 5.750 % N/A N/A Tier I Capital (to risk weighted assets) 268,917 11.07 % 145,805 6.00 % 176,181 7.250 % N/A N/A Tier I Capital (to average tangible assets) 268,917 9.90 % 108,673 4.00 % 108,673 4.000 % N/A N/A As of December 31, 2016 Total Capital (to risk weighted assets) $ 268,155 12.57 % $ 170,690 8.00 % $ 184,025 8.625 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 241,048 11.30 % 96,013 4.50 % 109,348 5.125 % N/A N/A Tier I Capital (to risk weighted assets) 250,244 11.73 % 128,018 6.00 % 141,353 6.625 % N/A N/A Tier I Capital (to average tangible assets) 250,244 10.35 % 96,708 4.00 % 96,708 4.000 % N/A N/A ALLEGIANCE BANK As of September 30, 2017 Total Capital (to risk weighted assets) $ 289,178 11.90 % $ 194,316 8.00 % $ 224,678 9.250 % $ 242,895 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 265,456 10.93 % 109,303 4.50 % 139,664 5.750 % 157,882 6.50 % Tier I Capital (to risk weighted assets) 265,456 10.93 % 145,737 6.00 % 176,099 7.250 % 194,316 8.00 % Tier I Capital (to average tangible assets) 265,456 9.77 % 108,630 4.00 % 108,630 4.000 % 135,788 5.00 % As of December 31, 2016 Total Capital (to risk weighted assets) $ 247,606 11.61 % $ 170,630 8.00 % $ 183,960 8.625 % $ 213,288 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 229,694 10.77 % 95,979 4.50 % 109,310 5.125 % 138,637 6.50 % Tier I Capital (to risk weighted assets) 229,694 10.77 % 127,973 6.00 % 141,303 6.625 % 170,630 8.00 % Tier I Capital (to average tangible assets) 229,694 9.50 % 96,679 4.00 % 96,679 4.000 % 120,849 5.00 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Diluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to common shareholders $ 2,986 $ 5,471 $ 14,428 $ 17,080 Basic: Weighted average common shares outstanding 13,165 $ 0.23 12,882 $ 0.42 13,104 $ 1.10 12,860 $ 1.33 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 319 226 341 178 Total 13,483 $ 0.22 13,108 $ 0.42 13,445 $ 1.07 13,038 $ 1.31 Stock options for 33 thousand shares were not considered in computing diluted earnings per common share as of September 30, 2017 because they were antidilutive. There were no antidilutive shares as of September 30, 2016. |
NATURE OF OPERATIONS AND SUMM22
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions with Allegiance have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . |
Significant Accounting and Reporting Policies | Significant Accounting and Reporting Policies The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . New Accounting Standards Newly Issued But Not Yet Effective Accounting Standards ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is effective for the Company beginning on January 1, 2018, with retrospective application to each prior reporting period presented. The Company expects to adopt ASU 2014-09 in the first quarter 2018 using the modified retrospective approach, which includes presenting the cumulative effect of initial application along with supplementary disclosures. The Company is evaluating the full effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures; however, adoption of the ASU is not expected to have a significant impact. The Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of ASU 2014-09. ASU 2016-02 “Leases (Topic 842)." ASU 2016-02 will, among other things, require 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 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s financial statements. The Company leases certain properties and equipment under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for the Company on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. The Company has formed a team that is assessing its data and system needs and is evaluating the impact of adoption. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but has not yet determined the magnitude of any such one-time adjustment or the overall impact on the Company’s financial statements. ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on its financial condition or results of operation. 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 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2017-08 on its financial statements. |
GOODWILL AND CORE DEPOSIT INT23
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of January 1, 2016 $ 39,389 $ 5,230 Sale of branch assets — (390 ) Amortization — (785 ) Balance as of December 31, 2016 39,389 4,055 Amortization — (586 ) Balance as of September 30, 2017 $ 39,389 $ 3,469 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2017 is as follows (dollars in thousands): Remaining 2017 $ 195 2018 781 2019 781 2020 744 2021 484 Thereafter 484 Total $ 3,469 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 8,496 $ 302 $ (18 ) $ 8,780 Municipal securities 237,342 2,999 (1,969 ) 238,372 Agency mortgage-backed pass-through securities 30,183 222 (273 ) 30,132 Corporate bonds and other 46,416 197 (41 ) 46,572 Total $ 322,437 $ 3,720 $ (2,301 ) $ 323,856 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,883 $ 266 $ — $ 6,149 Municipal securities 242,501 956 (5,655 ) 237,802 Agency mortgage-backed pass-through securities 27,496 265 (437 ) 27,324 Corporate bonds and other 45,271 77 (168 ) 45,180 Total $ 321,151 $ 1,564 $ (6,260 ) $ 316,455 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment securities at September 30, 2017 , 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 Cost Fair Value (Dollars in thousands) Due in one year or less $ 10,879 $ 10,904 Due after one year through five years 65,441 65,873 Due after five years through ten years 100,154 100,909 Due after ten years 115,780 116,038 Subtotal 292,254 293,724 Agency mortgage-backed pass through securities 30,183 30,132 Total $ 322,437 $ 323,856 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2017 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 1,153 $ (18 ) $ — $ — $ 1,153 $ (18 ) Municipal securities 51,739 (554 ) 56,306 (1,415 ) 108,045 (1,969 ) Agency mortgage-backed pass-through securities 13,173 (168 ) 3,581 (105 ) 16,754 (273 ) Corporate bonds and other 9,222 (41 ) — — 9,222 (41 ) Total $ 75,287 $ (781 ) $ 59,887 $ (1,520 ) $ 135,174 $ (2,301 ) December 31, 2016 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 178,876 (5,655 ) — — 178,876 (5,655 ) Agency mortgage-backed pass-through securities 12,520 (347 ) 2,803 (90 ) 15,323 (437 ) Corporate bonds and other 24,629 (168 ) — — 24,629 (168 ) Total $ 216,025 $ (6,170 ) $ 2,803 $ (90 ) $ 218,828 $ (6,260 ) |
LOANS AND ALLOWANCE FOR LOAN 25
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Loans and Allowance for Loan Losses [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, December 31, (Dollars in thousands) Commercial and industrial $ 446,029 $ 416,752 Mortgage warehouse 83,577 67,038 Real estate: Commercial real estate (including multi-family residential) 1,045,220 891,989 Commercial real estate construction and land development 225,574 159,247 1-4 family residential (including home equity) 283,399 246,987 Residential construction 106,299 98,657 Consumer and other 11,442 10,965 Total loans 2,201,540 1,891,635 Allowance for loan losses (23,722 ) (17,911 ) Loans, net $ 2,177,818 $ 1,873,724 |
Past Due Financing Receivables | An aging analysis of the recorded investment in past due loans, segregated by class of loans, is as follows: September 30, 2017 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 5,224 $ — $ 5,224 $ 5,031 $ 435,774 $ 446,029 Mortgage warehouse — — — — 83,577 83,577 Real estate: Commercial real estate (including multi-family residential) 2,736 — 2,736 8,097 1,034,387 1,045,220 Commercial real estate construction and land development 1,266 — 1,266 — 224,308 225,574 1-4 family residential (including home equity) 1,012 — 1,012 735 281,652 283,399 Residential construction 1,779 — 1,779 — 104,520 106,299 Consumer and other 32 — 32 50 11,360 11,442 Total loans $ 12,049 $ — $ 12,049 $ 13,913 $ 2,175,578 $ 2,201,540 December 31, 2016 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,028 $ 911 $ 1,939 $ 3,896 $ 410,917 $ 416,752 Mortgage warehouse — — — — 67,038 67,038 Real estate: Commercial real estate (including multi-family residential) 1,661 — 1,661 11,663 878,665 891,989 Commercial real estate construction and land development 263 — 263 — 158,984 159,247 1-4 family residential (including home equity) 280 — 280 217 246,490 246,987 Residential construction — — — — 98,657 98,657 Consumer and other 125 — 125 12 10,828 10,965 Total loans $ 3,357 $ 911 $ 4,268 $ 15,788 $ 1,871,579 $ 1,891,635 |
