Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FBK | |
Entity Registrant Name | FB Financial Corp | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding (in shares) | 30,860,397 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 60,253 | $ 38,381 |
Federal funds sold | 6,600 | 31,364 |
Interest-bearing deposits in financial institutions | 128,561 | 55,611 |
Cash and cash equivalents | 195,414 | 125,356 |
Investments: | ||
Available-for-sale debt securities, at fair value | 667,654 | 655,698 |
Equity securities, at fair value | 3,181 | 3,107 |
Federal Home Loan Bank stock, at cost | 13,432 | 13,432 |
Loans held for sale, at fair value | 248,054 | 278,815 |
Loans | 3,786,791 | 3,667,511 |
Less: allowance for loan losses | 29,814 | 28,932 |
Net loans | 3,756,977 | 3,638,579 |
Premises and equipment, net | 87,013 | 86,882 |
Other real estate owned, net | 12,828 | 12,643 |
Operating lease right-of-use assets | 32,694 | 0 |
Interest receivable | 16,611 | 14,503 |
Mortgage servicing rights | 64,031 | 88,829 |
Goodwill | 137,190 | 137,190 |
Core deposit and other intangibles, net | 10,439 | 11,628 |
Other assets | 89,638 | 70,102 |
Total assets | 5,335,156 | 5,136,764 |
Deposits | ||
Noninterest-bearing | 964,745 | 949,135 |
Interest-bearing checking | 937,323 | 863,706 |
Money market and savings | 1,257,863 | 1,239,131 |
Customer time deposits | 1,073,819 | 1,016,638 |
Brokered and internet time deposits | 69,441 | 103,107 |
Total deposits | 4,303,191 | 4,171,717 |
Borrowings | 229,178 | 227,776 |
Operating lease liabilities | 35,093 | 0 |
Accrued expenses and other liabilities | 73,117 | 65,414 |
Total liabilities | 4,640,579 | 4,464,907 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 30,852,665 and 30,724,532 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 30,853 | 30,725 |
Additional paid-in capital | 423,647 | 424,146 |
Retained earnings | 236,947 | 221,213 |
Accumulated other comprehensive income (loss), net | 3,130 | (4,227) |
Total shareholders' equity | 694,577 | 671,857 |
Total liabilities and shareholders' equity | $ 5,335,156 | $ 5,136,764 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 30,852,665 | 30,724,532 |
Common stock, shares outstanding (in shares) | 30,852,665 | 30,724,532 |
Consolidated statements of inco
Consolidated statements of income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest income: | ||
Interest and fees on loans | $ 60,448 | $ 50,693 |
Interest on securities | ||
Taxable | 3,569 | 2,852 |
Tax-exempt | 1,144 | 925 |
Other | 772 | 378 |
Total interest income | 65,933 | 54,848 |
Interest expense: | ||
Deposits | 11,855 | 5,071 |
Borrowings | 1,062 | 1,348 |
Total interest expense | 12,917 | 6,419 |
Net interest income | 53,016 | 48,429 |
Provision for loan losses | 1,391 | 317 |
Net interest income after provision for loan losses | 51,625 | 48,112 |
Noninterest income: | ||
Gain (loss) from securities, net | 43 | (47) |
Loss on sales or write-downs of other real estate owned | (39) | (186) |
Gain from other assets | 191 | 68 |
Other income | 1,793 | 1,443 |
Total noninterest income | 29,039 | 33,275 |
Noninterest expenses: | ||
Salaries, commissions and employee benefits | 33,697 | 34,027 |
Occupancy and equipment expense | 3,730 | 3,424 |
Legal and professional fees | 1,725 | 2,043 |
Data processing | 2,384 | 2,035 |
Merger costs | 621 | 1,193 |
Amortization of core deposit and other intangibles | 729 | 853 |
Regulatory fees and deposit insurance assessments | 592 | 562 |
Advertising | 2,737 | 3,282 |
Other expense | 8,414 | 8,075 |
Total noninterest expense | 55,101 | 56,151 |
Income before income taxes | 25,563 | 25,236 |
Income tax expense (Note 8) | 5,975 | 5,482 |
Net income | $ 19,588 | $ 19,754 |
Earnings per common share | ||
Basic (in dollars per share) | $ 0.63 | $ 0.65 |
Fully diluted (in dollars per share) | $ 0.62 | $ 0.63 |
Mortgage banking income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 21,021 | $ 26,471 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,079 | 1,959 |
ATM and interchange fees | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,656 | 2,361 |
Investment services and trust income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 1,295 | 1,206 |
Software license and maintenance fees | ||
Noninterest expenses: | ||
Software license and maintenance fees | $ 472 | $ 657 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 19,588 | $ 19,754 |
Other comprehensive income (loss), net of tax: | ||
Net change in unrealized (loss) gain in available-for-sale securities, net of taxes of $2,752 and $2,570 | 7,778 | (7,039) |
Reclassification adjustment for loss on sale of securities included in net income, net of taxes of $2 and $2 | 4 | 7 |
Net change in unrealized gain in hedging activities, net of taxes of $116 and $446 | (331) | 1,271 |
Reclassification adjustment for gain on hedging activities, net of taxes of $33 and $1 | (94) | 3 |
Total other comprehensive income (loss), net of tax | 7,357 | (5,758) |
Comprehensive income | $ 26,945 | $ 13,996 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in unrealized gain (loss) in available for sale securities, tax | $ 2,752 | $ 2,570 |
Reclassification adjustment for gain on sale of securities included in net income, tax | 2 | 2 |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | 116 | 446 |
Reclassification adjustment for gain on hedging activities, tax | $ 33 | $ 1 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income, net |
Balance at Dec. 31, 2017 | $ 596,729 | $ 30,536 | $ 418,596 | $ 147,449 | $ 148 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,754 | 19,754 | |||
Other comprehensive (loss) income, 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 | (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) |
Balance at Dec. 31, 2018 | 671,857 | 30,725 | 424,146 | 221,213 | (4,227) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 19,588 | 19,588 | |||
Other comprehensive (loss) income, net of taxes | 7,357 | 7,357 | |||
Stock based compensation expense | 1,638 | 3 | 1,635 | ||
Restricted stock units vested and distributed, net of shares withheld | (2,373) | 114 | (2,487) | ||
Shares issued under employee stock purchase program | 364 | 11 | 353 | ||
Cash dividends declared | (2,545) | (2,545) | |||
Balance at Mar. 31, 2019 | $ 694,577 | $ 30,853 | $ 423,647 | $ 236,947 | $ 3,130 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Cash dividends declared (USD per share) | $ 0.08 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 19,588 | $ 19,754 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 1,172 | 1,106 |
Amortization of core deposit and other intangibles | 729 | 853 |
Capitalization of mortgage servicing rights | (8,720) | (13,510) |
Net change in fair value of mortgage servicing rights | 4,358 | (3,543) |
Stock-based compensation expense | 1,638 | 1,958 |
Provision for loan losses | 1,391 | 317 |
Provision for mortgage loan repurchases | 59 | 186 |
Accretion of yield on purchased loans | (1,831) | (1,687) |
Accretion of discounts and amortization of premiums on securities, net | 614 | 697 |
(Gain) loss from securities, net | (43) | 47 |
Originations of loans held for sale | (932,125) | (1,617,103) |
Repurchases of loans held for sale | (5,957) | 0 |
Proceeds from sale of loans held for sale | 986,454 | 1,707,527 |
Gain on sale and change in fair value of loans held for sale | (18,151) | (23,391) |
Net loss or write-downs of other real estate owned | 39 | 186 |
Gain on other assets | (191) | (68) |
Provision for deferred income taxes | (4,219) | 5,482 |
Changes in: | ||
Other assets and interest receivable | (22,511) | (4,759) |
Accrued expenses and other liabilities | 10,133 | (26,207) |
Net cash provided by operating activities | 32,427 | 47,845 |
Activity in available-for-sale securities: | ||
Sales | 1,758 | 221 |
Maturities, prepayments and calls | 20,814 | 16,503 |
Purchases | (24,196) | (81,990) |
Net increase in loans | (118,358) | (74,928) |
Proceeds from sale of mortgage servicing rights | 29,160 | 0 |
Purchases of premises and equipment | (911) | (704) |
Proceeds from the sale of premises and equipment | 284 | 0 |
Proceeds from the sale of other real estate owned | 716 | 1,432 |
Net cash used in investing activities | (90,733) | (139,466) |
Cash flows from financing activities: | ||
Net increase in demand deposits | 107,959 | 83,076 |
Net increase in time deposits | 23,515 | 18,680 |
Net increase (decrease) in borrowings | 1,402 | (54,578) |
Share based compensation witholding obligation | (2,373) | (2,277) |
Net proceeds from sale of common stock | 364 | 669 |
Dividends paid | (2,503) | 0 |
Net cash provided by financing activities | 128,364 | 45,570 |
Net change in cash and cash equivalents | 70,058 | (46,051) |
Cash and cash equivalents at beginning of the period | 125,356 | 119,751 |
Cash and cash equivalents at end of the period | 195,414 | 73,700 |
Supplemental cash flow information: | ||
Interest paid | 10,820 | 6,066 |
Taxes paid | 77 | 31 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 1,106 | 630 |
Transfers from other real estate owned to loans | 166 | 120 |
Transfers from loans held for sale to loans | 540 | 1,599 |
Trade date payable - securities | 2,524 | 3,912 |
Dividends declared not paid on restricted stock units | 84 | 0 |
Adjustment to retained earnings for adoption of new accounting standards | (1,309) | (109) |
Right-of-use assets obtained in exchange for new operating lease liabilities | 33,819 | 0 |
GNMA | ||
Supplemental noncash disclosures: | ||
Derecognition of rebooked GNMA delinquent loans | $ 0 | $ 43,035 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: (Amounts are in thousands) Overview and presentation FB Financial Corporation (the “Company”) is a bank holding company headquartered in Nashville, Tennessee. The Company operates through its wholly-owned subsidiary, FirstBank (the "Bank"), with 56 full-service branches throughout Tennessee, north Alabama, and north Georgia, and a national mortgage business with office locations across the Southeast, which primarily originates loans to be sold in the secondary market. The unaudited 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 general banking industry guidelines, 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. 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. Prior to May 31, 2018, the Company was considered a "controlled company" and was controlled by the Company's Executive Chairman and former majority shareholder, James W. Ayers. During the second quarter of 2018, the Company completed a secondary offering of 3,680,000 shares of common stock pursuant to the Company's effective registration statement on Form S-3 whereby James W. Ayers was the seller. As a result of this transaction, the Company ceased to qualify as a "controlled company" as the selling shareholder's ownership was reduced below 50% of the voting power of the Company's issued and outstanding shares of common stock. The Company continues to qualify as an emerging growth company as defined by the "Jumpstart Our Business Startups Act" ("JOBS Act"). Subsequent events 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, 2019, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. On April 5, 2019, the Bank completed its previously-announced branch acquisition to purchase 11 Tennessee and three Georgia branch locations (the "Branches") from Atlantic Capital Bank, N.A., a national banking association and a wholly owned subsidiary of Atlantic Capital Bancshares, Inc., a Georgia corporation (collectively, "Atlantic Capital"), further increasing market share in existing markets and expanding the Company's footprint into new locations. See Note 2, "Mergers and acquisitions" in the notes to the consolidated financial statements for further details regarding the terms and conditions of this acquisition. On April 18, 2019, the Company declared a regular quarterly dividend of $0.08 per share to be paid on May 16, 2019 to shareholders of record as of May 1, 2019, totaling approximately $2,557 . Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including the Company, are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. 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, 2019 2018 Basic earnings per common share calculation: Net income $ 19,588 $ 19,754 Dividends paid on and undistributed earnings allocated to (105 ) — Earnings attributable to common shareholders $ 19,483 $ 19,754 Weighted-average basic shares outstanding 30,786,684 30,613,284 Basic earnings per common share $ 0.63 $ 0.65 Diluted earnings per common share: Earnings attributable to common shareholders 19,483 19,754 Weighted-average basic shares outstanding 30,786,684 30,613,284 Weighted-average diluted shares contingently issuable 562,514 808,546 Weighted-average diluted shares outstanding 31,349,198 31,421,830 Diluted earnings per common share $ 0.62 $ 0.63 Recently adopted accounting policies: Except as set forth below, the Company did not adopt any new accounting policies that were not disclosed in the Company's 2018 audited consolidated financial statements included on Form 10-K. Leases The Company leases certain banking, mortgage and operations locations. Effective January 1, 2019, the Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, incentive liabilities, leasehold intangibles and any impairment of the right-of-use asset. In determining whether a contract contains a lease, management conducts an analysis at lease inception to ensure an asset was specifically identified and the Company has control of use of the asset. For contracts determined to be leases entered into after January 1, 2019, the Company performs additional analysis to determine whether the lease should be classified as a finance or operating lease. The Company considers a lease to be a finance lease if future minimum lease payments amount to greater than 90% of the asset's fair value or if the lease term is equal to or greater than 75% of the asset's estimated economic useful life. As of March 31, 2019, the Company did not have any leases that were determined to be finance leases. The Company does not record leases on the consolidated balance sheets that are classified as short term (less than one year). Additionally, the Company has not recorded equipment leases or leases in which the Company is the lessor on the consolidated balance sheets as these are not material to the Company. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. This determination is at management's full discretion and is made through consideration of the asset, market conditions, competition and entity based economic conditions, among other factors. The lease term is used in the economic life test and also to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals. Operating leases are expensed on a straight-line basis over the life of the lease beginning when the lease commences. Rent expense and variable lease expense are included in Occupancy and equipment expense on the Company's Consolidated statements of income. The Company's variable lease expense include rent escalators that are based on the Consumer Price Index or market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. There are no residual value guarantees or restrictions or covenants imposed by leases that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. The Company accounts for lease and non-lease components as a single lease component by class of underlying asset. The discount rate used in determining the lease liability is based upon borrowing rates for what would be obtained by the Company for similar loans as an incremental rate as of the date of commencement or renewal. Recently adopted accounting principles: Except as set forth below, the Company did not adopt any new accounting principles that were not disclosed in the Company's 2018 audited consolidated financial statements included on Form 10-K. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The update requires 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 became effective for the Company on January 1, 2019. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” and 2018-11, “Leases (Topic 842): Targeted Improvements”. ASU No. 2018-10 provides improvements related to ASU No. 2016-02 to provide corrections or improvements to a number of areas within FASB ASC Topic 842 and provides additional and optional transition method to adopt the new lease standard. ASU No. 2018-11 allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The amendments in these updates became effective for the Company on January 1, 2019. FB Financial Corporation elected the optional transition method permitted by ASU 2018-11. Under this method, an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. Additionally, the Company elected to adopt the practical expedients allowed under the updates and therefore did not reassess 1) whether any expired or existing contract contain leases, 2) the lease classification for any expired or existing leases, or 3) initial direct costs for any existing leases. On January 1, 2019, the Company adopted these updates and recognized a right of use asset ("ROU") and lease liability of $32,545 and $34,876 , respectively, and recorded a cumulative effect adjustment to retained earnings of $1,309 , net of deferred taxes of $461 , in addition to adjustments to leasehold improvements of $1,020 and a reclassification from a previously-recognized lease intangible asset for $459 . The difference between the asset and liability amounts represents lease incentive liabilities, deferred rent and a lease intangible asset that was reclassified to the ROU asset upon adoption. This adoption did not have a significant impact on the Company's consolidated statements of income and did not have an impact on the Company's cash flows. Disclosures required by the update are presented in Note 6, "Leases" in the notes to the consolidated financial statements. 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 were required to prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update did not have an impact on the Company's consolidated financial statements. Newly issued not yet effective accounting standards: 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. The new model will require institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including loans obtained as a result of any acquisition not deemed to be purchased credit deteriorated (PCD). CECL also requires the allowance for credit losses for PCD loans to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense. The disclosure of credit quality indicators related to the amortized cost of financing receivables will be further disaggregated by year of origination (or vintage). Institutions are to apply the changes through a cumulative-effect adjustment to their retained earnings as of the beginning of the first reporting period in which the standard is effective. ASU 2016-13 will become effective for interim and annual periods beginning after December 15, 2019. Management has established a CECL implementation working group, which includes the appropriate members of management to evaluate the impact the adoption of this ASU will have on the Company's financial statements and disclosures and determine the most appropriate method of implementing the amendments in this ASU. The working group has selected a software vendor and is working on identifying data needs for modeling inputs and identifying appropriate modeling methodologies across our loan segments. During 2019, the Company is focused on model completion and finalizing assumptions with parallel processing of our existing allowance for loan losses model with the CECL model targeted for the second half of 2019, depending on how model completion and validation progresses. Management is also working to establish appropriate accounting policies to address new processes and controls under this update. The Company is currently evaluating the impact of this adoption on it’s financial statements and disclosures and currently expects to record a one-time adjustment to retained earnings to increase the allowance for loan losses, however the magnitude of this adjustment cannot currently be reasonably quantified. Management expects to disclose a range estimate of this impact on Form 10-Q for the quarterly period ended September 30, 2019. In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. ASU 2017-04 will become effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. Management does not expect adoption of this standard to have any impact on the Company's consolidated financial statements or disclosures. In June 2018, FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Consistent with the accounting for employee share-based payment awards, nonemployee share-based payment awards will be measured at grant-date fair value of the equity instruments obligated to be issued when the good has been delivered or the service rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. This ASU is effective for all entities for fiscal years beginnings after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements or disclosures. In August 2018, the FASB issued "Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements." This update is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The new disclosure guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact this change will have on its consolidated financial statements and disclosures. In March 2019, FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements", which align the guidance for fair value of the underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, "Financial Services—Depository and Lending", to present all “principal payments received under leases” within investing activities. The amendments in this update become effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this change on its consolidated financial statements and disclosures, but it is not expected to have a material impact. |
