Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FBK | ||
Entity Registrant Name | FB Financial Corp | ||
Entity Central Index Key | 1,649,749 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 24,153,733 | ||
Entity Public Float | $ 0 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 50,157 | $ 53,893 |
Federal funds sold | 13,037 | 21,628 |
Interest bearing deposits in financial institutions | 73,133 | 22,202 |
Cash and cash equivalents | 136,327 | 97,723 |
Investments: | ||
Available-for-sale securities, at fair value | 582,183 | 649,387 |
Federal Home Loan Bank stock, at cost | 7,743 | 6,528 |
Loans held for sale, at fair value | 507,442 | 273,196 |
Loans | 1,848,784 | 1,701,863 |
Less: allowance for loan losses | 21,747 | 24,460 |
Net loans | 1,827,037 | 1,677,403 |
Premises and equipment, net | 66,651 | 65,892 |
Foreclosed real estate, net | 7,403 | 11,641 |
Interest receivable | 7,241 | 6,763 |
Mortgage servicing rights, net | 32,070 | 29,711 |
Goodwill | 46,867 | 46,904 |
Core deposit intangible, net | 4,563 | 6,695 |
Other assets | 51,354 | 27,577 |
Total assets | 3,276,881 | 2,899,420 |
Demand deposits | ||
Noninterest-bearing | 697,072 | 626,955 |
Interest-bearing | 1,449,382 | 1,273,438 |
Savings deposits | 134,077 | 212,522 |
Time deposits | 391,031 | 325,559 |
Total deposits | 2,671,562 | 2,438,474 |
Securities sold under agreements to repurchase | 21,561 | 105,133 |
Short-term borrowings | 150,000 | 18,000 |
Long-term debt (see Note 14) | 44,892 | 56,616 |
Accrued expenses and other liabilities | 58,368 | 44,523 |
Total liabilities | 2,946,383 | 2,662,746 |
Shareholders' equity : | ||
Common stock, $1 par value; 75,000,000 and 25,000,000 shares authorized; 24,107,660 and 17,180,000 shares issued and outstanding at December 31, 2016 and 2015, respectively | 24,108 | 17,180 |
Additional paid-in capital | 213,480 | 94,544 |
Retained earnings | 93,784 | 122,493 |
Accumulated other comprehensive (loss) income, net | (874) | 2,457 |
Total shareholders' equity | 330,498 | 236,674 |
Total liabilities and shareholders' equity | $ 3,276,881 | $ 2,899,420 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 25,000,000 |
Common stock, shares issued | 24,107,660 | 17,180,000 |
Common stock, shares outstanding | 24,107,660 | 17,180,000 |
Consolidated statements of inco
Consolidated statements of income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Interest and fees on loans | $ 105,865 | $ 87,723 | $ 75,138 |
Interest on securities | |||
Taxable | 10,646 | 11,783 | 14,375 |
Tax-exempt | 3,372 | 2,808 | 2,932 |
Other | 611 | 468 | 444 |
Total interest income | 120,494 | 102,782 | 92,889 |
Deposits | |||
Demand and savings accounts | 5,413 | 4,733 | 4,241 |
Time deposits | 1,929 | 1,559 | 2,483 |
Short-term borrowings | 121 | 712 | 642 |
Long-term debt | 2,081 | 1,906 | 2,147 |
Total interest expense | 9,544 | 8,910 | 9,513 |
Net interest income | 110,950 | 93,872 | 83,376 |
Provision for loan losses | (1,479) | (3,064) | (2,716) |
Net interest income after provision for loan losses | 112,429 | 96,936 | 86,092 |
Noninterest income: | |||
Mortgage banking income | 117,751 | 70,190 | 31,135 |
Service charges on deposit accounts | 8,009 | 7,389 | 7,333 |
ATM and interchange fees | 7,791 | 6,536 | 5,633 |
Investment services income | 3,337 | 3,260 | 3,520 |
Bargain purchase gain | 2,794 | ||
Gain on sale of securities | 4,407 | 1,844 | 2,000 |
Gain (loss) on sales or write-downs of foreclosed assets | 1,282 | (317) | 132 |
(Loss) gain on other assets | (103) | (393) | 19 |
Other income | 2,211 | 1,077 | 1,030 |
Total noninterest income | 144,685 | 92,380 | 50,802 |
Noninterest expenses: | |||
Salaries, commissions and employee benefits | 113,992 | 84,214 | 63,863 |
Occupancy and equipment expense | 12,611 | 10,777 | 9,421 |
Legal and professional fees | 3,514 | 3,355 | 3,175 |
Data processing | 4,181 | 2,053 | 2,430 |
Merger and conversion | 3,268 | 3,543 | |
Amortization of core deposit intangibles | 2,132 | 1,731 | 1,613 |
Amortization of mortgage servicing rights | 8,321 | 2,601 | 397 |
Impairment of mortgage servicing rights | 4,678 | 194 | 0 |
Loss on sale of mortgage servicing rights | 4,447 | ||
Regulatory fees and deposit insurance assessments | 1,952 | 2,190 | 1,938 |
Software license and maintenance fees | 2,874 | 1,986 | 1,416 |
Advertising | 10,608 | 7,866 | 2,873 |
Other expense | 22,212 | 17,982 | 15,037 |
Total noninterest expense | 194,790 | 138,492 | 102,163 |
Income before income taxes | 62,324 | 50,824 | 34,731 |
Income tax expense (Note 15) | 21,733 | 2,968 | 2,269 |
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Per share information: | |||
Basic | 19,165,182 | 17,180,000 | 17,180,000 |
Fully diluted | 19,312,174 | 17,180,000 | 17,180,000 |
Earnings per share | |||
Basic | $ 2.12 | $ 2.79 | $ 1.89 |
Fully diluted | $ 2.10 | $ 2.79 | $ 1.89 |
Unaudited pro forma (C Corporation basis) (Note 15): | |||
Income tax expense | $ 22,902 | $ 17,829 | $ 12,375 |
Net income | $ 39,422 | $ 32,995 | $ 22,356 |
Earnings per share | |||
Basic | $ 2.06 | $ 1.92 | $ 1.30 |
Fully diluted | $ 2.04 | $ 1.92 | $ 1.30 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Other comprehensive income, net of tax: | |||
Net change in unrealized gain (loss) in available-for-sale securities, net of taxes of $5,309, $(71), and $802 | 778 | (1,057) | 11,549 |
Reclassification adjustment for gain on sale of securities included in net income, net of tax expense of $298, $91 and $130 | (4,109) | (1,753) | (1,870) |
Comprehensive income | $ 37,260 | $ 45,046 | $ 42,141 |
Consolidated statements of com6
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net change in unrealized gain (loss) in available for sale securities, tax | $ 5,309 | $ (71) | $ 802 |
Reclassification adjustment for gain on sale of securities included in net income, tax | $ 298 | $ 91 | $ 130 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income, Net |
Balance at Dec. 31, 2013 | $ 189,687 | $ 17,180 | $ 94,544 | $ 82,375 | $ (4,412) |
Net income | 32,462 | 32,462 | |||
Other comprehensive income (loss), net of taxes | 9,679 | 9,679 | |||
Cash dividends declared | (16,600) | (16,600) | |||
Balance at Dec. 31, 2014 | 215,228 | 17,180 | 94,544 | 98,237 | 5,267 |
Net income | 47,856 | 47,856 | |||
Other comprehensive income (loss), net of taxes | (2,810) | (2,810) | |||
Cash dividends declared | (23,600) | (23,600) | |||
Balance at Dec. 31, 2015 | 236,674 | 17,180 | 94,544 | 122,493 | 2,457 |
Net income | 40,591 | 40,591 | |||
Other comprehensive income (loss), net of taxes | (3,331) | (3,331) | |||
Common stock issued, net of offering costs | 115,525 | 6,765 | 108,760 | ||
Conversion of cash to stock-settled awards for, Equity based incentive plans | 2,388 | 2,388 | |||
Conversion of cash to stock-settled awards for, Deferred compensation plan | 3,000 | 3,000 | |||
Stock based compensation expense | 4,693 | 4,693 | |||
Restricted stock units vested and distributed, net of shares withheld for taxes | (271) | 142 | (413) | ||
Shares issued under employee stock purchase program | 529 | 21 | 508 | ||
Cash dividends declared | (69,300) | (69,300) | |||
Balance at Dec. 31, 2016 | $ 330,498 | $ 24,108 | $ 213,480 | $ 93,784 | $ (874) |
Consolidated statements of cha8
Consolidated statements of changes in shareholders' equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends declared, per share | $ 4.03 | $ 1.37 | $ 0.97 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation expense | 3,995 | 3,283 | 3,099 |
Amortization of core deposit intangibles | 2,132 | 1,731 | 1,613 |
Capitalization of mortgage servicing rights | (46,070) | (26,474) | (6,429) |
Amortization of mortgage servicing rights | 8,321 | 2,601 | 397 |
Impairment of mortgage servicing rights | 4,678 | 194 | 0 |
Stock-based compensation expense | 4,693 | ||
Provision for loan losses | (1,479) | (3,064) | (2,716) |
Provision for mortgage loan repurchases | 512 | 1,375 | 161 |
Accretion of yield on purchased loans | (3,538) | (254) | |
Accretion of discounts and amortization of premiums on securities, net | 2,326 | 1,474 | 1,387 |
Bargain purchase gain | (2,794) | ||
Gain on sales of securities | (4,407) | (1,844) | (2,000) |
Origination of loans held for sale | (4,671,561) | (2,757,463) | (1,156,187) |
Proceeds from sale of loans held for sale | 4,534,837 | 2,739,914 | 1,047,907 |
Gain on sale and change in fair value of loans held for sale | (115,485) | (65,947) | (30,617) |
Gain on sale of mortgage servicing rights | (3,406) | ||
Net (gain) loss on sales or write-downs of foreclosed assets | (1,282) | 317 | (132) |
(Gain) loss on other assets | 103 | 393 | (19) |
Provision for deferred income tax | 9,257 | 1,647 | 842 |
Changes in: | |||
Other assets and interest receivable | (24,730) | (1,301) | (5,498) |
Accrued expenses and other liabilities | 15,312 | 12,820 | 10,123 |
Net cash (used in) operating activities | (245,201) | (45,536) | (105,607) |
Activity in available-for-sale securities: | |||
Sales | 271,148 | 194,611 | 68,900 |
Maturities, prepayments and calls | 104,368 | 103,233 | 84,386 |
Purchases | (316,384) | (164,864) | (109,709) |
Net increase in loans | (127,949) | (206,909) | (73,111) |
Proceeds from sale of mortgage servicing rights | 34,118 | ||
Purchases of premises and equipment | (4,784) | (5,918) | (5,424) |
Proceeds from the sale of foreclosed assets | 6,696 | 3,774 | 4,738 |
Proceeds from the sale of premises and equipment | 46 | 17 | 607 |
Net cash received in business combination | 23,995 | ||
Net cash (used in) investing activities | (32,741) | (52,061) | (29,613) |
Cash flows from financing activities: | |||
Net increase in demand and savings deposits | 167,616 | 306,360 | 165,119 |
Net increase (decrease) in time deposits | 65,472 | (37,671) | (45,117) |
Net (decrease) increase in securities sold under agreements to repurchase | (83,572) | (8,361) | 6,436 |
Increase (decrease) in short-term borrowings | 132,000 | (81,378) | 9,000 |
Payments on long-term debt | (11,724) | (8,234) | (3,011) |
Net proceeds from sale of common stock | 116,054 | ||
Dividends paid | (69,300) | (25,350) | (14,850) |
Net cash provided by financing activities | 316,546 | 145,366 | 117,577 |
Net change in cash and cash equivalents | 38,604 | 47,769 | (17,643) |
Cash and cash equivalents at beginning of the period | 97,723 | 49,954 | 67,597 |
Cash and cash equivalents at end of the period | 136,327 | 97,723 | 49,954 |
Supplemental cash flow information | |||
Interest paid | 9,474 | 8,985 | 9,725 |
Taxes paid | 1,307 | 1,754 | 1,513 |
Supplemental noncash disclosures: | |||
Transfers from loans to foreclosed real estate | 2,724 | 4,085 | 4,308 |
Transfers from foreclosed real estate to loans | 1,548 | 785 | 1,239 |
Transfers from loans held for sale to loans | 17,963 | $ 5,045 | 5,053 |
Dividends declared not paid | $ 1,750 | ||
Conversion of cash-settled to stock-settled compensation | $ 5,388 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Note (1)—Basis of presentation: (A) Organization: FB Financial Corporation (the “Company”), a bank holding company, and its wholly owned subsidiary, FirstBank (the “Bank”), are engaged in the business of banking and provide a full range of financial services to individual, corporate and public customers principally in Brentwood, Camden, Chattanooga, Crossville, Dayton, Dickson, Fairview, Fayetteville, Franklin, Goodlettsville, Hollow Rock, Huntingdon, Jackson, Knoxville, Lexington, Linden, Memphis, Mount Juliet, Murfreesboro, Nashville, Paris, Parsons, Scotts Hill, Shelbyville, Smithville, Smyrna, Waverly, and Woodbury, Tennessee, and the unincorporated areas of Bedford, Benton, Cannon, Carroll, Cumberland, Davidson, DeKalb, Decatur, Dickson, Hamilton, Henderson, Henry, Humphreys, Knox, Lincoln, Madison, Rhea, Rutherford, Shelby, Williamson and Wilson counties of Tennessee. The Bank also has a full service branch in Huntsville, Alabama to service customers in Huntsville and Madison County, Alabama and a loan origination office in Florence, Alabama to serve customers in Florence and Lauderdale County. On September 18, 2015, the Company completed its acquisition of Northwest Georgia Bank (“NWGB”). This added locations in Ringgold, Georgia and Catoosa County, Georgia and additional locations in Chattanooga, Tennessee. The financial condition and results of operation for NWGB are included in the Company’s consolidated financial statements since the date of acquisition. See Note 2, “Acquisition of Northwest Georgia Bank” in the notes to the consolidated financial statements for further details regarding the terms and conditions of the Company’s acquisition of NWGB. Effective March 8, 2016, the company formerly known as First South Bancorp, Inc. legally changed its name to FB Financial Corporation. The Company operates mortgage loan production offices for originations that are primarily sold in the secondary market. The Company has loan origination specialists in various locations in Alabama, Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Massachusetts, Missouri, Nevada, New York, North Carolina, Ohio, South Carolina, Tennessee, and Texas. Additionally, the Company operates a wholesale mortgage operation based in South Carolina and an online mortgage origination platform through offices in Charlotte, North Carolina servicing customers throughout the United States. The Bank is subject to competition from other financial services companies and financial institutions. The Company and the Bank are also subject to the regulations of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. On June 28, 2016, the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25,000,000, respectively. Additional shares issued as a result of the stock split were distributed immediately upon issuance to the shareholder on that date. Share and per share amounts included in the consolidated financial statements and notes thereto reflect the effect of the split for all periods presented. Additionally, in July 2016, the Company increased the authorized shares from 25,000,000 to 75,000,000. On August 19, 2016, the Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission (“SEC”) which was declared effective by the SEC on September 15, 2016. The Company sold and issued 6,764,704 shares of common stock at $19 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were approximately $115,525. The proceeds were used to fund a $55,000 distribution to the majority shareholder representing undistributed earnings previously taxed to him under subchapter S, and used to repay all $10,075 aggregate principal amount of subordinated notes held by the majority shareholder, plus any accrued and unpaid interest thereon. As of December 31, 2016, the Company is considered a “controlled company” and is controlled by the Company’s Executive Chairman and former sole shareholder, James W. Ayers. The Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). The Company terminated its S-Corporation status and became a taxable corporate entity (“C Corporation”) on September 16, 2016 in connection with its initial public offering. Unaudited pro forma amounts for income tax expense and basic and diluted earnings per share have been presented assuming the Company’s pro forma effective tax rate of 36.75% for the year ended December 31, 2016 and 35.08% and 35.63% for the years ended December 31, 2015 and 2014, as if it had been a C Corporation during those periods. In addition, the unaudited pro forma results for year ended December 31, 2016 excludes the effect of recognition of the deferred tax liability attributable to conversion of $13,181 as discussed in Note 15. For more details, see Note 15 in the Notes to the consolidated financial statements. (B) Basis of presentation: The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the year then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the determination of fair value in business combinations, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the determination of the fair value of financial instruments and mortgage servicing rights. In connection with the determination of the estimated fair value of foreclosed real estate and impaired loans, management obtains independent appraisals for significant properties. The consolidated financial statements include the accounts of the Company, the Bank, and its’ wholly owned subsidiaries, FirstBank Insurance, Inc., First Holdings, Inc., RE Holdings, Inc., and Investors Title Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. (C) Cash flows: For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest earning deposits in other financial institutions with maturities of less than 90 days at the date of purchase. These amounts are reported in the consolidated balance sheets caption “Cash and cash equivalents.” Net cash flows are reported for loan, deposit, repurchase agreements, federal funds sold, and short-term borrowings. (D) Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash and cash equivalents. (E) Investment securities: Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of applicable taxes. Interest income includes the amortization and accretion of purchase premium and discount. Premiums and discounts on securities are amortized on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. For securities in an unrealized loss position, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. When OTTI is determined to have occurred, the amount of the OTTI recognized in earnings depends on whether we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the OTTI recognized in earnings is equal to the entire difference between its amortized cost basis and its fair value at the date it was determined to be OTTI. If we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the OTTI is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized as a charge to earnings. The amount of the OTTI related to other factors is recognized in other comprehensive income (loss), net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. The Company recorded no OTTI for the years ended December 31, 2016, 2015 or 2014. (F) Loans held for sale: Loans originated and intended for sale in the secondary market, primarily mortgage loans, are carried at fair value as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”). Net (losses) gains of $(2,289), $2,257 and $5,095 resulting from fair value changes of these mortgage loans were recorded in income during 2016, 2015, and 2014, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both mortgage loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the Consolidated Statements of Income. Gains and losses are recognized in income at the time the loan is closed. These gains and losses are classified under the line item “Mortgage banking income” on the Consolidated Statements of Income. Pass through origination costs and related loan fees are also included in “Mortgage banking income”. Periodically, the Bank will transfer mortgage loans originated for sale in the secondary markets into the loan portfolio based on the overall secondary marketability of the loan based on current market conditions and the status of the loan. During 2016, 2015 and 2014, the Bank transferred approximately $18,000, $5,000 and $5,100, respectively, of residential mortgage loans into its portfolio. The loans are transferred into the portfolio at fair value at the date of transfer. (G) Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest is discontinued on loans past due 90 days or more unless the credit is well secured and in the process of collection. Also, a loan may be placed on nonaccrual status prior to becoming past due 90 days if management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of principal or interest is doubtful. The decision to place a loan on nonaccrual status prior to becoming past due 90 days is based on an evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors that affect the borrower’s ability to pay. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectability of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. (H) Allowance for loan losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Commercial and commercial real estate loans over $250 are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer, residential real estate loans, commercial and commercial real estate loans less than $250 are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 5 years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial and industrial loans. The Company provides a mix of variable and fixed rate commercial and industrial loans. Commercial and industrial loans are typically made to small- and medium-sized manufacturing, wholesale, retail and service businesses for working capital and operating needs and business expansions, including the purchase of capital equipment and loans made to farmers relating to their operations. Commercial and industrial loans generally include lines of credit and loans with maturities of five years or less. The loans are generally made with operating cash flows as the primary source of repayment, but may also include collateralization by inventory, accounts receivable, equipment and/or personal guarantees. The ability of the borrower to collect accounts receivable, and to turn inventory into sales are risk factors in the repayment of the loan. Construction loans. Construction loans include commercial construction, land acquisition and land development loans and single-family interim construction loans to small- and medium-sized businesses and individuals. These loans are generally secured by the land or the real property being built and are made based on our assessment of the value of the property on an as-completed basis. We expect to continue to make construction loans at a similar pace so long as demand continues and the market for and values of such properties remain stable or continue to improve in our markets. These loans can carry risk of repayment when projects incur cost overruns, have an increase in the price of building materials, encounter zoning and environmental issues, or encounter other factors that may affect the completion of a project on time and on budget. Additionally, repayment risk may be negatively impacted when the market experiences a deterioration in the value of real estate. Residential real estate 1-4 family mortgage loans . The Company’s residential real estate 1-4 family mortgage loans are primarily made with respect to and secured by single family homes, which are both owner-occupied and investor owned. The Company intends to continue to make residential 1-4 family housing loans at a similar pace, so long as housing values in our markets do not deteriorate from current prevailing levels and we are able to make such loans consistent with our current credit and underwriting standards. First lien residential 1-4 family mortgages may be affected by unemployment or underemployment and deteriorating market values of real estate. Residential line of credit loans. The Company’s residential line of credit loans are primarily revolving, open-end lines of credit secured by 1-4 residential properties. The Company intends to continue to make home equity loans if housing values in our markets do not deteriorate from current prevailing levels and we are able to make such loans consistent with our current credit and underwriting standards. Second lien residential 1-4 family mortgages may be affected by unemployment or underemployment and deteriorating market values of real estate. Multi-family residential loans. The Company’s multi-family residential loans are primarily secured by multi-family properties, such as apartments and condominium buildings. These loans may be affected by unemployment or underemployment and deteriorating market values of real estate. Commercial real estate loans . The Company’s commercial real estate owner-occupied loans include loans to finance commercial real estate owner occupied properties for various purposes including use as offices, warehouses, production facilities, health care facilities, retail centers, restaurants, churches and agricultural based facilities. Commercial real estate owner-occupied loans are typically repaid through the ongoing business operations of the borrower, and hence are dependent on the success of the underlying business for repayment and are more exposed to general economic conditions. Commercial real estate non-owner occupied loans . The Company’s commercial real estate non-owner occupied loans include loans to finance commercial real estate non-owner occupied investment properties for various purposes including use as offices, warehouses, health care facilities, hotels, mixed-use residential/commercial, retail centers, multifamily properties, assisted living facilities and agricultural based facilities. Commercial real estate non-owner occupied loans are typically repaid with the funds received from the sale of the completed property or rental proceeds from such property, and are therefore more sensitive to adverse conditions in the real estate market, which can also affected by general economic conditions. Consumer and other loans . The Company’s consumer and other loans include loans to individuals for personal, family and household purposes, including car, boat and other recreational vehicle loans and personal lines of credit. Consumer loans are generally secured by vehicles and other household goods. The collateral securing consumer loans may depreciate over time. The company seeks to minimize these risks through its underwriting standards. Other loans also include loans to states and political subdivisions in the U.S. These loans are generally subject to the risk that the borrowing municipality or political subdivision may lose a significant portion of its tax base or that the project for which the loan was made may produce inadequate revenue. (I) Business combinations, accounting for acquired loans and related assets: Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, “Business Combinations” (“ASC 805”). Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceed the purchase price, a bargain purchase gain is recognized. Results of operations of the acquired entities are included in the Consolidated Statements of Income from the date of acquisition. Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit-impaired. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, in accordance with ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Increases in expected cash flows to be collected on these loans are recognized as an adjustment of the loan’s yield over its remaining life, while decreases in expected cash flows are recognized as an impairment. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. (J) Premises and equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Provisions for depreciation are computed principally on the straight-line method and are charged to occupancy expense over the estimated useful lives of the assets. Maintenance agreements are amortized to expense over the period of time covered by the agreement. Costs of major additions, replacements or improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. For financial statement purposes, the estimated useful life for premises is forty years, for furniture and fixtures the estimated useful life is seven to ten years, for leasehold improvements the estimated useful life is the lesser of twenty years or the term of the lease and for equipment the estimated useful life is three to seven years. (K) Foreclosed real estate: Real estate acquired through, or in lieu of, loan foreclosure is initially recorded at fair value less the estimated cost to sell at the date of foreclosure which may establish a new cost basis. After foreclosure, valuations are periodically performed by management and the asset is carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations are included in other noninterest income and noninterest expenses. Losses due to the valuation of the property are included in (gain) loss on sales or write-downs of foreclosed assets. (L) Mortgage servicing rights: During 2014, the Company began retaining the right to service certain mortgage loans that it sells to secondary market investors. The retained mortgage servicing right is initially recorded at the fair value of future net cash flows expected to be realized for performing servicing activities. These mortgage servicing rights are recognized as a separate asset on the date the corresponding mortgage loan is sold. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Mortgage servicing rights were carried at amortized cost less the reserve for impairment at December 31, 2016 and 2015. Impairment losses on mortgage servicing rights are recognized to the extent by which the unamortized cost exceeds fair value. Impairment losses on mortgage servicing rights of $4,678, $194, and $0 were recognized in earnings during the years ended December 31, 2016, 2015 and 2014, respectively. Subsequent to December 31, 2016, the Company transitioned their accounting policy to account for mortgage servicing rights at fair value. The change in accounting policy did not have a material impact on the carrying value of the recorded asset. (M) Transfers of financial assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. (N) Goodwill and other intangibles: Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill impairment testing is performed annually or more frequently if events or circumstances indicate possible impairment. Goodwill is assigned to the Company’s reporting units, Banking or Mortgage as applicable. As discussed in Note 21, the Company realigned its segment reporting structure during the year ended December 31, 2016. As a result, our reporting units have been adjusted to reflect this change from geographic-based reporting units to business segment reporting units. Goodwill is evaluated for impairment by either performing a qualitative evaluation or a two-step quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If an entity does a qualitative assessment and determines that it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then goodwill of the reporting unit is not considered impaired, and it is not necessary to continue to the two-step goodwill impairment test. If the estimated implied fair value of goodwill is less than the carrying amount, an impairment loss would be recognized as noninterest expense to reduce the carrying amount to the estimated implied fair value which could be material to our operating results for any particular reporting period. No impairment was identified through the qualitative annual assessment for impairment performed as of December 31, 2016. Additionally, a quantitative assessment was performed for the year ended December 31, 2015 and no impairment was identified. Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions. They are initially measured at fair value and then amortized on a straight-line method over their estimated useful lives. (O) Income taxes: Prior to September 16, 2016, the Company was taxed under the provisions of subchapter S of the Internal Revenue Code. Under these provisions, the Company did not pay corporate federal income taxes on its taxable income but was liable for Tennessee corporate income taxes. Instead, the shareholder was liable for individual income taxes on the Company’s taxable income. The Company and the Bank file consolidated federal and state income tax returns. Unaudited pro forma amounts for income tax expense and basic and diluted earnings per share have been presented assuming the Company’s pro forma effective tax rate of 36.75% for the year ended December 31, 2016, 35.08% for the year ended December 31, 2015 and 35.63% for the year ended December 31, 2014, as if it had been a C Corporation during those periods. In addition, the unaudited pro forma results for the year ended December 31, 2016 excludes the effect of recognition of the deferred tax liability attributable to conversion of $13,181 as discussed in Note 15. Income tax expense is the total of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s policy is to recognize interest and penalties on uncertain tax positions in “Income tax expense” in the Consolidated Statements of Income. There were no amounts related to interest and penalties recognized for the years ended December 31, 2016, 2015 and 2014. (P) Long-lived assets: Premises and equipment, core deposit intangible assets, and other long-lived assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. No long-lived assets were deemed to be impaired at December 31, 2016 and 2015. (Q) Off-balance sheet financial instruments: Financial instrume |
Mergers and acquisitions