Impaired Financing Receivables | Impaired loans by class of loans are set forth in the following tables. September 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,461 $ 6,787 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 7,195 7,195 — Commercial real estate construction and land development 209 209 — 1-4 family residential (including home equity) 1,327 1,327 — Residential construction — — — Consumer and other 2 2 — Total 14,194 15,520 — With an allowance recorded: Commercial and industrial 7,569 7,569 2,947 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 9,304 9,525 862 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 48 48 20 Total 16,921 17,142 3,829 Total: Commercial and industrial 13,030 14,356 2,947 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,499 16,720 862 Commercial real estate construction and land development 209 209 — 1-4 family residential (including home equity) 1,327 1,327 — Residential construction — — — Consumer and other 50 50 20 $ 31,115 $ 32,662 $ 3,829 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,300 $ 5,414 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 11,748 11,833 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 5 5 — Total 17,270 17,469 — With an allowance recorded: Commercial and industrial 3,108 3,328 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 573 573 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 6 6 6 Total 3,687 3,907 1,654 Total: Commercial and industrial 8,408 8,742 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 12,321 12,406 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 11 11 6 $ 20,957 $ 21,376 $ 1,654 The following table presents average impaired loans and interest recognized on impaired loans for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 13,848 $ 98 $ 7,461 $ 211 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,568 147 12,486 159 Commercial real estate construction and land development 209 3 — — 1-4 family residential (including home equity) 1,342 3 524 16 Residential construction — — — — Consumer and other 51 — 50 1 Total $ 32,018 $ 251 $ 20,521 $ 387 Nine Months Ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 14,343 $ 332 $ 8,963 $ 374 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,737 327 13,373 381 Commercial real estate construction and land development 314 7 — — 1-4 family residential (including home equity) 1,352 4 814 24 Residential construction — — — — Consumer and other 58 1 61 3 Total $ 32,804 $ 671 $ 23,211 $ 782 |
Financing Receivable Credit Quality Indicators | Based on the most recent analysis performed, the risk category of loans by class of loan at September 30, 2017 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 413,195 $ 12,270 $ 1,698 $ 18,866 $ — $ 446,029 Mortgage warehouse 83,577 — — — — 83,577 Real estate: Commercial real estate (including multi-family residential) 985,254 18,220 3,672 38,074 — 1,045,220 Commercial real estate construction and land development 213,312 4,790 2,426 5,046 — 225,574 1-4 family residential (including home equity) 278,224 838 1,980 2,357 — 283,399 Residential construction 104,051 2,248 — — — 106,299 Consumer and other 11,250 139 3 50 — 11,442 Total loans $ 2,088,863 $ 38,505 $ 9,779 $ 64,393 $ — $ 2,201,540 The following table presents the risk category of loans by class of loan at December 31, 2016 : Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 384,979 $ 11,784 $ 3,344 $ 16,645 $ — $ 416,752 Mortgage warehouse 67,038 — — — — 67,038 Real estate: Commercial real estate (including multi-family residential) 834,781 16,009 6,804 34,395 — 891,989 Commercial real estate construction and land development 149,010 8,124 — 2,113 — 159,247 1-4 family residential (including home equity) 242,208 512 2,069 2,198 — 246,987 Residential construction 97,808 — 415 434 — 98,657 Consumer and other 10,520 364 4 77 — 10,965 Total loans $ 1,786,344 $ 36,793 $ 12,636 $ 55,862 $ — $ 1,891,635 |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for loan losses by portfolio type for the three and nine months ended September 30, 2017 and 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Three Months Ended Balance June 30, 2017 $ 6,282 $ — $ 9,328 $ 1,894 $ 1,988 $ 835 $ 683 $ 21,010 Provision for loan losses 3,925 — 2,580 443 272 148 (460 ) 6,908 Charge-offs (4,059 ) — — — — — (148 ) (4,207 ) Recoveries 11 — — — — — — 11 Net charge-offs (4,048 ) — — — — — (148 ) (4,196 ) Balance September 30, 2017 $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 Nine Months Ended Balance January 1, 2017 $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 Provision for loan losses 6,423 — 2,958 1,110 374 235 158 11,258 Charge-offs (5,794 ) — — — — — (148 ) (5,942 ) Recoveries 471 — — 10 10 — 4 495 Net charge-offs (5,323 ) — — 10 10 — (144 ) (5,447 ) Balance September 30, 2017 $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 Allowance for loan losses: Three Months Ended Balance June 30, 2016 $ 4,105 $ — $ 6,846 $ 1,368 $ 1,642 $ 887 $ 69 $ 14,917 Provision for loan losses 781 — 1,563 (76 ) 101 (159 ) 4 2,214 Charge-offs (8 ) — — — — — (4 ) (12 ) Recoveries 22 — 43 — — — 1 66 Net charge-offs 14 — 43 — — — (3 ) 54 Balance September 30, 2016 $ 4,900 $ — $ 8,452 $ 1,292 $ 1,743 $ 728 $ 70 $ 17,185 Nine Months Ended Balance January 1, 2016 $ 3,644 $ — $ 5,914 $ 1,221 $ 1,432 $ 820 $ 67 $ 13,098 Provision for loan losses 1,640 — 2,624 71 301 (92 ) 25 4,569 Charge-offs (451 ) — (129 ) — — — (26 ) (606 ) Recoveries 67 — 43 — 10 — 4 124 Net charge-offs (384 ) — (86 ) — 10 — (22 ) (482 ) Balance September 30, 2016 $ 4,900 $ — $ 8,452 $ 1,292 $ 1,743 $ 728 $ 70 $ 17,185 The following table presents the balance of the allowance for loan losses by portfolio type based on the impairment method as of September 30, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: September 30, 2017 Individually evaluated for impairment $ 2,947 $ — $ 862 $ — $ — $ — $ 20 $ 3,829 Collectively evaluated for impairment 3,212 — 11,046 2,337 2,260 983 55 19,893 Total allowance for loan losses $ 6,159 $ — $ 11,908 $ 2,337 $ 2,260 $ 983 $ 75 $ 23,722 December 31, 2016 Individually evaluated for impairment $ 1,543 $ — $ 105 $ — $ — $ — $ 6 $ 1,654 Collectively evaluated for impairment 3,516 — 8,845 1,217 1,876 748 55 16,257 Total allowance for loan losses $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of September 30, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: September 30, 2017 Individually evaluated for impairment $ 13,030 $ — $ 16,499 $ 209 $ 1,327 $ — $ 50 $ 31,115 Collectively evaluated for impairment 432,999 83,577 1,028,721 225,365 282,072 106,299 11,392 2,170,425 Total loans evaluated for impairment $ 446,029 $ 83,577 $ 1,045,220 $ 225,574 $ 283,399 $ 106,299 $ 11,442 $ 2,201,540 December 31, 2016 Individually evaluated for impairment $ 8,408 $ — $ 12,321 $ — $ 217 $ — $ 11 $ 20,957 Collectively evaluated for impairment 408,344 67,038 879,668 159,247 246,770 98,657 10,954 1,870,678 Total loans evaluated for impairment $ 416,752 $ 67,038 $ 891,989 $ 159,247 $ 246,987 $ 98,657 $ 10,965 $ 1,891,635 |
Troubled Debt Restructurings on Financing Receivables | The following tables present information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 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 4 $ 1,520 $ 1,520 4 $ 872 $ 872 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 502 502 1 632 632 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — — — — — — Residential construction — — — — — — Consumer and other — — — — — — Total 5 $ 2,022 $ 2,022 5 $ 1,504 $ 1,504 Nine Months Ended September 30, 2017 2016 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 7 $ 3,441 $ 3,441 16 $ 3,803 $ 3,803 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 3 8,783 8,783 7 6,882 6,882 Commercial real estate construction and land development 1 210 210 — — — 1-4 family residential (including home equity) 1 86 86 — — — Residential construction — — — — — — Consumer and other — — — 1 7 7 Total 12 $ 12,520 $ 12,520 24 $ 10,692 $ 10,692 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2017 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 192,427 $ 192,427 $ — $ — $ 192,427 Available for sale securities 323,856 — 323,856 — 323,856 Loans held for investment, net of allowance 2,177,818 — — 2,184,269 2,184,269 FHLB stock 12,790 N/A N/A N/A N/A Accrued interest receivable 7,993 1 2,081 5,911 7,993 Financial liabilities Deposits $ 2,286,615 $ — $ 2,284,709 $ — $ 2,284,709 Accrued interest payable 521 — 521 — 521 Borrowed funds 207,569 — 206,850 — 206,850 Subordinated debentures 9,277 — 9,277 — 9,277 As of December 31, 2016 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 142,098 $ 142,098 $ — $ — $ 142,098 Available for sale securities 316,455 — 316,455 — 316,455 Loans held for investment, net of allowance 1,873,724 — — 1,872,056 1,872,056 FHLB stock 13,175 N/A N/A N/A N/A Accrued interest receivable 9,007 3 3,616 5,388 9,007 Financial liabilities Deposits $ 1,870,183 $ — $ 1,868,429 $ — $ 1,868,429 Accrued interest payable 285 — 285 — 285 Borrowed funds 285,569 — 284,989 — 284,989 Subordinated debentures 9,196 — 9,196 — 9,196 |
