Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 04, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FBK | |
Entity Registrant Name | FB Financial Corp | |
Entity Central Index Key | 1,649,749 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,680,450 |
Consolidated balance sheets (Un
Consolidated balance sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from banks | $ 53,060 | $ 29,831 |
Federal funds sold | 7,171 | 66,127 |
Interest bearing deposits in financial institutions | 13,469 | 23,793 |
Cash and cash equivalents | 73,700 | 119,751 |
Investments: | ||
Available-for-sale debt securities, at fair value | 594,248 | 536,270 |
Equity securities, at fair value | 3,099 | 7,722 |
Federal Home Loan Bank stock, at cost | 11,810 | 11,412 |
Loans held for sale, at fair value | 414,518 | 526,185 |
Loans | 3,244,663 | 3,166,911 |
Less: allowance for loan losses | 24,406 | 24,041 |
Net loans | 3,220,257 | 3,142,870 |
Premises and equipment, net | 81,175 | 81,577 |
Other real estate owned, net | 15,334 | 16,442 |
Interest receivable | 13,920 | 13,069 |
Mortgage servicing rights, at fair value | 93,160 | 76,107 |
Goodwill | 137,190 | 137,190 |
Core deposit and other intangibles, net | 14,027 | 14,902 |
Other assets | 52,978 | 44,216 |
Total assets | 4,725,416 | 4,727,713 |
Demand deposits | ||
Noninterest-bearing | 930,991 | 888,200 |
Interest-bearing | 1,945,886 | 1,909,546 |
Savings deposits | 182,265 | 178,320 |
Customer time deposits | 625,616 | 602,628 |
Brokered and internet time deposits | 81,393 | 85,701 |
Total time deposits | 707,009 | 688,329 |
Total deposits | 3,766,151 | 3,664,395 |
Securities sold under agreements to repurchase | 14,724 | 14,293 |
Short-term borrowings | 138,707 | 190,000 |
Long-term debt | 139,586 | 143,302 |
Accrued expenses and other liabilities | 55,173 | 118,994 |
Total liabilities | 4,114,341 | 4,130,984 |
Shareholders' equity: | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 30,671,763 and 30,535,517 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively | 30,672 | 30,536 |
Additional paid-in capital | 418,810 | 418,596 |
Retained earnings | 167,094 | 147,449 |
Accumulated other comprehensive (loss) income, net | (5,501) | 148 |
Total shareholders' equity | 611,075 | 596,729 |
Total liabilities and shareholders' equity | $ 4,725,416 | $ 4,727,713 |
Consolidated balance sheets (U3
Consolidated balance sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 30,671,763 | 30,535,517 |
Common stock, shares outstanding | 30,671,763 | 30,535,517 |
Consolidated statements of inco
Consolidated statements of income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income: | ||
Interest and fees on loans | $ 50,693 | $ 29,006 |
Interest on securities | ||
Taxable | 2,852 | 2,567 |
Tax-exempt | 925 | 1,040 |
Other | 378 | 276 |
Total interest income | 54,848 | 32,889 |
Deposits | ||
Demand and savings accounts | 3,315 | 1,531 |
Time deposits | 1,756 | 583 |
Short-term borrowings | 25 | 10 |
Long-term debt | 1,323 | 514 |
Total interest expense | 6,419 | 2,638 |
Net interest income | 48,429 | 30,251 |
Provision for loan losses | 317 | (257) |
Net interest income after provision for loan losses | 48,112 | 30,508 |
Noninterest income: | ||
Mortgage banking income | 26,471 | 25,080 |
Service charges on deposit accounts | 2,097 | 1,766 |
ATM and interchange fees | 2,361 | 2,047 |
Investment services and trust income | 1,206 | 814 |
(Loss) gain from securities, net | (47) | 1 |
(Loss) gain or write-downs of other real estate owned | (186) | 748 |
Gain from other assets | 68 | |
Other income | 1,305 | 631 |
Total noninterest income | 33,275 | 31,087 |
Noninterest expenses: | ||
Salaries, commissions and employee benefits | 34,149 | 29,006 |
Occupancy and equipment expense | 3,605 | 3,109 |
Legal and professional fees | 2,043 | 1,428 |
Data processing | 2,035 | 1,501 |
Merger and conversion | 1,193 | 487 |
Amortization of core deposits and other intangibles | 853 | 392 |
Regulatory fees and deposit insurance assessments | 562 | 435 |
Software license and maintenance fees | 467 | 457 |
Advertising | 3,282 | 2,932 |
Other expense | 7,962 | 6,670 |
Total noninterest expense | 56,151 | 46,417 |
Income before income taxes | 25,236 | 15,178 |
Income tax expense (Note 7) | 5,482 | 5,425 |
Net income | $ 19,754 | $ 9,753 |
Weighted average shares of common stock outstanding | ||
Basic | 30,613,284 | 24,138,437 |
Fully diluted | 31,421,830 | 24,610,991 |
Earnings per share | ||
Basic | $ 0.65 | $ 0.40 |
Fully diluted | $ 0.63 | $ 0.40 |
Consolidated statements of comp
Consolidated statements of comprehensive income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 19,754 | $ 9,753 |
Other comprehensive (loss) income, net of tax: | ||
Net change in unrealized (loss) gain in available-for-sale securities, net of taxes of $2,539 and $354 | (7,070) | 550 |
Reclassification adjustment for loss (gain) on securities included in net income, net of taxes of $2 and $0 | 7 | (1) |
Net change in unrealized gain in hedging activities, net of taxes of $449 and $0 | 1,273 | |
Reclassification adjustment for loss on hedging activities, net of taxes of $8 and $0 | 32 | |
Total other comprensive (loss) income, net of tax | (5,758) | 549 |
Comprehensive income | $ 13,996 | $ 10,302 |
Consolidated statements of com6
Consolidated statements of comprehensive income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net change in unrealized (loss) gain in available-for-sale, tax | $ 2,539 | $ 354 |
Reclassification adjustment for loss (gain) on securities, tax | 2 | 0 |
Net change in unrealized gain in hedging activities, tax | 449 | 0 |
Reclassification adjustment for losses on hedging activities, tax | $ 8 | $ 0 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net |
Balance at Dec. 31, 2016 | $ 330,498 | $ 24,108 | $ 213,480 | $ 93,784 | $ (874) |
Initial fair value election on mortgage servicing rights, net of taxes of $396 (See Note 1) | 615 | 615 | |||
Net income | 9,753 | 9,753 | |||
Other comprehensive income (loss), net of taxes | 549 | 549 | |||
Stock-based compensation expense | 1,352 | 1,352 | |||
Restricted stock units vested and distributed, net of shares withheld for taxes | (625) | 47 | (672) | ||
Balance at Mar. 31, 2017 | 342,142 | 24,155 | 214,160 | 104,152 | (325) |
Balance at Dec. 31, 2017 | 596,729 | 30,536 | 418,596 | 147,449 | 148 |
Initial adoption of ASU 2016-01 (See Note 1) | (109) | 109 | |||
Net income | 19,754 | 19,754 | |||
Other comprehensive income (loss), net of taxes | (5,758) | (5,758) | |||
Stock-based compensation expense | 1,958 | 4 | 1,954 | ||
Restricted stock units vested and distributed, net of shares withheld for taxes | (2,277) | 115 | (2,392) | ||
Shares issued under employee stock purchase program | 669 | 17 | 652 | ||
Balance at Mar. 31, 2018 | $ 611,075 | $ 30,672 | $ 418,810 | $ 167,094 | $ (5,501) |
Consolidated statements of cha8
Consolidated statements of changes in shareholders' equity (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Fair Value Election on Mortgage Servicing Rights Retained Earnings Adjustment, Tax | $ 396 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 19,754 | $ 9,753 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 1,106 | 1,002 |
Amortization of core deposits and other intangibles | 853 | 392 |
Capitalization of mortgage servicing rights | (13,510) | (15,013) |
Net change in fair value of mortgage servicing rights | (3,543) | 501 |
Stock-based compensation expense | 1,958 | 1,352 |
Provision for loan losses | 317 | (257) |
Provision for mortgage loan repurchases | 186 | 183 |
Accretion of yield on purchased loans | (1,687) | (1,160) |
Accretion of discounts and amortization of premiums on securities, net | 697 | 708 |
Loss (gain) from securities, net | 47 | (1) |
Originations of loans held for sale | (1,617,103) | (1,346,535) |
Proceeds from sale of loans held for sale | 1,707,527 | 1,507,296 |
Gain on sale and change in fair value of loans held for sale | (23,391) | (22,833) |
Net loss (gain) or write-downs of other real estate owned | 186 | (748) |
Loss on other assets | (68) | |
Provision for deferred income taxes | 5,482 | 5,425 |
Changes in: | ||
Other assets and interest receivable | (4,759) | 11,954 |
Accrued expenses and other liabilities | (26,207) | (4,107) |
Net cash provided by operating activities | 47,845 | 147,912 |
Activity in available-for-sale securities: | ||
Sales | 221 | |
Maturities, prepayments and calls | 16,503 | 19,480 |
Purchases | (81,990) | (4,987) |
Net increase in loans | (74,928) | (46,190) |
Purchases of premises and equipment | (704) | (459) |
Proceeds from the sale of other real estate owned | 1,432 | 2,228 |
Net cash used in investing activities | (139,466) | (29,928) |
Cash flows from financing activities: | ||
Net increase in demand and savings deposits | 83,076 | 31,135 |
Net increase (decrease) in time deposits | 18,680 | (1,498) |
Net increase (decrease) in securities sold under agreements to repurchase | 431 | (3,431) |
Decrease in short-term borrowings | (51,293) | (150,000) |
Decrease in long-term debt | (3,716) | (340) |
Share based compensation withholding obligation | (2,277) | (625) |
Net proceeds from sale of common stock | 669 | |
Net cash provided by (used in) financing activities | 45,570 | (124,759) |
Net change in cash and cash equivalents | (46,051) | (6,775) |
Cash and cash equivalents at beginning of the period | 119,751 | 136,327 |
Cash and cash equivalents at end of the period | 73,700 | 129,552 |
Supplemental cash flow information: | ||
Interest paid | 6,066 | 2,330 |
Taxes paid | 31 | 31 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 630 | 888 |
Transfers from other real estate owned to loans | 120 | |
Transfers from loans held for sale to loans | 1,599 | 4,341 |
Derecognition of rebooked GNMA delinquent loans (See Note 1) | 43,035 | |
Trade date payable - securities | 3,912 | |
Adoption of ASU 2016-01 (See Note 1) | $ (109) | |
Fair value election of mortgage servicing rights | $ 1,011 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Note (1)—Basis of presentation: FB Financial Corporation (the “Company”) is a bank holding company, headquartered in Nashville, Tennessee. The Company operates through its wholly owned bank subsidiary, FirstBank (the “Bank”), with 56 full-service bank branches across Tennessee, north Alabama and north Georgia, and a national mortgage business with office locations across the Southeast. The consolidated financial statements, including the notes thereto of the Company, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) interim reporting requirements, and therefore do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The accompanying consolidated financial statements have been prepared in conformity with GAAP 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 periods then ended. Actual results could differ significantly from those estimates. 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. Effective July 31, 2017, the Bank completed its previously announced acquisitions of Clayton Bank and Trust and American City Bank headquartered in Knoxville, Tennessee and Tullahoma, Tennessee, respectively. See Note 2, “Mergers and acquisitions” in these Notes to the consolidated unaudited financial statements for further details regarding acquisitions. The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no other subsequent events other than described below that occurred after March 31, 2018, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. On April 23, 2018, the Company declared the initiation of a regular quarterly dividend of $0.06 per share to be paid on May 15, 2018 to shareholders of record as of April 30, 2018, totaling approximately $1,841. As of March 31, 2018, the Company is considered a “controlled company” and is controlled by the Company’s Executive Chairman and former sole shareholder, James W. Ayers. Additionally, the Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). 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 is used to repurchase common stock at the average market price. The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended March 31, 2018 2017 Basic earnings per share calculation: Net income $ 19,754 $ 9,753 Weighted-average basic shares outstanding 30,613,284 24,138,437 Basic earnings per share $ 0.65 $ 0.40 Diluted earnings per share: Net income $ 19,754 $ 9,753 Weighted-average basic shares outstanding 30,613,284 24,138,437 Average diluted common shares outstanding 808,546 472,554 Weighted-average diluted shares outstanding 31,421,830 24,610,991 Diluted earnings per share $ 0.63 $ 0.40 Rebooked GNMA loans included in loans held for sale Government National Mortgage Association (“GNMA”) optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing and was the original transferor. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether the Company intends to exercise the buy-back option if the buyback option provides the transferor a more-than-trivial benefit. At March 31, 2018, there were $45,933 of delinquent GNMA loans that had previously been sold; however, the Company determined there was not a “more-than-trivial benefit” based on an analysis of interest rates and an assessment of potential reputational risk associated with these loans. As such, the Company did not rebook the GNMA loans as of March 31, 2018. At December 31, 2017, rebooked GNMA loans held for sale amounted to $43,035 with an offsetting liability included in accrued expenses and other liabilities in the same amount. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. Except as set forth below, the Company did not adopt any new accounting policies that were not disclosed in the Company’s 2017 audited consolidated financial statements included on Form 10-K. Recently adopted accounting principles: On January 1, 2018, the Company adopted the following newly issued accounting standards: In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The Company adopted this guidance on January 1, 2018 and all subsequent amendments to the ASU (collectively, “ASC 606”) which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, investment services and trust income, and the sale of OREO, all within the Banking Segment. The Company has evaluated the effect of this updated on these fee-based income streams and concluded that adoption did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The following is a summary of the implementation considerations for the revenue streams that fall within the scope of Topic 606: • Service charges on deposits, investment services and trust income, and interchange fees — Fees from these services are either transaction based, for which the performance obligations are satisfied when the individual transaction is processed, or set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. The adoption of Topic 606 had no impact on the Company's revenue recognition practice for these services. • Gains on sales of other real estate — ASU 2014-09 creates Topic 610-20, under which a gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. Topic 606 list several criteria which must exist to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. This presents a key difference between the current and new guidance related to the recognition of the gain when the institution finances the sale of the property. Rather than basing recognition on the amount of the buyer's initial investment, which was the primary consideration under prior guidance, the analysis is now based on various factors including not only the loan to value, but also the credit quality of the borrower, the structure of the loan, and any other factors that may affect collectability. While these differences may affect the decision to recognize or defer gains on sales of other real estate in circumstances where the Company has financed the sale, the effects are not expected to be material to its financial statements. 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. Results for reporting periods beginning after January 1, 2018 are presented under this method while prior period disclosures are presented under legacy GAAP. The Company recorded a net loss in beginning retained earnings of $109 in connection with this transition. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230).” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. This adoption did not have an impact on our financial statements. In May 2017, the FASB issued ASU 2017-09, “Stock Compensation - Scope of Modification Accounting (Topic 718): Scope of Modification Accounting.” The amendments in this ASU provide guidance on when changes to the terms or conditions of a share-based payment award are to be accounted for as modifications. Under ASU 2017-09, entities are not required to apply modification accounting to a share-based payment award when the award’s fair value, vesting conditions, and classification as an entity or a liability instrument remain the same after the change. ASU 2017-09 is effective for all entities beginning after December 15, 2017 including interim periods within the fiscal year. The adoption of this update on January 1, 2018 did not have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. There was no impact to the Company’s financial statements or disclosures as a result of this early adoption as of January 1, 2018. Newly issued not yet effective accounting standards: 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. 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 March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update will not have an impact on its consolidate financial statements. |
Mergers and acquisitions
Mergers and acquisitions | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Note (2)—Mergers and acquisitions: Clayton Bank and Trust and American City Bank On July 31, 2017, the Bank completed its merger with Clayton Bank and Trust (“CBT”) and American City Bank (“ACB” and together with CBT, the “Clayton Banks”), pursuant to the Stock Purchase Agreement with Clayton HC, Inc., a Tennessee corporation (“Seller”), and James L. Clayton, the majority shareholder of Seller, dated February 8, 2017, as amended on May 26, 2017, with a purchase price of approximately $236,484. The Company issued 1,521,200 shares of common stock and paid cash of $184,200 to purchase all of the outstanding shares of the Clayton Banks. At closing, the Clayton Banks merged with and into FirstBank, with FirstBank continuing as the surviving banking entity. Prior to the merger, the Clayton Banks operated 18 banking locations across Tennessee. The merger with the Clayton Banks has allowed the Company to further its strategic initiatives by expanding its geographic footprint in Knoxville and other Tennessee markets and accelerates the growth of the Company’s Banking segment. Goodwill of $90,323 recorded in connection with the transaction resulted primarily from anticipated synergies arising from the combination of certain operational areas of the Clayton Banks and the Company as well as the purchase premium inherent to buying a complete and successful banking operation. Goodwill is included in the Banking segment as substantially all of the operations resulting from the Clayton Banks merger is included in the Banking segment. In connection with the transaction, the Company incurred $1,193 and $487 in merger and conversion expenses during the three months ended March 31, 2018 and 2017, respectively. For income tax purposes, the merger with the Clayton Banks was treated as an asset purchase. As an asset purchase for income tax purposes, the carrying value of assets and liabilities for the Clayton Banks are the same for both financial reporting and income tax purposes; therefore, no deferred taxes were recorded at the date of acquisition. Additionally, this treatment allows for the deductibility of the goodwill and core deposit intangible for income tax purposes over 15 years. The Company accounted for the Clayton Banks transaction under the acquisition method under ASC Topic 805. Accordingly, the fair value of the assets acquired and liabilities assumed along with the resulting goodwill was recorded as of the date of the merger. The Company’s operating results for the three months ended March 31, 2018 include the operating results of the acquired assets and assumed liabilities of the Clayton Banks. As of December 31, 2017, the Company finalized its valuation of all assets acquired and liabilities assumed, resulting in no material changes to preliminary purchase accounting adjustments. The following tables present the final estimated fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired: As of July 31, 2017 As Recorded by FB Financial Corporation (1) Assets Cash and cash equivalents $ 49,059 Investment securities 59,493 FHLB stock 3,409 Loans 1,059,728 Allowance for loan losses — Premises and equipment 18,866 Other real estate owned 6,888 Intangibles, net 12,334 Other assets 5,978 Total assets $ 1,215,755 Liabilities Interest-bearing deposits $ 670,054 Non-interest bearing deposits 309,464 Borrowings 84,831 Accrued expenses and other liabilities 5,245 Total liabilities $ 1,069,594 Net assets acquired $ 146,161 Purchase price: Equity consideration Common stock issued 1,521,200 Price per share as of July 31, 2017 $ 34.37 Total equity consideration $ 52,284 Cash consideration 184,200 (2) Total consideration paid $ 236,484 Preliminary allocation of consideration paid: Fair value of net assets acquired including identifiable intangible assets $ 146,161 Goodwill 90,323 Total consideration paid $ 236,484 (1) Amounts include certain reclassifications of opening balances to conform to the Company’s presentation. (2) Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017. The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three months ended March 31, 2017 as though the merger had been completed as of January 1, 2016. The unaudited estimated pro forma information combines the historical results of the Clayton Banks with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments including loan discount accretion, amortization of core deposit and other intangibles and amortization of the discount on time deposits for the period presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three months ended March 31, 2017 Net interest income $ 46,687 Total revenues $ 79,281 Net income $ 16,728 |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investment securities | Note (3)—Investment securities: The amortized cost of securities and their fair values at March 31, 2018 and December 31, 2017 are shown below: March 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 999 $ — $ (17 ) $ 982 Mortgage-backed securities - residential 486,907 237 (14,214 ) 472,930 Municipals, tax exempt 113,492 1,582 (1,916 ) 113,158 Treasury securities 7,356 — (178 ) 7,178 Total $ 608,754 $ 1,819 $ (16,325 ) $ 594,248 As of March 31, 2018, the Company also had $3,099 in marketable equity securities recorded at fair value. A loss of $38 was recognized due to changes in fair value of these securities during the three months ended March 31, 2018. As of January 1, 2018, the Company adopted ASU 2016-01 (See Note 1) and reclassified $3,604 of other securities without readily determinable market values to other assets. December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 999 $ — $ (13 ) $ 986 Mortgage-backed securities - residential 425,557 374 (7,150 ) 418,781 Municipals, tax exempt 107,127 2,692 (568 ) 109,251 Treasury securities 7,345 — (93 ) 7,252 Total debt securities 541,028 3,066 (7,824 ) 536,270 Equity and other securities 7,870 1 (149 ) 7,722 Total investment securities $ 548,898 $ 3,067 $ (7,973 ) $ 543,992 Securities pledged at March 31, 2018 and December 31, 2017 had a carrying amount of $427,995 and $337,604, 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 March 31, 2018 and December 31, 2017 are shown below. 