Mergers and acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Note (2)—Mergers and acquisitions: Clayton Bank and Trust and American City Bank On February 8, 2017, the Company and FirstBank entered into a Stock Purchase Agreement (the “Purchase Agreement”) with Clayton HC, Inc., a Tennessee Corporation (“Seller”), Clayton Bank and Trust, a Tennessee state bank and wholly-owned subsidiary of Seller (“CBT”), American City Bank, a Tennessee state bank and wholly-owned subsidiary of Seller (“ACB,” and together with CBT, the “Clayton Banks”), and James L. Clayton, the significant shareholder of Seller (“Clayton”). On the terms and subject to the conditions set forth in the Purchase Agreement, FirstBank has committed to purchase from Seller all of the issued and outstanding shares of the Clayton Banks (the “Stock Purchase”). Following the consummation of the Stock Purchase, the Clayton Banks will merge with and into FirstBank, with FirstBank continuing as the surviving banking corporation. The acquisition is valued at approximately $284.2 million at the date of announcement. The Clayton Banks had approximately $1,195 million in assets, $1,052 million in loans and $920 million in deposits, and 18 banking offices in Tennessee as of December 31, 2016. Consummation of the Stock Purchase is subject to, among other things, the receipt of approval by regulatory authorities. The acquisition is expected to be completed sometime in the third quarter of 2017, subject to the satisfaction of the closing conditions thereto. Northwest Georgia Bank On September 18, 2015, the Bank completed its acquisition of Northwest Georgia Bank (“NWGB”), a bank headquartered in Ringgold, Georgia, pursuant to that certain Agreement and Plan of Merger dated April 27, 2015 by and between the Bank and NWGB. Pursuant to the Agreement and Plan of Merger, NWGB was merged with and into the Bank, with the Bank as the surviving entity. Prior to the acquisition, NWGB operated six banking locations in Georgia and Tennessee. The acquisition of NWGB allowed the Company to further its strategic initiatives by expanding its geographic footprint into certain markets of Georgia and Tennessee. The Company acquired NWGB in a $1,500 cash purchase. The Company recorded a bargain purchase gain of $2,794 and a core deposit intangible asset of $4,931. The fair value of the core deposit intangible is being amortized on a straight-line basis over the estimated useful life, of approximately 10 years. For income tax purposes, the acquisition of NWGB was treated as an asset purchase. As an asset purchase for income tax purposes, the carrying value of assets and liabilities for NWGB are the same for both financial reporting and income tax purposes; therefore, no deferred taxes were recorded at the date of acquisition except for a $191 deferred tax liability recorded for the bargain purchase gain. Additionally, this treatment allows for the deductibility for income tax purposes of the core deposit intangible recorded for the NWGB merger over 15 years, net of the bargain purchase gain. In connection with the transaction, the Company incurred $3,268 and $3,543 in merger and conversion expenses during the year ended December 31, 2016 and 2015, respectively. The following table summarizes the final allocation of purchase price to assets and liabilities acquired in connection with the merger with NWGB based on estimated fair value on September 18, 2015. Final Allocation of Purchase Price for Northwest Georgia Bank: Total cash purchase price $ 1,500 Net assets acquired: Stockholders' equity at September 18, 2015 $ 6,478 Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed: Securities 535 Loans, net of the reversal of NWGB's allowance for loan losses of $4,383 (8,024 ) Premises and equipment 3,731 Core deposits intangible 4,931 Foreclosed real estate (1,922 ) Other assets (264 ) Deposits (302 ) FHLB funds purchased (378 ) Other liabilities (491 ) Total net fair value adjustments 4,294 Bargain purchase gain (1) $ 2,794 (1) The bargain purchase gain resulting from the merger has been recognized in the Banking operating segment during the year ended December 31, 2015. The following table summarizes the estimated fair value of assets acquired and liabilities assumed at acquisition date in connection with the merger with NWGB. Cash and cash equivalents $ 25,495 Securities available-for-sale 134,278 Loans 78,565 Premises and equipment 15,343 Intangible assets 4,931 Foreclosed real estate 5,002 Other assets 8,735 Total Assets $ 272,349 Deposits $ 246,216 Borrowings 20,378 Other liabilities 1,461 Total Liabilities $ 268,055 Purchase price 1,500 Bargain purchase gain $ 2,794 The Company finalized purchase accounting surrounding the NWGB acquisition and closed the measurement period as of December 31, 2015. The Company also elected to early adopt ASU 2015-16, “ Simplifying the Accounting for Measurement Period Adjustments The following table presents the fair value of loans acquired from NWGB as of the September 18, 2015 acquisition date: September 18, 2015 Contractually-required principal and interest $ 91,079 Nonaccretable difference (8,578 ) Cash flows expected to be collected 82,501 Accretable yield (3,936 ) Fair value $ 78,565 The following unaudited pro forma combined condensed consolidated financial information presents the results of operations for the year ended December 31, 2015 and 2014 of the Company as though the merger with NWGB had been completed as of January 1, 2014. The unaudited estimated pro forma information combines the historical results of NWGB with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2014. The pro forma information does not include the effect of any cost-saving or revenue-enhancing strategies. Year ended December 31, 2015 Year ended December 31, 2014 Interest income $ 108,857 $ 104,055 Interest expense 9,631 10,663 Net interest income 99,226 93,392 Provision for loan losses (3,064 ) (2,404 ) Noninterest income 91,776 54,131 Noninterest expense 145,060 117,473 Income before income taxes 49,006 32,454 Income taxes 2,964 2,296 Net income $ 46,042 $ 30,158 Earnings per share Basic $ 2.68 $ 1.76 Diluted $ 2.68 $ 1.76 |
Cash and Cash Equivalents Conce
Cash and Cash Equivalents Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Cash and Cash Equivalents Concentrations | Note (3)—Cash and cash equivalents concentrations: As of December 31, 2016 and 2015, the Bank and its subsidiaries had concentrations of credit risk with financial institutions in the form of correspondent bank accounts which are included in cash and cash equivalents and interest bearing deposits. Correspondent bank balances are maintained for check clearing and other services. The Bank had amounts due from their correspondent institutions at December 31, 2016 and 2015, as follows: Bank Name 2016 2015 First Tennessee Bank, N.A. $ 26,381 $ 32,497 Federal Reserve Bank 61,623 20,460 JP Morgan Chase 2,272 4,596 Federal Home Loan Bank of Cincinnati 11,409 3,368 Fifth Third Bank 1,598 879 Compass Bank 987 684 Zions Bank 501 500 Columbus Bank and Trust 1,062 444 Servis First Bank 350 250 SunTrust bank 232 232 PNC Bank 213 219 First National Bankers Bank 200 200 $ 106,828 $ 64,329 Interest is earned on balances at the Federal Reserve Bank and at the Federal Home Loan Bank. |
Investment securities
Investment securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Investment securities | Note (4)—Investment securities: The amortized cost of securities and their fair values at December 31, 2016 and 2015 are shown below: December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 998 $ — $ (13 ) $ 985 Mortgage-backed securities - residential 450,874 939 (7,905 ) 443,908 Municipals, tax exempt 116,034 3,003 (2,114 ) 116,923 Treasury securities 11,809 — (52 ) 11,757 Total debt securities 579,715 3,942 (10,084 ) 573,573 Equity securities 8,744 1 (135 ) 8,610 Total securities available-for-sale $ 588,459 $ 3,943 $ (10,219 ) $ 582,183 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 34,161 $ — $ (353 ) $ 33,808 Mortgage-backed securities - residential 524,141 3,675 (5,443 ) 522,373 Municipals, tax exempt 74,945 4,892 — 79,837 Treasury securities 4,507 — (22 ) 4,485 Total debt securities 637,754 8,567 (5,818 ) 640,503 Equity securities 8,971 3 (90 ) 8,884 Total securities available-for-sale $ 646,725 $ 8,570 $ (5,908 ) $ 649,387 Securities pledged at December 31, 2016 and 2015 had a carrying amount of $390,814 and $525,253, respectively, and were pledged to secure Federal Home Loan Bank advances, a Federal Reserve Bank line of credit, public deposits and repurchase agreements. The amortized cost and fair value of debt securities by contractual maturity at December 31, 2016 and 2015 are shown below (in thousands). Maturities may differ from contractual maturities in mortgage-backed securities because the mortgage underlying the security may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. Years Ended December 31, 2016 2015 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 9,290 $ 9,352 $ 6,849 $ 6,886 Due in one to five 25,520 26,340 44,108 44,358 Due in five to ten years 31,122 32,248 29,964 31,927 Due in over ten years 62,909 61,725 32,692 34,959 128,841 129,665 113,613 118,130 Mortgage-backed securities - residential 450,874 443,908 524,141 522,373 $ 579,715 $ 573,573 $ 637,754 $ 640,503 Sales of available-for-sale securities were as follows: Years Ended December 31, 2016 2015 2014 Proceeds from sales $ 271,148 $ 194,611 $ 68,900 Gross realized gains 4,755 1,844 2,000 Gross realized losses 348 — — The following tables show gross unrealized losses at December 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Year ended December 31, 2016 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 985 $ 13 $ — $ — $ 985 $ 13 Mortgage-backed securities - residential 390,595 7,230 19,073 675 409,668 7,905 Municipals, tax exempt 43,132 2,114 — — 43,132 2,114 Treasury securities 10,256 52 — — 10,256 $ 52 Total debt securities 444,968 9,409 19,073 675 464,041 10,084 Equity securities — — 3,126 135 3,126 135 $ 444,968 $ 9,409 $ 22,199 $ 810 $ 467,167 $ 10,219 Year ended December 31, 2015 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 15,887 $ 124 $ 17,921 $ 229 $ 33,808 $ 353 Mortgage-backed securities - residential 219,756 1,778 121,362 3,665 341,118 5,443 Municipals, tax exempt 4,485 22 — — 4,485 22 Total debt securities 240,128 1,924 139,283 3,894 379,411 5,818 Equity securities — — 1,583 90 1,583 90 $ 240,128 $ 1,924 $ 140,866 $ 3,984 $ 380,994 $ 5,908 As of December 31, 2016 and 2015, the Company’s securities portfolio consisted of 329 and 274 securities, 151 and 64 of which were in an unrealized loss position, respectively. The Company evaluates securities with unrealized losses for other-than-temporary impairment (“OTTI”), and the Company recorded no OTTI for the years ended December 31, 2016, 2015 and 2014. The unrealized losses associated with these investment securities are primarily driven by interest rates and are not due to the quality of the securities. For debt securities, the Company currently does not intend to sell those investments with unrealized losses, and it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. For equity securities, the Company has evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment and based on that evaluation has the ability and intent to hold these investments until a recovery of fair value. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans and allowance for loan losses | Note (5)—Loans and allowance for loan losses: Loans outstanding at December 31, 2016 and 2015, by major lending classification are as follows: December 31, 2016 2015 Commercial and industrial $ 386,233 $ 318,791 Construction 245,905 238,170 Residential real estate: 1-to-4 family mortgage 294,924 290,704 Residential line of credit 177,190 171,526 Multi-family mortgage 44,977 59,510 Commercial real estate: Owner occupied 357,346 337,664 Non-owner occupied 267,902 207,871 Consumer and other 74,307 77,627 Gross loans 1,848,784 1,701,863 Less: Allowance for loan losses (21,747 ) (24,460 ) Net loans $ 1,827,037 $ 1,677,403 As of December 31, 2016 and 2015, $525,180 and $26,089, respectively, of 1-to-4 family mortgage loans and loans held for sale were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line. As of December 31, 2016 and 2015, $40,537 and $43,825, respectively, of multi-family mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line. The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the years December 31, 2016, 2015 and 2014: Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2016 Beginning balance - December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Provision for loan losses 212 (417 ) (882 ) (630 ) 193 (271 ) (271 ) 587 (1,479 ) Recoveries of loans previously charged-off 524 216 127 174 — 140 195 240 1,616 Loans charged off (562 ) (2 ) (224 ) (132 ) — (249 ) (527 ) (1,154 ) (2,850 ) Ending balance- December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2015 Beginning balance - December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 Provision for loan losses (624 ) 149 (1,521 ) (645 ) 127 (1,366 ) (307 ) 1,123 (3,064 ) Recoveries of loans previously charged-off 112 1,354 161 286 — 35 342 548 2,838 Loans charged off (953 ) (81 ) (828 ) (230 ) — (1,062 ) (54 ) (1,136 ) (4,344 ) Ending balance- December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2014 Beginning balance - December 31, 2013 $ 6,756 $ 5,033 $ 7,211 $ 2,775 $ 342 $ 5,659 $ 3,438 $ 1,139 $ 32,353 Provision for loan losses 748 (1,559 ) 417 311 (3,223 ) 942 (357 ) 5 (2,716 ) Recoveries of loans previously charged-off 610 539 222 166 3,065 162 568 422 5,754 Loans charged off (1,514 ) (292 ) (1,486 ) (462 ) — (688 ) (1,008 ) (911 ) (6,361 ) Ending balance- December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment and loans collectively evaluated for impairment as of December 31, 2016, 2015 and 2014: December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 135 $ — $ 23 $ — $ — $ 113 $ 242 $ — $ 513 Collectively evaluated for impairment 5,174 4,940 3,174 1,613 504 3,189 1,777 863 21,234 Ending balance- December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 December 31, 2015 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 89 $ 5 $ 66 $ — $ — $ 74 $ 739 $ — $ 973 Collectively evaluated for impairment 5,046 5,138 4,110 2,201 311 3,608 1,883 1,190 23,487 Ending balance- December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 December 31, 2014 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 892 $ 122 $ 458 $ — $ 80 $ 373 $ 900 $ — $ 2,825 Collectively evaluated for impairment 5,708 3,599 5,906 2,790 104 5,702 1,741 655 26,205 Ending balance- December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment and loans collectively evaluated for impairment as of December 31, 2016, 2015 and 2014: December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,476 $ 2,686 $ 2,471 $ 311 $ 1,027 $ 2,752 $ 2,201 $ 27 $ 12,951 Collectively evaluated for impairment 384,279 238,900 290,346 176,879 43,922 350,812 260,361 74,276 1,819,775 Acquired with deteriorated credit quality 478 4,319 2,107 — 28 3,782 5,340 4 16,058 Ending balance - December 31, 2016 $ 386,233 $ 245,905 $ 294,924 $ 177,190 $ 44,977 $ 357,346 $ 267,902 $ 74,307 $ 1,848,784 December 31, 2015 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,499 $ 2,866 $ 3,686 $ — $ 1,074 $ 3,000 $ 3,451 $ — $ 15,576 Collectively evaluated for impairment 316,418 228,445 284,190 171,526 58,400 329,569 198,741 77,623 1,664,912 Acquired with deteriorated credit quality 874 6,859 2,828 — 36 5,095 5,679 4 21,375 Ending balance- December 31, 2015 $ 318,791 $ 238,170 $ 290,704 $ 171,526 $ 59,510 $ 337,664 $ 207,871 $ 77,627 $ 1,701,863 December 31, 2014 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 2,340 $ 6,840 $ 6,633 $ — $ 1,165 $ 3,473 $ 3,314 $ 17 $ 23,782 Collectively evaluated for impairment 263,478 159,117 260,008 159,868 51,073 287,688 148,666 62,216 1,392,114 Ending balance- December 31, 2014 $ 265,818 $ 165,957 $ 266,641 $ 159,868 $ 52,238 $ 291,161 $ 151,980 $ 62,233 $ 1,415,896 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings: Watch. 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. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They 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. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table shows credit quality indicators by portfolio class at December 31, 2016 and 2015: December 31, 2016 Pass Watch Substandard Total Commercial and industrial $ 351,046 $ 31,074 $ 4,113 $ 386,233 Construction 236,588 4,612 4,705 245,905 Residential real estate: 1-to-4 family mortgage 277,948 6,945 10,031 294,924 Residential line of credit 173,011 1,875 2,304 177,190 Multi-family mortgage 43,770 152 1,055 44,977 Commercial real estate: Owner occupied 338,698 10,459 8,189 357,346 Non-owner occupied 249,877 10,273 7,752 267,902 Consumer and other 73,454 417 436 74,307 Total $ 1,744,392 $ 65,807 $ 38,585 $ 1,848,784 December 31, 2015 Pass Watch Substandard Total Commercial and industrial $ 310,997 $ 2,166 $ 5,628 $ 318,791 Construction 226,829 3,238 8,103 238,170 Residential real estate: 1-to-4 family mortgage 271,001 9,367 10,336 290,704 Residential line of credit 165,838 3,069 2,619 171,526 Multi-family mortgage 58,234 166 1,110 59,510 Commercial real estate: Owner occupied 318,221 8,789 10,654 337,664 Non-owner occupied 178,269 20,158 9,444 207,871 Consumer and other 76,515 477 635 77,627 Total $ 1,605,904 $ 47,430 $ 48,529 $ 1,701,863 Loans acquired in business combinations that exhibited at the date of acquisition evidence of deterioration of credit quality since origination are considered to be purchased credit impaired and were as follows at December 31, 2016 and 2015: December 31, 2016 2015 Commercial and industrial $ 478 $ 874 Construction 4,319 6,859 Residential real estate: 1-to-4 family mortgage 2,107 2,828 Residential line of credit — — Multi-family mortgage 28 36 Commercial real estate: Owner occupied 3,782 5,095 Non-owner occupied 5,340 5,679 Consumer and other 4 4 Total $ 16,058 $ 21,375 The following table presents the current value of loans determined to be purchased credit impaired at the time of acquisition at December 31, 2016 and 2015: December 31, 2016 2015 Contractually-required principal and interest $ 22,961 $ 31,381 Nonaccretable difference (4,459 ) (8,369 ) Cash flows expected to be collected 18,502 23,012 Accretable yield (2,444 ) (1,637 ) Carrying value $ 16,058 $ 21,375 Changes in accretable yield and nonaccretable difference of purchased loans were as follows: Accretable yield Nonaccretable Difference Purchased Credit Impaired Purchased Non-impaired Purchased Credit Impaired Purchased Non-impaired Total Balance at January 1, 2016 $ (1,637 ) $ (2,147 ) $ (8,369 ) $ (70 ) $ (12,223 ) Principal reductions/ pay-offs (3,438 ) — 3,438 — — Charge-offs — — 472 — 472 Sale of credit card portfolio — — — 70 70 Accretion 2,631 907 — — 3,538 Balance at December 31, 2016 $ (2,444 ) $ (1,240 ) $ (4,459 ) $ — $ (8,143 ) Balance at January 1, 2015 $ — $ — $ — $ — $ — Additions through acquisition (1,991 ) (1,945 ) (8,508 ) (70 ) (12,514 ) Principal reductions/ pay-offs 100 — 139 — 239 Adjustments to assumptions — (202 ) — — (202 ) Charge-offs — — — — — Sale of credit card portfolio — — — — — Accretion 254 — — — 254 Balance at December 31, 2015 $ (1,637 ) $ (2,147 ) $ (8,369 ) $ (70 ) $ (12,223 ) Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. Loans acquired with deteriorated credit quality amounting to $16,058 and $21,375, respectively, at December 31, 2016 and 2015 have been excluded from the tables below in accordance with ASC-310-10-50, Receivables- Overall- Disclosure The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2016 and 2015: December 31, 2016 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Total Commercial and industrial $ 262 $ 127 $ 1,297 $ 384,069 $ 385,755 Construction 441 17 254 240,874 241,586 Residential real estate: 1-to-4 family mortgage 3,130 697 2,289 286,701 292,817 Residential line of credit 1,139 433 601 175,017 177,190 Multi-family mortgage — — — 44,949 44,949 Commercial real estate: Owner occupied 186 — 2,007 351,371 353,564 Non-owner occupied 158 — 2,251 260,153 262,562 Consumer and other 433 55 30 73,785 74,303 Total $ 5,749 $ 1,329 $ 8,729 $ 1,816,919 $ 1,832,726 December 31, 2015 30-89 days past due 90 and accruing interest Non-accruing loans Loans current on payments and accruing interest Total Commercial and industrial $ 283 $ 73 $ 1,659 $ 315,902 $ 317,917 Construction 81 33 272 230,925 231,311 Residential real estate: 1-to-4 family mortgage 2,798 268 2,124 282,686 287,876 Residential line of credit 1,053 323 1,114 169,036 171,526 Multi-family mortgage — — — 59,474 59,474 Commercial real estate: Owner occupied 442 — 1,974 330,153 332,569 Non-owner occupied — — 3,512 198,680 202,192 Consumer and other 331 190 45 77,057 77,623 Total $ 4,988 $ 887 $ 10,700 $ 1,663,913 $ 1,680,488 Impaired loans recognized in conformity with ASC 310 at December 31, 2016 and 2015, segregated by class, were as follows: December 31, 2016 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 854 $ 854 $ 135 Construction — — — Residential real estate: 1-to-4 family mortgage 103 369 23 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 635 654 113 Non-owner occupied 1,151 1,678 242 Consumer and other 1 1 — Total $ 2,744 $ 3,556 $ 513 With no related allowance recorded Commercial and industrial $ 622 $ 746 $ — Construction 2,686 2,694 — Residential real estate: 1-to-4 family mortgage 2,368 2,370 — Residential line of credit 311 321 — Multi-family mortgage 1,027 1,027 — Commercial real estate: Owner occupied 2,117 3,205 — Non-owner occupied 1,050 1,781 — Consumer and other 26 26 — Total $ 10,207 $ 12,170 $ — Total impaired loans $ 12,951 $ 15,726 $ 513 December 31, 2015 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 1,133 $ 1,133 $ 89 Construction 308 308 5 Residential real estate: 1-to-4 family mortgage 3,397 3,398 66 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 2,876 2,996 74 Non-owner occupied 2,402 2,402 739 Consumer and other — — — Total $ 10,116 $ 10,237 $ 973 With no related allowance recorded: Commercial and industrial $ 366 $ 993 $ — Construction 2,558 2,558 — Residential real estate: 1-to-4 family mortgage 289 289 — Residential line of credit — — — Multi-family mortgage 1,074 1,074 — Commercial real estate: Owner occupied 123 229 — Non-owner occupied 1,050 1,781 — Consumer and other — — — Total $ 5,460 $ 6,924 $ — Total impaired loans $ 15,576 $ 17,161 $ 973 December 31, 2016 2015 2014 Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 994 $ 17 $ 1,269 $ 22 $ 1,551 $ 35 Construction 154 — 517 3 3,175 — Residential real estate: 1-to-4 family mortgage 1,750 1 2,345 199 3,971 29 Residential line of credit — — — — — — Multi-family mortgage — — 468 — 974 — Commercial real estate: Owner occupied 1,756 25 1,938 95 3,716 22 Non-owner occupied 1,777 — 3,039 — 4,483 — Consumer and other 1 — — — — — Total $ 6,432 $ 43 $ 9,576 $ 319 $ 17,870 $ 86 With no related allowance recorded Commercial and industrial $ 494 $ 20 $ 660 $ — $ 559 $ 23 Construction 2,622 132 4,337 127 4,058 129 Residential real estate: 1-to-4 family mortgage 1,329 137 2,815 7 4,389 170 Residential line of credit 156 10 — — — — Multi-family mortgage 1,051 37 652 25 1,710 — Commercial real estate: Owner occupied 1,120 119 788 — 1,325 66 Non-owner occupied 1,050 — 855 — 5,458 175 Consumer and other 13 — — — — — Total $ 7,835 $ 455 $ 10,107 $ 159 $ 17,499 $ 563 Total impaired loans $ 14,267 $ 498 $ 19,683 $ 478 $ 35,369 $ 649 As of December 31, 2016 and 2015, the Company has a recorded investment in troubled debt restructurings of $8,802 and $15,289, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate. The Company has allocated $402 and $946 of specific reserves for those loans at December 31, 2016 and 2015, respectively, and has committed to lend additional amounts totaling up to $1 and $69, respectively to these customers. Of these loans, $4,265 and $5,898 were classified as non-accrual loans as of December 31, 2016 and 2015. The following table presents the financial effect of TDRs recorded during the periods indicated: Year ended December 31, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial — $ — $ — $ — Commercial real estate: Owner occupied 1 118 118 — Residential real estate: 1-4 family mortgage 5 1,819 1,819 — Consumer and other 3 29 29 — Total 9 $ 1,966 $ 1,966 $ — Year ended December 31, 2015 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 6 $ 2,301 $ 2,301 $ 86 Commercial real estate: Owner occupied 4 786 786 — Non-owner occupied 1 133 133 1 Residential real estate: 1-4 family mortgage 5 326 326 45 Total 16 $ 3,546 $ 3,546 $ 132 Year ended December 31, 2014 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,931 $ 3,931 $ — Commercial real estate: Non-owner occupied 1 1,063 1,063 — Total 3 $ 4,994 $ 4,994 $ — There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2016 and 2014. The following presents loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2015: Defaulted Charge-offs and specific reserves Residential real estate: 1-to-4 family mortgage $ 145 $ 45 Total $ 145 $ 45 A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The terms of certain other loans were modified during the years ended December 31, 2016, 2015 and 2014 that did not meet the definition of a troubled debt restructuring. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company’s internal underwriting policy. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note (6)—Premises and equipment: Premises and equipment and related accumulated depreciation as of December 31, 2016 and 2015, are as follows: 2016 2015 Land $ 18,698 $ 19,253 Premises 44,301 43,419 Furniture and fixtures 21,700 20,421 Leasehold improvements 10,515 8,276 Equipment 11,583 9,851 Construction in process 867 3,120 107,664 104,340 Less: accumulated depreciation (41,013 ) (38,448 ) Total Premises and Equipment $ 66,651 $ 65,892 Depreciation expense was $3,995, $3,283 and $3,099 for the years ended December 31, 2016, 2015 and 2014, respectively. Additionally, as of December 31, 2016 and 2015 the Company had accrued $0 and $586, respectively, related to a contractual obligation for construction costs. |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Foreclosed Real Estate | Note (7)—Foreclosed real estate: The amount reported as real estate acquired through foreclosure proceedings is carried at fair value less estimated cost to sell the property. The following table summarizes the foreclosed real estate for the year ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 11,641 $ 7,259 $ 8,796 Acquired through merger with NWGB — 5,002 — Transfers from loans 2,724 4,085 4,308 Capital improvements — 171 — Properties sold (6,696 ) (3,774 ) (4,738 ) Gain on sale of foreclosed assets 1,670 187 464 Transferred to loans (1,548 ) (785 ) (1,239 ) Write-downs and partial liquidations (388 ) (504 ) (332 ) Balance at end of period $ 7,403 $ 11,641 $ 7,259 Foreclosed residential real estate properties included in the table above totaled $2,143 and $3,187 as of December 31, 2016 and 2015, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $96 and $67 at December 31, 2016 and 2015, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note (8)—Goodwill and intangible assets: The balance in goodwill at December 31, 2016 and 2015 was $46,867 and $46,904, respectively. The change in balance for core deposit intangibles during the year is as follows: Core deposit intangible Year ended December 31, 2016 2015 2014 Beginning Balance $ 6,695 $ 3,495 $ 5,108 Addition from merger with NWGB — 4,931 — Less: amortization expense (2,132 ) (1,731 ) (1,613 ) Ending Balance $ 4,563 $ 6,695 $ 3,495 The estimated aggregate amortization expense of core deposit intangibles for each of the next five years and thereafter is as follows: Estimated aggregate amortization for year ending: December 31, 2017 $ 762 December 31, 2018 493 December 31, 2019 493 December 31, 2020 493 December 31, 2021 493 Thereafter 1,829 $ 4,563 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2016 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Mortgage servicing rights | Note (9)—Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for year ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Carrying value at beginning of period $ 29,711 $ 6,032 $ — Capitalization 46,070 26,474 6,429 Amortization (8,321 ) (2,601 ) (397 ) Sales (34,118 ) — — Gain on sale 3,406 — — Impairment (4,678 ) (194 ) — Carrying value at December 31 $ 32,070 $ 29,711 $ 6,032 The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the years ended December 31, 2016, 2015 and 2014, respectively: Year Ended December 31, 2016 2015 2014 Gross servicing income $ 12,063 $ 3,614 $ 341 Servicing expenses: Servicing asset amortization 8,321 2,601 397 Servicing asset impairment 4,678 194 — Loss on sale of mortgage servicing rights 4,447 — — Other servicing expenses 2,325 633 140 Gross servicing expenses 19,771 3,428 537 Net servicing (loss) income $ (7,708 ) $ 186 $ (196 ) Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2016 and 2015 are as follows: As of December 31, 2016 2015 Unpaid principal balance $ 2,833,958 $ 2,545,449 Weighted-average prepayment speed (CPR) 8.40 % 7.30 % Estimated impact on fair value of a 10% increase (1,256 ) (371 ) Estimated impact on fair value of a 20% increase (2,434 ) (726 ) Discount rate 9.54 % 10.14 % Estimated impact on fair value of a 100 bp increase (1,394 ) (1,201 ) Estimated impact on fair value of a 200 bp increase (2,679 ) (2,317 ) Weighted-average coupon interest rate 3.59 % 3.79 % Weighted-average servicing fee (basis points) 27 25 Weighted-average remaining maturity (in months) 328 311 In 2016, the Company sold $34,118 of mortgage servicing rights on $3.4 billion of serviced mortgage loans which the Company will continue to subservice these loans until they can be transferred. The transaction resulted in a net loss of $4,447, which is composed of the following: Year Ended December 31, 2016 Gain on sale $ 3,406 Transaction costs (2,284 ) Loss on fair value hedge on sale $ (5,569 ) Net loss on sale of mortgage servicing rights $ (4,447 ) Based on current management plans, the Company plans to retain the remaining MSRs related primarily to the retail mortgage originations within its existing footprint for marketing purposes while selling originated MSRs through various transactions in future periods. |
Other Assets and Other liabilit
Other Assets and Other liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets And Other Liabilities [Abstract] | |
Other assets and other liabilities | Note (10)—Other assets and other liabilities: Included in Other assets are: As of December 31, Other assets 2016 2015 Cash surrender value on bank owned life insurance $ 10,556 $ 10,331 Prepaid expenses 2,245 2,311 Derivatives 19,745 6,023 Other assets 18,808 8,912 Total other assets $ 51,354 $ 27,577 Included in Other liabilities are: As of December 31, Other liabilities 2016 2015 Deferred compensation $ 6,710 $ 12,343 Accrued payroll 5,987 6,343 Loan proceeds payable — 5,730 Accrued contract termination fee — 2,278 Mortgage servicing escrows 1,079 2,297 Mortgage buyback reserve 2,659 2,156 Accrued interest 632 581 Derivatives 586 369 Deferred tax liability 4,180 713 Other liabilities 36,535 11,713 Total other liabilities $ 58,368 $ 44,523 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Time Deposits [Abstract] | |
Deposits | Note (11)—Deposits: The aggregate amount of time deposits with a minimum denomination greater than $250 was $60,124 and $52,320 at December 31, 2016 and 2015, respectively. At December 31, 2016, the scheduled maturities of time deposits are as follows: Scheduled maturities of time deposits Due on or before: December 31, 2017 $ 259,383 December 31, 2018 74,097 December 31, 2019 35,736 December 31, 2020 10,300 December 31, 2021 11,515 Total $ 391,031 |
Securities Sold Under Agreement
Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2016 | |
Securities Sold Under Agreements To Repurchase [Abstract] | |
Securities sold under agreements to repurchase | Note (12)—Securities sold under agreements to repurchase: Securities sold under agreements to repurchase are secured by mortgage-backed securities with a carrying amount of $21,561 and $105,133 at December 31, 2016 and 2015, respectively. Securities sold under agreements to repurchase are financing arrangements that mature daily. Information concerning securities sold under agreements to repurchase is summarized as follows: 2016 2015 Balance at year end $ 21,561 $ 105,133 Average daily balance during the year 60,331 114,781 Average interest rate during the year 0.11 % 0.12 % Maximum month-end balance during the year 115,005 126,608 Weighted average interest rate at year-end 0.17 % 0.12 % |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Short-term borrowings | Note (13)—Short-term borrowings: The Bank currently has available from correspondent banks borrowings capacity in the form of federal fund purchases. The line with First Tennessee Bank, N.A. is for $30,000 as of December 31, 2016 and 2015 and the line with BBVA Compass Bank is for $10,000 as of December 31, 2016 and 2015. Each of these lines may be drawn for fourteen consecutive days. As of December 31, 2016 and 2015 there were no borrowings against these lines. The line with SunTrust Bank is for $15,000 and may be drawn for seven consecutive days before collateral is required. Borrowings that exceed seven days must be secured by a marketable security with a current value of at least 125% of the outstanding balance. As of December 31, 2016 and 2015, there were no borrowings against this line. The line with First National Banker’s Bank is for $10,000 and may be drawn for thirty days before collateral is required. The line with Zions Bank is for $25,000. The line with PNC Bank is for $20,000. The line with Servis FirstBank is for $15,000 for the year ended December 31, 2016 and 2015. As of December 31, 2016 and 2015, there were no borrowings against these lines. The line with Federal Home Loan Bank is for $300,000 and $150,000 as of December 31, 2016 and 2015, respectively, and is secured by qualifying one to four family and multi-family mortgages in the Bank’s loan portfolio as well as U.S. government agency securities. At December 31, 2016 and 2015, the Company had pledged investments securities of $60,371 and $85,587 and loans of $565,718 and $69,915, securing borrowings against this line of $150,000 and $18,000 as of December 31, 2016 and 2015, respectively. The Company maintained a line with the Federal Reserve Bank through the Borrower-in-Custody program in 2016. As of December 31, 2016, $1,072,118 of commercial, consumer, construction, commercial real estate, home equity lines of credit and agricultural loans were pledged to the Federal Reserve Bank through the Borrower-in-Custody program securing a line of credit of $765,107. The Company was not participating in the Borrower-in-Custody program at December 31, 2015. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Note (14)—Long-term debt: As of December 31, 2015 the Company had three subordinated notes payable with the shareholder of the Company. The first note for $775 carried an annual rate equal to the Prime Rate less 100 basis points adjusting on January 10 of each year. The effective rate on the first note is 2.25% as of December 31, 2016 and 2015. The second note for $3,300 carried a quarterly rate equal to the 30 day LIBOR rate plus 200 basis points. The rate in effect at December 31, 2015 is 2.24%, for the second note. The third note for $6,000 carried a quarterly rate equal to the 90 day LIBOR rate plus 170 basis points. The effective rate on the third note is 2.12% as of December 31, 2015. These three notes were amended on December 31, 2006 to specify a maturity date of December 31, 2012. On September 21, 2016 these notes were paid off in full with proceeds from the initial public offering. The Bank had a total borrowing capacity of $476,562 and $125,476 at the Federal Home Loan Bank of Cincinnati at December 31, 2016 and 2015, respectively. The terms of the borrowings were subject to market rates at the time of the advances and contain maturities of one to twenty years. Any advances from this line would be secured by qualifying one to four family and multi-family mortgages in the Bank’s loan portfolio as well as U.S. government agency securities. Current principals of one to four family mortgages totaling 137% and 136% of the advances at December 31, 2016 and 2015, respectively were required to secure the advances. In addition, current principals of multi-family mortgages totaling 130% and 145% of the advances at December 31, 2016 and 2015, respectively were required to secure the advances. The Bank also had investment securities of $60,371 and $85,587 pledged to the Federal Home Loan Bank at December 31, 2016 and 2015, respectively. The Bank had $13,962 of fixed rate borrowings at a weighted average rate of 3.02% outstanding at December 31, 2016. At December 31, 2015 the Bank had $15,611 of fixed rate borrowings at a weighted average rate of 3.29% outstanding. In 2003, two separate trusts formed by the Company issued $9,000 of floating rate trust preferred securities (“Trust I”) and $21,000 of floating rate trust preferred securities (“Trust II”), respectively, as part of a pooled offering of such securities. The Company issued junior subordinated debentures of $9,280, which included proceeds of common securities purchased by the Company of $280, and junior subordinated debentures of $21,650, which included proceeds of common securities of $650. Both issuances were to the trusts in exchange for the proceeds of the securities offerings, which represent the sole asset of the trusts. Trust I pays interest quarterly based upon the 3-month LIBOR plus 3.25%. Trust II pays interest quarterly based upon the 3-month LIBOR plus 3.15%. Rates for the two issues at December 31, 2016, were 4.25% and 4.15%, respectively. Rates for the two issues at December 31, 2015, were 3.67% and 3.57%, respectively. The Company may redeem the first junior subordinated debenture listed, in whole or in part, on any distribution payment date within 120 days of the occurrence of a special event, at the redemption price. The Company may redeem the second junior subordinated debentures listed, in whole or in part, any time after June 26, 2008, on any distribution payment date, at the redemption price. The junior subordinated debentures must be redeemed no later than 2033. Maturities of long-term debt as of December 31, 2016 are as follows: FHLB Junior Subordinated debt Total Due on or before: December 31, 2017 $ 253 $ — $ 253 December 31, 2018 10,009 — 10,009 December 31, 2019 403 — 403 December 31, 2020 223 — 223 December 31, 2021 581 — 581 Due thereafter 2,493 30,930 33,423 Total $ 13,962 $ 30,930 $ 44,892 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note (15)—Income taxes: In connection with the initial public offering, as discussed in Note 1, the Company terminated its S-Corporation status and became a taxable entity (“C Corporation”) on September 16, 2016. As such, any periods prior to September 16, 2016 will only reflect an effective state income tax rate. The reported income tax expense for the year ended December 31, 2016 reflects the increase in the deferred tax net liability of $13,181 from the conversion in the taxable status. The deferred tax net liability is the result of timing differences in the recognition of income/deductions for generally accepted accounting principles (“GAAP”) and tax purposes. The consolidated statements of income present unaudited pro forma statements of income for the year to date and for prior year periods. Allocation of federal and state income taxes between current and deferred portions is as follows: For the year ended December 31, 2016 2015 2014 Current $ 12,476 $ 1,321 $ 1,427 Deferred 9,257 1,647 842 Total $ 21,733 $ 2,968 $ 2,269 Federal income tax expense for the year ended December 31, 2016, 2015 and 2014 differs from the statutory federal rate of 35% due to the following: For the year ended December 31, 2016 2015 2014 Federal taxes calculated at statutory rate $ 5,061 $ — $ — Increase (decrease) resulting from: State taxes, net of federal benefit 3,664 2,956 2,258 Conversion as of September 16, 2016 to C Corporation 13,181 — — Other (173 ) 12 11 Income tax expense, as reported $ 21,733 $ 2,968 $ 2,269 The components of the net deferred tax liability at December 31, 2016 and 2015, are as follows: For the year ended December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 8,516 $ 1,565 Amortization of core deposit intangible 996 107 Compensation related 7,552 1,120 Unrealized loss on securities 2,462 — Other 2,430 39 Subtotal 21,956 2,831 Deferred tax liabilities: FHLB stock dividends (827 ) (135 ) Depreciation (6,548 ) (661 ) Unrealized gain on securities — (205 ) Mortgage servicing rights (12,558 ) (1,902 ) Other (6,203 ) (641 ) Subtotal (26,136 ) (3,544 ) Net deferred tax liability $ (4,180 ) $ (713 ) In recording the impact of the conversion to a C Corporation, the Company recorded a deferred income tax expense of $2,955 related to the unrealized gain on available for sale securities through the income statement in accordance with ASC 740-20-45-8; therefore, the amount shown in other comprehensive income has not been reduced by the above expense. This difference will remain in OCI until the underlying securities are sold or mature in accordance with the portfolio approach allowed under ASC 740. Tax periods for all fiscal years after 2012 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject. In connection with our initial public offering, the Company entered into a tax sharing agreement with Mr. Ayers, dated September 15, 2016. In the event of an adjustment to taxable income for periods prior to termination of our S Corporation status, it is possible that Mr. Ayers would be liable for Federal or state income taxes for those prior periods. Pursuant to the agreement, upon our filing of any tax return (amended or otherwise), in the event of any restatement of our taxable income or pursuant to a determination by, or a settlement with, a taxing authority, for any period during which we were an S Corporation, we may be required to make a payment to Mr. Ayers in an amount equal to Mr. Ayers’ incremental tax liability, which amount may be material. |