Mergers and acquisitions
Mergers and acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Mergers and acquisitions: Atlantic Capital Bank branch acquisition Effective April 5, 2019, the Bank completed its previously-announced branch acquisition to purchase 11 Tennessee and three Georgia branch locations (the "Branches") from Atlantic Capital Bank, N.A., a national banking association and a wholly owned subsidiary of Atlantic Capital Bancshares, Inc., a Georgia corporation (collectively, “Atlantic Capital”). Upon consumation, the Branches were merged with and into FirstBank and consolidated for locations across the Bank. As such, the Atlantic Capital branch acquistion is being accounted for under ASC 805, "Business Combinations." Prior to the determination of purchase accounting adjustments, the Bank assumed approximately $598,000 in deposits, purchased approximately $385,000 in loans at 99.32% of principal outstanding, and paid a deposit premium of 6.25% . The Company is finalizing the fair value of acquired assets and liabilities assumed and as such, purchase accounting is not yet complete. The Company incurred $621 in merger-related expenses during the three months ended March 31, 2019 in connection with this transaction. |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities | Investment securities: The amortized cost of securities and their fair values at March 31, 2019 and December 31, 2018 are shown below: March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 1,000 $ — $ (7 ) $ 993 Mortgage-backed securities - residential 516,917 2,407 (7,608 ) 511,716 Municipals, tax exempt 144,142 3,904 (406 ) 147,640 Treasury securities 7,394 — (89 ) 7,305 Total $ 669,453 $ 6,311 $ (8,110 ) $ 667,654 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 1,000 $ — $ (11 ) $ 989 Mortgage-backed securities - residential 520,654 1,191 (13,265 ) 508,580 Municipals, tax exempt 138,994 1,565 (1,672 ) 138,887 Treasury securities 7,385 — (143 ) 7,242 Total $ 668,033 $ 2,756 $ (15,091 ) $ 655,698 As of March 31, 2019 and December 31, 2018, the Company had $3,181 and $ 3,107 in marketable equity securities recorded at fair value, respectively. Securities pledged at March 31, 2019 and December 31, 2018 had carrying amounts of $ 330,966 and $ 326,215 , respectively, and were pledged to secure a Federal Reserve Bank line of credit, public deposits and repurchase agreements. There were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity during any period presented. Included in available-for-sale securities at March 31, 2019 and December 31, 2018 were $ 2,524 and $ 2,120 , respectively, in trade date payables that were settled after period end. The amortized cost and fair value of debt securities by contractual maturity at March 31, 2019 and December 31, 2018 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, 2019 December 31, 2018 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 11,682 $ 11,772 $ 15,883 $ 16,028 Due in one to five years 13,498 13,506 13,806 13,740 Due in five to ten years 16,891 16,974 18,539 18,387 Due in over ten years 110,465 113,686 99,151 98,963 152,536 155,938 147,379 147,118 Mortgage-backed securities - residential 516,917 511,716 520,654 508,580 Total debt securities $ 669,453 $ 667,654 $ 668,033 $ 655,698 Sales of available-for-sale securities were as follows: Three Months Ended March 31, 2019 2018 Proceeds from sales $ 1,758 $ 221 Gross realized gains 1 — Gross realized losses 7 9 Additionally, net gains of $ 49 and net losses of $ 38 were recognized due to changes in fair value of these securities during the three months ended March 31, 2019 and 2018, respectively. The following tables show gross unrealized losses at March 31, 2019 and December 31, 2018 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2019 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 $ — $ — $ 993 $ (7 ) $ 993 $ (7 ) Mortgage-backed securities - residential 4,913 (10 ) 357,430 (7,598 ) 362,343 (7,608 ) Municipals, tax exempt — — 21,580 (406 ) 21,580 (406 ) Treasury securities — — 7,305 (89 ) 7,305 (89 ) Total $ 4,913 $ (10 ) $ 387,308 $ (8,100 ) $ 392,221 $ (8,110 ) December 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 $ — $ — $ 989 $ (11 ) $ 989 $ (11 ) Mortgage-backed securities - residential 60,347 (478 ) 335,769 (12,787 ) 396,116 (13,265 ) Municipals, tax exempt 27,511 (366 ) 25,343 (1,306 ) 52,854 (1,672 ) Treasury securities — — 7,242 (143 ) 7,242 (143 ) Total $ 87,858 $ (844 ) $ 369,343 $ (14,247 ) $ 457,201 $ (15,091 ) As of March 31, 2019 and December 31, 2018 , the Company’s securities portfolio consisted of 353 and 360 securities, 116 and 174 of which were in an unrealized loss position, respectively. The Company evaluates available-for-sale debt 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, 2019 and 2018 . 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 basis, which may be maturity. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans and allowance for loan losses | Loans and allowance for loan losses: Loans outstanding at March 31, 2019 and December 31, 2018 , by major lending classification are as follows: March 31, December 31, 2019 2018 Commercial and industrial $ 888,345 $ 867,083 Construction 539,065 556,051 Residential real estate: 1-to-4 family mortgage 552,239 555,815 Residential line of credit 187,415 190,480 Multi-family mortgage 71,532 75,457 Commercial real estate: Owner occupied 499,123 493,524 Non-owner occupied 816,880 700,248 Consumer and other 232,192 228,853 Gross loans 3,786,791 3,667,511 Less: Allowance for loan losses (29,814 ) (28,932 ) Net loans $ 3,756,977 $ 3,638,579 As of March 31, 2019 and December 31, 2018 , $ 681,154 and $ 618,976 , respectively, of qualifying residential mortgage loans (including loans held for sale) and $ 439,831 and $ 608,735 , respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. As of March 31, 2019 and December 31, 2018 , $ 1,365,193 and $ 1,336,092 , respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. As of March 31, 2019 and December 31, 2018 , 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 , were $ 62,564 and $ 68,999 , respectively. The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Three Months Ended March 31, 2019 2018 Balance at the beginning of period $ (16,587 ) $ (17,682 ) Principal reductions and other reclassifications from nonaccretable difference 220 (1,294 ) Accretion 2,183 2,201 Changes in expected cash flows (630 ) (180 ) Balance at end of period $ (14,814 ) $ (16,955 ) Included in the ending balance of the accretable yield on PCI loans at March 31, 2019 and December 31, 2018, is a purchase accounting liquidity discount of $ 2,093 and $2,436 , respectively. There is also a purchase accounting nonaccretable credit discount of $3,480 and $4,355 related to the PCI loan portfolio at March 31, 2019 and December 31, 2018, respectively and an accretable credit and liquidity discount on non-PCI loans of $ 7,025 and $7,527 and $ 1,907 and $2,197 , respectively. Interest revenue, through accretion of the difference between the recorded investment of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $ 2,183 and $ 2,201 was recognized on purchased credit impaired loans during the three months ended March 31, 2019 and 2018 , respectively. This includes both the contractual interest income recognized 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 excluding contractual interest collected for all purchased loans was $ 1,831 and $1,687 for the three months ended March 31, 2019 and 2018 , 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, 2019 and 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 Three Months Ended March 31, 2019 Beginning balance - December 31, 2018 $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 Provision for loan losses 333 28 (65 ) (73 ) (27 ) (121 ) 434 882 1,391 Recoveries of loans previously charged-off 12 1 13 25 — 87 — 224 362 Loans charged off (179 ) — (81 ) (32 ) — — — (579 ) (871 ) Ending balance - March 31, 2019 $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 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 - $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 The following tables provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 709 $ — $ 136 $ — $ — $ 42 $ 299 $ — $ 1,186 Collectively evaluated for impairment 4,697 9,711 3,027 731 539 3,039 4,068 1,551 27,363 Acquired with deteriorated credit quality 108 47 132 — — 17 216 745 1,265 Ending balance - March 31, 2019 $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 December 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 $ 3 $ — $ 7 $ — $ — $ 53 $ 205 $ — $ 268 Collectively evaluated for impairment 5,247 9,677 3,205 811 566 3,066 3,628 1,583 27,783 Acquired with deteriorated credit quality 98 52 216 — — 13 316 186 881 Ending balance - December 31, 2018 $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 The following tables provides the amount of loans by loan category broken between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 4,045 $ 1,220 $ 874 $ 605 $ — $ 2,054 $ 6,699 $ 71 $ 15,568 Collectively evaluated for impairment 882,989 533,238 533,293 186,810 71,532 491,093 796,644 213,060 3,708,659 Acquired with deteriorated credit quality 1,311 4,607 18,072 — — 5,976 13,537 19,061 62,564 Ending balance - March 31, 2019 $ 888,345 $ 539,065 $ 552,239 $ 187,415 $ 71,532 $ 499,123 $ 816,880 $ 232,192 $ 3,786,791 December 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 $ 1,847 $ 1,221 $ 987 $ 245 $ — $ 2,608 $ 6,735 $ 73 $ 13,716 Collectively evaluated for impairment 863,788 549,075 535,451 190,235 75,457 484,900 677,247 208,643 3,584,796 Acquired with deteriorated credit quality 1,448 5,755 19,377 — — 6,016 16,266 20,137 68,999 Ending balance - December 31, 2018 $ 867,083 $ 556,051 $ 555,815 $ 190,480 $ 75,457 $ 493,524 $ 700,248 $ 228,853 $ 3,667,511 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings: Watch. Loans 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 tables show credit quality indicators by portfolio class at March 31, 2019 and December 31, 2018 : March 31, 2019 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 830,017 $ 49,599 $ 7,418 $ 887,034 Construction 528,421 4,717 1,320 534,458 Residential real estate: 1-to-4 family mortgage 519,688 6,046 8,433 534,167 Residential line of credit 183,448 1,337 2,630 187,415 Multi-family mortgage 71,460 72 — 71,532 Commercial real estate: Owner occupied 463,724 15,857 13,566 493,147 Non-owner occupied 785,933 10,301 7,109 803,343 Consumer and other 208,442 2,982 1,707 213,131 Total loans, excluding purchased credit impaired loans $ 3,591,133 $ 90,911 $ 42,183 $ 3,724,227 Purchased credit impaired loans Commercial and industrial $ — $ 828 $ 483 $ 1,311 Construction — 3,719 888 4,607 Residential real estate: 1-to-4 family mortgage — 13,644 4,428 18,072 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,080 1,896 5,976 Non-owner occupied — 5,608 7,929 13,537 Consumer and other — 16,122 2,939 19,061 Total purchased credit impaired loans $ — $ 44,001 $ 18,563 $ 62,564 Total loans $ 3,591,133 $ 134,912 $ 60,746 $ 3,786,791 December 31, 2018 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 804,447 $ 52,624 $ 8,564 $ 865,635 Construction 543,953 5,012 1,331 550,296 Residential real estate: 1-to-4 family mortgage 519,541 8,697 8,200 536,438 Residential line of credit 186,753 1,039 2,688 190,480 Multi-family mortgage 75,381 76 — 75,457 Commercial real estate: Owner occupied 456,694 16,765 14,049 487,508 Non-owner occupied 667,447 8,881 7,654 683,982 Consumer and other 204,279 2,763 1,674 208,716 Total loans, excluding purchased credit impaired loans $ 3,458,495 $ 95,857 $ 44,160 $ 3,598,512 Purchased credit impaired loans Commercial and industrial $ — $ 964 $ 484 $ 1,448 Construction — 3,229 2,526 5,755 Residential real estate: 1-to-4 family mortgage — 14,681 4,696 19,377 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,110 1,906 6,016 Non-owner occupied — 8,266 8,000 16,266 Consumer and other — 15,422 4,715 20,137 Total purchased credit impaired loans $ — $ 46,672 $ 22,327 $ 68,999 Total loans $ 3,458,495 $ 142,529 $ 66,487 $ 3,667,511 Nonperforming loans include loans that are no longer accruing interest (nonaccrual 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. 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, 2019 or December 31, 2018 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. The following tables provide the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest and loans current on payments accruing interest by category at March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 2,998 $ 37 $ 342 $ 883,657 $ 1,311 $ 888,345 Construction 1,014 — 275 533,169 4,607 539,065 Residential real estate: 1-to-4 family mortgage 1,470 648 3,107 528,942 18,072 552,239 Residential line of credit 730 487 973 185,225 — 187,415 Multi-family mortgage — — — 71,532 — 71,532 Commercial real estate: Owner occupied 162 117 1,671 491,197 5,976 499,123 Non-owner occupied 795 57 6,973 795,518 13,537 816,880 Consumer and other 1,875 539 380 210,337 19,061 232,192 Total $ 9,044 $ 1,885 $ 13,721 $ 3,699,577 $ 62,564 $ 3,786,791 December 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 $ 999 $ 65 $ 438 $ 864,133 $ 1,448 $ 867,083 Construction 109 — 283 549,904 5,755 556,051 Residential real estate: 1-to-4 family mortgage 4,919 737 2,704 528,078 19,377 555,815 Residential line of credit 726 957 804 187,993 — 190,480 Multi-family mortgage — — — 75,457 — 75,457 Commercial real estate: Owner occupied 407 197 2,423 484,481 6,016 493,524 Non-owner occupied 61 77 6,885 676,959 16,266 700,248 Consumer and other 1,987 1,008 148 205,573 20,137 228,853 Total $ 9,208 $ 3,041 $ 13,685 $ 3,572,578 $ 68,999 $ 3,667,511 Impaired loans recognized in conformity with ASC 310 at March 31, 2019 and December 31, 2018 , segregated by class, were as follows: March 31, 2019 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 3,186 $ 3,186 $ 709 Construction — — — Residential real estate: 1-to-4 family mortgage 405 405 136 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 189 218 42 Non-owner occupied 5,650 5,650 299 Consumer and other — — — Total $ 9,430 $ 9,459 $ 1,186 With no related allowance recorded Commercial and industrial $ 859 $ 1,022 $ — Construction 1,220 1,264 — Residential real estate: 1-to-4 family mortgage 469 779 — Residential line of credit 605 613 — Multi-family mortgage — — — Commercial real estate: Owner occupied 1,865 2,619 — Non-owner occupied 1,049 1,781 — Consumer and other 71 71 — Total $ 6,138 $ 8,149 $ — Total impaired loans $ 15,568 $ 17,608 $ 1,186 December 31, 2018 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 618 $ 732 $ 3 Construction — — — Residential real estate: 1-to-4 family mortgage 145 145 7 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 560 641 53 Non-owner occupied 5,686 5,686 205 Consumer and other — — — Total $ 7,009 $ 7,204 $ 268 With no related allowance recorded: Commercial and industrial $ 1,229 $ 1,281 $ — Construction 1,221 1,262 — Residential real estate: 1-to-4 family mortgage 842 1,151 — Residential line of credit 245 249 — Multi-family mortgage — — — Commercial real estate: Owner occupied 2,048 2,780 — Non-owner occupied 1,049 1,781 — Consumer and other 73 73 — Total $ 6,707 $ 8,577 $ — Total impaired loans $ 13,716 $ 15,781 $ 268 Average recorded investment and interest income on a cash basis recognized during the three months ended March 31, 2019 and 2018 on impaired loans, segregated by class, were as follows: Three months ended March 31, 2019 Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 1,902 $ 38 Construction — — Residential real estate: 1-to-4 family mortgage 275 2 Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 375 2 Non-owner occupied 5,668 — Consumer and other — — Total $ 8,220 $ 42 With no related allowance recorded: Commercial and industrial $ 1,044 $ 14 Construction 1,221 48 Residential real estate: 1-to-4 family mortgage 656 8 Residential line of credit 425 2 Multi-family mortgage — — Commercial real estate: Owner occupied 1,957 28 Non-owner occupied 1,049 — Consumer and other 72 2 Total $ 6,424 $ 102 Total impaired loans $ 14,644 $ 144 Three months ended March 31, 2018 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 As of March 31, 2019 and December 31, 2018 , the Company has a recorded investment in troubled debt restructurings of $8,953 and $ 6,794 , 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 $63 of specific reserves for those loans at March 31, 2019 and December 31, 2018 and had not committed to lend any additional amounts to these customers for either period end. Of these loans, $2,568 and $ 2,703 were classified as non-accrual loans as of March 31, 2019 and December 31, 2018 , respectively. The following tables present the financial effect of TDRs recorded during the periods indicated: Three Months Ended March 31, 2019 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,188 $ 3,188 $ — Total 2 $ 3,188 $ 3,188 $ — 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: 1-4 family mortgage 1 $ 249 $ 249 — Consumer and other 1 5 5 — Total 2 $ 254 $ 254 $ — 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, 2019 and 2018 . 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, 2019 and 2018 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, 2019 | |
Real Estate [Abstract] | |
Other real estate owned | 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 the other real estate owned for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Balance at beginning of period $ 12,643 $ 16,442 Transfers from loans 1,106 630 Properties sold (716 ) (1,432 ) Loss on sale of other real estate owned (7 ) (43 ) Transferred to loans (166 ) (120 ) Write-downs and partial liquidations (32 ) (143 ) Balance at end of period $ 12,828 $ 15,334 Foreclosed residential real estate properties included in the table above totaled $2,435 and $2,101 as of March 31, 2019 and December 31, 2018 , respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $164 and $478 at March 31, 2019 and December 31, 2018 , respectively. Excess land and facilities held for sale resulting from branch consolidations from previous acquisitions totaled $ 5,381 as of March 31, 2019 and December 31, 2018. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases: On January 1, 2019, the Company adopted ASU 2016-02 "Leases" ( Topic 842 ) and all subsequent updates that modified topic 842. For the Company, the adoption primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all the leases for which the Company is the lessee are comprised of real estate for branches, mortgage, and operations locations. As of March 31, 2019, the Company had 39 operating leases with terms greater than one year to 37 years. Leases with initial terms of less than one year are not recorded on the balance sheet. The Company elected not to include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are not material. Most leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew are included in the ROU asset and lease liability. Information related to the Company's operating leases is presented below: March 31, 2019 Right-of-use assets $ 32,694 Lease liabilities 35,093 Weighted average remaining lease term (in years) 15.65 Weighted average discount rate 3.48 % The components of lease expense included in Occupancy and equipment expense were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 1,112 Short-term lease cost 224 Variable lease cost 100 Total lease cost $ 1,436 As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. Lease expense for the three months ended March 31, 2018, prior to the adoption of ASU 2016-02, was $1,229 . A maturity analysis of operating lease liabilities and a reconciliation of undiscounted cash flows to the total operating lease liability is as follows: March 31, 2019 Lease payments due on or before: March 31, 2020 $ 4,670 March 31, 2021 4,604 March 31, 2022 4,308 March 31, 2023 3,332 March 31, 2024 3,176 Thereafter 27,065 Total undiscounted cash flows 47,155 Discount on cash flows (12,062 ) Total lease liability $ 35,093 |
Mortgage servicing rights
Mortgage servicing rights | 3 Months Ended |