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: As of September 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 8,780 $ — $ 8,780 Municipal securities — 238,372 — 238,372 Agency mortgage-backed pass-through securities — 30,132 — 30,132 Corporate bonds and other — 46,572 — 46,572 Total $ — $ 323,856 $ — $ 323,856 As of December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,149 $ — $ 6,149 Municipal securities — 237,802 — 237,802 Agency mortgage-backed pass-through securities — 27,324 — 27,324 Corporate bonds and other — 45,180 — 45,180 Total $ — $ 316,455 $ — $ 316,455 |
Fair Value Measurements, Nonrecurring | Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of September 30, 2017 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 4,622 Commercial real estate (including multi-family residential) — — 8,663 Consumer and other — — 28 Other real estate owned — — 453 $ — $ — $ 13,766 As of December 31, 2016 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 1,785 Commercial real estate (including multi-family residential) — — 468 Other real estate owned — — 1,503 $ — $ — $ 3,756 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 $ 483,649 After one but within two years 161,360 After two but within three years 38,039 After three but within four years 28,941 After four but within five years 44,895 Total $ 756,884 |
BORROWINGS AND BORROWING CAPA28
BORROWINGS AND BORROWING CAPACITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Scheduled principal maturities are as follows (dollars in thousands): Remaining 2017 $ — 2018 — 2019 — 2020 — 2021 and thereafter 569 Total $ 569 |
SUBORDINATED DEBENTURES (Tables
SUBORDINATED DEBENTURES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2017 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2017 was 1.3233% . (2) All debentures are currently callable. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the activity in the stock option plan during the nine months ended September 30, 2017 is set forth below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2017 935 $ 18.21 6.23 $ 16,773 Options granted 50 36.22 Options exercised (182 ) 17.44 Options forfeited (3 ) 20.53 Options outstanding, September 30, 2017 800 $ 19.56 5.88 $ 13,885 Options vested and exercisable, September 30, 2017 508 $ 17.01 4.70 $ 10,093 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2017 24 $ 18.31 Share awards granted 28 36.17 Share awards vested (10 ) 18.19 Unvested share awards forfeited — — Nonvested share awards outstanding, September 30, 2017 42 $ 30.24 |
OFF-BALANCE SHEET ARRANGEMENT31
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2017 December 31, 2016 Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to extend credit $ 380,565 $ 257,859 $ 353,822 $ 232,551 Standby letters of credit 15,316 1,675 9,423 124 Total $ 395,881 $ 259,534 $ 363,245 $ 232,675 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 September 30, 2017 and December 31, 2016 : Actual Minimum Required For Capital Adequacy Purposes Minimum Required Plus Capital To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2017 Total Capital (to risk weighted assets) $ 292,639 12.04 % $ 194,407 8.00 % $ 224,783 9.250 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 259,640 10.68 % 109,354 4.50 % 139,730 5.750 % N/A N/A Tier I Capital (to risk weighted assets) 268,917 11.07 % 145,805 6.00 % 176,181 7.250 % N/A N/A Tier I Capital (to average tangible assets) 268,917 9.90 % 108,673 4.00 % 108,673 4.000 % N/A N/A As of December 31, 2016 Total Capital (to risk weighted assets) $ 268,155 12.57 % $ 170,690 8.00 % $ 184,025 8.625 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 241,048 11.30 % 96,013 4.50 % 109,348 5.125 % N/A N/A Tier I Capital (to risk weighted assets) 250,244 11.73 % 128,018 6.00 % 141,353 6.625 % N/A N/A Tier I Capital (to average tangible assets) 250,244 10.35 % 96,708 4.00 % 96,708 4.000 % N/A N/A ALLEGIANCE BANK As of September 30, 2017 Total Capital (to risk weighted assets) $ 289,178 11.90 % $ 194,316 8.00 % $ 224,678 9.250 % $ 242,895 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 265,456 10.93 % 109,303 4.50 % 139,664 5.750 % 157,882 6.50 % Tier I Capital (to risk weighted assets) 265,456 10.93 % 145,737 6.00 % 176,099 7.250 % 194,316 8.00 % Tier I Capital (to average tangible assets) 265,456 9.77 % 108,630 4.00 % 108,630 4.000 % 135,788 5.00 % As of December 31, 2016 Total Capital (to risk weighted assets) $ 247,606 11.61 % $ 170,630 8.00 % $ 183,960 8.625 % $ 213,288 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 229,694 10.77 % 95,979 4.50 % 109,310 5.125 % 138,637 6.50 % Tier I Capital (to risk weighted assets) 229,694 10.77 % 127,973 6.00 % 141,303 6.625 % 170,630 8.00 % Tier I Capital (to average tangible assets) 229,694 9.50 % 96,679 4.00 % 96,679 4.000 % 120,849 5.00 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to common shareholders $ 2,986 $ 5,471 $ 14,428 $ 17,080 Basic: Weighted average common shares outstanding 13,165 $ 0.23 12,882 $ 0.42 13,104 $ 1.10 12,860 $ 1.33 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 319 226 341 178 Total 13,483 $ 0.22 13,108 $ 0.42 13,445 $ 1.07 13,038 $ 1.31 |
NATURE OF OPERATIONS AND SUMM34
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) | Sep. 30, 2017office |
Accounting Policies [Abstract] | |
Number of offices in which entity operates | 16 |
Number of loan production offices in which entity operates | 1 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($)branch | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Jan. 01, 2015branch | |
Business Acquisition [Line Items] | ||||||
Gain on sale of branch assets | $ | $ 0 | $ 0 | $ 0 | $ 2,050 | ||
Acquisition of F&M | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from sale of loans receivable | $ | $ 18,200 | |||||
Proceeds for sale of deposits | $ | 26,600 | |||||
Gain on sale of branch assets | $ | $ 2,100 | |||||
Disposed of by Sale | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches agreed to be sold | branch | 2 | |||||
Enterprise | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches | branch | 9 | |||||
Enterprise | Houston, Texas | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches | branch | 7 | |||||
Enterprise | Central Texas | ||||||
Business Acquisition [Line Items] | ||||||
Number of branches | branch | 2 |
GOODWILL AND CORE DEPOSIT INT36
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Goodwill | |||||
Balance, beginning | $ 39,389 | $ 39,389 | $ 39,389 | ||
Sale of branch assets | 0 | ||||
Balance, ending | $ 39,389 | 39,389 | 39,389 | ||
Core Deposit Intangibles | |||||
Balance, beginning | 4,055 | ||||
Amortization | (195) | $ (196) | (586) | (590) | |
Balance, ending | 3,469 | 3,469 | 4,055 | ||
Core Deposit Intangibles | |||||
Core Deposit Intangibles | |||||
Balance, beginning | 4,055 | $ 5,230 | 5,230 | ||
Sale of branch assets | (390) | ||||
Amortization | (586) | (785) | |||
Balance, ending | $ 3,469 | $ 3,469 | $ 4,055 |
GOODWILL AND CORE DEPOSIT INT37
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative, Acquisitions (Details) | Sep. 30, 2017USD ($) |
Acquisition of F&M | |
Business Acquisition [Line Items] | |
Goodwill impairment | $ 0 |
GOODWILL AND CORE DEPOSIT INT38
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative, Dispositions (Details) | Mar. 31, 2016branch |