Dividend Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Restrictions On Dividends Loans And Advances Disclosure [Abstract] | |
Dividend Restrictions | Note (16)—Dividend restrictions: Due to regulations of the Tennessee Department of Financial Institutions (“TDFI”), the Bank may not declare dividends in any calendar year that exceeds the total of its net income of that year combined with its retained net income of the preceding two years without the prior approval of the TDFI Commissioner. Based upon this regulation, $66,180 and $54,537 was available for payment of dividends without such prior approval at December 31, 2016 and 2015, respectively. In addition, dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. For the years ended December 31, 2016, 2015 and 2014 the Bank declared dividends to the Company in the amounts of $69,300, $23,600 and $16,600, respectively, which was then paid to the Company’s shareholder. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note (17)—Commitments and contingencies: Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Year Ended December 31, 2016 2015 Commitments to extend credit, excluding interest rate lock commitments $ 726,122 $ 554,274 Letters of credit 22,547 20,338 Balance at end of period $ 748,669 $ 574,612 Commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present: 2017 $ 2,994 2018 2,530 2019 2,195 2020 1,897 2021 1,694 Thereafter 6,589 Total $ 17,899 Rent expense for the years ended December 31, 2016, 2015 and 2014, was $3,904, $3,750 and $3,085, respectively. In connection with the sale of mortgage loans to third party investors, the Bank makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Bank to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $9 and $47 for year ended December 31, 2016 and 2015, respectively. The Bank has established a reserve associated with loan repurchases. This reserve is recorded in accrued expenses and other liabilities on the consolidated balance sheet. The following table summarizes the activity in the repurchase reserve: Year Ended December 31, 2016 2015 Balance at beginning of period $ 2,156 $ 828 Provision for loan repurchases or indemnifications 512 1,375 Recoveries on previous losses 9 — Losses on loans repurchased or indemnified (18 ) (47) Balance at end of period $ 2,659 $ 2,156 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note (18)—Derivatives: The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as the exposure for its customers. Derivative financial instruments are included in the Consolidated Balance Sheets line item “Other assets” or “Other liabilities” at fair value in accordance with ASC 815, “ Derivatives and Hedging The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Under such commitments, interest rates for a mortgage loan are typically locked in for up to forty-five days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s Consolidated Balance Sheets. The notional amount of commitments to fund fixed-rate mortgage loans was $532,920 and $263,395 at December 31, 2016 and 2015, respectively. The Company also enters into mandatory delivery forward commitments to sell residential mortgage loans to secondary market investors. The notional amount of commitments to sell residential mortgage loans to secondary market investors was $829,000 and $445,000 at December 31, 2016 and 2015, respectively. Gains and losses arising from changes in the valuation of the commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income. The Company has entered into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with these customer contracts, the Company enters into an offsetting derivative contract position. The Company manages its credit risk, or potential risk of default by its commercial customers, through credit limit approval and monitoring procedures. At December 31, 2016 and 2015, the Company had notional amounts of $22,243 and $4,409, respectively, on interest rate contracts with corporate customers and $22,243 and $4,409, respectively, in offsetting interest rate contracts with other financial institutions to mitigate the Company’s rate exposure on its corporate customers’ contracts and certain fixed-rate loans. The fair value on the swaps was $586 and $(369) at December 31, 2016 and 2015, respectively. During the year ended December 31, 2016, the Company entered into agreements to sell $3,370,396 of serviced mortgage loans. As part of these transactions, the Company entered into a fair value hedge that is designated as a hedging instrument to protect against changes in the fair value of the related mortgage servicing rights that is attributable to interest rate volatility. The Company recognized a loss of $5,569 during the year ended December 31, 2016 related to the hedging of these sales transactions. Certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Balance Sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. The Company has not elected to offset such financial instruments in the Consolidated Balance Sheets. The following table provides details on the Company’s derivative financial instruments as of the dates presented: Balance Sheet Classification Fair Value At December 31, 2016 2015 Derivative assets: Not designated as hedging: Interest rate swaps Other Assets $ 586 $ 369 Forward commitments Other Assets 12,731 61 Interest rate-lock commitments Other Assets 6,428 5,593 Total $ 19,745 $ 6,023 Derivative liabilities: Not designated as hedging: Interest rate swaps Other Liabilities $ 586 $ 369 Forward commitments Other Liabilities — — Total $ 586 $ 369 Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows: Year Ended December 31, 2016 2015 2014 Derivatives not designated as hedging instruments: Interest rate lock commitments: Included in mortgage banking income $ 835 $ 2,073 $ 2,535 Forward commitments: Included in mortgage banking income 10,497 (3,600 ) (9,029 ) Derivatives designated as hedging instruments: Fair value hedge Included in loss on sale of mortgage servicing rights (5,569 ) — — Total $ 5,763 $ (1,527 ) $ (6,494 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Note (19)—Fair value of financial instruments: ASC 820-10 establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at 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 for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and non-recurring basis using the following methods and assumptions: Available-for-sale securities—Available-for-sale securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the pricing relationship or correlation among other benchmark quoted securities. Available-for-sale securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high risk securities. Loans held for sale—Loans held for sale are carried at fair value. If fair value is used, it is determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. Derivatives—The fair value of the interest rate swaps are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. Fair value of commitments is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. These financial instruments are classified as Level 2. Foreclosed real estate—Foreclosed real estate (“REO”) is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations. REO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights—Servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. Mortgage servicing rights are disclosed as level 3. Impaired loans—Loans considered impaired under FASB ASC 310, Receivables, are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Fair value adjustments for impaired loans are recorded on a non-recurring basis as either partial write downs based on observable market prices or current appraisal of the collateral. Impaired loans are classified as Level 3. The following methods were used to estimate the fair value of the Company’s financial instruments which were not previously presented. Cash and cash equivalents—Cash and cash equivalents consist of cash and due from banks with other financial institutions and federal funds sold. The carrying amount reported in the consolidated balance sheets approximates the fair value based upon the short-term nature of these assets. Also included are interest-bearing deposits in financial institutions. Interest bearing deposits in financial institutions consist of interest bearing accounts at the Federal Reserve Bank and Federal Home Loan Bank. The carrying value reported in the consolidated balance sheets approximates the fair value based upon the short-term nature of the assets. Federal Home Loan Bank stock—The carrying value of Federal Home Loan Bank stock reported in the consolidated balance sheets approximates the fair value as the stock is redeemable at the carrying value. Loans—For variable rate loans that re-price frequently and with no significant change in credit risk, fair values are based upon carrying values. Fixed rate loan fair values are estimated using a discounted cash flow analysis based upon interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits—The fair value disclosed for demand deposits (both interest bearing and noninterest bearing) and savings deposits are equal to the amount payable on demand as of the reporting date. The fair value of the time deposits is estimated using a discounted cash flow method based upon current rates for similar types of accounts. Short term borrowings—The fair value of the lines of credit which represent federal funds purchased approximate the carrying value of the amounts reported on the balance sheet due to the short-term nature of these liabilities. Securities sold under agreement to repurchase—The fair value of the securities sold under agreement to repurchase approximate the carrying value of the amounts reported on the balance sheet due to the short-term nature of these liabilities. Long-term debt—The fair value of long-term debt is determined using discounted cash flows using current rates. Accrued interest payable and receivable – The carrying amounts of accrued interest approximate fair value. The estimated fair values of the Company’s financial instruments are as follows: Fair Value December 31, 2016 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 136,327 $ 136,327 $ — $ — $ 136,327 Available-for-sale securities 582,183 — 577,634 4,549 582,183 Federal Home Loan Bank Stock 7,743 — — 7,743 7,743 Loans, net 1,827,037 — 1,822,054 1,281 1,823,335 Loans held for sale 507,442 — 507,442 — 507,442 Interest receivable 7,241 — 7,241 — 7,241 Mortgage servicing rights, net 32,070 — — 32,070 32,070 Derivatives 19,745 — 19,745 — 19,745 Financial liabilities: Deposits: Without stated maturities $ 2,280,531 $ 2,280,531 $ — $ — $ 2,280,531 With stated maturities 391,031 — 390,484 — 390,484 Securities sold under agreement to repurchase 21,561 21,561 — — 21,561 Short term borrowings 150,000 150,000 — — 150,000 Interest payable 620 237 383 — 620 Long-term debt 44,892 — 43,994 — 43,994 Derivatives 586 — 586 — 586 Fair Value December 31, 2015 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 97,723 $ 97,723 $ — $ — $ 97,723 Available-for-sale securities 649,387 — 644,531 4,856 649,387 Federal Home Loan Bank Stock 6,528 — — 6,528 6,528 Loans, net 1,677,403 — 1,638,506 36,951 1,675,457 Loans held for sale 273,196 — 273,196 — 273,196 Interest receivable 6,763 — 6,763 — 6,763 Mortgage servicing rights, net 29,711 — — 29,711 29,711 Derivatives 6,023 — 6,023 — 6,023 Financial liabilities: Deposits: Without stated maturities $ 2,112,915 $ 2,112,915 $ — $ — $ 2,112,915 With stated maturities 325,559 — 323,624 — 323,624 Securities sold under agreement to repurchase 105,133 105,133 — — 105,133 Short term borrowings 18,000 18,000 — — 18,000 Interest payable 550 244 306 — 550 Long-term debt 56,616 — 55,484 — 55,484 Derivatives 369 — 369 — 369 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 985 $ — $ 985 Mortgage-backed securities — 443,908 — 443,908 Municipals, tax-exempt — 116,923 — 116,923 Treasury securities — 11,757 — 11,757 Equity securities — 4,061 4,549 8,610 Total $ — $ 577,634 $ 4,549 $ 582,183 Loans held for sale — 507,442 — 507,442 Derivatives — 19,745 — 19,745 Financial Liabilities: Derivatives $ — $ 586 $ — $ 586 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Foreclosed assets $ — $ — $ 2,315 $ 2,315 Mortgage servicing rights — — 32,070 32,070 Impaired loans: Commercial and industrial — — 542 542 Commercial real estate: Owner occupied — — 635 635 Non-owner occupied — — — — Residential real estate: 1-4 family mortgage — — 103 103 Residential line of credit — — — — Consumer and other — — 1 1 Total $ — $ — $ 1,281 $ 1,281 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2015 are presented in the following tables: At December 31, 2015 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 33,808 $ — $ 33,808 Mortgage-backed securities — 522,373 — 522,373 Municipals, tax-exempt — 79,837 — 79,837 Treasury securities — 4,485 — 4,485 Equity securities — 4,028 4,856 8,884 Total $ — $ 644,531 $ 4,856 $ 649,387 Loans held for sale — 273,196 — 273,196 Derivatives — 6,023 — 6,023 Financial Liabilities: Derivatives $ — $ 369 $ — $ 369 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2015 are presented in the following tables: At December 31, 2015 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Foreclosed assets $ — $ — $ 6,275 $ 6,275 Mortgage servicing rights — — 29,711 29,711 Impaired Loans: Commercial and industrial — — 2,007 2,007 Commercial real estate: Owner occupied — — 6,493 6,493 Non-owner occupied — — 7,572 7,572 Construction — — 6,896 6,896 Residential real estate: 1-4 family mortgage — — 6,127 6,127 Multifamily — — 36 36 Consumer and other — — 4 4 Total $ — $ — $ 29,135 $ 29,135 There were no transfers between Level 1, 2 or 3 during the periods presented. The following table provides a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the year ended December 31, 2016 and 2015: Available-for-sale securities December 31, 2016 2015 Balance at beginning of period $ 4,856 $ 4,688 Realized gains included in net income — — Unrealized gains included in other comprehensive income — — Purchases 20 168 Capital distribution (327 ) — Balance at end of period $ 4,549 $ 4,856 The fair value of certain of the Company’s equity securities are determined from information derived from external parties that calculate discounted cash flows using swap and LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk and optionality. When available, broker quotes are used to validate the model. Industry research reports as well as assumptions about specific-issuer defaults and deferrals are reviewed and incorporated into the calculations. There is no established market for the Company’s equity securities, and as such, the Company has estimated that historical costs approximates market value. The following table presents information as of December 31, 2016 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 1,281 Appraised value of collateral Discount for comparable sales 0%-30% Foreclosed assets $ 2,315 Appraised value of property less costs to sell Discount for costs to sell 0%-10% Mortgage servicing rights, net $ 32,070 Discounted cash flows See Note 9 See Note 9 The following table presents information as of December 31, 2015 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 29,135 Appraised value of collateral Discount for comparable sales 0%-30% Foreclosed assets $ 6,275 Appraised value of property less costs to sell Discount for costs to sell 0%-46% Mortgage servicing rights, net $ 29,711 Discounted cash flows See Note 9 See Note 9 Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Fair value option The Company elected to measure all loans originated for sale at fair value under the fair value option as permitted under ASC 825. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. Net (losses) gains of $(2,289) and $2,257 resulting from fair value changes of the mortgage loans were recorded in mortgage banking income during the year ended December 31, 2016 and 2015, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both loans held for sale and the related derivative instruments are recorded in Mortgage Banking Income in the Consolidated Statements of Income. The Company’s valuation of loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. Interest income on loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income in the Consolidated Statements of Income. The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of December 31, 2016 and 2015: December 31, 2016 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 507,442 $ 501,503 $ 5,939 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2015 Mortgage loans held for sale measured at fair value $ 273,196 $ 264,968 $ 8,228 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | Note (20)—Parent company only financial statements: As of December 31, Balance sheet 2016 2015 Assets Cash and cash equivalents (1) $ 30,993 $ 1,253 Investments 2,074 2,381 Investments in Bank subsidiary (1) 325,574 265,632 Note receivable - Bank subsidiary (1) — 6,000 Interest receivable — 31 Other assets 2,972 2,545 Goodwill 29 29 Total assets $ 361,642 $ 277,871 Liabilities and shareholders' equity Liabilities Long-term debt $ 30,930 $ 35,005 Subordinated debt — 6,000 Accrued expenses and other liabilities 214 192 Total liabilities $ 31,144 $ 41,197 Shareholders' equity Common stock $ 24,108 $ 17,180 Additional paid-in capital 213,480 94,544 Retained earnings 93,784 122,493 Accumulated other comprehensive (loss) income (874 ) 2,457 Total shareholders' equity $ 330,498 $ 236,674 Total liabilities and shareholders' equity $ 361,642 $ 277,871 (1) Eliminates in Consolidation For the years ended December 31, Income Statements 2016 2015 2014 Income Other interest income $ 33 $ 33 $ 32 Interest income from Bank subsidiary (1) 95 121 118 Gain on sale of investments 417 — — Dividend income from Bank subsidiary (1) 14,875 25,105 18,155 Earnings from Bank subsidiary (1) 26,859 23,879 15,429 Total income $ 42,279 $ 49,138 $ 33,734 Expenses Interest expense 1,393 1,298 1,278 Salaries, legal and professional fees 315 3 3 Other noninterest expense 168 59 69 Federal and state income tax benefit (188 ) (78 ) (78 ) Total expenses $ 1,688 $ 1,282 $ 1,272 Net income $ 40,591 $ 47,856 $ 32,462 (1) Eliminates in Consolidation For the years ended December 31, Statement of Cash Flows 2016 2015 2014 Operating Activities Net income $ 40,591 $ 47,856 $ 32,462 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary bank (26,859 ) (23,879 ) (15,429 ) Gain on sale of investments (417 ) — — Stock-based compensation expense 4,693 — — (Increase) decrease in other assets (427 ) 1,292 (1,449 ) Increase (decrease) in other liabilities (5,251 ) 23 1,722 Other, net 7 (1 ) (1,751 ) Net cash provided by operating activities $ 12,337 $ 25,291 $ 15,555 Investing Activities Other investments $ 724 $ 761 $ (1,024 ) Net cash provided by (used in) investing activities 724 761 (1,024 ) Financing Activities Equity contribution to Bank $ (20,000 ) $ — $ — Payment of dividends (69,300 ) (25,350 ) (14,850 ) Payment of subordinated debt (10,075 ) — — Net proceeds from sale of common stock 116,054 — — Net cash provided by (used in) financing activities $ 16,679 $ (25,350 ) $ (14,850 ) Net increase (decrease) in cash and cash equivalents 29,740 702 (319 ) Cash and Cash Equivalents at beginning of year 1,253 551 870 Cash and Cash Equivalents at end of year $ 30,993 $ 1,253 $ 551 Supplemental noncash disclosures: Conversion of cash-settled to stock-settled compensation $ 5,388 $ — $ — Forgiveness of intercompany debt $ 6,024 $ — $ — Dividends declared not paid $ — $ — $ 1,750 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note (21)—Segment reporting: The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer (“CEO”), the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company offers full-service conforming residential mortgage products, including conforming residential loans and services through the Mortgage segment utilizing mortgage offices outside of the geographic footprint of the Banking operations as well as internet delivery channels. Additionally, the Mortgage segment includes the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The residential mortgage products and services originated in our Banking footprint and related revenues and expenses are included in our Banking segment. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking. The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment. During the year ended December 31, 2016, the Company realigned its segment reporting structure to reclassify mortgage banking income and related expenses associated with retail mortgage originations within our Banking geographic footprint from the Mortgage segment to the Banking segment. This change was made to capture all of the product and service offerings for our Banking customer base within our banking geographic footprint into the Banking segment while capturing all of the mortgage banking activities outside of the banking footprint into the Mortgage segment to allow our CEO to better determine resource allocations and operating performance for each segment. As such, the tables below have been revised to reflect the reclassification for all periods presented. The following tables provides segment financial information for the years ended December 31, 2016, 2015 and 2014 follows: Year ended December 31, 2016 Banking Mortgage Consolidated Net interest income $ 112,365 $ (1,415 ) $ 110,950 Provision for loan loss (1,479 ) — (1,479 ) Mortgage banking income 25,542 92,209 117,751 Other noninterest income 26,934 — 26,934 Depreciation 3,506 489 3,995 Amortization of intangibles 2,132 — 2,132 Amortization and impairment of mortgage servicing rights — 12,999 12,999 Loss on sale of mortgage servicing rights — 4,447 4,447 Other noninterest mortgage banking expense 16,095 66,256 82,351 Other noninterest expense 88,866 — 88,866 Income before income taxes 55,721 6,603 62,324 Income tax expense 21,733 Net income 40,591 Total assets $ 2,752,773 $ 524,108 $ 3,276,881 Goodwill 46,767 100 46,867 Year ended December 31, 2015 Banking Mortgage Consolidated Net interest income $ 92,366 $ 1,506 $ 93,872 Provision for loan loss (3,070 ) 6 (3,064 ) Mortgage banking income 18,718 51,472 70,190 Other noninterest income 22,190 — 22,190 Depreciation and amortization 2,933 350 3,283 Amortization of intangibles 1,731 — 1,731 Amortization and impairment of mortgage servicing rights — 2,795 2,795 Other noninterest mortgage banking expense 13,189 42,949 56,138 Other noninterest expense 74,545 — 74,545 Income before income taxes 43,946 6,878 50,824 Income tax expense 2,968 Net income 47,856 Total assets $ 2,570,071 $ 329,349 $ 2,899,420 Goodwill 46,804 100 46,904 Year ended December 31, 2014 Banking Mortgage Consolidated Net interest income $ 83,192 $ 184 $ 83,376 Provision for loan loss (2,716 ) — (2,716 ) Mortgage banking income 8,958 22,177 31,135 Other noninterest income 19,667 — 19,667 Depreciation and amortization 2,784 315 3,099 Amortization of intangibles 1,613 — 1,613 Amortization and impairment of mortgage servicing rights — 397 397 Other noninterest mortgage banking expense 8,551 21,018 29,569 Other noninterest expense 67,485 — 67,485 Income before income taxes 34,100 631 34,731 Income tax expense 2,269 Net income 32,462 Total assets $ 2,202,978 $ 225,211 $ 2,428,189 Goodwill 46,804 100 46,904 Our Banking segment provides our Mortgage segment with a warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit had a prime interest rate of 3.75%, 3.50% and 3.25% as of December 31, 2016, 2015 and 2014, respectively. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit is recorded as interest income to our Banking segment and as interest expense to our Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit was $12,636, $8,688 and $3,647 for the |
Minimum Capital Requirements
Minimum Capital Requirements | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |
Minimum capital requirements | Note (22)—Minimum capital requirements: Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. For December 31, 2016 and 2015 Interim Final Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of December 31, 2016 and 2015, the Bank and Company met all capital adequacy requirements to which it is subject. Also, as of December 31, 2016, the most recent notification from the FDIC, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The table below includes new regulatory capital ratio requirements that became effective on January 1, 2015. Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent. Actual and required capital amounts and ratios are presented below at period-end. Actual For Minimum Capital adequacy with capital buffer To be well capitalized under action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) FB Financial Corporation $ 338,893 13.03 % $ 208,069 8.0 % $ 224,325 8.63 % N/A N/A FirstBank 304,018 11.72 % 207,521 8.0 % 223,733 8.63 % $ 259,401 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 317,146 12.19 % $ 156,101 6.0 % $ 172,362 6.63 % N/A N/A FirstBank 282,271 10.88 % 155,664 6.0 % 171,879 6.63 % $ 155,664 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 317,146 10.05 % $ 126,227 4.0 % N/A N/A N/A N/A FirstBank 282,271 8.95 % 126,155 4.0 % N/A N/A $ 157,693 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 287,146 11.04 % $ 117,043 4.5 % $ 133,299 5.13 % N/A N/A FirstBank 282,271 10.88 % 116,748 4.5 % 132,963 5.13 % $ 168,636 6.5 % Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets) FB Financial Corporation $ 246,168 11.15 % $ 176,623 8.0 % N/A N/A N/A N/A FirstBank 242,240 11.02 % 175,855 8.0 % N/A N/A $ 219,819 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 211,633 9.58 % $ 132,547 6.0 % N/A N/A N/A N/A FirstBank 211,780 9.63 % 131,950 6.0 % N/A N/A $ 131,950 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 211,633 7.64 % $ 110,803 4.0 % N/A N/A N/A N/A FirstBank 211,780 7.65 % 110,735 4.0 % N/A N/A $ 138,418 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 181,633 8.23 % $ 99,313 4.5 % N/A N/A N/A N/A FirstBank 211,780 9.63 % 98,963 4.5 % N/A N/A $ 142,946 6.5 % |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note (23)—Employee benefit plans: (A)—401(k) plan: The Bank has a 401(k) Plan (the “Plan”) whereby substantially all employees participate in the Plan. Employees may contribute the maximum amount of their eligible compensation subject to certain limits based on the federal tax laws. The Bank makes matching contributions of 25% of participant contributions not to exceed 6% of an employee’s total compensation. The Bank may also make discretionary Profit Sharing contributions. Matching and profit sharing contributions are vested equally over five years. For the years ended December 31, 2016, 2015 and 2014, the matching portions provided by the Bank to this Plan were $1,379 and $1,290 and $922 respectively. An additional discretionary contribution of 25% match was contributed in 2016, 2015 and 2014. (B)—Acquired supplemental retirement plans: In prior years, the Company assumed certain nonqualified supplemental retirement plans for certain former employees of acquired entities. At December 31, 2016 and 2015, other liabilities on the consolidated balance sheet include post-retirement benefits payable of $2,023 and $1,914, respectively, related to these plans. For the years ended December 31, 2016, 2015 and 2014, the Company recorded expense of $30, $313 and $314, respectively, related to these plans and payments to the participants were $205, $202 and $205 in 2016, 2015 and 2014, respectively. The Company also acquired single premium life insurance policies on these individuals. At December 31, 2016 and 2015, other assets on the consolidated balance sheet include $10,556 and $10,331 and reported cash value income (net of related insurance premium expense) of $181, $136 and $92 in 2016, 2015 and 2014, respectively. (C)—Deferred compensation plans and agreements: The Bank has granted awards (“EBI Units”) to certain employees pursuant to the FirstBank 2010 Equity Based Incentive Plan (the “2010 EBI Plan”), the FirstBank 2012 Equity Based Incentive Plan (the “2012 EBI Plan”) and the FirstBank Preferred Equity Based Incentive Plan (the “Preferred EBI Plan” and, together with the 2010 EBI Plan and the 2012 EBI Plan, the “EBI Plans”). Prior to the initial public offering, awards granted under EBI Plans were settled in cash only. Following the initial public offering, participants in the EBI Plans were given the one-time option to elect, for each EBI Unit vested to such participant, either (i) an amount in cash or (ii) a number of shares of Company common stock determined pursuant to a conversion formula that took into account the effect of the initial public offering. Consistent with the terms of the EBI Plans and approved by the Board of Directors, outstanding EBI Units were adjusted to reflect the 100-for-one stock split that was effectuated prior to the IPO. The Bank also has entered into a separate deferred compensation agreement with one key executive. Each plan or agreement is an unfunded general obligation of the Bank. The plans and agreements have varying vesting periods and other terms as follows: 2010 EBI Plan — Pursuant to the terms of the 2010 EBI Plan, each EBI Unit vests ratably over five years, or earlier upon a change of control, death or disability or retirement after age 65. On or shortly following the vesting date, the holder of an EBI Unit will receive an amount in cash (or, if so elected by the participant following the IPO, in stock) equal to the fair market value of a share of common stock on the December 31 immediately preceding the payment date. Prior to the IPO, fair market value was determined by dividing 7.5% of the total assets of the Bank by the total number of outstanding common stock shares of the Company. Following the IPO, EBI Units are valued based upon the Company’s stock price. Units under this plan became fully vested January, 2017. Preferred EBI Plan —The Preferred EBI Plan has the same terms and conditions as those described above for the 2010 EBI Plan, with the exception of a seven year ratable vesting period. Units under this plan became fully vested January, 2017. 