Mar. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage servicing rights | Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Carrying value at beginning of period $ 88,829 $ 76,107 Capitalization 8,720 13,510 Sales (29,160 ) — Change in fair value: Due to pay-offs/pay-downs (1,795 ) (3,060 ) Due to change in valuation inputs or assumptions (2,563 ) 6,603 Carrying value at period end $ 64,031 $ 93,160 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, 2019 and 2018 , respectively: Three Months Ended March 31, 2019 2018 Servicing income: Servicing income $ 4,751 $ 4,793 Change in fair value of mortgage servicing rights (4,358 ) 3,543 Change in fair value of derivative hedging instruments 2,477 (5,256 ) Servicing income 2,870 3,080 Servicing expenses 1,744 1,795 Net servicing income $ 1,126 $ 1,285 Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2019 and December 31, 2018 are as follows: March 31, December 31, 2019 2018 Unpaid principal balance $ 5,221,109 $ 6,755,114 Weighted-average prepayment speed (CPR) 9.83 % 8.58 % Estimated impact on fair value of a 10% increase $ (2,493 ) $ (2,072 ) Estimated impact on fair value of a 20% increase $ (4,813 ) $ (4,006 ) Discount rate 8.99 % 10.45 % Estimated impact on fair value of a 100 bp increase $ (2,701 ) $ (2,505 ) Estimated impact on fair value of a 200 bp increase $ (5,181 ) $ (4,807 ) Weighted-average coupon interest rate 4.42 % 4.21 % Weighted-average servicing fee (basis points) 29 30 Weighted-average remaining maturity (in months) 319 325 The Company hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 10, "Derivatives" for additional information on these hedging instruments. From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, occasionally the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the three months ended March 31, 2019 , the Company sold $29,160 of mortgage servicing rights on $2,034,374 of serviced mortgage loans. There was not a material gain or loss recognized in connection with this sale. As of March 31, 2019 , there were $2,015,273 of mortgage loans being serviced related to this transaction. There were no sales of mortgage servicing rights during the three months ended March 31, 2018 . As of March 31, 2019 and December 31, 2018 , mortgage escrow deposits totaled to $ 70,121 and $53,468 , respectively. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes: An allocation of federal and state income taxes between current and deferred portions is presented below: For the three months ended March 31, 2019 2018 Current $ 10,194 $ — Deferred (4,219 ) 5,482 Total $ 5,975 $ 5,482 Federal income tax expense differs from the statutory federal rate of 21% for the three months ended March 31, 2019 and 2018 due to the following: For the three months ended March 31, 2019 2018 Federal taxes calculated at statutory rate $ 5,368 21.0 % $ 5,300 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,138 4.5 % 1,143 4.5 % Benefit of equity based compensation (392 ) (1.5 )% (736 ) (3.0 )% Municipal interest income, net of interest disallowance (216 ) (0.8 )% (201 ) (0.8 )% Bank owned life insurance (12 ) — % (12 ) — % Other 89 0.2 % (12 ) — % Income tax expense, as reported $ 5,975 23.4 % $ 5,482 21.7 % The components of the net deferred tax liability at March 31, 2019 and December 31, 2018 , are as follows: March 31, December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 7,768 $ 7,539 Operating lease liability 9,079 — Amortization of core deposit intangible 1,060 1,012 Deferred compensation 3,802 5,878 Unrealized loss on available-for-sale debt securities 558 3,299 Other 2,012 1,998 Subtotal 24,279 19,726 Deferred tax liabilities: FHLB stock dividends (550 ) (550 ) Operating lease - right of use asset (8,826 ) — Depreciation (4,777 ) (4,812 ) Cash flow hedges (586 ) (736 ) Mortgage servicing rights (16,684 ) (23,146 ) Other (7,904 ) (7,145 ) Subtotal (39,327 ) (36,389 ) Net deferred tax liability $ (15,048 ) $ (16,663 ) Tax periods for all fiscal years after 2014 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, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 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, 2019 2018 Commitments to extend credit, excluding interest rate lock commitments $ 1,111,472 $ 1,032,390 Letters of credit 18,762 19,024 Balance at end of period $ 1,130,234 $ 1,051,414 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 $ 1,393 and $1,119 for the three months ended March 31, 2019 and 2018 , respectively. The Company has established a reserve associated with loan repurchases. This reserve is recorded in accrued expenses and other liabilities on the consolidated balance sheets. The following table summarizes the activity in the repurchase reserve: For the three months ended March, 31 2019 2018 Balance at beginning of period $ 3,273 $ 3,386 Provision for loan repurchases or indemnifications 59 186 Recoveries on previous losses — (58 ) Balance at end of period $ 3,332 $ 3,514 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 mortgage loans are typically locked in for up to forty-five days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s Consolidated Balance Sheets. The 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 to offset the changes in fair value of 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. Additionally, 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. The Company also maintains two interest rate swap agreements with notional amounts totaling $30,000 used 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, 2019 and December 31, 2018 , the fair value of these contracts was $274 and $721 , respectively. 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 were designated as cash flow hedges with the objective of reducing the variability of cash flows associated with $100,000 of FHLB borrowings obtained in conjunction with the Clayton Banks acquisition. During the first quarter of 2018, these swaps were canceled, locking in a tax-adjusted gain of $1,564 in other comprehensive income to be accreted over the three, four and five-year terms of the underlying contracts. As of March 31, 2019 and December 31, 2018 , there was $1,342 and $1,436 , respectively, remaining in the other comprehensive income to be accreted. Certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Balance Sheets 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. Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, the Company may be required to post margin to these counterparties. At March 31, 2019 and December 31, 2018 , the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $20,380 and $13,904 , respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets. The following table provides details on the Company’s derivative financial instruments as of the dates presented: March 31, 2019 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 346,545 $ 9,073 $ 9,073 Forward commitments 599,205 — 3,327 Interest rate-lock commitments 492,507 8,121 — Futures contracts 178,000 1,456 — Option contracts 8,600 78 — Total $ 1,624,857 $ 18,728 $ 12,400 December 31, 2018 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 295,333 $ 6,679 $ 6,679 Forward commitments 474,208 — 4,958 Interest rate-lock commitments 318,706 6,241 — Futures contracts 166,000 649 — Options contracts 3,800 26 — Total $ 1,258,047 $ 13,595 $ 11,637 March 31, 2019 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 274 $ — December 31, 2018 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 721 $ — 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, 2019 2018 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 1,880 $ 3,411 Forward commitments (4,404 ) 5,318 Futures contracts 1,871 (2,447 ) Option contracts 13 43 Total $ (640 ) $ 6,325 Three Months Ended March 31, 2019 2018 Designated as hedging: Amount of gain (loss) reclassified from other comprehensive $ 94 $ (3 ) Gain (loss) included in interest expense on borrowings 55 (29 ) Total $ 149 $ (32 ) The following 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, 2019 2018 Designated as hedging: Amount of (loss) gain recognized in other comprehensive income, net of tax $ (331 ) $ 1,271 |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 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: 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 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 (“OREO”) 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. OREO 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. As such, mortgage servicing rights are considered 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. Fair Value March 31, 2019 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 195,414 $ 195,414 $ — $ — $ 195,414 Investment securities 670,835 — 670,835 — 670,835 Loans, net 3,756,977 — — 3,746,515 3,746,515 Loans held for sale 248,054 — 248,054 — 248,054 Interest receivable 16,611 — 3,114 13,497 16,611 Mortgage servicing rights 64,031 — — 64,031 64,031 Derivatives 19,002 — 19,002 — 19,002 Financial liabilities: Deposits: Without stated maturities $ 3,159,931 $ 3,159,931 $ — $ — $ 3,159,931 With stated maturities 1,143,260 — 1,147,498 — 1,147,498 Securities sold under agreement to 36,695 36,695 — — 36,695 Federal Home Loan Bank advances 161,553 — 161,654 — 161,654 Subordinated debt 30,930 — 30,000 — 30,000 Interest payable 7,112 294 6,818 — 7,112 Derivatives 12,400 — 12,400 — 12,400 Fair Value December 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 125,356 $ 125,356 $ — $ — $ 125,356 Investment securities 658,805 — 658,805 — 658,805 Loans, net 3,638,579 — — 3,630,500 3,630,500 Loans held for sale 278,815 — 278,815 — 278,815 Interest receivable 14,503 — 2,848 11,655 14,503 Mortgage servicing rights 88,829 — — 88,829 88,829 Derivatives 14,316 — 14,316 — 14,316 Financial liabilities: Deposits: Without stated maturities $ 3,051,972 $ 3,051,972 $ — $ — $ 3,051,972 With stated maturities 1,119,745 — 1,122,076 — 1,122,076 Securities sold under agreement to 15,081 15,081 — — 15,081 Federal Home Loan Bank advances 181,765 — 181,864 — 181,864 Subordinated debt 30,930 — 30,000 — 30,000 Interest payable 5,015 530 4,485 — 5,015 Derivatives 11,637 — 11,637 — 11,637 The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2019 are presented in the following table: March 31, 2019 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 $ — $ 993 $ — $ 993 Mortgage-backed securities — 511,716 — 511,716 Municipals, tax-exempt — 147,640 — 147,640 Treasury securities — 7,305 — 7,305 Equity securities — 3,181 — 3,181 Total $ — $ 670,835 $ — $ 670,835 Loans held for sale $ — $ 248,054 $ — $ 248,054 Mortgage servicing rights — — 64,031 64,031 Derivatives — 19,002 — 19,002 Financial Liabilities: Derivatives — 12,400 — 12,400 The balances and levels of the assets measured at fair value on a non-recurring basis at March 31, 2019 are presented in the following table: At March 31, 2019 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 $ — $ — $ 1,147 $ 1,147 Impaired loans (1) : Commercial and industrial $ — $ — $ 3,186 $ 3,186 Construction — — 6 6 Residential real estate: 1-4 family mortgage — — 260 260 Commercial real estate: Owner occupied — — 272 272 Non-owner occupied — — — — Consumer and other — — — — Total $ — $ — $ 3,724 $ 3,724 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2018 are presented in the following table: At December 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: Available-for-sale securities: U.S. government agency securities $ — $ 989 $ — $ 989 Mortgage-backed securities — 508,580 — 508,580 Municipals, tax-exempt — 138,887 — 138,887 Treasury securities — 7,242 — 7,242 Equity securities — 3,107 — 3,107 Total $ — $ 658,805 $ — $ 658,805 Loans held for sale $ — $ 278,815 $ — $ 278,815 Mortgage servicing rights — — 88,829 88,829 Derivatives — 14,316 — 14,316 Financial Liabilities: Derivatives — 11,637 — 11,637 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2018 are presented in the following table: At December 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 $ — $ — $ 2,266 $ 2,266 Impaired Loans (1) : Commercial and industrial $ — $ — $ 732 $ 732 Construction — — 832 832 Residential real estate: 1-4 family mortgage — — 146 146 Commercial real estate: Owner occupied — — 87 87 Non-owner occupied — — 6,921 6,921 Total $ — $ — $ 8,718 $ 8,718 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. There were no transfers between Level 1, 2 or 3 during the periods presented. The following table provides a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three months ended March 31, 2019 and 2018 : Available-for-sale securities Three Months Ended March 31, 2019 2018 Balance at beginning of period $ — $ 3,604 Reclassification of equity securities without a readily determinable fair value to other assets — (3,604 ) Balance at end of period $ — $ — The following table presents information as of March 31, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of inputs Impaired loans (1) $ 3,724 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 1,147 Appraised value of property less costs to sell Discount for costs to sell 0%-15% (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. The following table presents information as of December 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 Value Valuation technique Significant Unobservable inputs Range of inputs Impaired loans (1) $ 8,718 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 2,266 Appraised value of property less costs to sell Discount for costs to sell 0%-15% (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. Loans considered impaired are reserved for at the time the loan is identified as impaired taking into account the fair value of the collateral less estimated selling costs. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on changes in market conditions from the time of valuation and management's knowledge of the client and client's business. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for loan losses. 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 (losses) gains of $ (1,207) and $ 2,121 resulting from fair value changes of mortgage loans held for sale were recorded in income during the three months ended March 31, 2019 and 2018 , 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. There were $ 76,857 and $ 67,362 of delinquent GNMA loans that had previously been sold at March 31, 2019 and December 31, 2018. The Company determined there not to be 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 record any rebooked GNMA loans on the balance sheet as of March 31, 2019 or December 31, 2018. 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, 2019 and December 31, 2018 : March 31, 2019 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 247,858 $ 238,554 $ 9,304 Past due loans of 90 days or more — — — Nonaccrual loans 196 196 — December 31, 2018 Mortgage loans held for sale measured at fair value $ 278,418 $ 267,907 $ 10,511 Past due loans of 90 days or more — — — Nonaccrual loans 397 397 — |
Segment reporting
Segment reporting | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment reporting | 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 Consumer direct and Correspondent delivery channels. Additionally, the Mortgage segment includes the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The residential mortgage products and services originated in our Banking footprint and related revenues and expenses are included in our Banking segment. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking. The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment. During the three months ended March 31, 2019, the Company's Board of Directors approved management's strategic plan to exit both its Third party origination ('TPO') and Correspondent channels. As such, the Company entered an agreement to sell its TPO channel, which is expected to close during the second quarter of 2019. The mortgage segment incurred $1,054 in restructuring and miscellaneous charges during the first quarter of 2019 related to these plans. The following tables provides segment financial information for the three months ended March 31, 2019 and 2018 as follows: Three Months Ended March 31, 2019 Banking Mortgage Consolidated Net interest income $ 52,993 $ 23 $ 53,016 Provision for loan loss 1,391 — 1,391 Mortgage banking income 4,386 18,516 22,902 Change in fair value of mortgage servicing rights, net of hedging (1) — (1,881 ) (1,881 ) Other noninterest income 8,018 — 8,018 Depreciation 1,042 130 1,172 Amortization of intangibles 729 — 729 Other noninterest mortgage banking expense 2,831 17,356 20,187 Other noninterest expense (2) 31,959 1,054 33,013 Income before income taxes 27,445 (1,882 ) 25,563 Income tax expense 5,975 Net income $ 19,588 Total assets $ 4,987,744 $ 347,412 $ 5,335,156 Goodwill 137,090 100 137,190 (1) Included in mortgage banking income. (2) Included $621 in merger and conversion expenses in banking segment related to the ACBI branch acquisition and $1,054 in mortgage segment related to mortgage business restructuring charges. 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, net of hedging (1) — (1,713 ) (1,713 ) Other noninterest income 6,804 — 6,804 Depreciation and amortization 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. (2) Included $1,193 in merger and conversion expenses. Our Banking segment provides our Mortgage segment with a warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit, which eliminated in consolidation, had a prime interest rate of 5.50% and 4.75% as of March 31, 2019 and 2018 , respectively, and further limited based on interest income earned by the Mortgage segment. 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 $2,558 and $4,508 for the three months ended March 31, 2019 and 2018 , respectively. |
Minimum capital requirements
Minimum capital requirements | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Minimum capital requirements | 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. Under regulatory guidance for non-advanced approaches institutions, the Bank is required 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, 2019 and December 31, 2018 , the Bank and Company met all capital adequacy requirements to which it is subject. 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, 2019 and December 31, 2018 , the buffer was 2.50% and 1.88% , respectively. The capital conservative buffer was fully phased in on January 1, 2019. 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, 2019 Total Capital (to risk-weighted assets) FB Financial Corporation $ 610,686 13.4 % $ 364,589 8.0 % $ 478,523 10.5 % N/A N/A FirstBank 591,594 13.0 % 364,058 8.0 % 477,826 10.5 % $ 455,072 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 580,872 12.7 % $ 274,428 6.0 % $ 388,773 8.5 % N/A N/A FirstBank 561,780 12.3 % 274,039 6.0 % 388,222 8.5 % $ 365,385 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 580,872 11.5 % $ 202,042 4.0 % N/A N/A N/A N/A FirstBank 561,780 11.1 % 202,443 4.0 % N/A N/A $ 253,054 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 550,872 12.0 % $ 206,577 4.5 % $ 321,342 7.0 % N/A N/A FirstBank 561,780 12.3 % 205,529 4.5 % 319,712 7.0 % $ 296,876 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, 2018 Total Capital (to risk-weighted assets) FB Financial Corporation $ 582,945 13.0 % $ 358,735 8.0 % $ 442,814 9.9 % N/A N/A FirstBank 561,327 12.5 % 359,249 8.0 % 443,448 9.9 % $ 449,062 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 554,013 12.4 % $ 268,071 6.0 % $ 351,843 7.9 % N/A N/A FirstBank 532,395 11.9 % 268,434 6.0 % 352,320 7.9 % $ 357,913 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 554,013 11.4 % $ 194,391 4.0 % N/A N/A N/A N/A FirstBank 532,395 10.9 % 195,374 4.0 % N/A N/A $ 244,218 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 524,013 11.7 % $ 201,543 4.5 % $ 285,520 6.4 % N/A N/A FirstBank 532,395 11.9 % 201,326 4.5 % 285,212 6.4 % $ 290,804 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company grants restricted stock units under 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. The following table summarizes information about vested and unvested restricted stock units, excluding cash-settled EBI units discussed above, outstanding at March 31, 2019 and 2018: March 31, 2019 2018 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 1,140,215 $ 21.96 1,214,325 $ 19.97 Grants 142,008 34.01 105,429 39.90 Released and distributed (vested) (181,958 ) 24.91 (170,160 ) 21.24 Forfeited/expired (4,343 ) 27.67 (5,556 ) 19.00 Balance at end of period 1,095,922 $ 23.30 1,144,038 $ 21.11 The total fair value of restricted stock units vested and released, excluding cash-settled EBI units, was $4,533 and $3,614 for the three months ended March 31, 2019 and 2018 , respectively. The compensation cost related to stock grants and vesting of restricted stock units, excluding cash-settled EBI units, was $1,638 and $1,958 for the three months ended March 31, 2019 and 2018 , respectively. This included $172 and $177 paid to Company independent directors during the three months ended March 31, 2019 and 2018, respectively, related to independent director grants and compensation elected to be settled in stock. The previous period also includes a one-time expense of $249 related to the modification of vesting terms of certain grants. As of March 31, 2019 and 2018 , there were $12,004 and $15,696 , respectively, of total unrecognized compensation cost related to nonvested stock-settled EBI Units and restricted stock units (excluding cash-settled EBI units discussed above) which is expected to be recognized over a weighted-average period of 2.34 years and 2.78 years, respectively. At March 31, 2019, there was $293 accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying RSUs. 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). During the three months ended March 31, 2019 and 2018 , there were 10,613 shares and 16,537 shares of common stock issued under the ESPP, respectively. As of March 31, 2019 and 2018 , there were 2,421,743 and 2,444,428 shares available for issuance under the ESPP, respectively. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related party transactions | 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, in compliance with regulatory requirements. An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2018 $ 32,264 New loans and advances 1,225 Change in related party status (9,614 ) Repayments (219 ) Loans outstanding at March 31, 2019 $ 23,656 Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $18,382 and $15,000 at March 31, 2019 and December 31, 2018 , respectively. (B) Deposits: The Bank held deposits from related parties totaling $281,119 and $287,156 as of March 31, 2019 and December 31, 2018 , respectively. (C) Leases: The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $111 and $116 in unamortized leasehold improvements related to these leases at March 31, 2019 and December 31, 2018 , respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $129 and $148 for the three months ended March 31, 2019 and 2018 , respectively. (D) Investment securities transactions: The Company holds an investment in a fund that was issued by an entity owned by one of its directors. The balance in the investment was $29 as of March 31, 2019 and December 31, 2018 . (E) Aviation time sharing agreement: Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by certain directors of the Company. This replaces the previous agreement dated December 21, 2012. During the three months ended March 31, 2019 and 2018 , the Company made payments of $27 and $72 , respectively, under these agreements. |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Earnings per common share | Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities, including the Company, are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. |