Disposed of by Sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of branches agreed to be sold | 2 |
GOODWILL AND CORE DEPOSIT INT39
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2,017 | $ 195 | |
2,018 | 781 | |
2,019 | 781 | |
2,020 | 744 | |
2,021 | 484 | |
Thereafter | 484 | |
Total | $ 3,469 | $ 4,055 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 322,437 | $ 321,151 |
Gross Unrealized Gains | 3,720 | 1,564 |
Gross Unrealized Losses | (2,301) | (6,260) |
Fair Value | 323,856 | 316,455 |
U.S. Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 8,496 | 5,883 |
Gross Unrealized Gains | 302 | 266 |
Gross Unrealized Losses | (18) | 0 |
Fair Value | 8,780 | 6,149 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 237,342 | 242,501 |
Gross Unrealized Gains | 2,999 | 956 |
Gross Unrealized Losses | (1,969) | (5,655) |
Fair Value | 238,372 | 237,802 |
Agency mortgage-backed pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 30,183 | 27,496 |
Gross Unrealized Gains | 222 | 265 |
Gross Unrealized Losses | (273) | (437) |
Fair Value | 30,132 | 27,324 |
Corporate bonds and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 46,416 | 45,271 |
Gross Unrealized Gains | 197 | 77 |
Gross Unrealized Losses | (41) | (168) |
Fair Value | $ 46,572 | $ 45,180 |
SECURITIES - Amortized Cost a41
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 10,879 | |
Due after one year through five years | 65,441 | |
Due after five years through ten years | 100,154 | |
Due after ten years | 115,780 | |
Subtotal | 292,254 | |
Agency mortgage-backed pass through securities | 30,183 | |
Total | 322,437 | |
Fair Value | ||
Due in one year or less | 10,904 | |
Due after one year through five years | 65,873 | |
Due after five years through ten years | 100,909 | |
Due after ten years | 116,038 | |
Subtotal | 293,724 | |
Agency mortgage-backed pass through securities | 30,132 | |
Total | $ 323,856 | $ 316,455 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | $ 75,287 | $ 216,025 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (781) | (6,170) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 59,887 | 2,803 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (1,520) | (90) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 135,174 | 218,828 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (2,301) | (6,260) |
U.S. Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 1,153 | 0 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (18) | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 1,153 | 0 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (18) | 0 |
Municipal securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 51,739 | 178,876 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (554) | (5,655) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 56,306 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (1,415) | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 108,045 | 178,876 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (1,969) | (5,655) |
Agency mortgage-backed pass-through securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 13,173 | 12,520 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (168) | (347) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 3,581 | 2,803 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (105) | (90) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 16,754 | 15,323 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (273) | (437) |
Corporate bonds and other | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 9,222 | 24,629 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (41) | (168) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 9,222 | 24,629 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (41) | $ (168) |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | |||||
Proceeds from sales of available for sale securities | $ 0 | $ 9,000,000 | $ 0 | ||
Security owned and pledged as collateral | $ 5,000,000 | 5,000,000 | $ 4,900,000 | ||
Corporate bonds and other | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Proceeds from sales of available for sale securities | $ 9,000,000 | $ 9,000,000 |
LOANS AND ALLOWANCE FOR LOAN 44
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | $ 2,201,540 | $ 1,891,635 | ||||
Allowance for loan losses | (23,722) | $ (21,010) | (17,911) | $ (17,185) | $ (14,917) | $ (13,098) |
Loans, net | 2,177,818 | 1,873,724 | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 446,029 | 416,752 | ||||
Allowance for loan losses | (6,159) | (6,282) | (5,059) | (4,900) | (4,105) | (3,644) |
Mortgage warehouse | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 83,577 | 67,038 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 1,045,220 | 891,989 | ||||
Real estate | Commercial real estate construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 225,574 | 159,247 | ||||
Real estate | 1-4 family residential (including home equity) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 283,399 | 246,987 | ||||
Real estate | Residential construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 106,299 | 98,657 | ||||
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for investment | 11,442 | 10,965 | ||||
Allowance for loan losses | $ (75) | $ (683) | $ (61) | $ (70) | $ (69) | $ (67) |
LOANS AND ALLOWANCE FOR LOAN 45
LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 12,049 | $ 4,268 |
Nonaccrual Loans | 13,913 | 15,788 |
Current Loans | 2,175,578 | 1,871,579 |
Total loans evaluated for impairment | 2,201,540 | 1,891,635 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 5,224 | 1,939 |
Nonaccrual Loans | 5,031 | 3,896 |
Current Loans | 435,774 | 410,917 |
Total loans evaluated for impairment | 446,029 | 416,752 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 83,577 | 67,038 |
Total loans evaluated for impairment | 83,577 | 67,038 |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,736 | 1,661 |
Nonaccrual Loans | 8,097 | 11,663 |
Current Loans | 1,034,387 | 878,665 |
Total loans evaluated for impairment | 1,045,220 | 891,989 |
Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,266 | 263 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 224,308 | 158,984 |
Total loans evaluated for impairment | 225,574 | 159,247 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,012 | 280 |
Nonaccrual Loans | 735 | 217 |
Current Loans | 281,652 | 246,490 |
Total loans evaluated for impairment | 283,399 | 246,987 |
Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,779 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 104,520 | 98,657 |
Total loans evaluated for impairment | 106,299 | 98,657 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 32 | 125 |
Nonaccrual Loans | 50 | 12 |
Current Loans | 11,360 | 10,828 |
Total loans evaluated for impairment | 11,442 | 10,965 |
Financing Receivables, 30 to 89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 12,049 | 3,357 |
Financing Receivables, 30 to 89 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 5,224 | 1,028 |
Financing Receivables, 30 to 89 Days Past Due | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, 30 to 89 Days Past Due | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,736 | 1,661 |
Financing Receivables, 30 to 89 Days Past Due | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,266 | 263 |
Financing Receivables, 30 to 89 Days Past Due | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,012 | 280 |
Financing Receivables, 30 to 89 Days Past Due | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,779 | 0 |
Financing Receivables, 30 to 89 Days Past Due | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 32 | 125 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 911 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 911 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 46
LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | $ 14,194 | $ 17,270 |
Unpaid principal balance with no related allowance recorded | 15,520 | 17,469 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 16,921 | 3,687 |
Impaired financing receivable, with related allowance, unpaid principal balance | 17,142 | 3,907 |
Related Allowance | 3,829 | 1,654 |
Total: | ||
Recorded Investment | 31,115 | 20,957 |