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. March 31, 2018 December 31, 2017 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 5,715 $ 5,841 $ 905 $ 925 Due in one to five years 24,165 24,396 28,332 28,878 Due in five to ten years 19,817 19,960 19,218 19,588 Due in over ten years 72,150 71,121 67,016 68,098 121,847 121,318 115,471 117,489 Mortgage-backed securities - residential 486,907 472,930 425,557 418,781 Total debt securities $ 608,754 $ 594,248 $ 541,028 $ 536,270 Sales and impairment of available-for-sale securities were as follows: Three Months Ended March 31, 2018 2017 Proceeds from sales $ 221 $ — Gross realized gains — — Gross realized losses 9 — The Company also recognized $1 in gains related to the early call of available for sale securities during the three months ended March 31, 2017. The following tables show gross unrealized losses at March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2018 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 $ — $ — $ 982 $ 17 $ 982 $ 17 Mortgage-backed securities - residential 163,771 3,236 274,285 10,978 438,056 14,214 Municipals, tax exempt 30,104 762 19,186 1,154 49,290 1,916 Treasury securities 7,177 178 — — 7,177 $ 178 Total debt securities $ 201,052 $ 4,176 $ 294,453 $ 12,149 $ 495,505 $ 16,325 December 31, 2017 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 $ — $ — $ 986 $ 13 $ 986 $ 13 Mortgage-backed securities - residential 107,611 980 290,258 6,170 397,869 7,150 Municipals, tax exempt 7,354 101 20,112 467 27,466 568 Treasury securities 7,252 93 — — 7,252 93 Total debt securities 122,217 1,174 311,356 6,650 433,573 7,824 Equity securities — — 3,050 149 3,050 149 $ 122,217 $ 1,174 $ 314,406 $ 6,799 $ 436,623 $ 7,973 As of March 31, 2018 and December 31, 2017, the Company’s securities portfolio consisted of 307 and 294 securities, 171 and 124 of which were in an unrealized loss position, respectively. The Company evaluates securities with unrealized losses for other-than-temporary impairment (OTTI) on a quarterly basis and recorded no OTTI for the three months ended March 31, 2018 and 2017. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. For debt securities, the unrealized losses associated with these investment securities are primarily driven by interest rates and are not due to the credit quality of the 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. As of March 31, 2018, the Company had a trade date payable related to securities purchases amounting to $3,912 that had not yet settled. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and allowance for loan losses | Note (4)—Loans and allowance for loan losses: Loans outstanding at March 31, 2018 and December 31, 2017, by major lending classification are as follows: March 31, December 31, 2018 2017 Commercial and industrial $ 765,115 $ 715,075 Construction 466,495 448,326 Residential real estate: 1-to-4 family mortgage 491,725 480,989 Residential line of credit 197,740 194,986 Multi-family mortgage 63,295 62,374 Commercial real estate: Owner occupied 499,331 495,872 Non-owner occupied 562,128 551,588 Consumer and other 198,834 217,701 Gross loans 3,244,663 3,166,911 Less: Allowance for loan losses (24,406 ) (24,041 ) Net loans $ 3,220,257 $ 3,142,870 As of March 31, 2018 and December 31, 2017, $1,245,847 and $968,567, respectively, of 1-to-4 family mortgage loans, loans held for sale and multi-family mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line. As of March 31, 2018 and December 31, 2017, $1,215,509 and $724,312, respectively, of commercial and industrial , construction, residential real estate, commercial real estate, and consumer and other loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. As of March 31, 2018 and December 31, 2017, the carrying value of purchased credit impaired loans (“PCI”) loans accounted for under ASC 310-30 Loans and Debt Securities Acquired with Deteriorated Credit Quality, Purchased Credit Impaired Accretable yield Balance at December 31, 2017 $ (17,682 ) Principal reductions/ pay-offs (1,294 ) Recoveries — Accretion 2,201 Other changes (180 ) Balance at March 31, 2018 $ (16,955 ) Balance at December 31, 2016 $ (2,444 ) Principal reductions/ pay-offs (698 ) Recoveries (23 ) Accretion 1,023 Balance at March 31, 2017 $ (2,142 ) Interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $2,201 and $1,023 was recognized on purchased credit impaired loans during the three months ended March 31, 2018 and 2017, respectively. This includes both the contractual interest income and the purchase accounting contribution through accretion of the liquidity discount and credit mark for changes in estimated cash flows. The total purchase accounting contribution through accretion for all purchased loans was $1,687 and $1,160 for three months ended March 31, 2018 and 2017, respectively. The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three months ended March 31, 2018 and 2017 (in thousands): 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 Three Months Ended March 31, 2018 Beginning balance - December 31, 2017 $ 4,461 $ 7,135 $ 3,197 $ 944 $ 434 $ 3,558 $ 2,817 $ 1,495 $ 24,041 Provision for loan losses 202 479 (30 ) 214 15 (567 ) (115 ) 119 317 Recoveries of loans previously charged-off 135 252 15 27 — 23 51 206 709 Loans charged off (220 ) — (60 ) (20 ) — — — (361 ) (661 ) Ending balance - March 31, 2018 $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 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 Three Months Ended March 31, 2017 Beginning balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Provision for loan losses 179 635 (239 ) (155 ) 4 81 (998 ) 236 (257 ) Recoveries of loans previously charged-off 83 29 26 56 — 4 1,639 13 1,850 Loans charged off (169 ) (6 ) (88 ) — — — — (179 ) (442 ) Ending balance - March 31, 2017 $ 5,402 $ 5,598 $ 2,896 $ 1,514 $ 508 $ 3,387 $ 2,660 $ 933 $ 22,898 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 March 31, 2018 and December 31, 2017: March 31, 2018 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 Amount of allowance allocated to: Individually evaluated for impairment $ 19 $ — $ 16 $ — $ — $ 95 $ 29 $ — $ 159 Collectively evaluated for impairment 4,559 7,866 3,106 1,165 449 2,919 2,724 1,459 24,247 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - March 31, 2018 $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 December 31, 2017 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 Amount of allowance allocated to: Individually evaluated for impairment $ 20 $ — $ 18 $ — $ — $ 120 $ 33 $ — $ 191 Collectively evaluated for impairment 4,441 7,135 3,179 944 434 3,438 2,784 1,495 23,850 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - December 31, 2017 $ 4,461 $ 7,135 $ 3,197 $ 944 $ 434 $ 3,558 $ 2,817 $ 1,495 $ 24,041 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 March 31, 2018 and December 31, 2017: March 31, 2018 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 $ 1,385 $ 1,285 $ 1,492 $ — $ 964 $ 2,150 $ 1,713 $ 29 $ 9,018 Collectively evaluated for impairment 761,779 457,785 467,329 197,740 62,313 485,411 542,351 175,185 3,149,893 Acquired with deteriorated credit quality 1,951 7,425 22,904 — 18 11,770 18,064 23,620 85,752 Ending balance - March 31, 2018 $ 765,115 $ 466,495 $ 491,725 $ 197,740 $ 63,295 $ 499,331 $ 562,128 $ 198,834 $ 3,244,663 December 31, 2017 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 $ 1,579 $ 1,289 $ 1,262 $ — $ 978 $ 2,520 $ 1,720 $ 25 $ 9,373 Collectively evaluated for impairment 711,352 439,309 456,229 194,986 61,376 481,390 531,704 192,357 3,068,703 Acquired with deteriorated credit quality 2,144 7,728 23,498 — 20 11,962 18,164 25,319 88,835 Ending balance - December 31, 2017 $ 715,075 $ 448,326 $ 480,989 $ 194,986 $ 62,374 $ 495,872 $ 551,588 $ 217,701 $ 3,166,911 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’s risk rating definitions include: Watch. Loans rated as watch includes loans in which management believes conditions have occurred, or may occur, which could result in the loan being downgraded to a worse rated category. Also included in watch are loans rated as special mention, which 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 rated 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 rated 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. Also included in this category are loans considered doubtful, which have all the weaknesses previously described and management believes those weaknesses may 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 are considered to be pass rated loans. The following table shows credit quality indicators by portfolio class at March 31, 2018 and December 31, 2017: March 31, 2018 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 704,689 $ 54,124 $ 4,351 $ 763,164 Construction 441,718 15,468 1,884 459,070 Residential real estate: 1-to-4 family mortgage 452,858 9,027 6,936 468,821 Residential line of credit 194,887 1,677 1,176 197,740 Multi-family mortgage 62,175 138 964 63,277 Commercial real estate: Owner occupied 457,347 25,962 4,252 487,561 Non-owner occupied 527,134 14,972 1,958 544,064 Consumer and other 172,260 2,379 575 175,214 Total loans, excluding purchased credit impaired loans $ 3,013,068 $ 123,747 $ 22,096 $ 3,158,911 Purchased credit impaired loans Commercial and industrial $ — $ 1,351 $ 600 $ 1,951 Construction — 3,422 4,003 7,425 Residential real estate: 1-to-4 family mortgage — 19,454 3,450 22,904 Residential line of credit — — — — Multi-family mortgage — — 18 18 Commercial real estate: Owner occupied — 4,565 7,205 11,770 Non-owner occupied — 7,517 10,547 18,064 Consumer and other — 18,704 4,916 23,620 Total purchased credit impaired loans $ — $ 55,013 $ 30,739 $ 85,752 Total loans $ 3,013,068 $ 178,760 $ 52,835 $ 3,244,663 December 31, 2017 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 657,595 $ 50,946 $ 4,390 $ 712,931 Construction 431,242 7,388 1,968 440,598 Residential real estate: 1-to-4 family mortgage 440,202 9,522 7,767 457,491 Residential line of credit 192,427 1,184 1,375 194,986 Multi-family mortgage 61,234 142 978 62,354 Commercial real estate: Owner occupied 451,140 28,308 4,462 483,910 Non-owner occupied 517,253 14,199 1,972 533,424 Consumer and other 189,081 2,712 589 192,382 Total loans, excluding purchased credit impaired loans $ 2,940,174 $ 114,401 $ 23,501 $ 3,078,076 Purchased credit impaired loans Commercial and industrial $ — $ 1,499 $ 645 $ 2,144 Construction — 3,324 4,404 7,728 Residential real estate: 1-to-4 family mortgage — 20,284 3,214 23,498 Residential line of credit — — — — Multi-family mortgage — — 20 20 Commercial real estate: Owner occupied — 4,631 7,331 11,962 Non-owner occupied — 7,359 10,805 18,164 Consumer and other — 19,751 5,568 25,319 Total purchased credit impaired loans $ — $ 56,848 $ 31,987 $ 88,835 Total loans $ 2,940,174 $ 171,249 $ 55,488 $ 3,166,911 PCI loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered to be performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. The accrual of interest is discontinued on PCI loans if management can no longer reliably estimate future cash flows on the loan. No PCI loans were classified as nonaccrual at March 31, 2018 or December 31, 2017 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. 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. 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, loans current on payments accruing interest and purchased credit impaired loans by category at March 31, 2018 and December 31, 2017: March 31, 2018 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 1,385 $ 619 $ 910 $ 760,250 $ 1,951 $ 765,115 Construction 250 329 460 458,031 7,425 466,495 Residential real estate: 1-to-4 family mortgage 3,666 1,067 2,009 462,079 22,904 491,725 Residential line of credit 1,013 356 370 196,001 — 197,740 Multi-family mortgage — — — 63,277 18 63,295 Commercial real estate: Owner occupied 202 — 1,903 485,456 11,770 499,331 Non-owner occupied 393 — 1,219 542,452 18,064 562,128 Consumer and other 1,640 318 83 173,173 23,620 198,834 Total $ 8,549 $ 2,689 $ 6,954 $ 3,140,719 $ 85,752 $ 3,244,663 December 31, 2017 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 5,859 $ 90 $ 533 $ 706,449 $ 2,144 $ 715,075 Construction 1,412 241 300 438,645 7,728 448,326 Residential real estate: 1-to-4 family mortgage 4,678 956 2,548 449,309 23,498 480,989 Residential line of credit 527 134 699 193,626 — 194,986 Multi-family mortgage — — — 62,354 20 62,374 Commercial real estate: Owner occupied 521 358 2,582 480,449 11,962 495,872 Non-owner occupied 121 — 1,371 531,932 18,164 551,588 Consumer and other 1,945 217 68 190,152 25,319 217,701 Total $ 15,063 $ 1,996 $ 8,101 $ 3,052,916 $ 88,835 $ 3,166,911 Impaired loans recognized in conformity with ASC 310 at March 31, 2018 and December 31, 2017, segregated by class, were as follows: March 31, 2018 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 52 $ 52 $ 19 Residential real estate: 1-to-4 family mortgage 191 492 16 Commercial real estate: Owner occupied 585 646 95 Non-owner occupied 142 149 29 Total $ 970 $ 1,339 $ 159 With no related allowance recorded Commercial and industrial $ 1,333 $ 1,539 $ — Construction 1,285 1,313 — Residential real estate: 1-to-4 family mortgage 1,301 1,306 — Multi-family mortgage 964 964 — Commercial real estate: Owner occupied 1,565 2,077 — Non-owner occupied 1,571 2,320 — Consumer and other 29 29 — Total $ 8,048 $ 9,548 $ — Total impaired loans $ 9,018 $ 10,887 $ 159 December 31, 2017 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 53 $ 53 $ 20 Construction — — — Residential real estate: 1-to-4 family mortgage 194 495 18 Commercial real estate: Owner occupied 844 1,123 120 Non-owner occupied 144 150 33 Consumer and other — — — Total $ 1,235 $ 1,821 $ 191 With no related allowance recorded: Commercial and industrial $ 1,526 $ 1,570 $ — Construction 1,289 1,313 — Residential real estate: 1-to-4 family mortgage 1,068 1,072 — Multi-family mortgage 978 978 — Commercial real estate: Owner occupied 1,676 2,168 — Non-owner occupied 1,576 2,325 — Consumer and other 25 25 — Total $ 8,138 $ 9,451 $ — Total impaired loans $ 9,373 $ 11,272 $ 191 Average recorded investment and interest income on a cash basis recognized during the three months ended March 31, 2018 and 2017 on impaired loans, segregated by class, were as follows: Three Months Ended March 31, 2018 Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 53 $ 1 Construction — — Residential real estate: 1-to-4 family mortgage 193 2 Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 715 6 Non-owner occupied 143 2 Consumer and other — — Total $ 1,104 $ 11 With no related allowance recorded: Commercial and industrial $ 1,430 $ 16 Construction 1,287 30 Residential real estate: 1-to-4 family mortgage 1,185 13 Residential line of credit — — Multi-family mortgage 971 12 Commercial real estate: Owner occupied 1,621 32 Non-owner occupied 1,574 7 Consumer and other 27 — Total $ 8,095 $ 110 Total impaired loans $ 9,199 $ 121 March 31, 2017 With a related allowance recorded: Commercial and industrial $ 791 $ 5 Construction — — Residential real estate: 1-to-4 family mortgage 101 — Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 629 12 Non-owner occupied 835 — Consumer and other 1 — Total $ 2,357 $ 17 With no related allowance recorded: Commercial and industrial $ 584 $ 9 Construction 1,496 5 Residential real estate: 1-to-4 family mortgage 2,243 17 Residential line of credit 156 — Multi-family mortgage 1,021 11 Commercial real estate: Owner occupied 1,977 38 Non-owner occupied 1,325 — Consumer and other 26 1 Total $ 8,828 $ 81 Total impaired loans $ 11,185 $ 98 As of March 31, 2018 and December 31, 2017, the Company has a recorded investment in troubled debt restructurings of $8,675 and $8,604, 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 $159 and $172 of specific reserves for those loans at March 31, 2018 and December 31, 2017, respectively, and has committed to lend additional amounts totaling up to $3 and $2, respectively to these customers. Of these loans, $3,233 and $3,205 were classified as non-accrual loans as of March 31, 2018 and December 31, 2017. The following tables present the financial effect of TDRs recorded during the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 249 $ 249 $ — Consumer and other 1 5 5 — Total 2 $ 254 $ 254 $ — Three Months Ended March 31, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 5 $ 5 $ — Commercial real estate: Owner occupied 1 377 377 — Non-owner occupied 2 711 711 — Total 4 $ 1,093 $ 1,093 $ — There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three months ended March 31, 2018 or 2017. 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 three months ended March 31, 2018 and 2017 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. |
Other Real Estate Owned
Other Real Estate Owned | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Note (5)—Other real estate owned: The amount reported as other real estate owned includes property acquired through foreclosure in addition to excess facilities held for sale and is carried at fair value less estimated cost to sell the property. The following table summarizes other real estate owned for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 16,442 $ 7,403 Transfers from loans 630 888 Properties sold (1,432 ) (2,228 ) (Loss) gain on sale of other real estate owned (43 ) 871 Transferred to loans (120 ) — Write-downs and partial liquidations (143 ) (123 ) Balance at end of period $ 15,334 $ 6,811 Foreclosed residential real estate properties included in the table above totaled $3,902 and $3,631 |
Mortgage Servicing Rights
Mortgage Servicing Rights | 3 Months Ended |