Leases | Leases The Company leases certain banking, mortgage and operations locations. Effective January 1, 2019, the Company records leases on the balance sheet in the form of a lease liability for the present value of future minimum payments under the lease terms and a right-of-use asset equal to the lease liability adjusted for items such as deferred or prepaid rent, incentive liabilities, leasehold intangibles and any impairment of the right-of-use asset. In determining whether a contract contains a lease, management conducts an analysis at lease inception to ensure an asset was specifically identified and the Company has control of use of the asset. For contracts determined to be leases entered into after January 1, 2019, the Company performs additional analysis to determine whether the lease should be classified as a finance or operating lease. The Company considers a lease to be a finance lease if future minimum lease payments amount to greater than 90% of the asset's fair value or if the lease term is equal to or greater than 75% of the asset's estimated economic useful life. As of March 31, 2019, the Company did not have any leases that were determined to be finance leases. The Company does not record leases on the consolidated balance sheets that are classified as short term (less than one year). Additionally, the Company has not recorded equipment leases or leases in which the Company is the lessor on the consolidated balance sheets as these are not material to the Company. At lease inception, the Company determines the lease term by adding together the minimum lease term and all optional renewal periods that it is reasonably certain to renew. This determination is at management's full discretion and is made through consideration of the asset, market conditions, competition and entity based economic conditions, among other factors. The lease term is used in the economic life test and also to calculate straight-line rent expense. The depreciable life of leasehold improvements is limited by the estimated lease term, including renewals. Operating leases are expensed on a straight-line basis over the life of the lease beginning when the lease commences. Rent expense and variable lease expense are included in Occupancy and equipment expense on the Company's Consolidated statements of income. The Company's variable lease expense include rent escalators that are based on the Consumer Price Index or market conditions and include items such as common area maintenance, utilities, parking, property taxes, insurance and other costs associated with the lease. There are no residual value guarantees or restrictions or covenants imposed by leases that will impact the Company's ability to pay dividends or cause the Company to incur additional expenses. The Company accounts for lease and non-lease components as a single lease component by class of underlying asset. The discount rate used in determining the lease liability is based upon borrowing rates for what would be obtained by the Company for similar loans as an incremental rate as of the date of commencement or renewal. |
Recently adopted accounting principles and Newly issued not yet effective accounting standards | Recently adopted accounting principles: Except as set forth below, the Company did not adopt any new accounting principles that were not disclosed in the Company's 2018 audited consolidated financial statements included on Form 10-K. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The update requires 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 became effective for the Company on January 1, 2019. In July 2018, the FASB issued ASU 2018-10, “Codification Improvements to Topic 842, Leases” and 2018-11, “Leases (Topic 842): Targeted Improvements”. ASU No. 2018-10 provides improvements related to ASU No. 2016-02 to provide corrections or improvements to a number of areas within FASB ASC Topic 842 and provides additional and optional transition method to adopt the new lease standard. ASU No. 2018-11 allows entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU 2018-11 also allows lessors to not separate non-lease components from the associated lease component if certain conditions are met. The amendments in these updates became effective for the Company on January 1, 2019. FB Financial Corporation elected the optional transition method permitted by ASU 2018-11. Under this method, an entity shall recognize and measure leases that exist at the application date and prior comparative periods are not adjusted. Additionally, the Company elected to adopt the practical expedients allowed under the updates and therefore did not reassess 1) whether any expired or existing contract contain leases, 2) the lease classification for any expired or existing leases, or 3) initial direct costs for any existing leases. On January 1, 2019, the Company adopted these updates and recognized a right of use asset ("ROU") and lease liability of $32,545 and $34,876 , respectively, and recorded a cumulative effect adjustment to retained earnings of $1,309 , net of deferred taxes of $461 , in addition to adjustments to leasehold improvements of $1,020 and a reclassification from a previously-recognized lease intangible asset for $459 . The difference between the asset and liability amounts represents lease incentive liabilities, deferred rent and a lease intangible asset that was reclassified to the ROU asset upon adoption. This adoption did not have a significant impact on the Company's consolidated statements of income and did not have an impact on the Company's cash flows. Disclosures required by the update are presented in Note 6, "Leases" in the notes to the consolidated financial statements. 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 were required to prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The adoption of this update did not have an impact on the Company's consolidated financial statements. Newly issued not yet effective accounting standards: 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. The new model will require institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including loans obtained as a result of any acquisition not deemed to be purchased credit deteriorated (PCD). CECL also requires the allowance for credit losses for PCD loans to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense. The disclosure of credit quality indicators related to the amortized cost of financing receivables will be further disaggregated by year of origination (or vintage). Institutions are to apply the changes through a cumulative-effect adjustment to their retained earnings as of the beginning of the first reporting period in which the standard is effective. ASU 2016-13 will become effective for interim and annual periods beginning after December 15, 2019. Management has established a CECL implementation working group, which includes the appropriate members of management to evaluate the impact the adoption of this ASU will have on the Company's financial statements and disclosures and determine the most appropriate method of implementing the amendments in this ASU. The working group has selected a software vendor and is working on identifying data needs for modeling inputs and identifying appropriate modeling methodologies across our loan segments. During 2019, the Company is focused on model completion and finalizing assumptions with parallel processing of our existing allowance for loan losses model with the CECL model targeted for the second half of 2019, depending on how model completion and validation progresses. Management is also working to establish appropriate accounting policies to address new processes and controls under this update. The Company is currently evaluating the impact of this adoption on it’s financial statements and disclosures and currently expects to record a one-time adjustment to retained earnings to increase the allowance for loan losses, however the magnitude of this adjustment cannot currently be reasonably quantified. Management expects to disclose a range estimate of this impact on Form 10-Q for the quarterly period ended September 30, 2019. In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two from the goodwill impairment test. Instead, an entity will perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity will still have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. ASU 2017-04 will become effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted, including in an interim period, for impairment tests performed after January 1, 2017. Management does not expect adoption of this standard to have any impact on the Company's consolidated financial statements or disclosures. In June 2018, FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Consistent with the accounting for employee share-based payment awards, nonemployee share-based payment awards will be measured at grant-date fair value of the equity instruments obligated to be issued when the good has been delivered or the service rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. This ASU is effective for all entities for fiscal years beginnings after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements or disclosures. In August 2018, the FASB issued "Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements." This update is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The new disclosure guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact this change will have on its consolidated financial statements and disclosures. In March 2019, FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements", which align the guidance for fair value of the underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, "Financial Services—Depository and Lending", to present all “principal payments received under leases” within investing activities. The amendments in this update become effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of this change on its consolidated financial statements and disclosures, but it is not expected to have a material impact. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Basic earnings per common share calculation: Net income $ 19,588 $ 19,754 Dividends paid on and undistributed earnings allocated to (105 ) — Earnings attributable to common shareholders $ 19,483 $ 19,754 Weighted-average basic shares outstanding 30,786,684 30,613,284 Basic earnings per common share $ 0.63 $ 0.65 Diluted earnings per common share: Earnings attributable to common shareholders 19,483 19,754 Weighted-average basic shares outstanding 30,786,684 30,613,284 Weighted-average diluted shares contingently issuable 562,514 808,546 Weighted-average diluted shares outstanding 31,349,198 31,421,830 Diluted earnings per common share $ 0.62 $ 0.63 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 are shown below: March 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 1,000 $ — $ (7 ) $ 993 Mortgage-backed securities - residential 516,917 2,407 (7,608 ) 511,716 Municipals, tax exempt 144,142 3,904 (406 ) 147,640 Treasury securities 7,394 — (89 ) 7,305 Total $ 669,453 $ 6,311 $ (8,110 ) $ 667,654 December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 1,000 $ — $ (11 ) $ 989 Mortgage-backed securities - residential 520,654 1,191 (13,265 ) 508,580 Municipals, tax exempt 138,994 1,565 (1,672 ) 138,887 Treasury securities 7,385 — (143 ) 7,242 Total $ 668,033 $ 2,756 $ (15,091 ) $ 655,698 |
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, 2019 December 31, 2018 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 11,682 $ 11,772 $ 15,883 $ 16,028 Due in one to five years 13,498 13,506 13,806 13,740 Due in five to ten years 16,891 16,974 18,539 18,387 Due in over ten years 110,465 113,686 99,151 98,963 152,536 155,938 147,379 147,118 Mortgage-backed securities - residential 516,917 511,716 520,654 508,580 Total debt securities $ 669,453 $ 667,654 $ 668,033 $ 655,698 |
Summary of Sales of Available-for-Sale Securities | Sales of available-for-sale securities were as follows: Three Months Ended March 31, 2019 2018 Proceeds from sales $ 1,758 $ 221 Gross realized gains 1 — Gross realized losses 7 9 |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses at March 31, 2019 and December 31, 2018 , aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2019 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 $ — $ — $ 993 $ (7 ) $ 993 $ (7 ) Mortgage-backed securities - residential 4,913 (10 ) 357,430 (7,598 ) 362,343 (7,608 ) Municipals, tax exempt — — 21,580 (406 ) 21,580 (406 ) Treasury securities — — 7,305 (89 ) 7,305 (89 ) Total $ 4,913 $ (10 ) $ 387,308 $ (8,100 ) $ 392,221 $ (8,110 ) December 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 $ — $ — $ 989 $ (11 ) $ 989 $ (11 ) Mortgage-backed securities - residential 60,347 (478 ) 335,769 (12,787 ) 396,116 (13,265 ) Municipals, tax exempt 27,511 (366 ) 25,343 (1,306 ) 52,854 (1,672 ) Treasury securities — — 7,242 (143 ) 7,242 (143 ) Total $ 87,858 $ (844 ) $ 369,343 $ (14,247 ) $ 457,201 $ (15,091 ) |
Loans and allowance for loan _2
Loans and allowance for loan losses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Outstanding by Major Lending Classification | Loans outstanding at March 31, 2019 and December 31, 2018 , by major lending classification are as follows: March 31, December 31, 2019 2018 Commercial and industrial $ 888,345 $ 867,083 Construction 539,065 556,051 Residential real estate: 1-to-4 family mortgage 552,239 555,815 Residential line of credit 187,415 190,480 Multi-family mortgage 71,532 75,457 Commercial real estate: Owner occupied 499,123 493,524 Non-owner occupied 816,880 700,248 Consumer and other 232,192 228,853 Gross loans 3,786,791 3,667,511 Less: Allowance for loan losses (29,814 ) (28,932 ) Net loans $ 3,756,977 $ 3,638,579 |
Schedule of Changes Value of Accretable Yield of PCI Loans | The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Three Months Ended March 31, 2019 2018 Balance at the beginning of period $ (16,587 ) $ (17,682 ) Principal reductions and other reclassifications from nonaccretable difference 220 (1,294 ) Accretion 2,183 2,201 Changes in expected cash flows (630 ) (180 ) Balance at end of period $ (14,814 ) $ (16,955 ) |
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest | The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three months ended March 31, 2019 and 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 Three Months Ended March 31, 2019 Beginning balance - December 31, 2018 $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 Provision for loan losses 333 28 (65 ) (73 ) (27 ) (121 ) 434 882 1,391 Recoveries of loans previously charged-off 12 1 13 25 — 87 — 224 362 Loans charged off (179 ) — (81 ) (32 ) — — — (579 ) (871 ) Ending balance - March 31, 2019 $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 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 - $ 4,578 $ 7,866 $ 3,122 $ 1,165 $ 449 $ 3,014 $ 2,753 $ 1,459 $ 24,406 |
Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment | The following tables provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 709 $ — $ 136 $ — $ — $ 42 $ 299 $ — $ 1,186 Collectively evaluated for impairment 4,697 9,711 3,027 731 539 3,039 4,068 1,551 27,363 Acquired with deteriorated credit quality 108 47 132 — — 17 216 745 1,265 Ending balance - March 31, 2019 $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 December 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 $ 3 $ — $ 7 $ — $ — $ 53 $ 205 $ — $ 268 Collectively evaluated for impairment 5,247 9,677 3,205 811 566 3,066 3,628 1,583 27,783 Acquired with deteriorated credit quality 98 52 216 — — 13 316 186 881 Ending balance - December 31, 2018 $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 |
Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment | The following tables provides the amount of loans by loan category broken between loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 4,045 $ 1,220 $ 874 $ 605 $ — $ 2,054 $ 6,699 $ 71 $ 15,568 Collectively evaluated for impairment 882,989 533,238 533,293 186,810 71,532 491,093 796,644 213,060 3,708,659 Acquired with deteriorated credit quality 1,311 4,607 18,072 — — 5,976 13,537 19,061 62,564 Ending balance - March 31, 2019 $ 888,345 $ 539,065 $ 552,239 $ 187,415 $ 71,532 $ 499,123 $ 816,880 $ 232,192 $ 3,786,791 December 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 $ 1,847 $ 1,221 $ 987 $ 245 $ — $ 2,608 $ 6,735 $ 73 $ 13,716 Collectively evaluated for impairment 863,788 549,075 535,451 190,235 75,457 484,900 677,247 208,643 3,584,796 Acquired with deteriorated credit quality 1,448 5,755 19,377 — — 6,016 16,266 20,137 68,999 Ending balance - December 31, 2018 $ 867,083 $ 556,051 $ 555,815 $ 190,480 $ 75,457 $ 493,524 $ 700,248 $ 228,853 $ 3,667,511 |
Credit Quality Indicators by Portfolio Class | The following tables show credit quality indicators by portfolio class at March 31, 2019 and December 31, 2018 : March 31, 2019 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 830,017 $ 49,599 $ 7,418 $ 887,034 Construction 528,421 4,717 1,320 534,458 Residential real estate: 1-to-4 family mortgage 519,688 6,046 8,433 534,167 Residential line of credit 183,448 1,337 2,630 187,415 Multi-family mortgage 71,460 72 — 71,532 Commercial real estate: Owner occupied 463,724 15,857 13,566 493,147 Non-owner occupied 785,933 10,301 7,109 803,343 Consumer and other 208,442 2,982 1,707 213,131 Total loans, excluding purchased credit impaired loans $ 3,591,133 $ 90,911 $ 42,183 $ 3,724,227 Purchased credit impaired loans Commercial and industrial $ — $ 828 $ 483 $ 1,311 Construction — 3,719 888 4,607 Residential real estate: 1-to-4 family mortgage — 13,644 4,428 18,072 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,080 1,896 5,976 Non-owner occupied — 5,608 7,929 13,537 Consumer and other — 16,122 2,939 19,061 Total purchased credit impaired loans $ — $ 44,001 $ 18,563 $ 62,564 Total loans $ 3,591,133 $ 134,912 $ 60,746 $ 3,786,791 December 31, 2018 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 804,447 $ 52,624 $ 8,564 $ 865,635 Construction 543,953 5,012 1,331 550,296 Residential real estate: 1-to-4 family mortgage 519,541 8,697 8,200 536,438 Residential line of credit 186,753 1,039 2,688 190,480 Multi-family mortgage 75,381 76 — 75,457 Commercial real estate: Owner occupied 456,694 16,765 14,049 487,508 Non-owner occupied 667,447 8,881 7,654 683,982 Consumer and other 204,279 2,763 1,674 208,716 Total loans, excluding purchased credit impaired loans $ 3,458,495 $ 95,857 $ 44,160 $ 3,598,512 Purchased credit impaired loans Commercial and industrial $ — $ 964 $ 484 $ 1,448 Construction — 3,229 2,526 5,755 Residential real estate: 1-to-4 family mortgage — 14,681 4,696 19,377 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,110 1,906 6,016 Non-owner occupied — 8,266 8,000 16,266 Consumer and other — 15,422 4,715 20,137 Total purchased credit impaired loans $ — $ 46,672 $ 22,327 $ 68,999 Total loans $ 3,458,495 $ 142,529 $ 66,487 $ 3,667,511 |