Unpaid Principal Balance | 32,662 | 21,376 |
Related Allowance | 3,829 | 1,654 |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 5,461 | 5,300 |
Unpaid principal balance with no related allowance recorded | 6,787 | 5,414 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 7,569 | 3,108 |
Impaired financing receivable, with related allowance, unpaid principal balance | 7,569 | 3,328 |
Related Allowance | 2,947 | 1,543 |
Total: | ||
Recorded Investment | 13,030 | 8,408 |
Unpaid Principal Balance | 14,356 | 8,742 |
Related Allowance | 2,947 | 1,543 |
Mortgage warehouse | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 0 | 0 |
Unpaid principal balance with no related allowance recorded | 0 | 0 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 7,195 | 11,748 |
Unpaid principal balance with no related allowance recorded | 7,195 | 11,833 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 9,304 | 573 |
Impaired financing receivable, with related allowance, unpaid principal balance | 9,525 | 573 |
Related Allowance | 862 | 105 |
Total: | ||
Recorded Investment | 16,499 | 12,321 |
Unpaid Principal Balance | 16,720 | 12,406 |
Related Allowance | 862 | 105 |
Real estate | Commercial real estate construction and land development | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 209 | 0 |
Unpaid principal balance with no related allowance recorded | 209 | 0 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total: | ||
Recorded Investment | 209 | 0 |
Unpaid Principal Balance | 209 | 0 |
Related Allowance | 0 | 0 |
Real estate | 1-4 family residential (including home equity) | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 1,327 | 217 |
Unpaid principal balance with no related allowance recorded | 1,327 | 217 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total: | ||
Recorded Investment | 1,327 | 217 |
Unpaid Principal Balance | 1,327 | 217 |
Related Allowance | 0 | 0 |
Real estate | Residential construction | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 0 | 0 |
Unpaid principal balance with no related allowance recorded | 0 | 0 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 0 | 0 |
Impaired financing receivable, with related allowance, unpaid principal balance | 0 | 0 |
Related Allowance | 0 | 0 |
Total: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Consumer and other | ||
With no related allowance recorded: | ||
Recorded investment with no related allowance recorded | 2 | 5 |
Unpaid principal balance with no related allowance recorded | 2 | 5 |
With an allowance recorded: | ||
Impaired financing receivable, with related allowance, recorded investment | 48 | 6 |
Impaired financing receivable, with related allowance, unpaid principal balance | 48 | 6 |
Related Allowance | 20 | 6 |
Total: | ||
Recorded Investment | 50 | 11 |
Unpaid Principal Balance | 50 | 11 |
Related Allowance | $ 20 | $ 6 |
LOANS AND ALLOWANCE FOR LOAN 47
LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Impaired Loans and Interest Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | $ 32,018 | $ 20,521 | $ 32,804 | $ 23,211 |
Interest Income Recognized | 251 | 387 | 671 | 782 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 13,848 | 7,461 | 14,343 | 8,963 |
Interest Income Recognized | 98 | 211 | 332 | 374 |
Mortgage warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 0 | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 16,568 | 12,486 | 16,737 | 13,373 |
Interest Income Recognized | 147 | 159 | 327 | 381 |
Real estate | Commercial real estate construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 209 | 0 | 314 | 0 |
Interest Income Recognized | 3 | 0 | 7 | 0 |
Real estate | 1-4 family residential (including home equity) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 1,342 | 524 | 1,352 | 814 |
Interest Income Recognized | 3 | 16 | 4 | 24 |
Real estate | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 0 | 0 | 0 | 0 |
Interest Income Recognized | 0 | 0 | 0 | 0 |
Consumer and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Recorded Investment | 51 | 50 | 58 | 61 |
Interest Income Recognized | $ 0 | $ 1 | $ 1 | $ 3 |
LOANS AND ALLOWANCE FOR LOAN 48
LOANS AND ALLOWANCE FOR LOAN LOSSES - Risk Category of Loans by Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 2,201,540 | $ 1,891,635 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 446,029 | 416,752 |
Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 83,577 | 67,038 |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,045,220 | 891,989 |
Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 225,574 | 159,247 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 283,399 | 246,987 |
Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 106,299 | 98,657 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 11,442 | 10,965 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,088,863 | 1,786,344 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 413,195 | 384,979 |
Pass | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 83,577 | 67,038 |
Pass | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 985,254 | 834,781 |
Pass | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 213,312 | 149,010 |
Pass | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 278,224 | 242,208 |
Pass | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 104,051 | 97,808 |
Pass | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 11,250 | 10,520 |
Watch | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 38,505 | 36,793 |
Watch | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 12,270 | 11,784 |
Watch | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Watch | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 18,220 | 16,009 |
Watch | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 4,790 | 8,124 |
Watch | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 838 | 512 |
Watch | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,248 | 0 |
Watch | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 139 | 364 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 9,779 | 12,636 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,698 | 3,344 |
Special Mention | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Special Mention | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 3,672 | 6,804 |
Special Mention | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,426 | 0 |
Special Mention | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 1,980 | 2,069 |
Special Mention | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 415 |
Special Mention | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 3 | 4 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 64,393 | 55,862 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 18,866 | 16,645 |
Substandard | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Substandard | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 38,074 | 34,395 |
Substandard | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 5,046 | 2,113 |
Substandard | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 2,357 | 2,198 |
Substandard | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 434 |
Substandard | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 50 | 77 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Mortgage warehouse | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Real estate | Commercial real estate (including multi-family residential) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Real estate | Commercial real estate construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Real estate | 1-4 family residential (including home equity) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Real estate | Residential construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | 0 | 0 |
Doubtful | Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR LOAN 49
LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | ||||||
Balance, beginning of period | $ 21,010 | $ 14,917 | $ 17,911 | $ 13,098 | ||
Provision for loan losses | 6,908 | 2,214 | 11,258 | 4,569 | ||
Charge-offs | (4,207) | (12) | (5,942) | (606) | ||
Recoveries | 11 | 66 | 495 | 124 | ||
Net charge-offs | (4,196) | 54 | (5,447) | (482) | ||
Balance, end of period | 23,722 | 17,185 | 23,722 | 17,185 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | $ 3,829 | $ 1,654 | ||||