Mar. 31, 2018 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Mortgage servicing rights | Note (6)—Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Carrying value prior to policy change $ 76,107 $ 32,070 Fair value impact of change in accounting policy — 1,011 Carrying value at beginning of period 76,107 33,081 Capitalization 13,510 15,013 Change in fair value: Due to pay-offs/pay-downs (3,060 ) (265 ) Due to change in valuation inputs or assumptions 6,603 (236 ) Carrying value at March 31 $ 93,160 $ 47,593 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 three months ended March 31, 2018 and 2017, respectively: Three Months Ended March 31, 2018 2017 Servicing income: Servicing income $ 4,793 $ 2,748 Change in fair value of mortgage servicing rights 3,543 (501 ) Change in fair value of mortgage servicing rights hedging instruments (5,256 ) — Gross servicing income 3,080 2,247 Gross direct servicing expenses 1,795 1,020 Net servicing income $ 1,285 $ 1,227 Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2018 and December 31, 2017 are as follows: March 31, December 31, 2018 2017 Unpaid principal balance $ 7,423,932 $ 6,529,431 Weighted-average prepayment speed (CPR) 7.69 % 8.90 % Estimated impact on fair value of a 10% increase (2,997 ) (3,026 ) Estimated impact on fair value of a 20% increase (5,780 ) (5,855 ) Discount rate 10.01 % 9.75 % Estimated impact on fair value of a 100 bp increase (3,829 ) (3,052 ) Estimated impact on fair value of a 200 bp increase (7,379 ) (5,867 ) Weighted-average coupon interest rate 3.98 % 3.94 % Weighted-average servicing fee (basis points) 28 28 Weighted-average remaining maturity (in months) 322 335 From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. As of March 31, 2018 and December 31, 2017, there were no loans being serviced that related to the sale of mortgage servicing rights. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note (7)—Income taxes: Allocation of federal and state income taxes between current and deferred portions is as follows: For the three months ended March 31, 2018 2017 Current $ — $ — Deferred 5,482 5,425 Total $ 5,482 $ 5,425 Federal income tax expense for the three months ended March 31, 2018 and 2017 differs from the statutory federal rates of 21% and 35%, respectively, due to the following: For the three months ended March 31, 2018 2017 Federal taxes calculated at statutory rate $ 5,300 21.0 % $ 5,305 35.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,143 4.5 % 610 4.0 % Benefit of equity based compensation (736 ) -3.0 % (195 ) -1.3 % Municipal interest income (201 ) -0.8 % (366 ) -2.4 % Bank owned life insurance (12 ) 0.0 % (21 ) -0.2 % Other (12 ) 0.0 % 92 0.6 % Income tax expense, as reported $ 5,482 21.7 % $ 5,425 35.7 % The components of the net deferred tax liability at March 31, 2018 and December 31, 2017, are as follows: March 31, December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 6,359 $ 6,264 Amortization of core deposit intangible 832 759 Deferred compensation 3,711 6,158 Unrealized loss on available-for-sale debt securities 3,830 988 Other 5,501 3,599 Subtotal 20,233 17,768 Deferred tax liabilities: FHLB stock dividends (550 ) (550 ) Depreciation (4,344 ) (4,115 ) Cash flow hedges (866 ) — Mortgage servicing rights (24,274 ) (19,830 ) Other (5,564 ) (5,131 ) Subtotal (35,598 ) (29,626 ) Net deferred tax liability $ (15,365 ) $ (11,858 ) For the first quarter of 2018, the Company has a federal net operating loss carryforward of approximately $6.9 million and state net operating losses of $5.8 million. The Company projects that it will fully utilize these losses during the remainder of 2018. If not utilized, the Federal net operating loss will carry forward indefinitely and the state net operating losses will begin to expire in 2030. Tax periods for all fiscal years after 2013 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note (8)—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. March 31, December 31, 2018 2017 Commitments to extend credit, excluding interest rate lock commitments $ 959,271 $ 977,276 Letters of credit 22,214 22,882 Balance at end of period $ 981,485 $ 1,000,158 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 $1,119 and $849 For the three months ended March 31, 2018 2017 Balance at beginning of period $ 3,386 $ 2,659 Provision for loan repurchases or indemnifications 186 183 Recoveries on previous losses (58 ) — Balance at end of period $ 3,514 $ 2,842 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note (9)—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 forty-five days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s Consolidated Balance Sheets. The Company also enters into best effort or mandatory delivery forward commitments to sell residential mortgage loans to secondary market investors. Gains and losses arising from changes in the valuation of the rate-lock commitments and forward commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income. The Company enters into forward commitments, futures and options contracts that are not designated as hedging instruments as economic hedges of the change in the fair value of its MSRs. Gains and losses associated with these instruments are included in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income. The Company enters 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 customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures. In June of 2017, the Company entered into two interest rate swap agreements with notional amounts totaling $30,000 to hedge interest rate exposure on outstanding subordinate debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest and pays a fixed rate of interest. The interest rate swap contracts, which mature in June of 2024, are designated as cash flow hedges with the objective of reducing the variability in cash flows resulting from changes in interest rates. As of March 31, 2018 and December 31, 2017, the fair value of these contracts was $1,037 In July of 2017, the Company entered into three interest rate swap contracts on floating rate liabilities at the Bank level with notional amounts of $30,000, $35,000 and $35,000 for a period of three, four and five years, respectively. These interest rate swaps are designated as cash flow hedges with the objective of reducing the variability of cash flows associated with $100,000 of short-term FHLB borrowings obtained in conjunction with the Clayton Bank acquisition. Under these contracts, the Company receives a variable rate of interest and pays a fixed rate of interest. As of December 31, 2017, the fair value of these contracts was $1,127 included in those designated as hedging below. During the three months ended March 31, 2018, these swaps were cancelled, locking in a gain of $1,564 in other comprehensive income to be accreted over the three, four and five year terms of the underlying contracts. 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 tables provide details on the Company’s derivative financial instruments as of the dates presented: March 31, 2018 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 175,726 $ 2,360 $ 2,360 Forward commitments 919,571 — 1,295 Interest rate-lock commitments 692,977 10,179 — Futures contracts 243,000 1,180 — Option contracts 22,000 148 — Total $ 2,053,274 $ 13,867 $ 3,655 December 31, 2017 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 146,754 $ 1,146 $ 1,146 Forward commitments 870,574 — 553 Interest rate-lock commitments 504,156 6,768 — Futures contracts 283,000 315 — Option contracts 6,000 29 — Total $ 1,810,484 $ 8,258 $ 1,699 March 31, 2018 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 1,037 $ — Total $ 30,000 $ 1,037 $ — December 31, 2017 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 130,000 $ 1,432 $ — Total $ 130,000 $ 1,432 $ — Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows: Three Months Ended March 31, 2018 2017 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 3,411 $ 2,942 Forward commitments 5,318 (3,320 ) Futures contracts (2,447 ) — Options contracts 43 — Total $ 6,325 $ (378 ) Three Months Ended March 31, 2018 2017 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on long-term debt $ (32) — The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2018 2017 Designated as hedging: Amount of gain recognized in other comprehensive income, net of tax $ 1,273 — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Note (10)—Fair value of financial instruments: FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also 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: During the first quarter of 2018, the Company adopted ASU 2016-01, “Recognition and Measurement of Financial Assets and Liabilities.” The amendments included within this standard, which are applied prospectively, require the Company to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure the fair value using an exit price notion. Prior to adopting the amendments included in the standard, the Company measured fair value under an entry price notion. Investment securities—Investment 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. Investment 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. Fair value is used 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. Other real estate owned—Other real estate owned (“REO”) is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. 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 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 table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Due to the adoption of ASU 2016-01 as of January 1, 2018, the fair value as presented below is measured using the exit price notion in the periods after adoption and may not be comparable with prior periods presented as a result of the change in methodology. Fair Value March 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 73,700 $ 73,700 $ — $ — $ 73,700 Investment securities 597,347 — 597,347 — 597,347 Federal Home Loan Bank Stock 11,810 N/A N/A N/A N/A Loans, net 3,220,257 — — 3,213,659 3,213,659 Loans held for sale 414,518 — 414,518 — 414,518 Interest receivable 13,920 — 13,920 — 13,920 Mortgage servicing rights 93,160 — — 93,160 93,160 Derivatives 14,904 — 14,904 — 14,904 Financial liabilities: Deposits: Without stated maturities $ 3,059,142 $ 3,059,142 $ — $ — $ 3,059,142 With stated maturities 707,009 — 706,585 — 706,585 Securities sold under agreement to repurchase 14,724 14,724 — — 14,724 Short term borrowings 138,707 138,707 — — 138,707 Interest payable 1,857 526 1,331 — 1,857 Long-term debt 139,586 — 138,456 — 138,456 Derivatives 3,655 — 3,655 — 3,655 Fair Value December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 119,751 $ 119,751 $ — $ — $ 119,751 Investment securities 543,992 — 540,388 3,604 543,992 Federal Home Loan Bank Stock 11,412 N/A N/A N/A N/A Loans, net 3,142,870 — 3,064,373 77,027 3,141,400 Loans held for sale 526,185 — 526,185 — 526,185 Interest receivable 13,069 — 13,069 — 13,069 Mortgage servicing rights, net 76,107 — — 76,107 76,107 Derivatives 9,690 — 9,690 — 9,690 Financial liabilities: Deposits: Without stated maturities $ 2,976,066 $ 2,976,066 $ — $ — $ 2,976,066 With stated maturities 688,329 — 682,403 — 682,403 Securities sold under agreement to repurchase 14,293 14,293 — — 14,293 Short term borrowings 190,000 190,000 — — 190,000 Interest payable 1,504 575 929 — 1,504 Long-term debt 143,302 — 149,135 — 149,135 Derivatives 1,699 — 1,699 — 1,699 The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2018 are presented in the following tables: At March 31, 2018 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: Investment securities: U.S. government agency securities $ — $ 982 $ — $ 982 Mortgage-backed securities — 472,930 — 472,930 Municipals, tax-exempt — 113,158 — 113,158 Treasury securities — 7,178 — 7,178 Equity securities — 3,099 — 3,099 Total $ — $ 597,347 $ — $ 597,347 Loans held for sale — 414,518 — 414,518 Mortgage servicing rights — — 93,160 93,160 Derivatives — 14,904 — 14,904 Financial Liabilities: Derivatives $ — $ 3,655 $ — $ 3,655 The balances and levels of the assets measured at fair value on a non-recurring basis at March 31, 2018 are presented in the following tables: At March 31, 2018 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 800 $ 800 Impaired loans: Commercial and industrial — — — — Construction Residential real estate: 1-4 family mortgage — — 144 144 Commercial real estate: — — — — Owner occupied Non-owner occupied — — — — Consumer and other — — — — Total $ — $ — $ 144 $ 144 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2017 are presented in the following tables: At December 31, 2017 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 $ — $ 986 $ — $ 986 Mortgage-backed securities — 418,781 — 418,781 Municipals, tax-exempt — 109,251 — 109,251 Treasury securities — 7,252 — 7,252 Equity securities — 4,118 3,604 7,722 Total $ — $ 540,388 $ 3,604 $ 543,992 Loans held for sale — 526,185 — 526,185 Mortgage servicing rights — — 76,107 76,107 Derivatives — 9,690 — 9,690 Financial Liabilities: Derivatives $ — $ 1,699 $ — $ 1,699 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2017 are presented in the following tables: At December 31, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 13,174 $ 13,174 Impaired Loans: Commercial and industrial — — 1,971 1,971 Construction — — 4,211 4,211 Residential real estate: 1-4 family mortgage — — 21,902 21,902 Commercial real estate: Owner occupied — — 10,030 10,030 Non-owner occupied — — 13,593 13,593 Consumer and other — — 25,320 25,320 Total $ — $ — $ 77,027 $ 77,027 There were no transfers between Level 1, 2 or 3 during the periods presented. The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three months ended March 31, 2018 and 2017. Investment securities Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 3,604 $ 4,549 Reclassification of equity securities without a readily determinable fair value to other assets (1) (3,604 ) — Balance at end of period $ — $ 4,549 (1) See Note 1, “Basis of Presentation” in the Notes to the consolidated financial statements for additional details regarding the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. As of December 31, 2017, there was no established market for certain other securities, and as such, the Company had estimated that historical costs approximated market value. As of January 1, 2018, the Company adopted ASU 2016-01 (See Note 1) and reclassified $3,604 of these other securities without readily determinable market values to other assets. The following table presents information as of March 31, 2018 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 $ 144 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 800 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2017 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 $ 77,027 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 13,174 Appraised value of property less costs to sell Discount for costs to sell 0%-15% Appraisals for both collateral-dependent impaired loans and other 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 gains of $2,121 and $7,606 resulting from fair value changes of the mortgage loans were recorded in income during the three months ended March 31, 2018 and 2017, 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. Election of the fair value option allows the Company to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value. The fair value option election does not apply to the GNMA optional repurchase loans recorded as of December 31, 2017 which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. At March 31, 2018, there were $45,933 of delinquent GNMA loans that had previously been sold. The Company determined there not to be a more-than-trivial benefit based on an analysis of interest rates on an assessment of potential reputational risk associated with these loans. As such, the Company had $0 in rebooked GNMA loans included in loans held for sale as of March 31, 2018. GNMA optional repurchase loans totaled $43,035 at December 31, 2017 and are included in loans held for sale on the accompanying Consolidated Balance Sheet. See Note 1, “Basis of presentation” in the Notes to the consolidated financial statements for additional details regarding rebooked GNMA loans. 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 March 31, 2018 and December 31, 2017: March 31, 2018 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 414,017 $ 401,087 $ 12,930 Past due loans of 90 days or more — — — Nonaccrual loans 501 501 — December 31, 2017 Mortgage loans held for sale measured at fair value $ 482,089 $ 467,039 $ 15,050 Past due loans of 90 days or more 320 320 — Nonaccrual loans 741 741 — |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note (11)—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 and correspondent delivery channels. Additionally, the Mortgage Segment includes the servicing of residential retail 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. The following tables provides segment financial information for the three months ended March 31, 2018 and 2017 follows: Three Months Ended March 31, 2018 Banking Mortgage Consolidated Net interest income $ 48,771 $ (342 ) $ 48,429 Provision for loan loss 317 — 317 Mortgage banking income 6,108 22,076 28,184 Change in fair value of mortgage servicing rights (1) — (1,713 ) (1,713 ) Other noninterest income 6,804 — 6,804 Depreciation 978 128 1,106 Amortization of intangibles 853 — 853 Other noninterest mortgage banking expense 5,097 18,782 23,879 Other noninterest expense (2) 30,313 — 30,313 Income before income taxes 24,125 1,111 25,236 Income tax expense 5,482 Net income 19,754 Total assets $ 4,220,543 $ 504,873 $ 4,725,416 Goodwill 137,090 100 137,190 (1) Included in mortgage banking income, net of hedging gains/losses. (2) Included $1,193 in merger and conversion expenses related to the merger with the Clayton Banks. Three Months Ended March 31, 2017 Banking Mortgage Consolidated Net interest income $ 29,856 $ 395 $ 30,251 Provision for loan loss (257 ) — (257 ) Mortgage banking income 5,666 19,915 25,581 Net, change in fair value of mortgage servicing rights (1) — (501 ) (501 ) Other noninterest income 6,007 — 6,007 Depreciation and amortization 864 138 1,002 Amortization of intangibles 392 — 392 Other noninterest mortgage banking expense 4,836 17,532 22,368 Other noninterest expense (2) 22,655 — 22,655 Income before income taxes 13,039 2,139 15,178 Income tax expense 5,425 Net income 9,753 Total assets $ 2,705,118 $ 461,341 $ 3,166,459 Goodwill 46,767 100 46,867 (1) Included in mortgage banking income. (2) Included $487 in merger and conversion expenses related to the merger with the Clayton Banks. Our Banking segment provides our Mortgage segment with an intercompany warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit, which eliminated in consolidation, had a prime interest rate of 4.75% and 4.00% as of March 31, 2018 and 2017, 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 $4,508 and $3,551 for the three months ended March 31, 2018 and 2017, respectively. |
Minimum Capital Requirements
Minimum Capital Requirements | 3 Months Ended |
Mar. 31, 2018 | |
Banking And Thrift [Abstract] | |