2012 EBI Plan — Pursuant to the terms of the 2012 EBI Plan, each EBI Unit vests and becomes payable following the third anniversary of the date of grant, or earlier upon a change of control, death or disability or retirement after age 65. On or shortly following the vesting date, the holder of an EBI Unit will receive an amount in cash (or, if so elected by the participant following the IPO, in stock) equal to the fair market value of a share of common stock on the December 31 immediately preceding the payment date. Following the IPO, EBI Units are valued based upon the Company’s stock price. Prior to the IPO, fair market value of the Company was determined based upon the average of the sum of (a) 15 times the Company’s after-tax earnings, based on a default tax rate imposed by the Code, and (b) 1.5 times the Company’s tangible book value, defined as the consolidated equity of the Company less unrealized gains (losses) and less goodwill and intangible assets. Following the IPO, EBI Units outstanding under the 2012 EBI Plan were adjusted to prevent dilution of these EBI Units as a result of the IPO pursuant to the following conversion formula: (i) the number of EBI Units outstanding under the 2012 EBI Plan (as adjusted for the stock split), multiplied by (ii) 1.13 (determined by dividing $21.4085, the fair market value per EBI Unit as determined under the 2012 EBI Plan, by $19.00, the IPO price). Deferred compensation Agreement —Effective December 31, 2014, the Bank entered into an agreement with the Bank’s Chief Executive Officer to reward his prior service, pursuant to which he is entitled to receive a fixed lump sum cash payment equal to $3,000,000 on December 31, 2019 or the earlier occurrence of his separation of service or a change in control of the Company. On August 19, 2016, the Bank entered into an amendment to the deferred compensation agreement, pursuant to which Mr. Holmes’ deferred account is now denominated in 157,895 deferred stock units, determined by dividing $3,000,000 by $19.00 (the IPO price). The deferred stock units are convertible on a 1-for-1 basis into shares of Company common stock on the original payment date described above . Summary —At December 31, 2016 and 2015, other liabilities in the accompanying consolidated balance sheet include liabilities for these awards totaling $3,758 and $9,452, respectively. Effective September 16, 2016, $5,388 of accrued compensation was reclassified to additional paid in capital related to these elections. As of December 31, 2016, 180,447 units remain in the equity based incentive plan for those employees who elected cash settlement of EBI units. For the years ended December 31, 2016 and 2015, the Company incurred expenses related to these plans and agreements totaling $5,073 and $2,921, respectively, which is included in salaries, commissions and employee benefits in the accompanying statement of income. Additionally, payments under the plans totaled $1,601 and $2,614, respectively, for 2016 and 2015. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note (24)—Stock-Based Compensation The Company granted shares of common stock and restricted stock units in connection with its initial public offering for the benefit of employees, including its executive officers. Restricted stock unit grants are subject to time-based vesting. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements. Following the initial public offering, participants in the EBI Plans were given the option to elect conversion of their outstanding cash-settled EBI Units to stock-settled EBI Units. The following table summarizes information about stock-settled EBI Units and restricted stock units outstanding at December 31, 2016: Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance, beginning of period — $ — Conversion of deferred compensation plan (see note 23) 157,895 19.00 Conversion of equity based incentive (EBI) plans (see note 23) 125,684 19.00 Grants 1,077,066 19.00 Released and distributed (vested) (157,748 ) 19.00 Forfeited/expired (2,057 ) 19.00 Balance, end of period 1,200,840 $ 19.00 The total fair value of stock-settled EBI Units and restricted stock units vested and released was $2,997 for the year ended December 31, 2016. The compensation cost related to stock-settled EBI Units and restricted stock units (included in salaries and employee benefits) was $4,693 for the year ended December 31, 2016. As of December 31, 2016, there was $15,721 of total unrecognized compensation cost related to nonvested stock-settled EBI Units and restricted stock units which is expected to be recognized over a weighted-average period of 3.66. Employee Stock Purchase Plan: In 2016, the Company adopted an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price is 85%, with respect to the first offering period, or 95%, with respect to the current offering period, of the lower of the price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares and a participant may not purchase more than 725 shares during any offering period (and, in any event, no more than $25,000 worth of common stock in any calendar year). In 2016, 20,377 shares of common stock were issued under the ESPP. As of December 31, 2016, there were 2,479,623 shares available for issuance under the ESPP. |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note (25)—Related party transactions: (A) Loans: The Bank has made and expects to continue to make loans to the directors and executive officers of the Company and their affiliates in the ordinary course of business. In management’s opinion, these transactions with directors and executive officers were made on substantially the same terms as those prevailing at the time for comparable transactions with other unaffiliated persons and did not involve more than the normal risk. An analysis of loans to executive officers, the shareholder of the Company, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2016 $ 31,195 New loans and advances 1,933 Repayments (5,758 ) Loans outstanding at December 31, 2016 $ 27,370 Unfunded commitments to certain executive officers and directors and their associates totaled $6,838 and $4,128 at December 31, 2016 and 2015, respectively. (B) Deposits: The Bank held deposits from related parties totaling $150,373 and $68,612 as of December 31, 2016 and 2015, respectively. (C) Leases: The Bank leases various office spaces from entities related to the majority shareholder under varying terms. The Company had $158 and $180 in unamortized leasehold improvements related to these leases at December 31, 2016 and 2015, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $522, $503 and $502 for the years ended December 31, 2016, 2015 and 2014, respectively. (D) Consulting services: The Bank paid $306 for the year ended December 31, 2015 and 2014 in management consulting services to an entity owned 100% by the shareholder. The agreement was terminated effective January 1, 2016. (E) Subordinated debt: On February 12, 1996, the Company borrowed $775 from the shareholder through a term subordinated note. On August 26, 1999, the Company borrowed $3,300 from the shareholder through a term subordinated note. On June 30, 2006, the Company borrowed $6,000 from the shareholder through a term subordinated note. The total of $10,075 was repaid with cash proceeds from the sale of common stock in the initial public offering, as discussed in Note 1. The Company paid interest payments related to these subordinated debentures to the shareholder amounting to approximately $230, $211 and $237 for the year ended December 31, 2016 and 2015 and 2014, respectively. (F) Investment securities transactions: The Company holds an investment in a fund that was issued by an entity owned by one of its directors. The balance in the investment was $1,145 and $1,472 as of December 31, 2016 and 2015, respectively. The Company received capital distributions of $327 and $0 during the year ended December 31, 2016 and 2015, respectively. (G) Aviation time sharing agreement: Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by the majority shareholder. This replaces the previous agreement dated December 21, 2012. During the year ended December 31, 2016 and 2015, the Company made payments of $313 and $57, respectively, under these agreements. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent events | Note (26)—Subsequent event: The Company has evaluated subsequent events through March 31, 2017, the date these financial statements were available to be issued. As discussed in Note 2, “Mergers and acquisitions”, on February 8, 2017, the Company entered a stock purchase agreement to acquire the stock of Clayton Bank and Trust and American City Bank from Clayton HC, Inc., which is expected to close in the third quarter of 2017. There were no other subsequent events, other than what has been disclosed above, that occurred after December 31, 2016, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | (B) Basis of presentation: The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America and general banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the year then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the determination of fair value in business combinations, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the determination of the fair value of financial instruments and mortgage servicing rights. In connection with the determination of the estimated fair value of foreclosed real estate and impaired loans, management obtains independent appraisals for significant properties. The consolidated financial statements include the accounts of the Company, the Bank, and its’ wholly owned subsidiaries, FirstBank Insurance, Inc., First Holdings, Inc., RE Holdings, Inc., and Investors Title Company. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. |
Cash flows | (C) Cash flows: For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold and interest earning deposits in other financial institutions with maturities of less than 90 days at the date of purchase. These amounts are reported in the consolidated balance sheets caption “Cash and cash equivalents.” Net cash flows are reported for loan, deposit, repurchase agreements, federal funds sold, and short-term borrowings. |
Cash and cash equivalents | (D) Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash and cash equivalents. |
Investment securities | (E) Investment securities: Debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Equity securities with readily determinable fair values are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income (loss), net of applicable taxes. Interest income includes the amortization and accretion of purchase premium and discount. Premiums and discounts on securities are amortized on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. For securities in an unrealized loss position, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. When OTTI is determined to have occurred, the amount of the OTTI recognized in earnings depends on whether we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If we intend to sell the security or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the OTTI recognized in earnings is equal to the entire difference between its amortized cost basis and its fair value at the date it was determined to be OTTI. If we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before recovery of its amortized cost basis, the OTTI is separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized as a charge to earnings. The amount of the OTTI related to other factors is recognized in other comprehensive income (loss), net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings becomes the new amortized cost basis of the investment. The Company recorded no OTTI for the years ended December 31, 2016, 2015 or 2014. |
Loans held for sale | (F) Loans held for sale: Loans originated and intended for sale in the secondary market, primarily mortgage loans, are carried at fair value as permitted under the guidance in ASC 825, “Financial Instruments” (“ASC 825”). Net (losses) gains of $(2,289), $2,257 and $5,095 resulting from fair value changes of these mortgage loans were recorded in income during 2016, 2015, and 2014, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both mortgage loans held for sale and the related derivative instruments are recorded in “Mortgage banking income” in the Consolidated Statements of Income. Gains and losses are recognized in income at the time the loan is closed. These gains and losses are classified under the line item “Mortgage banking income” on the Consolidated Statements of Income. Pass through origination costs and related loan fees are also included in “Mortgage banking income”. Periodically, the Bank will transfer mortgage loans originated for sale in the secondary markets into the loan portfolio based on the overall secondary marketability of the loan based on current market conditions and the status of the loan. During 2016, 2015 and 2014, the Bank transferred approximately $18,000, $5,000 and $5,100, respectively, of residential mortgage loans into its portfolio. The loans are transferred into the portfolio at fair value at the date of transfer. |
Loans | (G) Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest is discontinued on loans past due 90 days or more unless the credit is well secured and in the process of collection. Also, a loan may be placed on nonaccrual status prior to becoming past due 90 days if management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of principal or interest is doubtful. The decision to place a loan on nonaccrual status prior to becoming past due 90 days is based on an evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors that affect the borrower’s ability to pay. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectability of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. |
Allowance for loan losses | (H) Allowance for loan losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Commercial and commercial real estate loans over $250 are individually evaluated for impairment. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Large groups of smaller balance homogeneous loans, such as consumer, residential real estate loans, commercial and commercial real estate loans less than $250 are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDRs”) and classified as impaired. TDRs are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 5 years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: Commercial and industrial loans. The Company provides a mix of variable and fixed rate commercial and industrial loans. Commercial and industrial loans are typically made to small- and medium-sized manufacturing, wholesale, retail and service businesses for working capital and operating needs and business expansions, including the purchase of capital equipment and loans made to farmers relating to their operations. Commercial and industrial loans generally include lines of credit and loans with maturities of five years or less. The loans are generally made with operating cash flows as the primary source of repayment, but may also include collateralization by inventory, accounts receivable, equipment and/or personal guarantees. The ability of the borrower to collect accounts receivable, and to turn inventory into sales are risk factors in the repayment of the loan. Construction loans. Construction loans include commercial construction, land acquisition and land development loans and single-family interim construction loans to small- and medium-sized businesses and individuals. These loans are generally secured by the land or the real property being built and are made based on our assessment of the value of the property on an as-completed basis. We expect to continue to make construction loans at a similar pace so long as demand continues and the market for and values of such properties remain stable or continue to improve in our markets. These loans can carry risk of repayment when projects incur cost overruns, have an increase in the price of building materials, encounter zoning and environmental issues, or encounter other factors that may affect the completion of a project on time and on budget. Additionally, repayment risk may be negatively impacted when the market experiences a deterioration in the value of real estate. Residential real estate 1-4 family mortgage loans . The Company’s residential real estate 1-4 family mortgage loans are primarily made with respect to and secured by single family homes, which are both owner-occupied and investor owned. The Company intends to continue to make residential 1-4 family housing loans at a similar pace, so long as housing values in our markets do not deteriorate from current prevailing levels and we are able to make such loans consistent with our current credit and underwriting standards. First lien residential 1-4 family mortgages may be affected by unemployment or underemployment and deteriorating market values of real estate. Residential line of credit loans. The Company’s residential line of credit loans are primarily revolving, open-end lines of credit secured by 1-4 residential properties. The Company intends to continue to make home equity loans if housing values in our markets do not deteriorate from current prevailing levels and we are able to make such loans consistent with our current credit and underwriting standards. Second lien residential 1-4 family mortgages may be affected by unemployment or underemployment and deteriorating market values of real estate. Multi-family residential loans. The Company’s multi-family residential loans are primarily secured by multi-family properties, such as apartments and condominium buildings. These loans may be affected by unemployment or underemployment and deteriorating market values of real estate. Commercial real estate loans . The Company’s commercial real estate owner-occupied loans include loans to finance commercial real estate owner occupied properties for various purposes including use as offices, warehouses, production facilities, health care facilities, retail centers, restaurants, churches and agricultural based facilities. Commercial real estate owner-occupied loans are typically repaid through the ongoing business operations of the borrower, and hence are dependent on the success of the underlying business for repayment and are more exposed to general economic conditions. Commercial real estate non-owner occupied loans . The Company’s commercial real estate non-owner occupied loans include loans to finance commercial real estate non-owner occupied investment properties for various purposes including use as offices, warehouses, health care facilities, hotels, mixed-use residential/commercial, retail centers, multifamily properties, assisted living facilities and agricultural based facilities. Commercial real estate non-owner occupied loans are typically repaid with the funds received from the sale of the completed property or rental proceeds from such property, and are therefore more sensitive to adverse conditions in the real estate market, which can also affected by general economic conditions. Consumer and other loans . The Company’s consumer and other loans include loans to individuals for personal, family and household purposes, including car, boat and other recreational vehicle loans and personal lines of credit. Consumer loans are generally secured by vehicles and other household goods. The collateral securing consumer loans may depreciate over time. The company seeks to minimize these risks through its underwriting standards. Other loans also include loans to states and political subdivisions in the U.S. These loans are generally subject to the risk that the borrowing municipality or political subdivision may lose a significant portion of its tax base or that the project for which the loan was made may produce inadequate revenue. |
Business combinations, accounting for acquired loans and related assets | (I) Business combinations, accounting for acquired loans and related assets: Business combinations are accounted for by applying the acquisition method in accordance with ASC 805, “Business Combinations” (“ASC 805”). Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceed the purchase price, a bargain purchase gain is recognized. Results of operations of the acquired entities are included in the Consolidated Statements of Income from the date of acquisition. Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit-impaired. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, in accordance with ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Increases in expected cash flows to be collected on these loans are recognized as an adjustment of the loan’s yield over its remaining life, while decreases in expected cash flows are recognized as an impairment. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. |
Premises and equipment | (J) Premises and equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Provisions for depreciation are computed principally on the straight-line method and are charged to occupancy expense over the estimated useful lives of the assets. Maintenance agreements are amortized to expense over the period of time covered by the agreement. Costs of major additions, replacements or improvements are capitalized while expenditures for maintenance and repairs are charged to expense as incurred. For financial statement purposes, the estimated useful life for premises is forty years, for furniture and fixtures the estimated useful life is seven to ten years, for leasehold improvements the estimated useful life is the lesser of twenty years or the term of the lease and for equipment the estimated useful life is three to seven years. |
Foreclosed real estate | (K) Foreclosed real estate: Real estate acquired through, or in lieu of, loan foreclosure is initially recorded at fair value less the estimated cost to sell at the date of foreclosure which may establish a new cost basis. After foreclosure, valuations are periodically performed by management and the asset is carried at the lower of carrying amount or fair value less costs to sell. Revenue and expenses from operations are included in other noninterest income and noninterest expenses. Losses due to the valuation of the property are included in (gain) loss on sales or write-downs of foreclosed assets. |
Mortgage servicing rights | (L) Mortgage servicing rights: During 2014, the Company began retaining the right to service certain mortgage loans that it sells to secondary market investors. The retained mortgage servicing right is initially recorded at the fair value of future net cash flows expected to be realized for performing servicing activities. These mortgage servicing rights are recognized as a separate asset on the date the corresponding mortgage loan is sold. Mortgage servicing rights are amortized in proportion to and over the period of estimated net servicing income. These servicing rights are carried at the lower of amortized cost or fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, prepayment speeds, market discount rates, servicing costs, and other factors. Mortgage servicing rights were carried at amortized cost less the reserve for impairment at December 31, 2016 and 2015. Impairment losses on mortgage servicing rights are recognized to the extent by which the unamortized cost exceeds fair value. Impairment losses on mortgage servicing rights of $4,678, $194, and $0 were recognized in earnings during the years ended December 31, 2016, 2015 and 2014, respectively. Subsequent to December 31, 2016, the Company transitioned their accounting policy to account for mortgage servicing rights at fair value. The change in accounting policy did not have a material impact on the carrying value of the recorded asset. |
Transfers of financial assets | (M) Transfers of financial assets: Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Goodwill and other intangibles | (N) Goodwill and other intangibles: Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. Goodwill impairment testing is performed annually or more frequently if events or circumstances indicate possible impairment. Goodwill is assigned to the Company’s reporting units, Banking or Mortgage as applicable. As discussed in Note 21, the Company realigned its segment reporting structure during the year ended December 31, 2016. As a result, our reporting units have been adjusted to reflect this change from geographic-based reporting units to business segment reporting units. Goodwill is evaluated for impairment by either performing a qualitative evaluation or a two-step quantitative test. The qualitative evaluation is an assessment of factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If an entity does a qualitative assessment and determines that it is not more likely than not the fair value of a reporting unit is less than its carrying amount, then goodwill of the reporting unit is not considered impaired, and it is not necessary to continue to the two-step goodwill impairment test. If the estimated implied fair value of goodwill is less than the carrying amount, an impairment loss would be recognized as noninterest expense to reduce the carrying amount to the estimated implied fair value which could be material to our operating results for any particular reporting period. No impairment was identified through the qualitative annual assessment for impairment performed as of December 31, 2016. Additionally, a quantitative assessment was performed for the year ended December 31, 2015 and no impairment was identified. Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions. They are initially measured at fair value and then amortized on a straight-line method over their estimated useful lives. |
Income taxes | (O) Income taxes: Prior to September 16, 2016, the Company was taxed under the provisions of subchapter S of the Internal Revenue Code. Under these provisions, the Company did not pay corporate federal income taxes on its taxable income but was liable for Tennessee corporate income taxes. Instead, the shareholder was liable for individual income taxes on the Company’s taxable income. The Company and the Bank file consolidated federal and state income tax returns. Unaudited pro forma amounts for income tax expense and basic and diluted earnings per share have been presented assuming the Company’s pro forma effective tax rate of 36.75% for the year ended December 31, 2016, 35.08% for the year ended December 31, 2015 and 35.63% for the year ended December 31, 2014, as if it had been a C Corporation during those periods. In addition, the unaudited pro forma results for the year ended December 31, 2016 excludes the effect of recognition of the deferred tax liability attributable to conversion of $13,181 as discussed in Note 15. Income tax expense is the total of the current year income tax due and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company’s policy is to recognize interest and penalties on uncertain tax positions in “Income tax expense” in the Consolidated Statements of Income. There were no amounts related to interest and penalties recognized for the years ended December 31, 2016, 2015 and 2014. |
Long-lived assets | (P) Long-lived assets: Premises and equipment, core deposit intangible assets, and other long-lived assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. No long-lived assets were deemed to be impaired at December 31, 2016 and 2015. |
Off-Balance sheet financial instruments | (Q) Off-balance sheet financial instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, unless considered derivatives. |
Derivative financial instruments | (R) Derivative financial instruments: All derivative financial instruments are recorded at their fair values in other assets or other liabilities in the consolidated balance sheets. If derivative financial instruments are designated as hedges of fair values, both the change in the fair value of the hedge and the hedged item are included in current earnings. If derivative financial instruments are not designated as hedges, only the change in the fair value of the derivative instrument is included in current earnings. |
Rate-lock commitments and forward loan sale contracts | (S) Rate-lock commitments and forward loan sale contracts: The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in other assets or liabilities, with changes in fair value recorded in the line item “Mortgage banking income” on the Consolidated Statements of Income. Fair value is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. The Company utilizes forward loan sale contracts and forward sales of residential mortgage-backed securities to mitigate the interest rate risk inherent in the Company’s mortgage loan pipeline and held-for-sale portfolio. Forward sale contracts are contracts for delayed delivery of mortgage loans or a group of loans pooled as mortgage-backed securities. The Company agrees to deliver on a specified future date, a specified instrument, at a specified price or yield. However, the contract may allow for cash settlement. The credit risk inherent to the Company arises from the potential inability of counterparties to meet the terms of their contracts. In the event of non-acceptance by the counterparty, the Company would be subject to the credit and inherent (or market) risk of the loans retained. Such contracts are accounted for as derivatives and, along with related fees paid to investor are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the line item “Mortgage banking income” on the Consolidated Statements of Income. Fair value is based on the estimated amounts that the Company would receive or pay to terminate the commitment at the reporting date. The Company utilizes two methods to deliver mortgage loans sold to an investor. Under a “best efforts” sales agreement, the Company enters into a sales agreement with an investor in the secondary market to sell the loan when an interest rate-lock commitment is entered into with a customer, as described above. Under a “best efforts” sales agreement, the Company is obligated to sell the mortgage loan to the investor only if the loan is closed and funded. Thus, the Company will not incur any liability to an investor if the mortgage loan commitment in the pipeline fails to close. The Company also utilizes “mandatory delivery” sales agreements. Under a mandatory delivery sales agreement, the Company commits to deliver a certain principal amount of mortgage loans to an investor at a specified price and delivery date. Penalties are paid to the investor should the Company fail to satisfy the contract. Mandatory commitments are recorded at fair value in the Company’s Consolidated Balance Sheets. Gains and losses arising from changes in the valuation of these commitments are recognized currently in earnings and are reflected under the line item “Other noninterest income” on the Consolidated Statements of Income. |
Comprehensive income (loss) | (T) Comprehensive income (loss): Comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on available-for-sale securities, net of taxes. |
Loss contingencies | (U) Loss contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. |
Securities sold under agreements to repurchase | (V) Securities sold under agreements to repurchase: The Company routinely sells securities to certain customers and then repurchases the securities the next business day. Securities sold under agreements to repurchase are reflected in the consolidated balance sheets at the amount of cash received in connection with each transaction. These are secured liabilities and are not covered by the Federal Deposit Insurance Corporation. |
Advertising expense | (W) Advertising expense: Advertising costs, including costs related to internet mortgage marketing and related costs, are expensed as incurred. For the years ended December 31, 2016, 2015 and 2014, advertising costs were $10,608, $7,866 and $2,873, respectively. |
Earnings per common share | (X) Earnings per common share: Basic earnings per common share are net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Unearned compensation plus assumed proceeds from the applicable tax benefits are used to repurchase common stock at the average market price. There were no dilutive instruments outstanding during the years 2015 and 2014; therefore, diluted net income per common share is the same as basic net income per share for these periods. The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Year Ended December 31, 2016 2015 2014 Basic earnings per share calculation: Net income $ 40,591 $ 47,856 $ 32,462 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Basic earnings per share $ 2.12 $ 2.79 $ 1.89 Diluted earnings per share: Net income $ 40,591 $ 47,856 $ 32,462 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Average diluted common shares outstanding 146,992 — — Weighted-average diluted shares outstanding 19,312,174 17,180,000 17,180,000 Diluted earnings per share $ 2.10 $ 2.79 $ 1.89 Unaudited pro forma earnings per share: Pro forma net income $ 39,422 $ 32,995 $ 22,356 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Pro forma basic earnings per share $ 2.06 $ 1.92 $ 1.30 Unaudited pro forma diluted earnings per share: Pro forma net income $ 39,422 $ 32,995 $ 22,356 Weighted-average diluted shares outstanding 19,312,174 17,180,000 17,180,000 Pro forma diluted earnings per share $ 2.04 $ 1.92 $ 1.30 |
Segment reporting | (Y) Segment reporting: The Company’s Mortgage division represents a distinct reportable segment which differs from the Company’s primary business of Banking. Accordingly, a reconciliation of reportable segment revenues, expenses and profit to the Company’s consolidated total has been presented in Note 21. |
Stock-based compensation | (Z) Stock-based compensation Stock-based compensation expense is recognized in accordance with ASC 718-20 Compensation – Stock Compensation Awards Classified as Equity. |
Recent Accounting Pronouncements | (AA) Recent Accounting Pronouncements In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (FASB Topic 606). The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance 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. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2017. Adoption of this ASU will not have a significant impact on the Company’s financial position, results of operation, or EPS. In August 2014, the FASB issued ASU 2014-14, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The ASU requires that a guaranteed mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if certain conditions are met. Upon foreclosure, the separate other receivable should be measured based on the guaranteed amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The ASU became effective for fiscal years and interim periods beginning after December 15, 2014. Adoption of the ASU did not have a significant impact on the Company’s financial position, results of operations, or EPS. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments.” The update requires acquirers to adjust provisional amounts identified during the measurement period in the reporting period in which the adjustments are determined, rather than retrospectively adjusting previously reported information. Additional disclosure of the impact of measurement period adjustments on current year earnings will also be required. For public business entities, the amendments of this update were effective for interim and annual periods beginning after December 15, 2015. The Company elected to early adopt this ASU for the year ended December 31, 2015. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operation, or EPS. In January 2016, the FASB released ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The main provisions of the update are to eliminate the available for sale classification of accounting for equity securities and adjust the fair value disclosures for financial instruments carried at amortized cost such that the disclosed fair values represent an exit price as opposed to an entry price. The provisions of this update will require that equity securities be carried at fair market value on the balance sheet and any periodic changes in value will be adjustments to the income statement. A practical expedient is provided for equity securities without a readily determinable fair value such that these securities can be carried at cost less any impairment. The provisions of this update become effective for interim and annual periods beginning after December 15, 2017. Management does not expect the requirements of this update to have a significant impact on the Company’s financial position, results of operation, or EPS. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The update will require lessees to recognize right-of-use assets and lease liabilities for all leases not considered short term leases. The provisions of the update also include (a) defining direct costs to only include those incremental costs that would not have been incurred if the lease had not been entered into, (b) circumstances under which the transfer contract in a sale-leaseback transaction should be accounted for as the sale of an asset by the seller-lessee and the purchase of an asset by the buyer-lessor, and (c) additional disclosure requirements. The provisions of this update become effective for interim and annual periods beginning after December 15, 2018. Management is currently evaluating the potential impact of this update, but does not expect the requirements to have a significant impact on the Company’s financial position, results of operation, or EPS. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 will become effective for interim and annual periods beginning after December 15, 2016. The Company has elected to early adopt this ASU for the year ended December 31, 2016. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operation, or EPS. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” 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 and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. 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 will become effective for interim and annual periods beginning after December 15, 2019. Management is currently evaluating the potential impact of this update. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will become effective for interim and annual periods beginning after December 15, 2017. Management does not expect this update to have a significant impact on our financial statements. In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805) - Clarifying the Definition of a Business.” ASU 2017-01 clarifies the definition and provides a more robust framework to use in determining when a set of assets and activities constitutes a business. ASU 2017-01 is intended to provide guidance when evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 will become effective for interim and annual periods beginning after December 15, 2017. Management does not expect this update to have a significant impact on our financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. ASU 2017-01 will become effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. Management is currently evaluating the potential impact of this update, but does not expect the requirements to have a significant impact on our financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Year Ended December 31, 2016 2015 2014 Basic earnings per share calculation: Net income $ 40,591 $ 47,856 $ 32,462 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Basic earnings per share $ 2.12 $ 2.79 $ 1.89 Diluted earnings per share: Net income $ 40,591 $ 47,856 $ 32,462 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Average diluted common shares outstanding 146,992 — — Weighted-average diluted shares outstanding 19,312,174 17,180,000 17,180,000 Diluted earnings per share $ 2.10 $ 2.79 $ 1.89 Unaudited pro forma earnings per share: Pro forma net income $ 39,422 $ 32,995 $ 22,356 Weighted-average basic shares outstanding 19,165,182 17,180,000 17,180,000 Pro forma basic earnings per share $ 2.06 $ 1.92 $ 1.30 Unaudited pro forma diluted earnings per share: Pro forma net income $ 39,422 $ 32,995 $ 22,356 Weighted-average diluted shares outstanding 19,312,174 17,180,000 17,180,000 Pro forma diluted earnings per share $ 2.04 $ 1.92 $ 1.30 |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Final Allocation of Purchase Price to Assets and Liabilities Acquired in Connection with Merger | The following table summarizes the final allocation of purchase price to assets and liabilities acquired in connection with the merger with NWGB based on estimated fair value on September 18, 2015. Final Allocation of Purchase Price for Northwest Georgia Bank: Total cash purchase price $ 1,500 Net assets acquired: Stockholders' equity at September 18, 2015 $ 6,478 Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed: Securities 535 Loans, net of the reversal of NWGB's allowance for loan losses of $4,383 (8,024 ) Premises and equipment 3,731 Core deposits intangible 4,931 Foreclosed real estate (1,922 ) Other assets (264 ) Deposits (302 ) FHLB funds purchased (378 ) Other liabilities (491 ) Total net fair value adjustments 4,294 Bargain purchase gain (1) $ 2,794 (1) The bargain purchase gain resulting from the merger has been recognized in the Banking operating segment during the year ended December 31, 2015. |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair value of assets acquired and liabilities assumed at acquisition date in connection with the merger with NWGB. Cash and cash equivalents $ 25,495 Securities available-for-sale 134,278 Loans 78,565 Premises and equipment 15,343 Intangible assets 4,931 Foreclosed real estate 5,002 Other assets 8,735 Total Assets $ 272,349 Deposits $ 246,216 Borrowings 20,378 Other liabilities 1,461 Total Liabilities $ 268,055 Purchase price 1,500 Bargain purchase gain $ 2,794 |
Schedule of Fair Value of Loans Acquired from Business Combination | The following table presents the fair value of loans acquired from NWGB as of the September 18, 2015 acquisition date: September 18, 2015 Contractually-required principal and interest $ 91,079 Nonaccretable difference (8,578 ) Cash flows expected to be collected 82,501 Accretable yield (3,936 ) Fair value $ 78,565 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma combined condensed consolidated financial information presents the results of operations for the year ended December 31, 2015 and 2014 of the Company as though the merger with NWGB had been completed as of January 1, 2014. The unaudited estimated pro forma information combines the historical results of NWGB with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2014. The pro forma information does not include the effect of any cost-saving or revenue-enhancing strategies. Year ended December 31, 2015 Year ended December 31, 2014 Interest income $ 108,857 $ 104,055 Interest expense 9,631 10,663 Net interest income 99,226 93,392 Provision for loan losses (3,064 ) (2,404 ) Noninterest income 91,776 54,131 Noninterest expense 145,060 117,473 Income before income taxes 49,006 32,454 Income taxes 2,964 2,296 Net income $ 46,042 $ 30,158 Earnings per share Basic $ 2.68 $ 1.76 Diluted $ 2.68 $ 1.76 |
Cash and Cash Equivalents Con39
Cash and Cash Equivalents Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Schedule of Amounts Due from Correspondent Institutions having Concentration of Credit Risk | The Bank had amounts due from their correspondent institutions at December 31, 2016 and 2015, as follows: Bank Name 2016 2015 First Tennessee Bank, N.A. $ 26,381 $ 32,497 Federal Reserve Bank 61,623 20,460 JP Morgan Chase 2,272 4,596 Federal Home Loan Bank of Cincinnati 11,409 3,368 Fifth Third Bank 1,598 879 Compass Bank 987 684 Zions Bank 501 500 Columbus Bank and Trust 1,062 444 Servis First Bank 350 250 SunTrust bank 232 232 PNC Bank 213 219 First National Bankers Bank 200 200 $ 106,828 $ 64,329 |
Investment securities (Tables)
Investment securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost of Securities and Fair Values | The amortized cost of securities and their fair values at December 31, 2016 and 2015 are shown below: December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 998 $ — $ (13 ) $ 985 Mortgage-backed securities - residential 450,874 939 (7,905 ) 443,908 Municipals, tax exempt 116,034 3,003 (2,114 ) 116,923 Treasury securities 11,809 — (52 ) 11,757 Total debt securities 579,715 3,942 (10,084 ) 573,573 Equity securities 8,744 1 (135 ) 8,610 Total securities available-for-sale $ 588,459 $ 3,943 $ (10,219 ) $ 582,183 December 31, 2015 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 34,161 $ — $ (353 ) $ 33,808 Mortgage-backed securities - residential 524,141 3,675 (5,443 ) 522,373 Municipals, tax exempt 74,945 4,892 — 79,837 Treasury securities 4,507 — (22 ) 4,485 Total debt securities 637,754 8,567 (5,818 ) 640,503 Equity securities 8,971 3 (90 ) 8,884 Total securities available-for-sale $ 646,725 $ 8,570 $ (5,908 ) $ 649,387 |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. Years Ended December 31, 2016 2015 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 9,290 $ 9,352 $ 6,849 $ 6,886 Due in one to five 25,520 26,340 44,108 44,358 Due in five to ten years 31,122 32,248 29,964 31,927 Due in over ten years 62,909 61,725 32,692 34,959 128,841 129,665 113,613 118,130 Mortgage-backed securities - residential 450,874 443,908 524,141 522,373 $ 579,715 $ 573,573 $ 637,754 $ 640,503 |
Summary of Sales of Available-for-Sale Securities | Sales of available-for-sale securities were as follows: Years Ended December 31, 2016 2015 2014 Proceeds from sales $ 271,148 $ 194,611 $ 68,900 Gross realized gains 4,755 1,844 2,000 Gross realized losses 348 — — |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses at December 31, 2016 and 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Year ended December 31, 2016 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 985 $ 13 $ — $ — $ 985 $ 13 Mortgage-backed securities - residential 390,595 7,230 19,073 675 409,668 7,905 Municipals, tax exempt 43,132 2,114 — — 43,132 2,114 Treasury securities 10,256 52 — — 10,256 $ 52 Total debt securities 444,968 9,409 19,073 675 464,041 10,084 Equity securities — — 3,126 135 3,126 135 $ 444,968 $ 9,409 $ 22,199 $ 810 $ 467,167 $ 10,219 Year ended December 31, 2015 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 15,887 $ 124 $ 17,921 $ 229 $ 33,808 $ 353 Mortgage-backed securities - residential 219,756 1,778 121,362 3,665 341,118 5,443 Municipals, tax exempt 4,485 22 — — 4,485 22 Total debt securities 240,128 1,924 139,283 3,894 379,411 5,818 Equity securities — — 1,583 90 1,583 90 $ 240,128 $ 1,924 $ 140,866 $ 3,984 $ 380,994 $ 5,908 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans Outstanding by Major Lending Classification | Loans outstanding at December 31, 2016 and 2015, by major lending classification are as follows: December 31, 2016 2015 Commercial and industrial $ 386,233 $ 318,791 Construction 245,905 238,170 Residential real estate: 1-to-4 family mortgage 294,924 290,704 Residential line of credit 177,190 171,526 Multi-family mortgage 44,977 59,510 Commercial real estate: Owner occupied 357,346 337,664 Non-owner occupied 267,902 207,871 Consumer and other 74,307 77,627 Gross loans 1,848,784 1,701,863 Less: Allowance for loan losses (21,747 ) (24,460 ) Net loans $ 1,827,037 $ 1,677,403 |
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest | The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the years December 31, 2016, 2015 and 2014: Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2016 Beginning balance - December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Provision for loan losses 212 (417 ) (882 ) (630 ) 193 (271 ) (271 ) 587 (1,479 ) Recoveries of loans previously charged-off 524 216 127 174 — 140 195 240 1,616 Loans charged off (562 ) (2 ) (224 ) (132 ) — (249 ) (527 ) (1,154 ) (2,850 ) Ending balance- December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2015 Beginning balance - December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 Provision for loan losses (624 ) 149 (1,521 ) (645 ) 127 (1,366 ) (307 ) 1,123 (3,064 ) Recoveries of loans previously charged-off 112 1,354 161 286 — 35 342 548 2,838 Loans charged off (953 ) (81 ) (828 ) (230 ) — (1,062 ) (54 ) (1,136 ) (4,344 ) Ending balance- December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year Ended December 31, 2014 Beginning balance - December 31, 2013 $ 6,756 $ 5,033 $ 7,211 $ 2,775 $ 342 $ 5,659 $ 3,438 $ 1,139 $ 32,353 Provision for loan losses 748 (1,559 ) 417 311 (3,223 ) 942 (357 ) 5 (2,716 ) Recoveries of loans previously charged-off 610 539 222 166 3,065 162 568 422 5,754 Loans charged off (1,514 ) (292 ) (1,486 ) (462 ) — (688 ) (1,008 ) (911 ) (6,361 ) Ending balance- December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 |
Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment and loans collectively evaluated for impairment as of December 31, 2016, 2015 and 2014: December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 135 $ — $ 23 $ — $ — $ 113 $ 242 $ — $ 513 Collectively evaluated for impairment 5,174 4,940 3,174 1,613 504 3,189 1,777 863 21,234 Ending balance- December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 December 31, 2015 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 89 $ 5 $ 66 $ — $ — $ 74 $ 739 $ — $ 973 Collectively evaluated for impairment 5,046 5,138 4,110 2,201 311 3,608 1,883 1,190 23,487 Ending balance- December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 December 31, 2014 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Year-end amount of allowance allocated to: Individually evaluated for impairment $ 892 $ 122 $ 458 $ — $ 80 $ 373 $ 900 $ — $ 2,825 Collectively evaluated for impairment 5,708 3,599 5,906 2,790 104 5,702 1,741 655 26,205 Ending balance- December 31, 2014 $ 6,600 $ 3,721 $ 6,364 $ 2,790 $ 184 $ 6,075 $ 2,641 $ 655 $ 29,030 |
Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment and loans collectively evaluated for impairment as of December 31, 2016, 2015 and 2014: December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,476 $ 2,686 $ 2,471 $ 311 $ 1,027 $ 2,752 $ 2,201 $ 27 $ 12,951 Collectively evaluated for impairment 384,279 238,900 290,346 176,879 43,922 350,812 260,361 74,276 1,819,775 Acquired with deteriorated credit quality 478 4,319 2,107 — 28 3,782 5,340 4 16,058 Ending balance - December 31, 2016 $ 386,233 $ 245,905 $ 294,924 $ 177,190 $ 44,977 $ 357,346 $ 267,902 $ 74,307 $ 1,848,784 December 31, 2015 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,499 $ 2,866 $ 3,686 $ — $ 1,074 $ 3,000 $ 3,451 $ — $ 15,576 Collectively evaluated for impairment 316,418 228,445 284,190 171,526 58,400 329,569 198,741 77,623 1,664,912 Acquired with deteriorated credit quality 874 6,859 2,828 — 36 5,095 5,679 4 21,375 Ending balance- December 31, 2015 $ 318,791 $ 238,170 $ 290,704 $ 171,526 $ 59,510 $ 337,664 $ 207,871 $ 77,627 $ 1,701,863 December 31, 2014 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 2,340 $ 6,840 $ 6,633 $ — $ 1,165 $ 3,473 $ 3,314 $ 17 $ 23,782 Collectively evaluated for impairment 263,478 159,117 260,008 159,868 51,073 287,688 148,666 62,216 1,392,114 Ending balance- December 31, 2014 $ 265,818 $ 165,957 $ 266,641 $ 159,868 $ 52,238 $ 291,161 $ 151,980 $ 62,233 $ 1,415,896 |
Credit Quality Indicators by Portfolio Class | The following table shows credit quality indicators by portfolio class at December 31, 2016 and 2015: December 31, 2016 Pass Watch Substandard Total Commercial and industrial $ 351,046 $ 31,074 $ 4,113 $ 386,233 Construction 236,588 4,612 4,705 245,905 Residential real estate: 1-to-4 family mortgage 277,948 6,945 10,031 294,924 Residential line of credit 173,011 1,875 2,304 177,190 Multi-family mortgage 43,770 152 1,055 44,977 Commercial real estate: Owner occupied 338,698 10,459 8,189 357,346 Non-owner occupied 249,877 10,273 7,752 267,902 Consumer and other 73,454 417 436 74,307 Total $ 1,744,392 $ 65,807 $ 38,585 $ 1,848,784 December 31, 2015 Pass Watch Substandard Total Commercial and industrial $ 310,997 $ 2,166 $ 5,628 $ 318,791 Construction 226,829 3,238 8,103 238,170 Residential real estate: 1-to-4 family mortgage 271,001 9,367 10,336 290,704 Residential line of credit 165,838 3,069 2,619 171,526 Multi-family mortgage 58,234 166 1,110 59,510 Commercial real estate: Owner occupied 318,221 8,789 10,654 337,664 Non-owner occupied 178,269 20,158 9,444 207,871 Consumer and other 76,515 477 635 77,627 Total $ 1,605,904 $ 47,430 $ 48,529 $ 1,701,863 |
Purchased Credit Impaired | Loans acquired in business combinations that exhibited at the date of acquisition evidence of deterioration of credit quality since origination are considered to be purchased credit impaired and were as follows at December 31, 2016 and 2015: December 31, 2016 2015 Commercial and industrial $ 478 $ 874 Construction 4,319 6,859 Residential real estate: 1-to-4 family mortgage 2,107 2,828 Residential line of credit — — Multi-family mortgage 28 36 Commercial real estate: Owner occupied 3,782 5,095 Non-owner occupied 5,340 5,679 Consumer and other 4 4 Total $ 16,058 $ 21,375 |
Current Value of Loans Purchased Credit Impaired at the Time of Acquisition | The following table presents the current value of loans determined to be purchased credit impaired at the time of acquisition at December 31, 2016 and 2015: December 31, 2016 2015 Contractually-required principal and interest $ 22,961 $ 31,381 Nonaccretable difference (4,459 ) (8,369 ) Cash flows expected to be collected 18,502 23,012 Accretable yield (2,444 ) (1,637 ) Carrying value $ 16,058 $ 21,375 |
Changes in Accretable Yield and Nonaccretable Difference of Purchased Loans | Changes in accretable yield and nonaccretable difference of purchased loans were as follows: Accretable yield Nonaccretable Difference Purchased Credit Impaired Purchased Non-impaired Purchased Credit Impaired Purchased Non-impaired Total Balance at January 1, 2016 $ (1,637 ) $ (2,147 ) $ (8,369 ) $ (70 ) $ (12,223 ) Principal reductions/ pay-offs (3,438 ) — 3,438 — — Charge-offs — — 472 — 472 Sale of credit card portfolio — — — 70 70 Accretion 2,631 907 — — 3,538 Balance at December 31, 2016 $ (2,444 ) $ (1,240 ) $ (4,459 ) $ — $ (8,143 ) Balance at January 1, 2015 $ — $ — $ — $ — $ — Additions through acquisition (1,991 ) (1,945 ) (8,508 ) (70 ) (12,514 ) Principal reductions/ pay-offs 100 — 139 — 239 Adjustments to assumptions — (202 ) — — (202 ) Charge-offs — — — — — Sale of credit card portfolio — — — — — Accretion 254 — — — 254 Balance at December 31, 2015 $ (1,637 ) $ (2,147 ) $ (8,369 ) $ (70 ) $ (12,223 ) |
Past Due Loans | Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. Loans acquired with deteriorated credit quality amounting to $16,058 and $21,375, respectively, at December 31, 2016 and 2015 have been excluded from the tables below in accordance with ASC-310-10-50, Receivables- Overall- Disclosure The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2016 and 2015: December 31, 2016 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Total Commercial and industrial $ 262 $ 127 $ 1,297 $ 384,069 $ 385,755 Construction 441 17 254 240,874 241,586 Residential real estate: 1-to-4 family mortgage 3,130 697 2,289 286,701 292,817 Residential line of credit 1,139 433 601 175,017 177,190 Multi-family mortgage — — — 44,949 44,949 Commercial real estate: Owner occupied 186 — 2,007 351,371 353,564 Non-owner occupied 158 — 2,251 260,153 262,562 Consumer and other 433 55 30 73,785 74,303 Total $ 5,749 $ 1,329 $ 8,729 $ 1,816,919 $ 1,832,726 December 31, 2015 30-89 days past due 90 and accruing interest Non-accruing loans Loans current on payments and accruing interest Total Commercial and industrial $ 283 $ 73 $ 1,659 $ 315,902 $ 317,917 Construction 81 33 272 230,925 231,311 Residential real estate: 1-to-4 family mortgage 2,798 268 2,124 282,686 287,876 Residential line of credit 1,053 323 1,114 169,036 171,526 Multi-family mortgage — — — 59,474 59,474 Commercial real estate: Owner occupied 442 — 1,974 330,153 332,569 Non-owner occupied — — 3,512 198,680 202,192 Consumer and other 331 190 45 77,057 77,623 Total $ 4,988 $ 887 $ 10,700 $ 1,663,913 $ 1,680,488 |
Impaired Loans Recognized, Segregated by Class | Impaired loans recognized in conformity with ASC 310 at December 31, 2016 and 2015, segregated by class, were as follows: December 31, 2016 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 854 $ 854 $ 135 Construction — — — Residential real estate: 1-to-4 family mortgage 103 369 23 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 635 654 113 Non-owner occupied 1,151 1,678 242 Consumer and other 1 1 — Total $ 2,744 $ 3,556 $ 513 With no related allowance recorded Commercial and industrial $ 622 $ 746 $ — Construction 2,686 2,694 — Residential real estate: 1-to-4 family mortgage 2,368 2,370 — Residential line of credit 311 321 — Multi-family mortgage 1,027 1,027 — Commercial real estate: Owner occupied 2,117 3,205 — Non-owner occupied 1,050 1,781 — Consumer and other 26 26 — Total $ 10,207 $ 12,170 $ — Total impaired loans $ 12,951 $ 15,726 $ 513 December 31, 2015 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 1,133 $ 1,133 $ 89 Construction 308 308 5 Residential real estate: 1-to-4 family mortgage 3,397 3,398 66 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 2,876 2,996 74 Non-owner occupied 2,402 2,402 739 Consumer and other — — — Total $ 10,116 $ 10,237 $ 973 With no related allowance recorded: Commercial and industrial $ 366 $ 993 $ — Construction 2,558 2,558 — Residential real estate: 1-to-4 family mortgage 289 289 — Residential line of credit — — — Multi-family mortgage 1,074 1,074 — Commercial real estate: Owner occupied 123 229 — Non-owner occupied 1,050 1,781 — Consumer and other — — — Total $ 5,460 $ 6,924 $ — Total impaired loans $ 15,576 $ 17,161 $ 973 December 31, 2016 2015 2014 Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 994 $ 17 $ 1,269 $ 22 $ 1,551 $ 35 Construction 154 — 517 3 3,175 — Residential real estate: 1-to-4 family mortgage 1,750 1 2,345 199 3,971 29 Residential line of credit — — — — — — Multi-family mortgage — — 468 — 974 — Commercial real estate: Owner occupied 1,756 25 1,938 95 3,716 22 Non-owner occupied 1,777 — 3,039 — 4,483 — Consumer and other 1 — — — — — Total $ 6,432 $ 43 $ 9,576 $ 319 $ 17,870 $ 86 With no related allowance recorded Commercial and industrial $ 494 $ 20 $ 660 $ — $ 559 $ 23 Construction 2,622 132 4,337 127 4,058 129 Residential real estate: 1-to-4 family mortgage 1,329 137 2,815 7 4,389 170 Residential line of credit 156 10 — — — — Multi-family mortgage 1,051 37 652 25 1,710 — Commercial real estate: Owner occupied 1,120 119 788 — 1,325 66 Non-owner occupied 1,050 — 855 — 5,458 175 Consumer and other 13 — — — — — Total $ 7,835 $ 455 $ 10,107 $ 159 $ 17,499 $ 563 Total impaired loans $ 14,267 $ 498 $ 19,683 $ 478 $ 35,369 $ 649 |
Financial Effect of TDRs | The following table presents the financial effect of TDRs recorded during the periods indicated: Year ended December 31, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial — $ — $ — $ — Commercial real estate: Owner occupied 1 118 118 — Residential real estate: 1-4 family mortgage 5 1,819 1,819 — Consumer and other 3 29 29 — Total 9 $ 1,966 $ 1,966 $ — Year ended December 31, 2015 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 6 $ 2,301 $ 2,301 $ 86 Commercial real estate: Owner occupied 4 786 786 — Non-owner occupied 1 133 133 1 Residential real estate: 1-4 family mortgage 5 326 326 45 Total 16 $ 3,546 $ 3,546 $ 132 Year ended December 31, 2014 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,931 $ 3,931 $ — Commercial real estate: Non-owner occupied 1 1,063 1,063 — Total 3 $ 4,994 $ 4,994 $ — |
Loans Modified as Troubled Debt Restructurings for Payment Default | The following presents loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the year ended December 31, 2015: Defaulted Charge-offs and specific reserves Residential real estate: 1-to-4 family mortgage $ 145 $ 45 Total $ 145 $ 45 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment and Related Accumulated Depreciation | Premises and equipment and related accumulated depreciation as of December 31, 2016 and 2015, are as follows: 2016 2015 Land $ 18,698 $ 19,253 Premises 44,301 43,419 Furniture and fixtures 21,700 20,421 Leasehold improvements 10,515 8,276 Equipment 11,583 9,851 Construction in process 867 3,120 107,664 104,340 Less: accumulated depreciation (41,013 ) (38,448 ) Total Premises and Equipment $ 66,651 $ 65,892 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Real Estate [Abstract] | |
Summary of Foreclosed Real Estate | The following table summarizes the foreclosed real estate for the year ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Balance at beginning of period $ 11,641 $ 7,259 $ 8,796 Acquired through merger with NWGB — 5,002 — Transfers from loans 2,724 4,085 4,308 Capital improvements — 171 — Properties sold (6,696 ) (3,774 ) (4,738 ) Gain on sale of foreclosed assets 1,670 187 464 Transferred to loans (1,548 ) (785 ) (1,239 ) Write-downs and partial liquidations (388 ) (504 ) (332 ) Balance at end of period $ 7,403 $ 11,641 $ 7,259 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Balance for Core Deposit Intangibles | The change in balance for core deposit intangibles during the year is as follows: Core deposit intangible Year ended December 31, 2016 2015 2014 Beginning Balance $ 6,695 $ 3,495 $ 5,108 Addition from merger with NWGB — 4,931 — Less: amortization expense (2,132 ) (1,731 ) (1,613 ) Ending Balance $ 4,563 $ 6,695 $ 3,495 |
Schedule of Estimated Aggregate Amortization | Estimated aggregate amortization for year ending: December 31, 2017 $ 762 December 31, 2018 493 December 31, 2019 493 December 31, 2020 493 December 31, 2021 493 Thereafter 1,829 $ 4,563 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Schedule of Changes in Mortgage Servicing Rights | Changes in the Company’s mortgage servicing rights were as follows for year ended December 31, 2016, 2015 and 2014: Year Ended December 31, 2016 2015 2014 Carrying value at beginning of period $ 29,711 $ 6,032 $ — Capitalization 46,070 26,474 6,429 Amortization (8,321 ) (2,601 ) (397 ) Sales (34,118 ) — — Gain on sale 3,406 — — Impairment (4,678 ) (194 ) — Carrying value at December 31 $ 32,070 $ 29,711 $ 6,032 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the years ended December 31, 2016, 2015 and 2014, respectively: Year Ended December 31, 2016 2015 2014 Gross servicing income $ 12,063 $ 3,614 $ 341 Servicing expenses: Servicing asset amortization 8,321 2,601 397 Servicing asset impairment 4,678 194 — Loss on sale of mortgage servicing rights 4,447 — — Other servicing expenses 2,325 633 140 Gross servicing expenses 19,771 3,428 537 Net servicing (loss) income $ (7,708 ) $ 186 $ (196 ) |
Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights | Data and key economic assumptions related to the Company’s mortgage servicing rights as of December 31, 2016 and 2015 are as follows: As of December 31, 2016 2015 Unpaid principal balance $ 2,833,958 $ 2,545,449 Weighted-average prepayment speed (CPR) 8.40 % 7.30 % Estimated impact on fair value of a 10% increase (1,256 ) (371 ) Estimated impact on fair value of a 20% increase (2,434 ) (726 ) Discount rate 9.54 % 10.14 % Estimated impact on fair value of a 100 bp increase (1,394 ) (1,201 ) Estimated impact on fair value of a 200 bp increase (2,679 ) (2,317 ) Weighted-average coupon interest rate 3.59 % 3.79 % Weighted-average servicing fee (basis points) 27 25 Weighted-average remaining maturity (in months) 328 311 |
Summary of Transaction Resulted in Net Loss | The transaction resulted in a net loss of $4,447, which is composed of the following: Year Ended December 31, 2016 Gain on sale $ 3,406 Transaction costs (2,284 ) Loss on fair value hedge on sale $ (5,569 ) Net loss on sale of mortgage servicing rights $ (4,447 ) |
Other Assets and Other liabil46
Other Assets and Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Assets And Other Liabilities [Abstract] | |
Summary of Other Assets | Included in Other assets are: As of December 31, Other assets 2016 2015 Cash surrender value on bank owned life insurance $ 10,556 $ 10,331 Prepaid expenses 2,245 2,311 Derivatives 19,745 6,023 Other assets 18,808 8,912 Total other assets $ 51,354 $ 27,577 |
Summary of Other Liabilities | Included in Other liabilities are: As of December 31, Other liabilities 2016 2015 Deferred compensation $ 6,710 $ 12,343 Accrued payroll 5,987 6,343 Loan proceeds payable — 5,730 Accrued contract termination fee — 2,278 Mortgage servicing escrows 1,079 2,297 Mortgage buyback reserve 2,659 2,156 Accrued interest 632 581 Derivatives 586 369 Deferred tax liability 4,180 713 Other liabilities 36,535 11,713 Total other liabilities $ 58,368 $ 44,523 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Time Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At December 31, 2016, the scheduled maturities of time deposits are as follows: Scheduled maturities of time deposits Due on or before: December 31, 2017 $ 259,383 December 31, 2018 74,097 December 31, 2019 35,736 December 31, 2020 10,300 December 31, 2021 11,515 Total $ 391,031 |
Securities Sold Under Agreeme48
Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Securities Sold Under Agreements To Repurchase [Abstract] | |
Summary of Balances for Securities Sold Under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is summarized as follows: 2016 2015 Balance at year end $ 21,561 $ 105,133 Average daily balance during the year 60,331 114,781 Average interest rate during the year 0.11 % 0.12 % Maximum month-end balance during the year 115,005 126,608 Weighted average interest rate at year-end 0.17 % 0.12 % |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | Maturities of long-term debt as of December 31, 2016 are as follows: FHLB Junior Subordinated debt Total Due on or before: December 31, 2017 $ 253 $ — $ 253 December 31, 2018 10,009 — 10,009 December 31, 2019 403 — 403 December 31, 2020 223 — 223 December 31, 2021 581 — 581 Due thereafter 2,493 30,930 33,423 Total $ 13,962 $ 30,930 $ 44,892 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | Allocation of federal and state income taxes between current and deferred portions is as follows: For the year ended December 31, 2016 2015 2014 Current $ 12,476 $ 1,321 $ 1,427 Deferred 9,257 1,647 842 Total $ 21,733 $ 2,968 $ 2,269 |
Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates | Federal income tax expense for the year ended December 31, 2016, 2015 and 2014 differs from the statutory federal rate of 35% due to the following: For the year ended December 31, 2016 2015 2014 Federal taxes calculated at statutory rate $ 5,061 $ — $ — Increase (decrease) resulting from: State taxes, net of federal benefit 3,664 2,956 2,258 Conversion as of September 16, 2016 to C Corporation 13,181 — — Other (173 ) 12 11 Income tax expense, as reported $ 21,733 $ 2,968 $ 2,269 |
Schedule of Net Deferred Tax liability | The components of the net deferred tax liability at December 31, 2016 and 2015, are as follows: For the year ended December 31, 2016 2015 Deferred tax assets: Allowance for loan losses $ 8,516 $ 1,565 Amortization of core deposit intangible 996 107 Compensation related 7,552 1,120 Unrealized loss on securities 2,462 — Other 2,430 39 Subtotal 21,956 2,831 Deferred tax liabilities: FHLB stock dividends (827 ) (135 ) Depreciation (6,548 ) (661 ) Unrealized gain on securities — (205 ) Mortgage servicing rights (12,558 ) (1,902 ) Other (6,203 ) (641 ) Subtotal (26,136 ) (3,544 ) Net deferred tax liability $ (4,180 ) $ (713 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Financial instruments with Off-Balance Sheet Credit Risk | Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. Year Ended December 31, 2016 2015 Commitments to extend credit, excluding interest rate lock commitments $ 726,122 $ 554,274 Letters of credit 22,547 20,338 Balance at end of period $ 748,669 $ 574,612 |
Summary of Commitments Under Non-Cancelable Operating Leases | Commitments under non-cancelable operating leases were as follows, before considering renewal options that generally are present: 2017 $ 2,994 2018 2,530 2019 2,195 2020 1,897 2021 1,694 Thereafter 6,589 Total $ 17,899 |
Summary of Allowance for Loan Repurchases or Indemnifications | The following table summarizes the activity in the repurchase reserve: Year Ended December 31, 2016 2015 Balance at beginning of period $ 2,156 $ 828 Provision for loan repurchases or indemnifications 512 1,375 Recoveries on previous losses 9 — Losses on loans repurchased or indemnified (18 ) (47) Balance at end of period $ 2,659 $ 2,156 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following table provides details on the Company’s derivative financial instruments as of the dates presented: Balance Sheet Classification Fair Value At December 31, 2016 2015 Derivative assets: Not designated as hedging: Interest rate swaps Other Assets $ 586 $ 369 Forward commitments Other Assets 12,731 61 Interest rate-lock commitments Other Assets 6,428 5,593 Total $ 19,745 $ 6,023 Derivative liabilities: Not designated as hedging: Interest rate swaps Other Liabilities $ 586 $ 369 Forward commitments Other Liabilities — — Total $ 586 $ 369 |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows: Year Ended December 31, 2016 2015 2014 Derivatives not designated as hedging instruments: Interest rate lock commitments: Included in mortgage banking income $ 835 $ 2,073 $ 2,535 Forward commitments: Included in mortgage banking income 10,497 (3,600 ) (9,029 ) Derivatives designated as hedging instruments: Fair value hedge Included in loss on sale of mortgage servicing rights (5,569 ) — — Total $ 5,763 $ (1,527 ) $ (6,494 ) |
Fair Value of Financial Instr53
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments are as follows: Fair Value December 31, 2016 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 136,327 $ 136,327 $ — $ — $ 136,327 Available-for-sale securities 582,183 — 577,634 4,549 582,183 Federal Home Loan Bank Stock 7,743 — — 7,743 7,743 Loans, net 1,827,037 — 1,822,054 1,281 1,823,335 Loans held for sale 507,442 — 507,442 — 507,442 Interest receivable 7,241 — 7,241 — 7,241 Mortgage servicing rights, net 32,070 — — 32,070 32,070 Derivatives 19,745 — 19,745 — 19,745 Financial liabilities: Deposits: Without stated maturities $ 2,280,531 $ 2,280,531 $ — $ — $ 2,280,531 With stated maturities 391,031 — 390,484 — 390,484 Securities sold under agreement to repurchase 21,561 21,561 — — 21,561 Short term borrowings 150,000 150,000 — — 150,000 Interest payable 620 237 383 — 620 Long-term debt 44,892 — 43,994 — 43,994 Derivatives 586 — 586 — 586 Fair Value December 31, 2015 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 97,723 $ 97,723 $ — $ — $ 97,723 Available-for-sale securities 649,387 — 644,531 4,856 649,387 Federal Home Loan Bank Stock 6,528 — — 6,528 6,528 Loans, net 1,677,403 — 1,638,506 36,951 1,675,457 Loans held for sale 273,196 — 273,196 — 273,196 Interest receivable 6,763 — 6,763 — 6,763 Mortgage servicing rights, net 29,711 — — 29,711 29,711 Derivatives 6,023 — 6,023 — 6,023 Financial liabilities: Deposits: Without stated maturities $ 2,112,915 $ 2,112,915 $ — $ — $ 2,112,915 With stated maturities 325,559 — 323,624 — 323,624 Securities sold under agreement to repurchase 105,133 105,133 — — 105,133 Short term borrowings 18,000 18,000 — — 18,000 Interest payable 550 244 306 — 550 Long-term debt 56,616 — 55,484 — 55,484 Derivatives 369 — 369 — 369 |
Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 985 $ — $ 985 Mortgage-backed securities — 443,908 — 443,908 Municipals, tax-exempt — 116,923 — 116,923 Treasury securities — 11,757 — 11,757 Equity securities — 4,061 4,549 8,610 Total $ — $ 577,634 $ 4,549 $ 582,183 Loans held for sale — 507,442 — 507,442 Derivatives — 19,745 — 19,745 Financial Liabilities: Derivatives $ — $ 586 $ — $ 586 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2015 are presented in the following tables: At December 31, 2015 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 33,808 $ — $ 33,808 Mortgage-backed securities — 522,373 — 522,373 Municipals, tax-exempt — 79,837 — 79,837 Treasury securities — 4,485 — 4,485 Equity securities — 4,028 4,856 8,884 Total $ — $ 644,531 $ 4,856 $ 649,387 Loans held for sale — 273,196 — 273,196 Derivatives — 6,023 — 6,023 Financial Liabilities: Derivatives $ — $ 369 $ — $ 369 |
Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis | The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Foreclosed assets $ — $ — $ 2,315 $ 2,315 Mortgage servicing rights — — 32,070 32,070 Impaired loans: Commercial and industrial — — 542 542 Commercial real estate: Owner occupied — — 635 635 Non-owner occupied — — — — Residential real estate: 1-4 family mortgage — — 103 103 Residential line of credit — — — — Consumer and other — — 1 1 Total $ — $ — $ 1,281 $ 1,281 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2015 are presented in the following tables: At December 31, 2015 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Foreclosed assets $ — $ — $ 6,275 $ 6,275 Mortgage servicing rights — — 29,711 29,711 Impaired Loans: Commercial and industrial — — 2,007 2,007 Commercial real estate: Owner occupied — — 6,493 6,493 Non-owner occupied — — 7,572 7,572 Construction — — 6,896 6,896 Residential real estate: 1-4 family mortgage — — 6,127 6,127 Multifamily — — 36 36 Consumer and other — — 4 4 Total $ — $ — $ 29,135 $ 29,135 |
Reconciliation for Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs | The following table provides a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the year ended December 31, 2016 and 2015: Available-for-sale securities December 31, 2016 2015 Balance at beginning of period $ 4,856 $ 4,688 Realized gains included in net income — — Unrealized gains included in other comprehensive income — — Purchases 20 168 Capital distribution (327 ) — Balance at end of period $ 4,549 $ 4,856 |
Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents information as of December 31, 2016 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 1,281 Appraised value of collateral Discount for comparable sales 0%-30% Foreclosed assets $ 2,315 Appraised value of property less costs to sell Discount for costs to sell 0%-10% Mortgage servicing rights, net $ 32,070 Discounted cash flows See Note 9 See Note 9 The following table presents information as of December 31, 2015 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 29,135 Appraised value of collateral Discount for comparable sales 0%-30% Foreclosed assets $ 6,275 Appraised value of property less costs to sell Discount for costs to sell 0%-46% Mortgage servicing rights, net $ 29,711 Discounted cash flows See Note 9 See Note 9 |
Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value | The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of December 31, 2016 and 2015: December 31, 2016 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 507,442 $ 501,503 $ 5,939 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2015 Mortgage loans held for sale measured at fair value $ 273,196 $ 264,968 $ 8,228 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Parent Company Only Financial54
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Balance Sheet | As of December 31, Balance sheet 2016 2015 Assets Cash and cash equivalents (1) $ 30,993 $ 1,253 Investments 2,074 2,381 Investments in Bank subsidiary (1) 325,574 265,632 Note receivable - Bank subsidiary (1) — 6,000 Interest receivable — 31 Other assets 2,972 2,545 Goodwill 29 29 Total assets $ 361,642 $ 277,871 Liabilities and shareholders' equity Liabilities Long-term debt $ 30,930 $ 35,005 Subordinated debt — 6,000 Accrued expenses and other liabilities 214 192 Total liabilities $ 31,144 $ 41,197 Shareholders' equity Common stock $ 24,108 $ 17,180 Additional paid-in capital 213,480 94,544 Retained earnings 93,784 122,493 Accumulated other comprehensive (loss) income (874 ) 2,457 Total shareholders' equity $ 330,498 $ 236,674 Total liabilities and shareholders' equity $ 361,642 $ 277,871 (1) Eliminates in Consolidation |
Income Statements | For the years ended December 31, Income Statements 2016 2015 2014 Income Other interest income $ 33 $ 33 $ 32 Interest income from Bank subsidiary (1) 95 121 118 Gain on sale of investments 417 — — Dividend income from Bank subsidiary (1) 14,875 25,105 18,155 Earnings from Bank subsidiary (1) 26,859 23,879 15,429 Total income $ 42,279 $ 49,138 $ 33,734 Expenses Interest expense 1,393 1,298 1,278 Salaries, legal and professional fees 315 3 3 Other noninterest expense 168 59 69 Federal and state income tax benefit (188 ) (78 ) (78 ) Total expenses $ 1,688 $ 1,282 $ 1,272 Net income $ 40,591 $ 47,856 $ 32,462 (1) Eliminates in Consolidation |
Statement of Cash Flows | For the years ended December 31, Statement of Cash Flows 2016 2015 2014 Operating Activities Net income $ 40,591 $ 47,856 $ 32,462 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiary bank (26,859 ) (23,879 ) (15,429 ) Gain on sale of investments (417 ) — — Stock-based compensation expense 4,693 — — (Increase) decrease in other assets (427 ) 1,292 (1,449 ) Increase (decrease) in other liabilities (5,251 ) 23 1,722 Other, net 7 (1 ) (1,751 ) Net cash provided by operating activities $ 12,337 $ 25,291 $ 15,555 Investing Activities Other investments $ 724 $ 761 $ (1,024 ) Net cash provided by (used in) investing activities 724 761 (1,024 ) Financing Activities Equity contribution to Bank $ (20,000 ) $ — $ — Payment of dividends (69,300 ) (25,350 ) (14,850 ) Payment of subordinated debt (10,075 ) — — Net proceeds from sale of common stock 116,054 — — Net cash provided by (used in) financing activities $ 16,679 $ (25,350 ) $ (14,850 ) Net increase (decrease) in cash and cash equivalents 29,740 702 (319 ) Cash and Cash Equivalents at beginning of year 1,253 551 870 Cash and Cash Equivalents at end of year $ 30,993 $ 1,253 $ 551 Supplemental noncash disclosures: Conversion of cash-settled to stock-settled compensation $ 5,388 $ — $ — Forgiveness of intercompany debt $ 6,024 $ — $ — Dividends declared not paid $ — $ — $ 1,750 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provides segment financial information for the years ended December 31, 2016, 2015 and 2014 follows: Year ended December 31, 2016 Banking Mortgage Consolidated Net interest income $ 112,365 $ (1,415 ) $ 110,950 Provision for loan loss (1,479 ) — (1,479 ) Mortgage banking income 25,542 92,209 117,751 Other noninterest income 26,934 — 26,934 Depreciation 3,506 489 3,995 Amortization of intangibles 2,132 — 2,132 Amortization and impairment of mortgage servicing rights — 12,999 12,999 Loss on sale of mortgage servicing rights — 4,447 4,447 Other noninterest mortgage banking expense 16,095 66,256 82,351 Other noninterest expense 88,866 — 88,866 Income before income taxes 55,721 6,603 62,324 Income tax expense 21,733 Net income 40,591 Total assets $ 2,752,773 $ 524,108 $ 3,276,881 Goodwill 46,767 100 46,867 Year ended December 31, 2015 Banking Mortgage Consolidated Net interest income $ 92,366 $ 1,506 $ 93,872 Provision for loan loss (3,070 ) 6 (3,064 ) Mortgage banking income 18,718 51,472 70,190 Other noninterest income 22,190 — 22,190 Depreciation and amortization 2,933 350 3,283 Amortization of intangibles 1,731 — 1,731 Amortization and impairment of mortgage servicing rights — 2,795 2,795 Other noninterest mortgage banking expense 13,189 42,949 56,138 Other noninterest expense 74,545 — 74,545 Income before income taxes 43,946 6,878 50,824 Income tax expense 2,968 Net income 47,856 Total assets $ 2,570,071 $ 329,349 $ 2,899,420 Goodwill 46,804 100 46,904 Year ended December 31, 2014 Banking Mortgage Consolidated Net interest income $ 83,192 $ 184 $ 83,376 Provision for loan loss (2,716 ) — (2,716 ) Mortgage banking income 8,958 22,177 31,135 Other noninterest income 19,667 — 19,667 Depreciation and amortization 2,784 315 3,099 Amortization of intangibles 1,613 — 1,613 Amortization and impairment of mortgage servicing rights — 397 397 Other noninterest mortgage banking expense 8,551 21,018 29,569 Other noninterest expense 67,485 — 67,485 Income before income taxes 34,100 631 34,731 Income tax expense 2,269 Net income 32,462 Total assets $ 2,202,978 $ 225,211 $ 2,428,189 Goodwill 46,804 100 46,904 |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below at period-end. Actual For Minimum Capital adequacy with capital buffer To be well capitalized under action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) FB Financial Corporation $ 338,893 13.03 % $ 208,069 8.0 % $ 224,325 8.63 % N/A N/A FirstBank 304,018 11.72 % 207,521 8.0 % 223,733 8.63 % $ 259,401 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 317,146 12.19 % $ 156,101 6.0 % $ 172,362 6.63 % N/A N/A FirstBank 282,271 10.88 % 155,664 6.0 % 171,879 6.63 % $ 155,664 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 317,146 10.05 % $ 126,227 4.0 % N/A N/A N/A N/A FirstBank 282,271 8.95 % 126,155 4.0 % N/A N/A $ 157,693 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 287,146 11.04 % $ 117,043 4.5 % $ 133,299 5.13 % N/A N/A FirstBank 282,271 10.88 % 116,748 4.5 % 132,963 5.13 % $ 168,636 6.5 % Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2015 Total Capital (to risk-weighted assets) FB Financial Corporation $ 246,168 11.15 % $ 176,623 8.0 % N/A N/A N/A N/A FirstBank 242,240 11.02 % 175,855 8.0 % N/A N/A $ 219,819 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 211,633 9.58 % $ 132,547 6.0 % N/A N/A N/A N/A FirstBank 211,780 9.63 % 131,950 6.0 % N/A N/A $ 131,950 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 211,633 7.64 % $ 110,803 4.0 % N/A N/A N/A N/A FirstBank 211,780 7.65 % 110,735 4.0 % N/A N/A $ 138,418 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 181,633 8.23 % $ 99,313 4.5 % N/A N/A N/A N/A FirstBank 211,780 9.63 % 98,963 4.5 % N/A N/A $ 142,946 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock-Settled EBI Units and Restricted Stock Units Outstanding | The following table summarizes information about stock-settled EBI Units and restricted stock units outstanding at December 31, 2016: Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance, beginning of period — $ — Conversion of deferred compensation plan (see note 23) 157,895 19.00 Conversion of equity based incentive (EBI) plans (see note 23) 125,684 19.00 Grants 1,077,066 19.00 Released and distributed (vested) (157,748 ) 19.00 Forfeited/expired (2,057 ) 19.00 Balance, end of period 1,200,840 $ 19.00 |
Related party transactions (Tab
Related party transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Company Shareholder, Bank Directors and Their Affiliates | An analysis of loans to executive officers, the shareholder of the Company, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2016 $ 31,195 New loans and advances 1,933 Repayments (5,758 ) Loans outstanding at December 31, 2016 $ 27,370 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Sep. 15, 2016USD ($)$ / sharesshares | Aug. 15, 2016USD ($) | Jun. 28, 2016shares | Dec. 31, 2016USD ($)Methodshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jul. 31, 2016shares |
Class Of Stock [Line Items] | |||||||
Description of stock split | the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25,000,000, respectively. | ||||||
Stock split ratio | 0.01 | ||||||
Common stock, shares issued | shares | 24,107,660 | 17,180,000 | |||||
Common stock, shares authorized | shares | 75,000,000 | 25,000,000 | |||||
Proceeds from issuance of common stock, net of offering costs | $ 116,054,000 | ||||||
Deferred tax liability | 13,181,000 | ||||||
Other than temporary impairment | 0 | $ 0 | $ 0 | ||||
Loans individually evaluated for impairment | 12,951,000 | 15,576,000 | 23,782,000 | ||||
Loans collectively evaluated for impairment | 1,819,775,000 | 1,664,912,000 | 1,392,114,000 | ||||
Impairment losses on mortgage servicing rights | 4,678,000 | 194,000 | 0 | ||||
Goodwill impairment loss | $ 0 | 0 | |||||
Income tax examination, description | A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | ||||||
Interest and penalties on uncertain tax positions | $ 0 | 0 | 0 | ||||
Impairment of long-lived assets | $ 0 | 0 | |||||
Number of methods to deliver mortgage loans | Method | 2 | ||||||
Advertising costs | $ 10,608,000 | $ 7,866,000 | $ 2,873,000 | ||||
Dilutive instruments outstanding | shares | 146,992 | 0 | 0 | ||||
Premises | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 40 years | ||||||
Residential Mortgage Loans | |||||||
Class Of Stock [Line Items] | |||||||
Residential mortgage loans transferred by bank | $ 18,000,000 | $ 5,000,000 | $ 5,100,000 | ||||
Mortgage Loans | |||||||
Class Of Stock [Line Items] | |||||||
Net (losses) gains from fair value changes of mortgage loans | $ (2,289,000) | $ 2,257,000 | $ 5,095,000 | ||||
Pro forma | |||||||
Class Of Stock [Line Items] | |||||||
Effective tax rate | 36.75% | 35.08% | 35.63% | ||||
Initial Public Offering | |||||||
Class Of Stock [Line Items] | |||||||
Common stock sold and issued, shares | shares | 6,764,704 | ||||||
Common stock sold and issued, price per share | $ / shares | $ 19 | ||||||
Proceeds from issuance of common stock, net of offering costs | $ 115,525,000 | ||||||
Distribution to majority shareholder from net proceeds | 55,000,000 | ||||||
Repayments of aggregate principal amount of subordinated notes from net proceeds | $ 10,075,000 | $ 10,075,000 | |||||
Minimum | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 171,800 | ||||||
Common stock, shares authorized | shares | 250,000 | 25,000,000 | |||||
Minimum | Furniture and Fixtures | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 7 years | ||||||
Minimum | Equipment | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
Minimum | Commercial and Commercial Real Estate Loans | |||||||
Class Of Stock [Line Items] | |||||||
Loans individually evaluated for impairment | $ 250,000 | ||||||
Maximum | |||||||
Class Of Stock [Line Items] | |||||||
Common stock, shares issued | shares | 17,180,000 | ||||||
Common stock, shares authorized | shares | 25,000,000 | 75,000,000 | |||||
Maximum | Furniture and Fixtures | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 10 years | ||||||
Maximum | Leasehold Improvements | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 20 years | ||||||
Maximum | Equipment | |||||||
Class Of Stock [Line Items] | |||||||
Property, plant and equipment, useful life | 7 years | ||||||
Maximum | Commercial and Commercial Real Estate Loans | |||||||
Class Of Stock [Line Items] | |||||||
Loans collectively evaluated for impairment | $ 250,000 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Basic earnings per share calculation: | |||
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Weighted-average basic shares outstanding | 19,165,182 | 17,180,000 | 17,180,000 |
Basic earnings per share | $ 2.12 | $ 2.79 | $ 1.89 |
Diluted earnings per share: | |||
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Weighted-average basic shares outstanding | 19,165,182 | 17,180,000 | 17,180,000 |
Average diluted common shares outstanding | 146,992 | 0 | 0 |
Weighted-average diluted shares outstanding | 19,312,174 | 17,180,000 | 17,180,000 |
Diluted earnings per share | $ 2.10 | $ 2.79 | $ 1.89 |
Unaudited pro forma earnings per share: | |||
Pro forma net income | $ 39,422 | $ 32,995 | $ 22,356 |
Weighted-average basic shares outstanding | 19,165,182 | 17,180,000 | 17,180,000 |
Pro forma basic earnings per share | $ 2.06 | $ 1.92 | $ 1.30 |
Unaudited pro forma diluted earnings per share: | |||
Pro forma net income | $ 39,422 | $ 32,995 | $ 22,356 |
Weighted-average diluted shares outstanding | 19,312,174 | 17,180,000 | 17,180,000 |
Pro forma diluted earnings per share | $ 2.04 | $ 1.92 | $ 1.30 |
Mergers and acquisitions - Addi
Mergers and acquisitions - Additional Information (Details) | Feb. 08, 2017USD ($) | Sep. 18, 2015USD ($) | Dec. 31, 2016USD ($)BankingOfficeBranch | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||
Assets | $ 3,276,881,000 | $ 2,899,420,000 | $ 2,428,189,000 | ||
Loans | 5,730,000 | ||||
Deposits | 2,671,562,000 | 2,438,474,000 | |||
Business combination, bargain purchase gain | 2,794,000 | ||||
Business combination, deferred taxes | 21,956,000 | 2,831,000 | |||
Merger and conversion | $ 3,268,000 | 3,543,000 | |||
Clayton Banks | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 | ||||
Assets | $ 1,195,000,000 | ||||
Loans | 1,052,000,000 | ||||
Deposits | $ 920,000,000 | ||||
Number of banking offices | BankingOffice | 18 | ||||
Clayton Banks | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 | ||||
Acquisition value | $ 284,200,000 | ||||
Northwest Georgia Bank | |||||
Business Acquisition [Line Items] | |||||
Business acquisition, date of acquisition agreement | Apr. 27, 2015 | ||||
Business acquisition, effective date of acquisition | Sep. 18, 2015 | ||||
Number of branches operated prior to acquisition | Branch | 6 | ||||
Cash purchase price | $ 1,500,000 | ||||
Business combination, bargain purchase gain | 2,794,000 | ||||
Core deposit intangible asset | $ 4,931,000 | ||||
Estimated useful life of intangible assets | 10 years | ||||
Business combination, deferred taxes | $ 0 | ||||
Deferred tax liability recorded in bargain purchase gain | $ 191,000 | ||||
Number of years of deductibility for income tax of the core deposit intangible | 15 years | ||||
Merger and conversion | $ 3,268,000 | $ 3,543,000 |
Mergers and acquisitions - Sche
Mergers and acquisitions - Schedule of Final Allocation of Purchase Price to Assets and Liabilities Acquired in Connection with Merger (Details) - USD ($) $ in Thousands | Sep. 18, 2015 | Dec. 31, 2015 |
Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed: | ||
Bargain purchase gain | $ 2,794 | |
Northwest Georgia Bank | ||
Final Allocation of Purchase Price for Northwest Georgia Bank: | ||
Total cash purchase price | $ 1,500 | |
Net assets acquired: | ||
Stockholders' equity at September 18, 2015 | 6,478 | |
Increase (decrease) to net assets as a result of fair value adjustments to assets acquired and liabilities assumed: | ||
Securities | 535 | |
Loans, net of the reversal of NWGB's allowance for loan losses of $4,383 | (8,024) | |
Premises and equipment | 3,731 | |
Core deposits intangible | 4,931 | |
Foreclosed real estate | (1,922) | |
Other assets | (264) | |
Deposits | (302) | |
FHLB funds purchased | (378) | |
Other liabilities | (491) | |
Total net fair value adjustments | 4,294 | |
Bargain purchase gain | $ 2,794 |
Mergers and acquisitions - Sc63
Mergers and acquisitions - Schedule of Final Allocation of Purchase Price to Assets and Liabilities Acquired in Connection with Merger (Parenthetical) (Details) $ in Thousands | Sep. 18, 2015USD ($) |
Northwest Georgia Bank | |
Business Acquisition [Line Items] | |
Net reversal allowance for loan losses | $ 4,383 |
Mergers and acquisitions - Sc64
Mergers and acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 18, 2015 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Bargain purchase gain | $ 2,794 | |
Northwest Georgia Bank | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | $ 25,495 | |
Securities available-for-sale | 134,278 | |
Loans | 78,565 | |
Premises and equipment | 15,343 | |
Intangible assets | 4,931 | |
Foreclosed real estate | 5,002 | |
Other assets | 8,735 | |
Total Assets | 272,349 | |
Deposits | 246,216 | |
Borrowings | 20,378 | |
Other liabilities | 1,461 | |
Total Liabilities | 268,055 | |
Total cash purchase price | 1,500 | |
Bargain purchase gain | $ 2,794 |
Mergers and acquisitions - Sc65
Mergers and acquisitions - Schedule of Fair Value of Loans Acquired from Business Combination (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 18, 2015 |
Business Acquisition [Line Items] | |||
Nonaccretable difference | $ (4,459) | $ (8,369) | |
Northwest Georgia Bank | |||
Business Acquisition [Line Items] | |||
Contractually-required principal and interest | $ 91,079 | ||
Nonaccretable difference | (8,578) | ||
Cash flows expected to be collected | 82,501 | ||
Accretable yield | (3,936) | ||
Fair value | $ 78,565 |
Mergers and acquisitions - Busi
Mergers and acquisitions - Business Acquisition, Pro Forma Information (Details) - Northwest Georgia Bank - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Interest income | $ 108,857 | $ 104,055 |
Interest expense | 9,631 | 10,663 |
Net interest income | 99,226 | 93,392 |
Provision for loan losses | (3,064) | (2,404) |
Noninterest income | 91,776 | 54,131 |
Noninterest expense | 145,060 | 117,473 |
Income before income taxes | 49,006 | 32,454 |
Income taxes | 2,964 | 2,296 |
Net income | $ 46,042 | $ 30,158 |
Earnings per share | ||
Basic | $ 2.68 | $ 1.76 |
Diluted | $ 2.68 | $ 1.76 |
Cash and Cash Equivalents Con67
Cash and Cash Equivalents Concentrations - Schedule of Amounts Due from Correspondent Institutions having Concentration of Credit Risk (Details) - Credit Concentration Risk - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | $ 106,828 | $ 64,329 |
First Tennessee Bank, N.A. | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 26,381 | 32,497 |
Federal Reserve Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 61,623 | 20,460 |
JP Morgan Chase | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 2,272 | 4,596 |
Fifth Third Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 1,598 | 879 |
Compass Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 987 | 684 |
Zions Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 501 | 500 |
Columbus Bank and Trust | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 1,062 | 444 |
Servis First Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 350 | 250 |
Sun Trust bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 232 | 232 |
PNC Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 213 | 219 |
First National Bankers Bank | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | 200 | 200 |
Federal Home Loan Bank of Cincinnati | ||
Concentration Risk [Line Items] | ||
Cash due from Correspondent institutions | $ 11,409 | $ 3,368 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 588,459 | $ 646,725 |
Gross unrealized gains | 3,943 | 8,570 |
Gross unrealized losses | (10,219) | (5,908) |
Available-for-sale securities, at fair value | 582,183 | 649,387 |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 579,715 | 637,754 |
Gross unrealized gains | 3,942 | 8,567 |
Gross unrealized losses | (10,084) | (5,818) |
Available-for-sale securities, at fair value | 573,573 | 640,503 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 998 | 34,161 |
Gross unrealized losses | (13) | (353) |
Available-for-sale securities, at fair value | 985 | 33,808 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 450,874 | 524,141 |
Gross unrealized gains | 939 | 3,675 |
Gross unrealized losses | (7,905) | (5,443) |
Available-for-sale securities, at fair value | 443,908 | 522,373 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 116,034 | 74,945 |
Gross unrealized gains | 3,003 | 4,892 |
Gross unrealized losses | (2,114) | |
Available-for-sale securities, at fair value | 116,923 | 79,837 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 11,809 | 4,507 |
Gross unrealized losses | (52) | (22) |
Available-for-sale securities, at fair value | 11,757 | 4,485 |
Equity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 8,744 | 8,971 |
Gross unrealized gains | 1 | 3 |
Gross unrealized losses | (135) | (90) |
Available-for-sale securities, at fair value | $ 8,610 | $ 8,884 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||
Securities pledged, carrying amount | $ | $ 390,814,000 | $ 525,253,000 | |
Number of securities in securities portfolio | security | 329 | 274 | |
Number of securities in securities portfolio, unrealized loss position | security | 151 | 64 | |
Other-than-temporary impairment recorded by the company | $ | $ 0 | $ 0 | $ 0 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | $ 9,290 | $ 6,849 |
Amortized cost, Due in one to five | 25,520 | 44,108 |
Amortized cost, Due in five to ten years | 31,122 | 29,964 |
Amortized cost, Due in over ten years | 62,909 | 32,692 |
Amortized cost, Total | 128,841 | 113,613 |
Total debt securities, Amortized cost | 579,715 | 637,754 |
Fair value, Due in one year or less | 9,352 | 6,886 |
Fair value, Due in one to five | 26,340 | 44,358 |
Fair value, Due in five to ten years | 32,248 | 31,927 |
Fair value, Due in over ten years | 61,725 | 34,959 |
Fair value, Total | 129,665 | 118,130 |
Total debt securities, Fair value | 573,573 | 640,503 |
Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total debt securities, Amortized cost | 450,874 | 524,141 |
Total debt securities, Fair value | $ 443,908 | $ 522,373 |
Investment Securities - Summa71
Investment Securities - Summary of Sales of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Available For Sale Securities Gross Realized Gain Loss [Abstract] | |||
Proceeds from sales | $ 271,148 | $ 194,611 | $ 68,900 |
Gross realized gains | 4,755 | $ 1,844 | $ 2,000 |
Gross realized losses | $ 348 |
Investment Securities - Sched72
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 444,968 | $ 240,128 |
Unrealized Loss, Less than 12 months | 9,409 | 1,924 |
Fair Value, 12 months or more | 22,199 | 140,866 |
Unrealized Loss, 12 months or more | 810 | 3,984 |
Fair Value, Total | 467,167 | 380,994 |
Unrealized Losses, Total | 10,219 | 5,908 |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 444,968 | 240,128 |
Unrealized Loss, Less than 12 months | 9,409 | 1,924 |
Fair Value, 12 months or more | 19,073 | 139,283 |
Unrealized Loss, 12 months or more | 675 | 3,894 |
Fair Value, Total | 464,041 | 379,411 |
Unrealized Losses, Total | 10,084 | 5,818 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 985 | 15,887 |
Unrealized Loss, Less than 12 months | 13 | 124 |
Fair Value, 12 months or more | 17,921 | |
Unrealized Loss, 12 months or more | 229 | |
Fair Value, Total | 985 | 33,808 |
Unrealized Losses, Total | 13 | 353 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 390,595 | 219,756 |
Unrealized Loss, Less than 12 months | 7,230 | 1,778 |
Fair Value, 12 months or more | 19,073 | 121,362 |
Unrealized Loss, 12 months or more | 675 | 3,665 |
Fair Value, Total | 409,668 | 341,118 |
Unrealized Losses, Total | 7,905 | 5,443 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 43,132 | 4,485 |
Unrealized Loss, Less than 12 months | 2,114 | 22 |
Fair Value, Total | 43,132 | 4,485 |
Unrealized Losses, Total | 2,114 | 22 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 10,256 | |
Unrealized Loss, Less than 12 months | 52 | |
Fair Value, Total | 10,256 | |
Unrealized Losses, Total | 52 | |
Equity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, 12 months or more | 3,126 | 1,583 |
Unrealized Loss, 12 months or more | 135 | 90 |
Fair Value, Total | 3,126 | 1,583 |
Unrealized Losses, Total | $ 135 | $ 90 |
Loans and Allowance for Loan 73
Loans and Allowance for Loan Losses - Loans Outstanding by Major Lending Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | $ 1,848,784 | $ 1,701,863 | $ 1,415,896 | |
Less: Allowance for loan losses | (21,747) | (24,460) | (29,030) | $ (32,353) |
Net loans | 1,827,037 | 1,677,403 | ||
Commercial and Industrial | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 386,233 | 318,791 | 265,818 | |
Less: Allowance for loan losses | (5,309) | (5,135) | (6,600) | (6,756) |
Construction | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 245,905 | 238,170 | 165,957 | |
Less: Allowance for loan losses | (4,940) | (5,143) | (3,721) | (5,033) |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 294,924 | 290,704 | 266,641 | |
Less: Allowance for loan losses | (3,197) | (4,176) | (6,364) | (7,211) |
Residential Real Estate | Residential Line of Credit | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 177,190 | 171,526 | 159,868 | |
Less: Allowance for loan losses | (1,613) | (2,201) | (2,790) | (2,775) |
Residential Real Estate | Multi-Family Mortgage | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 44,977 | 59,510 | 52,238 | |
Less: Allowance for loan losses | (504) | (311) | (184) | (342) |
Commercial Real Estate | Owner Occupied | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 357,346 | 337,664 | 291,161 | |
Less: Allowance for loan losses | (3,302) | (3,682) | (6,075) | (5,659) |
Commercial Real Estate | Non-Owner Occupied | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 267,902 | 207,871 | 151,980 | |
Less: Allowance for loan losses | (2,019) | (2,622) | (2,641) | (3,438) |
Consumer and Other | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 74,307 | 77,627 | 62,233 | |
Less: Allowance for loan losses | $ (863) | $ (1,190) | $ (655) | $ (1,139) |
Loans and Allowance for Loan 74
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Gross loans | $ 1,848,784,000 | $ 1,415,896,000 | $ 1,701,863,000 |
Acquired with deteriorated credit quality | 16,058,000 | 21,375,000 | |
Recorded investment in troubled debt restructurings | 8,802,000 | 15,289,000 | |
Allocation to specific reserves | 402,000 | 946,000 | |
Commitments to lend additional amounts to customers | 1,000 | 69,000 | |
Non-accrual loans | 4,265,000 | 5,898,000 | |
Payment default for loans modified as troubled debt restructurings | 0 | $ 0 | |
FHLB Cincinnati | 1-to-4 Family Mortgage And Loans Held for Sale | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Gross loans | 525,180,000 | 26,089,000 | |
FHLB Cincinnati | Multi-Family Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Gross loans | $ 40,537,000 | $ 43,825,000 |
Loans and Allowance for Loan 75
Loans and Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | $ 24,460 | $ 29,030 | $ 32,353 |
Provision for loan losses | (1,479) | (3,064) | (2,716) |
Recoveries of loans previously charged-off | 1,616 | 2,838 | 5,754 |
Loans charged off | (2,850) | (4,344) | (6,361) |
Ending balance | 21,747 | 24,460 | 29,030 |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 5,135 | 6,600 | 6,756 |
Provision for loan losses | 212 | (624) | 748 |
Recoveries of loans previously charged-off | 524 | 112 | 610 |
Loans charged off | (562) | (953) | (1,514) |
Ending balance | 5,309 | 5,135 | 6,600 |
Construction | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 5,143 | 3,721 | 5,033 |
Provision for loan losses | (417) | 149 | (1,559) |
Recoveries of loans previously charged-off | 216 | 1,354 | 539 |
Loans charged off | (2) | (81) | (292) |
Ending balance | 4,940 | 5,143 | 3,721 |
Residential Real Estate | 1-to-4 Family Mortgage | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 4,176 | 6,364 | 7,211 |
Provision for loan losses | (882) | (1,521) | 417 |
Recoveries of loans previously charged-off | 127 | 161 | 222 |
Loans charged off | (224) | (828) | (1,486) |
Ending balance | 3,197 | 4,176 | 6,364 |
Residential Real Estate | Residential Line of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 2,201 | 2,790 | 2,775 |
Provision for loan losses | (630) | (645) | 311 |
Recoveries of loans previously charged-off | 174 | 286 | 166 |
Loans charged off | (132) | (230) | (462) |
Ending balance | 1,613 | 2,201 | 2,790 |
Residential Real Estate | Multi-Family Mortgage | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 311 | 184 | 342 |
Provision for loan losses | 193 | 127 | (3,223) |
Recoveries of loans previously charged-off | 3,065 | ||
Ending balance | 504 | 311 | 184 |
Commercial Real Estate | Owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 3,682 | 6,075 | 5,659 |
Provision for loan losses | (271) | (1,366) | 942 |
Recoveries of loans previously charged-off | 140 | 35 | 162 |
Loans charged off | (249) | (1,062) | (688) |
Ending balance | 3,302 | 3,682 | 6,075 |
Commercial Real Estate | Non-Owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 2,622 | 2,641 | 3,438 |
Provision for loan losses | (271) | (307) | (357) |
Recoveries of loans previously charged-off | 195 | 342 | 568 |
Loans charged off | (527) | (54) | (1,008) |
Ending balance | 2,019 | 2,622 | 2,641 |
Consumer and Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Beginning balance | 1,190 | 655 | 1,139 |
Provision for loan losses | 587 | 1,123 | 5 |
Recoveries of loans previously charged-off | 240 | 548 | 422 |
Loans charged off | (1,154) | (1,136) | (911) |
Ending balance | $ 863 | $ 1,190 | $ 655 |
Loans and Allowance for Loan 76
Loans and Allowance for Loan Losses - Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | $ 513 | $ 973 | $ 2,825 | |
Collectively evaluated for impairment | 21,234 | 23,487 | 26,205 | |
Ending balance | 21,747 | 24,460 | 29,030 | $ 32,353 |
Commercial and Industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 135 | 89 | 892 | |
Collectively evaluated for impairment | 5,174 | 5,046 | 5,708 | |
Ending balance | 5,309 | 5,135 | 6,600 | 6,756 |
Construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 5 | 122 | ||
Collectively evaluated for impairment | 4,940 | 5,138 | 3,599 | |
Ending balance | 4,940 | 5,143 | 3,721 | 5,033 |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 23 | 66 | 458 | |
Collectively evaluated for impairment | 3,174 | 4,110 | 5,906 | |
Ending balance | 3,197 | 4,176 | 6,364 | 7,211 |
Residential Real Estate | Residential Line of Credit | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 1,613 | 2,201 | 2,790 | |
Ending balance | 1,613 | 2,201 | 2,790 | 2,775 |
Residential Real Estate | Multi-Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 80 | |||
Collectively evaluated for impairment | 504 | 311 | 104 | |
Ending balance | 504 | 311 | 184 | 342 |
Commercial Real Estate | Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 113 | 74 | 373 | |
Collectively evaluated for impairment | 3,189 | 3,608 | 5,702 | |
Ending balance | 3,302 | 3,682 | 6,075 | 5,659 |
Commercial Real Estate | Non-Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 242 | 739 | 900 | |
Collectively evaluated for impairment | 1,777 | 1,883 | 1,741 | |
Ending balance | 2,019 | 2,622 | 2,641 | 3,438 |
Consumer and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 863 | 1,190 | 655 | |
Ending balance | $ 863 | $ 1,190 | $ 655 | $ 1,139 |
Loans and Allowance for Loan 77
Loans and Allowance for Loan Losses - Amount of Loans by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | $ 12,951 | $ 15,576 | $ 23,782 |
Collectively evaluated for impairment | 1,819,775 | 1,664,912 | 1,392,114 |
Acquired with deteriorated credit quality | 16,058 | 21,375 | |
Gross loans | 1,848,784 | 1,701,863 | 1,415,896 |
Commercial and Industrial | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 1,476 | 1,499 | 2,340 |
Collectively evaluated for impairment | 384,279 | 316,418 | 263,478 |
Acquired with deteriorated credit quality | 478 | 874 | |
Gross loans | 386,233 | 318,791 | 265,818 |
Construction | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 2,686 | 2,866 | 6,840 |
Collectively evaluated for impairment | 238,900 | 228,445 | 159,117 |