Past Due Loans | The following tables provide the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest and loans current on payments accruing interest by category at March 31, 2019 and December 31, 2018 : March 31, 2019 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 $ 2,998 $ 37 $ 342 $ 883,657 $ 1,311 $ 888,345 Construction 1,014 — 275 533,169 4,607 539,065 Residential real estate: 1-to-4 family mortgage 1,470 648 3,107 528,942 18,072 552,239 Residential line of credit 730 487 973 185,225 — 187,415 Multi-family mortgage — — — 71,532 — 71,532 Commercial real estate: Owner occupied 162 117 1,671 491,197 5,976 499,123 Non-owner occupied 795 57 6,973 795,518 13,537 816,880 Consumer and other 1,875 539 380 210,337 19,061 232,192 Total $ 9,044 $ 1,885 $ 13,721 $ 3,699,577 $ 62,564 $ 3,786,791 December 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 $ 999 $ 65 $ 438 $ 864,133 $ 1,448 $ 867,083 Construction 109 — 283 549,904 5,755 556,051 Residential real estate: 1-to-4 family mortgage 4,919 737 2,704 528,078 19,377 555,815 Residential line of credit 726 957 804 187,993 — 190,480 Multi-family mortgage — — — 75,457 — 75,457 Commercial real estate: Owner occupied 407 197 2,423 484,481 6,016 493,524 Non-owner occupied 61 77 6,885 676,959 16,266 700,248 Consumer and other 1,987 1,008 148 205,573 20,137 228,853 Total $ 9,208 $ 3,041 $ 13,685 $ 3,572,578 $ 68,999 $ 3,667,511 |
Impaired Loans Recognized | Impaired loans recognized in conformity with ASC 310 at March 31, 2019 and December 31, 2018 , segregated by class, were as follows: March 31, 2019 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 3,186 $ 3,186 $ 709 Construction — — — Residential real estate: 1-to-4 family mortgage 405 405 136 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 189 218 42 Non-owner occupied 5,650 5,650 299 Consumer and other — — — Total $ 9,430 $ 9,459 $ 1,186 With no related allowance recorded Commercial and industrial $ 859 $ 1,022 $ — Construction 1,220 1,264 — Residential real estate: 1-to-4 family mortgage 469 779 — Residential line of credit 605 613 — Multi-family mortgage — — — Commercial real estate: Owner occupied 1,865 2,619 — Non-owner occupied 1,049 1,781 — Consumer and other 71 71 — Total $ 6,138 $ 8,149 $ — Total impaired loans $ 15,568 $ 17,608 $ 1,186 December 31, 2018 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 618 $ 732 $ 3 Construction — — — Residential real estate: 1-to-4 family mortgage 145 145 7 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 560 641 53 Non-owner occupied 5,686 5,686 205 Consumer and other — — — Total $ 7,009 $ 7,204 $ 268 With no related allowance recorded: Commercial and industrial $ 1,229 $ 1,281 $ — Construction 1,221 1,262 — Residential real estate: 1-to-4 family mortgage 842 1,151 — Residential line of credit 245 249 — Multi-family mortgage — — — Commercial real estate: Owner occupied 2,048 2,780 — Non-owner occupied 1,049 1,781 — Consumer and other 73 73 — Total $ 6,707 $ 8,577 $ — Total impaired loans $ 13,716 $ 15,781 $ 268 Average recorded investment and interest income on a cash basis recognized during the three months ended March 31, 2019 and 2018 on impaired loans, segregated by class, were as follows: Three months ended March 31, 2019 Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 1,902 $ 38 Construction — — Residential real estate: 1-to-4 family mortgage 275 2 Residential line of credit — — Multi-family mortgage — — Commercial real estate: Owner occupied 375 2 Non-owner occupied 5,668 — Consumer and other — — Total $ 8,220 $ 42 With no related allowance recorded: Commercial and industrial $ 1,044 $ 14 Construction 1,221 48 Residential real estate: 1-to-4 family mortgage 656 8 Residential line of credit 425 2 Multi-family mortgage — — Commercial real estate: Owner occupied 1,957 28 Non-owner occupied 1,049 — Consumer and other 72 2 Total $ 6,424 $ 102 Total impaired loans $ 14,644 $ 144 Three months ended March 31, 2018 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 |
Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the periods indicated: Three Months Ended March 31, 2019 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,188 $ 3,188 $ — Total 2 $ 3,188 $ 3,188 $ — 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: 1-4 family mortgage 1 $ 249 $ 249 — Consumer and other 1 5 5 — Total 2 $ 254 $ 254 $ — |
Other real estate owned (Tables
Other real estate owned (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Summary of Other Real Estate Owned | The following table summarizes the other real estate owned for the three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Balance at beginning of period $ 12,643 $ 16,442 Transfers from loans 1,106 630 Properties sold (716 ) (1,432 ) Loss on sale of other real estate owned (7 ) (43 ) Transferred to loans (166 ) (120 ) Write-downs and partial liquidations (32 ) (143 ) Balance at end of period $ 12,828 $ 15,334 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | Information related to the Company's operating leases is presented below: March 31, 2019 Right-of-use assets $ 32,694 Lease liabilities 35,093 Weighted average remaining lease term (in years) 15.65 Weighted average discount rate 3.48 % The components of lease expense included in Occupancy and equipment expense were as follows: Three Months Ended March 31, 2019 Operating lease cost $ 1,112 Short-term lease cost 224 Variable lease cost 100 Total lease cost $ 1,436 |
Lessee, Operating Lease, Liability, Maturity | A maturity analysis of operating lease liabilities and a reconciliation of undiscounted cash flows to the total operating lease liability is as follows: March 31, 2019 Lease payments due on or before: March 31, 2020 $ 4,670 March 31, 2021 4,604 March 31, 2022 4,308 March 31, 2023 3,332 March 31, 2024 3,176 Thereafter 27,065 Total undiscounted cash flows 47,155 Discount on cash flows (12,062 ) Total lease liability $ 35,093 |
Mortgage servicing rights (Tabl
Mortgage servicing rights (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 and 2018 : Three Months Ended March 31, 2019 2018 Carrying value at beginning of period $ 88,829 $ 76,107 Capitalization 8,720 13,510 Sales (29,160 ) — Change in fair value: Due to pay-offs/pay-downs (1,795 ) (3,060 ) Due to change in valuation inputs or assumptions (2,563 ) 6,603 Carrying value at period end $ 64,031 $ 93,160 |
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, 2019 and 2018 , respectively: Three Months Ended March 31, 2019 2018 Servicing income: Servicing income $ 4,751 $ 4,793 Change in fair value of mortgage servicing rights (4,358 ) 3,543 Change in fair value of derivative hedging instruments 2,477 (5,256 ) Servicing income 2,870 3,080 Servicing expenses 1,744 1,795 Net servicing income $ 1,126 $ 1,285 |
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, 2019 and December 31, 2018 are as follows: March 31, December 31, 2019 2018 Unpaid principal balance $ 5,221,109 $ 6,755,114 Weighted-average prepayment speed (CPR) 9.83 % 8.58 % Estimated impact on fair value of a 10% increase $ (2,493 ) $ (2,072 ) Estimated impact on fair value of a 20% increase $ (4,813 ) $ (4,006 ) Discount rate 8.99 % 10.45 % Estimated impact on fair value of a 100 bp increase $ (2,701 ) $ (2,505 ) Estimated impact on fair value of a 200 bp increase $ (5,181 ) $ (4,807 ) Weighted-average coupon interest rate 4.42 % 4.21 % Weighted-average servicing fee (basis points) 29 30 Weighted-average remaining maturity (in months) 319 325 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | llocation of federal and state income taxes between current and deferred portions is presented below: For the three months ended March 31, 2019 2018 Current $ 10,194 $ — Deferred (4,219 ) 5,482 Total $ 5,975 $ 5,482 |
Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes | Federal income tax expense differs from the statutory federal rate of 21% for the three months ended March 31, 2019 and 2018 due to the following: For the three months ended March 31, 2019 2018 Federal taxes calculated at statutory rate $ 5,368 21.0 % $ 5,300 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,138 4.5 % 1,143 4.5 % Benefit of equity based compensation (392 ) (1.5 )% (736 ) (3.0 )% Municipal interest income, net of interest disallowance (216 ) (0.8 )% (201 ) (0.8 )% Bank owned life insurance (12 ) — % (12 ) — % Other 89 0.2 % (12 ) — % Income tax expense, as reported $ 5,975 23.4 % $ 5,482 21.7 % |
Schedule of Net Deferred Tax liability | The components of the net deferred tax liability at March 31, 2019 and December 31, 2018 , are as follows: March 31, December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 7,768 $ 7,539 Operating lease liability 9,079 — Amortization of core deposit intangible 1,060 1,012 Deferred compensation 3,802 5,878 Unrealized loss on available-for-sale debt securities 558 3,299 Other 2,012 1,998 Subtotal 24,279 19,726 Deferred tax liabilities: FHLB stock dividends (550 ) (550 ) Operating lease - right of use asset (8,826 ) — Depreciation (4,777 ) (4,812 ) Cash flow hedges (586 ) (736 ) Mortgage servicing rights (16,684 ) (23,146 ) Other (7,904 ) (7,145 ) Subtotal (39,327 ) (36,389 ) Net deferred tax liability $ (15,048 ) $ (16,663 ) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial instruments with Off-Balance Sheet Credit Risk | 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, 2019 2018 Commitments to extend credit, excluding interest rate lock commitments $ 1,111,472 $ 1,032,390 Letters of credit 18,762 19,024 Balance at end of period $ 1,130,234 $ 1,051,414 |
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 2019 2018 Balance at beginning of period $ 3,273 $ 3,386 Provision for loan repurchases or indemnifications 59 186 Recoveries on previous losses — (58 ) Balance at end of period $ 3,332 $ 3,514 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following table provides details on the Company’s derivative financial instruments as of the dates presented: March 31, 2019 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 346,545 $ 9,073 $ 9,073 Forward commitments 599,205 — 3,327 Interest rate-lock commitments 492,507 8,121 — Futures contracts 178,000 1,456 — Option contracts 8,600 78 — Total $ 1,624,857 $ 18,728 $ 12,400 December 31, 2018 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 295,333 $ 6,679 $ 6,679 Forward commitments 474,208 — 4,958 Interest rate-lock commitments 318,706 6,241 — Futures contracts 166,000 649 — Options contracts 3,800 26 — Total $ 1,258,047 $ 13,595 $ 11,637 March 31, 2019 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 274 $ — December 31, 2018 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ 721 $ — |
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, 2019 2018 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 1,880 $ 3,411 Forward commitments (4,404 ) 5,318 Futures contracts 1,871 (2,447 ) Option contracts 13 43 Total $ (640 ) $ 6,325 Three Months Ended March 31, 2019 2018 Designated as hedging: Amount of gain (loss) reclassified from other comprehensive $ 94 $ (3 ) Gain (loss) included in interest expense on borrowings 55 (29 ) Total $ 149 $ (32 ) The following 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, 2019 2018 Designated as hedging: Amount of (loss) gain recognized in other comprehensive income, net of tax $ (331 ) $ 1,271 |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair 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. Fair Value March 31, 2019 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 195,414 $ 195,414 $ — $ — $ 195,414 Investment securities 670,835 — 670,835 — 670,835 Loans, net 3,756,977 — — 3,746,515 3,746,515 Loans held for sale 248,054 — 248,054 — 248,054 Interest receivable 16,611 — 3,114 13,497 16,611 Mortgage servicing rights 64,031 — — 64,031 64,031 Derivatives 19,002 — 19,002 — 19,002 Financial liabilities: Deposits: Without stated maturities $ 3,159,931 $ 3,159,931 $ — $ — $ 3,159,931 With stated maturities 1,143,260 — 1,147,498 — 1,147,498 Securities sold under agreement to 36,695 36,695 — — 36,695 Federal Home Loan Bank advances 161,553 — 161,654 — 161,654 Subordinated debt 30,930 — 30,000 — 30,000 Interest payable 7,112 294 6,818 — 7,112 Derivatives 12,400 — 12,400 — 12,400 Fair Value December 31, 2018 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 125,356 $ 125,356 $ — $ — $ 125,356 Investment securities 658,805 — 658,805 — 658,805 Loans, net 3,638,579 — — 3,630,500 3,630,500 Loans held for sale 278,815 — 278,815 — 278,815 Interest receivable 14,503 — 2,848 11,655 14,503 Mortgage servicing rights 88,829 — — 88,829 88,829 Derivatives 14,316 — 14,316 — 14,316 Financial liabilities: Deposits: Without stated maturities $ 3,051,972 $ 3,051,972 $ — $ — $ 3,051,972 With stated maturities 1,119,745 — 1,122,076 — 1,122,076 Securities sold under agreement to 15,081 15,081 — — 15,081 Federal Home Loan Bank advances 181,765 — 181,864 — 181,864 Subordinated debt 30,930 — 30,000 — 30,000 Interest payable 5,015 530 4,485 — 5,015 Derivatives 11,637 — 11,637 — 11,637 |
Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2018 are presented in the following table: At December 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: Available-for-sale securities: U.S. government agency securities $ — $ 989 $ — $ 989 Mortgage-backed securities — 508,580 — 508,580 Municipals, tax-exempt — 138,887 — 138,887 Treasury securities — 7,242 — 7,242 Equity securities — 3,107 — 3,107 Total $ — $ 658,805 $ — $ 658,805 Loans held for sale $ — $ 278,815 $ — $ 278,815 Mortgage servicing rights — — 88,829 88,829 Derivatives — 14,316 — 14,316 Financial Liabilities: Derivatives — 11,637 — 11,637 The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2019 are presented in the following table: March 31, 2019 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 $ — $ 993 $ — $ 993 Mortgage-backed securities — 511,716 — 511,716 Municipals, tax-exempt — 147,640 — 147,640 Treasury securities — 7,305 — 7,305 Equity securities — 3,181 — 3,181 Total $ — $ 670,835 $ — $ 670,835 Loans held for sale $ — $ 248,054 $ — $ 248,054 Mortgage servicing rights — — 64,031 64,031 Derivatives — 19,002 — 19,002 Financial Liabilities: Derivatives — 12,400 — 12,400 |
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, 2019 are presented in the following table: At March 31, 2019 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 $ — $ — $ 1,147 $ 1,147 Impaired loans (1) : Commercial and industrial $ — $ — $ 3,186 $ 3,186 Construction — — 6 6 Residential real estate: 1-4 family mortgage — — 260 260 Commercial real estate: Owner occupied — — 272 272 Non-owner occupied — — — — Consumer and other — — — — Total $ — $ — $ 3,724 $ 3,724 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2018 are presented in the following table: At December 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 $ — $ — $ 2,266 $ 2,266 Impaired Loans (1) : Commercial and industrial $ — $ — $ 732 $ 732 Construction — — 832 832 Residential real estate: 1-4 family mortgage — — 146 146 Commercial real estate: Owner occupied — — 87 87 Non-owner occupied — — 6,921 6,921 Total $ — $ — $ 8,718 $ 8,718 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. |
Reconciliation for Assets and Liabilities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs | The following table provides a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three months ended March 31, 2019 and 2018 : Available-for-sale securities Three Months Ended March 31, 2019 2018 Balance at beginning of period $ — $ 3,604 Reclassification of equity securities without a readily determinable fair value to other assets — (3,604 ) Balance at end of period $ — $ — |
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, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of inputs Impaired loans (1) $ 3,724 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 1,147 Appraised value of property less costs to sell Discount for costs to sell 0%-15% (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. The following table presents information as of December 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 Value Valuation technique Significant Unobservable inputs Range of inputs Impaired loans (1) $ 8,718 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 2,266 Appraised value of property less costs to sell Discount for costs to sell 0%-15% (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. |
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, 2019 and December 31, 2018 : March 31, 2019 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 247,858 $ 238,554 $ 9,304 Past due loans of 90 days or more — — — Nonaccrual loans 196 196 — December 31, 2018 Mortgage loans held for sale measured at fair value $ 278,418 $ 267,907 $ 10,511 Past due loans of 90 days or more — — — Nonaccrual loans 397 397 — |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provides segment financial information for the three months ended March 31, 2019 and 2018 as follows: Three Months Ended March 31, 2019 Banking Mortgage Consolidated Net interest income $ 52,993 $ 23 $ 53,016 Provision for loan loss 1,391 — 1,391 Mortgage banking income 4,386 18,516 22,902 Change in fair value of mortgage servicing rights, net of hedging (1) — (1,881 ) (1,881 ) Other noninterest income 8,018 — 8,018 Depreciation 1,042 130 1,172 Amortization of intangibles 729 — 729 Other noninterest mortgage banking expense 2,831 17,356 20,187 Other noninterest expense (2) 31,959 1,054 33,013 Income before income taxes 27,445 (1,882 ) 25,563 Income tax expense 5,975 Net income $ 19,588 Total assets $ 4,987,744 $ 347,412 $ 5,335,156 Goodwill 137,090 100 137,190 (1) Included in mortgage banking income. (2) Included $621 in merger and conversion expenses in banking segment related to the ACBI branch acquisition and $1,054 in mortgage segment related to mortgage business restructuring charges. 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, net of hedging (1) — (1,713 ) (1,713 ) Other noninterest income 6,804 — 6,804 Depreciation and amortization 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. (2) Included $1,193 in merger and conversion expenses. |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 Total Capital (to risk-weighted assets) FB Financial Corporation $ 610,686 13.4 % $ 364,589 8.0 % $ 478,523 10.5 % N/A N/A FirstBank 591,594 13.0 % 364,058 8.0 % 477,826 10.5 % $ 455,072 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 580,872 12.7 % $ 274,428 6.0 % $ 388,773 8.5 % N/A N/A FirstBank 561,780 12.3 % 274,039 6.0 % 388,222 8.5 % $ 365,385 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 580,872 11.5 % $ 202,042 4.0 % N/A N/A N/A N/A FirstBank 561,780 11.1 % 202,443 4.0 % N/A N/A $ 253,054 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 550,872 12.0 % $ 206,577 4.5 % $ 321,342 7.0 % N/A N/A FirstBank 561,780 12.3 % 205,529 4.5 % 319,712 7.0 % $ 296,876 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, 2018 Total Capital (to risk-weighted assets) FB Financial Corporation $ 582,945 13.0 % $ 358,735 8.0 % $ 442,814 9.9 % N/A N/A FirstBank 561,327 12.5 % 359,249 8.0 % 443,448 9.9 % $ 449,062 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 554,013 12.4 % $ 268,071 6.0 % $ 351,843 7.9 % N/A N/A FirstBank 532,395 11.9 % 268,434 6.0 % 352,320 7.9 % $ 357,913 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 554,013 11.4 % $ 194,391 4.0 % N/A N/A N/A N/A FirstBank 532,395 10.9 % 195,374 4.0 % N/A N/A $ 244,218 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 524,013 11.7 % $ 201,543 4.5 % $ 285,520 6.4 % N/A N/A FirstBank 532,395 11.9 % 201,326 4.5 % 285,212 6.4 % $ 290,804 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based 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, 2019 and 2018: March 31, 2019 2018 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 1,140,215 $ 21.96 1,214,325 $ 19.97 Grants 142,008 34.01 105,429 39.90 Released and distributed (vested) (181,958 ) 24.91 (170,160 ) 21.24 Forfeited/expired (4,343 ) 27.67 (5,556 ) 19.00 Balance at end of period 1,095,922 $ 23.30 1,144,038 $ 21.11 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 $ 32,264 New loans and advances 1,225 Change in related party status (9,614 ) Repayments (219 ) Loans outstanding at March 31, 2019 $ 23,656 |
Basis of presentation - Additio
Basis of presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | May 16, 2019USD ($) | Apr. 18, 2019$ / shares | Apr. 05, 2019branch | Mar. 31, 2019USD ($)branch$ / shares | Jun. 30, 2018shares | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2018USD ($) |
Class of Stock [Line Items] | ||||||||
Number of full-service branches | branch | 56 | |||||||
Cash dividends declared (USD per share) | $ / shares | $ 0.08 | |||||||
Operating lease right-of-use assets | $ 32,694 | $ 0 | ||||||
Operating lease liabilities | 35,093 | 0 | ||||||
Cumulative effect of new accounting principal | $ (1,309) | $ 0 | ||||||
Leasehold improvements | 87,013 | 86,882 | ||||||
Finite lived intangible assets | $ 10,439 | $ 11,628 | ||||||
Accounting Standards Update 2016-02 | ||||||||
Class of Stock [Line Items] | ||||||||
Operating lease right-of-use assets | 32,545 | |||||||
Operating lease liabilities | 34,876 | |||||||
Secondary Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock sold and issued, shares (in shares) | shares | 3,680,000 | |||||||
Retained earnings | ||||||||
Class of Stock [Line Items] | ||||||||
Cumulative effect of new accounting principal | (1,309) | $ (109) | ||||||
Retained earnings | Accounting Standards Update 2016-02 | ||||||||
Class of Stock [Line Items] | ||||||||
Cumulative effect of new accounting principal | (1,309) | |||||||