Minimum capital requirements | Note (12)—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 March 31, 2018 and December 31, 2017 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 March 31, 2018 and December 31, 2017, the Bank and Company met all capital adequacy requirements to which it is subject. Also, as of March 31, 2018, the most recent notification from the Federal Deposit Insurance Corporation (“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. As of March 31, 2018 and December 31, 2017, the buffer was 1.88% and 1.25%, respectively. 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 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 March 31, 2018 Total Capital (to risk-weighted assets) FB Financial Corporation $ 506,921 12.3 % $ 328,636 8.0 % $ 405,865 9.9 % N/A N/A FirstBank 476,454 11.6 % 328,589 8.0 % 405,807 9.9 % $ 410,736 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 482,515 11.8 % $ 246,391 6.0 % $ 323,593 7.9 % N/A N/A FirstBank 452,048 11.0 % 246,348 6.0 % 323,537 7.9 % $ 246,348 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 482,515 10.7 % $ 180,043 4.0 % N/A N/A N/A N/A FirstBank 452,048 10.0 % 180,819 4.0 % N/A N/A $ 226,024 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 452,515 11.0 % $ 184,784 4.5 % $ 261,982 6.4 % N/A N/A FirstBank 452,048 11.0 % 184,761 4.5 % 261,950 6.4 % $ 266,877 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, 2017 Total Capital (to risk-weighted assets) FB Financial Corporation $ 496,422 12.0 % $ 330,672 8.0 % $ 382,340 9.3 % N/A N/A FirstBank 466,102 11.3 % 329,984 8.0 % 381,544 9.3 % $ 412,480 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 472,381 11.4 % $ 247,969 6.0 % $ 299,629 7.3 % N/A N/A FirstBank 442,061 10.7 % 247,422 6.0 % 298,968 7.3 % $ 247,422 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 472,381 10.5 % $ 180,643 4.0 % N/A N/A N/A N/A FirstBank 442,061 9.8 % 180,987 4.0 % N/A N/A $ 226,234 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 442,381 10.7 % $ 185,874 4.5 % $ 237,506 5.8 % N/A N/A FirstBank 442,061 10.7 % 185,567 4.5 % 237,113 5.8 % $ 268,041 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note (13)—Stock-Based Compensation: The Company granted shares of common stock and restricted stock units as a part of its initial public offering and compensation arrangements for the benefit of employees, executive officers, and directors. 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. At March 31, 2018 and December 31, 2017, there were 29,172 and 67,470 units valued at $1,184 and $2,833, respectively, outstanding under the equity based incentive plans for employees who elected cash settlement of EBI units. Expense related to the cash settled EBI for the three months ended March 31, 2018 and 2017 was $117 and $298, respectively. The following table summarizes information about vested and unvested restricted stock units, excluding cash-settled EBI units discussed above, outstanding at March 31, 2018 and 2017: March 31, 2018 2017 Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at beginning of period (unvested) 1,214,325 $ 19.97 1,200,848 19.00 Grants 105,429 39.90 73,801 33.48 Released and distributed (vested) (170,160 ) 21.24 (70,687 ) 19.00 Forfeited/expired (5,556 ) 19.00 (544 ) 19.00 Balance at end of period (unvested) 1,144,038 $ 21.11 1,203,418 19.15 The total fair value of restricted stock units vested and released, excluding cash-settled EBI units discussed above, was $3,614 and $1,343 for the three months ended March 31, 2018 and 2017, respectively. The compensation cost related to stock grants and vesting of restricted stock units, excluding cash-settled EBI units discussed above, was $1,811 and $1,352 for the three months ended March 31, 2018 and 2017, respectively. This included a one-time expense of $249 related to the modification of vesting terms of certain grants during the three months ended March 31, 2018. As of March 31, 2018 and December 31, 2017, there were $15,696 and $12,950, respectively, of total unrecognized compensation cost related to nonvested restricted stock units, excluding cash-settled EBI units discussed above, which is expected to be recognized over a weighted-average period of 2.78 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 95%, of the lower of the market 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). There were 16,537 shares issued under the ESPP during the three months ended March 31, 2018. There were no such issuances during the three months ended March 31, 2017. As of March 31, 2018 and December 31, 2017, there were 2,444,428 shares and 2,460,965 shares, respectively, available for issuance under the ESPP. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note (14)—Related party transactions: (A) Loans: The Bank has made and expects to continue to make loans to the directors, certain management and executive officers of the Company and their affiliates in the ordinary course of business. An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2018 $ 21,012 New loans and advances 1,611 Repayments (1,537 ) Loans outstanding at March 31, 2018 $ 21,086 Unfunded commitments to certain executive officers and directors and their associates totaled $6,373 and $4,672 at March 31, 2018 and December 31, 2017, respectively. (B) Deposits: The Bank held deposits from related parties totaling $107,453 and $110,465 as of March 31, 2018 and December 31, 2017, respectively. (C) Leases: The Bank leases various office spaces from entities related to the majority shareholder and his son, who is also a Director of the Company, under varying terms. The Company had $132 and $137 in unamortized leasehold improvements related to these leases at March 31, 2018 and December 31, 2017, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $148 and $126 for the three months ended March 31, 2018 and 2017, respectively. (D) Other Investments: 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 $183 and $200 as of March 31, 2018 and December 31, 2017, respectively. (E) Aviation time sharing agreement: Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by the majority shareholder and his son, who is also a Director of the Company. This replaces the previous agreement dated December 21, 2012. During the three months ended March 31, 2018 and 2017, the Company made payments of $72 and $25, respectively, under these agreements. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Principles | Recently adopted accounting principles: On January 1, 2018, the Company adopted the following newly issued accounting standards: In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers”. The Company adopted this guidance on January 1, 2018 and all subsequent amendments to the ASU (collectively, “ASC 606”) which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain (loss) from the transfer of nonfinancial assets, such as OREO. The majority of the Company’s revenues come from interest income and other sources, including loans, leases, securities and derivatives that are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented within Noninterest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include deposit service charges on deposits, interchange income, investment services and trust income, and the sale of OREO, all within the Banking Segment. The Company has evaluated the effect of this updated on these fee-based income streams and concluded that adoption did not result in a change to the accounting for any of the in-scope revenue streams; as such, no cumulative effect adjustment was recorded. The following is a summary of the implementation considerations for the revenue streams that fall within the scope of Topic 606: • Service charges on deposits, investment services and trust income, and interchange fees — Fees from these services are either transaction based, for which the performance obligations are satisfied when the individual transaction is processed, or set periodic service charges, for which the performance obligations are satisfied over the period the service is provided. Transaction based fees are recognized at the time the transaction is processed, and periodic service charges are recognized over the service period. The adoption of Topic 606 had no impact on the Company's revenue recognition practice for these services. • Gains on sales of other real estate — ASU 2014-09 creates Topic 610-20, under which a gain on sale should be recognized when a contract for sale exists and control of the asset has been transferred to the buyer. Topic 606 list several criteria which must exist to conclude that a contract for sale exists, including a determination that the institution will collect substantially all of the consideration to which it is entitled. This presents a key difference between the current and new guidance related to the recognition of the gain when the institution finances the sale of the property. Rather than basing recognition on the amount of the buyer's initial investment, which was the primary consideration under prior guidance, the analysis is now based on various factors including not only the loan to value, but also the credit quality of the borrower, the structure of the loan, and any other factors that may affect collectability. While these differences may affect the decision to recognize or defer gains on sales of other real estate in circumstances where the Company has financed the sale, the effects are not expected to be material to its financial statements. 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. Results for reporting periods beginning after January 1, 2018 are presented under this method while prior period disclosures are presented under legacy GAAP. The Company recorded a net loss in beginning retained earnings of $109 in connection with this transition. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments (Topic 230).” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. This adoption did not have an impact on our financial statements. In May 2017, the FASB issued ASU 2017-09, “Stock Compensation - Scope of Modification Accounting (Topic 718): Scope of Modification Accounting.” The amendments in this ASU provide guidance on when changes to the terms or conditions of a share-based payment award are to be accounted for as modifications. Under ASU 2017-09, entities are not required to apply modification accounting to a share-based payment award when the award’s fair value, vesting conditions, and classification as an entity or a liability instrument remain the same after the change. ASU 2017-09 is effective for all entities beginning after December 15, 2017 including interim periods within the fiscal year. The adoption of this update on January 1, 2018 did not have a significant impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. There was no impact to the Company’s financial statements or disclosures as a result of this early adoption as of January 1, 2018. Newly issued not yet effective accounting standards: 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. 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 March 2017, the FASB issued ASU 2017-08, “Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update will not have an impact on its consolidate financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: Three Months Ended March 31, 2018 2017 Basic earnings per share calculation: Net income $ 19,754 $ 9,753 Weighted-average basic shares outstanding 30,613,284 24,138,437 Basic earnings per share $ 0.65 $ 0.40 Diluted earnings per share: Net income $ 19,754 $ 9,753 Weighted-average basic shares outstanding 30,613,284 24,138,437 Average diluted common shares outstanding 808,546 472,554 Weighted-average diluted shares outstanding 31,421,830 24,610,991 Diluted earnings per share $ 0.63 $ 0.40 |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) - Clayton Banks | 3 Months Ended |
Mar. 31, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | As of December 31, 2017, the Company finalized its valuation of all assets acquired and liabilities assumed, resulting in no material changes to preliminary purchase accounting adjustments. The following tables present the final estimated fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired: As of July 31, 2017 As Recorded by FB Financial Corporation (1) Assets Cash and cash equivalents $ 49,059 Investment securities 59,493 FHLB stock 3,409 Loans 1,059,728 Allowance for loan losses — Premises and equipment 18,866 Other real estate owned 6,888 Intangibles, net 12,334 Other assets 5,978 Total assets $ 1,215,755 Liabilities Interest-bearing deposits $ 670,054 Non-interest bearing deposits 309,464 Borrowings 84,831 Accrued expenses and other liabilities 5,245 Total liabilities $ 1,069,594 Net assets acquired $ 146,161 |
Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired | Purchase price: Equity consideration Common stock issued 1,521,200 Price per share as of July 31, 2017 $ 34.37 Total equity consideration $ 52,284 Cash consideration 184,200 (2) Total consideration paid $ 236,484 Preliminary allocation of consideration paid: Fair value of net assets acquired including identifiable intangible assets $ 146,161 Goodwill 90,323 Total consideration paid $ 236,484 |
Business Acquisition, Pro Forma Information | The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three months ended March 31, 2017 Net interest income $ 46,687 Total revenues $ 79,281 Net income $ 16,728 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 and December 31, 2017 are shown below: March 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 999 $ — $ (17 ) $ 982 Mortgage-backed securities - residential 486,907 237 (14,214 ) 472,930 Municipals, tax exempt 113,492 1,582 (1,916 ) 113,158 Treasury securities 7,356 — (178 ) 7,178 Total $ 608,754 $ 1,819 $ (16,325 ) $ 594,248 December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 999 $ — $ (13 ) $ 986 Mortgage-backed securities - residential 425,557 374 (7,150 ) 418,781 Municipals, tax exempt 107,127 2,692 (568 ) 109,251 Treasury securities 7,345 — (93 ) 7,252 Total debt securities 541,028 3,066 (7,824 ) 536,270 Equity and other securities 7,870 1 (149 ) 7,722 Total investment securities $ 548,898 $ 3,067 $ (7,973 ) $ 543,992 |
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. March 31, 2018 December 31, 2017 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 5,715 $ 5,841 $ 905 $ 925 Due in one to five years 24,165 24,396 28,332 28,878 Due in five to ten years 19,817 19,960 19,218 19,588 Due in over ten years 72,150 71,121 67,016 68,098 121,847 121,318 115,471 117,489 Mortgage-backed securities - residential 486,907 472,930 425,557 418,781 Total debt securities $ 608,754 $ 594,248 $ 541,028 $ 536,270 |
Summary of Sales and Impairment of Available-for-Sale Securities | Sales and impairment of available-for-sale securities were as follows: Three Months Ended March 31, 2018 2017 Proceeds from sales $ 221 $ — Gross realized gains — — Gross realized losses 9 — |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses at March 31, 2018 and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2018 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 $ — $ — $ 982 $ 17 $ 982 $ 17 Mortgage-backed securities - residential 163,771 3,236 274,285 10,978 438,056 14,214 Municipals, tax exempt 30,104 762 19,186 1,154 49,290 1,916 Treasury securities 7,177 178 — — 7,177 $ 178 Total debt securities $ 201,052 $ 4,176 $ 294,453 $ 12,149 $ 495,505 $ 16,325 December 31, 2017 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 $ — $ — $ 986 $ 13 $ 986 $ 13 Mortgage-backed securities - residential 107,611 980 290,258 6,170 397,869 7,150 Municipals, tax exempt 7,354 101 20,112 467 27,466 568 Treasury securities 7,252 93 — — 7,252 93 Total debt securities 122,217 1,174 311,356 6,650 433,573 7,824 Equity securities — — 3,050 149 3,050 149 $ 122,217 $ 1,174 $ 314,406 $ 6,799 $ 436,623 $ 7,973 |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans Outstanding by Major Lending Classification | Loans outstanding at March 31, 2018 and December 31, 2017, by major lending classification are as follows: March 31, December 31, 2018 2017 Commercial and industrial $ 765,115 $ 715,075 Construction 466,495 448,326 Residential real estate: 1-to-4 family mortgage 491,725 480,989 Residential line of credit 197,740 194,986 Multi-family mortgage 63,295 62,374 Commercial real estate: Owner occupied 499,331 495,872 Non-owner occupied 562,128 551,588 Consumer and other 198,834 217,701 Gross loans 3,244,663 3,166,911 Less: Allowance for loan losses (24,406 ) (24,041 ) Net loans $ 3,220,257 $ 3,142,870 |
Changes in Accretable Yield on Purchase Credit Impaired Loans | The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Purchased Credit Impaired Accretable yield Balance at December 31, 2017 $ (17,682 ) Principal reductions/ pay-offs (1,294 ) Recoveries — Accretion 2,201 Other changes (180 ) Balance at March 31, 2018 $ (16,955 ) Balance at December 31, 2016 $ (2,444 ) Principal reductions/ pay-offs (698 ) Recoveries (23 ) Accretion 1,023 Balance at March 31, 2017 $ (2,142 ) |
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest | Interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $2,201 and $1,023 was recognized on purchased credit impaired loans during the three months ended March 31, 2018 and 2017, respectively. This includes both the contractual interest income and the purchase accounting contribution through accretion of the liquidity discount and credit mark for changes in estimated cash flows. The total purchase accounting contribution through accretion for all purchased loans was $1,687 and $1,160 for three months ended March 31, 2018 and 2017, respectively. The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three months ended March 31, 2018 and 2017 (in thousands): 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 Three Months Ended March 31, 2018 Beginning balance - December 31, 2017 $ 4,461 $ 7,135 $ 3,197 $ 944 $ 434 $ 3,558 $ 2,817 $ 1,495 $ 24,041 Provision for loan losses 202 479 (30 ) 214 15 (567 ) (115 ) 119 317 Recoveries of loans previously charged-off 135 252 15 27 — 23 51 206 709 Loans charged off (220 ) — (60 ) (20 ) — — — (361 ) (661 ) Ending balance - March 31, 2018 $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 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 Three Months Ended March 31, 2017 Beginning balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Provision for loan losses 179 635 (239 ) (155 ) 4 81 (998 ) 236 (257 ) Recoveries of loans previously charged-off 83 29 26 56 — 4 1,639 13 1,850 Loans charged off (169 ) (6 ) (88 ) — — — — (179 ) (442 ) Ending balance - March 31, 2017 $ 5,402 $ 5,598 $ 2,896 $ 1,514 $ 508 $ 3,387 $ 2,660 $ 933 $ 22,898 |
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 March 31, 2018 and December 31, 2017: March 31, 2018 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 Amount of allowance allocated to: Individually evaluated for impairment $ 19 $ — $ 16 $ — $ — $ 95 $ 29 $ — $ 159 Collectively evaluated for impairment 4,559 7,866 3,106 1,165 449 2,919 2,724 1,459 24,247 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - March 31, 2018 $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 December 31, 2017 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 Amount of allowance allocated to: Individually evaluated for impairment $ 20 $ — $ 18 $ — $ — $ 120 $ 33 $ — $ 191 Collectively evaluated for impairment 4,441 7,135 3,179 944 434 3,438 2,784 1,495 23,850 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - December 31, 2017 $ 4,461 $ 7,135 $ 3,197 $ 944 $ 434 $ 3,558 $ 2,817 $ 1,495 $ 24,041 |
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 March 31, 2018 and December 31, 2017: March 31, 2018 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 $ 1,385 $ 1,285 $ 1,492 $ — $ 964 $ 2,150 $ 1,713 $ 29 $ 9,018 Collectively evaluated for impairment 761,779 457,785 467,329 197,740 62,313 485,411 542,351 175,185 3,149,893 Acquired with deteriorated credit quality 1,951 7,425 22,904 — 18 11,770 18,064 23,620 85,752 Ending balance - March 31, 2018 $ 765,115 $ 466,495 $ 491,725 $ 197,740 $ 63,295 $ 499,331 $ 562,128 $ 198,834 $ 3,244,663 December 31, 2017 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 $ 1,579 $ 1,289 $ 1,262 $ — $ 978 $ 2,520 $ 1,720 $ 25 $ 9,373 Collectively evaluated for impairment 711,352 439,309 456,229 194,986 61,376 481,390 531,704 192,357 3,068,703 Acquired with deteriorated credit quality 2,144 7,728 23,498 — 20 11,962 18,164 25,319 88,835 Ending balance - December 31, 2017 $ 715,075 $ 448,326 $ 480,989 $ 194,986 $ 62,374 $ 495,872 $ 551,588 $ 217,701 $ 3,166,911 |
Credit Quality Indicators by Portfolio Class | The following table shows credit quality indicators by portfolio class at March 31, 2018 and December 31, 2017: March 31, 2018 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 704,689 $ 54,124 $ 4,351 $ 763,164 Construction 441,718 15,468 1,884 459,070 Residential real estate: 1-to-4 family mortgage 452,858 9,027 6,936 468,821 Residential line of credit 194,887 1,677 1,176 197,740 Multi-family mortgage 62,175 138 964 63,277 Commercial real estate: Owner occupied 457,347 25,962 4,252 487,561 Non-owner occupied 527,134 14,972 1,958 544,064 Consumer and other 172,260 2,379 575 175,214 Total loans, excluding purchased credit impaired loans $ 3,013,068 $ 123,747 $ 22,096 $ 3,158,911 Purchased credit impaired loans Commercial and industrial $ — $ 1,351 $ 600 $ 1,951 Construction — 3,422 4,003 7,425 Residential real estate: 1-to-4 family mortgage — 19,454 3,450 22,904 Residential line of credit — — — — Multi-family mortgage — — 18 18 Commercial real estate: Owner occupied — 4,565 7,205 11,770 Non-owner occupied — 7,517 10,547 18,064 Consumer and other — 18,704 4,916 23,620 Total purchased credit impaired loans $ — $ 55,013 $ 30,739 $ 85,752 Total loans $ 3,013,068 $ 178,760 $ 52,835 $ 3,244,663 December 31, 2017 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 657,595 $ 50,946 $ 4,390 $ 712,931 Construction 431,242 7,388 1,968 440,598 Residential real estate: 1-to-4 family mortgage 440,202 9,522 7,767 457,491 Residential line of credit 192,427 1,184 1,375 194,986 Multi-family mortgage 61,234 142 978 62,354 Commercial real estate: Owner occupied 451,140 28,308 4,462 483,910 Non-owner occupied 517,253 14,199 1,972 533,424 Consumer and other 189,081 2,712 589 192,382 Total loans, excluding purchased credit impaired loans $ 2,940,174 $ 114,401 $ 23,501 $ 3,078,076 Purchased credit impaired loans Commercial and industrial $ — $ 1,499 $ 645 $ 2,144 Construction — 3,324 4,404 7,728 Residential real estate: 1-to-4 family mortgage — 20,284 3,214 23,498 Residential line of credit — — — — Multi-family mortgage — — 20 20 Commercial real estate: Owner occupied — 4,631 7,331 11,962 Non-owner occupied — 7,359 10,805 18,164 Consumer and other — 19,751 5,568 25,319 Total purchased credit impaired loans $ — $ 56,848 $ 31,987 $ 88,835 Total loans $ 2,940,174 $ 171,249 $ 55,488 $ 3,166,911 |