Acquired with deteriorated credit quality | 4,319 | 6,859 | |
Gross loans | 245,905 | 238,170 | 165,957 |
Residential Real Estate | 1-to-4 Family Mortgage | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 2,471 | 3,686 | 6,633 |
Collectively evaluated for impairment | 290,346 | 284,190 | 260,008 |
Acquired with deteriorated credit quality | 2,107 | 2,828 | |
Gross loans | 294,924 | 290,704 | 266,641 |
Residential Real Estate | Residential Line of Credit | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 311 | ||
Collectively evaluated for impairment | 176,879 | 171,526 | 159,868 |
Gross loans | 177,190 | 171,526 | 159,868 |
Residential Real Estate | Multi-Family Mortgage | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 1,027 | 1,074 | 1,165 |
Collectively evaluated for impairment | 43,922 | 58,400 | 51,073 |
Acquired with deteriorated credit quality | 28 | 36 | |
Gross loans | 44,977 | 59,510 | 52,238 |
Commercial Real Estate | Owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 2,752 | 3,000 | 3,473 |
Collectively evaluated for impairment | 350,812 | 329,569 | 287,688 |
Acquired with deteriorated credit quality | 3,782 | 5,095 | |
Gross loans | 357,346 | 337,664 | 291,161 |
Commercial Real Estate | Non-Owner Occupied | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 2,201 | 3,451 | 3,314 |
Collectively evaluated for impairment | 260,361 | 198,741 | 148,666 |
Acquired with deteriorated credit quality | 5,340 | 5,679 | |
Gross loans | 267,902 | 207,871 | 151,980 |
Consumer and Other | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Individually evaluated for impairment | 27 | 17 | |
Collectively evaluated for impairment | 74,276 | 77,623 | 62,216 |
Acquired with deteriorated credit quality | 4 | 4 | |
Gross loans | $ 74,307 | $ 77,627 | $ 62,233 |
Loans and Allowance for Loan 78
Loans and Allowance for Loan Losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | $ 1,848,784 | $ 1,701,863 | $ 1,415,896 |
Pass | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 1,744,392 | 1,605,904 | |
Watch | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 65,807 | 47,430 | |
Substandard | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 38,585 | 48,529 | |
Commercial and Industrial | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 386,233 | 318,791 | 265,818 |
Commercial and Industrial | Pass | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 351,046 | 310,997 | |
Commercial and Industrial | Watch | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 31,074 | 2,166 | |
Commercial and Industrial | Substandard | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 4,113 | 5,628 | |
Construction | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 245,905 | 238,170 | 165,957 |
Construction | Pass | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 236,588 | 226,829 | |
Construction | Watch | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 4,612 | 3,238 | |
Construction | Substandard | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 4,705 | 8,103 | |
Residential Real Estate | 1-to-4 Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 294,924 | 290,704 | 266,641 |
Residential Real Estate | Residential Line of Credit | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 177,190 | 171,526 | 159,868 |
Residential Real Estate | Multi-Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 44,977 | 59,510 | 52,238 |
Residential Real Estate | Pass | 1-to-4 Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 277,948 | 271,001 | |
Residential Real Estate | Pass | Residential Line of Credit | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 173,011 | 165,838 | |
Residential Real Estate | Pass | Multi-Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 43,770 | 58,234 | |
Residential Real Estate | Watch | 1-to-4 Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 6,945 | 9,367 | |
Residential Real Estate | Watch | Residential Line of Credit | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 1,875 | 3,069 | |
Residential Real Estate | Watch | Multi-Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 152 | 166 | |
Residential Real Estate | Substandard | 1-to-4 Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 10,031 | 10,336 | |
Residential Real Estate | Substandard | Residential Line of Credit | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 2,304 | 2,619 | |
Residential Real Estate | Substandard | Multi-Family Mortgage | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 1,055 | 1,110 | |
Commercial Real Estate | Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 357,346 | 337,664 | 291,161 |
Commercial Real Estate | Non-Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 267,902 | 207,871 | 151,980 |
Commercial Real Estate | Pass | Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 338,698 | 318,221 | |
Commercial Real Estate | Pass | Non-Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 249,877 | 178,269 | |
Commercial Real Estate | Watch | Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 10,459 | 8,789 | |
Commercial Real Estate | Watch | Non-Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 10,273 | 20,158 | |
Commercial Real Estate | Substandard | Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 8,189 | 10,654 | |
Commercial Real Estate | Substandard | Non-Owner Occupied | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 7,752 | 9,444 | |
Consumer and Other | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 74,307 | 77,627 | $ 62,233 |
Consumer and Other | Pass | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 73,454 | 76,515 | |
Consumer and Other | Watch | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | 417 | 477 | |
Consumer and Other | Substandard | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Gross loans | $ 436 | $ 635 |
Loans and Allowance for Loan 79
Loans and Allowance for Loan Losses - Purchased Credit Impaired (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | $ 16,058 | $ 21,375 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 478 | 874 |
Construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 4,319 | 6,859 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 2,107 | 2,828 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 28 | 36 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 3,782 | 5,095 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | 5,340 | 5,679 |
Consumer and Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Acquired with deteriorated credit quality | $ 4 | $ 4 |
Loans and Allowance for Loan 80
Loans and Allowance for Loan Losses - Current Value of Loans Purchased Credit Impaired at the Time of Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Contractually-required principal and interest | $ 22,961 | $ 31,381 |
Nonaccretable difference | (4,459) | (8,369) |
Cash flows expected to be collected | 18,502 | 23,012 |
Accretable yield | (2,444) | (1,637) |
Carrying value | $ 16,058 | $ 21,375 |
Loans and Allowance for Loan 81
Loans and Allowance for Loan Losses - Changes in Accretable Yield and Nonaccretable Difference of Purchased Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Accretable yield, Beginning balance | $ (1,637) | |
Accretable yield, Accretion | 3,538 | $ 254 |
Accretable yield, Ending balance | (2,444) | (1,637) |
Nonaccretable difference, Beginning balance | (8,369) | |
Nonaccretable difference, Ending balance | (4,459) | (8,369) |
Beginning balance | (12,223) | |
Additions through acquisition | (12,514) | |
Principal reductions/ pay-offs | 239 | |
Adjustments to assumptions | (202) | |
Charge-offs | 472 | |
Sale of credit card portfolio | 70 | |
Accretion | 3,538 | 254 |
Ending balance | (8,143) | (12,223) |
Purchased Credit Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accretable yield, Beginning balance | (1,637) | |
Accretable yield, Additions through acquisition | (1,991) | |
Accretable yield, Principal reductions/ pay-offs | (3,438) | 100 |
Accretable yield, Accretion | 2,631 | 254 |
Accretable yield, Ending balance | (2,444) | (1,637) |
Nonaccretable difference, Beginning balance | (8,369) | |
Nonaccretable difference, Additions through acquisition | (8,508) | |
Nonaccretable difference, Principal reductions/ pay-offs | 3,438 | 139 |
Nonaccretable difference, Charge-offs | 472 | |
Nonaccretable difference, Ending balance | (4,459) | (8,369) |
Purchased Non-impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Accretable yield, Beginning balance | (2,147) | |
Accretable yield, Additions through acquisition | (1,945) | |
Accretable yield, Adjustments to assumptions | (202) | |
Accretable yield, Accretion | 907 | |
Accretable yield, Ending balance | (1,240) | (2,147) |
Nonaccretable difference, Beginning balance | (70) | |
Nonaccretable difference, Additions through acquisition | (70) | |
Nonaccretable difference, Sale of credit card portfolio | $ 70 | |
Nonaccretable difference, Ending balance | $ (70) |
Loans and Allowance for Loan 82
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 1,832,726 | $ 1,680,488 |
Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,729 | 10,700 |
30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 5,749 | 4,988 |
90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,329 | 887 |
Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,816,919 | 1,663,913 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 385,755 | 317,917 |
Commercial and Industrial | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,297 | 1,659 |
Commercial and Industrial | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 262 | 283 |
Commercial and Industrial | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 127 | 73 |
Commercial and Industrial | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 384,069 | 315,902 |
Construction | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 241,586 | 231,311 |
Construction | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 254 | 272 |
Construction | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 441 | 81 |
Construction | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 17 | 33 |
Construction | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 240,874 | 230,925 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 292,817 | 287,876 |
Residential Real Estate | 1-to-4 Family Mortgage | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,289 | 2,124 |
Residential Real Estate | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 177,190 | 171,526 |
Residential Real Estate | Residential Line of Credit | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 601 | 1,114 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 44,949 | 59,474 |
Residential Real Estate | 30-89 Days Past Due | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,130 | 2,798 |
Residential Real Estate | 30-89 Days Past Due | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,139 | 1,053 |
Residential Real Estate | 90 Days or More and Accruing Interest | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 697 | 268 |
Residential Real Estate | 90 Days or More and Accruing Interest | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 433 | 323 |
Residential Real Estate | Financing Receivables Current | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 286,701 | 282,686 |
Residential Real Estate | Financing Receivables Current | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 175,017 | 169,036 |
Residential Real Estate | Financing Receivables Current | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 44,949 | 59,474 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 353,564 | 332,569 |
Commercial Real Estate | Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,007 | 1,974 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 262,562 | 202,192 |
Commercial Real Estate | Non-Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,251 | 3,512 |
Commercial Real Estate | 30-89 Days Past Due | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 186 | 442 |
Commercial Real Estate | 30-89 Days Past Due | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 158 | |
Commercial Real Estate | Financing Receivables Current | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 351,371 | 330,153 |
Commercial Real Estate | Financing Receivables Current | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 260,153 | 198,680 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 74,303 | 77,623 |
Consumer and Other | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 30 | 45 |
Consumer and Other | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 433 | 331 |
Consumer and Other | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 55 | 190 |
Consumer and Other | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 73,785 | $ 77,057 |
Loans and Allowance for Loan 83
Loans and Allowance for Loan Losses - Impaired Loans Recognized, Segregated by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | $ 2,744 | $ 10,116 | |
Impaired loans with related allowance, Unpaid principal | 3,556 | 10,237 | |
Impaired loans with related allowance, Related allowance | 513 | 973 | |
Impaired loan with no related allowance, Recorded investment | 10,207 | 5,460 | |
Impaired loan with no related allowance, Unpaid principal | 12,170 | 6,924 | |
Total impaired loans, Recorded investment | 12,951 | 15,576 | |
Total impaired loans, Unpaid principal | 15,726 | 17,161 | |
Total impaired loans, Related allowance | 513 | 973 | |
Impaired loan with no related allowance, Average recorded investment | 7,835 | 10,107 | $ 17,499 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 455 | 159 | 563 |
Impaired loans with related allowance, Average recorded investment | 6,432 | 9,576 | 17,870 |
Impaired loans with related allowance, Interest income recognized (cash basis) | 43 | 319 | 86 |
Total impaired loans, Average recorded investment | 14,267 | 19,683 | 35,369 |
Total impaired loans, Interest income recognized (cash basis) | 498 | 478 | 649 |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 854 | 1,133 | |
Impaired loans with related allowance, Unpaid principal | 854 | 1,133 | |
Impaired loans with related allowance, Related allowance | 135 | 89 | |
Impaired loan with no related allowance, Recorded investment | 622 | 366 | |
Impaired loan with no related allowance, Unpaid principal | 746 | 993 | |
Impaired loan with no related allowance, Average recorded investment | 494 | 660 | 559 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 20 | 23 | |
Impaired loans with related allowance, Average recorded investment | 994 | 1,269 | 1,551 |
Impaired loans with related allowance, Interest income recognized (cash basis) | 17 | 22 | 35 |
Construction | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 308 | ||
Impaired loans with related allowance, Unpaid principal | 308 | ||
Impaired loans with related allowance, Related allowance | 5 | ||
Impaired loan with no related allowance, Recorded investment | 2,686 | 2,558 | |
Impaired loan with no related allowance, Unpaid principal | 2,694 | 2,558 | |
Impaired loan with no related allowance, Average recorded investment | 2,622 | 4,337 | 4,058 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 132 | 127 | 129 |
Impaired loans with related allowance, Average recorded investment | 154 | 517 | 3,175 |
Impaired loans with related allowance, Interest income recognized (cash basis) | 3 | ||
Residential Real Estate | 1-to-4 Family Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 103 | 3,397 | |
Impaired loans with related allowance, Unpaid principal | 369 | 3,398 | |
Impaired loans with related allowance, Related allowance | 23 | 66 | |
Impaired loan with no related allowance, Recorded investment | 2,368 | 289 | |
Impaired loan with no related allowance, Unpaid principal | 2,370 | 289 | |
Impaired loan with no related allowance, Average recorded investment | 1,329 | 2,815 | 4,389 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 137 | 7 | 170 |
Impaired loans with related allowance, Average recorded investment | 1,750 | 2,345 | 3,971 |
Impaired loans with related allowance, Interest income recognized (cash basis) | 1 | 199 | 29 |
Residential Real Estate | Residential Line of Credit | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Recorded investment | 311 | ||
Impaired loan with no related allowance, Unpaid principal | 321 | ||
Impaired loan with no related allowance, Average recorded investment | 156 | ||
Impaired loan with no related allowance, Interest income recognized (cash basis) | 10 | ||
Residential Real Estate | Multi-Family Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Recorded investment | 1,027 | 1,074 | |
Impaired loan with no related allowance, Unpaid principal | 1,027 | 1,074 | |
Impaired loan with no related allowance, Average recorded investment | 1,051 | 652 | 1,710 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 37 | 25 | |
Impaired loans with related allowance, Average recorded investment | 468 | 974 | |
Commercial Real Estate | Owner Occupied | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 635 | 2,876 | |
Impaired loans with related allowance, Unpaid principal | 654 | 2,996 | |
Impaired loans with related allowance, Related allowance | 113 | 74 | |
Impaired loan with no related allowance, Recorded investment | 2,117 | 123 | |
Impaired loan with no related allowance, Unpaid principal | 3,205 | 229 | |
Impaired loan with no related allowance, Average recorded investment | 1,120 | 788 | 1,325 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 119 | 66 | |
Impaired loans with related allowance, Average recorded investment | 1,756 | 1,938 | 3,716 |
Impaired loans with related allowance, Interest income recognized (cash basis) | 25 | 95 | 22 |
Commercial Real Estate | Non-Owner Occupied | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 1,151 | 2,402 | |
Impaired loans with related allowance, Unpaid principal | 1,678 | 2,402 | |
Impaired loans with related allowance, Related allowance | 242 | 739 | |
Impaired loan with no related allowance, Recorded investment | 1,050 | 1,050 | |
Impaired loan with no related allowance, Unpaid principal | 1,781 | 1,781 | |
Impaired loan with no related allowance, Average recorded investment | 1,050 | 855 | 5,458 |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 175 | ||
Impaired loans with related allowance, Average recorded investment | 1,777 | $ 3,039 | $ 4,483 |
Consumer and Other | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 1 | ||
Impaired loans with related allowance, Unpaid principal | 1 | ||
Impaired loan with no related allowance, Recorded investment | 26 | ||
Impaired loan with no related allowance, Unpaid principal | 26 | ||
Impaired loan with no related allowance, Average recorded investment | 13 | ||
Impaired loans with related allowance, Average recorded investment | $ 1 |
Loans and Allowance for Loan 84
Loans and Allowance for Loan Losses - Financial Effect of TDRs (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)loan | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 9 | 16 | 3 |
Pre-modification outstanding recorded investment | $ 1,966 | $ 3,546 | $ 4,994 |
Post-modification outstanding recorded investment | $ 1,966 | 3,546 | $ 4,994 |
Charge offs and specific reserves | $ 132 | ||
Commercial and Industrial | |||
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 6 | 2 | |
Pre-modification outstanding recorded investment | $ 2,301 | $ 3,931 | |
Post-modification outstanding recorded investment | 2,301 | $ 3,931 | |
Charge offs and specific reserves | $ 86 | ||
Commercial Real Estate | Owner Occupied | |||
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 1 | 4 | |
Pre-modification outstanding recorded investment | $ 118 | $ 786 | |
Post-modification outstanding recorded investment | $ 118 | $ 786 | |
Commercial Real Estate | Non-Owner Occupied | |||
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 1 | 1 | |
Pre-modification outstanding recorded investment | $ 133 | $ 1,063 | |
Post-modification outstanding recorded investment | 133 | $ 1,063 | |
Charge offs and specific reserves | 1 | ||
Residential Real Estate | |||
Troubled Debt Restructurings [Line Items] | |||
Charge offs and specific reserves | $ 45 | ||
Residential Real Estate | 1-to-4 Family Mortgage | |||
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 5 | 5 | |
Pre-modification outstanding recorded investment | $ 1,819 | $ 326 | |
Post-modification outstanding recorded investment | $ 1,819 | 326 | |
Charge offs and specific reserves | $ 45 | ||
Consumer and Other | |||
Troubled Debt Restructurings [Line Items] | |||
Number of loans | loan | 3 | ||
Pre-modification outstanding recorded investment | $ 29 | ||
Post-modification outstanding recorded investment | $ 29 |
Loans and Allowance for Loan 85
Loans and Allowance for Loan Losses - Summary of Loans Modified as Troubled Debt Restructurings for Payment Default (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Troubled Debt Restructurings [Line Items] | |||
Defaulted | $ 0 | $ 0 | |
Charge offs and specific reserves | $ 132,000 | ||
Residential Real Estate | |||
Troubled Debt Restructurings [Line Items] | |||
Defaulted | 145,000 | ||
Charge offs and specific reserves | 45,000 | ||
Residential Real Estate | 1-to-4 Family Mortgage | |||
Troubled Debt Restructurings [Line Items] | |||
Defaulted | 145,000 | ||
Charge offs and specific reserves | $ 45,000 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment and Related Accumulated Depreciation (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 107,664 | $ 104,340 |
Less: accumulated depreciation | (41,013) | (38,448) |
Total Premises and Equipment | 66,651 | 65,892 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 18,698 | 19,253 |
Premises | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 44,301 | 43,419 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 21,700 | 20,421 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 10,515 | 8,276 |
Equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 11,583 | 9,851 |
Construction In Process | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 867 | $ 3,120 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 3,995 | $ 3,283 | $ 3,099 |
Contractual obligation for construction costs accrued | $ 0 | $ 586 |
Foreclosed Real Estate - Summar
Foreclosed Real Estate - Summary of Foreclosed Real Estate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Real Estate [Abstract] | |||
Balance at beginning of period | $ 11,641 | $ 7,259 | $ 8,796 |
Acquired through merger with NWGB | 5,002 | ||
Transfers from loans | 2,724 | 4,085 | 4,308 |
Capital improvements | 171 | ||
Properties sold | (6,696) | (3,774) | (4,738) |
Gain on sale of foreclosed assets | 1,670 | 187 | 464 |
Transferred to loans | (1,548) | (785) | (1,239) |
Write-downs and partial liquidations | (388) | (504) | (332) |
Balance at end of period | $ 7,403 | $ 11,641 | $ 7,259 |
Foreclosed Real Estate - Additi
Foreclosed Real Estate - Additional Information (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 2,143 | $ 3,187 |
Total foreclosure proceedings in process | $ 96 | $ 67 |
Goodwill and Intangible Asset90
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 46,867 | $ 46,904 | $ 46,904 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Schedule of Change in Balance for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | $ 6,695 | ||
Less: amortization expense | (2,132) | $ (1,731) | $ (1,613) |
Ending Balance | 4,563 | 6,695 | |
Core Deposits | |||
Finite Lived Intangible Assets [Line Items] | |||
Beginning Balance | 6,695 | 3,495 | 5,108 |
Less: amortization expense | (2,132) | (1,731) | (1,613) |
Ending Balance | $ 4,563 | 6,695 | $ 3,495 |
Core Deposits | Northwest Georgia Bank | |||
Finite Lived Intangible Assets [Line Items] | |||
Addition from merger with NWGB | $ 4,931 |
Goodwill and Other Intangible92
Goodwill and Other Intangible Assets - Schedule of Estimated Aggregate Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite Lived Intangible Assets [Line Items] | ||||
Total | $ 4,563 | $ 6,695 | ||
Core Deposits | ||||
Finite Lived Intangible Assets [Line Items] | ||||
December 31, 2017 | 762 | |||
December 31, 2018 | 493 | |||
December 31, 2019 | 493 | |||
December 31, 2020 | 493 | |||
December 31, 2021 | 493 | |||
Thereafter | 1,829 | |||
Total | $ 4,563 | $ 6,695 | $ 3,495 | $ 5,108 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Transfers And Servicing [Abstract] | |||
Carrying value at beginning of period | $ 29,711 | $ 6,032 | |
Capitalization | 46,070 | 26,474 | $ 6,429 |
Amortization | (8,321) | (2,601) | (397) |
Sales | (34,118) | ||
Gain on sale | 3,406 | ||
Impairment | (4,678) | (194) | |
Carrying value at December 31 | $ 32,070 | $ 29,711 | $ 6,032 |
Mortgage Servicing Rights - S94
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Transfers And Servicing [Abstract] | |||
Gross servicing income | $ 12,063 | $ 3,614 | $ 341 |
Servicing expenses: | |||
Servicing asset amortization | 8,321 | 2,601 | 397 |
Servicing asset impairment | 4,678 | 194 | |
Loss on sale of mortgage servicing rights | 4,447 | ||
Other servicing expenses | 2,325 | 633 | 140 |
Gross servicing expenses | 19,771 | 3,428 | 537 |
Net servicing (loss) income | $ (7,708) | $ 186 | $ (196) |
Mortgage Servicing Rights - S95
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Transfers And Servicing [Abstract] | ||
Unpaid principal balance | $ 2,833,958 | $ 2,545,449 |
Weighted-average prepayment speed (CPR) | 8.40% | 7.30% |
Estimated impact on fair value of a 10% increase | $ (1,256) | $ (371) |
Estimated impact on fair value of a 20% increase | $ (2,434) | $ (726) |
Discount rate | 9.54% | 10.14% |
Estimated impact on fair value of a 100 bp increase | $ (1,394) | $ (1,201) |
Estimated impact on fair value of a 200 bp increase | $ (2,679) | $ (2,317) |
Weighted-average coupon interest rate | 3.59% | 3.79% |
Weighted-average servicing fee (basis points) | 0.27% | 0.25% |
Weighted-average remaining maturity (in months) | 328 months | 311 months |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Transfers And Servicing [Abstract] | |
Mortgage servicing rights sold | $ 34,118 |
Mortgage loans serviced | 3,400,000 |
Net loss on sale of mortgage servicing rights | $ 4,447 |
Mortgage Servicing Rights - Sum
Mortgage Servicing Rights - Summary of Transaction Resulted in Net Loss - (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Transfers And Servicing [Abstract] | |
Gain on sale | $ 3,406 |
Transaction costs | (2,284) |
Loss on fair value hedge on sale | (5,569) |
Net loss on sale of mortgage servicing rights | $ (4,447) |
Other Assets and Other liabil98
Other Assets and Other liabilities - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets And Other Liabilities [Abstract] | ||
Cash surrender value on bank owned life insurance | $ 10,556 | $ 10,331 |
Prepaid expenses | 2,245 | 2,311 |
Derivatives | 19,745 | 6,023 |
Other assets | 18,808 | 8,912 |
Total other assets | $ 51,354 | $ 27,577 |
Other Assets and Other liabil99
Other Assets and Other liabilities - Summary of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets And Other Liabilities [Abstract] | ||
Deferred compensation | $ 6,710 | $ 12,343 |
Accrued payroll | 5,987 | 6,343 |
Loan proceeds payable | 5,730 | |
Accrued contract termination fee | 2,278 | |
Mortgage servicing escrows | 1,079 | 2,297 |
Mortgage buyback reserve | 2,659 | 2,156 |
Accrued interest | 632 | 581 |
Derivatives | 586 | 369 |
Deferred tax liability | 4,180 | 713 |
Other liabilities | 36,535 | 11,713 |
Total other liabilities | $ 58,368 | $ 44,523 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits [Abstract] | ||
Time deposits in denomination of greater than $250,000 | $ 60,124 | $ 52,320 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits By Maturity [Abstract] | ||
December 31, 2017 | $ 259,383 | |
December 31, 2018 | 74,097 | |
December 31, 2019 | 35,736 | |
December 31, 2020 | 10,300 | |
December 31, 2021 | 11,515 | |
Total | $ 391,031 | $ 325,559 |
Securities Sold Under Agreem102
Securities Sold Under Agreements to Repurchase - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Sold Under Agreements To Repurchase [Line Items] | ||
Securities sold under agreement to repurchase, carrying value | $ 21,561 | $ 105,133 |
Mortgage Backed Securities | ||
Assets Sold Under Agreements To Repurchase [Line Items] | ||
Securities sold under agreement to repurchase, carrying value | $ 21,561 | $ 105,133 |
Securities Sold Under Agreem103
Securities Sold Under Agreements to Repurchase - Summary of Balances for Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Assets Sold Under Agreements To Repurchase [Line Items] | ||
Balance at year end | $ 21,561 | $ 105,133 |
Mortgage Backed Securities | ||
Assets Sold Under Agreements To Repurchase [Line Items] | ||
Balance at year end | 21,561 | 105,133 |
Average daily balance during the year | $ 60,331 | $ 114,781 |
Average interest rate during the year | 0.11% | 0.12% |
Maximum month-end balance during the year | $ 115,005 | $ 126,608 |
Weighted average interest rate at year-end | 0.17% | 0.12% |
Short-term Borrowings - Additio
Short-term Borrowings - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short Term Debt [Line Items] | ||
Borrowings against lines | $ 150,000,000 | $ 18,000,000 |
Pledged investment securities | 60,371,000 | 85,587,000 |
Federal Reserve Bank | Borrower in Custody Program | ||
Short Term Debt [Line Items] | ||
Line of credit | 765,107,000 | |
Pledged loan securities | 1,072,118,000 | |
Federal Home Loan Bank | ||
Short Term Debt [Line Items] | ||
Borrowings against lines | 150,000,000 | 18,000,000 |
Pledged investment securities | 60,371,000 | 85,587,000 |
Loans from Federal Home Loan Banks | 565,718,000 | 69,915,000 |
U.S. Government Agency Securities | One to Four Family and Multi-Family Mortgages | Federal Home Loan Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | 300,000,000 | 150,000,000 |
First Tennessee Bank, N.A | ||
Short Term Debt [Line Items] | ||
Line of credit | $ 30,000,000 | 30,000,000 |
Number of consecutive trading days | 14 days | |
Borrowings against lines | $ 0 | 0 |
BBVA Compass Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | $ 10,000,000 | 10,000,000 |
Number of consecutive trading days | 14 days | |
Borrowings against lines | $ 0 | 0 |
SunTrust Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | $ 15,000,000 | |
Number of consecutive trading days | 7 days | |
Borrowings against lines | $ 0 | 0 |
SunTrust Bank | Minimum | ||
Short Term Debt [Line Items] | ||
Marketable security with current value, percent | 125.00% | |
First National Banker's Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | $ 10,000,000 | |
Number of consecutive trading days | 30 days | |
Zions Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | $ 25,000,000 | |
PNC Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | 20,000,000 | |
Servis First Bank | ||
Short Term Debt [Line Items] | ||
Line of credit | 15,000,000 | 15,000,000 |
Borrowings against lines | $ 0 | $ 0 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)Note | Dec. 31, 2003USD ($)trust | |
Debt Instrument [Line Items] | |||
Number of subordinated notes payable | Note | 3 | ||
Debt instrument, amendment date | Dec. 31, 2006 | ||
Debt instrument, maturity date | Dec. 31, 2012 | ||
Pledged investment securities | $ 60,371 | $ 85,587 | |
Fixed rate borrowings | 13,962 | $ 15,611 | |
Number of separate trusts | trust | 2 | ||
Net proceeds from sale of common stock | $ 116,054 | ||
Debt instrument, redemption, description | The Company may redeem the first junior subordinated debenture listed, in whole or in part, on any distribution payment date within 120 days of the occurrence of a special event, at the redemption price. The Company may redeem the second junior subordinated debentures listed, in whole or in part, any time after June 26, 2008, on any distribution payment date, at the redemption price. The junior subordinated debentures must be redeemed no later than 2033. | ||
Floating Rate Trust Preferred Securities Trust I | |||
Debt Instrument [Line Items] | |||
Debt instrument, description of variable rate basis | 3-month LIBOR plus 3.25% | ||
Debt instrument, basis spread on variable rate | 3.25% | ||
Preferred securities issued to form the trust | $ 9,000 | ||
Debt instrument, interest rate | 4.25% | 3.67% | |
Floating Rate Trust Preferred Securities Trust II | |||
Debt Instrument [Line Items] | |||
Debt instrument, description of variable rate basis | 3-month LIBOR plus 3.15% | ||
Debt instrument, basis spread on variable rate | 3.15% | ||
Preferred securities issued to form the trust | $ 21,000 | ||
Debt instrument, interest rate | 4.15% | 3.57% | |
Minimum | |||
Debt Instrument [Line Items] | |||
Federal home loan bank advances maturities due term | 1 year | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Federal home loan bank advances maturities due term | 20 years | ||
Weighted Average | |||
Debt Instrument [Line Items] | |||
Federal home loan bank, Advances, Branch of FHLB bank, Weighted average interest rate | 3.02% | 3.29% | |
1-to-4 Family Mortgage | |||
Debt Instrument [Line Items] | |||
Percentage of mortgages advance for secure | 137.00% | 136.00% | |
Multi-Family Mortgage | |||
Debt Instrument [Line Items] | |||
Percentage of mortgages advance for secure | 130.00% | 145.00% | |
Federal Home Loan Bank of Cincinnati | |||
Debt Instrument [Line Items] | |||
Borrowing capacity at Federal Home Loan Bank of Cincinnati | $ 476,562 | $ 125,476 | |
Pledged investment securities | $ 60,371 | 85,587 | |
First Note | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 775 | ||
Debt instrument, description of variable rate basis | an annual rate equal to the Prime Rate less 100 basis points | ||
Debt instrument, effective interest rate | 2.25% | 2.25% | |
First Note | Prime Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.00% | ||
Second Note | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 3,300 | ||
Debt instrument, description of variable rate basis | quarterly rate equal to the 30 day LIBOR rate plus 200 basis points | ||
Debt instrument, effective interest rate | 2.24% | ||
Second Note | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 2.00% | ||
Third Note | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 6,000 | ||
Debt instrument, description of variable rate basis | quarterly rate equal to the 90 day LIBOR rate plus 170 basis points | ||
Debt instrument, effective interest rate | 2.12% | ||
Third Note | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.70% | ||
Junior Subordinated Debentures | Floating Rate Trust Preferred Securities Trust I | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Debt | 9,280 | ||
Net proceeds from sale of common stock | 280 | ||
Junior Subordinated Debentures | Floating Rate Trust Preferred Securities Trust II | |||
Debt Instrument [Line Items] | |||
Proceeds from Issuance of Debt | 21,650 | ||
Net proceeds from sale of common stock | $ 650 |
Long-term Debt - Summary of Mat
Long-term Debt - Summary of Maturities of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Due on or before: | ||
December 31, 2017 | $ 253 | |
December 31, 2018 | 10,009 | |
December 31, 2019 | 403 | |
December 31, 2020 | 223 | |
December 31, 2021 | 581 | |
Due thereafter | 33,423 | |
Total | 44,892 | $ 56,616 |
Federal Home Loan Bank | ||
Due on or before: | ||
December 31, 2017 | 253 | |
December 31, 2018 | 10,009 | |
December 31, 2019 | 403 | |
December 31, 2020 | 223 | |
December 31, 2021 | 581 | |
Due thereafter | 2,493 | |
Total | 13,962 | |
Junior Subordinated Debentures | ||
Due on or before: | ||
Due thereafter | 30,930 | |
Total | $ 30,930 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Increase in deferred tax liability due to change in taxable status | $ 13,181 | ||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Deferred income tax expense related to unrealized gain on available for sale securities | $ 9,257 | $ 1,647 | $ 842 |
C Corporation | |||
Income Taxes [Line Items] | |||
Increase in deferred tax liability due to change in taxable status | 13,181 | ||
Deferred income tax expense related to unrealized gain on available for sale securities | $ 2,955 |
Income Taxes - Schedule of Allo
Income Taxes - Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 12,476 | $ 1,321 | $ 1,427 |
Deferred | 9,257 | 1,647 | 842 |
Total | $ 21,733 | $ 2,968 | $ 2,269 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Federal taxes calculated at statutory rate | $ 5,061 | ||
Increase (decrease) resulting from: | |||
State taxes, net of federal benefit | 3,664 | $ 2,956 | $ 2,258 |
Conversion as of September 16, 2016 to C Corporation | 13,181 | ||
Other | (173) | 12 | 11 |
Total | 21,733 | $ 2,968 | $ 2,269 |
C Corporation | |||
Increase (decrease) resulting from: | |||
Conversion as of September 16, 2016 to C Corporation | $ 13,181 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax liability (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 8,516 | $ 1,565 |
Amortization of core deposit intangible | 996 | 107 |
Compensation related | 7,552 | 1,120 |
Unrealized loss on securities | 2,462 | |
Other | 2,430 | 39 |
Subtotal | 21,956 | 2,831 |
Deferred tax liabilities: | ||
FHLB stock dividends | (827) | (135) |
Depreciation | (6,548) | (661) |
Unrealized gain on securities | (205) | |
Mortgage servicing rights | (12,558) | (1,902) |
Other | (6,203) | (641) |
Subtotal | (26,136) | (3,544) |
Net deferred tax liability | $ (4,180) | $ (713) |
Dividend Restrictions - Additio
Dividend Restrictions - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Restrictions On Dividends Loans And Advances Disclosure [Abstract] | |||
Amount available for payment of dividend without prior approval | $ 66,180 | $ 54,537 | |
Dividends declared | $ 69,300 | $ 23,600 | $ 16,600 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 748,669 | $ 574,612 |
Commitments to Extend Credit, Excluding Interest Rate Lock Commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | 726,122 | 554,274 |
Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 22,547 | $ 20,338 |
Commitments and Contingencie113
Commitments and Contingencies - Summary of Commitments Under Non-Cancelable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 2,994 |
2,018 | 2,530 |
2,019 | 2,195 |
2,020 | 1,897 |
2,021 | 1,694 |
Thereafter | 6,589 |
Total | $ 17,899 |
Commitments and Contingencie114
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating leases rent expense | $ 3,904 | $ 3,750 | $ 3,085 |
Total principal amount of loans repurchased or indemnified | $ 9 | $ 47 |
Commitments and Contingencie115
Commitments and Contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Balance at beginning of period | $ 2,156 | $ 828 | |
Provision for loan repurchases or indemnifications | 512 | 1,375 | $ 161 |
Recoveries on previous losses | 9 | ||
Losses on loans repurchased or indemnified | (18) | (47) | |
Balance at end of period | $ 2,659 | $ 2,156 | $ 828 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative [Line Items] | |||
Lock in period for interest rates | 45 days | ||
Agreements to sell serviced mortgage loans | $ 3,370,396,000 | ||
Gains (losses) on derivative financial instruments | 5,763,000 | $ (1,527,000) | $ (6,494,000) |
Interest Rate Contracts with Corporate Customers | |||
Derivative [Line Items] | |||
Notional amount | 22,243,000 | 4,409,000 | |
Offsetting Interest Rate Contracts with Other Financial Institutions | |||
Derivative [Line Items] | |||
Notional amount | 22,243,000 | 4,409,000 | |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Fair value on swap | 586,000 | (369,000) | |
Derivatives Designated As Hedging Instruments | Fair Value Hedge | Included in Loss on Sale of Mortgage Servicing Rights | |||
Derivative [Line Items] | |||
Gains (losses) on derivative financial instruments | (5,569,000) | ||
Commitments to Fund Fixed-Rate Mortgage Loans | |||
Derivative [Line Items] | |||
Notional amount | 532,920,000 | 263,395,000 | |
Commitments to Sell Residential Mortgage Loans | |||
Derivative [Line Items] | |||
Notional amount | $ 829,000,000 | $ 445,000,000 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives Fair Value [Line Items] | ||
Derivative assets | $ 19,745 | $ 6,023 |
Derivative liabilities | 586 | 369 |
Not Designated As Hedging | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 19,745 | 6,023 |
Derivative liabilities | 586 | 369 |
Not Designated As Hedging | Other Assets | Interest Rate Swaps | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 586 | 369 |
Not Designated As Hedging | Other Assets | Forward commitments | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 12,731 | 61 |
Not Designated As Hedging | Other Assets | Interest rate-lock commitments | ||
Derivatives Fair Value [Line Items] | ||
Derivative assets | 6,428 | 5,593 |
Not Designated As Hedging | Other Liabilities | Interest Rate Swaps | ||
Derivatives Fair Value [Line Items] | ||
Derivative liabilities | $ 586 | $ 369 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivatives Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | $ 5,763 | $ (1,527) | $ (6,494) |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Interest rate-lock commitments | |||
Derivatives Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | 835 | 2,073 | 2,535 |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Forward commitments | |||
Derivatives Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | 10,497 | $ (3,600) | $ (9,029) |
Derivatives Designated As Hedging Instruments | Included in Loss on Sale of Mortgage Servicing Rights | Fair Value Hedge | |||
Derivatives Fair Value [Line Items] | |||
Gains (losses) on derivative financial instruments | $ (5,569) |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Available-for-sale securities, at fair value | $ 582,183 | $ 649,387 |
Interest receivable | 7,241 | 6,763 |
Derivatives assets | 19,745 | 6,023 |
Financial liabilities: | ||
Derivatives liabilities | 586 | 369 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 136,327 | 97,723 |
Available-for-sale securities, at fair value | 582,183 | 649,387 |
Federal Home Loan Bank Stock | 7,743 | 6,528 |
Loans, net | 1,827,037 | 1,677,403 |
Loans held for sale | 507,442 | 273,196 |
Interest receivable | 7,241 | 6,763 |
Mortgage servicing rights, net | 32,070 | 29,711 |
Derivatives assets | 19,745 | 6,023 |
Financial liabilities: | ||
Deposits, Without stated maturities | 2,280,531 | 2,112,915 |
Deposits, With stated maturities | 391,031 | 325,559 |
Securities sold under agreement to repurchase | 21,561 | 105,133 |
Short term borrowings | 150,000 | 18,000 |
Interest payable | 620 | 550 |
Long-term debt | 44,892 | 56,616 |
Derivatives liabilities | 586 | 369 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 136,327 | 97,723 |
Available-for-sale securities, at fair value | 582,183 | 649,387 |
Federal Home Loan Bank Stock | 7,743 | 6,528 |
Loans, net | 1,823,335 | 1,675,457 |
Loans held for sale | 507,442 | 273,196 |
Interest receivable | 7,241 | 6,763 |
Mortgage servicing rights, net | 32,070 | 29,711 |
Derivatives assets | 19,745 | 6,023 |
Financial liabilities: | ||
Deposits, Without stated maturities | 2,280,531 | 2,112,915 |
Deposits, With stated maturities | 390,484 | 323,624 |
Securities sold under agreement to repurchase | 21,561 | 105,133 |
Short term borrowings | 150,000 | 18,000 |
Interest payable | 620 | 550 |
Long-term debt | 43,994 | 55,484 |
Derivatives liabilities | 586 | 369 |
Fair Value | Fair Value Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 136,327 | 97,723 |
Financial liabilities: | ||
Deposits, Without stated maturities | 2,280,531 | 2,112,915 |
Securities sold under agreement to repurchase | 21,561 | 105,133 |
Short term borrowings | 150,000 | 18,000 |
Interest payable | 237 | 244 |
Fair Value | Fair Value Level 2 | ||
Financial assets: | ||
Available-for-sale securities, at fair value | 577,634 | 644,531 |
Loans, net | 1,822,054 | 1,638,506 |
Loans held for sale | 507,442 | 273,196 |
Interest receivable | 7,241 | 6,763 |
Derivatives assets | 19,745 | 6,023 |
Financial liabilities: | ||
Deposits, With stated maturities | 390,484 | 323,624 |
Interest payable | 383 | 306 |
Long-term debt | 43,994 | 55,484 |
Derivatives liabilities | 586 | 369 |
Fair Value | Fair Value Level 3 | ||
Financial assets: | ||
Available-for-sale securities, at fair value | 4,549 | 4,856 |
Federal Home Loan Bank Stock | 7,743 | 6,528 |
Loans, net | 1,281 | 36,951 |
Mortgage servicing rights, net | $ 32,070 | $ 29,711 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances and Levels of Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Financial assets: | ||||
Available-for-sale securities, at fair value | $ 582,183 | $ 649,387 | ||
Derivatives assets | 19,745 | 6,023 | ||
Foreclosed real estate, net | 7,403 | 11,641 | $ 7,259 | $ 8,796 |
Impaired loans | 12,951 | 15,576 | ||
Financial liabilities: | ||||
Derivatives liabilities | 586 | 369 | ||
Fair Value, Measurements, Recurring | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 582,183 | 649,387 | ||
Loans held for sale | 507,442 | 273,196 | ||
Derivatives assets | 19,745 | 6,023 | ||
Financial liabilities: | ||||
Derivatives liabilities | 586 | 369 | ||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 985 | 33,808 | ||
Fair Value, Measurements, Recurring | Mortgage-backed Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 443,908 | 522,373 | ||
Fair Value, Measurements, Recurring | Municipals, Tax Exempt | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 116,923 | 79,837 | ||
Fair Value, Measurements, Recurring | Treasury Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 11,757 | 4,485 | ||
Fair Value, Measurements, Recurring | Equity Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 8,610 | 8,884 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 577,634 | 644,531 | ||
Loans held for sale | 507,442 | 273,196 | ||
Derivatives assets | 19,745 | 6,023 | ||
Financial liabilities: | ||||
Derivatives liabilities | 586 | 369 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 985 | 33,808 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 443,908 | 522,373 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipals, Tax Exempt | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 116,923 | 79,837 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Treasury Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 11,757 | 4,485 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 4,061 | 4,028 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 4,549 | 4,856 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||||
Financial assets: | ||||
Available-for-sale securities, at fair value | 4,549 | 4,856 | ||
Fair Value, Measurements, Nonrecurring | ||||
Financial assets: | ||||
Foreclosed real estate, net | 2,315 | 6,275 | ||
Mortgage servicing rights, net | 32,070 | 29,711 | ||
Impaired loans | 1,281 | 29,135 | ||
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | ||||
Financial assets: | ||||
Impaired loans | 542 | 2,007 | ||
Fair Value, Measurements, Nonrecurring | Consumer and Other | ||||
Financial assets: | ||||
Impaired loans | 1 | 4 | ||
Fair Value, Measurements, Nonrecurring | Owner Occupied | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 635 | 6,493 | ||
Fair Value, Measurements, Nonrecurring | Non-Owner Occupied | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 7,572 | |||
Fair Value, Measurements, Nonrecurring | 1-to-4 Family Mortgage | Residential Real Estate | ||||
Financial assets: | ||||
Impaired loans | 103 | 6,127 | ||
Fair Value, Measurements, Nonrecurring | Construction Loans | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 6,896 | |||
Fair Value, Measurements, Nonrecurring | Multi-Family Mortgage | Residential Real Estate | ||||
Financial assets: | ||||
Impaired loans | 36 | |||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||
Financial assets: | ||||
Foreclosed real estate, net | 2,315 | 6,275 | ||
Mortgage servicing rights, net | 32,070 | 29,711 | ||
Impaired loans | 1,281 | 29,135 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | ||||
Financial assets: | ||||
Impaired loans | 542 | 2,007 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer and Other | ||||
Financial assets: | ||||
Impaired loans | 1 | 4 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Owner Occupied | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 635 | 6,493 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-Owner Occupied | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 7,572 | |||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | 1-to-4 Family Mortgage | Residential Real Estate | ||||
Financial assets: | ||||
Impaired loans | $ 103 | 6,127 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction Loans | Commercial Real Estate | ||||
Financial assets: | ||||
Impaired loans | 6,896 | |||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Multi-Family Mortgage | Residential Real Estate | ||||
Financial assets: | ||||
Impaired loans | $ 36 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs or Level 3 Inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of period | $ 4,856 | $ 4,688 |
Purchases | 20 | 168 |
Capital distribution | (327) | |
Balance at end of period | $ 4,549 | $ 4,856 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Significant Unobservable Inputs (Level 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Appraised value of collateral | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Appraised value of collateral | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Appraised value of collateral | Impaired Loans | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 1,281 | $ 29,135 |
Appraised value of property less costs to sell | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Appraised value of property less costs to sell | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 10.00% | 46.00% |
Appraised value of property less costs to sell | Foreclosed Assets | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 2,315 | $ 6,275 |
Discounted cash flows | Mortgage Servicing Rights, Net | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 32,070 | $ 29,711 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Mortgage Loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Net (losses) gains from fair value changes of mortgage loans | $ (2,289) | $ 2,257 | $ 5,095 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 507,442 | $ 273,196 |
Aggregate Unpaid Principal Balance | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 501,503 | 264,968 |
Difference | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 5,939 | $ 8,228 |
Parent Company Only Financia125
Parent Company Only Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 136,327 | $ 97,723 | $ 49,954 | $ 67,597 |
Interest receivable | 7,241 | 6,763 | ||
Other assets | 51,354 | 27,577 | ||
Goodwill | 46,867 | 46,904 | 46,904 | |
Total assets | 3,276,881 | 2,899,420 | 2,428,189 | |
Liabilities: | ||||
Long-term debt | 44,892 | 56,616 | ||
Accrued expenses and other liabilities | 58,368 | 44,523 | ||
Total liabilities | 2,946,383 | 2,662,746 | ||
Shareholders' equity : | ||||
Common stock | 24,108 | 17,180 | ||
Additional paid-in capital | 213,480 | 94,544 | ||
Retained earnings | 93,784 | 122,493 | ||
Accumulated other comprehensive (loss) income | (874) | 2,457 | ||
Total shareholders' equity | 330,498 | 236,674 | 215,228 | 189,687 |
Total liabilities and shareholders' equity | 3,276,881 | 2,899,420 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 30,993 | 1,253 | $ 551 | $ 870 |
Investments | 2,074 | 2,381 | ||
Investments in Bank subsidiary | 325,574 | 265,632 | ||
Note receivable - Bank subsidiary | 6,000 | |||
Interest receivable | 31 | |||
Other assets | 2,972 | 2,545 | ||
Goodwill | 29 | 29 | ||
Total assets | 361,642 | 277,871 | ||
Liabilities: | ||||
Long-term debt | 30,930 | 35,005 | ||
Subordinated debt | 6,000 | |||
Accrued expenses and other liabilities | 214 | 192 | ||
Total liabilities | 31,144 | 41,197 | ||
Shareholders' equity : | ||||
Common stock | 24,108 | 17,180 | ||
Additional paid-in capital | 213,480 | 94,544 | ||
Retained earnings | 93,784 | 122,493 | ||
Accumulated other comprehensive (loss) income | (874) | 2,457 | ||
Total shareholders' equity | 330,498 | 236,674 | ||
Total liabilities and shareholders' equity | $ 361,642 | $ 277,871 |
Parent Company Only Financia126
Parent Company Only Financial Statements - Income Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income | |||
Other interest income | $ 611 | $ 468 | $ 444 |
Net interest income | 110,950 | 93,872 | 83,376 |
Expenses | |||
Interest expense | 9,544 | 8,910 | 9,513 |
Other noninterest expense | 22,212 | 17,982 | 15,037 |
Net income | 40,591 | 47,856 | 32,462 |
Parent Company | |||
Income | |||
Other interest income | 33 | 33 | 32 |
Interest income from Bank subsidiary | 95 | 121 | 118 |
Gain on sale of investments | 417 | ||
Dividend income from Bank subsidiary | 14,875 | 25,105 | 18,155 |
Earnings from Bank subsidiary | 26,859 | 23,879 | 15,429 |
Net interest income | 42,279 | 49,138 | 33,734 |
Expenses | |||
Interest expense | 1,393 | 1,298 | 1,278 |
Salaries, legal and professional fees | 315 | 3 | 3 |
Other noninterest expense | 168 | 59 | 69 |
Federal and state income tax benefit | (188) | (78) | (78) |
Total expenses | 1,688 | 1,282 | 1,272 |
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Parent Company Only Financia127
Parent Company Only Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net income | $ 40,591 | $ 47,856 | $ 32,462 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 4,693 | ||
Financing Activities | |||
Dividends paid | (69,300) | (25,350) | (14,850) |
Net proceeds from sale of common stock | 116,054 | ||
Net change in cash and cash equivalents | 38,604 | 47,769 | (17,643) |
Cash and cash equivalents at beginning of the period | 97,723 | 49,954 | 67,597 |
Cash and cash equivalents at end of the period | 136,327 | 97,723 | 49,954 |
Supplemental cash flow information | |||
Conversion of cash-settled to stock-settled compensation | 5,388 | ||
Dividends declared not paid | 1,750 | ||
Parent Company | |||
Operating Activities | |||
Net income | 40,591 | 47,856 | 32,462 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed income of subsidiary bank | (26,859) | (23,879) | (15,429) |
Gain on sale of investments | (417) | ||
Stock-based compensation expense | 4,693 | ||
(Increase) decrease in other assets | (427) | 1,292 | (1,449) |
Increase (decrease) in other liabilities | (5,251) | 23 | 1,722 |
Other, net | 7 | (1) | (1,751) |
Net cash provided by operating activities | 12,337 | 25,291 | 15,555 |
Investing Activities | |||
Other investments | 724 | 761 | (1,024) |
Net cash provided by (used in) investing activities | 724 | 761 | (1,024) |
Financing Activities | |||
Equity contribution to Bank | (20,000) | ||
Dividends paid | (69,300) | (25,350) | (14,850) |
Payment of subordinated debt | (10,075) | ||
Net proceeds from sale of common stock | 116,054 | ||
Net cash provided by (used in) financing activities | 16,679 | (25,350) | (14,850) |
Net change in cash and cash equivalents | 29,740 | 702 | (319) |
Cash and cash equivalents at beginning of the period | 1,253 | 551 | 870 |
Cash and cash equivalents at end of the period | 30,993 | $ 1,253 | 551 |
Supplemental cash flow information | |||
Conversion of cash-settled to stock-settled compensation | 5,388 | ||
Forgiveness of intercompany debt | $ 6,024 | ||
Dividends declared not paid | $ 1,750 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
Interest paid | $ 9,474 | $ 8,985 | $ 9,725 |
Mortgage Segment | |||
Segment Reporting Information [Line Items] | |||
Interest paid | $ 12,636 | $ 8,688 | $ 3,647 |
Mortgage Segment | Prime Interest Rate | |||
Segment Reporting Information [Line Items] | |||
Warehouse line of credit interest rate | 3.75% | 3.50% | 3.25% |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 110,950 | $ 93,872 | $ 83,376 |
Provision for loan losses | (1,479) | (3,064) | (2,716) |
Mortgage banking income | 117,751 | 70,190 | 31,135 |
Other noninterest income | 26,934 | 22,190 | 19,667 |
Depreciation and amortization | 3,995 | 3,283 | 3,099 |
Amortization of intangibles | 2,132 | 1,731 | 1,613 |
Amortization and impairment of mortgage servicing rights | 12,999 | 2,795 | 397 |
Loss on sale of mortgage servicing rights | 4,447 | ||
Other noninterest mortgage banking expense | 82,351 | 56,138 | 29,569 |
Other noninterest expense | 88,866 | 74,545 | 67,485 |
Income before income taxes | 62,324 | 50,824 | 34,731 |
Income tax expense | 21,733 | 2,968 | 2,269 |
Net income | 40,591 | 47,856 | 32,462 |
Total assets | 3,276,881 | 2,899,420 | 2,428,189 |
Goodwill | 46,867 | 46,904 | 46,904 |
Banking Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 112,365 | 92,366 | 83,192 |
Provision for loan losses | (1,479) | (3,070) | (2,716) |
Mortgage banking income | 25,542 | 18,718 | 8,958 |
Other noninterest income | 26,934 | 22,190 | 19,667 |
Depreciation and amortization | 3,506 | 2,933 | 2,784 |
Amortization of intangibles | 2,132 | 1,731 | 1,613 |
Other noninterest mortgage banking expense | 16,095 | 13,189 | 8,551 |
Other noninterest expense | 88,866 | 74,545 | 67,485 |
Income before income taxes | 55,721 | 43,946 | 34,100 |
Total assets | 2,752,773 | 2,570,071 | 2,202,978 |
Goodwill | 46,767 | 46,804 | 46,804 |
Mortgage Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (1,415) | 1,506 | 184 |
Provision for loan losses | 6 | ||
Mortgage banking income | 92,209 | 51,472 | 22,177 |
Depreciation and amortization | 489 | 350 | 315 |
Amortization and impairment of mortgage servicing rights | 12,999 | 2,795 | 397 |
Loss on sale of mortgage servicing rights | 4,447 | ||
Other noninterest mortgage banking expense | 66,256 | 42,949 | 21,018 |
Income before income taxes | 6,603 | 6,878 | 631 |
Total assets | 524,108 | 329,349 | 225,211 |
Goodwill | $ 100 | $ 100 | $ 100 |
Minimum Capital Requirements -
Minimum Capital Requirements - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |
Capital conservative buffer percentage | 2.50% |
Description of capital adequacy purposes | Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent. |
Minimum Capital Requirements131
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
FB Financial Corporation | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 338,893 | $ 246,168 |
Total Capital (to risk-weighted assets), Actual Ratio | 13.03% | 11.15% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 208,069 | $ 176,623 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 224,325 | |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.63% | |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 317,146 | $ 211,633 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.19% | 9.58% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 156,101 | $ 132,547 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 172,362 | |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 6.63% | |
Tier 1 Capital (to average assets), Actual Amount | $ 317,146 | $ 211,633 |
Tier 1 Capital (to average assets), Actual Ratio | 10.05% | 7.64% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 126,227 | $ 110,803 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 287,146 | $ 181,633 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.04% | 8.23% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 117,043 | $ 99,313 |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 133,299 | |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 5.13% | |
FirstBank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 304,018 | $ 242,240 |
Total Capital (to risk-weighted assets), Actual Ratio | 11.72% | 11.02% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 207,521 | $ 175,855 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 223,733 | |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.63% | |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 259,401 | $ 219,819 |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 282,271 | $ 211,780 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 10.88% | 9.63% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 155,664 | $ 131,950 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 171,879 | |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 6.63% | |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount | $ 155,664 | $ 131,950 |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (to average assets), Actual Amount | $ 282,271 | $ 211,780 |
Tier 1 Capital (to average assets), Actual Ratio | 8.95% | 7.65% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 126,155 | $ 110,735 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Amount | $ 157,693 | $ 138,418 |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 282,271 | $ 211,780 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 10.88% | 9.63% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 116,748 | $ 98,963 |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 132,963 | |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 5.13% | |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 168,636 | $ 142,946 |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | Dec. 31, 2019 | Jun. 28, 2016 | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Maximum percentage of amount to be contributed by the employer | 6.00% | |||||
Matching and profit sharing vesting period | 5 years | |||||
Contribution provided by the bank to the plan | $ 1,379,000 | $ 1,290,000 | $ 922,000 | |||
Discretionary contribution percentage | 25.00% | 25.00% | 25.00% | |||
Post retirement benefits payable | $ 2,023,000 | $ 1,914,000 | ||||
Expense related to plans | 30,000 | 313,000 | $ 314,000 | |||
Payments to participants | 205,000 | 202,000 | 205,000 | |||
Cash surrender value on bank owned life insurance | 10,556,000 | 10,331,000 | ||||
Cash value income | $ 181,000 | 136,000 | 92,000 | |||
Description of stock split | the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25,000,000, respectively. | |||||
Stock split ratio | 0.01 | |||||
Deferred compensation | $ 6,710,000 | 12,343,000 | ||||
Salaries, commissions and employee benefits | 113,992,000 | 84,214,000 | 63,863,000 | |||
Deferred Compensation Plans and Agreements | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Payments to participants | $ 1,601,000 | 2,614,000 | ||||
Description of stock split | 100-for-one stock split | |||||
Stock split ratio | 100 | |||||
Other liabilities | $ 3,758,000 | 9,452,000 | ||||
Accrued compensation reclassified to additional paid in capital | $ 5,388 | |||||
Number of units remaining in equity based incentive plan for cash settlement | shares | 180,447 | |||||
Salaries, commissions and employee benefits | $ 5,073,000 | $ 2,921,000 | ||||
Deferred Compensation Plans and Agreements | Chief Executive Officer | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
IPO price | $ / shares | $ 19 | |||||
Deferred compensation | $ 3,000,000 | $ 3,000,000 | ||||
Deferred compensation payment date | Dec. 31, 2019 | |||||
Deferred stock units issued | shares | 157,895 | |||||
Deferred Compensation Plans and Agreements | Chief Executive Officer | Scenario, Forecast | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Deferred stock units conversion basis | 1-for-1 | |||||
Deferred Compensation Plans and Agreements | 2010 EBI Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation award vesting period | 5 years | |||||
Employee retirement age under EBI plan | 65 years | |||||
Valuation of unit by percentage of assets | 7.50% | |||||
Share-based compensation terms of award, description | Pursuant to the terms of the 2010 EBI Plan, each EBI Unit vests ratably over five years, or earlier upon a change of control, death or disability or retirement after age 65. On or shortly following the vesting date, the holder of an EBI Unit will receive an amount in cash (or, if so elected by the participant following the IPO, in stock) equal to the fair market value of a share of common stock on the December 31 immediately preceding the payment date. Prior to the IPO, fair market value was determined by dividing 7.5% of the total assets of the Bank by the total number of outstanding common stock shares of the Company. Following the IPO, EBI Units are valued based upon the Company’s stock price. Units under this plan became fully vested January, 2017. | |||||
Deferred Compensation Plans and Agreements | Preferred EBI Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation terms of award, description | The Preferred EBI Plan has the same terms and conditions as those described above for the 2010 EBI Plan, with the exception of a seven year ratable vesting period. Units under this plan became fully vested January, 2017. | |||||
Deferred Compensation Plans and Agreements | 2012 EBI Plan | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based compensation award vesting period | 3 years | |||||
Employee retirement age under EBI plan | 65 years | |||||
Share-based compensation terms of award, description | Pursuant to the terms of the 2012 EBI Plan, each EBI Unit vests and becomes payable following the third anniversary of the date of grant, or earlier upon a change of control, death or disability or retirement after age 65. On or shortly following the vesting date, the holder of an EBI Unit will receive an amount in cash (or, if so elected by the participant following the IPO, in stock) equal to the fair market value of a share of common stock on the December 31 immediately preceding the payment date. Following the IPO, EBI Units are valued based upon the Company’s stock price. Prior to the IPO, fair market value of the Company was determined based upon the average of the sum of (a) 15 times the Company’s after-tax earnings, based on a default tax rate imposed by the Code, and (b) 1.5 times the Company’s tangible book value, defined as the consolidated equity of the Company less unrealized gains (losses) and less goodwill and intangible assets. Following the IPO, EBI Units outstanding under the 2012 EBI Plan were adjusted to prevent dilution of these EBI Units as a result of the IPO pursuant to the following conversion formula: (i) the number of EBI Units outstanding under the 2012 EBI Plan (as adjusted for the stock split), multiplied by (ii) 1.13 (determined by dividing $21.4085, the fair market value per EBI Unit as determined under the 2012 EBI Plan, by $19.00, the IPO price). | |||||
Fair market value per EBI | $ / shares | $ 21.4085 | |||||
IPO price | $ / shares | $ 19 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Settled EBI Units and Restricted Stock Units Outstanding (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted Stock Units Outstanding, Conversion of deferred compensation plan | shares | 157,895 |
Restricted Stock Units Outstanding, Conversion of equity based incentive (EBI) plans | shares | 125,684 |
Restricted Stock Units Outstanding, Grants | shares | 1,077,066 |
Restricted Stock Units Outstanding, Released and distributed (vested) | shares | (157,748) |
Restricted Stock Units Outstanding, Forfeited/expired | shares | (2,057) |
Restricted Stock Units Outstanding, Balance, end of period | shares | 1,200,840 |
Weighted Average Grant Date Fair Value, Conversion of deferred compensation plan | $ / shares | $ 19 |
Weighted Average Grant Date Fair Value, Conversion of equity based incentive (EBI) plans | $ / shares | 19 |
Weighted Average Grant Date Fair Value, Grants | $ / shares | 19 |
Weighted Average Grant Date Fair Value, Released and distributed (vested) | $ / shares | 19 |
Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares | 19 |
Weighted Average Grant Date Fair Value, Balance, end of period | $ / shares | $ 19 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)shares | |
Stock-Settled EBI Units and Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair value of stock-settled EBI units and restricted stock units vested and released | $ | $ 2,997 |
Compensation cost related to stock-settled EBI units and restricted stock units | $ | 4,693 |
Unrecognized compensation cost related to nonvested stock-settled EBI units and restricted stock units | $ | $ 15,721 |
Expected weighted-average period to be recognized | 3 years 7 months 28 days |
Employee Stock Purchase Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Maximum number of shares issuable | shares | 200,000 |
Purchase price percentage of first offering period | 85.00% |
Purchase price percentage of current offering period | 95.00% |
Maximum number of shares per participant | shares | 725 |
Maximum worth of award per participant | $ | $ 25,000 |
Shares issued under plan | shares | 20,377 |
Number of shares reserved for issuance | shares | 2,479,623 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Company Shareholder, Bank Directors and Their Affiliates (Details) $ in Thousands | 24 Months Ended |
Dec. 31, 2016USD ($) | |
Related Party Transactions [Abstract] | |
Loans outstanding, Beginning balance | $ 31,195 |
New loans and advances | 1,933 |
Repayments | (5,758) |
Loans outstanding, Ending balance | $ 27,370 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Sep. 15, 2016 | Aug. 15, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2006 | Aug. 26, 1999 | Feb. 12, 1996 |
Related Party Transaction [Line Items] | ||||||||
Unfunded commitments | $ 1 | $ 69 | ||||||
Deposits from related parties | 150,373 | 68,612 | ||||||
Aviation Time Sharing Agreement | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments to related party | 313 | 57 | ||||||
Initial Public Offering | ||||||||
Related Party Transaction [Line Items] | ||||||||
Repayments of subordinated debt | $ 10,075 | $ 10,075 | ||||||
Certain Executive Officers and Directors and Their Associates | ||||||||
Related Party Transaction [Line Items] | ||||||||
Unfunded commitments | 6,838 | 4,128 | ||||||
Shareholders | ||||||||
Related Party Transaction [Line Items] | ||||||||
Unamortized leasehold improvements | 158 | 180 | ||||||
Lease expense | 522 | 503 | $ 502 | |||||
Paid for management consulting services | $ 306 | 306 | ||||||
Ownership percentage held by shareholder | 100.00% | |||||||
Subordinated debt | $ 6,000 | $ 3,300 | $ 775 | |||||
Payment of interest | 230 | $ 211 | $ 237 | |||||
Director | ||||||||
Related Party Transaction [Line Items] | ||||||||
Amount of investment held by the company | 1,145 | 1,472 | ||||||
Capital distributions received | $ 327 | $ 0 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) | Mar. 31, 2017 | Feb. 08, 2017 | Dec. 31, 2016 |
Clayton Banks | |||
Subsequent Event [Line Items] | |||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Subsequent event, evaluation date | Mar. 31, 2017 | ||
Subsequent Event | Clayton Banks | |||
Subsequent Event [Line Items] | |||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 |