Cumulative effect of new accounting principle in period of adoption, net of deferred taxes | 461 | |||||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Cash dividends declared (USD per share) | $ / shares | $ 0.08 | |||||||
Dividends declared | $ 2,557 | |||||||
Subsequent Event | Atlantic Capital Bank | TENNESSEE | ||||||||
Class of Stock [Line Items] | ||||||||
Number of branches acquired | branch | 11 | |||||||
Subsequent Event | Atlantic Capital Bank | GEORGIA | ||||||||
Class of Stock [Line Items] | ||||||||
Number of branches acquired | branch | 3 | |||||||
James W. Ayers | ||||||||
Class of Stock [Line Items] | ||||||||
Percentage of voting power (less than) | 50.00% | |||||||
Lease Agreements | Accounting Standards Update 2016-02 | ||||||||
Class of Stock [Line Items] | ||||||||
Finite lived intangible assets | (459) | |||||||
Leasehold improvements | Accounting Standards Update 2016-02 | ||||||||
Class of Stock [Line Items] | ||||||||
Leasehold improvements | $ 1,020 |
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, 2019 | Mar. 31, 2018 | |
Basic earnings per common share calculation: | ||
Net income | $ 19,588 | $ 19,754 |
Dividends paid on and undistributed earnings allocated to participating securities | (105) | 0 |
Earnings attributable to common shareholders | $ 19,483 | $ 19,754 |
Weighted-average basic shares outstanding (in shares) | 30,786,684 | 30,613,284 |
Basic earnings per common share (in dollars per share) | $ 0.63 | $ 0.65 |
Diluted earnings per common share: | ||
Earnings attributable to common shareholders | $ 19,483 | $ 19,754 |
Weighted-average basic shares outstanding (in shares) | 30,786,684 | 30,613,284 |
Weighted-average diluted shares contingently issuable (in shares) | 562,514 | 808,546 |
Weighted-average diluted shares outstanding (in shares) | 31,349,198 | 31,421,830 |
Diluted earnings per common share (in dollars per share) | $ 0.62 | $ 0.63 |
Mergers and acquisitions - Atla
Mergers and acquisitions - Atlantic Capital Bank Narrative (Details) $ in Thousands | Apr. 05, 2019USD ($)branch | Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||
Merger related expenses | $ 621 | $ 1,193 | |
Subsequent Event | Atlantic Capital Bank | |||
Business Acquisition [Line Items] | |||
Deposits assumed in acquisition | $ 598,000 | ||
Loans | $ 385,000 | ||
Percent of book value for acquired loans | 99.32% | ||
Deposit premium percentage | 6.25% | ||
Subsequent Event | TENNESSEE | Atlantic Capital Bank | |||
Business Acquisition [Line Items] | |||
Number of branches acquired | branch | 11 | ||
Subsequent Event | GEORGIA | Atlantic Capital Bank | |||
Business Acquisition [Line Items] | |||
Number of branches acquired | branch | 3 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 669,453 | $ 668,033 |
Gross unrealized gains | 6,311 | 2,756 |
Gross unrealized losses | (8,110) | (15,091) |
Fair Value | 667,654 | 655,698 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,000 | 1,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (7) | (11) |
Fair Value | 993 | 989 |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 516,917 | 520,654 |
Gross unrealized gains | 2,407 | 1,191 |
Gross unrealized losses | (7,608) | (13,265) |
Fair Value | 511,716 | 508,580 |
Municipals, tax exempt | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 144,142 | 138,994 |
Gross unrealized gains | 3,904 | 1,565 |
Gross unrealized losses | (406) | (1,672) |
Fair Value | 147,640 | 138,887 |
Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 7,394 | 7,385 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (89) | (143) |
Fair Value | $ 7,305 | $ 7,242 |
Investment securities - Narrati
Investment securities - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Equity securities, at fair value | $ 3,181,000 | $ 3,107,000 | |
Net gains (losses) on marketable equity securities | $ 49,000 | $ (38,000) | |
Number of securities in securities portfolio | security | 353 | 360 | |
Number of securities in securities portfolio, unrealized loss position | security | 116 | 174 | |
Other than temporary impairment | $ 0 | $ 0 | |
Trade Date Payables | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Available-for-sale securities | 2,524,000 | $ 2,120,000 | |
Collateral Pledged | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Securities pledged | $ 330,966,000 | $ 326,215,000 |
Investment securities - Schedul
Investment securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized cost | ||
Amortized cost, due in one year or less | $ 11,682 | $ 15,883 |
Amortized costs, due in one to five years | 13,498 | 13,806 |
Amortized cost, due in five to ten years | 16,891 | 18,539 |
Amortized cost, due in over ten years | 110,465 | 99,151 |
Amortized cost, total | 152,536 | 147,379 |
Mortgage-backed securities - residential, amortized cost | 516,917 | 520,654 |
Amortized cost | 669,453 | 668,033 |
Fair value | ||
Fair value, due in one year or less | 11,772 | 16,028 |
Fair value, due in one to five years | 13,506 | 13,740 |
Fair value, due in five to ten years | 16,974 | 18,387 |
Fair value, due in over ten years | 113,686 | 98,963 |
Fair value, total | 155,938 | 147,118 |
Mortgage-backed securities - residential, fair value | 511,716 | 508,580 |
Total debt securities, Fair value | $ 667,654 | $ 655,698 |
Investment securities - Summa_2
Investment securities - Summary of Sales of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Sales | $ 1,758 | $ 221 |
Gross realized gains | 1 | 0 |
Gross realized losses | $ 7 | $ 9 |
Investment securities - Sched_2
Investment securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | $ 4,913 | $ 87,858 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (10) | (844) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 387,308 | 369,343 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (8,100) | (14,247) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 392,221 | 457,201 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (8,110) | (15,091) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 993 | 989 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (7) | (11) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 993 | 989 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (7) | (11) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 4,913 | 60,347 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (10) | (478) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 357,430 | 335,769 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (7,598) | (12,787) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 362,343 | 396,116 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (7,608) | (13,265) |
Municipals, tax exempt | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 0 | 27,511 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | 0 | (366) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 21,580 | 25,343 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (406) | (1,306) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 21,580 | 52,854 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (406) | (1,672) |
Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 7,305 | 7,242 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | (89) | (143) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 7,305 | 7,242 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ (89) | $ (143) |
Loans and allowance for loan _3
Loans and allowance for loan losses- Loans Outstanding by Major Lending Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | $ 3,786,791 | $ 3,667,511 | ||
Less: Allowance for loan losses | (29,814) | (28,932) | $ (24,406) | $ (24,041) |
Net loans | 3,756,977 | 3,638,579 | ||
Commercial and industrial | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 888,345 | 867,083 | ||
Less: Allowance for loan losses | (5,514) | (5,348) | (4,578) | (4,461) |
Construction | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 539,065 | 556,051 | ||
Less: Allowance for loan losses | (9,758) | (9,729) | (7,866) | (7,135) |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 552,239 | 555,815 | ||
Less: Allowance for loan losses | (3,295) | (3,428) | (3,122) | (3,197) |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 187,415 | 190,480 | ||
Less: Allowance for loan losses | (731) | (811) | (1,165) | (944) |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 71,532 | 75,457 | ||
Less: Allowance for loan losses | (539) | (566) | (449) | (434) |
Commercial real estate: | Owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 499,123 | 493,524 | ||
Less: Allowance for loan losses | (3,098) | (3,132) | (3,014) | (3,558) |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 816,880 | 700,248 | ||
Less: Allowance for loan losses | (4,583) | (4,149) | (2,753) | (2,817) |
Consumer and other | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Gross loans | 232,192 | 228,853 | ||
Less: Allowance for loan losses | $ (2,296) | $ (1,769) | $ (1,459) | $ (1,495) |
Loans and allowance for loan _4
Loans and allowance for loan losses - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Carrying value of PCI loans | $ 62,564,000 | $ 68,999,000 | |
Accretion of interest income | 1,831,000 | $ 1,687,000 | |
Non-accrual loans | 2,568,000 | 2,703,000 | |
Recorded investment in troubled debt restructurings | 8,953,000 | 6,794,000 | |
Allocation to specific reserves | 63,000 | 63,000 | |
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 | 62,564,000 | 68,999,000 | |
Purchase accounting liquidity discount | 2,093,000 | 2,436,000 | |
Purchase accounting non accretable credit discount | 3,480,000 | 4,355,000 | |
Accretion of interest income | 2,183,000 | 2,201,000 | |
Total purchase accounting contribution through accretion for purchased loans | 1,831,000 | $ 1,687,000 | |
Non-accrual loans | 0 | 0 | |
Non-Purchased Credit Impaired | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Purchase accounting liquidity discount | 1,907,000 | 2,197,000 | |
Purchase accounting accretable credit discount | 7,025,000 | 7,527,000 | |
Federal Reserve | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Pledged loans to the Federal Reserve Bank | 1,365,193,000 | 1,336,092,000 | |
Residential Mortgage Loans | Federal Home Loan Bank of Cincinnati | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Pledge loans for Federal Home Loan Bank Debt | 681,154,000 | 618,976,000 | |
Commercial Loan | Federal Home Loan Bank of Cincinnati | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Pledge loans for Federal Home Loan Bank Debt | $ 439,831,000 | $ 608,735,000 |
Loans and allowance for loan _5
Loans and allowance for loan losses - Changes in Value of Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Accretion | $ 1,831 | $ 1,687 |
Purchased Credit Impaired | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at the beginning of period | (16,587) | (17,682) |
Principal reductions and other reclassifications from nonaccretable difference | (220) | 1,294 |
Accretion | 2,183 | 2,201 |
Changes in expected cash flows | (630) | (180) |
Balance at end of period | $ (14,814) | $ (16,955) |
Loans and allowance for loan _6
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, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 28,932 | $ 24,041 |
Provision for loan losses | 1,391 | 317 |
Recoveries of loans previously charged-off | 362 | 709 |
Loans charged off | (871) | (661) |
Ending balance | 29,814 | 24,406 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 5,348 | 4,461 |
Provision for loan losses | 333 | 202 |
Recoveries of loans previously charged-off | 12 | 135 |
Loans charged off | (179) | (220) |
Ending balance | 5,514 | 4,578 |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 9,729 | 7,135 |
Provision for loan losses | 28 | 479 |
Recoveries of loans previously charged-off | 1 | 252 |
Loans charged off | 0 | 0 |
Ending balance | 9,758 | 7,866 |
Residential real estate: | 1-to-4 family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 3,428 | 3,197 |
Provision for loan losses | (65) | (30) |
Recoveries of loans previously charged-off | 13 | 15 |
Loans charged off | (81) | (60) |
Ending balance | 3,295 | 3,122 |
Residential real estate: | Residential line of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 811 | 944 |
Provision for loan losses | (73) | 214 |
Recoveries of loans previously charged-off | 25 | 27 |
Loans charged off | (32) | (20) |
Ending balance | 731 | 1,165 |
Residential real estate: | Multi-family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 566 | 434 |
Provision for loan losses | (27) | 15 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Ending balance | 539 | 449 |
Commercial real estate: | Owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 3,132 | 3,558 |
Provision for loan losses | (121) | (567) |
Recoveries of loans previously charged-off | 87 | 23 |
Loans charged off | 0 | 0 |
Ending balance | 3,098 | 3,014 |
Commercial real estate: | Non-owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 4,149 | 2,817 |
Provision for loan losses | 434 | (115) |
Recoveries of loans previously charged-off | 0 | 51 |
Loans charged off | 0 | 0 |
Ending balance | 4,583 | 2,753 |
Consumer and other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 1,769 | 1,495 |
Provision for loan losses | 882 | 119 |
Recoveries of loans previously charged-off | 224 | 206 |
Loans charged off | (579) | (361) |
Ending balance | $ 2,296 | $ 1,459 |
Loans and allowance for loan _7
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, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | $ 1,186 | $ 268 | ||
Collectively evaluated for impairment | 27,363 | 27,783 | ||
Acquired with deteriorated credit quality | 1,265 | 881 | ||
Ending balance | 29,814 | 28,932 | $ 24,406 | $ 24,041 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 709 | 3 | ||
Collectively evaluated for impairment | 4,697 | 5,247 | ||
Acquired with deteriorated credit quality | 108 | 98 | ||
Ending balance | 5,514 | 5,348 | 4,578 | 4,461 |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 9,711 | 9,677 | ||
Acquired with deteriorated credit quality | 47 | 52 | ||
Ending balance | 9,758 | 9,729 | 7,866 | 7,135 |
Residential real estate: | 1-to-4 family mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 136 | 7 | ||
Collectively evaluated for impairment | 3,027 | 3,205 | ||
Acquired with deteriorated credit quality | 132 | 216 | ||
Ending balance | 3,295 | 3,428 | 3,122 | 3,197 |
Residential real estate: | Residential line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 731 | 811 | ||
Acquired with deteriorated credit quality | 0 | 0 | ||
Ending balance | 731 | 811 | 1,165 | 944 |
Residential real estate: | Multi-family mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 539 | 566 | ||
Acquired with deteriorated credit quality | 0 | 0 | ||
Ending balance | 539 | 566 | 449 | 434 |
Commercial real estate: | Owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 42 | 53 | ||
Collectively evaluated for impairment | 3,039 | 3,066 | ||
Acquired with deteriorated credit quality | 17 | 13 | ||
Ending balance | 3,098 | 3,132 | 3,014 | 3,558 |
Commercial real estate: | Non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 299 | 205 | ||
Collectively evaluated for impairment | 4,068 | 3,628 | ||
Acquired with deteriorated credit quality | 216 | 316 | ||
Ending balance | 4,583 | 4,149 | 2,753 | 2,817 |
Consumer and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 1,551 | 1,583 | ||
Acquired with deteriorated credit quality | 745 | 186 | ||
Ending balance | $ 2,296 | $ 1,769 | $ 1,459 | $ 1,495 |
Loans and allowance for loan _8
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, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | $ 15,568 | $ 13,716 |
Collectively evaluated for impairment | 3,708,659 | 3,584,796 |
Acquired with deteriorated credit quality | 62,564 | 68,999 |
Loans | 3,786,791 | 3,667,511 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 4,045 | 1,847 |
Collectively evaluated for impairment | 882,989 | 863,788 |
Acquired with deteriorated credit quality | 1,311 | 1,448 |
Loans | 888,345 | 867,083 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 1,220 | 1,221 |
Collectively evaluated for impairment | 533,238 | 549,075 |
Acquired with deteriorated credit quality | 4,607 | 5,755 |
Loans | 539,065 | 556,051 |
Residential real estate: | 1-to-4 family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 874 | 987 |
Collectively evaluated for impairment | 533,293 | 535,451 |
Acquired with deteriorated credit quality | 18,072 | 19,377 |
Loans | 552,239 | 555,815 |
Residential real estate: | Residential line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 605 | 245 |
Collectively evaluated for impairment | 186,810 | 190,235 |
Acquired with deteriorated credit quality | 0 | 0 |
Loans | 187,415 | 190,480 |
Residential real estate: | Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 71,532 | 75,457 |
Acquired with deteriorated credit quality | 0 | 0 |
Loans | 71,532 | 75,457 |
Commercial real estate: | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 2,054 | 2,608 |
Collectively evaluated for impairment | 491,093 | 484,900 |
Acquired with deteriorated credit quality | 5,976 | 6,016 |
Loans | 499,123 | 493,524 |
Commercial real estate: | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 6,699 | 6,735 |
Collectively evaluated for impairment | 796,644 | 677,247 |
Acquired with deteriorated credit quality | 13,537 | 16,266 |
Loans | 816,880 | 700,248 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 71 | 73 |
Collectively evaluated for impairment | 213,060 | 208,643 |
Acquired with deteriorated credit quality | 19,061 | 20,137 |
Loans | $ 232,192 | $ 228,853 |
Loans and allowance for loan _9
Loans and allowance for loan losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | $ 3,724,227 | $ 3,598,512 |
Purchased credit impaired loans | 62,564 | 68,999 |
Loans | 3,786,791 | 3,667,511 |
Pass | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 3,591,133 | 3,458,495 |
Purchased credit impaired loans | 0 | 0 |
Loans | 3,591,133 | 3,458,495 |
Watch | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 90,911 | 95,857 |
Purchased credit impaired loans | 44,001 | 46,672 |
Loans | 134,912 | 142,529 |
Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 42,183 | 44,160 |
Purchased credit impaired loans | 18,563 | 22,327 |
Loans | 60,746 | 66,487 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 887,034 | 865,635 |
Purchased credit impaired loans | 1,311 | 1,448 |
Loans | 888,345 | 867,083 |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 830,017 | 804,447 |
Purchased credit impaired loans | 0 | 0 |
Commercial and industrial | Watch | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 49,599 | 52,624 |
Purchased credit impaired loans | 828 | 964 |
Commercial and industrial | Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 7,418 | 8,564 |
Purchased credit impaired loans | 483 | 484 |
Construction | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 534,458 | 550,296 |
Purchased credit impaired loans | 4,607 | 5,755 |
Loans | 539,065 | 556,051 |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 528,421 | 543,953 |
Purchased credit impaired loans | 0 | 0 |
Construction | Watch | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 4,717 | 5,012 |
Purchased credit impaired loans | 3,719 | 3,229 |
Construction | Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,320 | 1,331 |
Purchased credit impaired loans | 888 | 2,526 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 534,167 | 536,438 |
Purchased credit impaired loans | 18,072 | 19,377 |
Loans | 552,239 | 555,815 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 187,415 | 190,480 |
Purchased credit impaired loans | 0 | 0 |
Loans | 187,415 | 190,480 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 71,532 | 75,457 |
Purchased credit impaired loans | 0 | 0 |
Loans | 71,532 | 75,457 |
Residential real estate: | Pass | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 519,688 | 519,541 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Pass | Residential line of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 183,448 | 186,753 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Pass | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 71,460 | 75,381 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Watch | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 6,046 | 8,697 |
Purchased credit impaired loans | 13,644 | 14,681 |
Residential real estate: | Watch | Residential line of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,337 | 1,039 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Watch | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 72 | 76 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Substandard | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 8,433 | 8,200 |
Purchased credit impaired loans | 4,428 | 4,696 |
Residential real estate: | Substandard | Residential line of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 2,630 | 2,688 |
Purchased credit impaired loans | 0 | 0 |
Residential real estate: | Substandard | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 0 | 0 |
Purchased credit impaired loans | 0 | 0 |
Commercial real estate: | Owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 493,147 | 487,508 |