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. 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, loans current on payments accruing interest and purchased credit impaired loans by category at March 31, 2018 and December 31, 2017: March 31, 2018 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 1,385 $ 619 $ 910 $ 760,250 $ 1,951 $ 765,115 Construction 250 329 460 458,031 7,425 466,495 Residential real estate: 1-to-4 family mortgage 3,666 1,067 2,009 462,079 22,904 491,725 Residential line of credit 1,013 356 370 196,001 — 197,740 Multi-family mortgage — — — 63,277 18 63,295 Commercial real estate: Owner occupied 202 — 1,903 485,456 11,770 499,331 Non-owner occupied 393 — 1,219 542,452 18,064 562,128 Consumer and other 1,640 318 83 173,173 23,620 198,834 Total $ 8,549 $ 2,689 $ 6,954 $ 3,140,719 $ 85,752 $ 3,244,663 December 31, 2017 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 5,859 $ 90 $ 533 $ 706,449 $ 2,144 $ 715,075 Construction 1,412 241 300 438,645 7,728 448,326 Residential real estate: 1-to-4 family mortgage 4,678 956 2,548 449,309 23,498 480,989 Residential line of credit 527 134 699 193,626 — 194,986 Multi-family mortgage — — — 62,354 20 62,374 Commercial real estate: Owner occupied 521 358 2,582 480,449 11,962 495,872 Non-owner occupied 121 — 1,371 531,932 18,164 551,588 Consumer and other 1,945 217 68 190,152 25,319 217,701 Total $ 15,063 $ 1,996 $ 8,101 $ 3,052,916 $ 88,835 $ 3,166,911 |
Impaired Loans Recognized, Segregated by Class | Impaired loans recognized in conformity with ASC 310 at March 31, 2018 and December 31, 2017, segregated by class, were as follows: March 31, 2018 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 52 $ 52 $ 19 Residential real estate: 1-to-4 family mortgage 191 492 16 Commercial real estate: Owner occupied 585 646 95 Non-owner occupied 142 149 29 Total $ 970 $ 1,339 $ 159 With no related allowance recorded Commercial and industrial $ 1,333 $ 1,539 $ — Construction 1,285 1,313 — Residential real estate: 1-to-4 family mortgage 1,301 1,306 — Multi-family mortgage 964 964 — Commercial real estate: Owner occupied 1,565 2,077 — Non-owner occupied 1,571 2,320 — Consumer and other 29 29 — Total $ 8,048 $ 9,548 $ — Total impaired loans $ 9,018 $ 10,887 $ 159 December 31, 2017 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 53 $ 53 $ 20 Construction — — — Residential real estate: 1-to-4 family mortgage 194 495 18 Commercial real estate: Owner occupied 844 1,123 120 Non-owner occupied 144 150 33 Consumer and other — — — Total $ 1,235 $ 1,821 $ 191 With no related allowance recorded: Commercial and industrial $ 1,526 $ 1,570 $ — Construction 1,289 1,313 — Residential real estate: 1-to-4 family mortgage 1,068 1,072 — Multi-family mortgage 978 978 — Commercial real estate: Owner occupied 1,676 2,168 — Non-owner occupied 1,576 2,325 — Consumer and other 25 25 — Total $ 8,138 $ 9,451 $ — Total impaired loans $ 9,373 $ 11,272 $ 191 Average recorded investment and interest income on a cash basis recognized during the three months ended March 31, 2018 and 2017 on impaired loans, segregated by class, were as follows: Three Months Ended March 31, 2018 Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 53 $ 1 Construction — — Residential real estate: 1-to-4 family mortgage 193 2 Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 715 6 Non-owner occupied 143 2 Consumer and other — — Total $ 1,104 $ 11 With no related allowance recorded: Commercial and industrial $ 1,430 $ 16 Construction 1,287 30 Residential real estate: 1-to-4 family mortgage 1,185 13 Residential line of credit — — Multi-family mortgage 971 12 Commercial real estate: Owner occupied 1,621 32 Non-owner occupied 1,574 7 Consumer and other 27 — Total $ 8,095 $ 110 Total impaired loans $ 9,199 $ 121 March 31, 2017 With a related allowance recorded: Commercial and industrial $ 791 $ 5 Construction — — Residential real estate: 1-to-4 family mortgage 101 — Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 629 12 Non-owner occupied 835 — Consumer and other 1 — Total $ 2,357 $ 17 With no related allowance recorded: Commercial and industrial $ 584 $ 9 Construction 1,496 5 Residential real estate: 1-to-4 family mortgage 2,243 17 Residential line of credit 156 — Multi-family mortgage 1,021 11 Commercial real estate: Owner occupied 1,977 38 Non-owner occupied 1,325 — Consumer and other 26 1 Total $ 8,828 $ 81 Total impaired loans $ 11,185 $ 98 |
Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 249 $ 249 $ — Consumer and other 1 5 5 — Total 2 $ 254 $ 254 $ — Three Months Ended March 31, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 5 $ 5 $ — Commercial real estate: Owner occupied 1 377 377 — Non-owner occupied 2 711 711 — Total 4 $ 1,093 $ 1,093 $ — |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Real Estate [Abstract] | |
Summary of Other Real Estate Owned | The following table summarizes other real estate owned for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 16,442 $ 7,403 Transfers from loans 630 888 Properties sold (1,432 ) (2,228 ) (Loss) gain on sale of other real estate owned (43 ) 871 Transferred to loans (120 ) — Write-downs and partial liquidations (143 ) (123 ) Balance at end of period $ 15,334 $ 6,811 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 the three months ended March 31, 2018 and 2017: Three Months Ended March 31, 2018 2017 Carrying value prior to policy change $ 76,107 $ 32,070 Fair value impact of change in accounting policy — 1,011 Carrying value at beginning of period 76,107 33,081 Capitalization 13,510 15,013 Change in fair value: Due to pay-offs/pay-downs (3,060 ) (265 ) Due to change in valuation inputs or assumptions 6,603 (236 ) Carrying value at March 31 $ 93,160 $ 47,593 |
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 three months ended March 31, 2018 and 2017, respectively: Three Months Ended March 31, 2018 2017 Servicing income: Servicing income $ 4,793 $ 2,748 Change in fair value of mortgage servicing rights 3,543 (501 ) Change in fair value of mortgage servicing rights hedging instruments (5,256 ) — Gross servicing income 3,080 2,247 Gross direct servicing expenses 1,795 1,020 Net servicing income $ 1,285 $ 1,227 |
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 March 31, 2018 and December 31, 2017 are as follows: March 31, December 31, 2018 2017 Unpaid principal balance $ 7,423,932 $ 6,529,431 Weighted-average prepayment speed (CPR) 7.69 % 8.90 % Estimated impact on fair value of a 10% increase (2,997 ) (3,026 ) Estimated impact on fair value of a 20% increase (5,780 ) (5,855 ) Discount rate 10.01 % 9.75 % Estimated impact on fair value of a 100 bp increase (3,829 ) (3,052 ) Estimated impact on fair value of a 200 bp increase (7,379 ) (5,867 ) Weighted-average coupon interest rate 3.98 % 3.94 % Weighted-average servicing fee (basis points) 28 28 Weighted-average remaining maturity (in months) 322 335 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 2017 Current $ — $ — Deferred 5,482 5,425 Total $ 5,482 $ 5,425 |
Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates | Federal income tax expense for the three months ended March 31, 2018 and 2017 differs from the statutory federal rates of 21% and 35%, respectively, due to the following: For the three months ended March 31, 2018 2017 Federal taxes calculated at statutory rate $ 5,300 21.0 % $ 5,305 35.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,143 4.5 % 610 4.0 % Benefit of equity based compensation (736 ) -3.0 % (195 ) -1.3 % Municipal interest income (201 ) -0.8 % (366 ) -2.4 % Bank owned life insurance (12 ) 0.0 % (21 ) -0.2 % Other (12 ) 0.0 % 92 0.6 % Income tax expense, as reported $ 5,482 21.7 % $ 5,425 35.7 % |
Schedule of Net Deferred Tax liability | The components of the net deferred tax liability at March 31, 2018 and December 31, 2017, are as follows: March 31, December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 6,359 $ 6,264 Amortization of core deposit intangible 832 759 Deferred compensation 3,711 6,158 Unrealized loss on available-for-sale debt securities 3,830 988 Other 5,501 3,599 Subtotal 20,233 17,768 Deferred tax liabilities: FHLB stock dividends (550 ) (550 ) Depreciation (4,344 ) (4,115 ) Cash flow hedges (866 ) — Mortgage servicing rights (24,274 ) (19,830 ) Other (5,564 ) (5,131 ) Subtotal (35,598 ) (29,626 ) Net deferred tax liability $ (15,365 ) $ (11,858 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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. March 31, December 31, 2018 2017 Commitments to extend credit, excluding interest rate lock commitments $ 959,271 $ 977,276 Letters of credit 22,214 22,882 Balance at end of period $ 981,485 $ 1,000,158 |
Summary of Allowance for Loan Repurchases or Indemnifications | The following table summarizes the activity in the repurchase reserve: For the three months ended March 31, 2018 2017 Balance at beginning of period $ 3,386 $ 2,659 Provision for loan repurchases or indemnifications 186 183 Recoveries on previous losses (58 ) — Balance at end of period $ 3,514 $ 2,842 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following tables provide details on the Company’s derivative financial instruments as of the dates presented: March 31, 2018 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 175,726 $ 2,360 $ 2,360 Forward commitments 919,571 — 1,295 Interest rate-lock commitments 692,977 10,179 — Futures contracts 243,000 1,180 — Option contracts 22,000 148 — Total $ 2,053,274 $ 13,867 $ 3,655 December 31, 2017 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 146,754 $ 1,146 $ 1,146 Forward commitments 870,574 — 553 Interest rate-lock commitments 504,156 6,768 — Futures contracts 283,000 315 — Option contracts 6,000 29 — Total $ 1,810,484 $ 8,258 $ 1,699 March 31, 2018 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 1,037 $ — Total $ 30,000 $ 1,037 $ — December 31, 2017 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 130,000 $ 1,432 $ — Total $ 130,000 $ 1,432 $ — |
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: Three Months Ended March 31, 2018 2017 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 3,411 $ 2,942 Forward commitments 5,318 (3,320 ) Futures contracts (2,447 ) — Options contracts 43 — Total $ 6,325 $ (378 ) Three Months Ended March 31, 2018 2017 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on long-term debt $ (32) — |
Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges | The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2018 2017 Designated as hedging: Amount of gain recognized in other comprehensive income, net of tax $ 1,273 — |
Fair Value of Financial Instr34
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values and Carrying Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Due to the adoption of ASU 2016-01 as of January 1, 2018, the fair value as presented below is measured using the exit price notion in the periods after adoption and may not be comparable with prior periods presented as a result of the change in methodology. Fair Value March 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 73,700 $ 73,700 $ — $ — $ 73,700 Investment securities 597,347 — 597,347 — 597,347 Federal Home Loan Bank Stock 11,810 N/A N/A N/A N/A Loans, net 3,220,257 — — 3,213,659 3,213,659 Loans held for sale 414,518 — 414,518 — 414,518 Interest receivable 13,920 — 13,920 — 13,920 Mortgage servicing rights 93,160 — — 93,160 93,160 Derivatives 14,904 — 14,904 — 14,904 Financial liabilities: Deposits: Without stated maturities $ 3,059,142 $ 3,059,142 $ — $ — $ 3,059,142 With stated maturities 707,009 — 706,585 — 706,585 Securities sold under agreement to repurchase 14,724 14,724 — — 14,724 Short term borrowings 138,707 138,707 — — 138,707 Interest payable 1,857 526 1,331 — 1,857 Long-term debt 139,586 — 138,456 — 138,456 Derivatives 3,655 — 3,655 — 3,655 Fair Value December 31, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 119,751 $ 119,751 $ — $ — $ 119,751 Investment securities 543,992 — 540,388 3,604 543,992 Federal Home Loan Bank Stock 11,412 N/A N/A N/A N/A Loans, net 3,142,870 — 3,064,373 77,027 3,141,400 Loans held for sale 526,185 — 526,185 — 526,185 Interest receivable 13,069 — 13,069 — 13,069 Mortgage servicing rights, net 76,107 — — 76,107 76,107 Derivatives 9,690 — 9,690 — 9,690 Financial liabilities: Deposits: Without stated maturities $ 2,976,066 $ 2,976,066 $ — $ — $ 2,976,066 With stated maturities 688,329 — 682,403 — 682,403 Securities sold under agreement to repurchase 14,293 14,293 — — 14,293 Short term borrowings 190,000 190,000 — — 190,000 Interest payable 1,504 575 929 — 1,504 Long-term debt 143,302 — 149,135 — 149,135 Derivatives 1,699 — 1,699 — 1,699 |
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 March 31, 2018 are presented in the following tables: At March 31, 2018 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: Investment securities: U.S. government agency securities $ — $ 982 $ — $ 982 Mortgage-backed securities — 472,930 — 472,930 Municipals, tax-exempt — 113,158 — 113,158 Treasury securities — 7,178 — 7,178 Equity securities — 3,099 — 3,099 Total $ — $ 597,347 $ — $ 597,347 Loans held for sale — 414,518 — 414,518 Mortgage servicing rights — — 93,160 93,160 Derivatives — 14,904 — 14,904 Financial Liabilities: Derivatives $ — $ 3,655 $ — $ 3,655 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2017 are presented in the following tables: At December 31, 2017 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 $ — $ 986 $ — $ 986 Mortgage-backed securities — 418,781 — 418,781 Municipals, tax-exempt — 109,251 — 109,251 Treasury securities — 7,252 — 7,252 Equity securities — 4,118 3,604 7,722 Total $ — $ 540,388 $ 3,604 $ 543,992 Loans held for sale — 526,185 — 526,185 Mortgage servicing rights — — 76,107 76,107 Derivatives — 9,690 — 9,690 Financial Liabilities: Derivatives $ — $ 1,699 $ — $ 1,699 |
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 March 31, 2018 are presented in the following tables: At March 31, 2018 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 800 $ 800 Impaired loans: Commercial and industrial — — — — Construction Residential real estate: 1-4 family mortgage — — 144 144 Commercial real estate: — — — — Owner occupied Non-owner occupied — — — — Consumer and other — — — — Total $ — $ — $ 144 $ 144 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2017 are presented in the following tables: At December 31, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 13,174 $ 13,174 Impaired Loans: Commercial and industrial — — 1,971 1,971 Construction — — 4,211 4,211 Residential real estate: 1-4 family mortgage — — 21,902 21,902 Commercial real estate: Owner occupied — — 10,030 10,030 Non-owner occupied — — 13,593 13,593 Consumer and other — — 25,320 25,320 Total $ — $ — $ 77,027 $ 77,027 |
Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs | The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three months ended March 31, 2018 and 2017. Investment securities Three Months Ended March 31, 2018 2017 Balance at beginning of period $ 3,604 $ 4,549 Reclassification of equity securities without a readily determinable fair value to other assets (1) (3,604 ) — Balance at end of period $ — $ 4,549 (1) See Note 1, “Basis of Presentation” in the Notes to the consolidated financial statements for additional details regarding the adoption of ASU 2016-01, Recognition and Measurement of Financial Assets and Liabilities. |
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 March 31, 2018 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 $ 144 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 800 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2017 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 $ 77,027 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 13,174 Appraised value of property less costs to sell Discount for costs to sell 0%-15% |
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 March 31, 2018 and December 31, 2017: March 31, 2018 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 414,017 $ 401,087 $ 12,930 Past due loans of 90 days or more — — — Nonaccrual loans 501 501 — December 31, 2017 Mortgage loans held for sale measured at fair value $ 482,089 $ 467,039 $ 15,050 Past due loans of 90 days or more 320 320 — Nonaccrual loans 741 741 — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provides segment financial information for the three months ended March 31, 2018 and 2017 follows: Three Months Ended March 31, 2018 Banking Mortgage Consolidated Net interest income $ 48,771 $ (342 ) $ 48,429 Provision for loan loss 317 — 317 Mortgage banking income 6,108 22,076 28,184 Change in fair value of mortgage servicing rights (1) — (1,713 ) (1,713 ) Other noninterest income 6,804 — 6,804 Depreciation 978 128 1,106 Amortization of intangibles 853 — 853 Other noninterest mortgage banking expense 5,097 18,782 23,879 Other noninterest expense (2) 30,313 — 30,313 Income before income taxes 24,125 1,111 25,236 Income tax expense 5,482 Net income 19,754 Total assets $ 4,220,543 $ 504,873 $ 4,725,416 Goodwill 137,090 100 137,190 (1) Included in mortgage banking income, net of hedging gains/losses. (2) Included $1,193 in merger and conversion expenses related to the merger with the Clayton Banks. Three Months Ended March 31, 2017 Banking Mortgage Consolidated Net interest income $ 29,856 $ 395 $ 30,251 Provision for loan loss (257 ) — (257 ) Mortgage banking income 5,666 19,915 25,581 Net, change in fair value of mortgage servicing rights (1) — (501 ) (501 ) Other noninterest income 6,007 — 6,007 Depreciation and amortization 864 138 1,002 Amortization of intangibles 392 — 392 Other noninterest mortgage banking expense 4,836 17,532 22,368 Other noninterest expense (2) 22,655 — 22,655 Income before income taxes 13,039 2,139 15,178 Income tax expense 5,425 Net income 9,753 Total assets $ 2,705,118 $ 461,341 $ 3,166,459 Goodwill 46,767 100 46,867 |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 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 March 31, 2018 Total Capital (to risk-weighted assets) FB Financial Corporation $ 506,921 12.3 % $ 328,636 8.0 % $ 405,865 9.9 % N/A N/A FirstBank 476,454 11.6 % 328,589 8.0 % 405,807 9.9 % $ 410,736 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 482,515 11.8 % $ 246,391 6.0 % $ 323,593 7.9 % N/A N/A FirstBank 452,048 11.0 % 246,348 6.0 % 323,537 7.9 % $ 246,348 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 482,515 10.7 % $ 180,043 4.0 % N/A N/A N/A N/A FirstBank 452,048 10.0 % 180,819 4.0 % N/A N/A $ 226,024 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 452,515 11.0 % $ 184,784 4.5 % $ 261,982 6.4 % N/A N/A FirstBank 452,048 11.0 % 184,761 4.5 % 261,950 6.4 % $ 266,877 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, 2017 Total Capital (to risk-weighted assets) FB Financial Corporation $ 496,422 12.0 % $ 330,672 8.0 % $ 382,340 9.3 % N/A N/A FirstBank 466,102 11.3 % 329,984 8.0 % 381,544 9.3 % $ 412,480 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 472,381 11.4 % $ 247,969 6.0 % $ 299,629 7.3 % N/A N/A FirstBank 442,061 10.7 % 247,422 6.0 % 298,968 7.3 % $ 247,422 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 472,381 10.5 % $ 180,643 4.0 % N/A N/A N/A N/A FirstBank 442,061 9.8 % 180,987 4.0 % N/A N/A $ 226,234 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 442,381 10.7 % $ 185,874 4.5 % $ 237,506 5.8 % N/A N/A FirstBank 442,061 10.7 % 185,567 4.5 % 237,113 5.8 % $ 268,041 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Vested and Unvested Restricted Stock Units Outstanding | The following table summarizes information about vested and unvested restricted stock units, excluding cash-settled EBI units discussed above, outstanding at March 31, 2018 and 2017: March 31, 2018 2017 Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at beginning of period (unvested) 1,214,325 $ 19.97 1,200,848 19.00 Grants 105,429 39.90 73,801 33.48 Released and distributed (vested) (170,160 ) 21.24 (70,687 ) 19.00 Forfeited/expired (5,556 ) 19.00 (544 ) 19.00 Balance at end of period (unvested) 1,144,038 $ 21.11 1,203,418 19.15 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates | An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2018 $ 21,012 New loans and advances 1,611 Repayments (1,537 ) Loans outstanding at March 31, 2018 $ 21,086 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) | Apr. 23, 2018USD ($)$ / shares | Jan. 01, 2018USD ($) | Mar. 31, 2018USD ($)Branch | Dec. 31, 2017USD ($) |
ASC 860-50-35, Transfers and Servicing | ||||
Class Of Stock [Line Items] | ||||
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs | 100.00% | |||
ASU 2014-09 | ||||
Class Of Stock [Line Items] | ||||
Adjustment to retained earnings | $ 0 | |||
ASU 2016-01 | ||||
Class Of Stock [Line Items] | ||||
Adjustment to retained earnings | $ 109,000 | |||
GNMA | ||||
Class Of Stock [Line Items] | ||||
Residential mortgage loans transferred by bank | 0 | $ 43,035,000 | ||
Delinquent GNMA loans | $ 45,933,000 | |||
Subsequent Event | ||||
Class Of Stock [Line Items] | ||||
Quarterly dividends declared, per share | $ / shares | $ 0.06 | |||
Dividends , Date of record | Apr. 30, 2018 | |||
Dividends, Date to be paid | May 15, 2018 | |||
Dividends, Date declared | Apr. 23, 2018 | |||
Dividends declared, Total | $ 1,841,000 | |||
FirstBank | ||||
Class Of Stock [Line Items] | ||||
Number of bank branches | Branch | 56 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Basic earnings per share calculation: | ||
Net income | $ 19,754 | $ 9,753 |
Weighted-average basic shares outstanding | 30,613,284 | 24,138,437 |
Basic earnings per share | $ 0.65 | $ 0.40 |
Diluted earnings per share: | ||
Net income | $ 19,754 | $ 9,753 |
Weighted-average basic shares outstanding | 30,613,284 | 24,138,437 |
Average diluted common shares outstanding | 808,546 | 472,554 |
Weighted-average diluted shares outstanding | 31,421,830 | 24,610,991 |
Diluted earnings per share | $ 0.63 | $ 0.40 |
Mergers and acquisitions - Addi
Mergers and acquisitions - Additional Information (Details) | Jul. 31, 2017USD ($) | Feb. 08, 2017USD ($)shares | Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Jul. 30, 2017BankingOffice | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 137,190,000 | $ 46,867,000 | $ 137,190,000 | ||||
Merger and conversion | 1,193,000 | 487,000 | |||||
Business combination, deferred taxes | $ 20,233,000 | $ 17,768,000 | |||||
Clayton Banks | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 | ||||||
Acquisition purchase price | $ 236,484,000 | $ 236,484,000 | |||||
Business acquisition, shares issued | shares | 1,521,200 | ||||||
Cash purchase price | 184,200,000 | [1] | $ 184,200,000 | ||||
Number of banking offices | BankingOffice | 18 | ||||||
Goodwill | 90,323,000 | ||||||
Merger and conversion | $ 1,193,000 | $ 487,000 | |||||
Business combination, deferred taxes | $ 0 | ||||||
Number of years of deductibility for income tax of the goodwill and core deposit intangible | 15 years | ||||||
[1] | Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017 |
Mergers and acquisitions - Sche
Mergers and acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Clayton Banks $ in Thousands | Jul. 31, 2017USD ($) |
Assets | |
Cash and cash equivalents | $ 49,059 |
Investment securities | 59,493 |
FHLB stock | 3,409 |
Loans | 1,059,728 |
Premises and equipment | 18,866 |
Other real estate owned | 6,888 |
Intangibles, net | 12,334 |
Other assets | 5,978 |
Total assets | 1,215,755 |
Liabilities | |
Interest-bearing deposits | 670,054 |
Non-interest bearing deposits | 309,464 |
Borrowings | 84,831 |
Accrued expenses and other liabilities | 5,245 |
Total liabilities | 1,069,594 |
Net assets acquired | $ 146,161 |
Mergers and acquisitions - Sc43
Mergers and acquisitions - Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2017 | Feb. 08, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | |
Preliminary allocation of consideration paid: | ||||||
Goodwill | $ 137,190 | $ 137,190 | $ 46,867 | |||
Total consideration paid | $ 236,484 | |||||
Clayton Banks | ||||||
Equity consideration | ||||||
Common stock issued | 1,521,200 | |||||
Price per share as of July 31, 2017 | $ 34.37 | |||||
Total equity consideration | $ 52,284 | |||||
Cash consideration | 184,200 | [1] | $ 184,200 | |||
Total consideration paid | 236,484 | $ 236,484 | ||||
Preliminary allocation of consideration paid: | ||||||
Fair value of net assets acquired including identifiable intangible assets | 146,161 | |||||
Goodwill | $ 90,323 | |||||
Clayton Banks | Common Stock | ||||||
Equity consideration | ||||||
Common stock issued | 1,521,200 | |||||
[1] | Amount was deposited into an interest-bearing account with the Bank in the name of the Seller as of July 31, 2017 |
Mergers and acquisitions - Busi
Mergers and acquisitions - Business Acquisition, Pro Forma Information (Details) - Clayton Banks $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Business Acquisition [Line Items] | |
Net interest income | $ 46,687 |
Total revenues | 79,281 |
Net income | $ 16,728 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 548,898 | |
Gross unrealized gains | 3,067 | |
Gross unrealized losses | (7,973) | |
Available-for-sale securities, at fair value | 543,992 | |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 608,754 | 541,028 |
Gross unrealized gains | 1,819 | 3,066 |
Gross unrealized losses | (16,325) | (7,824) |
Available-for-sale securities, at fair value | 594,248 | 536,270 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 999 | 999 |
Gross unrealized losses | (17) | (13) |
Available-for-sale securities, at fair value | 982 | 986 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 486,907 | 425,557 |
Gross unrealized gains | 237 | 374 |
Gross unrealized losses | (14,214) | (7,150) |
Available-for-sale securities, at fair value | 472,930 | 418,781 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 113,492 | 107,127 |
Gross unrealized gains | 1,582 | 2,692 |
Gross unrealized losses | (1,916) | (568) |
Available-for-sale securities, at fair value | 113,158 | 109,251 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 7,356 | 7,345 |
Gross unrealized losses | (178) | (93) |
Available-for-sale securities, at fair value | $ 7,178 | 7,252 |
Equity and Other Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 7,870 | |
Gross unrealized gains | 1 | |
Gross unrealized losses | (149) | |
Available-for-sale securities, at fair value | $ 7,722 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Jan. 01, 2018USD ($) | Mar. 31, 2018USD ($)security | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)security |
Schedule Of Available For Sale Securities [Line Items] | ||||
Equity securities, at fair value | $ 3,099,000 | $ 7,722,000 | ||
Loss on changes in fair value of securities | (38,000) | |||
Securities pledged, carrying amount | $ 427,995,000 | $ 337,604,000 | ||
Recognized gains on early call of available-for-sale securities | $ 1,000 | |||
Number of securities in securities portfolio | security | 307 | 294 | ||
Number of securities in securities portfolio, unrealized loss position | security | 171 | 124 | ||
Other-than-temporary impairment recorded by the company | $ 0 | $ 0 | ||
Trade date securities payable | $ 3,912,000 | |||
ASU 2016-01 | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Other assets reclassified from other securities | $ 3,604,000 | |||
Other securities reclassified to other assets | $ 3,604,000 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | $ 5,715 | $ 905 |
Amortized cost, Due in one to five years | 24,165 | 28,332 |
Amortized cost, Due in five to ten years | 19,817 | 19,218 |
Amortized cost, Due in over ten years | 72,150 | 67,016 |
Amortized cost, Total | 121,847 | 115,471 |
Total debt securities, Amortized cost | 608,754 | 541,028 |
Fair value, Due in one year or less | 5,841 | 925 |
Fair value, Due in one to five years | 24,396 | 28,878 |
Fair value, Due in five to ten years | 19,960 | 19,588 |
Fair value, Due in over ten years | 71,121 | 68,098 |
Fair value, Total | 121,318 | 117,489 |
Available-for-sale debt securities, at fair value | 594,248 | 536,270 |
Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total debt securities, Amortized cost | 486,907 | 425,557 |
Available-for-sale debt securities, at fair value | $ 472,930 | $ 418,781 |
Investment Securities - Summa48
Investment Securities - Summary of Sales and Impairment of Available-for-Sale Securities (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Available For Sale Securities Gross Realized Gain Loss [Abstract] | |
Proceeds from sales | $ 221 |
Gross realized losses | $ 9 |
Investment Securities - Sched49
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 122,217 | |
Unrealized Loss, Less than 12 months | 1,174 | |
Fair Value, 12 months or more | 314,406 | |
Unrealized Loss, 12 months or more | 6,799 | |
Fair Value, Total | 436,623 | |
Unrealized Losses, Total | 7,973 | |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 201,052 | 122,217 |
Unrealized Loss, Less than 12 months | 4,176 | 1,174 |
Fair Value, 12 months or more | 294,453 | 311,356 |
Unrealized Loss, 12 months or more | 12,149 | 6,650 |
Fair Value, Total | 495,505 | 433,573 |
Unrealized Losses, Total | 16,325 | 7,824 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, 12 months or more | 982 | 986 |
Unrealized Loss, 12 months or more | 17 | 13 |
Fair Value, Total | 982 | 986 |
Unrealized Losses, Total | 17 | 13 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 163,771 | 107,611 |
Unrealized Loss, Less than 12 months | 3,236 | 980 |
Fair Value, 12 months or more | 274,285 | 290,258 |
Unrealized Loss, 12 months or more | 10,978 | 6,170 |
Fair Value, Total | 438,056 | 397,869 |
Unrealized Losses, Total | 14,214 | 7,150 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 30,104 | 7,354 |
Unrealized Loss, Less than 12 months | 762 | 101 |
Fair Value, 12 months or more | 19,186 | 20,112 |
Unrealized Loss, 12 months or more | 1,154 | 467 |
Fair Value, Total | 49,290 | 27,466 |
Unrealized Losses, Total | 1,916 | 568 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 7,177 | 7,252 |
Unrealized Loss, Less than 12 months | 178 | 93 |
Fair Value, Total | 7,177 | 7,252 |
Unrealized Losses, Total | $ 178 | 93 |
Equity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, 12 months or more | 3,050 | |
Unrealized Loss, 12 months or more | 149 | |
Fair Value, Total | 3,050 | |
Unrealized Losses, Total | $ 149 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses - Loans Outstanding by Major Lending Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | $ 3,244,663 | $ 3,166,911 | ||
Less: Allowance for loan losses | (24,406) | (24,041) | $ (22,898) | $ (21,747) |
Net loans | 3,220,257 | 3,142,870 | ||
Commercial and Industrial | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 765,115 | 715,075 | ||
Less: Allowance for loan losses | (4,578) | (4,461) | (5,402) | (5,309) |
Construction | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 466,495 | 448,326 | ||
Less: Allowance for loan losses | (7,866) | (7,135) | (5,598) | (4,940) |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 491,725 | 480,989 | ||
Less: Allowance for loan losses | (3,122) | (3,197) | (2,896) | (3,197) |
Residential Real Estate | Residential Line of Credit | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 197,740 | 194,986 | ||
Less: Allowance for loan losses | (1,165) | (944) | (1,514) | (1,613) |
Residential Real Estate | Multi-Family Mortgage | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 63,295 | 62,374 | ||
Less: Allowance for loan losses | (449) | (434) | (508) | (504) |
Commercial Real Estate | Owner Occupied | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 499,331 | 495,872 | ||
Less: Allowance for loan losses | (3,014) | (3,558) | (3,387) | (3,302) |
Commercial Real Estate | Non-Owner Occupied | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 562,128 | 551,588 | ||
Less: Allowance for loan losses | (2,753) | (2,817) | (2,660) | (2,019) |
Consumer and Other | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Gross loans | 198,834 | 217,701 | ||
Less: Allowance for loan losses | $ (1,459) | $ (1,495) | $ (933) | $ (863) |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Carrying value of PCI loans | $ 85,752,000 | $ 88,835,000 | |
Accretion of interest income | 1,687,000 | $ 1,160,000 | |
Non-accrual loans | 3,233,000 | 3,205,000 | |
Recorded investment in troubled debt restructurings | 8,675,000 | 8,604,000 | |
Allocation to specific reserves | 159,000 | 172,000 | |
Commitments to lend additional amounts to customers | 3,000 | 2,000 | |
Payment default for loans modified as troubled debt restructurings | 0 | 0 | |
Purchased Credit Impaired | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Carrying value of PCI loans | 85,752,000 | 88,835,000 | |
Accretion of interest income | 2,201,000 | 1,023,000 | |
Total purchase accounting contribution through accretion for purchased loans | 1,687,000 | $ 1,160,000 | |
Non-accrual loans | 0 | 0 | |
Federal Reserve | Borrower in Custody Program | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Gross loans | 1,215,509,000 | 724,312,000 | |
Federal Home Loan Bank of Cincinnati | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Gross loans | $ 1,245,847,000 | $ 968,567,000 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses - Changes in Accretable Yield on Purchase Credit Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Purchased Credit Impaired Accretable yield, Accretion | $ 1,687 | $ 1,160 |
Purchased Credit Impaired | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Purchased Credit Impaired Accretable yield, Beginning balance | (17,682) | (2,444) |
Purchased Credit Impaired Accretable yield, Principal reductions/ pay-offs | (1,294) | (698) |
Purchased Credit Impaired Accretable yield, Recoveries | (23) | |
Purchased Credit Impaired Accretable yield, Accretion | 2,201 | 1,023 |
Purchased Credit Impaired Accretable yield, Other changes | (180) | |
Purchased Credit Impaired Accretable yield, Ending balance | $ (16,955) | $ (2,142) |
Loans and Allowance for Loan 53
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | $ 24,041 | $ 21,747 |
Provision for loan losses | 317 | (257) |
Recoveries of loans previously charged-off | 709 | 1,850 |
Loans charged off | (661) | (442) |
Ending balance | 24,406 | 22,898 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 4,461 | 5,309 |
Provision for loan losses | 202 | 179 |
Recoveries of loans previously charged-off | 135 | 83 |
Loans charged off | (220) | (169) |
Ending balance | 4,578 | 5,402 |
Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 7,135 | 4,940 |
Provision for loan losses | 479 | 635 |
Recoveries of loans previously charged-off | 252 | 29 |
Loans charged off | (6) | |
Ending balance | 7,866 | 5,598 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 3,197 | 3,197 |
Provision for loan losses | (30) | (239) |
Recoveries of loans previously charged-off | 15 | 26 |
Loans charged off | (60) | (88) |
Ending balance | 3,122 | 2,896 |
Residential Real Estate | Residential Line of Credit | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 944 | 1,613 |
Provision for loan losses | 214 | (155) |
Recoveries of loans previously charged-off | 27 | 56 |
Loans charged off | (20) | |
Ending balance | 1,165 | 1,514 |
Residential Real Estate | Multi-Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 434 | 504 |
Provision for loan losses | 15 | 4 |
Ending balance | 449 | 508 |
Commercial Real Estate | Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 3,558 | 3,302 |
Provision for loan losses | (567) | 81 |
Recoveries of loans previously charged-off | 23 | 4 |
Ending balance | 3,014 | 3,387 |
Commercial Real Estate | Non-Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 2,817 | 2,019 |
Provision for loan losses | (115) | (998) |
Recoveries of loans previously charged-off | 51 | 1,639 |
Ending balance | 2,753 | 2,660 |
Consumer and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Beginning balance | 1,495 | 863 |
Provision for loan losses | 119 | 236 |
Recoveries of loans previously charged-off | 206 | 13 |
Loans charged off | (361) | (179) |
Ending balance | $ 1,459 | $ 933 |
Loans and Allowance for Loan 54
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 | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | $ 159 | $ 191 | ||
Collectively evaluated for impairment | 24,247 | 23,850 | ||
Ending balance | 24,406 | 24,041 | $ 22,898 | $ 21,747 |
Commercial and Industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 19 | 20 | ||
Collectively evaluated for impairment | 4,559 | 4,441 | ||
Ending balance | 4,578 | 4,461 | 5,402 | 5,309 |
Construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 7,866 | 7,135 | ||
Ending balance | 7,866 | 7,135 | 5,598 | 4,940 |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 16 | 18 | ||
Collectively evaluated for impairment | 3,106 | 3,179 | ||
Ending balance | 3,122 | 3,197 | 2,896 | 3,197 |
Residential Real Estate | Residential Line of Credit | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 1,165 | 944 | ||
Ending balance | 1,165 | 944 | 1,514 | 1,613 |
Residential Real Estate | Multi-Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 449 | 434 | ||
Ending balance | 449 | 434 | 508 | 504 |
Commercial Real Estate | Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 95 | 120 | ||
Collectively evaluated for impairment | 2,919 | 3,438 | ||
Ending balance | 3,014 | 3,558 | 3,387 | 3,302 |
Commercial Real Estate | Non-Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Individually evaluated for impairment | 29 | 33 | ||
Collectively evaluated for impairment | 2,724 | 2,784 | ||
Ending balance | 2,753 | 2,817 | 2,660 | 2,019 |
Consumer and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Collectively evaluated for impairment | 1,459 | 1,495 | ||
Ending balance | $ 1,459 | $ 1,495 | $ 933 | $ 863 |
Loans and Allowance for Loan 55
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 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | $ 9,018 | $ 9,373 |
Collectively evaluated for impairment | 3,149,893 | 3,068,703 |
Acquired with deteriorated credit quality | 85,752 | 88,835 |
Gross loans | 3,244,663 | 3,166,911 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,385 | 1,579 |
Collectively evaluated for impairment | 761,779 | 711,352 |
Acquired with deteriorated credit quality | 1,951 | 2,144 |
Gross loans | 765,115 | 715,075 |
Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,285 | 1,289 |
Collectively evaluated for impairment | 457,785 | 439,309 |
Acquired with deteriorated credit quality | 7,425 | 7,728 |
Gross loans | 466,495 | 448,326 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,492 | 1,262 |
Collectively evaluated for impairment | 467,329 | 456,229 |
Acquired with deteriorated credit quality | 22,904 | 23,498 |
Gross loans | 491,725 | 480,989 |
Residential Real Estate | Residential Line of Credit | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Collectively evaluated for impairment | 197,740 | 194,986 |
Gross loans | 197,740 | 194,986 |
Residential Real Estate | Multi-Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 964 | 978 |
Collectively evaluated for impairment | 62,313 | 61,376 |
Acquired with deteriorated credit quality | 18 | 20 |
Gross loans | 63,295 | 62,374 |
Commercial Real Estate | Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 2,150 | 2,520 |
Collectively evaluated for impairment | 485,411 | 481,390 |
Acquired with deteriorated credit quality | 11,770 | 11,962 |
Gross loans | 499,331 | 495,872 |
Commercial Real Estate | Non-Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,713 | 1,720 |
Collectively evaluated for impairment | 542,351 | 531,704 |
Acquired with deteriorated credit quality | 18,064 | 18,164 |
Gross loans | 562,128 | 551,588 |
Consumer and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 29 | 25 |
Collectively evaluated for impairment | 175,185 | 192,357 |
Acquired with deteriorated credit quality | 23,620 | 25,319 |
Gross loans | $ 198,834 | $ 217,701 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | $ 3,158,911 | $ 3,078,076 |
Purchased credit impaired loans | 85,752 | 88,835 |
Total loans | 3,244,663 | 3,166,911 |
Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 3,013,068 | 2,940,174 |
Total loans | 3,013,068 | 2,940,174 |
Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 123,747 | 114,401 |
Purchased credit impaired loans | 55,013 | 56,848 |
Total loans | 178,760 | 171,249 |
Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 22,096 | 23,501 |
Purchased credit impaired loans | 30,739 | 31,987 |
Total loans | 52,835 | 55,488 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 763,164 | 712,931 |
Purchased credit impaired loans | 1,951 | 2,144 |
Total loans | 765,115 | 715,075 |
Commercial and Industrial | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 704,689 | 657,595 |
Commercial and Industrial | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 54,124 | 50,946 |
Purchased credit impaired loans | 1,351 | 1,499 |
Commercial and Industrial | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 4,351 | 4,390 |
Purchased credit impaired loans | 600 | 645 |
Construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 459,070 | 440,598 |
Purchased credit impaired loans | 7,425 | 7,728 |
Total loans | 466,495 | 448,326 |
Construction | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 441,718 | 431,242 |
Construction | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 15,468 | 7,388 |
Purchased credit impaired loans | 3,422 | 3,324 |
Construction | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,884 | 1,968 |
Purchased credit impaired loans | 4,003 | 4,404 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 468,821 | 457,491 |
Purchased credit impaired loans | 22,904 | 23,498 |
Total loans | 491,725 | 480,989 |
Residential Real Estate | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 197,740 | 194,986 |
Total loans | 197,740 | 194,986 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 63,277 | 62,354 |
Purchased credit impaired loans | 18 | 20 |
Total loans | 63,295 | 62,374 |
Residential Real Estate | Pass | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 452,858 | 440,202 |
Residential Real Estate | Pass | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 194,887 | 192,427 |
Residential Real Estate | Pass | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 62,175 | 61,234 |
Residential Real Estate | Watch | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 9,027 | 9,522 |
Purchased credit impaired loans | 19,454 | 20,284 |
Residential Real Estate | Watch | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,677 | 1,184 |
Residential Real Estate | Watch | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 138 | 142 |
Residential Real Estate | Substandard | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 6,936 | 7,767 |
Purchased credit impaired loans | 3,450 | 3,214 |
Residential Real Estate | Substandard | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,176 | 1,375 |
Residential Real Estate | Substandard | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 964 | 978 |
Purchased credit impaired loans | 18 | 20 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 487,561 | 483,910 |
Purchased credit impaired loans | 11,770 | 11,962 |
Total loans | 499,331 | 495,872 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 544,064 | 533,424 |
Purchased credit impaired loans | 18,064 | 18,164 |
Total loans | 562,128 | 551,588 |
Commercial Real Estate | Pass | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 457,347 | 451,140 |
Commercial Real Estate | Pass | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 527,134 | 517,253 |
Commercial Real Estate | Watch | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 25,962 | 28,308 |
Purchased credit impaired loans | 4,565 | 4,631 |
Commercial Real Estate | Watch | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 14,972 | 14,199 |
Purchased credit impaired loans | 7,517 | 7,359 |
Commercial Real Estate | Substandard | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 4,252 | 4,462 |
Purchased credit impaired loans | 7,205 | 7,331 |
Commercial Real Estate | Substandard | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,958 | 1,972 |
Purchased credit impaired loans | 10,547 | 10,805 |
Consumer and Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 175,214 | 192,382 |
Purchased credit impaired loans | 23,620 | 25,319 |
Total loans | 198,834 | 217,701 |
Consumer and Other | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 172,260 | 189,081 |
Consumer and Other | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 2,379 | 2,712 |
Purchased credit impaired loans | 18,704 | 19,751 |
Consumer and Other | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 575 | 589 |
Purchased credit impaired loans | $ 4,916 | $ 5,568 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 3,244,663 | $ 3,166,911 |
Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 85,752 | 88,835 |
Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 6,954 | 8,101 |
30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,549 | 15,063 |
90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,689 | 1,996 |
Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,140,719 | 3,052,916 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 765,115 | 715,075 |
Commercial and Industrial | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,951 | 2,144 |
Commercial and Industrial | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 910 | 533 |
Commercial and Industrial | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,385 | 5,859 |
Commercial and Industrial | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 619 | 90 |
Commercial and Industrial | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 760,250 | 706,449 |
Construction | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 466,495 | 448,326 |
Construction | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 7,425 | 7,728 |
Construction | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 460 | 300 |
Construction | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 250 | 1,412 |
Construction | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 329 | 241 |
Construction | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 458,031 | 438,645 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 491,725 | 480,989 |
Residential Real Estate | 1-to-4 Family Mortgage | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 22,904 | 23,498 |
Residential Real Estate | 1-to-4 Family Mortgage | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,009 | 2,548 |
Residential Real Estate | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 197,740 | 194,986 |
Residential Real Estate | Residential Line of Credit | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 370 | 699 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 63,295 | 62,374 |
Residential Real Estate | Multi-Family Mortgage | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 18 | 20 |
Residential Real Estate | 30-89 Days Past Due | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,666 | 4,678 |
Residential Real Estate | 30-89 Days Past Due | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,013 | 527 |
Residential Real Estate | 90 Days or More and Accruing Interest | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,067 | 956 |
Residential Real Estate | 90 Days or More and Accruing Interest | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 356 | 134 |
Residential Real Estate | Financing Receivables Current | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 462,079 | 449,309 |
Residential Real Estate | Financing Receivables Current | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 196,001 | 193,626 |
Residential Real Estate | Financing Receivables Current | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 63,277 | 62,354 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 499,331 | 495,872 |
Commercial Real Estate | Owner Occupied | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 11,770 | 11,962 |
Commercial Real Estate | Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,903 | 2,582 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 562,128 | 551,588 |
Commercial Real Estate | Non-Owner Occupied | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 18,064 | 18,164 |
Commercial Real Estate | Non-Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,219 | 1,371 |
Commercial Real Estate | 30-89 Days Past Due | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 202 | 521 |
Commercial Real Estate | 30-89 Days Past Due | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 393 | 121 |
Commercial Real Estate | 90 Days or More and Accruing Interest | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 358 | |
Commercial Real Estate | Financing Receivables Current | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 485,456 | 480,449 |
Commercial Real Estate | Financing Receivables Current | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 542,452 | 531,932 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 198,834 | 217,701 |
Consumer and Other | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 23,620 | 25,319 |
Consumer and Other | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 83 | 68 |
Consumer and Other | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,640 | 1,945 |
Consumer and Other | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 318 | 217 |
Consumer and Other | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 173,173 | $ 190,152 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Impaired Loans Recognized, Segregated by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | $ 970 | $ 1,235 | |
Impaired loans with related allowance, Unpaid principal | 1,339 | 1,821 | |
Impaired loans with related allowance, Related allowance | 159 | 191 | |
Impaired loan with no related allowance, Recorded investment | 8,048 | 8,138 | |
Impaired loan with no related allowance, Unpaid principal | 9,548 | 9,451 | |
Total impaired loans, Recorded investment | 9,018 | 9,373 | |
Total impaired loans, Unpaid principal | 10,887 | 11,272 | |
Impaired loan with no related allowance, Average recorded investment | 8,095 | $ 8,828 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 110 | 81 | |
Impaired loans with related allowance, Average recorded investment | 1,104 | 2,357 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 11 | 17 | |
Total impaired loans, Average recorded investment | 9,199 | 11,185 | |
Total impaired loans, Interest income recognized (cash basis) | 121 | 98 | |
Commercial and Industrial | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 52 | 53 | |
Impaired loans with related allowance, Unpaid principal | 52 | 53 | |
Impaired loans with related allowance, Related allowance | 19 | 20 | |
Impaired loan with no related allowance, Recorded investment | 1,333 | 1,526 | |
Impaired loan with no related allowance, Unpaid principal | 1,539 | 1,570 | |
Impaired loan with no related allowance, Average recorded investment | 1,430 | 584 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 16 | 9 | |
Impaired loans with related allowance, Average recorded investment | 53 | 791 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 1 | 5 | |
Residential Real Estate | 1-to-4 Family Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 191 | 194 | |
Impaired loans with related allowance, Unpaid principal | 492 | 495 | |
Impaired loans with related allowance, Related allowance | 16 | 18 | |
Impaired loan with no related allowance, Recorded investment | 1,301 | 1,068 | |
Impaired loan with no related allowance, Unpaid principal | 1,306 | 1,072 | |
Impaired loan with no related allowance, Average recorded investment | 1,185 | 2,243 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 13 | 17 | |
Impaired loans with related allowance, Average recorded investment | 193 | 101 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 2 | ||
Residential Real Estate | Multi-Family Mortgage | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Recorded investment | 964 | 978 | |
Impaired loan with no related allowance, Unpaid principal | 964 | 978 | |
Impaired loan with no related allowance, Average recorded investment | 971 | 1,021 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 12 | 11 | |
Residential Real Estate | Residential Line of Credit | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Average recorded investment | 156 | ||
Commercial Real Estate | Owner Occupied | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 585 | 844 | |
Impaired loans with related allowance, Unpaid principal | 646 | 1,123 | |
Impaired loans with related allowance, Related allowance | 95 | 120 | |
Impaired loan with no related allowance, Recorded investment | 1,565 | 1,676 | |
Impaired loan with no related allowance, Unpaid principal | 2,077 | 2,168 | |
Impaired loan with no related allowance, Average recorded investment | 1,621 | 1,977 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 32 | 38 | |
Impaired loans with related allowance, Average recorded investment | 715 | 629 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 6 | 12 | |
Commercial Real Estate | Non-Owner Occupied | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loans with related allowance, Recorded investment | 142 | 144 | |
Impaired loans with related allowance, Unpaid principal | 149 | 150 | |
Impaired loans with related allowance, Related allowance | 29 | 33 | |
Impaired loan with no related allowance, Recorded investment | 1,571 | 1,576 | |
Impaired loan with no related allowance, Unpaid principal | 2,320 | 2,325 | |
Impaired loan with no related allowance, Average recorded investment | 1,574 | 1,325 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 7 | ||
Impaired loans with related allowance, Average recorded investment | 143 | 835 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 2 | ||
Construction | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Recorded investment | 1,285 | 1,289 | |
Impaired loan with no related allowance, Unpaid principal | 1,313 | 1,313 | |
Impaired loan with no related allowance, Average recorded investment | 1,287 | 1,496 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 30 | 5 | |
Consumer and Other | |||
Financing Receivable Impaired [Line Items] | |||
Impaired loan with no related allowance, Recorded investment | 29 | 25 | |
Impaired loan with no related allowance, Unpaid principal | 29 | $ 25 | |
Impaired loan with no related allowance, Average recorded investment | $ 27 | 26 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 1 | ||
Impaired loans with related allowance, Average recorded investment | $ 1 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)loan | Mar. 31, 2017USD ($)loan | |
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 2 | 4 |
Pre-modification outstanding recorded investment | $ 254 | $ 1,093 |
Post-modification outstanding recorded investment | $ 254 | $ 1,093 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 1 | 1 |
Pre-modification outstanding recorded investment | $ 249 | $ 5 |
Post-modification outstanding recorded investment | $ 249 | $ 5 |
Consumer and Other | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 5 | |
Post-modification outstanding recorded investment | $ 5 | |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 377 | |
Post-modification outstanding recorded investment | $ 377 | |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Modifications [Line Items] | ||
Number of loans | loan | 2 | |
Pre-modification outstanding recorded investment | $ 711 | |
Post-modification outstanding recorded investment | $ 711 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Real Estate [Abstract] | ||
Balance at beginning of period | $ 16,442 | $ 7,403 |
Transfers from loans | 630 | 888 |
Properties sold | (1,432) | (2,228) |
(Loss) gain on sale of other real estate owned | (43) | 871 |
Transferred to loans | (120) | |
Write-downs and partial liquidations | (143) | (123) |
Balance at end of period | $ 15,334 | $ 6,811 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 3,902 | $ 3,631 |
Total foreclosure proceedings in process | $ 326 | $ 19 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Transfers And Servicing [Abstract] | ||
Carrying value prior to policy change | $ 76,107 | $ 32,070 |
Fair value impact of change in accounting policy | 1,011 | |
Carrying value at beginning of period | 76,107 | 33,081 |
Capitalization | 13,510 | 15,013 |
Change in fair value: | ||
Due to pay-offs/pay-downs | (3,060) | (265) |
Due to change in valuation inputs or assumptions | 6,603 | (236) |
Carrying value at March 31 | $ 93,160 | $ 47,593 |
Mortgage Servicing Rights - S63
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Servicing income: | ||
Servicing income | $ 4,793 | $ 2,748 |
Change in fair value of mortgage servicing rights | 3,543 | (501) |
Change in fair value of mortgage servicing rights hedging instruments | (5,256) | |
Gross servicing income | 3,080 | 2,247 |
Gross direct servicing expenses | 1,795 | 1,020 |
Net servicing income | $ 1,285 | $ 1,227 |
Mortgage Servicing Rights - S64
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | ||
Unpaid principal balance | $ 7,423,932 | $ 6,529,431 |
Weighted-average prepayment speed (CPR) | 7.69% | 8.90% |
Estimated impact on fair value of a 10% increase | $ (2,997) | $ (3,026) |
Estimated impact on fair value of a 20% increase | $ (5,780) | $ (5,855) |
Discount rate | 10.01% | 9.75% |
Estimated impact on fair value of a 100 bp increase | $ (3,829) | $ (3,052) |
Estimated impact on fair value of a 200 bp increase | $ (7,379) | $ (5,867) |
Weighted-average coupon interest rate | 3.98% | 3.94% |
Weighted-average servicing fee (basis points) | 0.28% | 0.28% |
Weighted-average remaining maturity (in months) | 322 years | 335 months |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Transfers And Servicing [Abstract] | ||
Mortgage loans serviced related to bulk sale of mortgage servicing rights | $ 0 | $ 0 |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Deferred | $ 5,482 | $ 5,425 |
Total | $ 5,482 | $ 5,425 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Taxes [Line Items] | ||
Statutory federal income tax rate | 21.00% | 35.00% |
Tax periods open for examination | 2,013 | |
Federal | ||
Income Taxes [Line Items] | ||
Net operating loss carryforward | $ 6.9 | |
State | ||
Income Taxes [Line Items] | ||
Net operating loss carryforward | $ 5.8 | |
Net operating loss expiration starting period | 2,030 |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal taxes calculated at statutory rate | $ 5,300 | $ 5,305 |
Increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 1,143 | 610 |
Benefit of equity based compensation | (736) | (195) |
Municipal interest income | (201) | (366) |
Bank owned life insurance | (12) | (21) |
Other | (12) | 92 |
Total | $ 5,482 | $ 5,425 |
Federal taxes calculated at statutory rate, percentage | 21.00% | 35.00% |
Increase (decrease) resulting from: | ||
State taxes, net of federal benefit, percentage | 4.50% | 4.00% |
Benefit of equity based compensation, percentage | (3.00%) | (1.30%) |
Municipal interest income, percentage | (0.80%) | (2.40%) |
Bank owned life insurance, percentage | (0.00%) | (0.20%) |
Other, percentage | 0.00% | 0.60% |
Income tax expense, as reported, percentage | 21.70% | 35.70% |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax liability (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 6,359 | $ 6,264 |
Amortization of core deposit intangible | 832 | 759 |
Deferred compensation | 3,711 | 6,158 |
Unrealized loss on available-for-sale debt securities | 3,830 | 988 |
Other | 5,501 | 3,599 |
Subtotal | 20,233 | 17,768 |
Deferred tax liabilities: | ||
FHLB stock dividends | (550) | (550) |
Depreciation | (4,344) | (4,115) |
Cash flow hedges | (866) | |
Mortgage servicing rights | (24,274) | (19,830) |
Other | (5,564) | (5,131) |
Subtotal | (35,598) | (29,626) |
Net deferred tax liability | $ (15,365) | $ (11,858) |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 981,485 | $ 1,000,158 |
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 | 959,271 | 977,276 |
Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 22,214 | $ 22,882 |
Commitments and Contingencies71
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Total principal amount of loans repurchased or indemnified | $ 1,119 | $ 849 |
Commitments and Contingencies72
Commitments and Contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Balance at beginning of period | $ 3,386 | $ 2,659 |
Provision for loan repurchases or indemnifications | 186 | 183 |
Recoveries on previous losses | (58) | |
Balance at end of period | $ 3,514 | $ 2,842 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jul. 31, 2017USD ($)InterestRateSwap | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($)InterestRateSwap | |
Derivative [Line Items] | ||||
Lock in period for interest rates | 45 days | |||
Long-term debt | $ 139,586 | $ 143,302 | ||
Notional amount | $ 100,000 | |||
Interest rate swap maturity date | Jun. 30, 2024 | |||
Designated as Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000 | 130,000 | ||
Subordinated Debentures | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | InterestRateSwap | 2 | |||
Long-term debt | $ 30,930 | |||
Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | InterestRateSwap | 3 | |||
Interest Rate Swaps | Designated as Hedging | ||||
Derivative [Line Items] | ||||
Fair value of interest rate swap | 1,127 | |||
Gain on cancellation of swaps | 1,564 | |||
Interest Rate Swaps | Subordinated Debentures | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000 | |||
Fair value of interest rate swap | $ 1,037 | $ 305 | ||
Interest Rate Swaps Three | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000 | |||
Derivative notional amount maturity period | 3 years | |||
Interest Rate Swaps Four | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000 | |||
Derivative notional amount maturity period | 4 years | |||
Interest Rate Swaps Five | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000 | |||
Derivative notional amount maturity period | 5 years |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 |
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 100,000 | ||
Not Designated As Hedging | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 2,053,274 | $ 1,810,484 | |
Asset | 13,867 | 8,258 | |
Liability | 3,655 | 1,699 | |
Not Designated As Hedging | Interest rate contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 175,726 | 146,754 | |
Asset | 2,360 | 1,146 | |
Liability | 2,360 | 1,146 | |
Not Designated As Hedging | Forward commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 919,571 | 870,574 | |
Liability | 1,295 | 553 | |
Not Designated As Hedging | Interest rate-lock commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 692,977 | 504,156 | |
Asset | 10,179 | 6,768 | |
Not Designated As Hedging | Futures Contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 243,000 | 283,000 | |
Asset | 1,180 | 315 | |
Not Designated As Hedging | Option Contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 22,000 | 6,000 | |
Asset | 148 | 29 | |
Designated as Hedging | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 30,000 | 130,000 | |
Asset | 1,037 | 1,432 | |
Designated as Hedging | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 30,000 | 130,000 | |
Asset | $ 1,037 | $ 1,432 |
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 | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Derivatives Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | $ 6,325 | $ (378) |
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 | 3,411 | 2,942 |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Forward commitments | ||
Derivatives Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 5,318 | $ (3,320) |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Futures Contracts | ||
Derivatives Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (2,447) | |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Option Contracts | ||
Derivatives Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 43 | |
Designated as Hedging | ||
Derivatives Fair Value [Line Items] | ||
Amount of gain reclassified from other comprehensive income and recognized in interest expense on long-term debt | $ (32) |
Derivatives - Schedule of Other
Derivatives - Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Derivatives Fair Value [Line Items] | |
Amount of gain recognized in other comprehensive income, net of tax | $ 1,273 |
Designated as Hedging | |
Derivatives Fair Value [Line Items] | |
Amount of gain recognized in other comprehensive income, net of tax | $ 1,273 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||
Interest receivable | $ 13,920 | $ 13,069 | |
Mortgage servicing rights, net | 93,160 | 76,107 | $ 33,081 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 73,700 | 119,751 | |
Investment securities | 597,347 | 543,992 | |
Federal Home Loan Bank Stock | 11,810 | 11,412 | |
Loans, net | 3,220,257 | 3,142,870 | |
Loans held for sale | 414,518 | 526,185 | |
Interest receivable | 13,920 | 13,069 | |
Mortgage servicing rights, net | 93,160 | 76,107 | |
Derivatives assets | 14,904 | 9,690 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 3,059,142 | 2,976,066 | |
Deposits, With stated maturities | 707,009 | 688,329 | |
Securities sold under agreement to repurchase | 14,724 | 14,293 | |
Short term borrowings | 138,707 | 190,000 | |
Interest payable | 1,857 | 1,504 | |
Long-term debt | 139,586 | 143,302 | |
Derivatives liabilities | 3,655 | 1,699 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 73,700 | 119,751 | |
Investment securities | 597,347 | 543,992 | |
Loans, net | 3,213,659 | 3,141,400 | |
Loans held for sale | 414,518 | 526,185 | |
Interest receivable | 13,920 | 13,069 | |
Mortgage servicing rights, net | 93,160 | 76,107 | |
Derivatives assets | 14,904 | 9,690 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 3,059,142 | 2,976,066 | |
Deposits, With stated maturities | 706,585 | 682,403 | |
Securities sold under agreement to repurchase | 14,724 | 14,293 | |
Short term borrowings | 138,707 | 190,000 | |
Interest payable | 1,857 | 1,504 | |
Long-term debt | 138,456 | 149,135 | |
Derivatives liabilities | 3,655 | 1,699 | |
Fair Value | Fair Value Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 73,700 | 119,751 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 3,059,142 | 2,976,066 | |
Securities sold under agreement to repurchase | 14,724 | 14,293 | |
Short term borrowings | 138,707 | 190,000 | |
Interest payable | 526 | 575 | |
Fair Value | Fair Value Level 2 | |||
Financial assets: | |||
Investment securities | 597,347 | 540,388 | |
Loans, net | 3,064,373 | ||
Loans held for sale | 414,518 | 526,185 | |
Interest receivable | 13,920 | 13,069 | |
Derivatives assets | 14,904 | 9,690 | |
Financial liabilities: | |||
Deposits, With stated maturities | 706,585 | 682,403 | |
Interest payable | 1,331 | 929 | |
Long-term debt | 138,456 | 149,135 | |
Derivatives liabilities | 3,655 | 1,699 | |
Fair Value | Fair Value Level 3 | |||
Financial assets: | |||
Investment securities | 3,604 | ||
Loans, net | 3,213,659 | 77,027 | |
Mortgage servicing rights, net | $ 93,160 | $ 76,107 |
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 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets: | |||
Mortgage servicing rights, net | $ 93,160 | $ 76,107 | $ 33,081 |
Impaired loans | 9,018 | 9,373 | |
Available-for-sale securities, at fair value | 543,992 | ||
Fair Value, Measurements, Recurring | |||
Financial assets: | |||
Investment securities | 597,347 | ||
Loans held for sale | 414,518 | 526,185 | |
Mortgage servicing rights, net | 93,160 | 76,107 | |
Derivatives assets | 14,904 | 9,690 | |
Available-for-sale securities, at fair value | 543,992 | ||
Financial liabilities: | |||
Derivatives liabilities | 3,655 | 1,699 | |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | |||
Financial assets: | |||
Investment securities | 982 | ||
Available-for-sale securities, at fair value | 986 | ||
Fair Value, Measurements, Recurring | Mortgage-backed Securities | |||
Financial assets: | |||
Investment securities | 472,930 | ||
Available-for-sale securities, at fair value | 418,781 | ||
Fair Value, Measurements, Recurring | Municipals, Tax Exempt | |||
Financial assets: | |||
Investment securities | 113,158 | ||
Available-for-sale securities, at fair value | 109,251 | ||
Fair Value, Measurements, Recurring | Treasury Securities | |||
Financial assets: | |||
Investment securities | 7,178 | ||
Available-for-sale securities, at fair value | 7,252 | ||
Fair Value, Measurements, Recurring | Equity Securities | |||
Financial assets: | |||
Investment securities | 3,099 | ||
Available-for-sale securities, at fair value | 7,722 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Investment securities | 597,347 | ||
Loans held for sale | 414,518 | 526,185 | |
Derivatives assets | 14,904 | 9,690 | |
Available-for-sale securities, at fair value | 540,388 | ||
Financial liabilities: | |||
Derivatives liabilities | 3,655 | 1,699 | |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities | |||
Financial assets: | |||
Investment securities | 982 | ||
Available-for-sale securities, at fair value | 986 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities | |||
Financial assets: | |||
Investment securities | 472,930 | ||
Available-for-sale securities, at fair value | 418,781 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipals, Tax Exempt | |||
Financial assets: | |||
Investment securities | 113,158 | ||
Available-for-sale securities, at fair value | 109,251 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Treasury Securities | |||
Financial assets: | |||
Investment securities | 7,178 | ||
Available-for-sale securities, at fair value | 7,252 | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | |||
Financial assets: | |||
Investment securities | 3,099 | ||
Available-for-sale securities, at fair value | 4,118 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Mortgage servicing rights, net | 93,160 | 76,107 | |
Available-for-sale securities, at fair value | 3,604 | ||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Financial assets: | |||
Available-for-sale securities, at fair value | 3,604 | ||
Fair Value, Measurements, Nonrecurring | |||
Financial assets: | |||
Other real estate owned | 800 | 13,174 | |
Impaired loans | 144 | 77,027 | |
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | |||
Financial assets: | |||
Impaired loans | 1,971 | ||
Fair Value, Measurements, Nonrecurring | Consumer and Other | |||
Financial assets: | |||
Impaired loans | 25,320 | ||
Fair Value, Measurements, Nonrecurring | Construction Loans | Commercial and Industrial | |||
Financial assets: | |||
Impaired loans | 4,211 | ||
Fair Value, Measurements, Nonrecurring | 1-to-4 Family Mortgage | Residential Real Estate | |||
Financial assets: | |||
Impaired loans | 144 | 21,902 | |
Fair Value, Measurements, Nonrecurring | Owner Occupied | Commercial Real Estate | |||
Financial assets: | |||
Impaired loans | 10,030 | ||
Fair Value, Measurements, Nonrecurring | Non-Owner Occupied | Commercial Real Estate | |||
Financial assets: | |||
Impaired loans | 13,593 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Other real estate owned | 800 | 13,174 | |
Impaired loans | 144 | 77,027 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | |||
Financial assets: | |||
Impaired loans | 1,971 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer and Other | |||
Financial assets: | |||
Impaired loans | 25,320 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction Loans | Commercial and Industrial | |||
Financial assets: | |||
Impaired loans | 4,211 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | 1-to-4 Family Mortgage | Residential Real Estate | |||
Financial assets: | |||
Impaired loans | $ 144 | 21,902 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Owner Occupied | Commercial Real Estate | |||
Financial assets: | |||
Impaired loans | 10,030 | ||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-Owner Occupied | Commercial Real Estate | |||
Financial assets: | |||
Impaired loans | $ 13,593 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | ||
Balance at beginning of period | $ 3,604 | $ 4,549 |
Reclassification of equity securities without a readily determinable fair value to other assets | (3,604) | 0 |
Balance at end of period | $ 0 | $ 4,549 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Reclassification of other securities to other assets | $ 3,604 | $ 0 | |
Mortgage Loans | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Net gains from fair value changes of mortgage loans | 2,121 | $ 7,606 | |
GNMA | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Mortgage loans previously sold | 45,933 | ||
Mortgage loans held for sale measured at fair value | 0 | $ 43,035 | |
ASU 2016-01 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | |||
Reclassification of other securities to other assets | $ 3,604 |
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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Valuation of collateral | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Valuation of collateral | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Valuation of collateral | Impaired Loans | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 144 | $ 77,027 |
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 | 15.00% | 15.00% |
Appraised value of property less costs to sell | Other Real Estate Owned | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 800 | $ 13,174 |
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 ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 414,017 | $ 482,089 |
Past due loans of 90 days or more | 320 | |
Nonaccrual loans | 501 | 741 |
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 | 401,087 | 467,039 |
Past due loans of 90 days or more | 320 | |
Nonaccrual loans | 501 | 741 |
Difference | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 12,930 | $ 15,050 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Interest paid | $ 6,066 | $ 2,330 |
Interest income | 50,693 | 29,006 |
Mortgage Segment | ||
Segment Reporting Information [Line Items] | ||
Interest paid | $ 4,508 | $ 3,551 |
Mortgage Segment | Prime Interest Rate | ||
Segment Reporting Information [Line Items] | ||
Warehouse line of credit interest rate | 4.75% | 4.00% |
Banking Segment | ||
Segment Reporting Information [Line Items] | ||
Interest income | $ 4,508 | $ 3,551 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 48,429 | $ 30,251 | |
Provision for loan losses | 317 | (257) | |
Mortgage banking income | 28,184 | 25,581 | |
Net, change in fair value of mortgage servicing rights | (501) | ||
Change in fair value of mortgage servicing rights | (1,713) | ||
Other noninterest income | 6,804 | 6,007 | |
Depreciation and amortization | 1,106 | 1,002 | |
Amortization of intangibles | 853 | 392 | |
Other noninterest mortgage banking expense | 23,879 | 22,368 | |
Other noninterest expense | 30,313 | 22,655 | |
Income before income taxes | 25,236 | 15,178 | |
Income tax expense | 5,482 | 5,425 | |
Net income | 19,754 | 9,753 | |
Total assets | 4,725,416 | 3,166,459 | $ 4,727,713 |
Goodwill | 137,190 | 46,867 | $ 137,190 |
Banking Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 48,771 | 29,856 | |
Provision for loan losses | 317 | (257) | |
Mortgage banking income | 6,108 | 5,666 | |
Other noninterest income | 6,804 | 6,007 | |
Depreciation and amortization | 978 | 864 | |
Amortization of intangibles | 853 | 392 | |
Other noninterest mortgage banking expense | 5,097 | 4,836 | |
Other noninterest expense | 30,313 | 22,655 | |
Income before income taxes | 24,125 | 13,039 | |
Total assets | 4,220,543 | 2,705,118 | |
Goodwill | 137,090 | 46,767 | |
Mortgage Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (342) | 395 | |
Mortgage banking income | 22,076 | 19,915 | |
Net, change in fair value of mortgage servicing rights | (501) | ||
Change in fair value of mortgage servicing rights | (1,713) | ||
Depreciation and amortization | 128 | 138 | |
Other noninterest mortgage banking expense | 18,782 | 17,532 | |
Income before income taxes | 1,111 | 2,139 | |
Total assets | 504,873 | 461,341 | |
Goodwill | $ 100 | $ 100 |
Segment Reporting - Schedule 85
Segment Reporting - Schedule of Segment Financial Information (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Merger and conversion | $ 1,193 | $ 487 |
Clayton Banks | ||
Segment Reporting Information [Line Items] | ||
Merger and conversion | $ 1,193 | $ 487 |
Minimum Capital Requirements -
Minimum Capital Requirements - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Banking And Thrift [Abstract] | ||
Capital conservative current buffer percentage | 1.88% | 1.25% |
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. As of March 31, 2018 and December 31, 2017, the buffer was 1.88% and 1.25%, respectively. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent. |
Minimum Capital Requirements 87
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
FB Financial Corporation | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 506,921 | $ 496,422 |
Total Capital (to risk-weighted assets), Actual Ratio | 12.30% | 12.00% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 328,636 | $ 330,672 |
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 | $ 405,865 | $ 382,340 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 9.90% | 9.30% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 482,515 | $ 472,381 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.80% | 11.40% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 246,391 | $ 247,969 |
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 | $ 323,593 | $ 299,629 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.90% | 7.30% |
Tier 1 Capital (to average assets), Actual Amount | $ 482,515 | $ 472,381 |
Tier 1 Capital (to average assets), Actual Ratio | 10.70% | 10.50% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 180,043 | $ 180,643 |
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 | $ 452,515 | $ 442,381 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.00% | 10.70% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 184,784 | $ 185,874 |
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 | $ 261,982 | $ 237,506 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 6.40% | 5.80% |
FirstBank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 476,454 | $ 466,102 |
Total Capital (to risk-weighted assets), Actual Ratio | 11.60% | 11.30% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 328,589 | $ 329,984 |
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 | $ 405,807 | $ 381,544 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 9.90% | 9.30% |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 410,736 | $ 412,480 |
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 | $ 452,048 | $ 442,061 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.00% | 10.70% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 246,348 | $ 247,422 |
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 | $ 323,537 | $ 298,968 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.90% | 7.30% |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount | $ 246,348 | $ 247,422 |
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 | $ 452,048 | $ 442,061 |
Tier 1 Capital (to average assets), Actual Ratio | 10.00% | 9.80% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 180,819 | $ 180,987 |
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 | $ 226,024 | $ 226,234 |
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 | $ 452,048 | $ 442,061 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.00% | 10.70% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 184,761 | $ 185,567 |
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 | $ 261,950 | $ 237,113 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 6.40% | 5.80% |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 266,877 | $ 268,041 |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Compensation cost related to stock grants and vesting of restricted stock units | $ 1,958 | $ 1,352 | ||
EBI Units | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
EBI Units outstanding in equity based incentive plans for employees, units | 29,172 | 67,470 | ||
EBI Units outstanding in equity based incentive plans for employees, value | $ 1,184 | $ 2,833 | ||
Expense related to cash settled EBI | $ 117 | $ 298 | ||
Restricted Stock Units (RSUs) | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
EBI Units outstanding in equity based incentive plans for employees, units | 1,144,038 | 1,203,418 | 1,214,325 | 1,200,848 |
Fair value of restricted stock units vested and released | $ 3,614 | $ 1,343 | ||
Compensation cost related to stock grants and vesting of restricted stock units | 1,811 | $ 1,352 | ||
Compensation cost due to modification of vesting terms of certain grants | 249 | |||
Unrecognized compensation cost related to nonvested restricted stock units | $ 15,696 | $ 12,950 | ||
Expected weighted-average period to be recognized | 2 years 9 months 10 days | 2 years 9 months 18 days | ||
Employee Stock Purchase Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Maximum number of shares issuable | 200,000 | |||
Purchase price percentage of offering period | 95.00% | |||
Maximum number of shares per participant | 725 | |||
Maximum worth of award per participant | $ 25,000 | |||
Shares issued under plan | 16,537 | 0 | ||
Number of shares reserved for issuance | 2,444,428 | 2,460,965 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Vested and Unvested Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted Stock Units Outstanding, Balance, beginning of period (unvested) | 1,214,325 | 1,200,848 |
Restricted Stock Units Outstanding, Grants | 105,429 | 73,801 |
Restricted Stock Units Outstanding, Released and distributed (vested) | (170,160) | (70,687) |
Restricted Stock Units Outstanding, Forfeited/expired | (5,556) | (544) |
Restricted Stock Units Outstanding, Balance, end of period (unvested) | 1,144,038 | 1,203,418 |
Weighted Average Grant Date Fair Value, Balance, beginning of period (unvested) | $ 19.97 | $ 19 |
Weighted Average Grant Date Fair Value, Grants | 39.90 | 33.48 |
Weighted Average Grant Date Fair Value, Released and distributed (vested) | 21.24 | 19 |
Weighted Average Grant Date Fair Value, Forfeited/expired | 19 | 19 |
Weighted Average Grant Date Fair Value, Balance, end of period (unvested) | $ 21.11 | $ 19.15 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Related Party Transactions [Abstract] | |
Loans outstanding, Beginning balance | $ 21,012 |
New loans and advances | 1,611 |
Repayments | (1,537) |
Loans outstanding, Ending balance | $ 21,086 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Unfunded commitments | $ 3 | $ 2 | |
Deposits from related parties | 107,453 | 110,465 | |
Aviation Time Sharing Agreement | |||
Related Party Transaction [Line Items] | |||
Payments to related party | 72 | $ 25 | |
Certain Executive Officers and Directors and Their Associates | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | 6,373 | 4,672 | |
Shareholders | |||
Related Party Transaction [Line Items] | |||
Unamortized leasehold improvements | 132 | 137 | |
Lease expense | 148 | $ 126 | |
Director | |||
Related Party Transaction [Line Items] | |||
Amount of investment held by the company | $ 183 | $ 200 |