Collectively evaluated for impairment | 19,893 | 16,257 | ||||
Total allowance for loan losses | 21,010 | 14,917 | 17,911 | 13,098 | 23,722 | 17,911 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 31,115 | 20,957 | ||||
Collectively evaluated for impairment | 2,170,425 | 1,870,678 | ||||
Total loans evaluated for impairment | 2,201,540 | 1,891,635 | ||||
Commercial and industrial | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 6,282 | 4,105 | 5,059 | 3,644 | ||
Provision for loan losses | 3,925 | 781 | 6,423 | 1,640 | ||
Charge-offs | (4,059) | (8) | (5,794) | (451) | ||
Recoveries | 11 | 22 | 471 | 67 | ||
Net charge-offs | (4,048) | 14 | (5,323) | (384) | ||
Balance, end of period | 6,159 | 4,900 | 6,159 | 4,900 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 2,947 | 1,543 | ||||
Collectively evaluated for impairment | 3,212 | 3,516 | ||||
Total allowance for loan losses | 6,282 | 4,105 | 5,059 | 3,644 | 6,159 | 5,059 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 13,030 | 8,408 | ||||
Collectively evaluated for impairment | 432,999 | 408,344 | ||||
Total loans evaluated for impairment | 446,029 | 416,752 | ||||
Mortgage warehouse | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 0 | 0 | 0 | 0 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | 0 | 0 | ||
Balance, end of period | 0 | 0 | 0 | 0 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 83,577 | 67,038 | ||||
Total loans evaluated for impairment | 83,577 | 67,038 | ||||
Commercial real estate (including multi-family residential) | Commercial real estate (including multi-family residential) | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 9,328 | 6,846 | 8,950 | 5,914 | ||
Provision for loan losses | 2,580 | 1,563 | 2,958 | 2,624 | ||
Charge-offs | 0 | 0 | 0 | (129) | ||
Recoveries | 0 | 43 | 0 | 43 | ||
Net charge-offs | 0 | 43 | 0 | (86) | ||
Balance, end of period | 11,908 | 8,452 | 11,908 | 8,452 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 862 | 105 | ||||
Collectively evaluated for impairment | 11,046 | 8,845 | ||||
Total allowance for loan losses | 9,328 | 6,846 | 8,950 | 5,914 | 11,908 | 8,950 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 16,499 | 12,321 | ||||
Collectively evaluated for impairment | 1,028,721 | 879,668 | ||||
Total loans evaluated for impairment | 1,045,220 | 891,989 | ||||
Commercial real estate (including multi-family residential) | Commercial real estate construction and land development | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 1,894 | 1,368 | 1,217 | 1,221 | ||
Provision for loan losses | 443 | (76) | 1,110 | 71 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 10 | 0 | ||
Net charge-offs | 0 | 0 | 10 | 0 | ||
Balance, end of period | 2,337 | 1,292 | 2,337 | 1,292 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,337 | 1,217 | ||||
Total allowance for loan losses | 1,894 | 1,368 | 1,217 | 1,221 | 2,337 | 1,217 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 209 | 0 | ||||
Collectively evaluated for impairment | 225,365 | 159,247 | ||||
Total loans evaluated for impairment | 225,574 | 159,247 | ||||
Commercial real estate (including multi-family residential) | 1-4 family residential (including home equity) | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 1,988 | 1,642 | 1,876 | 1,432 | ||
Provision for loan losses | 272 | 101 | 374 | 301 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 10 | 10 | ||
Net charge-offs | 0 | 0 | 10 | 10 | ||
Balance, end of period | 2,260 | 1,743 | 2,260 | 1,743 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 2,260 | 1,876 | ||||
Total allowance for loan losses | 1,988 | 1,642 | 1,876 | 1,432 | 2,260 | 1,876 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 1,327 | 217 | ||||
Collectively evaluated for impairment | 282,072 | 246,770 | ||||
Total loans evaluated for impairment | 283,399 | 246,987 | ||||
Commercial real estate (including multi-family residential) | Residential construction | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 835 | 887 | 748 | 820 | ||
Provision for loan losses | 148 | (159) | 235 | (92) | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Net charge-offs | 0 | 0 | 0 | 0 | ||
Balance, end of period | 983 | 728 | 983 | 728 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 983 | 748 | ||||
Total allowance for loan losses | 835 | 887 | 748 | 820 | 983 | 748 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 106,299 | 98,657 | ||||
Total loans evaluated for impairment | 106,299 | 98,657 | ||||
Consumer and other | ||||||
Allowance for loan losses: | ||||||
Balance, beginning of period | 683 | 69 | 61 | 67 | ||
Provision for loan losses | (460) | 4 | 158 | 25 | ||
Charge-offs | (148) | (4) | (148) | (26) | ||
Recoveries | 0 | 1 | 4 | 4 | ||
Net charge-offs | (148) | (3) | (144) | (22) | ||
Balance, end of period | 75 | 70 | 75 | 70 | ||
Allowance for loan losses related to: | ||||||
Individually evaluated for impairment | 20 | 6 | ||||
Collectively evaluated for impairment | 55 | 55 | ||||
Total allowance for loan losses | $ 683 | $ 69 | $ 61 | $ 67 | 75 | 61 |
Recorded investment in loans: | ||||||
Individually evaluated for impairment | 50 | 11 | ||||
Collectively evaluated for impairment | 11,392 | 10,954 | ||||
Total loans evaluated for impairment | $ 11,442 | $ 10,965 |
LOANS AND ALLOWANCE FOR LOAN 50
LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2016USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 5 | 5 | 12 | 24 |
Pre- Modification of Outstanding Recorded Investment | $ 2,022 | $ 1,504 | $ 12,520 | $ 10,692 |
Post- Modification of Outstanding Recorded Investment | $ 2,022 | $ 1,504 | $ 12,520 | $ 10,692 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 4 | 4 | 7 | 16 |
Pre- Modification of Outstanding Recorded Investment | $ 1,520 | $ 872 | $ 3,441 | $ 3,803 |
Post- Modification of Outstanding Recorded Investment | $ 1,520 | $ 872 | $ 3,441 | $ 3,803 |
Mortgage warehouse | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 0 | 0 | 0 | 0 |
Pre- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 1 | 1 | 3 | 7 |
Pre- Modification of Outstanding Recorded Investment | $ 502 | $ 632 | $ 8,783 | $ 6,882 |
Post- Modification of Outstanding Recorded Investment | $ 502 | $ 632 | $ 8,783 | $ 6,882 |
Real estate | Commercial real estate construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 0 | 0 | 1 | 0 |
Pre- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 210 | $ 0 |
Post- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 210 | $ 0 |
Real estate | 1-4 family residential (including home equity) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 0 | 0 | 1 | 0 |
Pre- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 86 | $ 0 |
Post- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 86 | $ 0 |
Real estate | Residential construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 0 | 0 | 0 | 0 |
Pre- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Number of Contracts | loan | 0 | 0 | 0 | 1 |
Pre- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 7 |
Post- Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 7 |
LOANS AND ALLOWANCE FOR LOAN 51
LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |||||
Recorded investment | $ 24,300,000 | $ 24,300,000 | $ 12,600,000 | ||
Change in method of calculating impairment | 1,900,000 | 1,900,000 | $ 879,000 | ||
Troubled debt restructuring, write-down | $ 0 | $ 0 | 407,000 | $ 442,000 | |
Loan modified under a troubled debt restructuring | $ 12,000 | $ 32,000 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 323,856 | $ 316,455 |
FHLB stock | 12,790 | 13,175 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 192,427 | 142,098 |
Available for sale securities | 323,856 | 316,455 |
Loans held for investment, net of allowance | 2,177,818 | 1,873,724 |
FHLB stock | 12,790 | 13,175 |
Accrued interest receivable | 7,993 | 9,007 |
Deposits | 2,286,615 | 1,870,183 |
Accrued interest payable | 521 | 285 |
Borrowed funds | 207,569 | 285,569 |
Subordinated debentures | 9,277 | 9,196 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 192,427 | 142,098 |
Available for sale securities | 323,856 | 316,455 |
Loans held for investment, net of allowance | 2,184,269 | 1,872,056 |
Accrued interest receivable | 7,993 | 9,007 |
Deposits | 2,284,709 | 1,868,429 |
Accrued interest payable | 521 | 285 |
Borrowed funds | 206,850 | 284,989 |
Subordinated debentures | 9,277 | 9,196 |
Estimated Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 192,427 | 142,098 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 1 | 3 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debentures | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 323,856 | 316,455 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 2,081 | 3,616 |
Deposits | 2,284,709 | 1,868,429 |
Accrued interest payable | 521 | 285 |
Borrowed funds | 206,850 | 284,989 |
Subordinated debentures | 9,277 | 9,196 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 2,184,269 | 1,872,056 |
Accrued interest receivable | 5,911 | 5,388 |
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debentures | $ 0 | $ 0 |
FAIR VALUE - Fair Values for As
FAIR VALUE - Fair Values for Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 323,856 | $ 316,455 |
U.S. Government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 8,780 | 6,149 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 238,372 | 237,802 |
Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 30,132 | 27,324 |
Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 46,572 | 45,180 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 323,856 | 316,455 |
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 | 323,856 | 316,455 |
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 | 8,780 | 6,149 |
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 | 8,780 | 6,149 |
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 | 238,372 | 237,802 |
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 | 238,372 | 237,802 |
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 | 30,132 | 27,324 |
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 | 30,132 | 27,324 |
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 | Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 46,572 | 45,180 |
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 | 46,572 | 45,180 |
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 |
FAIR VALUE - Assets and Liabili
FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets and liabilities are measured at fair value, nonrecurring basis | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets and liabilities are measured at fair value, nonrecurring basis | 13,766 | 3,756 |
Nonrecurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Nonrecurring Basis | Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Nonrecurring Basis | Level 1 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Nonrecurring Basis | Level 1 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Nonrecurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Nonrecurring Basis | Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Nonrecurring Basis | Level 2 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | 0 |
Nonrecurring Basis | Level 2 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 0 | |
Nonrecurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 453 | 1,503 |
Nonrecurring Basis | Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 4,622 | 1,785 |
Nonrecurring Basis | Level 3 | Commercial real estate (including multi-family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | 8,663 | $ 468 |
Nonrecurring Basis | Level 3 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans: | $ 28 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities, fair value disclosure, recurring | $ 0 | $ 0 |
Impaired financing receivable, with related allowance, recorded investment | 16,921,000 | 3,687,000 |
Impaired financing receivable, with related allowance, unpaid principal balance | 17,142,000 | 3,907,000 |
Related allowance | 3,829,000 | 1,654,000 |
Other real estate owned | 453,000 | 1,503,000 |
Recorded investment of commercial real estate land loans | 0 | 1,500,000 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired financing receivable, with related allowance, recorded investment | 13,300,000 | 2,300,000 |
Impaired financing receivable, with related allowance, unpaid principal balance | 17,100,000 | 3,900,000 |
Related allowance | 3,800,000 | $ 1,700,000 |
Other real estate owned | $ 453,000 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Deposit Liabilities [Abstract] | ||
Time deposits 250,000 or more | $ 214.9 | $ 196.5 |
Brokered deposits | 230.1 | 65.9 |
Reciprocal deposits | $ 163.4 | $ 64.8 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deposit Liabilities [Abstract] | ||
Within one year | $ 483,649 | |
After one but within two years | 161,360 | |
After two but within three years | 38,039 | |
After three but within four years | 28,941 | |
After four but within five years | 44,895 | |
Total | $ 756,884 | $ 678,394 |
BORROWINGS AND BORROWING CAPA58
BORROWINGS AND BORROWING CAPACITY - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Increase (decrease) in other borrowings | $ 18,000,000 | $ 10,100,000 | ||||
Repayments of debt | $ 27,500,000 | $ 103,000,000 | $ 20,000,000 | |||
Borrowing Agreement | Prime Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.25% | |||||
Interest rate, effective percentage | 4.00% | 4.00% | ||||
Allegiance Bank | ||||||
Debt Instrument [Line Items] | ||||||
Return on assets, below required minimum | 0.47% | |||||
Federal Home Loan Bank of Dallas | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 886,600,000 | $ 886,600,000 | ||||
Remaining borrowing capacity | 646,000,000 | 646,000,000 | ||||
Long-term line of credit | 240,600,000 | 240,600,000 | ||||
Outstanding amount | 33,600,000 | 33,600,000 | ||||
Federal Home Loan Bank of Dallas | Expire in October 2017 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding amount | 25,000,000 | 25,000,000 | ||||
Federal Home Loan Bank of Dallas | Expire in February 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding amount | 3,100,000 | 3,100,000 | ||||
Federal Home Loan Bank of Dallas | Expire in August 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding amount | 5,500,000 | 5,500,000 | ||||
Federal Home Loan Bank of Dallas | Short-term Debt | ||||||
Debt Instrument [Line Items] | ||||||
Federal Home Loan Bank, advances | $ 207,000,000 | $ 207,000,000 | ||||
Federal Home Loan Bank of Dallas | Short-term Debt | Weighted Average | ||||||
Debt Instrument [Line Items] | ||||||
Federal Home Loan Bank, advances, interest rate | 1.32% | 1.32% |
BORROWINGS AND BORROWING CAPA59
BORROWINGS AND BORROWING CAPACITY - Scheduled Principal Maturities (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Debt Disclosure [Abstract] | |
Remaining 2,017 | $ 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 and thereafter | 569 |
Total | $ 569 |
SUBORDINATED DEBENTURES - Narra
SUBORDINATED DEBENTURES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Subordinated Borrowing [Line Items] | |
Debentures, period over which company may defer interest payments | 5 years |
Junior subordinated debt owed to trusts | $ 11,300,000 |
Junior Subordinated Debt | |
Subordinated Borrowing [Line Items] | |
Junior subordinated debt owed to trusts | 11,341,000 |
F&M Bancshares. Inc. | Junior Subordinated Debt | |
Subordinated Borrowing [Line Items] | |
Debt instrument, face amount | 11,300,000 |
Borrowed funds | 9,300,000 |
Debt instrument, unamortized discount | $ 2,500,000 |
SUBORDINATED DEBENTURES - Summa
SUBORDINATED DEBENTURES - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Subordinated Borrowing [Line Items] | |
Junior Subordinated Debt Owed to Trusts | $ 11,300,000 |
Junior Subordinated Debt | |
Subordinated Borrowing [Line Items] | |
Junior Subordinated Debt Owed to Trusts | $ 11,341,000 |
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 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | 3 month LIBOR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 3.00% |
Interest rate, period end | 1.3233% |
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 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | 3 month LIBOR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 1.80% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 887,000 | $ 2,103,000 | $ 4,138,000 | $ 7,512,000 |
Effective income tax Rate reconciliation, percent | 22.90% | 27.80% | 22.30% | 30.60% |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Increase in tax free income from purchase of municipal securities | 5.30% | |||
Impact on the tax rate due to the excess tax benefit on stock options exercised | 9.00% |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,900,000 | 1,900,000 | ||
Share-based compensation expense | $ 497 | $ 370 | $ 1,300 | $ 1,100 |
Option, cumulative options granted since inception (in shares) | 1,290,431 | 1,290,431 | ||
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Award vesting period | 4 years | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Equity instruments other than options, grants in period (in shares) | 28,106 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plan Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 935 | |
Options granted (in shares) | 50 | |
Options exercised (in shares) | (182) | |
Options forfeited (in shares) | (3) | |
Options outstanding, ending balance (in shares) | 800 | 935 |
Number of options vested and exercisable (in shares) | 508 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ 18.21 | |
Options granted (in dollars per share) | 36.22 | |
Options exercised (in dollars per share) | 17.44 | |
Options forfeited (in dollars per share) | 20.53 | |
Options outstanding, ending balance (in dollars per share) | 19.56 | $ 18.21 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 17.01 | |
Weighted Average Remaining Contractual Term, Options outstanding | 5 years 10 months 17 days | 6 years 2 months 23 days |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 4 years 8 months 12 days | |
Aggregate Intrinsic Value, Options outstanding | $ 13,885 | $ 16,773 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 10,093 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of Shares | |
Nonvested share awards outstanding, beginning balance (in shares) | shares | 24 |
Share awards granted (in shares) | shares | 28 |
Share awards vested (in shares) | shares | (10) |
Unvested share awards forfeited (in shares) | shares | 0 |
Nonvested share awards outstanding, ending balance (in shares) | shares | 42 |
Weighted Average Grant Date Fair Value | |
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 18.31 |
Share awards granted (in dollars per share) | $ / shares | 36.17 |
Share awards vested (in dollars per share) | $ / shares | 18.19 |
Unvested share awards forfeited (in dollars per share) | $ / shares | 0 |
Nonvested share awards outstanding, ending balance (in dollars per share) | $ / shares | $ 30.24 |
OFF-BALANCE SHEET ARRANGEMENT66
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 395,881 | $ 363,245 |
Variable Rate | 259,534 | 232,675 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 380,565 | 353,822 |
Variable Rate | 257,859 | 232,551 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 15,316 | 9,423 |
Variable Rate | $ 1,675 | $ 124 |
OFF-BALANCE SHEET ARRANGEMENT67
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Commitments to make loans, period | 120 days |
Minimum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 1.60% |
Maximum | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 7.50% |
Weighted Average | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Off-balance-sheet fixed rate loan commitments, interest rate | 5.03% |
Off-balance-sheet fixed rate loan commitments, weighted average maturity | 2 years 9 months 4 days |
REGULATORY CAPITAL MATTERS - Na
REGULATORY CAPITAL MATTERS - Narrative (Details) | Dec. 31, 2018 | Sep. 30, 2017 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | |||
Capital conservation buffer, phase in amount | 0.625% | ||
Capital conservation buffer, increase per year | 0.625% | ||
Forecast | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Capital conservation buffer | 2.50% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Total Capital | ||
Capital | $ 292,639 | $ 268,155 |
Capital to Risk Weighted Assets | 12.04% | 12.57% |
Capital Required for Capital Adequacy | $ 194,407 | $ 170,690 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 224,783 | $ 184,025 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 9.25% | 8.625% |
Common Equity Tier 1 Capital | ||
Common Equity Tier One Risk Based Capital | $ 259,640 | $ 241,048 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.68% | 11.30% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 109,354 | $ 96,013 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Plus Common Equity Tier One Risk Based Capital | $ 139,730 | $ 109,348 |
Plus Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 5.75% | 5.125% |
Tier I Capital | ||
Tier One Risk Based Capital | $ 268,917 | $ 250,244 |
Tier One Risk Based Capital to Risk Weighted Assets | 11.07% | 11.73% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 145,805 | $ 128,018 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Plus Tier One Risk Based Capital | $ 176,181 | $ 141,353 |
Plus Tier One Risk Based Capital to Risk Weighted Assets | 7.25% | 6.625% |
Tier I Capital | ||
Tier One Leverage Capital | $ 268,917 | $ 250,244 |
Tier One Leverage Capital to Average Assets | 9.90% | 10.35% |
Tier One Leverage Capital Required for Capital Adequacy | $ 108,673 | $ 96,708 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier One Leverage Capital | $ 108,673 | $ 96,708 |
Plus Tier One Leverage Capital to Average Assets | 4.00% | 4.00% |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 289,178 | $ 247,606 |
Capital to Risk Weighted Assets | 11.90% | 11.61% |
Capital Required for Capital Adequacy | $ 194,316 | $ 170,630 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% |
Plus Capital Conservation Buffer | $ 224,678 | $ 183,960 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 9.25% | 8.625% |
Capital Required to be Well Capitalized | $ 242,895 | $ 213,288 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% |
Common Equity Tier 1 Capital | ||
Common Equity Tier One Risk Based Capital | $ 265,456 | $ 229,694 |
Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 10.93% | 10.77% |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy | $ 109,303 | $ 95,979 |
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 4.50% |
Plus Common Equity Tier One Risk Based Capital | $ 139,664 | $ 109,310 |
Plus Common Equity Tier One Risk Based Capital to Risk Weighted Assets | 5.75% | 5.125% |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized | $ 157,882 | $ 138,637 |
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% | 6.50% |
Tier I Capital | ||
Tier One Risk Based Capital | $ 265,456 | $ 229,694 |
Tier One Risk Based Capital to Risk Weighted Assets | 10.93% | 10.77% |
Tier One Risk Based Capital Required for Capital Adequacy | $ 145,737 | $ 127,973 |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.00% |
Plus Tier One Risk Based Capital | $ 176,099 | $ 141,303 |
Plus Tier One Risk Based Capital to Risk Weighted Assets | 7.25% | 6.625% |
Tier One Risk Based Capital Required to be Well Capitalized | $ 194,316 | $ 170,630 |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 8.00% |
Tier I Capital | ||
Tier One Leverage Capital | $ 265,456 | $ 229,694 |
Tier One Leverage Capital to Average Assets | 9.77% | 9.50% |
Tier One Leverage Capital Required for Capital Adequacy | $ 108,630 | $ 96,679 |
Tier One Leverage Capital Required for Capital Adequacy to Average Assets | 4.00% | 4.00% |
Plus Tier One Leverage Capital | $ 108,630 | $ 96,679 |
Plus Tier One Leverage Capital to Average Assets | 4.00% | 4.00% |
Tier One Leverage Capital Required to be Well Capitalized | $ 135,788 | $ 120,849 |
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | 5.00% |
EARNINGS PER COMMON SHARE - Sum
EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareholders | $ 2,986 | $ 5,471 | $ 14,428 | $ 17,080 |
Basic: | ||||
Weighted average common shares outstanding (in shares) | 13,165 | 12,882 | 13,104 | 12,860 |
Weighted average common shares outstanding (in dollars per share) | $ 0.23 | $ 0.42 | $ 1.10 | $ 1.33 |
Diluted: | ||||
Dilutive effect of stock option exercises (in shares) | 319 | 226 | 341 | 178 |
Total (in shares) | 13,483 | 13,108 | 13,445 | 13,038 |
Total (in dollars per share) | $ 0.22 | $ 0.42 | $ 1.07 | $ 1.31 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 0 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 33,000 |