Purchased credit impaired loans | 5,976 | 6,016 |
Loans | 499,123 | 493,524 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 803,343 | 683,982 |
Purchased credit impaired loans | 13,537 | 16,266 |
Loans | 816,880 | 700,248 |
Commercial real estate: | Pass | Owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 463,724 | 456,694 |
Purchased credit impaired loans | 0 | 0 |
Commercial real estate: | Pass | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 785,933 | 667,447 |
Purchased credit impaired loans | 0 | 0 |
Commercial real estate: | Watch | Owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 15,857 | 16,765 |
Purchased credit impaired loans | 4,080 | 4,110 |
Commercial real estate: | Watch | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 10,301 | 8,881 |
Purchased credit impaired loans | 5,608 | 8,266 |
Commercial real estate: | Substandard | Owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 13,566 | 14,049 |
Purchased credit impaired loans | 1,896 | 1,906 |
Commercial real estate: | Substandard | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 7,109 | 7,654 |
Purchased credit impaired loans | 7,929 | 8,000 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 213,131 | 208,716 |
Purchased credit impaired loans | 19,061 | 20,137 |
Loans | 232,192 | 228,853 |
Consumer and other | Pass | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 208,442 | 204,279 |
Purchased credit impaired loans | 0 | 0 |
Consumer and other | Watch | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 2,982 | 2,763 |
Purchased credit impaired loans | 16,122 | 15,422 |
Consumer and other | Substandard | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,707 | 1,674 |
Purchased credit impaired loans | $ 2,939 | $ 4,715 |
Loans and allowance for loan_10
Loans and allowance for loan losses - Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 3,786,791 | $ 3,667,511 |
Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 62,564 | 68,999 |
Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 13,721 | 13,685 |
30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 9,044 | 9,208 |
90 Days or More and Accruing Interest | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,885 | 3,041 |
Financing Receivables Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,699,577 | 3,572,578 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 888,345 | 867,083 |
Commercial and industrial | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,311 | 1,448 |
Commercial and industrial | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 342 | 438 |
Commercial and industrial | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 2,998 | 999 |
Commercial and industrial | 90 Days or More and Accruing Interest | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 37 | 65 |
Commercial and industrial | Financing Receivables Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 883,657 | 864,133 |
Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 539,065 | 556,051 |
Construction | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 4,607 | 5,755 |
Construction | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 275 | 283 |
Construction | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,014 | 109 |
Construction | 90 Days or More and Accruing Interest | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Construction | Financing Receivables Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 533,169 | 549,904 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 552,239 | 555,815 |
Residential real estate: | 1-to-4 family mortgage | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 18,072 | 19,377 |
Residential real estate: | 1-to-4 family mortgage | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 3,107 | 2,704 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 187,415 | 190,480 |
Residential real estate: | Residential line of credit | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | Residential line of credit | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 973 | 804 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 71,532 | 75,457 |
Residential real estate: | Multi-family mortgage | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | Multi-family mortgage | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | 30-89 Days Past Due | 1-to-4 family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,470 | 4,919 |
Residential real estate: | 30-89 Days Past Due | Residential line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 730 | 726 |
Residential real estate: | 30-89 Days Past Due | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | 90 Days or More and Accruing Interest | 1-to-4 family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 648 | 737 |
Residential real estate: | 90 Days or More and Accruing Interest | Residential line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 487 | 957 |
Residential real estate: | 90 Days or More and Accruing Interest | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate: | Financing Receivables Current | 1-to-4 family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 528,942 | 528,078 |
Residential real estate: | Financing Receivables Current | Residential line of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 185,225 | 187,993 |
Residential real estate: | Financing Receivables Current | Multi-family mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 71,532 | 75,457 |
Commercial real estate: | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 499,123 | 493,524 |
Commercial real estate: | Owner occupied | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 5,976 | 6,016 |
Commercial real estate: | Owner occupied | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,671 | 2,423 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 816,880 | 700,248 |
Commercial real estate: | Non-owner occupied | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 13,537 | 16,266 |
Commercial real estate: | Non-owner occupied | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 6,973 | 6,885 |
Commercial real estate: | 30-89 Days Past Due | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 162 | 407 |
Commercial real estate: | 30-89 Days Past Due | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 795 | 61 |
Commercial real estate: | 90 Days or More and Accruing Interest | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 117 | 197 |
Commercial real estate: | 90 Days or More and Accruing Interest | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 57 | 77 |
Commercial real estate: | Financing Receivables Current | Owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 491,197 | 484,481 |
Commercial real estate: | Financing Receivables Current | Non-owner occupied | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 795,518 | 676,959 |
Consumer and other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 232,192 | 228,853 |
Consumer and other | Purchased Credit Impaired | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 19,061 | 20,137 |
Consumer and other | Non Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 380 | 148 |
Consumer and other | 30-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 1,875 | 1,987 |
Consumer and other | 90 Days or More and Accruing Interest | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | 539 | 1,008 |
Consumer and other | Financing Receivables Current | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans | $ 210,337 | $ 205,573 |
Loans and allowance for loan_11
Loans and allowance for loan losses - Impaired Loans Recognized, Segregated by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | $ 9,430 | $ 7,009 |
Impaired loans with related allowance, unpaid principal | 9,459 | 7,204 |
Impaired loans with related allowance, related allowance | 1,186 | 268 |
Impaired loan with no related allowance, recorded investment | 6,138 | 6,707 |
Impaired loan with no related allowance, unpaid principal | 8,149 | 8,577 |
Total impaired loans, recorded investment | 15,568 | 13,716 |
Total impaired loans, unpaid principal | 17,608 | 15,781 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 3,186 | 618 |
Impaired loans with related allowance, unpaid principal | 3,186 | 732 |
Impaired loans with related allowance, related allowance | 709 | 3 |
Impaired loan with no related allowance, recorded investment | 859 | 1,229 |
Impaired loan with no related allowance, unpaid principal | 1,022 | 1,281 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 0 | 0 |
Impaired loans with related allowance, unpaid principal | 0 | 0 |
Impaired loans with related allowance, related allowance | 0 | 0 |
Impaired loan with no related allowance, recorded investment | 1,220 | 1,221 |
Impaired loan with no related allowance, unpaid principal | 1,264 | 1,262 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 405 | 145 |
Impaired loans with related allowance, unpaid principal | 405 | 145 |
Impaired loans with related allowance, related allowance | 136 | 7 |
Impaired loan with no related allowance, recorded investment | 469 | 842 |
Impaired loan with no related allowance, unpaid principal | 779 | 1,151 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 0 | 0 |
Impaired loans with related allowance, unpaid principal | 0 | 0 |
Impaired loans with related allowance, related allowance | 0 | 0 |
Impaired loan with no related allowance, recorded investment | 605 | 245 |
Impaired loan with no related allowance, unpaid principal | 613 | 249 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 0 | 0 |
Impaired loans with related allowance, unpaid principal | 0 | 0 |
Impaired loans with related allowance, related allowance | 0 | 0 |
Impaired loan with no related allowance, recorded investment | 0 | 0 |
Impaired loan with no related allowance, unpaid principal | 0 | 0 |
Commercial real estate: | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 189 | 560 |
Impaired loans with related allowance, unpaid principal | 218 | 641 |
Impaired loans with related allowance, related allowance | 42 | 53 |
Impaired loan with no related allowance, recorded investment | 1,865 | 2,048 |
Impaired loan with no related allowance, unpaid principal | 2,619 | 2,780 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 5,650 | 5,686 |
Impaired loans with related allowance, unpaid principal | 5,650 | 5,686 |
Impaired loans with related allowance, related allowance | 299 | 205 |
Impaired loan with no related allowance, recorded investment | 1,049 | 1,049 |
Impaired loan with no related allowance, unpaid principal | 1,781 | 1,781 |
Consumer and other | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, recorded investment | 0 | 0 |
Impaired loans with related allowance, unpaid principal | 0 | 0 |
Impaired loans with related allowance, related allowance | 0 | 0 |
Impaired loan with no related allowance, recorded investment | 71 | 73 |
Impaired loan with no related allowance, unpaid principal | $ 71 | $ 73 |
Loans and allowance for loan_12
Loans and allowance for loan losses - Impaired Loans Recognized, Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | $ 8,220 | $ 1,104 |
Impaired loan with no related allowance, average recorded investment | 6,424 | 8,095 |
Total impaired loans, average recorded investment | 14,644 | 9,199 |
Impaired loans with related allowance, interest income recognized (cash basis) | 42 | 11 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 102 | 110 |
Total impaired loans, interest income recognized (cash basis) | 144 | 121 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 1,902 | 53 |
Impaired loan with no related allowance, average recorded investment | 1,044 | 1,430 |
Impaired loans with related allowance, interest income recognized (cash basis) | 38 | 1 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 14 | 16 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 0 | 0 |
Impaired loan with no related allowance, average recorded investment | 1,221 | 1,287 |
Impaired loans with related allowance, interest income recognized (cash basis) | 0 | 0 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 48 | 30 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 275 | 193 |
Impaired loan with no related allowance, average recorded investment | 656 | 1,185 |
Impaired loans with related allowance, interest income recognized (cash basis) | 2 | 2 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 8 | 13 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 0 | 0 |
Impaired loan with no related allowance, average recorded investment | 425 | 0 |
Impaired loans with related allowance, interest income recognized (cash basis) | 0 | 0 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 2 | 0 |
Residential real estate: | Multi-family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 0 | 0 |
Impaired loan with no related allowance, average recorded investment | 0 | 971 |
Impaired loans with related allowance, interest income recognized (cash basis) | 0 | 0 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 0 | 12 |
Commercial real estate: | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 375 | 715 |
Impaired loan with no related allowance, average recorded investment | 1,957 | 1,621 |
Impaired loans with related allowance, interest income recognized (cash basis) | 2 | 6 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 28 | 32 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 5,668 | 143 |
Impaired loan with no related allowance, average recorded investment | 1,049 | 1,574 |
Impaired loans with related allowance, interest income recognized (cash basis) | 0 | 2 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 0 | 7 |
Consumer and other | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 0 | 0 |
Impaired loan with no related allowance, average recorded investment | 72 | 27 |
Impaired loans with related allowance, interest income recognized (cash basis) | 0 | 0 |
Impaired loan with no related allowance, interest income recognized (cash basis) | $ 2 | $ 0 |
Loans and allowance for loan_13
Loans and allowance for loan losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 2 | 2 |
Pre-modification outstanding recorded investment | $ 3,188 | $ 254 |
Post-modification outstanding recorded investment | 3,188 | 254 |
Charge offs and specific reserves | $ 0 | $ 0 |
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 | |
Charge offs and specific reserves | $ 0 | |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 2 | |
Pre-modification outstanding recorded investment | $ 3,188 | |
Post-modification outstanding recorded investment | 3,188 | |
Charge offs and specific reserves | $ 0 | |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 249 | |
Post-modification outstanding recorded investment | 249 | |
Charge offs and specific reserves | $ 0 |
Other real estate owned - Summa
Other real estate owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 12,643 | $ 16,442 |
Transfers from loans | 1,106 | 630 |
Properties sold | (716) | (1,432) |
Loss on sale of other real estate owned | (7) | (43) |
Transferred to loans | (166) | (120) |
Write-downs and partial liquidations | (32) | (143) |
Balance at end of period | $ 12,828 | $ 15,334 |
Other real estate owned - Narra
Other real estate owned - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Real Estate Properties [Line Items] | ||
Other real estate owned included excess land and facilities held for sale | $ 5,381 | $ 5,381 |
Residential Real Estate Properties | ||
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | 2,435 | 2,101 |
Total foreclosure proceedings in process | $ 164 | $ 478 |
Leases (Details)
Leases (Details) | 3 Months Ended | |
Mar. 31, 2018USD ($) | Mar. 31, 2019lease_renew_optionoperating_lease | |
Lessee, Lease, Description [Line Items] | ||
Lessee, number of operating leases, noncurrent | operating_lease | 39 | |
Lessee, operating lease, number of options to renew | lease_renew_option | 1 | |
Operating lease rent expense | $ | $ 1,229 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 1 year | |
Lessee, operating lease, renewal term | 20 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lessee, operating lease, term of contract | 37 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 32,694 | $ 0 |
Lease liability | $ 35,093 | $ 0 |
Weighted average remaining lease term (in years) | 15 years 7 months 24 days | |
Weighted average discount rate | 3.48% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,112 |
Short-term lease cost | 224 |
Variable lease cost | 100 |
Total lease cost | $ 1,436 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Lease payments due on or before: | ||
March 31, 2020 | $ 4,670 | |
March 31, 2021 | 4,604 | |
March 31, 2022 | 4,308 | |
March 31, 2023 | 3,332 | |
March 31, 2024 | 3,176 | |
Thereafter | 27,065 | |
Total undiscounted cash flows | 47,155 | |
Discount on cash flows | (12,062) | |
Lease liability | $ 35,093 | $ 0 |
Mortgage servicing rights - Sch
Mortgage servicing rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Carrying value at beginning of period | $ 88,829 | $ 76,107 |
Capitalization | 8,720 | 13,510 |
Sales | (29,160) | 0 |
Change in fair value: | ||
Due to pay-offs/pay-downs | (1,795) | (3,060) |
Due to change in valuation inputs or assumptions | (2,563) | 6,603 |
Carrying value at period end | $ 64,031 | $ 93,160 |
Mortgage servicing rights - S_2
Mortgage servicing rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Servicing income: | ||
Servicing income | $ 4,751 | $ 4,793 |
Change in fair value of mortgage servicing rights | (4,358) | 3,543 |
Change in fair value of derivative hedging instruments | 2,477 | (5,256) |
Servicing income | 2,870 | 3,080 |
Servicing expenses | 1,744 | 1,795 |
Net servicing income | $ 1,126 | $ 1,285 |
Mortgage servicing rights - S_3
Mortgage servicing rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 5,221,109 | $ 6,755,114 |
Weighted-average prepayment speed (CPR) | 9.83% | 8.58% |
Estimated impact on fair value of a 10% increase | $ (2,493) | $ (2,072) |
Estimated impact on fair value of a 20% increase | $ (4,813) | $ (4,006) |
Discount rate | 8.99% | 10.45% |
Estimated impact on fair value of a 100 bp increase | $ (2,701) | $ (2,505) |
Estimated impact on fair value of a 200 bp increase | $ (5,181) | $ (4,807) |
Weighted-average coupon interest rate | 4.42% | 4.21% |
Weighted-average servicing fee (basis points) | 0.29% | 0.30% |
Weighted-average remaining maturity (in months) | 319 months | 325 months |
Mortgage servicing rights - Nar
Mortgage servicing rights - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Transfers and Servicing of Financial Assets [Abstract] | |||
Sales | $ (29,160) | $ 0 | |
Mortgage loans serviced | 2,034,374 | ||
Mortgage loans serviced related to bulk sale of mortgage servicing rights | 2,015,273 | ||
Mortgage escrow deposit | $ 70,121 | $ 53,468 |
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, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 10,194 | $ 0 |
Deferred | (4,219) | 5,482 |
Total | $ 5,975 | $ 5,482 |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Federal taxes calculated at statutory rate | $ 5,368 | $ 5,300 |
Federal taxes calculated at statutory rate, percent | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||
State taxes, net of federal benefit | $ 1,138 | $ 1,143 |
Benefit of equity based compensation | (392) | (736) |
Municipal interest income, net of interest disallowance | (216) | (201) |
Bank owned life insurance | (12) | (12) |
Other | 89 | (12) |
Total | $ 5,975 | $ 5,482 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
State taxes, net of federal benefit, percent | 4.50% | 4.50% |
Benefit of equity based compensation, percent | (1.50%) | (3.00%) |
Municipal interest income, net of interest disallowance, percent | (0.80%) | (0.80%) |
Bank owned life insurance, percent | (0.00%) | (0.00%) |
Other, percent | 0.20% | 0.00% |
Income tax expense, as reported | 23.40% | 21.70% |
Income taxes - Schedule of Net
Income taxes - Schedule of Net Deferred Tax liability (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 7,768 | $ 7,539 |
Operating lease liability | 9,079 | 0 |
Amortization of core deposit intangible | 1,060 | 1,012 |
Deferred compensation | 3,802 | 5,878 |
Unrealized loss on available-for-sale debt securities | 558 | 3,299 |
Other | 2,012 | 1,998 |
Subtotal | 24,279 | 19,726 |
Deferred tax liabilities: | ||
FHLB stock dividends | (550) | (550) |
Operating lease - right of use asset | (8,826) | 0 |
Depreciation | (4,777) | (4,812) |
Cash flow hedges | (586) | (736) |
Mortgage servicing rights | (16,684) | (23,146) |
Other | (7,904) | (7,145) |
Subtotal | (39,327) | (36,389) |
Net deferred tax liability | $ (15,048) | $ (16,663) |
Commitments and contingencies -
Commitments and contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 1,130,234 | $ 1,051,414 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 1,111,472 | 1,032,390 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 18,762 | $ 19,024 |
Commitments and contingencies_2
Commitments and contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Total principal amount of loans repurchased or indemnified | $ 1,393 | $ 1,119 |
Commitments and contingencies_3
Commitments and contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of period | $ 3,273 | $ 3,386 |
Provision for loan repurchases or indemnifications | 59 | 186 |
Recoveries on previous losses | 0 | (58) |
Balance at end of period | $ 3,332 | $ 3,514 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jul. 31, 2017USD ($)derivative | Mar. 31, 2018USD ($) | Mar. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Derivative [Line Items] | |||||
Notional Amount | $ 100,000 | ||||
Stockholders' equity | $ 611,075 | $ 694,577 | $ 671,857 | $ 596,729 | |
Cash collateral pledged on derivatives | $ 20,380 | 13,904 | |||
Subordinated Debentures | |||||
Derivative [Line Items] | |||||
Number of derivative instruments | derivative | 2 | ||||
Long-term debt | $ 30,930 | ||||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Number of derivative instruments | derivative | 3 | ||||
Interest rate swaps | Designated as hedging: | |||||
Derivative [Line Items] | |||||
Notional Amount | 30,000 | 30,000 | |||
Interest rate swaps | Subordinated Debentures | |||||
Derivative [Line Items] | |||||
Notional Amount | 30,000 | ||||
Fair value of interest rate swap | 274 | 721 | |||
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 | ||||
Gain on canceled derivatives | $ 1,564 | ||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||||
Derivative [Line Items] | |||||
Stockholders' equity | $ 1,342 | $ 1,436 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jul. 31, 2017 |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 100,000 | ||
Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 1,624,857 | $ 1,258,047 | |
Asset | 18,728 | 13,595 | |
Liability | 12,400 | 11,637 | |
Interest rate contracts | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 346,545 | 295,333 | |
Asset | 9,073 | 6,679 | |
Liability | 9,073 | 6,679 | |
Forward commitments | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 599,205 | 474,208 | |
Asset | 0 | 0 | |
Liability | 3,327 | 4,958 | |
Interest rate-lock commitments | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 492,507 | 318,706 | |
Asset | 8,121 | 6,241 | |
Liability | 0 | 0 | |
Futures contracts | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 178,000 | 166,000 | |
Asset | 1,456 | 649 | |
Liability | 0 | 0 | |
Option contracts | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 8,600 | 3,800 | |
Asset | 78 | 26 | |
Liability | 0 | 0 | |
Interest rate swaps | Designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 30,000 | 30,000 | |
Asset | 274 | 721 | |
Liability | $ 0 | $ 0 |
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, 2019 | Mar. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Reclassification adjustment for gain on hedging activities, tax | $ 33 | $ 1 |
Amount of (loss) gain recognized in other comprehensive income, net of tax | (331) | 1,271 |
Not designated as hedging: | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (640) | 6,325 |
Designated as hedging: | ||
Derivatives, Fair Value [Line Items] | ||
Total cash flow hedge gain (loss) and derivative excluded component increase (decrease) | 149 | (32) |
Designated as hedging: | Interest Expense on Borrowings | ||
Derivatives, Fair Value [Line Items] | ||
Amount of gain (loss) reclassified from other comprehensive income and recognized in interest expense on borrowings | 94 | (3) |
Gain (loss) included in interest expense on borrowings | 55 | (29) |
Interest rate-lock commitments | Not designated as hedging: | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 1,880 | 3,411 |
Forward commitments | Not designated as hedging: | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (4,404) | 5,318 |
Futures contracts | Not designated as hedging: | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 1,871 | (2,447) |
Option contracts | Not designated as hedging: | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | $ 13 | $ 43 |
Fair value of financial instr_3
Fair value of financial instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Interest receivable | $ 16,611 | $ 14,503 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 195,414 | 125,356 |
Investment securities | 0 | 0 |
Loans, net | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 3,159,931 | 3,051,972 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 36,695 | 15,081 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest Payable | 294 | 530 |
Derivatives | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 670,835 | 658,805 |
Loans, net | 0 | 0 |
Loans held for sale | 248,054 | 278,815 |
Interest receivable | 3,114 | 2,848 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 1,147,498 | 1,122,076 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Federal Home Loan Bank advances | 161,654 | 181,864 |
Subordinated debt | 30,000 | 30,000 |
Interest Payable | 6,818 | 4,485 |
Derivatives | 12,400 | 11,637 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Loans, net | 3,746,515 | 3,630,500 |
Loans held for sale | 0 | 0 |
Interest receivable | 13,497 | 11,655 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Interest Payable | 0 | 0 |
Derivatives | 0 | 0 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 195,414 | 125,356 |
Investment securities | 670,835 | 658,805 |
Loans, net | 3,756,977 | 3,638,579 |
Loans held for sale | 248,054 | 278,815 |
Interest receivable | 16,611 | 14,503 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Deposits, Without stated maturities | 3,159,931 | 3,051,972 |
Deposits, With stated maturities | 1,143,260 | 1,119,745 |
Securities sold under agreement to repurchase and federal funds sold | 36,695 | 15,081 |
Federal Home Loan Bank advances | 161,553 | 181,765 |
Subordinated debt | 30,930 | 30,930 |
Interest Payable | 7,112 | 5,015 |
Derivatives | 12,400 | 11,637 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 195,414 | 125,356 |
Investment securities | 670,835 | 658,805 |
Loans, net | 3,746,515 | 3,630,500 |
Loans held for sale | 248,054 | 278,815 |
Interest receivable | 16,611 | 14,503 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Deposits, Without stated maturities | 3,159,931 | 3,051,972 |
Deposits, With stated maturities | 1,147,498 | 1,122,076 |
Securities sold under agreement to repurchase and federal funds sold | 36,695 | 15,081 |
Federal Home Loan Bank advances | 161,654 | 181,864 |
Subordinated debt | 30,000 | 30,000 |
Interest Payable | 7,112 | 5,015 |
Derivatives | $ 12,400 | $ 11,637 |
Fair value of financial instr_4
Fair value of financial instruments - Balances and Levels of Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Available-for-sale debt securities, at fair value | $ 667,654 | $ 655,698 |
Equity securities, at fair value | 3,181 | 3,107 |
Impaired loans | 15,568 | 13,716 |
Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 147,640 | 138,887 |
Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 7,305 | 7,242 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Investment securities | 670,835 | 658,805 |
Loans held for sale | 248,054 | 278,815 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Derivatives | 12,400 | 11,637 |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Equity securities, at fair value | 3,181 | 3,107 |
Investment securities | 670,835 | 658,805 |
Loans held for sale | 248,054 | 278,815 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Derivatives | 12,400 | 11,637 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 993 | 989 |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 511,716 | 508,580 |
Fair Value, Measurements, Recurring | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 147,640 | 138,887 |
Fair Value, Measurements, Recurring | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 7,305 | 7,242 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Equity securities, at fair value | 3,181 | 3,107 |
Investment securities | 670,835 | 658,805 |
Loans held for sale | 248,054 | 278,815 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 19,002 | 14,316 |
Financial liabilities: | ||
Derivatives | 12,400 | 11,637 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 993 | 989 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 511,716 | 508,580 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 147,640 | 138,887 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 7,305 | 7,242 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 64,031 | 88,829 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Financial assets: | ||
Other real estate owned | 1,147 | 2,266 |
Impaired loans | 3,724 | 8,718 |
Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 3,186 | 732 |
Fair Value, Measurements, Nonrecurring | Consumer and other | ||
Financial assets: | ||
Impaired loans | 0 | |
Fair Value, Measurements, Nonrecurring | Construction Loans | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 6 | 832 |
Fair Value, Measurements, Nonrecurring | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Impaired loans | 260 | 146 |
Fair Value, Measurements, Nonrecurring | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 272 | 87 |
Fair Value, Measurements, Nonrecurring | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 6,921 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Impaired loans | 0 | |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction Loans | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Impaired loans | 0 | |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Construction Loans | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 1,147 | 2,266 |
Impaired loans | 3,724 | 8,718 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 3,186 | 732 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Impaired loans | 0 | |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Construction Loans | Commercial and industrial | ||
Financial assets: | ||
Impaired loans | 6 | 832 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Impaired loans | 260 | 146 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | 272 | 87 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Impaired loans | $ 0 | $ 6,921 |
Fair value of financial instr_5
Fair value of financial instruments - Reconciliation for Assets and Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs or Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 0 | $ 3,604 |
Reclassification of equity securities without a readily determinable fair value to other assets | 0 | (3,604) |
Balance at end of period | $ 0 | $ 0 |
Fair value of financial instr_6
Fair value of financial instruments - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 15,568 | $ 13,716 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 3,724 | 8,718 |
Other real estate owned | 1,147 | 2,266 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | 3,724 | 8,718 |
Other real estate owned | $ 1,147 | $ 2,266 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 0.00% | 0.00% |
Other real estate owned, measurement input | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, measurement input | 30.00% | 30.00% |
Other real estate owned, measurement input | 0.15 | 0.15 |
Fair value of financial instr_7
Fair value of financial instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Mortgage Loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net (losses) gains from fair value changes of mortgage loans | $ (1,207) | $ 2,121 | |
GNMA | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Delinquent GNMA loans that had been previously sold | $ 76,857 | $ 67,362 |
Fair value of financial instr_8
Fair value of financial instruments - Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 247,858 | $ 278,418 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | 196 | 397 |
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 | 238,554 | 267,907 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | 196 | 397 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 9,304 | 10,511 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | $ 0 | $ 0 |
Segment reporting - Additional
Segment reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Other noninterest expense | $ 33,013 | $ 30,313 |
Interest income | 60,448 | 50,693 |
Mortgage Segment | ||
Segment Reporting Information [Line Items] | ||
Other noninterest expense | 1,054 | 0 |
Interest paid | $ 2,558 | $ 4,508 |
Mortgage Segment | Prime Interest Rate | ||
Segment Reporting Information [Line Items] | ||
Warehouse line of credit interest rate | 5.50% | 4.75% |
Banking Segment | ||
Segment Reporting Information [Line Items] | ||
Other noninterest expense | $ 31,959 | $ 30,313 |
Interest income | $ 2,558 | $ 4,508 |
Segment reporting - Schedule of
Segment reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 53,016 | $ 48,429 | |
Provision for loan losses | 1,391 | 317 | |
Mortgage banking income | 22,902 | 28,184 | |
Change in fair value of mortgage servicing rights | (1,881) | (1,713) | |
Other noninterest income | 8,018 | 6,804 | |
Depreciation and amortization | 1,172 | 1,106 | |
Amortization of intangibles | 729 | 853 | |
Other noninterest mortgage banking expense | 20,187 | 23,879 | |
Other noninterest expense | 33,013 | 30,313 | |
Income before income taxes | 25,563 | 25,236 | |
Income tax expense | 5,975 | 5,482 | |
Net income | 19,588 | 19,754 | |
Total assets | 5,335,156 | 4,725,416 | $ 5,136,764 |
Goodwill | 137,190 | 137,190 | $ 137,190 |
Merger costs | 621 | 1,193 | |
Banking Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 52,993 | 48,771 | |
Provision for loan losses | 1,391 | 317 | |
Mortgage banking income | 4,386 | 6,108 | |
Change in fair value of mortgage servicing rights | 0 | 0 | |
Other noninterest income | 8,018 | 6,804 | |
Depreciation and amortization | 1,042 | 978 | |
Amortization of intangibles | 729 | 853 | |
Other noninterest mortgage banking expense | 2,831 | 5,097 | |
Other noninterest expense | 31,959 | 30,313 | |
Income before income taxes | 27,445 | 24,125 | |
Total assets | 4,987,744 | 4,220,543 | |
Goodwill | 137,090 | 137,090 | |
Mortgage Segment | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 23 | (342) | |
Provision for loan losses | 0 | 0 | |
Mortgage banking income | 18,516 | 22,076 | |
Change in fair value of mortgage servicing rights | (1,881) | (1,713) | |
Other noninterest income | 0 | 0 | |
Depreciation and amortization | 130 | 128 | |
Amortization of intangibles | 0 | 0 | |
Other noninterest mortgage banking expense | 17,356 | 18,782 | |
Other noninterest expense | 1,054 | 0 | |
Income before income taxes | (1,882) | 1,111 | |
Total assets | 347,412 | 504,873 | |
Goodwill | $ 100 | $ 100 |
Minimum capital requirements -
Minimum capital requirements - Additional Information (Details) | Mar. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Capital conservative buffer percentage | 2.50% | 1.88% |
Minimum capital requirements _2
Minimum capital requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
FB Financial Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 610,686 | $ 582,945 |
Total Capital (to risk-weighted assets), Actual Ratio | 13.40% | 13.00% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 364,589 | $ 358,735 |
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 | $ 478,523 | $ 442,814 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 10.50% | 9.90% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 580,872 | $ 554,013 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.70% | 12.40% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 274,428 | $ 268,071 |
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 | $ 388,773 | $ 351,843 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 7.90% |
Tier 1 Capital (to average assets), Actual Amount | $ 580,872 | $ 554,013 |
Tier 1 Capital (to average assets), Actual Ratio | 11.50% | 11.40% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 202,042 | $ 194,391 |
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 | $ 550,872 | $ 524,013 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.00% | 11.70% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 206,577 | $ 201,543 |
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 | $ 321,342 | $ 285,520 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.00% | 6.40% |
FirstBank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 591,594 | $ 561,327 |
Total Capital (to risk-weighted assets), Actual Ratio | 13.00% | 12.50% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 364,058 | $ 359,249 |
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 | $ 477,826 | $ 443,448 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 10.50% | 9.90% |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 455,072 | $ 449,062 |
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 | $ 561,780 | $ 532,395 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.30% | 11.90% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 274,039 | $ 268,434 |
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 | $ 388,222 | $ 352,320 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 7.90% |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount | $ 365,385 | $ 357,913 |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Ratio | 8.00% | 8.00% |
Tier 1 Capital (to average assets), Actual Amount | $ 561,780 | $ 532,395 |
Tier 1 Capital (to average assets), Actual Ratio | 11.10% | 10.90% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 202,443 | $ 195,374 |
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 | $ 253,054 | $ 244,218 |
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 | $ 561,780 | $ 532,395 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.30% | 11.90% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 205,529 | $ 201,326 |
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 | $ 319,712 | $ 285,212 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.00% | 6.40% |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 296,876 | $ 290,804 |
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 - Summ
Stock-Based Compensation - Summary of Vested and Unvested Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Restricted Stock Units Outstanding, Balance, beginning of period (in shares) | 1,140,215,000 | 1,214,325,000 |
Restricted Stock Units Outstanding, Grants (in shares) | 142,008,000 | 105,429,000 |
Restricted Stock Units Outstanding, Released and distributed (vested) (in shares) | (181,958,000) | (170,160,000) |
Restricted Stock Units Outstanding, Forfeited/expired (in shares) | (4,343,000) | (5,556,000) |
Restricted Stock Units Outstanding, Balance, end of period (in shares) | 1,095,922,000 | 1,144,038,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Grant Date Fair Value, Balance, beginning of period (USD per share) | $ 21.96 | $ 19.97 |
Weighted Average Grant Date Fair Value, Grants (USD per share) | 34.01 | 39.90 |
Weighted Average Grant Date Fair Value, Released and distributed (vested) (USD per share) | 24.91 | 21.24 |
Weighted Average Grant Date Fair Value, Forfeited/expired (USD per share) | 27.67 | 19 |
Weighted Average Grant Date Fair Value, Balance, end of period (USD per share) | $ 23.30 | $ 21.11 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | 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 | $ 1,638 | $ 1,958 | |
Dividends declared not paid on restricted stock units | 84 | 0 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock units vested and released | 4,533 | 3,614 | |
Compensation cost related to stock grants and vesting of restricted stock units | 1,638 | 1,958 | |
One-time expense for modification of vesting terms | 249 | ||
Restricted Stock Units (RSUs) | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to stock grants and vesting of restricted stock units | 172 | 177 | |
Stock-Settled EBI Units and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to nonvested stock-settled EBI units and restricted stock units | $ 12,004 | $ 15,696 | |
Expected weighted-average period to be recognized | 2 years 4 months 2 days | 2 years 9 months 11 days | |
Dividends declared not paid on restricted stock units | $ 293 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Purchase price percentage of subsequent offering periods | 95.00% | ||
Maximum number of shares issuable (in shares) | 200,000 | ||
Maximum number of shares per participant (in shares) | 725 | ||
Maximum worth of award per participant | $ 25,000 | ||
Shares issued under plan (in shares) | 10,613 | 16,537 | |
Number of shares reserved for issuance (in shares) | 2,421,743 | 2,444,428 |
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, 2019USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Loans outstanding, Beginning balance | $ 32,264 |
New loans and advances | 1,225 |
Change in related party status | (9,614) |
Repayments | (219) |
Loans outstanding, Ending balance | $ 23,656 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 281,119 | $ 287,156 | |
Aviation Time Sharing Agreement | |||
Related Party Transaction [Line Items] | |||
Payments to related party | 27 | $ 72 | |
Certain Executive Officers, Certain Management and Directors and Their Associates | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | 18,382 | 15,000 | |
Director | |||
Related Party Transaction [Line Items] | |||
Unamortized leasehold improvements | 111 | 116 | |
Lease expense | 129 | $ 148 | |
Amount of investment held by the company | $ 29 | $ 29 |
Uncategorized Items - fbk-20190
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 109,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |