Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37875 | |
Entity Registrant Name | FB FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1216058 | |
Entity Address, Address Line One | 211 Commerce Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37201 | |
City Area Code | 615 | |
Local Phone Number | 564-1212 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,354,756 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 206,250 | $ 110,991 |
Federal funds sold | 104,153 | 121,153 |
Interest-bearing deposits in financial institutions | 1,584,730 | 1,085,754 |
Cash and cash equivalents | 1,895,133 | 1,317,898 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,225,178 | 1,172,400 |
Equity securities, at fair value | 4,667 | 4,591 |
Federal Home Loan Bank stock, at cost | 31,757 | 31,232 |
Loans held for sale, at fair value | 1,009,762 | 899,173 |
Loans | 7,047,342 | 7,082,959 |
Less: allowance for credit losses | 157,954 | 170,389 |
Net loans | 6,889,388 | 6,912,570 |
Premises and equipment, net | 143,467 | 145,115 |
Other real estate owned, net | 11,177 | 12,111 |
Operating lease right-of-use assets | 48,453 | 49,537 |
Interest receivable | 44,393 | 43,603 |
Mortgage servicing rights, at fair value | 104,192 | 79,997 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 20,986 | 22,426 |
Other assets | 264,712 | 274,116 |
Total assets | 11,935,826 | 11,207,330 |
Deposits | ||
Noninterest-bearing | 2,431,077 | 2,274,103 |
Interest-bearing checking | 3,097,648 | 2,491,765 |
Money market and savings | 3,347,731 | 3,254,915 |
Customer time deposits | 1,342,717 | 1,375,695 |
Brokered and internet time deposits | 37,713 | 61,559 |
Total deposits | 10,256,886 | 9,458,037 |
Borrowings | 180,179 | 238,324 |
Operating lease liabilities | 54,232 | 55,187 |
Accrued expenses and other liabilities | 115,333 | 164,400 |
Total liabilities | 10,606,630 | 9,915,948 |
Commitments and contingencies (Note 9) | ||
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 47,331,680 and 47,220,743 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 47,332 | 47,222 |
Additional paid-in capital | 900,521 | 898,847 |
Retained earnings | 365,192 | 317,625 |
Accumulated other comprehensive income, net | 16,058 | 27,595 |
Total FB Financial Corporation shareholders' equity | 1,329,103 | 1,291,289 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,329,196 | 1,291,382 |
Total liabilities and shareholders' equity | $ 11,935,826 | $ 11,207,330 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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) | 47,331,680 | 47,220,743 |
Common stock, shares outstanding (in shares) | 47,331,680 | 47,220,743 |
Consolidated statements of inco
Consolidated statements of income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest income: | ||
Interest and fees on loans | $ 89,412 | $ 63,754 |
Interest on securities | ||
Taxable | 2,819 | 3,056 |
Tax-exempt | 1,956 | 1,433 |
Other | 598 | 1,431 |
Total interest income | 94,785 | 69,674 |
Interest expense: | ||
Deposits | 9,826 | 12,168 |
Borrowings | 2,383 | 1,257 |
Total interest expense | 12,209 | 13,425 |
Net interest income | 82,576 | 56,249 |
Provision for credit losses | (11,632) | 27,964 |
Provision for credit losses on unfunded commitments | (2,222) | 1,601 |
Net interest income after provisions for credit losses | 96,430 | 26,684 |
Noninterest income: | ||
Gain from securities, net | 83 | 63 |
Gain on sales or write-downs of other real estate owned | 496 | 51 |
Loss from other assets | (11) | (328) |
Other income | 2,142 | 2,775 |
Total noninterest income | 66,730 | 42,700 |
Noninterest expenses: | ||
Salaries, commissions and employee benefits | 64,571 | 43,622 |
Occupancy and equipment expense | 5,849 | 4,178 |
Legal and professional fees | 2,434 | 1,558 |
Data processing | 2,319 | 2,453 |
Merger costs | 0 | 3,050 |
Amortization of core deposit and other intangibles | 1,440 | 1,203 |
Advertising | 2,253 | 2,389 |
Other expense | 15,832 | 10,106 |
Total noninterest expense | 94,698 | 68,559 |
Income before income taxes | 68,462 | 825 |
Income tax expense | 15,588 | 80 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 52,874 | 745 |
Net income applicable to noncontrolling interest | 0 | 0 |
Net income applicable to FB Financial Corporation | $ 52,874 | $ 745 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.12 | $ 0.02 |
Diluted (in dollars per share) | $ 1.10 | $ 0.02 |
Mortgage banking income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 55,332 | $ 32,745 |
Service charges on deposit accounts | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,339 | 2,563 |
ATM and interchange fees | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 4,341 | 3,134 |
Investment services and trust income | ||
Noninterest income: | ||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 2,008 | $ 1,697 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 52,874 | $ 745 |
Other comprehensive (loss) income, net of tax: | ||
Net change in unrealized (loss) gain in available-for-sale securities, net of taxes of $3,452 and $4,275 | (11,848) | 12,094 |
Reclassification adjustment for gain on sale of securities included in net income, net of taxes of $2 and $0 | (5) | 0 |
Net change in unrealized gain (loss) in hedging activities, net of taxes of $112 and $403 | 316 | (1,145) |
Reclassification adjustment for gain on hedging activities, net of taxes of $— and $52 | 0 | (147) |
Total other comprehensive (loss) income , net of tax | (11,537) | 10,802 |
Comprehensive income | 41,337 | 11,547 |
Comprehensive income applicable to noncontrolling interests | 0 | 0 |
Comprehensive income applicable to FB Financial Corporation | $ 41,337 | $ 11,547 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net tax (benefit) expense recognized on gain (loss) on available for sale securities | $ (3,452) | $ 4,275 |
Net tax benefit on reclassification adjustment for gain on sale of securities included in net income | 2 | 0 |
Net tax (benefit) expense recognized on gain (loss) on hedging activities | (112) | 403 |
Net tax benefit on reclassification adjustment for gain on hedging activities | $ 0 | $ 52 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Cumulative effect of change in accounting principle | Adjusted balance | Common stock | Common stockAdjusted balance | Additional paid-in capital | Additional paid-in capitalAdjusted balance | Retained earnings | Retained earningsCumulative effect of change in accounting principle | Retained earningsAdjusted balance | Accumulated other comprehensive income, net | Accumulated other comprehensive income, netAdjusted balance | Total common shareholders' equity | Total common shareholders' equityCumulative effect of change in accounting principle | Total common shareholders' equityAdjusted balance | Noncontrolling interests | Noncontrolling interestsAdjusted balance |
Beginning balance at Dec. 31, 2019 | $ 762,329 | $ (25,018) | $ 737,311 | $ 31,034 | $ 31,034 | $ 425,633 | $ 425,633 | $ 293,524 | $ (25,018) | $ 268,506 | $ 12,138 | $ 12,138 | $ 762,329 | $ (25,018) | $ 737,311 | $ 0 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 745 | 745 | 745 | ||||||||||||||
Other comprehensive income, net of taxes | 10,802 | 10,802 | 10,802 | ||||||||||||||
Common stock issued in connection with acquisition of FNB Financial Corp., net of registration costs (See Note 2) | 34,847 | 955 | 33,892 | 34,847 | |||||||||||||
Stock based compensation expense | 1,883 | 5 | 1,878 | 1,883 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (838) | 61 | (899) | (838) | |||||||||||||
Shares issued under employee stock purchase program | 446 | 12 | 434 | 446 | |||||||||||||
Dividends declared | (2,866) | (2,866) | (2,866) | ||||||||||||||
Ending balance at Mar. 31, 2020 | 782,330 | 32,067 | 460,938 | 266,385 | 22,940 | 782,330 | 0 | ||||||||||
Beginning balance at Dec. 31, 2020 | 1,291,382 | 47,222 | 898,847 | 317,625 | 27,595 | 1,291,289 | 93 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 52,874 | 52,874 | 52,874 | ||||||||||||||
Other comprehensive income, net of taxes | (11,537) | (11,537) | (11,537) | ||||||||||||||
Stock based compensation expense | 2,666 | 3 | 2,663 | 2,666 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (1,715) | 85 | (1,800) | (1,715) | |||||||||||||
Shares issued under employee stock purchase program | 833 | 22 | 811 | 833 | |||||||||||||
Dividends declared | (5,307) | (5,307) | (5,307) | ||||||||||||||
Noncontrolling interest distribution | 0 | ||||||||||||||||
Ending balance at Mar. 31, 2021 | $ 1,329,196 | $ 47,332 | $ 900,521 | $ 365,192 | $ 16,058 | $ 1,329,103 | $ 93 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (USD per share) | $ 0.11 | $ 0.09 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 52,874,000 | $ 745,000 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Depreciation and amortization of fixed assets | 2,056,000 | 1,612,000 | |
Amortization of core deposit and other intangibles | 1,440,000 | 1,203,000 | |
Capitalization of mortgage servicing rights | (11,594,000) | (7,796,000) | |
Net change in fair value of mortgage servicing rights | (12,601,000) | 20,736,000 | |
Stock-based compensation expense | 2,666,000 | 1,883,000 | |
Provision for credit losses | (11,632,000) | 27,964,000 | |
Provision for credit losses on unfunded commitments | (2,222,000) | 1,601,000 | |
Provision for mortgage loan repurchases | 440,000 | 372,000 | |
Amortization (accretion) of premiums and discounts on acquired loans, net | 58,000 | (1,578,000) | |
Accretion of discounts and amortization of premiums on securities, net | 2,150,000 | 906,000 | |
Gain from securities, net | (83,000) | (63,000) | |
Originations of loans held for sale | (1,757,932,000) | (1,097,672,000) | |
Proceeds from sale of loans held for sale | 1,648,695,000 | 1,070,137,000 | |
Gain on sale and change in fair value of loans held for sale | (52,811,000) | (33,595,000) | |
Net gain or write-downs of other real estate owned | (496,000) | (51,000) | |
Loss on other assets | 11,000 | 328,000 | |
Provision for deferred income taxes | 9,639,000 | (8,088,000) | |
Changes in: | |||
Other assets and interest receivable | (225,000) | (118,909,000) | |
Accrued expenses and other liabilities | (42,615,000) | 38,567,000 | |
Net cash used in operating activities | (172,182,000) | (101,698,000) | |
Activity in available-for-sale securities: | |||
Maturities, prepayments and calls | 61,040,000 | 27,657,000 | |
Purchases | (131,268,000) | (29,632,000) | |
Net change in loans | 85,150,000 | 52,701,000 | |
Purchases of FHLB stock | (525,000) | 0 | |
Purchases of premises and equipment | (2,050,000) | (3,014,000) | |
Proceeds from the sale of other real estate owned | 2,495,000 | 1,442,000 | |
Net cash paid in business combinations (See Note 2) | 0 | (4,227,000) | |
Net cash provided by investing activities | 14,842,000 | 44,927,000 | |
Cash flows from financing activities: | |||
Net increase in demand deposits | 855,673,000 | 272,566,000 | |
Net decrease in time deposits | (56,824,000) | (40,107,000) | |
Net (decrease) increase in securities sold under agreements to repurchase | (2,965,000) | 4,955,000 | |
Payment of subordinated debt, net of premium accretion | (40,000,000) | 0 | |
Accretion of subordinated debt fair value premium and amortization of issuance costs, net | (158,000) | 0 | |
(Payments on) proceeds from other borrowings | (15,000,000) | 15,000,000 | |
Share based compensation withholding payments | (1,715,000) | (838,000) | |
Net proceeds from sale of common stock under employee stock purchase program | 833,000 | 446,000 | |
Dividends paid | (5,269,000) | (2,838,000) | |
Net cash provided by financing activities | 734,575,000 | 249,184,000 | |
Net change in cash and cash equivalents | 577,235,000 | 192,413,000 | |
Cash and cash equivalents at beginning of the period | 1,317,898,000 | 232,681,000 | $ 232,681,000 |
Cash and cash equivalents at end of the period | 1,895,133,000 | 425,094,000 | 1,317,898,000 |
Supplemental cash flow information: | |||
Interest paid | 14,794,000 | 10,997,000 | |
Taxes paid | 15,117,000 | 105,000 | |
Supplemental noncash disclosures: | |||
Transfers from loans to other real estate owned | 1,395,000 | 365,000 | |
Transfers from premises and equipment to other real estate owned | 0 | 841,000 | |
Loans provided for sales of other real estate owned | 330,000 | 0 | |
Transfers from loans to loans held for sale | 2,521,000 | 3,101,000 | |
Transfers from loans held for sale to loans | 14,413,000 | 1,445,000 | |
Stock consideration paid in business combination | 0 | 35,041,000 | |
Trade date payable - securities | 0 | 8,273,000 | $ 0 |
Dividends declared not paid on restricted stock units | 38,000 | 28,000 | |
Decrease to retained earnings for adoption of new accounting standards | 0 | 25,018,000 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 157,000 | $ 480,000 |
Basis of presentation
Basis of presentation | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: Overview and presentation FB Financial Corporation (the “Company”) is a financial holding company headquartered in Nashville, Tennessee. The Company operates through its wholly-owned subsidiary, FirstBank (the "Bank"). As of March 31, 2021, the Bank had 81 full-service branches throughout Tennessee, north Alabama, southern Kentucky 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, 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. As of March 31, 2021, the Company continues to qualify as an emerging growth company as defined by the "Jumpstart Our Business Startups Act" ("JOBS Act"), however beginning as of December 31, 2021, the Company will cease to qualify. Risks and uncertainties The COVID-19 health pandemic that arose in 2020 created a crisis resulting in volatility in financial markets, sudden, unprecedented job losses, and disruption in consumer and commercial behavior, resulting in governments in the United States and globally to intervene with varying levels of direct monetary support and fiscal stimulus packages. All industries, municipalities and consumers have been impacted by the health crisis to some degree, including the markets that we serve. In attempts to “flatten the curve”, businesses not deemed essential were closed or constrained to capacity limitations, individuals were asked to restrict their movements, observe social distancing and shelter in place. These actions resulted in rapid decreases in commercial and consumer activity, temporary closures of many businesses, leading to a loss of revenues and a rapid increase in unemployment, widening of credit spreads, dislocation of bond markets, disruption of global supply chains and changes in consumer spending behavior. Although certain restrictions lifted and vaccines became available to many in the first quarter of 2021, there continues to be uncertainty regarding the long term effects on the global economy, which could have a material adverse impact on the Company's business operations, asset valuations, financial condition, and results of operations. Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings available 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 available 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 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, 2021 2020 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 52,874 $ 745 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 52,874 $ 745 Weighted average basic shares outstanding 47,278,865 31,257,739 Basic earnings per common share $ 1.12 $ 0.02 Diluted earnings per common share: Earnings available to common shareholders $ 52,874 $ 745 Weighted average basic shares outstanding 47,278,865 31,257,739 Weighted average diluted shares contingently issuable (1) 690,241 476,373 Weighted average diluted shares outstanding 47,969,106 31,734,112 Diluted earnings per common share $ 1.10 $ 0.02 (1) Excludes 87,452 and 153,545 restricted stock units outstanding considered to be antidilutive for the three months ended March 31, 2021 and 2020, respectively. Recently adopted accounting policies: The Company did not modify or adopt any new accounting policies during the three months ended March 31, 2021 that were not disclosed in the Company's 2020 audited consolidated financial statements included on the Form 10-K, other than as described below. During the three months ended March 31, 2021, the Company reevaluated its business segments to align all retail mortgage activities with the Mortgage segment. Previously, the Company assigned retail mortgage activities within the Banking geographical footprint to the Banking segment. See Note 12, "Segment reporting" for additional information on this change. Recently adopted accounting standards: Except as set forth below, the Company did not adopt any new accounting standards that were not disclosed in the Company's 2020 audited consolidated financial statements included on Form 10-K. In January 2021, Financial Accounting Standards Board ("FASB") issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope". This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company early adopted ASU 2021-01 upon issuance effective January 7, 2021. No contract modifications have been made under the new guidance, therefore the adoption of this update did not impact the Company's financial statements or disclosures. Newly issued not yet effective accounting standards: The Company has reviewed newly issued not yet effective accounting standards and concluded as of March 31, 2021, there are none that are likely to impact the Company's financial statements or disclosures. |
Mergers and acquisitions
Mergers and acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Mergers and acquisitions: The following mergers and acquisitions were accounted for pursuant to Accounting Standards Codification ("ASC") 805, "Business Combinations" ("ASC 805"). Accordingly, the purchase price of each acquisition was allocated to the acquired assets and liabilities assumed based on estimated fair values as of the respective acquisition dates. The excess of the purchase price over the net assets acquired was recorded as goodwill. Franklin Financial Network, Inc. merger Effective August 15, 2020, the Company completed its previously announced merger with Franklin Financial Network, Inc. and its wholly owned subsidiaries, with FB Financial Corporation continuing as the surviving entity. After consolidating duplicative locations the merger added 10 branches and expanded the Company's footprint in middle Tennessee and the Nashville metropolitan statistical area. Under the terms of the agreement, the Company acquired total assets of $3.63 billion, loans of $2.79 billion and assumed total deposits of $3.12 billion. Total loans acquired includes a non-strategic institutional portfolio with a fair value of $326,206 the Company classified as held for sale. Franklin common shareholders received 15,058,181 shares of the Company's common stock, net of the equivalent value of 44,311 shares withheld on certain Franklin employee equity awards that vested upon change in control, as consideration in connection with the merger, in addition to $31,330 in cash consideration. Also included in the purchase price, the Company issued replacement restricted stock units for awards initially granted by Franklin during 2020 that did not vest upon change in control, with a total fair value of $674 attributed to pre-combination service. Based on the closing price of the Company's common stock on the New York Stock Exchange of $29.52 on August 15, 2020, the merger consideration represented approximately $477,830 in aggregate consideration. Goodwill of $67,191 recorded in connection with the transaction resulted from the ongoing business contribution, reputation, operating model and expertise of Franklin. Measurement period adjustments recorded during the fourth quarter of 2020 amounting to $6,546 related to the finalization of valuations relating primarily to commercial loans held for sale, deposits and premises and equipment. The goodwill is not deductible for income tax purposes. Goodwill is included in the Banking segment as substantially all of the operations resulting from the acquisition of Franklin are in alignment with the Company's banking business. The following table presents an allocation of the consideration to net assets acquired: Purchase Price: Equity consideration Franklin shares outstanding (1) 15,588,337 Franklin options converted to net shares 62,906 15,651,243 Exchange ratio to FB Financial shares 0.965 FB Financial shares to be issued as merger consideration (2) 15,102,492 Issuance price as of August 15, 2020 $ 29.52 Value of FB Financial stock to be issued as merger consideration $ 445,826 Less: tax withholding on vested restricted stock awards, units and options (3) (1,308) Value of FB Financial stock issued $ 444,518 FB Financial shares issued 15,058,181 Franklin restricted stock units that do not vest on change in control 114,915 Replacement awards issued to Franklin employees 118,776 Fair value of replacement awards $ 3,506 Fair value of replacement awards attributable to pre-combination service $ 674 Cash consideration Total Franklin shares and net shares outstanding 15,651,243 Cash consideration per share $ 2.00 Total cash to be paid to Franklin (4) $ 31,330 Total purchase price $ 477,830 Fair value of net assets acquired 410,639 Goodwill resulting from merger $ 67,191 (1) Franklin shares outstanding includes restricted stock awards and restricted stock units that vested upon change in control. (2) Only factors in whole share issuance. Cash was paid in lieu of fractional shares. (3) Represents the equivalent value of approximately 44,311 shares of FB Financial Corporation stock on August 15, 2020. (4) Includes $28 of cash paid in lieu of fractional shares. FNB Financial Corp. merger Effective February 14, 2020, the Company completed its previously announced acquisition of FNB Financial Corp. and its wholly owned subsidiary, Farmers National Bank of Scottsville (collectively, "Farmers National"). Following the acquisition, Farmers National was merged into the Company with FB Financial Corporation continuing as the surviving entity. The transaction added four branches and expanded the Company's footprint into Kentucky. Under the terms of the agreement, the Company acquired total assets of $258,218, loans of $182,171 and assumed total deposits of $209,535. Farmers National shareholders received 954,797 shares of the Company's common stock as consideration in connection with the merger, in addition to $15,001 in cash consideration. Based on the closing price of the Company's common stock on the New York Stock Exchange of $36.70 on February 14, 2020, the merger consideration represented approximately $50,042 in aggregate consideration. Goodwill of $6,319 recorded in connection with the transaction resulted from the ongoing business contribution of Farmers National and anticipated synergies arising from the combination of certain operational areas of the Company. Goodwill resulting from this transaction is not deductible for income tax purposes. Goodwill is included in the Banking segment as substantially all of the operations resulting from the acquisition of Farmers National are in alignment with the Company's core banking business. The following table presents the total purchase price, fair value of net assets acquired, and the goodwill as of the acquisition date. Consideration: Net shares issued 954,797 Purchase price per share on February 14, 2020 $ 36.70 Value of stock consideration $ 35,041 Cash consideration paid 15,001 Total purchase price $ 50,042 Fair value of net assets acquired 43,723 Goodwill resulting from merger $ 6,319 Net assets acquired The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the respective acquisition dates: As of August 15, 2020 As of February 14, 2020 Franklin Financial Network, Inc. FNB Financial Corp. ASSETS Cash and cash equivalents $ 284,004 $ 10,774 Investments 373,462 50,594 Mortgage loans held for sale, at fair value 38,740 — Commercial loans held for sale, at fair value 326,206 — Loans held for investment, net of fair value adjustments 2,427,527 182,171 Allowance for credit losses on purchased credit (24,831) (669) Premises and equipment 45,471 8,049 Operating lease right-of-use assets 23,958 14 Mortgage servicing rights 5,111 — Core deposit intangible 7,670 2,490 Other assets 124,571 4,795 Total assets $ 3,631,889 $ 258,218 LIABILITIES Deposits: Noninterest-bearing $ 505,374 $ 63,531 Interest-bearing checking 1,783,379 26,451 Money market and savings 342,093 37,002 Customer time deposits 383,433 82,551 Brokered and internet time deposits 107,452 — Total deposits 3,121,731 209,535 Borrowings 62,435 3,192 Operating lease liabilities 24,330 14 Accrued expenses and other liabilities 12,661 1,754 Total liabilities assumed 3,221,157 214,495 Noncontrolling interests acquired 93 — Net assets acquired $ 410,639 $ 43,723 Purchased credit-deteriorated loans Under the current expected credit losses ("CECL") methodology, the Company is required to determine whether purchased loans held for investment have experienced more-than-insignificant deterioration in credit quality since origination. Loans that have experienced this level of deterioration in credit quality are subject to special accounting at initial recognition and measurement. The Company initially measures the amortized cost of a Purchased Credit Deteriorated ("PCD") loan by adding the acquisition date estimate of expected credit losses to the loan's purchase price (i.e. the "gross up" approach). There is no provision for credit loss recognized upon acquisition of a PCD loan because the initial allowance is established through gross-up of the loans' amortized cost. The Company determined that 27.9% of the Franklin loan portfolio had more-than-insignificant deterioration in credit quality since origination as of the acquisition date. This included deterioration in credit metrics, such as delinquency, nonaccrual status or risk ratings as well as certain loans within designated industries of concern that have been negatively impacted by COVID-19. Additionally, it was determined that 10.1% of the Farmers National loan portfolio had more-than-insignificant deterioration in credit quality since origination as of the February acquisition date. These were primarily delinquent loans as of February 14, 2020, or loans that Farmers National had classified as nonaccrual or troubled debt restructuring (“TDR”) prior to the Company's acquisition. As of August 15, 2020 As of February 14, 2020 Franklin Financial Network, Inc. FNB Financial Corp. Purchased credit-deteriorated loans Principal balance $ 693,999 $ 18,964 Allowance for credit losses at acquisition (24,831) (669) Net premium attributable to other factors 8,810 63 Loans purchased credit-deteriorated fair value $ 677,978 $ 18,358 Loans recognized through acquisition that have not experienced more-than-insignificant credit deterioration since origination are initially recognized at the purchase price. Expected credit losses are measured under CECL through the provision for credit losses. The Company recorded provisions for credit losses in the amounts of $52,822 and $2,885 as of August 15, 2020 and February 14, 2020, respectively, in the income statement related to estimated credit losses on non-PCD loans from Franklin and Farmers National, respectively. Additionally, the Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives. The Company recorded an increase in provision for credit losses from unfunded commitments of $10,499 as of August 15, 2020 related to the Franklin acquisition. Pro forma financial information (unaudited) The results of operations of the acquisitions have been included in the Company's consolidated financial statements prospectively beginning on the date of each acquisition. The acquisitions have been fully integrated with the Company's existing operations. Accordingly, post-acquisition net interest income, total revenues, and net income are not discernible. The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three months ended March 31, 2020, as though the Franklin and Farmers National acquisitions had been completed as of January 1, 2019. The unaudited estimated pro forma information combines the historical results of the mergers with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. Merger expenses are reflected in the period they were incurred. The pro forma information is not indicative of what would have occurred had the transactions taken place on January 1, 2019 and does not include the effect of cost-saving or revenue-enhancing strategies. Three Months Ended March 31, 2020 Net interest income $ 84,742 Total revenues $ 133,597 Net loss $ (474) |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities | Investment securities: The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2021 and December 31, 2020: March 31, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities Mortgage-backed securities - residential $ 834,335 $ 10,971 $ (6,598) $ — $ 838,708 Mortgage-backed securities - commercial 19,888 757 (10) — 20,635 Municipal securities 334,730 14,515 (469) — 348,776 U.S. Treasury securities 14,480 96 — — 14,576 Corporate securities 2,500 — (17) — 2,483 Total $ 1,205,933 $ 26,339 $ (7,094) $ — $ 1,225,178 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 2,000 $ 3 $ — $ — $ 2,003 Mortgage-backed securities - residential 760,099 14,040 (803) — 773,336 Mortgage-backed securities - commercial 20,226 1,362 — — 21,588 Municipal securities 336,543 19,806 (20) — 356,329 U.S. Treasury securities 16,480 148 — — 16,628 Corporate securities 2,500 17 (1) — 2,516 Total $ 1,137,848 $ 35,376 $ (824) $ — $ 1,172,400 The components of amortized cost for debt securities on the consolidated balance sheets excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of March 31, 2021 and December 31, 2020, total accrued interest receivable on debt securities was $4,380 and $4,540, respectively. As of March 31, 2021 and December 31, 2020, the Company had $4,667 and $4,591, respectively, in marketable equity securities recorded at fair value, respectively. Securities pledged at March 31, 2021 and December 31, 2020 had carrying amounts of $869,390 and $804,821, 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. At March 31, 2021 and December 31, 2020, there were no trade date payables that related to purchases settled after period end. The amortized cost and fair value of debt securities by contractual maturity at March 31, 2021 and December 31, 2020 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, December 31, 2021 2020 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 36,486 $ 36,660 $ 35,486 $ 35,662 Due in one to five years 14,008 21,113 24,278 24,684 Due in five to ten years 36,838 38,377 40,038 41,332 Due in over ten years 264,378 269,685 257,721 275,798 351,710 365,835 357,523 377,476 Mortgage-backed securities - residential 834,335 838,708 760,099 773,336 Mortgage-backed securities - commercial 19,888 20,635 20,226 21,588 Total debt securities $ 1,205,933 $ 1,225,178 $ 1,137,848 $ 1,172,400 Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended March 31, 2021 2020 Proceeds from sales $ — $ — Proceeds from maturities, prepayments and calls 61,040 27,657 Gross realized gains 7 — Gross realized losses — — Additionally, net unrealized gains on equity securities of $76 and $63 were recognized in the three months ended March 31, 2021 and 2020, respectively. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Mortgage-backed securities - residential $ 402,455 $ (6,598) $ — $ — $ 402,455 $ (6,598) Mortgage-backed securities - commercial 20,636 (10) — — 20,636 (10) Municipal securities 60,771 (469) — — 60,771 (469) Corporate securities 1,983 (17) — — 1,983 (17) Total $ 485,845 $ (7,094) $ — $ — $ 485,845 $ (7,094) December 31, 2020 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 182,012 $ (803) $ — $ — $ 182,012 $ (803) Municipal securities 3,184 (20) — — 3,184 (20) Corporate Securities 499 (1) 499 (1) Total $ 185,695 $ (824) $ — $ — $ 185,695 $ (824) As of March 31, 2021 and December 31, 2020, the Company’s securities portfolio consisted of 511 and 514 securities, 42 and 16 of which were in an unrealized loss position, respectively. |
Loans and allowance for credit
Loans and allowance for credit losses | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans and allowance for credit losses | Loans and allowance for credit losses: Loans outstanding at March 31, 2021 and December 31, 2020, by class of financing receivable are as follows: March 31, December 31, 2021 2020 Commercial and industrial (1) $ 1,292,530 $ 1,346,122 Construction 1,120,585 1,222,220 Residential real estate: 1-to-4 family mortgage 1,078,618 1,089,270 Residential line of credit 394,510 408,211 Multi-family mortgage 271,839 175,676 Commercial real estate: Owner occupied 936,473 924,841 Non-owner occupied 1,652,638 1,598,979 Consumer and other 300,149 317,640 Gross loans 7,047,342 7,082,959 Less: Allowance for credit losses (157,954) (170,389) Net loans $ 6,889,388 $ 6,912,570 (1) Includes $145,697 and $212,645 of loans originated as part of the Paycheck Protection Program ("PPP") as of March 31, 2021 and December 31, 2020, established by the Coronavirus Aid, Relief and Economic Security ("CARES") Act, in response to the COVID-19 pandemic. The PPP is administered by the Small Business Administration (“SBA”); loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. As of March 31, 2021 and December 31, 2020, $1,306,484 and $1,248,857, respectively, of qualifying residential mortgage loans (including loans held for sale) and $1,508,068 and $1,532,749, 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. Additionally, as of March 31, 2021 and December 31, 2020, $2,215,100 and $2,463,281, respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. The components of amortized cost for loans on the consolidated balance sheet excludes accrued interest receivable as the Company elected to present accrued interest receivable separately on the balance sheet. As of March 31, 2021 and December 31, 2020, total accrued interest receivable on loans was $38,987 and $38,316, respectively. Allowance for Credit Losses The Company estimated the allowance for credit losses under a current expected credit loss model as of March 31, 2021 and December 31, 2020. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; TDRs and reasonably expected TDRs. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs use the same methodology as TDRs. In cases where the expected credit loss can only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance is measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. The allowance for credit losses on a TDR or a reasonably expected TDR is calculated individually using a discounted cash flow methodology, unless the loan is deemed to be collateral dependent or foreclosure is probable. The allowance for credit losses showed a reversal of provision for credit losses and a decrease in estimated required allowance for credit losses as of March 31, 2021 when compared to December 31, 2020. During the three months ended March 31, 2021, the Company performed qualitative evaluations with the Company's established qualitative framework, weighting the impact of the current economic outlook, status of federal government stimulus programs, and other considerations, in order to identify specific industries or borrowers seeing credit improvement or deterioration specific to the COVID-19 pandemic. This decrease in estimated required reserve was a result of improving macroeconomic variables incorporated into the Company's reasonable and supportable forecasts when compared to December 31, 2020. The following provides the changes in the allowance for credit losses by class of financing receivable for the three months ended March 31, 2021 and 2020: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2021 Beginning balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 Provision for credit losses 43 (19,826) 461 (1,257) 4,483 (1,253) 6,032 (315) (11,632) Recoveries of loans previously charged-off 129 — 24 6 — 13 — 195 367 Loans charged off (277) (29) (133) (15) — — — (716) (1,170) Ending balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2020 Beginning balance - December 31, 2019 $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 Impact of adopting ASC 326 on non-purchased credit deteriorated loans 5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 Impact of adopted ASC 326 on purchased credit deteriorated loans 82 150 421 (3) — 162 184 (438) 558 Provision for loan losses 1,829 10,954 1,664 1,985 1,444 3,038 5,935 1,115 27,964 Recoveries of loans previously charged-off 88 — 24 15 — 14 — 193 334 Loans charged off (1,234) — (242) — — (209) — (726) (2,411) Initial allowance on loans purchased with deteriorated credit quality 11 11 107 3 — 54 443 40 669 Ending balance - $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 The following tables provides the amount of the allowance for credit losses by class of financing receivable disaggregated by measurement methodology as of March 31, 2021 and December 31, 2020: March 31, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 354 $ 96 $ — $ 8 $ — $ 70 $ 694 $ 1 $ 1,223 Collectively evaluated for credit loss 13,609 36,013 17,787 8,872 11,103 2,952 35,414 9,747 135,497 Purchased credit deteriorated 680 2,513 1,785 388 554 587 14,071 656 21,234 Ending balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 December 31, 2020 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 373 $ 95 $ — $ 9 $ — $ 30 $ 1,531 $ 1 $ 2,039 Collectively evaluated for credit loss 13,493 54,065 17,206 10,031 6,326 4,062 33,706 10,516 149,405 Purchased credit deteriorated 882 4,317 2,014 494 848 757 8,910 723 18,945 Ending balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 The following table provides the amount of loans by class of financing receivable disaggregated by measurement methodology as of March 31, 2021, and December 31, 2020: March 31, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 13,833 $ 6,290 $ 1,099 $ 412 $ — $ 12,797 $ 7,279 $ 36 $ 41,746 Collectively evaluated for credit loss 1,226,554 1,056,972 986,455 376,411 260,996 828,789 1,325,198 286,498 6,347,873 Purchased credit deteriorated 52,143 57,323 91,064 17,687 10,843 94,887 320,161 13,615 657,723 Ending balance - March 31, 2021 $ 1,292,530 $ 1,120,585 $ 1,078,618 $ 394,510 $ 271,839 $ 936,473 $ 1,652,638 $ 300,149 $ 7,047,342 December 31, 2020 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 15,578 $ 4,851 $ 848 $ 412 $ — $ 7,846 $ 8,631 $ 39 $ 38,205 Collectively evaluated for credit loss 1,270,058 1,140,634 987,142 387,250 156,447 813,151 1,272,203 302,983 6,329,868 Purchased credit deteriorated 60,486 76,735 101,280 20,549 19,229 103,844 318,145 14,618 714,886 Ending balance - December 31, 2020 $ 1,346,122 $ 1,222,220 $ 1,089,270 $ 408,211 $ 175,676 $ 924,841 $ 1,598,979 $ 317,640 $ 7,082,959 Credit Quality 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 that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately performing and collateralized and which management believes do not have conditions that have occurred or may occur that would result in the loan being downgraded into an inferior category. The Pass category also includes loans rated as Watch, which include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior 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. Classified. Loans included in the Classified category include loans rated as Substandard and Doubtful. 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 classified as Doubtful, which have all the weaknesses inherent in those classified as classified, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The total amortized cost of loans rated as Doubtful were insignificant for all periods presented. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes. The following tables present the credit quality of our loan portfolio by year of origination as of March 31, 2021 and December 31, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of March 31, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 47,458 $ 264,285 $ 177,250 $ 67,564 $ 49,794 $ 80,524 $ 568,385 $ 1,255,260 Classified 230 2,719 2,353 11,084 3,136 8,333 9,415 37,270 Total 47,688 267,004 179,603 78,648 52,930 88,857 577,800 1,292,530 Construction Pass 87,958 446,596 263,730 50,161 39,430 120,595 102,600 1,111,070 Classified — — 2,332 3,950 127 3,106 — 9,515 Total 87,958 446,596 266,062 54,111 39,557 123,701 102,600 1,120,585 Residential real estate: 1-to-4 family mortgage Pass 81,106 245,371 150,194 111,676 87,975 379,183 — 1,055,505 Classified 201 1,241 1,771 3,200 5,103 11,597 — 23,113 Total 81,307 246,612 151,965 114,876 93,078 390,780 — 1,078,618 Residential line of credit Pass — — — — — — 389,110 389,110 Classified — — — — — — 5,400 5,400 Total — — — — — — 394,510 394,510 Multi-family mortgage Pass 44,220 29,241 76,432 9,548 39,549 62,665 10,129 271,784 Classified — — — — — 55 — 55 Total 44,220 29,241 76,432 9,548 39,549 62,720 10,129 271,839 Commercial real estate: Owner occupied Pass 32,420 141,912 192,702 98,263 94,382 290,146 58,519 908,344 Classified — — 966 2,398 6,240 13,714 4,811 28,129 Total 32,420 141,912 193,668 100,661 100,622 303,860 63,330 936,473 Non-owner occupied Pass 92,161 170,606 205,565 332,674 203,164 562,311 38,934 1,605,415 Classified — — 2,179 24,917 4,601 15,526 — 47,223 Total 92,161 170,606 207,744 357,591 207,765 577,837 38,934 1,652,638 Consumer and other loans Pass 17,054 70,902 49,042 38,486 24,630 79,975 14,177 294,266 Classified — 141 270 1,135 1,012 2,901 424 5,883 Total 17,054 71,043 49,312 39,621 25,642 82,876 14,601 300,149 Total Pass 402,377 1,368,913 1,114,915 708,372 538,924 1,575,399 1,181,854 6,890,754 Classified 431 4,101 9,871 46,684 20,219 55,232 20,050 156,588 Total $ 402,808 $ 1,373,014 $ 1,124,786 $ 755,056 $ 559,143 $ 1,630,631 $ 1,201,904 $ 7,047,342 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 339,305 $ 186,460 $ 71,110 $ 60,362 $ 38,488 $ 45,265 $ 565,786 $ 1,306,776 Classified 2,501 2,688 11,227 4,425 6,582 1,277 10,646 39,346 Total 341,806 189,148 82,337 64,787 45,070 46,542 576,432 1,346,122 Construction Pass 462,184 391,928 88,687 54,163 41,636 62,903 112,004 1,213,505 Classified 573 1,755 3,178 141 — 3,068 — 8,715 Total 462,757 393,683 91,865 54,304 41,636 65,971 112,004 1,222,220 Residential real estate: 1-to-4 family mortgage Pass 284,530 178,540 165,708 158,484 111,915 165,916 — 1,065,093 Classified 448 1,428 3,806 5,473 3,622 9,400 — 24,177 Total 284,978 179,968 169,514 163,957 115,537 175,316 — 1,089,270 Residential line of credit Pass — — — — — — 402,859 402,859 Classified — — — — — — 5,352 5,352 Total — — — — — — 408,211 408,211 Multi-family mortgage Pass 29,006 13,446 11,843 46,561 28,330 35,339 11,094 175,619 Classified — — — — — 57 — 57 Total 29,006 13,446 11,843 46,561 28,330 35,396 11,094 175,676 Commercial real estate: Owner occupied Pass 141,871 180,856 101,828 110,832 82,640 226,574 53,681 898,282 Classified 44 1,785 2,423 6,074 274 11,226 4,733 26,559 Total 141,915 182,641 104,251 116,906 82,914 237,800 58,414 924,841 Non-owner occupied Pass 166,962 230,942 349,312 221,149 290,370 280,629 38,820 1,578,184 Classified — 2,210 1,502 — — 17,083 — 20,795 Total 166,962 233,152 350,814 221,149 290,370 297,712 38,820 1,598,979 Consumer and other loans Pass 89,906 53,636 41,313 27,669 44,029 39,037 14,828 310,418 Classified 151 565 1,434 1,161 935 2,308 668 7,222 Total 90,057 54,201 42,747 28,830 44,964 41,345 15,496 317,640 Total Pass 1,513,764 1,235,808 829,801 679,220 637,408 855,663 1,199,072 6,950,736 Classified 3,717 10,431 23,570 17,274 11,413 44,419 21,399 132,223 Total $ 1,517,481 $ 1,246,239 $ 853,371 $ 696,494 $ 648,821 $ 900,082 $ 1,220,471 $ 7,082,959 Nonaccrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest. The following tables represents an analysis of the aging by class of financing receivable as of March 31, 2021 and December 31, 2020: March 31, 2021 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,049 $ 73 $ 14,174 $ 1,277,234 $ 1,292,530 Construction 2,269 — 5,584 1,112,732 1,120,585 Residential real estate: 1-to-4 family mortgage 5,333 9,068 6,116 1,058,101 1,078,618 Residential line of credit 1,226 1,195 1,672 390,417 394,510 Multi-family mortgage — — 55 271,784 271,839 Commercial real estate: Owner occupied 503 — 12,872 923,098 936,473 Non-owner occupied 193 67 11,997 1,640,381 1,652,638 Consumer and other 2,583 295 3,068 294,203 300,149 Total $ 13,156 $ 10,698 $ 55,538 $ 6,967,950 $ 7,047,342 December 31, 2020 30-89 days 90 days or Non-accrual Loans current on payments and accruing interest Total Commercial and industrial $ 3,297 $ 330 $ 16,005 $ 1,326,490 $ 1,346,122 Construction 7,607 573 4,053 1,209,987 1,222,220 Residential real estate: 1-to-4 family mortgage 7,058 10,470 5,923 1,065,819 1,089,270 Residential line of credit 3,551 239 1,757 402,664 408,211 Multi-family mortgage — 57 — 175,619 175,676 Commercial real estate: Owner occupied 98 — 7,948 916,795 924,841 Non-owner occupied 915 — 12,471 1,585,593 1,598,979 Consumer and other 4,469 2,027 2,603 308,541 317,640 Total $ 26,995 $ 13,696 $ 50,760 $ 6,991,508 $ 7,082,959 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of March 31, 2021 and December 31, 2020 by class of financing receivable. March 31, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 12,353 $ 1,821 $ 365 Construction 4,513 1,071 134 Residential real estate: 1-to-4 family mortgage 2,122 3,994 95 Residential line of credit 846 826 26 Multi-family mortgage — 55 9 Commercial real estate: Owner occupied 10,059 2,813 91 Non-owner occupied 6,549 5,448 718 Consumer and other — 3,068 160 Total $ 36,442 $ 19,096 $ 1,598 December 31, 2020 Non-accrual Non-accrual Related Commercial and industrial $ 13,960 $ 2,045 $ 383 Construction 3,061 992 131 Residential real estate: 1-to-4 family mortgage 3,048 2,875 84 Residential line of credit 854 903 31 Multi-family mortgage — — — Commercial real estate: Owner occupied 7,172 776 63 Non-owner occupied 4,566 7,905 1,711 Consumer and other — 2,603 147 Total $ 32,661 $ 18,099 $ 2,550 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Commercial and industrial $ 114 $ 152 Construction 14 27 Residential real estate: 1-to-4 family mortgage 18 7 Residential line of credit 18 1 Multi-family mortgage 1 — Commercial real estate: Owner occupied 131 21 Non-owner occupied 89 19 Total $ 385 $ 227 Accrued interest receivable written off on as an adjustment to interest income amounted to $465 and $120 for the three months ended March 31, 2021 and 2020, respectively. Troubled debt restructurings As of March 31, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $26,095 and $15,988, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. Of these loans, $8,759 and $8,279 were classified as non-accrual loans as of March 31, 2021 and December 31, 2020, respectively. The Company has calculated $2,083 and $310 in allowances for credit losses for those loans at March 31, 2021 and December 31, 2020, respectively. Unfunded loan commitments related to these loans totaled $95 as of March 31, 2021. There were no commitments to extend any additional funds on troubled debt restructurings as of December 31, 2020. The following tables present the financial effect of TDRs recorded during the periods indicated. Three Months Ended March 31, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 107 $ 107 $ — Commercial real estate: Non-owner occupied 1 11,997 11,997 $ — Total 2 $ 12,104 $ 12,104 $ — Three Months Ended March 31, 2020 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 $ 64 $ 64 $ — Total 1 $ 64 $ 64 $ — 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, 2021 and 2020. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. 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. The terms of certain other loans were modified during the three months ended March 31, 2021 and 2020 that did not meet the definition of a TDR. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments. Collateral Dependent Loans For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. March 31, 2021 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ 1,449 $ 11,770 $ 230 Construction 5,513 — — Residential real estate: 1-to-4 family mortgage 1,725 — — Residential line of credit 1,256 — 8 Multi-family mortgage — 485 — Commercial real estate: Owner occupied 13,451 — 69 Non-owner occupied 11,781 — 694 Consumer and other — — — Total $ 35,175 $ 12,255 $ 1,001 December 31, 2020 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ — $ 1,728 $ 117 Construction 3,877 — — Residential real estate: 1-to-4 family mortgage 226 — — Residential line of credit 1,174 — 9 Multi-family mortgage — — — Commercial real estate: Owner occupied 3,391 — 30 Non-owner occupied 8,164 — 1,531 Consumer and other — — — Total $ 16,832 $ 1,728 $ 1,687 Deferrals Program included in COVID-19 Relief The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for executed deferrals remaining on deferral status as of March 31, 2021 or December 31, 2020, in connection with Company's COVID-19 relief programs. These deferrals typically ranged from sixty March 31, 2021 December 31, 2020 % of Loans % of Loans Commercial and industrial $ 2,041 0.2 % $ 7,118 0.5 % Construction 2,247 0.2 % 1,918 0.2 % Residential real estate: 1-to-4 family mortgage 11,002 1.0 % 19,201 1.8 % Residential line of credit 268 0.1 % 204 — % Multi-family mortgage 2,167 0.8 % 3,305 1.9 % Commercial real estate: Owner occupied 7,276 0.8 % 19,815 2.1 % Non-owner occupied 117,004 7.1 % 139,590 8.7 % Consumer and other 10,158 3.4 % 11,366 3.6 % Total $ 152,163 2.2 % $ 202,517 2.9 % |
Other real estate owned
Other real estate owned | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020: Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 12,111 $ 18,939 Transfers from loans 1,395 365 Transfers to premises and equipment — (841) Proceeds from sale of other real estate owned (2,495) (1,442) Gain on sale of other real estate owned 828 175 Loans provided for sales of other real estate owned (330) — Write-downs and partial liquidations (332) (124) Balance at end of period $ 11,177 $ 17,072 Foreclosed residential real estate properties totaled $1,281 and $1,890 as of March 31, 2021 and December 31, 2020, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $105 and $167 at March 31, 2021 and December 31, 2020, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases: As of March 31, 2021, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 48 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 34 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant. Many 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 and fixed rent escalations are included in the right-of-use ("ROU") asset and lease liability. During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease. Information related to the Company's leases is presented below as of March 31, 2021 and December 31, 2020: March 31, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 48,453 $ 49,537 Finance leases Premises and equipment, net 1,560 1,588 Total right-of-use assets $ 50,013 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 54,232 $ 55,187 Finance leases Borrowings 1,576 1,598 Total lease liabilities $ 55,808 $ 56,785 Weighted average remaining lease term (in years) - operating 12.1 12.2 Weighted average remaining lease term (in years) - finance 14.1 14.4 Weighted average discount rate - operating 2.66 % 2.65 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended March 31, Classification 2021 2020 Operating lease costs Amortization of right-of-use asset Occupancy and equipment $ 1,939 $ 1,289 Short-term lease cost Occupancy and equipment 87 136 Variable lease cost Occupancy and equipment 235 138 Lease impairment Occupancy and equipment 38 — Finance lease costs Interest on lease liabilities Interest expense on borrowings 6 — Amortization of right-of-use asset Occupancy and equipment 28 — Total lease cost $ 2,333 $ 1,563 The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2021 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2022 $ 8,037 $ 114 March 31, 2023 7,339 117 March 31, 2024 6,190 118 March 31, 2025 5,444 120 March 31, 2026 4,899 122 Thereafter 33,008 1,194 Total undiscounted future minimum lease payments 64,917 1,785 Less: imputed interest (10,685) (209) Lease liability $ 54,232 $ 1,576 |
Leases | Leases: As of March 31, 2021, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 48 operating leases and 1 finance lease currently have remaining terms varying from greater than one year to 34 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant. Many 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 and fixed rent escalations are included in the right-of-use ("ROU") asset and lease liability. During the year ended December 31, 2020, the Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The building is currently under construction and anticipated to be completed in late 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, in connection with this lease. Information related to the Company's leases is presented below as of March 31, 2021 and December 31, 2020: March 31, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 48,453 $ 49,537 Finance leases Premises and equipment, net 1,560 1,588 Total right-of-use assets $ 50,013 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 54,232 $ 55,187 Finance leases Borrowings 1,576 1,598 Total lease liabilities $ 55,808 $ 56,785 Weighted average remaining lease term (in years) - operating 12.1 12.2 Weighted average remaining lease term (in years) - finance 14.1 14.4 Weighted average discount rate - operating 2.66 % 2.65 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended March 31, Classification 2021 2020 Operating lease costs Amortization of right-of-use asset Occupancy and equipment $ 1,939 $ 1,289 Short-term lease cost Occupancy and equipment 87 136 Variable lease cost Occupancy and equipment 235 138 Lease impairment Occupancy and equipment 38 — Finance lease costs Interest on lease liabilities Interest expense on borrowings 6 — Amortization of right-of-use asset Occupancy and equipment 28 — Total lease cost $ 2,333 $ 1,563 The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2021 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2022 $ 8,037 $ 114 March 31, 2023 7,339 117 March 31, 2024 6,190 118 March 31, 2025 5,444 120 March 31, 2026 4,899 122 Thereafter 33,008 1,194 Total undiscounted future minimum lease payments 64,917 1,785 Less: imputed interest (10,685) (209) Lease liability $ 54,232 $ 1,576 |
Mortgage servicing rights
Mortgage servicing rights | 3 Months Ended |
Mar. 31, 2021 | |
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 the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Carrying value at beginning of period $ 79,997 $ 75,521 Capitalization 11,594 7,796 Change in fair value: Due to pay-offs/pay-downs (9,321) (4,643) Due to change in valuation inputs or assumptions 21,922 (16,093) Carrying value at end of period $ 104,192 $ 62,581 The following table summarizes servicing income and expense, which are included in 'Mortgage banking income' and 'Other noninterest expense', respectively, within the Mortgage segment operating results for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Servicing income: Servicing income $ 6,931 $ 5,018 Change in fair value of mortgage servicing rights 12,601 (20,736) Change in fair value of derivative hedging instruments (17,864) 14,868 Servicing income 1,668 (850) Servicing expenses 2,532 1,401 Net servicing loss (1) $ (864) $ (2,251) (1) Excludes benefit of custodial service related noninterest-bearing deposits held by the Bank. Data and key economic assumptions related to the Company’s mortgage servicing rights as of March 31, 2021 and December 31, 2020 are as follows: March 31, December 31, 2021 2020 Unpaid principal balance $ 10,113,716 $ 9,787,657 Weighted-average prepayment speed (CPR) 8.04 % 14.07 % Estimated impact on fair value of a 10% increase $ (4,247) $ (4,493) Estimated impact on fair value of a 20% increase $ (8,191) $ (8,599) Discount rate 11.81 % 11.49 % Estimated impact on fair value of a 100 bp increase $ (4,166) $ (2,942) Estimated impact on fair value of a 200 bp increase $ (8,024) $ (5,674) Weighted-average coupon interest rate 3.45 % 3.58 % Weighted-average servicing fee (basis points) 28 28 Weighted-average remaining maturity (in months) 329 328 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. As of March 31, 2021 and December 31, 2020, mortgage escrow deposits totaled to $170,861 and $147,957, respectively. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 2020 Current $ 5,949 $ 8,168 Deferred 9,639 (8,088) Total $ 15,588 $ 80 The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Federal taxes calculated at statutory rate $ 14,377 21.0 % $ 173 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,750 2.6 % (132) (16.0) % Expense (benefit) from equity based compensation (221) (0.3) % 139 16.8 % Municipal interest income, net of interest disallowance (424) (0.6) % (264) (32.0) % Bank owned life insurance (84) (0.1) % (18) (2.2) % Merger costs — — % 131 15.9 % Section 162(m) limitation 227 0.3 % — — % Other (37) (0.1) % 51 6.2 % Income tax expense, as reported $ 15,588 22.8 % $ 80 9.7 % As of August 15, 2020, the Company acquired $8,346 of net operating losses from Franklin. The net operating loss carryforwards can be used to offset taxable income in future periods and reduce income tax liabilities in those future periods. While net operating losses are subject to certain annual utilization limits under IRC Section 382, the Company believes the net operating losses carryforward will be realized based on the projected annual limitation and the length of the net operating loss carryover period. The Company's determination of the realization of the net deferred tax asset is based on its assessment of all available positive and negative evidence. The net operating loss carryforward is set to expire as of December 31, 2030. The Company is subject to Internal Revenue Code Section 162(m), which limits the deductibility of compensation of certain individuals. The restricted stock unit plans that existed prior to the corporation being public will have payments in 2021 after the reliance period defined in the Section 162 regulations. Under the limitations of IRC Section 162(m), the Company will not be able to realize the deferred tax asset established on certain restricted stock units granted to these covered individuals. Therefore, a valuation allowance was established in the first quarter of 2021 for the Company's inability to take the benefit of the exercise of the restricted stock units. It is the Company’s policy to apply the IRC Section 162(m) limitations to stock based compensation first; therefore, the first quarter 2021 nondeductible IRC Section 162(m) expense was related to cash compensation and expense on the exercised restricted stock units that were above the limit as defined in IRC Section 162(m). The components of the net deferred tax assets at March 31, 2021 and December 31, 2020, are as follows: March 31, December 31 2021 2020 Deferred tax assets: Allowance for credit losses $ 44,590 $ 48,409 Operating lease liabilities 14,247 14,496 Federal net operating loss 1,753 1,753 Deferred compensation 10,385 8,872 Unrealized loss on cash flow hedges 387 499 Other 18,804 19,101 Subtotal 90,166 93,130 Deferred tax liabilities: FHLB stock dividends $ (561) $ (561) Operating leases - right of use assets (12,912) (13,197) Depreciation (7,235) (7,491) Amortization of core deposit intangibles (510) (684) Unrealized gain on equity securities (3,785) (17) Unrealized gain on debt securities (5,193) (13,027) Mortgage servicing rights (27,107) (20,803) Goodwill (11,912) (11,301) Other (10,140) (9,653) Subtotal (79,355) (76,734) Net deferred tax assets $ 10,811 $ 16,396 |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 of 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, 2021 2020 Commitments to extend credit, excluding interest rate lock commitments $ 2,613,370 $ 2,719,996 Letters of credit 49,578 67,598 Balance at end of period $ 2,662,948 $ 2,787,594 As of March 31, 2021 and December 31, 2020, loan commitments included above with floating interest rates totaled $1.92 billion and $1.65 billion, respectively. The Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives. When applying the CECL methodology to estimate expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. The table below presents activity within the allowance for credit losses on unfunded commitments for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 16,378 $ — Impact of CECL adoption on provision for credit losses on unfunded — 2,947 Increase in provision for credit losses from unfunded commitments acquired in business combination — 70 Provision for credit losses on unfunded commitments (2,222) 1,601 Balance at end of period $ 14,156 $ 4,618 In connection with the sale of mortgage loans to third party investors, the Company makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Company 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 $708 and $2,799 for the three months ended March 31, 2021 and 2020, 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, 2021 2020 Balance at beginning of period $ 5,928 $ 3,529 Provision for loan repurchases or indemnifications 440 372 Losses on loans repurchased or indemnified (84) (72) Balance at end of period $ 6,284 $ 3,829 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2021 | |
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 between 45 to 90 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 Mortgage servicing rights ("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 subordinated debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest equal to 3-month LIBOR and pays a weighted average fixed rate of interest of 2.08%. 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, 2021 and December 31, 2020, the fair value of these contracts resulted in liability balances of $1,481 and $1,909, respectively. In July 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 three four The following tables provide details on the Company’s derivative financial instruments as of the dates presented: March 31, 2021 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 685,330 $ 26,419 $ 26,272 Forward commitments 1,575,965 25,835 — Interest rate-lock commitments 1,058,779 12,949 — Futures contracts 413,200 — 2,999 Total $ 3,733,274 $ 65,203 $ 29,271 December 31, 2020 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 606,878 $ 34,547 $ 34,317 Forward commitments 1,358,328 — 11,633 Interest rate-lock commitments 1,191,621 34,391 — Futures contracts 375,400 — 383 Total $ 3,532,227 $ 68,938 $ 46,333 March 31, 2021 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,481 December 31, 2020 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,909 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, 2021 2020 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ (21,442) $ 20,462 Forward commitments 43,258 (26,457) Futures contracts (16,332) 10,911 Total $ 5,484 $ 4,916 Three Months Ended March 31, 2021 2020 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $— and $52 $ — $ 147 Loss included in interest expense on borrowings (137) (12) Total $ (137) $ 135 The following discloses the amount included in other comprehensive income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2021 2020 Designated as hedging: Amount of gain (loss) recognized in other comprehensive income, net of tax $112 and $403 $ 316 $ (1,145) Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheets when the “right of offset” 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, however the Company has not elected to offset such financial instruments in the consolidated balance sheets. The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Gross amounts recognized $ 5,901 $ 3,863 $ 21,416 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 5,901 3,863 21,416 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 5,360 857 5,360 857 Less: financial collateral pledged — — 16,056 33,194 Net amounts $ 541 $ 3,006 $ — $ — 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, 2021 and December 31, 2020, the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $57,123 and $57,985, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the consolidated balance sheets. |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 for the mortgage portfolio, that is, using Level 2 inputs. Commercial loans held for sale at fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, credit metrics and collateral value when appropriate. As such, these are considered Level 3. 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 (“OREO”)-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-MSRs 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, MSRs are considered Level 3. Collateral dependent loans-loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral dependent 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, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,895,133 $ 1,895,133 $ — $ — $ 1,895,133 Investment securities 1,229,845 — 1,229,845 — 1,229,845 Loans, net 6,889,388 — — 7,042,144 7,042,144 Loans held for sale 1,009,762 — 834,779 174,983 1,009,762 Interest receivable 44,393 30 5,376 38,987 44,393 Mortgage servicing rights 104,192 — — 104,192 104,192 Derivatives 65,203 — 65,203 — 65,203 Financial liabilities: Deposits: Without stated maturities $ 8,876,456 $ 8,876,456 $ — $ — $ 8,876,456 With stated maturities 1,380,430 — 1,391,861 — 1,391,861 Securities sold under agreement to repurchase and federal funds sold 29,234 29,234 — — 29,234 Subordinated debt 149,369 — — 150,954 150,954 Other borrowings 1,576 — 1,576 — 1,576 Interest payable 4,187 246 3,110 831 4,187 Derivatives 30,752 — 30,752 — 30,752 Fair Value December 31, 2020 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,317,898 $ 1,317,898 $ — $ — $ 1,317,898 Investment securities 1,176,991 — 1,176,991 — 1,176,991 Loans, net 6,912,570 — — 7,058,693 7,058,693 Loans held for sale 899,173 — 683,770 215,403 899,173 Interest receivable 43,603 33 5,254 38,316 43,603 Mortgage servicing rights 79,997 — — 79,997 79,997 Derivatives 68,938 — 68,938 — 68,938 Financial liabilities: Deposits: Without stated maturities $ 8,020,783 $ 8,020,783 $ — $ — $ 8,020,783 With stated maturities 1,437,254 — 1,446,605 — 1,446,605 Securities sold under agreement to repurchase and federal funds sold 32,199 32,199 — — 32,199 Subordinated debt 189,527 — — 192,149 192,149 Other borrowings 16,598 — 16,598 — 16,598 Interest payable 6,772 327 4,210 2,235 6,772 Derivatives 48,242 — 48,242 — 48,242 The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2021 are presented in the following table: March 31, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: Mortgage-backed securities - residential $ — $ 838,708 $ — $ 838,708 Mortgage-backed securities - commercial — 20,635 — 20,635 Municipal securities — 348,776 — 348,776 Treasury securities — 14,576 — 14,576 Corporate securities — 2,483 — 2,483 Equity securities — 4,667 — 4,667 Total $ — $ 1,229,845 $ — $ 1,229,845 Loans held for sale $ — $ 834,779 $ 174,983 $ 1,009,762 Mortgage servicing rights — — 104,192 104,192 Derivatives — 65,203 — 65,203 Financial Liabilities: Derivatives — 30,752 — 30,752 The balances and levels of the assets measured at fair value on a non-recurring basis at March 31, 2021 are presented in the following table: At March 31, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 3,870 $ 3,870 Collateral dependent loans: Commercial and industrial $ — $ — $ 13,219 $ 13,219 Construction — — 5,513 5,513 Residential real estate: 1-4 family mortgage — — 1,725 1,725 Residential line of credit — — 1,256 1,256 Multifamily — — 485 485 Commercial real estate: Owner occupied — — 13,451 13,451 Non-owner occupied — — 11,781 11,781 Total collateral dependent loans $ — $ — $ 47,430 $ 47,430 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2020 are presented in the following table: At December 31, 2020 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 2,003 $ — $ 2,003 Mortgage-backed securities - residential — 773,336 — 773,336 Mortgage-backed securities - commercial — 21,588 — 21,588 Municipals, tax-exempt — 356,329 — 356,329 Treasury securities — 16,628 — 16,628 Corporate securities — 2,516 — 2,516 Equity securities — 4,591 — 4,591 Total $ — $ 1,176,991 $ — $ 1,176,991 Loans held for sale $ — $ 683,770 $ 215,403 $ 899,173 Mortgage servicing rights — — 79,997 79,997 Derivatives — 68,938 — 68,938 Financial Liabilities: Derivatives — 48,242 — 48,242 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2020 are presented in the following table: At December 31, 2020 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,662 $ 6,662 Collateral dependent loans: Commercial and industrial $ — $ — $ 1,728 $ 1,728 Construction — — 3,877 3,877 Residential real estate: 1-4 family mortgage — — 226 226 Residential line of credit — — 1,174 1,174 Commercial real estate: Owner occupied — — 3,391 3,391 Non-owner occupied — — 8,164 8,164 Total $ — $ — $ 18,560 $ 18,560 The following tables present information as of March 31, 2021 and December 31, 2020 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 Range of Collateral dependent loans $ 47,430 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 3,870 Appraised value of property less costs to sell Discount for costs to sell 0%-15% Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 18,560 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 6,662 Appraised value of property less costs to sell Discount for costs to sell 0%-15% For collateral dependent loans, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan's collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. Collateral dependent 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 credit losses. Appraisals for both collateral dependent 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 following table summarizes the Company's loans held for sale, at fair value, as of the dates presented: March 31, December 31, 2021 2020 Commercial and industrial $ 174,983 $ 215,403 Residential real estate: 1-4 family mortgage 834,779 683,770 Total loans held for sale $ 1,009,762 $ 899,173 Mortgage loans held for sale The Company measures mortgage loans originated for sale at fair value under the fair value option as permitted under ASC 825, "Financial Instruments" ("ASC 825"). Electing to measure these assets at fair value reduces certain timing differences and more accurately 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 of $20,716 resulting from fair value changes of mortgage loans were recorded in income during the three months ended March 31, 2021, compared to net gains of $5,818 during the three months ended March 31, 2020, 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. Government National Mortgage Association (GNMA) optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing and was the original transferor. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet, regardless of whether the Company intends to exercise the buy-back option if the buyback option provides the transferor a more-than-trivial benefit. As of March 31, 2021, and December 31, 2020, there were $143,100 and $151,184, respectively, of delinquent GNMA loans previously sold that the Company did not record on its consolidated balance sheets as 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. The Company’s valuation of mortgage loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these mortgage loans held for sale, valuation adjustments attributable to instrument-specific credit risk is nominal. Commercial loans held for sale The Company also has a portfolio of shared national credits and institutional healthcare loans that were acquired during 2020 in the acquisition of Franklin. These commercial loans are also being measured under the fair value option. As such, these loans are excluded from the allowance for credit losses. The following table sets forth the changes in fair value associated with this portfolio. Three months ended March 31, 2021 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Pay-downs and pay-offs (39,566) — (39,566) Write-offs to discount (2,007) 2,007 — Changes in valuation included in other noninterest income — (853) (853) Carrying value at end of period $ 197,490 $ (22,506) $ 174,984 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 and nonaccrual loans measured at fair value as of March 31, 2021 and December 31, 2020: March 31, 2021 Aggregate Aggregate Difference Mortgage loans held for sale measured at fair value $ 834,779 $ 823,612 $ 11,167 Commercial loans held for sale measured at fair value 162,204 172,702 (10,498) Past due loans of 90 days or more — — — Nonaccrual loans 12,779 24,788 (12,009) December 31, 2020 Mortgage loans held for sale measured at fair value $ 683,770 $ 651,887 $ 31,883 Commercial loans held for sale measured at fair value 208,914 226,867 (17,953) Past due loans of 90 days or more 83 163 (80) Nonaccrual loans 6,406 12,033 (5,627) |
Segment reporting
Segment reporting | 3 Months Ended |
Mar. 31, 2021 | |
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 two distinct delivery channels: retail and ConsumerDirect. Additionally, the Mortgage segment includes the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking. During the three months ended March 31, 2021, the Company re-evaluated its business segments and revised to align all mortgage activities with the Mortgage segment. Previously, the Company had attributed retail mortgage activities originating from geographical locations within the footprint of the Company's branches to the Banking segment. Results for the comparable prior period have been revised to reflect this realignment. The impact of this change on previously reported segment results was the reclassification of mortgage retail footprint total net contribution of $3.5 million from the Banking segment to the Mortgage segment for the three months ended March 31, 2020. The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance, the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment. The following tables provide segment financial information for the years ended March 31, 2021 and 2020 as follows: Three Months Ended March 31, 2021 Banking Mortgage Consolidated Net interest income $ 82,597 $ (21) $ 82,576 Provisions for credit losses (1) (13,854) — (13,854) Mortgage banking income — 60,595 60,595 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,263) (5,263) Other noninterest income 11,398 — 11,398 Depreciation and amortization 1,858 198 2,056 Amortization of intangibles 1,440 — 1,440 Other noninterest expense 52,437 38,765 91,202 Income before income taxes $ 52,114 $ 16,348 $ 68,462 Income tax expense 15,588 Net income applicable to FB Financial Corporation and noncontrolling interest $ 52,874 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 52,874 Total assets $ 10,787,955 $ 1,147,871 $ 11,935,826 Goodwill 242,561 — 242,561 (1) Included $2,222 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three Months Ended March 31, 2020 Banking Mortgage Consolidated Net interest income $ 56,233 $ 16 $ 56,249 Provisions for credit losses (1) 29,565 — 29,565 Mortgage banking income — 38,613 38,613 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,868) (5,868) Other noninterest income 9,955 — 9,955 Depreciation and amortization 1,492 120 1,612 Amortization of intangibles 1,203 — 1,203 Other noninterest expense (3) 41,122 24,622 65,744 Income before income taxes $ (7,194) $ 8,019 $ 825 Income tax expense 80 Net income applicable to FB Financial Corporation $ 745 Total assets $ 6,122,217 $ 533,470 $ 6,655,687 Goodwill 174,859 — 174,859 (1) Includes $1,601 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $3,050 in merger costs in the Banking segment, . 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 is eliminated in consolidation, had a prime interest rate of 3.25% as of both March 31, 2021 and 2020, and is 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 $5,400 and $2,375 for the three months ended March 31, 2021 and 2020, respectively. |
Minimum capital requirements
Minimum capital requirements | 3 Months Ended |
Mar. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [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 and Company are required to maintain minimum capital ratios as outlined in the table below. Additionally, under U.S. Basel III Capital Rules, the decision was made to opt out of including accumulated other comprehensive income in regulatory capital. As of March 31, 2021 and December 31, 2020, the Bank and Company met all capital adequacy requirements to which they are subject. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced a final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period. Actual and required capital amounts and ratios are included below as of the dates indicated. Actual Minimum Capital To be well capitalized March 31, 2021 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,353,195 14.6 % $ 972,054 10.5 % N/A N/A FirstBank 1,316,420 14.2 % 970,431 10.5 % $ 924,220 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,138,657 12.3 % $ 786,901 8.5 % N/A N/A FirstBank 1,121,997 12.1 % 785,587 8.5 % $ 739,376 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,138,657 10.1 % $ 450,971 4.0 % N/A N/A FirstBank 1,121,997 10.0 % 450,889 4.0 % $ 563,611 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,108,657 12.0 % $ 648,036 7.0 % N/A N/A FirstBank 1,121,997 12.1 % 646,954 7.0 % $ 600,743 6.5 % Actual Minimum Capital To be well capitalized December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,358,897 15.0 % $ 952,736 10.5 % N/A N/A FirstBank 1,353,279 14.9 % 951,327 10.5 % $ 906,026 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,090,364 12.0 % $ 771,262 8.5 % N/A N/A FirstBank 1,142,548 12.6 % 770,122 8.5 % $ 724,820 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,090,364 10.0 % $ 435,064 4.0 % N/A N/A FirstBank 1,142,548 10.5 % 435,279 4.0 % $ 544,098 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,060,364 11.7 % $ 635,157 7.0 % N/A N/A FirstBank 1,142,548 12.6 % 634,218 7.0 % $ 588,917 6.5 % |
Stock-based compensation
Stock-based compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based compensation | Stock-Based Compensation Restricted Stock Units 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 the changes in restricted stock units as of and for the three months ended March 31, 2021: Restricted Stock Weighted Balance at beginning of period 1,047,071 $ 26.06 Granted 177,941 43.13 Vested (126,011) 34.63 Forfeited (10,192) 27.72 Balance at end of period 1,088,809 $ 26.56 The total fair value of restricted stock units vested and released was $4,364 and $4,533 for the three months ended March 31, 2021 and 2020, respectively. The weighted average grant date fair value price was $43.13 and $36.71 for the three months ended March 31, 2021 and 2020, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $2,466 and $1,802 for the three months ended March 31, 2021 and 2020, respectively. This included $157 and $147 paid to Company independent directors during the three months ended March 31, 2021 and 2020, respectively, related to independent director grants and compensation elected to be settled in stock. As of March 31, 2021 and December 31, 2020, there was $18,103 and $13,436 of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.7 years and 2.5 years, respectively. As of March 31, 2021 and December 31, 2020, there were 2,188,164 and 2,240,434 shares available for issuance under the 2016-LTIP plan, respectively. At March 31, 2021 and December 31, 2020, there were $651 and $613, respectively, accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying restricted stock units ("RSUs"). Performance Based Restricted Stock Units The following table summarizes information about the changes in performance stock units as of and for the three months ended March 31, 2021: Performance Stock Weighted Balance at beginning of period (unvested) 53,147 36.21 Granted 65,131 43.20 Vested — — Forfeited or expired (485) 36.21 Balance at end of period (unvested) 117,793 39.20 The Company awards performance-based restricted stock units ("PSUs") to executives and other officers and employees. Under the terms of the award, the number of units that will vest and convert to shares of common stock will be based on the extent to which the Company achieves specified performance criteria during the fixed three-year performance period. The number of shares issued upon vesting will range from 0% to 200% of the PSUs granted. The PSUs vest at the end of a three-year period based on average adjusted return on tangible equity as reported, adjusted for unusual gains/losses, merger expenses, and other items as approved by the compensation committee of the Company's board of directors. Compensation expense for the PSUs will be estimated each period based on the fair value of the stock at the grant date and the most probable outcome of the performance condition, adjusted for the passage of time within the vesting period of the awards. The Company granted 65,131 shares of performance based restricted stock units during the three months ended March 31, 2021. The Company recorded compensation cost of $200 and $81 during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company determined the probability of meeting the performance criteria, and recorded compensation cost associated with a 150% vesting, when factoring in the conversion of PSUs to shares of common stock. During the three months ended March 31, 2021. there were 485 forfeitures related to these grants. As of March 31, 2021, maximum unrecognized compensation cost related to the unvested PSUs was $5,895, and the remaining performance period over which the cost could be recognized was 2.5 years. Employee Stock Purchase Plan: The Company maintains 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 worth of common stock in any calendar year). During the three months ended March 31, 2021 and 2020, there were 21,566 and 12,145 shares of common stock issued under the ESPP, respectively. As of March 31, 2021 and 2020, there were 2,357,440 and 2,397,040 shares available for issuance under the ESPP, respectively. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2021 | |
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 is presented below: Loans outstanding at January 1, 2021 $ 24,675 New loans and advances 901 Change in related party status (98) Repayments (2,724) Loans outstanding at March 31, 2021 $ 22,754 Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $20,267 and $23,059 at March 31, 2021 and December 31, 2020, respectively. (B) Deposits: The Bank held deposits from related parties totaling $221,015 and $245,084 as of March 31, 2021 and December 31, 2020, respectively. (C) Leases: The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $45 and $53 in unamortized leasehold improvements related to these leases at March 31, 2021 and December 31, 2020, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $128 for the three months ended March 31, 2021 and 2020, respectively. (D) Aviation time sharing agreement: The Company is a participant to aviation time sharing agreements with entities owned by a certain director of the Company. During the three months ended March 31, 2021 and 2020, the Company made payments of |
Basis of presentation (Policies
Basis of presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Overview and presentation | The unaudited consolidated financial statements, including the notes thereto, 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. |
Reclassifications | 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. |
Earnings per share | Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings available 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 available 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 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 |
Recently adopted accounting policies, Recently adopted accounting standards and Newly issued not yet effective accounting standards | Recently adopted accounting policies: The Company did not modify or adopt any new accounting policies during the three months ended March 31, 2021 that were not disclosed in the Company's 2020 audited consolidated financial statements included on the Form 10-K, other than as described below. During the three months ended March 31, 2021, the Company reevaluated its business segments to align all retail mortgage activities with the Mortgage segment. Previously, the Company assigned retail mortgage activities within the Banking geographical footprint to the Banking segment. See Note 12, "Segment reporting" for additional information on this change. Recently adopted accounting standards: Except as set forth below, the Company did not adopt any new accounting standards that were not disclosed in the Company's 2020 audited consolidated financial statements included on Form 10-K. In January 2021, Financial Accounting Standards Board ("FASB") issued ASU 2021-01, "Reference Rate Reform (Topic 848): Scope". This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. The Company early adopted ASU 2021-01 upon issuance effective January 7, 2021. No contract modifications have been made under the new guidance, therefore the adoption of this update did not impact the Company's financial statements or disclosures. Newly issued not yet effective accounting standards: The Company has reviewed newly issued not yet effective accounting standards and concluded as of March 31, 2021, there are none that are likely to impact the Company's financial statements or disclosures. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Basic and Diluted Earnings Per Common Share Calculation | 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, 2021 2020 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 52,874 $ 745 Dividends paid on and undistributed earnings allocated to participating securities — — Earnings available to common shareholders $ 52,874 $ 745 Weighted average basic shares outstanding 47,278,865 31,257,739 Basic earnings per common share $ 1.12 $ 0.02 Diluted earnings per common share: Earnings available to common shareholders $ 52,874 $ 745 Weighted average basic shares outstanding 47,278,865 31,257,739 Weighted average diluted shares contingently issuable (1) 690,241 476,373 Weighted average diluted shares outstanding 47,969,106 31,734,112 Diluted earnings per common share $ 1.10 $ 0.02 |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the respective acquisition dates: As of August 15, 2020 As of February 14, 2020 Franklin Financial Network, Inc. FNB Financial Corp. ASSETS Cash and cash equivalents $ 284,004 $ 10,774 Investments 373,462 50,594 Mortgage loans held for sale, at fair value 38,740 — Commercial loans held for sale, at fair value 326,206 — Loans held for investment, net of fair value adjustments 2,427,527 182,171 Allowance for credit losses on purchased credit (24,831) (669) Premises and equipment 45,471 8,049 Operating lease right-of-use assets 23,958 14 Mortgage servicing rights 5,111 — Core deposit intangible 7,670 2,490 Other assets 124,571 4,795 Total assets $ 3,631,889 $ 258,218 LIABILITIES Deposits: Noninterest-bearing $ 505,374 $ 63,531 Interest-bearing checking 1,783,379 26,451 Money market and savings 342,093 37,002 Customer time deposits 383,433 82,551 Brokered and internet time deposits 107,452 — Total deposits 3,121,731 209,535 Borrowings 62,435 3,192 Operating lease liabilities 24,330 14 Accrued expenses and other liabilities 12,661 1,754 Total liabilities assumed 3,221,157 214,495 Noncontrolling interests acquired 93 — Net assets acquired $ 410,639 $ 43,723 |
Schedule of Purchased Credit-deteriorated Loans | As of August 15, 2020 As of February 14, 2020 Franklin Financial Network, Inc. FNB Financial Corp. Purchased credit-deteriorated loans Principal balance $ 693,999 $ 18,964 Allowance for credit losses at acquisition (24,831) (669) Net premium attributable to other factors 8,810 63 Loans purchased credit-deteriorated fair value $ 677,978 $ 18,358 |
Schedule of Pro Forma Financial Information (Unaudited) | Three Months Ended March 31, 2020 Net interest income $ 84,742 Total revenues $ 133,597 Net loss $ (474) |
Franklin Financial Network, Inc. | |
Business Acquisition [Line Items] | |
Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired | The following table presents an allocation of the consideration to net assets acquired: Purchase Price: Equity consideration Franklin shares outstanding (1) 15,588,337 Franklin options converted to net shares 62,906 15,651,243 Exchange ratio to FB Financial shares 0.965 FB Financial shares to be issued as merger consideration (2) 15,102,492 Issuance price as of August 15, 2020 $ 29.52 Value of FB Financial stock to be issued as merger consideration $ 445,826 Less: tax withholding on vested restricted stock awards, units and options (3) (1,308) Value of FB Financial stock issued $ 444,518 FB Financial shares issued 15,058,181 Franklin restricted stock units that do not vest on change in control 114,915 Replacement awards issued to Franklin employees 118,776 Fair value of replacement awards $ 3,506 Fair value of replacement awards attributable to pre-combination service $ 674 Cash consideration Total Franklin shares and net shares outstanding 15,651,243 Cash consideration per share $ 2.00 Total cash to be paid to Franklin (4) $ 31,330 Total purchase price $ 477,830 Fair value of net assets acquired 410,639 Goodwill resulting from merger $ 67,191 (1) Franklin shares outstanding includes restricted stock awards and restricted stock units that vested upon change in control. (2) Only factors in whole share issuance. Cash was paid in lieu of fractional shares. (3) Represents the equivalent value of approximately 44,311 shares of FB Financial Corporation stock on August 15, 2020. |
FNB Financial Corp. | |
Business Acquisition [Line Items] | |
Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired | The following table presents the total purchase price, fair value of net assets acquired, and the goodwill as of the acquisition date. Consideration: Net shares issued 954,797 Purchase price per share on February 14, 2020 $ 36.70 Value of stock consideration $ 35,041 Cash consideration paid 15,001 Total purchase price $ 50,042 Fair value of net assets acquired 43,723 Goodwill resulting from merger $ 6,319 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost of Securities and Fair Values | The following tables summarize the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at March 31, 2021 and December 31, 2020: March 31, 2021 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities Mortgage-backed securities - residential $ 834,335 $ 10,971 $ (6,598) $ — $ 838,708 Mortgage-backed securities - commercial 19,888 757 (10) — 20,635 Municipal securities 334,730 14,515 (469) — 348,776 U.S. Treasury securities 14,480 96 — — 14,576 Corporate securities 2,500 — (17) — 2,483 Total $ 1,205,933 $ 26,339 $ (7,094) $ — $ 1,225,178 December 31, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 2,000 $ 3 $ — $ — $ 2,003 Mortgage-backed securities - residential 760,099 14,040 (803) — 773,336 Mortgage-backed securities - commercial 20,226 1,362 — — 21,588 Municipal securities 336,543 19,806 (20) — 356,329 U.S. Treasury securities 16,480 148 — — 16,628 Corporate securities 2,500 17 (1) — 2,516 Total $ 1,137,848 $ 35,376 $ (824) $ — $ 1,172,400 |
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, December 31, 2021 2020 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 36,486 $ 36,660 $ 35,486 $ 35,662 Due in one to five years 14,008 21,113 24,278 24,684 Due in five to ten years 36,838 38,377 40,038 41,332 Due in over ten years 264,378 269,685 257,721 275,798 351,710 365,835 357,523 377,476 Mortgage-backed securities - residential 834,335 838,708 760,099 773,336 Mortgage-backed securities - commercial 19,888 20,635 20,226 21,588 Total debt securities $ 1,205,933 $ 1,225,178 $ 1,137,848 $ 1,172,400 |
Schedule of Sales and Other Dispositions of Available-for-Sale Securities | Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended March 31, 2021 2020 Proceeds from sales $ — $ — Proceeds from maturities, prepayments and calls 61,040 27,657 Gross realized gains 7 — Gross realized losses — — |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: March 31, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Mortgage-backed securities - residential $ 402,455 $ (6,598) $ — $ — $ 402,455 $ (6,598) Mortgage-backed securities - commercial 20,636 (10) — — 20,636 (10) Municipal securities 60,771 (469) — — 60,771 (469) Corporate securities 1,983 (17) — — 1,983 (17) Total $ 485,845 $ (7,094) $ — $ — $ 485,845 $ (7,094) December 31, 2020 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 182,012 $ (803) $ — $ — $ 182,012 $ (803) Municipal securities 3,184 (20) — — 3,184 (20) Corporate Securities 499 (1) 499 (1) Total $ 185,695 $ (824) $ — $ — $ 185,695 $ (824) |
Loans and allowance for credi_2
Loans and allowance for credit losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding at March 31, 2021 and December 31, 2020, by class of financing receivable are as follows: March 31, December 31, 2021 2020 Commercial and industrial (1) $ 1,292,530 $ 1,346,122 Construction 1,120,585 1,222,220 Residential real estate: 1-to-4 family mortgage 1,078,618 1,089,270 Residential line of credit 394,510 408,211 Multi-family mortgage 271,839 175,676 Commercial real estate: Owner occupied 936,473 924,841 Non-owner occupied 1,652,638 1,598,979 Consumer and other 300,149 317,640 Gross loans 7,047,342 7,082,959 Less: Allowance for credit losses (157,954) (170,389) Net loans $ 6,889,388 $ 6,912,570 (1) Includes $145,697 and $212,645 of loans originated as part of the Paycheck Protection Program ("PPP") as of March 31, 2021 and December 31, 2020, established by the Coronavirus Aid, Relief and Economic Security ("CARES") Act, in response to the COVID-19 pandemic. The PPP is administered by the Small Business Administration (“SBA”); loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. |
Schedule of Changes in Allowance for Credit Losses by Class of Financing Receivable | The following provides the changes in the allowance for credit losses by class of financing receivable for the three months ended March 31, 2021 and 2020: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2021 Beginning balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 Provision for credit losses 43 (19,826) 461 (1,257) 4,483 (1,253) 6,032 (315) (11,632) Recoveries of loans previously charged-off 129 — 24 6 — 13 — 195 367 Loans charged off (277) (29) (133) (15) — — — (716) (1,170) Ending balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended March 31, 2020 Beginning balance - December 31, 2019 $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 Impact of adopting ASC 326 on non-purchased credit deteriorated loans 5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 Impact of adopted ASC 326 on purchased credit deteriorated loans 82 150 421 (3) — 162 184 (438) 558 Provision for loan losses 1,829 10,954 1,664 1,985 1,444 3,038 5,935 1,115 27,964 Recoveries of loans previously charged-off 88 — 24 15 — 14 — 193 334 Loans charged off (1,234) — (242) — — (209) — (726) (2,411) Initial allowance on loans purchased with deteriorated credit quality 11 11 107 3 — 54 443 40 669 Ending balance - $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 |
Schedule of Allowance for Credit Losses by Class of Financing Receivable Disaggregated by Measurement Methodology | The following tables provides the amount of the allowance for credit losses by class of financing receivable disaggregated by measurement methodology as of March 31, 2021 and December 31, 2020: March 31, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 354 $ 96 $ — $ 8 $ — $ 70 $ 694 $ 1 $ 1,223 Collectively evaluated for credit loss 13,609 36,013 17,787 8,872 11,103 2,952 35,414 9,747 135,497 Purchased credit deteriorated 680 2,513 1,785 388 554 587 14,071 656 21,234 Ending balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 December 31, 2020 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 373 $ 95 $ — $ 9 $ — $ 30 $ 1,531 $ 1 $ 2,039 Collectively evaluated for credit loss 13,493 54,065 17,206 10,031 6,326 4,062 33,706 10,516 149,405 Purchased credit deteriorated 882 4,317 2,014 494 848 757 8,910 723 18,945 Ending balance - December 31, 2020 $ 14,748 $ 58,477 $ 19,220 $ 10,534 $ 7,174 $ 4,849 $ 44,147 $ 11,240 $ 170,389 |
Schedule of Amount of Loans by Class of Financing Receivable Disaggregated by Measurement Methodology | The following table provides the amount of loans by class of financing receivable disaggregated by measurement methodology as of March 31, 2021, and December 31, 2020: March 31, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 13,833 $ 6,290 $ 1,099 $ 412 $ — $ 12,797 $ 7,279 $ 36 $ 41,746 Collectively evaluated for credit loss 1,226,554 1,056,972 986,455 376,411 260,996 828,789 1,325,198 286,498 6,347,873 Purchased credit deteriorated 52,143 57,323 91,064 17,687 10,843 94,887 320,161 13,615 657,723 Ending balance - March 31, 2021 $ 1,292,530 $ 1,120,585 $ 1,078,618 $ 394,510 $ 271,839 $ 936,473 $ 1,652,638 $ 300,149 $ 7,047,342 December 31, 2020 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 15,578 $ 4,851 $ 848 $ 412 $ — $ 7,846 $ 8,631 $ 39 $ 38,205 Collectively evaluated for credit loss 1,270,058 1,140,634 987,142 387,250 156,447 813,151 1,272,203 302,983 6,329,868 Purchased credit deteriorated 60,486 76,735 101,280 20,549 19,229 103,844 318,145 14,618 714,886 Ending balance - December 31, 2020 $ 1,346,122 $ 1,222,220 $ 1,089,270 $ 408,211 $ 175,676 $ 924,841 $ 1,598,979 $ 317,640 $ 7,082,959 |
Schedule of Credit Quality of Loan Portfolio by Year of Origination | The following tables present the credit quality of our loan portfolio by year of origination as of March 31, 2021 and December 31, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the tables below. As of March 31, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 47,458 $ 264,285 $ 177,250 $ 67,564 $ 49,794 $ 80,524 $ 568,385 $ 1,255,260 Classified 230 2,719 2,353 11,084 3,136 8,333 9,415 37,270 Total 47,688 267,004 179,603 78,648 52,930 88,857 577,800 1,292,530 Construction Pass 87,958 446,596 263,730 50,161 39,430 120,595 102,600 1,111,070 Classified — — 2,332 3,950 127 3,106 — 9,515 Total 87,958 446,596 266,062 54,111 39,557 123,701 102,600 1,120,585 Residential real estate: 1-to-4 family mortgage Pass 81,106 245,371 150,194 111,676 87,975 379,183 — 1,055,505 Classified 201 1,241 1,771 3,200 5,103 11,597 — 23,113 Total 81,307 246,612 151,965 114,876 93,078 390,780 — 1,078,618 Residential line of credit Pass — — — — — — 389,110 389,110 Classified — — — — — — 5,400 5,400 Total — — — — — — 394,510 394,510 Multi-family mortgage Pass 44,220 29,241 76,432 9,548 39,549 62,665 10,129 271,784 Classified — — — — — 55 — 55 Total 44,220 29,241 76,432 9,548 39,549 62,720 10,129 271,839 Commercial real estate: Owner occupied Pass 32,420 141,912 192,702 98,263 94,382 290,146 58,519 908,344 Classified — — 966 2,398 6,240 13,714 4,811 28,129 Total 32,420 141,912 193,668 100,661 100,622 303,860 63,330 936,473 Non-owner occupied Pass 92,161 170,606 205,565 332,674 203,164 562,311 38,934 1,605,415 Classified — — 2,179 24,917 4,601 15,526 — 47,223 Total 92,161 170,606 207,744 357,591 207,765 577,837 38,934 1,652,638 Consumer and other loans Pass 17,054 70,902 49,042 38,486 24,630 79,975 14,177 294,266 Classified — 141 270 1,135 1,012 2,901 424 5,883 Total 17,054 71,043 49,312 39,621 25,642 82,876 14,601 300,149 Total Pass 402,377 1,368,913 1,114,915 708,372 538,924 1,575,399 1,181,854 6,890,754 Classified 431 4,101 9,871 46,684 20,219 55,232 20,050 156,588 Total $ 402,808 $ 1,373,014 $ 1,124,786 $ 755,056 $ 559,143 $ 1,630,631 $ 1,201,904 $ 7,047,342 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 339,305 $ 186,460 $ 71,110 $ 60,362 $ 38,488 $ 45,265 $ 565,786 $ 1,306,776 Classified 2,501 2,688 11,227 4,425 6,582 1,277 10,646 39,346 Total 341,806 189,148 82,337 64,787 45,070 46,542 576,432 1,346,122 Construction Pass 462,184 391,928 88,687 54,163 41,636 62,903 112,004 1,213,505 Classified 573 1,755 3,178 141 — 3,068 — 8,715 Total 462,757 393,683 91,865 54,304 41,636 65,971 112,004 1,222,220 Residential real estate: 1-to-4 family mortgage Pass 284,530 178,540 165,708 158,484 111,915 165,916 — 1,065,093 Classified 448 1,428 3,806 5,473 3,622 9,400 — 24,177 Total 284,978 179,968 169,514 163,957 115,537 175,316 — 1,089,270 Residential line of credit Pass — — — — — — 402,859 402,859 Classified — — — — — — 5,352 5,352 Total — — — — — — 408,211 408,211 Multi-family mortgage Pass 29,006 13,446 11,843 46,561 28,330 35,339 11,094 175,619 Classified — — — — — 57 — 57 Total 29,006 13,446 11,843 46,561 28,330 35,396 11,094 175,676 Commercial real estate: Owner occupied Pass 141,871 180,856 101,828 110,832 82,640 226,574 53,681 898,282 Classified 44 1,785 2,423 6,074 274 11,226 4,733 26,559 Total 141,915 182,641 104,251 116,906 82,914 237,800 58,414 924,841 Non-owner occupied Pass 166,962 230,942 349,312 221,149 290,370 280,629 38,820 1,578,184 Classified — 2,210 1,502 — — 17,083 — 20,795 Total 166,962 233,152 350,814 221,149 290,370 297,712 38,820 1,598,979 Consumer and other loans Pass 89,906 53,636 41,313 27,669 44,029 39,037 14,828 310,418 Classified 151 565 1,434 1,161 935 2,308 668 7,222 Total 90,057 54,201 42,747 28,830 44,964 41,345 15,496 317,640 Total Pass 1,513,764 1,235,808 829,801 679,220 637,408 855,663 1,199,072 6,950,736 Classified 3,717 10,431 23,570 17,274 11,413 44,419 21,399 132,223 Total $ 1,517,481 $ 1,246,239 $ 853,371 $ 696,494 $ 648,821 $ 900,082 $ 1,220,471 $ 7,082,959 |
Schedule of Analysis of Aging by Class of Financing Receivable | The following tables represents an analysis of the aging by class of financing receivable as of March 31, 2021 and December 31, 2020: March 31, 2021 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,049 $ 73 $ 14,174 $ 1,277,234 $ 1,292,530 Construction 2,269 — 5,584 1,112,732 1,120,585 Residential real estate: 1-to-4 family mortgage 5,333 9,068 6,116 1,058,101 1,078,618 Residential line of credit 1,226 1,195 1,672 390,417 394,510 Multi-family mortgage — — 55 271,784 271,839 Commercial real estate: Owner occupied 503 — 12,872 923,098 936,473 Non-owner occupied 193 67 11,997 1,640,381 1,652,638 Consumer and other 2,583 295 3,068 294,203 300,149 Total $ 13,156 $ 10,698 $ 55,538 $ 6,967,950 $ 7,047,342 December 31, 2020 30-89 days 90 days or Non-accrual Loans current on payments and accruing interest Total Commercial and industrial $ 3,297 $ 330 $ 16,005 $ 1,326,490 $ 1,346,122 Construction 7,607 573 4,053 1,209,987 1,222,220 Residential real estate: 1-to-4 family mortgage 7,058 10,470 5,923 1,065,819 1,089,270 Residential line of credit 3,551 239 1,757 402,664 408,211 Multi-family mortgage — 57 — 175,619 175,676 Commercial real estate: Owner occupied 98 — 7,948 916,795 924,841 Non-owner occupied 915 — 12,471 1,585,593 1,598,979 Consumer and other 4,469 2,027 2,603 308,541 317,640 Total $ 26,995 $ 13,696 $ 50,760 $ 6,991,508 $ 7,082,959 |
Schedule of Amortized Cost, Related Allowance and Interest Income of Non-accrual Loans | The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance as of March 31, 2021 and December 31, 2020 by class of financing receivable. March 31, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 12,353 $ 1,821 $ 365 Construction 4,513 1,071 134 Residential real estate: 1-to-4 family mortgage 2,122 3,994 95 Residential line of credit 846 826 26 Multi-family mortgage — 55 9 Commercial real estate: Owner occupied 10,059 2,813 91 Non-owner occupied 6,549 5,448 718 Consumer and other — 3,068 160 Total $ 36,442 $ 19,096 $ 1,598 December 31, 2020 Non-accrual Non-accrual Related Commercial and industrial $ 13,960 $ 2,045 $ 383 Construction 3,061 992 131 Residential real estate: 1-to-4 family mortgage 3,048 2,875 84 Residential line of credit 854 903 31 Multi-family mortgage — — — Commercial real estate: Owner occupied 7,172 776 63 Non-owner occupied 4,566 7,905 1,711 Consumer and other — 2,603 147 Total $ 32,661 $ 18,099 $ 2,550 The following presents interest income recognized on nonaccrual loans for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Commercial and industrial $ 114 $ 152 Construction 14 27 Residential real estate: 1-to-4 family mortgage 18 7 Residential line of credit 18 1 Multi-family mortgage 1 — Commercial real estate: Owner occupied 131 21 Non-owner occupied 89 19 Total $ 385 $ 227 |
Schedule of Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the periods indicated. Three Months Ended March 31, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 107 $ 107 $ — Commercial real estate: Non-owner occupied 1 11,997 11,997 $ — Total 2 $ 12,104 $ 12,104 $ — Three Months Ended March 31, 2020 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 $ 64 $ 64 $ — Total 1 $ 64 $ 64 $ — |
Schedule of Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans | For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. Significant changes in individually assessed reserves are due to changes in the valuation of the underlying collateral in addition to changes in accrual and past due status. March 31, 2021 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ 1,449 $ 11,770 $ 230 Construction 5,513 — — Residential real estate: 1-to-4 family mortgage 1,725 — — Residential line of credit 1,256 — 8 Multi-family mortgage — 485 — Commercial real estate: Owner occupied 13,451 — 69 Non-owner occupied 11,781 — 694 Consumer and other — — — Total $ 35,175 $ 12,255 $ 1,001 December 31, 2020 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ — $ 1,728 $ 117 Construction 3,877 — — Residential real estate: 1-to-4 family mortgage 226 — — Residential line of credit 1,174 — 9 Multi-family mortgage — — — Commercial real estate: Owner occupied 3,391 — 30 Non-owner occupied 8,164 — 1,531 Consumer and other — — — Total $ 16,832 $ 1,728 $ 1,687 |
Schedule of Financing Receivables Under Deferral Program | The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for executed deferrals remaining on deferral status as of March 31, 2021 or December 31, 2020, in connection with Company's COVID-19 relief programs. These deferrals typically ranged from sixty March 31, 2021 December 31, 2020 % of Loans % of Loans Commercial and industrial $ 2,041 0.2 % $ 7,118 0.5 % Construction 2,247 0.2 % 1,918 0.2 % Residential real estate: 1-to-4 family mortgage 11,002 1.0 % 19,201 1.8 % Residential line of credit 268 0.1 % 204 — % Multi-family mortgage 2,167 0.8 % 3,305 1.9 % Commercial real estate: Owner occupied 7,276 0.8 % 19,815 2.1 % Non-owner occupied 117,004 7.1 % 139,590 8.7 % Consumer and other 10,158 3.4 % 11,366 3.6 % Total $ 152,163 2.2 % $ 202,517 2.9 % |
Other real estate owned (Tables
Other real estate owned (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 12,111 $ 18,939 Transfers from loans 1,395 365 Transfers to premises and equipment — (841) Proceeds from sale of other real estate owned (2,495) (1,442) Gain on sale of other real estate owned 828 175 Loans provided for sales of other real estate owned (330) — Write-downs and partial liquidations (332) (124) Balance at end of period $ 11,177 $ 17,072 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Information Related to Company's Leases and Lease Expense | Information related to the Company's leases is presented below as of March 31, 2021 and December 31, 2020: March 31, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 48,453 $ 49,537 Finance leases Premises and equipment, net 1,560 1,588 Total right-of-use assets $ 50,013 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 54,232 $ 55,187 Finance leases Borrowings 1,576 1,598 Total lease liabilities $ 55,808 $ 56,785 Weighted average remaining lease term (in years) - operating 12.1 12.2 Weighted average remaining lease term (in years) - finance 14.1 14.4 Weighted average discount rate - operating 2.66 % 2.65 % Weighted average discount rate - finance 1.76 % 1.76 % The components of total lease expense included in the consolidated statements of income were as follows: Three Months Ended March 31, Classification 2021 2020 Operating lease costs Amortization of right-of-use asset Occupancy and equipment $ 1,939 $ 1,289 Short-term lease cost Occupancy and equipment 87 136 Variable lease cost Occupancy and equipment 235 138 Lease impairment Occupancy and equipment 38 — Finance lease costs Interest on lease liabilities Interest expense on borrowings 6 — Amortization of right-of-use asset Occupancy and equipment 28 — Total lease cost $ 2,333 $ 1,563 |
Schedule of Maturity Analysis of Operating Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2021 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2022 $ 8,037 $ 114 March 31, 2023 7,339 117 March 31, 2024 6,190 118 March 31, 2025 5,444 120 March 31, 2026 4,899 122 Thereafter 33,008 1,194 Total undiscounted future minimum lease payments 64,917 1,785 Less: imputed interest (10,685) (209) Lease liability $ 54,232 $ 1,576 |
Schedule of Maturity of Finance Lease Liabilities | A maturity analysis of operating and finance lease liabilities and a reconciliation of undiscounted cash flows to the total lease liability as of March 31, 2021 is as follows: Operating Finance Leases Lease Lease payments due: March 31, 2022 $ 8,037 $ 114 March 31, 2023 7,339 117 March 31, 2024 6,190 118 March 31, 2025 5,444 120 March 31, 2026 4,899 122 Thereafter 33,008 1,194 Total undiscounted future minimum lease payments 64,917 1,785 Less: imputed interest (10,685) (209) Lease liability $ 54,232 $ 1,576 |
Mortgage servicing rights (Tabl
Mortgage servicing rights (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Schedule of Changes in Mortgage Servicing Rights | Changes in the Company’s mortgage servicing rights were as follows for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Carrying value at beginning of period $ 79,997 $ 75,521 Capitalization 11,594 7,796 Change in fair value: Due to pay-offs/pay-downs (9,321) (4,643) Due to change in valuation inputs or assumptions 21,922 (16,093) Carrying value at end of period $ 104,192 $ 62,581 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense, which are included in 'Mortgage banking income' and 'Other noninterest expense', respectively, within the Mortgage segment operating results for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 Servicing income: Servicing income $ 6,931 $ 5,018 Change in fair value of mortgage servicing rights 12,601 (20,736) Change in fair value of derivative hedging instruments (17,864) 14,868 Servicing income 1,668 (850) Servicing expenses 2,532 1,401 Net servicing loss (1) $ (864) $ (2,251) (1) Excludes benefit of custodial service related noninterest-bearing deposits held by the Bank. |
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, 2021 and December 31, 2020 are as follows: March 31, December 31, 2021 2020 Unpaid principal balance $ 10,113,716 $ 9,787,657 Weighted-average prepayment speed (CPR) 8.04 % 14.07 % Estimated impact on fair value of a 10% increase $ (4,247) $ (4,493) Estimated impact on fair value of a 20% increase $ (8,191) $ (8,599) Discount rate 11.81 % 11.49 % Estimated impact on fair value of a 100 bp increase $ (4,166) $ (2,942) Estimated impact on fair value of a 200 bp increase $ (8,024) $ (5,674) Weighted-average coupon interest rate 3.45 % 3.58 % Weighted-average servicing fee (basis points) 28 28 Weighted-average remaining maturity (in months) 329 328 |
Income taxes (Tables)
Income taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | An allocation of federal and state income taxes between current and deferred portions is presented below: For the Three Months Ended March 31, 2021 2020 Current $ 5,949 $ 8,168 Deferred 9,639 (8,088) Total $ 15,588 $ 80 |
Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes | The following table presents a reconciliation of federal income taxes at the statutory federal rate of 21% to the Company's effective tax rates for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Federal taxes calculated at statutory rate $ 14,377 21.0 % $ 173 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,750 2.6 % (132) (16.0) % Expense (benefit) from equity based compensation (221) (0.3) % 139 16.8 % Municipal interest income, net of interest disallowance (424) (0.6) % (264) (32.0) % Bank owned life insurance (84) (0.1) % (18) (2.2) % Merger costs — — % 131 15.9 % Section 162(m) limitation 227 0.3 % — — % Other (37) (0.1) % 51 6.2 % Income tax expense, as reported $ 15,588 22.8 % $ 80 9.7 % |
Schedule of Net Deferred Tax Assets | The components of the net deferred tax assets at March 31, 2021 and December 31, 2020, are as follows: March 31, December 31 2021 2020 Deferred tax assets: Allowance for credit losses $ 44,590 $ 48,409 Operating lease liabilities 14,247 14,496 Federal net operating loss 1,753 1,753 Deferred compensation 10,385 8,872 Unrealized loss on cash flow hedges 387 499 Other 18,804 19,101 Subtotal 90,166 93,130 Deferred tax liabilities: FHLB stock dividends $ (561) $ (561) Operating leases - right of use assets (12,912) (13,197) Depreciation (7,235) (7,491) Amortization of core deposit intangibles (510) (684) Unrealized gain on equity securities (3,785) (17) Unrealized gain on debt securities (5,193) (13,027) Mortgage servicing rights (27,107) (20,803) Goodwill (11,912) (11,301) Other (10,140) (9,653) Subtotal (79,355) (76,734) Net deferred tax assets $ 10,811 $ 16,396 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | March 31, December 31, 2021 2020 Commitments to extend credit, excluding interest rate lock commitments $ 2,613,370 $ 2,719,996 Letters of credit 49,578 67,598 Balance at end of period $ 2,662,948 $ 2,787,594 |
Schedule of Allowance of Credit Losses on Unfunded Commitments | The table below presents activity within the allowance for credit losses on unfunded commitments for the three months ended March 31, 2021 and 2020: For the Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 16,378 $ — Impact of CECL adoption on provision for credit losses on unfunded — 2,947 Increase in provision for credit losses from unfunded commitments acquired in business combination — 70 Provision for credit losses on unfunded commitments (2,222) 1,601 Balance at end of period $ 14,156 $ 4,618 |
Schedule of Activity in the Repurchase Reserve | The following table summarizes the activity in the repurchase reserve: For the Three Months Ended March 31, 2021 2020 Balance at beginning of period $ 5,928 $ 3,529 Provision for loan repurchases or indemnifications 440 372 Losses on loans repurchased or indemnified (84) (72) Balance at end of period $ 6,284 $ 3,829 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following tables provide details on the Company’s derivative financial instruments as of the dates presented: March 31, 2021 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 685,330 $ 26,419 $ 26,272 Forward commitments 1,575,965 25,835 — Interest rate-lock commitments 1,058,779 12,949 — Futures contracts 413,200 — 2,999 Total $ 3,733,274 $ 65,203 $ 29,271 December 31, 2020 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 606,878 $ 34,547 $ 34,317 Forward commitments 1,358,328 — 11,633 Interest rate-lock commitments 1,191,621 34,391 — Futures contracts 375,400 — 383 Total $ 3,532,227 $ 68,938 $ 46,333 March 31, 2021 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,481 December 31, 2020 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,909 |
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, 2021 2020 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ (21,442) $ 20,462 Forward commitments 43,258 (26,457) Futures contracts (16,332) 10,911 Total $ 5,484 $ 4,916 Three Months Ended March 31, 2021 2020 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $— and $52 $ — $ 147 Loss included in interest expense on borrowings (137) (12) Total $ (137) $ 135 The following discloses the amount included in other comprehensive income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended March 31, 2021 2020 Designated as hedging: Amount of gain (loss) recognized in other comprehensive income, net of tax $112 and $403 $ 316 $ (1,145) |
Schedule of Offsetting Assets | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Gross amounts recognized $ 5,901 $ 3,863 $ 21,416 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 5,901 3,863 21,416 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 5,360 857 5,360 857 Less: financial collateral pledged — — 16,056 33,194 Net amounts $ 541 $ 3,006 $ — $ — |
Schedule of Offsetting Liabilities | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Gross amounts recognized $ 5,901 $ 3,863 $ 21,416 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 5,901 3,863 21,416 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 5,360 857 5,360 857 Less: financial collateral pledged — — 16,056 33,194 Net amounts $ 541 $ 3,006 $ — $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Estimated Fair Values and Carrying Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Fair Value March 31, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,895,133 $ 1,895,133 $ — $ — $ 1,895,133 Investment securities 1,229,845 — 1,229,845 — 1,229,845 Loans, net 6,889,388 — — 7,042,144 7,042,144 Loans held for sale 1,009,762 — 834,779 174,983 1,009,762 Interest receivable 44,393 30 5,376 38,987 44,393 Mortgage servicing rights 104,192 — — 104,192 104,192 Derivatives 65,203 — 65,203 — 65,203 Financial liabilities: Deposits: Without stated maturities $ 8,876,456 $ 8,876,456 $ — $ — $ 8,876,456 With stated maturities 1,380,430 — 1,391,861 — 1,391,861 Securities sold under agreement to repurchase and federal funds sold 29,234 29,234 — — 29,234 Subordinated debt 149,369 — — 150,954 150,954 Other borrowings 1,576 — 1,576 — 1,576 Interest payable 4,187 246 3,110 831 4,187 Derivatives 30,752 — 30,752 — 30,752 Fair Value December 31, 2020 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,317,898 $ 1,317,898 $ — $ — $ 1,317,898 Investment securities 1,176,991 — 1,176,991 — 1,176,991 Loans, net 6,912,570 — — 7,058,693 7,058,693 Loans held for sale 899,173 — 683,770 215,403 899,173 Interest receivable 43,603 33 5,254 38,316 43,603 Mortgage servicing rights 79,997 — — 79,997 79,997 Derivatives 68,938 — 68,938 — 68,938 Financial liabilities: Deposits: Without stated maturities $ 8,020,783 $ 8,020,783 $ — $ — $ 8,020,783 With stated maturities 1,437,254 — 1,446,605 — 1,446,605 Securities sold under agreement to repurchase and federal funds sold 32,199 32,199 — — 32,199 Subordinated debt 189,527 — — 192,149 192,149 Other borrowings 16,598 — 16,598 — 16,598 Interest payable 6,772 327 4,210 2,235 6,772 Derivatives 48,242 — 48,242 — 48,242 |
Schedule of Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets measured at fair value on a recurring basis at March 31, 2021 are presented in the following table: March 31, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: Mortgage-backed securities - residential $ — $ 838,708 $ — $ 838,708 Mortgage-backed securities - commercial — 20,635 — 20,635 Municipal securities — 348,776 — 348,776 Treasury securities — 14,576 — 14,576 Corporate securities — 2,483 — 2,483 Equity securities — 4,667 — 4,667 Total $ — $ 1,229,845 $ — $ 1,229,845 Loans held for sale $ — $ 834,779 $ 174,983 $ 1,009,762 Mortgage servicing rights — — 104,192 104,192 Derivatives — 65,203 — 65,203 Financial Liabilities: Derivatives — 30,752 — 30,752 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2020 are presented in the following table: At December 31, 2020 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 2,003 $ — $ 2,003 Mortgage-backed securities - residential — 773,336 — 773,336 Mortgage-backed securities - commercial — 21,588 — 21,588 Municipals, tax-exempt — 356,329 — 356,329 Treasury securities — 16,628 — 16,628 Corporate securities — 2,516 — 2,516 Equity securities — 4,591 — 4,591 Total $ — $ 1,176,991 $ — $ 1,176,991 Loans held for sale $ — $ 683,770 $ 215,403 $ 899,173 Mortgage servicing rights — — 79,997 79,997 Derivatives — 68,938 — 68,938 Financial Liabilities: Derivatives — 48,242 — 48,242 |
Schedule of 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, 2021 are presented in the following table: At March 31, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 3,870 $ 3,870 Collateral dependent loans: Commercial and industrial $ — $ — $ 13,219 $ 13,219 Construction — — 5,513 5,513 Residential real estate: 1-4 family mortgage — — 1,725 1,725 Residential line of credit — — 1,256 1,256 Multifamily — — 485 485 Commercial real estate: Owner occupied — — 13,451 13,451 Non-owner occupied — — 11,781 11,781 Total collateral dependent loans $ — $ — $ 47,430 $ 47,430 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2020 are presented in the following table: At December 31, 2020 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,662 $ 6,662 Collateral dependent loans: Commercial and industrial $ — $ — $ 1,728 $ 1,728 Construction — — 3,877 3,877 Residential real estate: 1-4 family mortgage — — 226 226 Residential line of credit — — 1,174 1,174 Commercial real estate: Owner occupied — — 3,391 3,391 Non-owner occupied — — 8,164 8,164 Total $ — $ — $ 18,560 $ 18,560 |
Schedule of Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis | The following tables present information as of March 31, 2021 and December 31, 2020 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 Range of Collateral dependent loans $ 47,430 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 3,870 Appraised value of property less costs to sell Discount for costs to sell 0%-15% Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 18,560 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 6,662 Appraised value of property less costs to sell Discount for costs to sell 0%-15% |
Schedule of Loans Held For Sale at Fair Value | The following table summarizes the Company's loans held for sale, at fair value, as of the dates presented: March 31, December 31, 2021 2020 Commercial and industrial $ 174,983 $ 215,403 Residential real estate: 1-4 family mortgage 834,779 683,770 Total loans held for sale $ 1,009,762 $ 899,173 |
Schedule of Changes in Associated with Commercial Loans Held For Sale | The following table sets forth the changes in fair value associated with this portfolio. Three months ended March 31, 2021 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 239,063 $ (23,660) $ 215,403 Change in fair value: Pay-downs and pay-offs (39,566) — (39,566) Write-offs to discount (2,007) 2,007 — Changes in valuation included in other noninterest income — (853) (853) Carrying value at end of period $ 197,490 $ (22,506) $ 174,984 |
Schedule of 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 and nonaccrual loans measured at fair value as of March 31, 2021 and December 31, 2020: March 31, 2021 Aggregate Aggregate Difference Mortgage loans held for sale measured at fair value $ 834,779 $ 823,612 $ 11,167 Commercial loans held for sale measured at fair value 162,204 172,702 (10,498) Past due loans of 90 days or more — — — Nonaccrual loans 12,779 24,788 (12,009) December 31, 2020 Mortgage loans held for sale measured at fair value $ 683,770 $ 651,887 $ 31,883 Commercial loans held for sale measured at fair value 208,914 226,867 (17,953) Past due loans of 90 days or more 83 163 (80) Nonaccrual loans 6,406 12,033 (5,627) |
Segment reporting (Tables)
Segment reporting (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provide segment financial information for the years ended March 31, 2021 and 2020 as follows: Three Months Ended March 31, 2021 Banking Mortgage Consolidated Net interest income $ 82,597 $ (21) $ 82,576 Provisions for credit losses (1) (13,854) — (13,854) Mortgage banking income — 60,595 60,595 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,263) (5,263) Other noninterest income 11,398 — 11,398 Depreciation and amortization 1,858 198 2,056 Amortization of intangibles 1,440 — 1,440 Other noninterest expense 52,437 38,765 91,202 Income before income taxes $ 52,114 $ 16,348 $ 68,462 Income tax expense 15,588 Net income applicable to FB Financial Corporation and noncontrolling interest $ 52,874 Net income applicable to noncontrolling interest (3) — Net income applicable to FB Financial Corporation $ 52,874 Total assets $ 10,787,955 $ 1,147,871 $ 11,935,826 Goodwill 242,561 — 242,561 (1) Included $2,222 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three Months Ended March 31, 2020 Banking Mortgage Consolidated Net interest income $ 56,233 $ 16 $ 56,249 Provisions for credit losses (1) 29,565 — 29,565 Mortgage banking income — 38,613 38,613 Change in fair value of mortgage servicing rights, net of hedging (2) — (5,868) (5,868) Other noninterest income 9,955 — 9,955 Depreciation and amortization 1,492 120 1,612 Amortization of intangibles 1,203 — 1,203 Other noninterest expense (3) 41,122 24,622 65,744 Income before income taxes $ (7,194) $ 8,019 $ 825 Income tax expense 80 Net income applicable to FB Financial Corporation $ 745 Total assets $ 6,122,217 $ 533,470 $ 6,655,687 Goodwill 174,859 — 174,859 (1) Includes $1,601 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $3,050 in merger costs in the Banking segment, . |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are included below as of the dates indicated. Actual Minimum Capital To be well capitalized March 31, 2021 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,353,195 14.6 % $ 972,054 10.5 % N/A N/A FirstBank 1,316,420 14.2 % 970,431 10.5 % $ 924,220 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,138,657 12.3 % $ 786,901 8.5 % N/A N/A FirstBank 1,121,997 12.1 % 785,587 8.5 % $ 739,376 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,138,657 10.1 % $ 450,971 4.0 % N/A N/A FirstBank 1,121,997 10.0 % 450,889 4.0 % $ 563,611 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,108,657 12.0 % $ 648,036 7.0 % N/A N/A FirstBank 1,121,997 12.1 % 646,954 7.0 % $ 600,743 6.5 % Actual Minimum Capital To be well capitalized December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,358,897 15.0 % $ 952,736 10.5 % N/A N/A FirstBank 1,353,279 14.9 % 951,327 10.5 % $ 906,026 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,090,364 12.0 % $ 771,262 8.5 % N/A N/A FirstBank 1,142,548 12.6 % 770,122 8.5 % $ 724,820 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,090,364 10.0 % $ 435,064 4.0 % N/A N/A FirstBank 1,142,548 10.5 % 435,279 4.0 % $ 544,098 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,060,364 11.7 % $ 635,157 7.0 % N/A N/A FirstBank 1,142,548 12.6 % 634,218 7.0 % $ 588,917 6.5 % |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Changes in Restricted Stock Units | The following table summarizes information about the changes in restricted stock units as of and for the three months ended March 31, 2021: Restricted Stock Weighted Balance at beginning of period 1,047,071 $ 26.06 Granted 177,941 43.13 Vested (126,011) 34.63 Forfeited (10,192) 27.72 Balance at end of period 1,088,809 $ 26.56 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in performance stock units as of and for the three months ended March 31, 2021: Performance Stock Weighted Balance at beginning of period (unvested) 53,147 36.21 Granted 65,131 43.20 Vested — — Forfeited or expired (485) 36.21 Balance at end of period (unvested) 117,793 39.20 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 is presented below: Loans outstanding at January 1, 2021 $ 24,675 New loans and advances 901 Change in related party status (98) Repayments (2,724) Loans outstanding at March 31, 2021 $ 22,754 |
Basis of presentation - Narrati
Basis of presentation - Narrative (Details) | Mar. 31, 2021branch |
Accounting Policies [Abstract] | |
Number of full-service branches | 81 |
Basis of presentation - Basic a
Basis of presentation - Basic and Diluted Earnings Per Common Share Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic earnings per common share calculation: | ||
Net income applicable to FB Financial Corporation | $ 52,874 | $ 745 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 |
Earnings available to common shareholders | $ 52,874 | $ 745 |
Weighted average basic shares outstanding (in shares) | 47,278,865 | 31,257,739 |
Basic earnings per common share (in dollars per share) | $ 1.12 | $ 0.02 |
Diluted earnings per common share: | ||
Earnings available to common shareholders | $ 52,874 | $ 745 |
Weighted average basic shares outstanding (in shares) | 47,278,865 | 31,257,739 |
Weighted average diluted shares contingently issuable (in shares) | 690,241 | 476,373 |
Weighted average diluted shares outstanding (in shares) | 47,969,106 | 31,734,112 |
Diluted (loss) earnings per common share (in dollars per share) | $ 1.10 | $ 0.02 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Restricted stock units outstanding considered to be antidilutive (in shares) | 87,452 | 153,545 |
Mergers and acquisitions - Fran
Mergers and acquisitions - Franklin Financial Network, Inc. - Narrative (Details) - Franklin Financial Network, Inc. $ / shares in Units, $ in Thousands | Aug. 15, 2020USD ($)branch$ / sharesshares | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||
Assets assumed in acquisition | $ 3,631,889 | |
Loans assumed in acquisition | 2,790,000 | |
Deposits assumed in acquisition | 3,121,731 | |
Non-strategic loans assumed in acquisition | $ 326,206 | |
Business acquisition, shares issued (in shares) | shares | 15,058,181 | |
Equivalent value of parent stock (in shares) | shares | 44,311 | |
Cash consideration paid | $ 31,330 | |
Fair value replacement awards attributable to pre-combination service | $ 674 | |
Business acquisition, share price (dollar per share) | $ / shares | $ 29.52 | |
Purchase price | $ 477,830 | |
Goodwill resulting from merger | $ 67,191 | |
Measurement period adjustments to loans held-for-sale, deposits and premises and equipment | $ 6,546 | |
Tennessee | ||
Business Acquisition [Line Items] | ||
Number of branches acquired | branch | 10 |
Mergers and acquisitions - Cons
Mergers and acquisitions - Consideration for Franklin Financial Network (Details) $ / shares in Units, $ in Thousands | Aug. 15, 2020USD ($)$ / sharesshares |
Business Combination, Consideration Transferred [Abstract] | |
Shares and net shares outstanding (in shares) | 15,651,243 |
Franklin Financial Network, Inc. | |
Business Combination, Consideration Transferred [Abstract] | |
Shares outstanding (in shares) | 15,588,337 |
Options converted to net shares (in shares) | 62,906 |
Number of shares outstanding including converted options (in shares) | 15,651,243 |
Exchange ratio | 0.965 |
Shares to be issued as merger consideration (in shares) | 15,102,492 |
Issuance price (dollar per share) | $ / shares | $ 29.52 |
Value of stock to be issued as merger consideration | $ | $ 445,826 |
Less: tax withholding on vested restricted stock awards, units and options | $ | (1,308) |
Value of stock issued | $ | $ 444,518 |
Net shares issued (in shares) | 15,058,181 |
Stock units that do not vest on change in control (in shares) | 114,915 |
Replacement awards issued to employees (in shares) | 118,776 |
Fair value of replacement awards (in shares) | 3,506,000 |
Fair value replacement awards attributable to pre-combination service | $ | $ 674 |
Cash consideration per share (dollar per share) | $ / shares | $ 2 |
Total cash to be paid | $ | $ 31,330 |
Total purchase price | $ | 477,830 |
Preliminary fair value of net assets acquired | $ | 410,639 |
Goodwill resulting from merger | $ | $ 67,191 |
Equivalent value of parent stock (in shares) | 44,311 |
Cash paid in lieu of fractional shares | $ | $ 28 |
Mergers and acquisitions - FNB
Mergers and acquisitions - FNB Financial Corp. - Narrative (Details) - FNB Financial Corp. $ / shares in Units, $ in Thousands | Feb. 14, 2020USD ($)branch$ / sharesshares |
Business Acquisition [Line Items] | |
Assets assumed in acquisition | $ 258,218 |
Loans assumed in acquisition | 182,171 |
Deposits assumed in acquisition | $ 209,535 |
Business acquisition, shares issued (in shares) | shares | 954,797 |
Cash consideration paid | $ 15,001 |
Business acquisition, share price (dollar per share) | $ / shares | $ 36.70 |
Purchase price | $ 50,042 |
Goodwill resulting from merger | $ 6,319 |
Kentucky | |
Business Acquisition [Line Items] | |
Number of branches acquired | branch | 4 |
Mergers and acquisitions - Co_2
Mergers and acquisitions - Consideration for FNB Financial Corp. (Details) - FNB Financial Corp. $ / shares in Units, $ in Thousands | Feb. 14, 2020USD ($)$ / sharesshares |
Business Combination, Consideration Transferred [Abstract] | |
Net shares issued (in shares) | shares | 954,797 |
Purchase price per share (dollar per share) | $ / shares | $ 36.70 |
Value of stock consideration | $ 35,041 |
Cash consideration paid | 15,001 |
Total purchase price | 50,042 |
Preliminary fair value of net assets acquired | 43,723 |
Goodwill resulting from merger | $ 6,319 |
Mergers and acquisitions - Reco
Mergers and acquisitions - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 15, 2020 | Feb. 14, 2020 |
Franklin Financial Network, Inc. | ||
ASSETS | ||
Cash and cash equivalents | $ 284,004 | |
Investments | 373,462 | |
Mortgage loans held for sale, at fair value | 38,740 | |
Commercial loans held for sale, at fair value | 326,206 | |
Loans held for investment, net of fair value adjustments | 2,427,527 | |
Allowance for credit losses on purchased credit deteriorated loans | (24,831) | |
Premises and equipment | 45,471 | |
Operating lease right-of-use assets | 23,958 | |
Mortgage servicing rights | 5,111 | |
Core deposit intangible | 7,670 | |
Other assets | 124,571 | |
Total assets | 3,631,889 | |
LIABILITIES | ||
Deposits, non-interest bearing | 505,374 | |
Deposits, interest-bearing checking | 1,783,379 | |
Money market and savings | 342,093 | |
Customer time deposits | 383,433 | |
Brokered and internet time deposits | 107,452 | |
Total deposits | 3,121,731 | |
Borrowings | 62,435 | |
Operating lease liabilities | 24,330 | |
Accrued expenses and other liabilities | 12,661 | |
Total liabilities assumed | 3,221,157 | |
Noncontrolling interests acquired | 93 | |
Net assets acquired | $ 410,639 | |
FNB Financial Corp. | ||
ASSETS | ||
Cash and cash equivalents | $ 10,774 | |
Investments | 50,594 | |
Mortgage loans held for sale, at fair value | 0 | |
Commercial loans held for sale, at fair value | 0 | |
Loans held for investment, net of fair value adjustments | 182,171 | |
Allowance for credit losses on purchased credit deteriorated loans | (669) | |
Premises and equipment | 8,049 | |
Operating lease right-of-use assets | 14 | |
Mortgage servicing rights | 0 | |
Core deposit intangible | 2,490 | |
Other assets | 4,795 | |
Total assets | 258,218 | |
LIABILITIES | ||
Deposits, non-interest bearing | 63,531 | |
Deposits, interest-bearing checking | 26,451 | |
Money market and savings | 37,002 | |
Customer time deposits | 82,551 | |
Brokered and internet time deposits | 0 | |
Total deposits | 209,535 | |
Borrowings | 3,192 | |
Operating lease liabilities | 14 | |
Accrued expenses and other liabilities | 1,754 | |
Total liabilities assumed | 214,495 | |
Noncontrolling interests acquired | 0 | |
Net assets acquired | $ 43,723 |
Mergers and acquisitions - Purc
Mergers and acquisitions - Purchased Credit-deteriorated Loans (Details) - USD ($) $ in Thousands | Aug. 15, 2020 | Feb. 14, 2020 | Mar. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deterioration credit quality since origination, percentage | 27.90% | 10.10% | |
Allowance for credit loss, purchased with credit deterioration | $ 669 | ||
Franklin Financial Network, Inc. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal balance | $ 693,999 | ||
Allowance for credit losses at acquisition | (24,831) | ||
Net premium attributable to other factors | 8,810 | ||
Loans purchased credit-deteriorated fair value | 677,978 | ||
Allowance for credit loss, purchased with credit deterioration | 52,822 | ||
Increase in provision for credit losses from unfunded commitments acquired in business combination | $ 10,499 | ||
FNB Financial Corp. | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal balance | $ 18,964 | ||
Allowance for credit losses at acquisition | (669) | ||
Net premium attributable to other factors | 63 | ||
Loans purchased credit-deteriorated fair value | 18,358 | ||
Allowance for credit loss, purchased with credit deterioration | $ 2,885 |
Mergers and acquisitions - Pro
Mergers and acquisitions - Pro Forma Information (unaudited) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Business Combinations [Abstract] | |
Net interest income | $ 84,742 |
Total revenues | 133,597 |
Net loss | $ (474) |
Investment securities - Summary
Investment securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | $ 1,205,933,000 | $ 1,137,848,000 | |
Gross unrealized gains | 26,339,000 | 35,376,000 | |
Gross unrealized losses | (7,094,000) | (824,000) | |
Allowance for credit losses for investments | 0 | 0 | $ 0 |
Fair Value | 1,225,178,000 | 1,172,400,000 | |
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 2,000,000 | ||
Gross unrealized gains | 3,000 | ||
Gross unrealized losses | 0 | ||
Allowance for credit losses for investments | 0 | ||
Fair Value | 2,003,000 | ||
Mortgage-backed securities - residential | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 834,335,000 | 760,099,000 | |
Gross unrealized gains | 10,971,000 | 14,040,000 | |
Gross unrealized losses | (6,598,000) | (803,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 838,708,000 | 773,336,000 | |
Mortgage-backed securities - commercial | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 19,888,000 | 20,226,000 | |
Gross unrealized gains | 757,000 | 1,362,000 | |
Gross unrealized losses | (10,000) | 0 | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 20,635,000 | 21,588,000 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 334,730,000 | 336,543,000 | |
Gross unrealized gains | 14,515,000 | 19,806,000 | |
Gross unrealized losses | (469,000) | (20,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 348,776,000 | 356,329,000 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 14,480,000 | 16,480,000 | |
Gross unrealized gains | 96,000 | 148,000 | |
Gross unrealized losses | 0 | 0 | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 14,576,000 | 16,628,000 | |
Corporate securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 2,500,000 | 2,500,000 | |
Gross unrealized gains | 0 | 17,000 | |
Gross unrealized losses | (17,000) | (1,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | $ 2,483,000 | $ 2,516,000 |
Investment securities - Narrati
Investment securities - Narrative (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)security | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | |||
Accrued interest receivable | $ 44,393,000 | $ 43,603,000 | |
Marketable securities at fair value | 4,667,000 | 4,591,000 | |
Trade date payable - securities | 0 | $ 8,273,000 | 0 |
Net unrealized gains on equity securities | 76,000 | 63,000 | |
Allowance for credit losses for investments | $ 0 | 0 | $ 0 |
Number of securities in securities portfolio | security | 511 | 514 | |
Number of securities in securities portfolio, unrealized loss position | security | 42 | 16 | |
Provision for credit losses on available for sale debt securities | $ 0 | $ 0 | |
Collateral Pledged | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Securities pledged | 869,390,000 | $ 804,821,000 | |
Debt Securities | |||
Debt and Equity Securities, FV-NI [Line Items] | |||
Accrued interest receivable | $ 4,380,000 | $ 4,540,000 |
Investment securities - Schedul
Investment securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized cost | ||
Due in one year or less | $ 36,486 | $ 35,486 |
Due in one to five years | 14,008 | 24,278 |
Due in five to ten years | 36,838 | 40,038 |
Due in over ten years | 264,378 | 257,721 |
Amortized cost, sub-total | 351,710 | 357,523 |
Total debt securities | 1,205,933 | 1,137,848 |
Fair value | ||
Due in one year or less | 36,660 | 35,662 |
Due in one to five years | 21,113 | 24,684 |
Due in five to ten years | 38,377 | 41,332 |
Due in over ten years | 269,685 | 275,798 |
Fair value, sub-total | 365,835 | 377,476 |
Total debt securities | 1,225,178 | 1,172,400 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 834,335 | 760,099 |
Total debt securities | 834,335 | 760,099 |
Fair value | ||
Mortgage-backed securities | 838,708 | 773,336 |
Total debt securities | 838,708 | 773,336 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 19,888 | 20,226 |
Total debt securities | 19,888 | 20,226 |
Fair value | ||
Mortgage-backed securities | 20,635 | 21,588 |
Total debt securities | $ 20,635 | $ 21,588 |
Investment securities - Summa_2
Investment securities - Summary of Sales and Other Dispositions of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 0 | $ 0 |
Proceeds from maturities, prepayments and calls | 61,040 | 27,657 |
Gross realized gains | 7 | 0 |
Gross realized losses | $ 0 | $ 0 |
Investment securities - Sched_2
Investment securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 485,845 | $ 185,695 |
Unrealized Loss, Less than 12 months | (7,094) | (824) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 485,845 | 185,695 |
Unrealized Loss, Total | (7,094) | (824) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 402,455 | 182,012 |
Unrealized Loss, Less than 12 months | (6,598) | (803) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 402,455 | 182,012 |
Unrealized Loss, Total | (6,598) | (803) |
Mortgage-backed securities - commercial | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 20,636 | |
Unrealized Loss, Less than 12 months | (10) | |
Fair Value, 12 months or more | 0 | |
Unrealized Loss, 12 months or more | 0 | |
Fair Value, Total | 20,636 | |
Unrealized Loss, Total | (10) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 60,771 | 3,184 |
Unrealized Loss, Less than 12 months | (469) | (20) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 60,771 | 3,184 |
Unrealized Loss, Total | (469) | (20) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 1,983 | 499 |
Unrealized Loss, Less than 12 months | (17) | (1) |
Fair Value, 12 months or more | 0 | |
Unrealized Loss, 12 months or more | 0 | |
Fair Value, Total | 1,983 | 499 |
Unrealized Loss, Total | $ (17) | $ (1) |
Loans and allowance for credi_3
Loans and allowance for credit losses - Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | $ 7,047,342 | $ 7,082,959 | ||
Less: Allowance for credit losses | (157,954) | (170,389) | $ (89,141) | $ (31,139) |
Net loans | 6,889,388 | 6,912,570 | ||
Paycheck Protection Program | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans originated as part of PPP program | 145,697 | 212,645 | ||
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,292,530 | 1,346,122 | ||
Less: Allowance for credit losses | (14,643) | (14,748) | (10,881) | (4,805) |
Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,120,585 | 1,222,220 | ||
Less: Allowance for credit losses | (38,622) | (58,477) | (22,842) | (10,194) |
Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,078,618 | 1,089,270 | ||
Less: Allowance for credit losses | (19,572) | (19,220) | (13,006) | (3,112) |
Residential real estate | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 394,510 | 408,211 | ||
Less: Allowance for credit losses | (9,268) | (10,534) | (6,213) | (752) |
Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 271,839 | 175,676 | ||
Less: Allowance for credit losses | (11,657) | (7,174) | (2,328) | (544) |
Commercial real estate | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 936,473 | 924,841 | ||
Less: Allowance for credit losses | (3,609) | (4,849) | (9,047) | (4,109) |
Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 1,652,638 | 1,598,979 | ||
Less: Allowance for credit losses | (50,179) | (44,147) | (18,005) | (4,621) |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross loans | 300,149 | 317,640 | ||
Less: Allowance for credit losses | $ (10,404) | $ (11,240) | $ (6,819) | $ (3,002) |
Loans and allowance for credi_4
Loans and allowance for credit losses - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | |||
Accrued interest receivable on loans | $ 38,987,000 | $ 38,316,000 | |
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | 465,000 | $ 120,000 | |
Recorded investment in TDRs | 26,095,000 | 15,988,000 | |
TDRs classified as non-accruals | 8,759,000 | 8,279,000 | |
Allocation to specific reserves | 2,083,000 | 310,000 | |
Commitment to lend additional amounts to troubled debt restructuring | 95,000 | 0 | |
Payment default for loans modified as troubled debt restructurings | $ 0 | $ 0 | |
Payment deferral extension period | 60 days | ||
Deferred loans that were transferred to normal payment status | $ 1,388,858,000 | 1,399,088,000 | |
Minimum | |||
Financing Receivable, Past Due [Line Items] | |||
Payment deferral period | 60 days | ||
Maximum | |||
Financing Receivable, Past Due [Line Items] | |||
Payment deferral period | 90 days | ||
Federal Reserve Bank | |||
Financing Receivable, Past Due [Line Items] | |||
Pledged loans to the Federal Reserve Bank | $ 2,215,100,000 | 2,463,281,000 | |
FHLB Cincinnati | Residential Mortgage Loans | |||
Financing Receivable, Past Due [Line Items] | |||
Pledge loans to the Federal Home Loan Bank securing advances | 1,306,484,000 | 1,248,857,000 | |
FHLB Cincinnati | Commercial Loan | |||
Financing Receivable, Past Due [Line Items] | |||
Pledge loans to the Federal Home Loan Bank securing advances | $ 1,508,068,000 | $ 1,532,749,000 |
Loans and allowance for credi_5
Loans and allowance for credit losses - Changes in Allowance for Credit Losses by Class of Financing Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ 170,389 | $ 31,139 |
Provision for credit losses | (11,632) | 27,964 |
Recoveries of loans previously charged-off | 367 | 334 |
Loans charged off | (1,170) | (2,411) |
Initial allowance on loans purchased with deteriorated credit quality | 669 | |
Balance at end of period | 157,954 | 89,141 |
Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 30,888 | |
Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 558 | |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 14,748 | 4,805 |
Provision for credit losses | 43 | 1,829 |
Recoveries of loans previously charged-off | 129 | 88 |
Loans charged off | (277) | (1,234) |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |
Balance at end of period | 14,643 | 10,881 |
Commercial and industrial | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 5,300 | |
Commercial and industrial | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 82 | |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 58,477 | 10,194 |
Provision for credit losses | (19,826) | 10,954 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | (29) | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |
Balance at end of period | 38,622 | 22,842 |
Construction | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 1,533 | |
Construction | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 150 | |
Residential real estate | 1-to-4 family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 19,220 | 3,112 |
Provision for credit losses | 461 | 1,664 |
Recoveries of loans previously charged-off | 24 | 24 |
Loans charged off | (133) | (242) |
Initial allowance on loans purchased with deteriorated credit quality | 107 | |
Balance at end of period | 19,572 | 13,006 |
Residential real estate | 1-to-4 family mortgage | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 7,920 | |
Residential real estate | 1-to-4 family mortgage | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 421 | |
Residential real estate | Residential line of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 10,534 | 752 |
Provision for credit losses | (1,257) | 1,985 |
Recoveries of loans previously charged-off | 6 | 15 |
Loans charged off | (15) | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 3 | |
Balance at end of period | 9,268 | 6,213 |
Residential real estate | Residential line of credit | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 3,461 | |
Residential real estate | Residential line of credit | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | (3) | |
Residential real estate | Multi-family mortgage | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 7,174 | 544 |
Provision for credit losses | 4,483 | 1,444 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 0 | |
Balance at end of period | 11,657 | 2,328 |
Residential real estate | Multi-family mortgage | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 340 | |
Residential real estate | Multi-family mortgage | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 0 | |
Commercial real estate | Owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 4,849 | 4,109 |
Provision for credit losses | (1,253) | 3,038 |
Recoveries of loans previously charged-off | 13 | 14 |
Loans charged off | 0 | (209) |
Initial allowance on loans purchased with deteriorated credit quality | 54 | |
Balance at end of period | 3,609 | 9,047 |
Commercial real estate | Owner occupied | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 1,879 | |
Commercial real estate | Owner occupied | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 162 | |
Commercial real estate | Non-owner occupied | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 44,147 | 4,621 |
Provision for credit losses | 6,032 | 5,935 |
Recoveries of loans previously charged-off | 0 | 0 |
Loans charged off | 0 | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 443 | |
Balance at end of period | 50,179 | 18,005 |
Commercial real estate | Non-owner occupied | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 6,822 | |
Commercial real estate | Non-owner occupied | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 184 | |
Consumer and other | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 11,240 | 3,002 |
Provision for credit losses | (315) | 1,115 |
Recoveries of loans previously charged-off | 195 | 193 |
Loans charged off | (716) | (726) |
Initial allowance on loans purchased with deteriorated credit quality | 40 | |
Balance at end of period | $ 10,404 | 6,819 |
Consumer and other | Cumulative effect of change in accounting principle | Non-purchased credit deteriorated loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | 3,633 | |
Consumer and other | Cumulative effect of change in accounting principle | Purchased Credit Impaired loans | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Balance at beginning of period | $ (438) |
Loans and allowance for credi_6
Loans and allowance for credit losses - Allowance for Credit Losses by Class of Financing Receivable Disaggregated by Measurement Methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | $ 1,223 | $ 2,039 | ||
Collectively evaluated for credit loss/impairment | 135,497 | 149,405 | ||
Purchased credit deteriorated | 21,234 | 18,945 | ||
Less: allowance for credit losses | 157,954 | 170,389 | $ 89,141 | $ 31,139 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 354 | 373 | ||
Collectively evaluated for credit loss/impairment | 13,609 | 13,493 | ||
Purchased credit deteriorated | 680 | 882 | ||
Less: allowance for credit losses | 14,643 | 14,748 | 10,881 | 4,805 |
Construction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 96 | 95 | ||
Collectively evaluated for credit loss/impairment | 36,013 | 54,065 | ||
Purchased credit deteriorated | 2,513 | 4,317 | ||
Less: allowance for credit losses | 38,622 | 58,477 | 22,842 | 10,194 |
Residential real estate | 1-to-4 family mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 0 | 0 | ||
Collectively evaluated for credit loss/impairment | 17,787 | 17,206 | ||
Purchased credit deteriorated | 1,785 | 2,014 | ||
Less: allowance for credit losses | 19,572 | 19,220 | 13,006 | 3,112 |
Residential real estate | Residential line of credit | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 8 | 9 | ||
Collectively evaluated for credit loss/impairment | 8,872 | 10,031 | ||
Purchased credit deteriorated | 388 | 494 | ||
Less: allowance for credit losses | 9,268 | 10,534 | 6,213 | 752 |
Residential real estate | Multi-family mortgage | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 0 | 0 | ||
Collectively evaluated for credit loss/impairment | 11,103 | 6,326 | ||
Purchased credit deteriorated | 554 | 848 | ||
Less: allowance for credit losses | 11,657 | 7,174 | 2,328 | 544 |
Commercial real estate | Owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 70 | 30 | ||
Collectively evaluated for credit loss/impairment | 2,952 | 4,062 | ||
Purchased credit deteriorated | 587 | 757 | ||
Less: allowance for credit losses | 3,609 | 4,849 | 9,047 | 4,109 |
Commercial real estate | Non-owner occupied | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 694 | 1,531 | ||
Collectively evaluated for credit loss/impairment | 35,414 | 33,706 | ||
Purchased credit deteriorated | 14,071 | 8,910 | ||
Less: allowance for credit losses | 50,179 | 44,147 | 18,005 | 4,621 |
Consumer and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for credit loss/impairment | 1 | 1 | ||
Collectively evaluated for credit loss/impairment | 9,747 | 10,516 | ||
Purchased credit deteriorated | 656 | 723 | ||
Less: allowance for credit losses | $ 10,404 | $ 11,240 | $ 6,819 | $ 3,002 |
Loans and allowance for credi_7
Loans and allowance for credit losses - Amount of Loans by Loan Class of Financing Receivable Individually and Collectively Evaluated for Credit Loss (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | $ 41,746 | $ 38,205 |
Collectively evaluated for credit loss/impairment | 6,347,873 | 6,329,868 |
Purchased credit deteriorated | 657,723 | 714,886 |
Loans | 7,047,342 | 7,082,959 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 13,833 | 15,578 |
Collectively evaluated for credit loss/impairment | 1,226,554 | 1,270,058 |
Purchased credit deteriorated | 52,143 | 60,486 |
Loans | 1,292,530 | 1,346,122 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 6,290 | 4,851 |
Collectively evaluated for credit loss/impairment | 1,056,972 | 1,140,634 |
Purchased credit deteriorated | 57,323 | 76,735 |
Loans | 1,120,585 | 1,222,220 |
Residential real estate | 1-to-4 family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 1,099 | 848 |
Collectively evaluated for credit loss/impairment | 986,455 | 987,142 |
Purchased credit deteriorated | 91,064 | 101,280 |
Loans | 1,078,618 | 1,089,270 |
Residential real estate | Residential line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 412 | 412 |
Collectively evaluated for credit loss/impairment | 376,411 | 387,250 |
Purchased credit deteriorated | 17,687 | 20,549 |
Loans | 394,510 | 408,211 |
Residential real estate | Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 0 | 0 |
Collectively evaluated for credit loss/impairment | 260,996 | 156,447 |
Purchased credit deteriorated | 10,843 | 19,229 |
Loans | 271,839 | 175,676 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 12,797 | 7,846 |
Collectively evaluated for credit loss/impairment | 828,789 | 813,151 |
Purchased credit deteriorated | 94,887 | 103,844 |
Loans | 936,473 | 924,841 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 7,279 | 8,631 |
Collectively evaluated for credit loss/impairment | 1,325,198 | 1,272,203 |
Purchased credit deteriorated | 320,161 | 318,145 |
Loans | 1,652,638 | 1,598,979 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss/impairment | 36 | 39 |
Collectively evaluated for credit loss/impairment | 286,498 | 302,983 |
Purchased credit deteriorated | 13,615 | 14,618 |
Loans | $ 300,149 | $ 317,640 |
Loans and allowance for credi_8
Loans and allowance for credit losses - Credit Quality of Loan Portfolio by Year of Origination (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | $ 402,808 | $ 1,517,481 |
Before Current Fiscal Year | 1,373,014 | 1,246,239 |
Two Years before Current Fiscal Year | 1,124,786 | 853,371 |
Three Years before Current Fiscal Year | 755,056 | 696,494 |
Four Years before Current Fiscal Year | 559,143 | 648,821 |
Five Years before Current Fiscal Year | 1,630,631 | 900,082 |
Revolving Loans Amortized Cost Basis | 1,201,904 | 1,220,471 |
Loans | 7,047,342 | 7,082,959 |
Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 402,377 | 1,513,764 |
Before Current Fiscal Year | 1,368,913 | 1,235,808 |
Two Years before Current Fiscal Year | 1,114,915 | 829,801 |
Three Years before Current Fiscal Year | 708,372 | 679,220 |
Four Years before Current Fiscal Year | 538,924 | 637,408 |
Five Years before Current Fiscal Year | 1,575,399 | 855,663 |
Revolving Loans Amortized Cost Basis | 1,181,854 | 1,199,072 |
Loans | 6,890,754 | 6,950,736 |
Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 431 | 3,717 |
Before Current Fiscal Year | 4,101 | 10,431 |
Two Years before Current Fiscal Year | 9,871 | 23,570 |
Three Years before Current Fiscal Year | 46,684 | 17,274 |
Four Years before Current Fiscal Year | 20,219 | 11,413 |
Five Years before Current Fiscal Year | 55,232 | 44,419 |
Revolving Loans Amortized Cost Basis | 20,050 | 21,399 |
Loans | 156,588 | 132,223 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 47,688 | 341,806 |
Before Current Fiscal Year | 267,004 | 189,148 |
Two Years before Current Fiscal Year | 179,603 | 82,337 |
Three Years before Current Fiscal Year | 78,648 | 64,787 |
Four Years before Current Fiscal Year | 52,930 | 45,070 |
Five Years before Current Fiscal Year | 88,857 | 46,542 |
Revolving Loans Amortized Cost Basis | 577,800 | 576,432 |
Loans | 1,292,530 | 1,346,122 |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 47,458 | 339,305 |
Before Current Fiscal Year | 264,285 | 186,460 |
Two Years before Current Fiscal Year | 177,250 | 71,110 |
Three Years before Current Fiscal Year | 67,564 | 60,362 |
Four Years before Current Fiscal Year | 49,794 | 38,488 |
Five Years before Current Fiscal Year | 80,524 | 45,265 |
Revolving Loans Amortized Cost Basis | 568,385 | 565,786 |
Loans | 1,255,260 | 1,306,776 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 230 | 2,501 |
Before Current Fiscal Year | 2,719 | 2,688 |
Two Years before Current Fiscal Year | 2,353 | 11,227 |
Three Years before Current Fiscal Year | 11,084 | 4,425 |
Four Years before Current Fiscal Year | 3,136 | 6,582 |
Five Years before Current Fiscal Year | 8,333 | 1,277 |
Revolving Loans Amortized Cost Basis | 9,415 | 10,646 |
Loans | 37,270 | 39,346 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 87,958 | 462,757 |
Before Current Fiscal Year | 446,596 | 393,683 |
Two Years before Current Fiscal Year | 266,062 | 91,865 |
Three Years before Current Fiscal Year | 54,111 | 54,304 |
Four Years before Current Fiscal Year | 39,557 | 41,636 |
Five Years before Current Fiscal Year | 123,701 | 65,971 |
Revolving Loans Amortized Cost Basis | 102,600 | 112,004 |
Loans | 1,120,585 | 1,222,220 |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 87,958 | 462,184 |
Before Current Fiscal Year | 446,596 | 391,928 |
Two Years before Current Fiscal Year | 263,730 | 88,687 |
Three Years before Current Fiscal Year | 50,161 | 54,163 |
Four Years before Current Fiscal Year | 39,430 | 41,636 |
Five Years before Current Fiscal Year | 120,595 | 62,903 |
Revolving Loans Amortized Cost Basis | 102,600 | 112,004 |
Loans | 1,111,070 | 1,213,505 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 573 |
Before Current Fiscal Year | 0 | 1,755 |
Two Years before Current Fiscal Year | 2,332 | 3,178 |
Three Years before Current Fiscal Year | 3,950 | 141 |
Four Years before Current Fiscal Year | 127 | 0 |
Five Years before Current Fiscal Year | 3,106 | 3,068 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 9,515 | 8,715 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 81,307 | 284,978 |
Before Current Fiscal Year | 246,612 | 179,968 |
Two Years before Current Fiscal Year | 151,965 | 169,514 |
Three Years before Current Fiscal Year | 114,876 | 163,957 |
Four Years before Current Fiscal Year | 93,078 | 115,537 |
Five Years before Current Fiscal Year | 390,780 | 175,316 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 1,078,618 | 1,089,270 |
Residential real estate | 1-to-4 family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 81,106 | 284,530 |
Before Current Fiscal Year | 245,371 | 178,540 |
Two Years before Current Fiscal Year | 150,194 | 165,708 |
Three Years before Current Fiscal Year | 111,676 | 158,484 |
Four Years before Current Fiscal Year | 87,975 | 111,915 |
Five Years before Current Fiscal Year | 379,183 | 165,916 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 1,055,505 | 1,065,093 |
Residential real estate | 1-to-4 family mortgage | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 201 | 448 |
Before Current Fiscal Year | 1,241 | 1,428 |
Two Years before Current Fiscal Year | 1,771 | 3,806 |
Three Years before Current Fiscal Year | 3,200 | 5,473 |
Four Years before Current Fiscal Year | 5,103 | 3,622 |
Five Years before Current Fiscal Year | 11,597 | 9,400 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 23,113 | 24,177 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Five Years before Current Fiscal Year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 394,510 | 408,211 |
Loans | 394,510 | 408,211 |
Residential real estate | Residential line of credit | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Five Years before Current Fiscal Year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 389,110 | 402,859 |
Loans | 389,110 | 402,859 |
Residential real estate | Residential line of credit | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Five Years before Current Fiscal Year | 0 | 0 |
Revolving Loans Amortized Cost Basis | 5,400 | 5,352 |
Loans | 5,400 | 5,352 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 44,220 | 29,006 |
Before Current Fiscal Year | 29,241 | 13,446 |
Two Years before Current Fiscal Year | 76,432 | 11,843 |
Three Years before Current Fiscal Year | 9,548 | 46,561 |
Four Years before Current Fiscal Year | 39,549 | 28,330 |
Five Years before Current Fiscal Year | 62,720 | 35,396 |
Revolving Loans Amortized Cost Basis | 10,129 | 11,094 |
Loans | 271,839 | 175,676 |
Residential real estate | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 44,220 | 29,006 |
Before Current Fiscal Year | 29,241 | 13,446 |
Two Years before Current Fiscal Year | 76,432 | 11,843 |
Three Years before Current Fiscal Year | 9,548 | 46,561 |
Four Years before Current Fiscal Year | 39,549 | 28,330 |
Five Years before Current Fiscal Year | 62,665 | 35,339 |
Revolving Loans Amortized Cost Basis | 10,129 | 11,094 |
Loans | 271,784 | 175,619 |
Residential real estate | Multi-family mortgage | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 0 |
Two Years before Current Fiscal Year | 0 | 0 |
Three Years before Current Fiscal Year | 0 | 0 |
Four Years before Current Fiscal Year | 0 | 0 |
Five Years before Current Fiscal Year | 55 | 57 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 55 | 57 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 32,420 | 141,915 |
Before Current Fiscal Year | 141,912 | 182,641 |
Two Years before Current Fiscal Year | 193,668 | 104,251 |
Three Years before Current Fiscal Year | 100,661 | 116,906 |
Four Years before Current Fiscal Year | 100,622 | 82,914 |
Five Years before Current Fiscal Year | 303,860 | 237,800 |
Revolving Loans Amortized Cost Basis | 63,330 | 58,414 |
Loans | 936,473 | 924,841 |
Commercial real estate | Owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 32,420 | 141,871 |
Before Current Fiscal Year | 141,912 | 180,856 |
Two Years before Current Fiscal Year | 192,702 | 101,828 |
Three Years before Current Fiscal Year | 98,263 | 110,832 |
Four Years before Current Fiscal Year | 94,382 | 82,640 |
Five Years before Current Fiscal Year | 290,146 | 226,574 |
Revolving Loans Amortized Cost Basis | 58,519 | 53,681 |
Loans | 908,344 | 898,282 |
Commercial real estate | Owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 44 |
Before Current Fiscal Year | 0 | 1,785 |
Two Years before Current Fiscal Year | 966 | 2,423 |
Three Years before Current Fiscal Year | 2,398 | 6,074 |
Four Years before Current Fiscal Year | 6,240 | 274 |
Five Years before Current Fiscal Year | 13,714 | 11,226 |
Revolving Loans Amortized Cost Basis | 4,811 | 4,733 |
Loans | 28,129 | 26,559 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 92,161 | 166,962 |
Before Current Fiscal Year | 170,606 | 233,152 |
Two Years before Current Fiscal Year | 207,744 | 350,814 |
Three Years before Current Fiscal Year | 357,591 | 221,149 |
Four Years before Current Fiscal Year | 207,765 | 290,370 |
Five Years before Current Fiscal Year | 577,837 | 297,712 |
Revolving Loans Amortized Cost Basis | 38,934 | 38,820 |
Loans | 1,652,638 | 1,598,979 |
Commercial real estate | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 92,161 | 166,962 |
Before Current Fiscal Year | 170,606 | 230,942 |
Two Years before Current Fiscal Year | 205,565 | 349,312 |
Three Years before Current Fiscal Year | 332,674 | 221,149 |
Four Years before Current Fiscal Year | 203,164 | 290,370 |
Five Years before Current Fiscal Year | 562,311 | 280,629 |
Revolving Loans Amortized Cost Basis | 38,934 | 38,820 |
Loans | 1,605,415 | 1,578,184 |
Commercial real estate | Non-owner occupied | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 2,210 |
Two Years before Current Fiscal Year | 2,179 | 1,502 |
Three Years before Current Fiscal Year | 24,917 | 0 |
Four Years before Current Fiscal Year | 4,601 | 0 |
Five Years before Current Fiscal Year | 15,526 | 17,083 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Loans | 47,223 | 20,795 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 17,054 | 90,057 |
Before Current Fiscal Year | 71,043 | 54,201 |
Two Years before Current Fiscal Year | 49,312 | 42,747 |
Three Years before Current Fiscal Year | 39,621 | 28,830 |
Four Years before Current Fiscal Year | 25,642 | 44,964 |
Five Years before Current Fiscal Year | 82,876 | 41,345 |
Revolving Loans Amortized Cost Basis | 14,601 | 15,496 |
Loans | 300,149 | 317,640 |
Consumer and other | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 17,054 | 89,906 |
Before Current Fiscal Year | 70,902 | 53,636 |
Two Years before Current Fiscal Year | 49,042 | 41,313 |
Three Years before Current Fiscal Year | 38,486 | 27,669 |
Four Years before Current Fiscal Year | 24,630 | 44,029 |
Five Years before Current Fiscal Year | 79,975 | 39,037 |
Revolving Loans Amortized Cost Basis | 14,177 | 14,828 |
Loans | 294,266 | 310,418 |
Consumer and other | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 151 |
Before Current Fiscal Year | 141 | 565 |
Two Years before Current Fiscal Year | 270 | 1,434 |
Three Years before Current Fiscal Year | 1,135 | 1,161 |
Four Years before Current Fiscal Year | 1,012 | 935 |
Five Years before Current Fiscal Year | 2,901 | 2,308 |
Revolving Loans Amortized Cost Basis | 424 | 668 |
Loans | $ 5,883 | $ 7,222 |
Loans and allowance for credi_9
Loans and allowance for credit losses - Analysis of Aging by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | $ 13,156 | $ 26,995 |
90 days or more and accruing interest | 10,698 | 13,696 |
Non-accrual loans | 55,538 | 50,760 |
Loans current on payments and accruing interest | 6,967,950 | 6,991,508 |
Loans | 7,047,342 | 7,082,959 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 1,049 | 3,297 |
90 days or more and accruing interest | 73 | 330 |
Non-accrual loans | 14,174 | 16,005 |
Loans current on payments and accruing interest | 1,277,234 | 1,326,490 |
Loans | 1,292,530 | 1,346,122 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 2,269 | 7,607 |
90 days or more and accruing interest | 0 | 573 |
Non-accrual loans | 5,584 | 4,053 |
Loans current on payments and accruing interest | 1,112,732 | 1,209,987 |
Loans | 1,120,585 | 1,222,220 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 5,333 | 7,058 |
90 days or more and accruing interest | 9,068 | 10,470 |
Non-accrual loans | 6,116 | 5,923 |
Loans current on payments and accruing interest | 1,058,101 | 1,065,819 |
Loans | 1,078,618 | 1,089,270 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 1,226 | 3,551 |
90 days or more and accruing interest | 1,195 | 239 |
Non-accrual loans | 1,672 | 1,757 |
Loans current on payments and accruing interest | 390,417 | 402,664 |
Loans | 394,510 | 408,211 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 0 | 0 |
90 days or more and accruing interest | 0 | 57 |
Non-accrual loans | 55 | 0 |
Loans current on payments and accruing interest | 271,784 | 175,619 |
Loans | 271,839 | 175,676 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 503 | 98 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 12,872 | 7,948 |
Loans current on payments and accruing interest | 923,098 | 916,795 |
Loans | 936,473 | 924,841 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 193 | 915 |
90 days or more and accruing interest | 67 | 0 |
Non-accrual loans | 11,997 | 12,471 |
Loans current on payments and accruing interest | 1,640,381 | 1,585,593 |
Loans | 1,652,638 | 1,598,979 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
30-89 days past due | 2,583 | 4,469 |
90 days or more and accruing interest | 295 | 2,027 |
Non-accrual loans | 3,068 | 2,603 |
Loans current on payments and accruing interest | 294,203 | 308,541 |
Loans | $ 300,149 | $ 317,640 |
Loans and allowance for cred_10
Loans and allowance for credit losses - Amortized Cost and Related Allowance of Non-accrual Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | $ 36,442 | $ 32,661 |
Non-accrual with related allowance | 19,096 | 18,099 |
Related allowance | 1,598 | 2,550 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 12,353 | 13,960 |
Non-accrual with related allowance | 1,821 | 2,045 |
Related allowance | 365 | 383 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 4,513 | 3,061 |
Non-accrual with related allowance | 1,071 | 992 |
Related allowance | 134 | 131 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 2,122 | 3,048 |
Non-accrual with related allowance | 3,994 | 2,875 |
Related allowance | 95 | 84 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 846 | 854 |
Non-accrual with related allowance | 826 | 903 |
Related allowance | 26 | 31 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 0 | 0 |
Non-accrual with related allowance | 55 | 0 |
Related allowance | 9 | 0 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 10,059 | 7,172 |
Non-accrual with related allowance | 2,813 | 776 |
Related allowance | 91 | 63 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 6,549 | 4,566 |
Non-accrual with related allowance | 5,448 | 7,905 |
Related allowance | 718 | 1,711 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 0 | 0 |
Non-accrual with related allowance | 3,068 | 2,603 |
Related allowance | $ 160 | $ 147 |
Loans and allowance for cred_11
Loans and allowance for credit losses - Interest Income Recognized on Non-accrual Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | $ 385 | $ 227 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 114 | 152 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 14 | 27 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 18 | 7 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 18 | 1 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 1 | 0 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | 131 | 21 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Interest income recognized on non-accrual loans | $ 89 | $ 19 |
Loans and allowance for cred_12
Loans and allowance for credit losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 2 | 1 |
Pre-modification outstanding recorded investment | $ 12,104 | $ 64 |
Post-modification outstanding recorded investment | 12,104 | 64 |
Charge offs and specific reserves | $ 0 | $ 0 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 107 | |
Post-modification outstanding recorded investment | 107 | |
Charge offs and specific reserves | $ 0 | |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 11,997 | |
Post-modification outstanding recorded investment | 11,997 | |
Charge offs and specific reserves | $ 0 | |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of loans | loan | 1 | |
Pre-modification outstanding recorded investment | $ 64 | |
Post-modification outstanding recorded investment | 64 | |
Charge offs and specific reserves | $ 0 |
Loans and allowance for cred_13
Loans and allowance for credit losses - Individually Assessed Allowance for Credit Losses for Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | $ 157,954 | $ 170,389 | $ 89,141 | $ 31,139 |
Individually assessed allowance for credit loss | 1,223 | 2,039 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 14,643 | 14,748 | 10,881 | 4,805 |
Individually assessed allowance for credit loss | 354 | 373 | ||
Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 38,622 | 58,477 | 22,842 | 10,194 |
Individually assessed allowance for credit loss | 96 | 95 | ||
Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 19,572 | 19,220 | 13,006 | 3,112 |
Individually assessed allowance for credit loss | 0 | 0 | ||
Residential real estate | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 9,268 | 10,534 | 6,213 | 752 |
Individually assessed allowance for credit loss | 8 | 9 | ||
Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 11,657 | 7,174 | 2,328 | 544 |
Individually assessed allowance for credit loss | 0 | 0 | ||
Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 3,609 | 4,849 | 9,047 | 4,109 |
Individually assessed allowance for credit loss | 70 | 30 | ||
Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 50,179 | 44,147 | 18,005 | 4,621 |
Individually assessed allowance for credit loss | 694 | 1,531 | ||
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 10,404 | 11,240 | $ 6,819 | $ 3,002 |
Individually assessed allowance for credit loss | 1 | 1 | ||
Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 35,175 | 16,832 | ||
Real Estate | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,449 | 0 | ||
Real Estate | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 5,513 | 3,877 | ||
Real Estate | Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,725 | 226 | ||
Real Estate | Residential real estate | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 1,256 | 1,174 | ||
Real Estate | Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Real Estate | Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 13,451 | 3,391 | ||
Real Estate | Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 11,781 | 8,164 | ||
Real Estate | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 12,255 | 1,728 | ||
Financial Assets and Equipment | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 11,770 | 1,728 | ||
Financial Assets and Equipment | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | Residential real estate | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 485 | 0 | ||
Financial Assets and Equipment | Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Financial Assets and Equipment | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Type of Collateral | 0 | 0 | ||
Collateral Pledged | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 1,001 | 1,687 | ||
Collateral Pledged | Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 230 | 117 | ||
Collateral Pledged | Construction | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 0 | 0 | ||
Collateral Pledged | Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 0 | 0 | ||
Collateral Pledged | Residential real estate | Residential line of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 8 | 9 | ||
Collateral Pledged | Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 0 | 0 | ||
Collateral Pledged | Commercial real estate | Owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 69 | 30 | ||
Collateral Pledged | Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | 694 | 1,531 | ||
Collateral Pledged | Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually assessed allowance for credit loss | $ 0 | $ 0 |
Loans and allowance for cred_14
Loans and allowance for credit losses - Deferrals Program (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 152,163 | $ 202,517 |
% of Loans | 2.20% | 2.90% |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 2,041 | $ 7,118 |
% of Loans | 0.20% | 0.50% |
Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 2,247 | $ 1,918 |
% of Loans | 0.20% | 0.20% |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 11,002 | $ 19,201 |
% of Loans | 1.00% | 1.80% |
Residential real estate | Residential line of credit | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 268 | $ 204 |
% of Loans | 0.10% | 0.00% |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 2,167 | $ 3,305 |
% of Loans | 0.80% | 1.90% |
Commercial real estate | Owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 7,276 | $ 19,815 |
% of Loans | 0.80% | 2.10% |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 117,004 | $ 139,590 |
% of Loans | 7.10% | 8.70% |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 10,158 | $ 11,366 |
% of Loans | 3.40% | 3.60% |
Other real estate owned - Summa
Other real estate owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Real Estate [Roll Forward] | ||
Balance at beginning of period | $ 12,111 | $ 18,939 |
Transfers from loans | 1,395 | 365 |
Transfers to premises and equipment | 0 | (841) |
Proceeds from sale of other real estate owned | (2,495) | (1,442) |
Gain on sale of other real estate owned | 828 | 175 |
Loans provided for sales of other real estate owned | (330) | 0 |
Write-downs and partial liquidations | (332) | (124) |
Balance at end of period | $ 11,177 | $ 17,072 |
Other real estate owned - Narra
Other real estate owned - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | ||
Other real estate owned included excess land and facilities held for sale | $ 6,442 | $ 5,703 |
Residential Real Estate Properties | ||
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | 1,281 | 1,890 |
Total foreclosure proceedings in process | $ 105 | $ 167 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)branchleaselease_renewal_option | Dec. 31, 2022USD ($) | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Lessee, number of operating leases | lease | 58 | ||
Lessee, number of finance leases | branch | 1 | ||
Lessee, number of total operating leases, noncurrent | lease | 48 | ||
Lessee, number of total finance leases, noncurrent | branch | 1 | ||
Lessee, operating and finance lease, number of options to renew | lease_renewal_option | 1 | ||
Operating lease right-of-use assets | $ 48,453 | $ 49,537 | |
Operating lease liabilities | $ 54,232 | $ 55,187 | |
Forecast | Corporate headquarters | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 29,000 | ||
Operating lease liabilities | $ 30,000 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating and finance lease, term of contract | 1 year | ||
Lessee, operating and finance lease, renewal term | 20 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating and finance lease, term of contract | 34 years |
Leases - Information Related to
Leases - Information Related to Company's Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases | $ 48,453 | $ 49,537 |
Finance leases | 1,560 | 1,588 |
Total right-of-use assets | 50,013 | 51,125 |
Operating leases | 54,232 | 55,187 |
Finance leases | 1,576 | 1,598 |
Total lease liabilities | $ 55,808 | $ 56,785 |
Weighted average remaining lease term (in years) - operating | 12 years 1 month 6 days | 12 years 2 months 12 days |
Weighted average remaining lease term (in years) - finance | 14 years 1 month 6 days | 14 years 4 months 24 days |
Weighted average discount rate - operating | 2.66% | 2.65% |
Weighted average discount rate - finance | 1.76% | 1.76% |
Right-of-use asset - finance [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Lease liabilities - finance [Extensible List] | Borrowings | Borrowings |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,939 | $ 1,289 |
Operating lease, short-term lease cost | 87 | 136 |
Operating lease, variable lease cost | 235 | 138 |
Operating lease, impairment | 38 | 0 |
Finance lease, interest on lease liabilities | 6 | 0 |
Finance lease, amortization of right-of-use asset | 28 | 0 |
Total lease cost | $ 2,333 | $ 1,563 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
March 31, 2022 | $ 8,037 | |
March 31, 2023 | 7,339 | |
March 31, 2024 | 6,190 | |
March 31, 2025 | 5,444 | |
March 31, 2026 | 4,899 | |
Thereafter | 33,008 | |
Total undiscounted future minimum lease payments | 64,917 | |
Less: imputed interest | (10,685) | |
Operating leases | 54,232 | $ 55,187 |
Finance Lease | ||
March 31, 2022 | 114 | |
March 31, 2023 | 117 | |
March 31, 2024 | 118 | |
March 31, 2025 | 120 | |
March 31, 2026 | 122 | |
Thereafter | 1,194 | |
Total undiscounted future minimum lease payments | 1,785 | |
Less: imputed interest | (209) | |
Lease liability | $ 1,576 | $ 1,598 |
Mortgage servicing rights - Cha
Mortgage servicing rights - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Carrying value at beginning of period | $ 79,997 | $ 75,521 |
Capitalization | 11,594 | 7,796 |
Change in fair value: | ||
Due to pay-offs/pay-downs | (9,321) | (4,643) |
Due to change in valuation inputs or assumptions | 21,922 | (16,093) |
Carrying value at end of period | $ 104,192 | $ 62,581 |
Mortgage servicing rights - Ser
Mortgage servicing rights - Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing income: | ||
Servicing income | $ 6,931 | $ 5,018 |
Change in fair value of mortgage servicing rights | 12,601 | (20,736) |
Change in fair value of derivative hedging instruments | (17,864) | 14,868 |
Servicing income | 1,668 | (850) |
Servicing expenses | 2,532 | 1,401 |
Net servicing loss | $ (864) | $ (2,251) |
Mortgage servicing rights - Dat
Mortgage servicing rights - Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 10,113,716 | $ 9,787,657 |
Weighted-average prepayment speed (CPR) | 8.04% | 14.07% |
Estimated impact on fair value of a 10% increase | $ (4,247) | $ (4,493) |
Estimated impact on fair value of a 20% increase | $ (8,191) | $ (8,599) |
Discount rate | 11.81% | 11.49% |
Estimated impact on fair value of a 100 bp increase | $ (4,166) | $ (2,942) |
Estimated impact on fair value of a 200 bp increase | $ (8,024) | $ (5,674) |
Weighted-average coupon interest rate | 3.45% | 3.58% |
Weighted-average servicing fee (basis points) | 0.28% | 0.28% |
Weighted-average remaining maturity (in months) | 329 months | 328 months |
Mortgage servicing rights - Nar
Mortgage servicing rights - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 170,861 | $ 147,957 |
Income taxes - Allocation of Fe
Income taxes - Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current | $ 5,949 | $ 8,168 |
Provision for deferred income taxes | 9,639 | (8,088) |
Total | $ 15,588 | $ 80 |
Income taxes - Reconciliation o
Income taxes - 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, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal taxes calculated at statutory rate, amount | $ 14,377 | $ 173 |
Amount increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 1,750 | (132) |
Expense (benefit) from equity based compensation | (221) | 139 |
Municipal interest income, net of interest disallowance | (424) | (264) |
Bank owned life insurance | (84) | (18) |
Merger costs | 0 | 131 |
Section 162(m) limitation | 227 | 0 |
Other | (37) | 51 |
Total | $ 15,588 | $ 80 |
Federal taxes calculated at statutory rate, percent | 21.00% | 21.00% |
Percentage increase (decrease) resulting from: | ||
State taxes, net of federal benefit | 2.60% | (16.00%) |
Expense (benefit) from equity based compensation | (0.30%) | 16.80% |
Municipal interest income, net of interest disallowance | (0.60%) | (32.00%) |
Bank owned life insurance | (0.10%) | (2.20%) |
Merger costs | 0.00% | 15.90% |
Section 162(m) limitation | 0.003 | 0 |
Other | (0.10%) | 6.20% |
Total | 22.80% | 9.70% |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Aug. 15, 2020 |
Business Acquisition [Line Items] | |||
Acquired net operating losses | $ 1,753 | $ 1,753 | |
Franklin Financial Network, Inc. | |||
Business Acquisition [Line Items] | |||
Acquired net operating losses | $ 8,346 |
Income taxes - Schedule of Net
Income taxes - Schedule of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 44,590 | $ 48,409 |
Operating lease liabilities | 14,247 | 14,496 |
Federal net operating loss | 1,753 | 1,753 |
Deferred compensation | 10,385 | 8,872 |
Unrealized loss on cash flow hedges | 387 | 499 |
Other | 18,804 | 19,101 |
Subtotal | 90,166 | 93,130 |
Deferred tax liabilities: | ||
FHLB stock dividends | (561) | (561) |
Operating leases - right of use assets | (12,912) | (13,197) |
Depreciation | (7,235) | (7,491) |
Amortization of core deposit intangibles | (510) | (684) |
Unrealized gain on equity securities | (3,785) | (17) |
Unrealized gain on debt securities | (5,193) | (13,027) |
Mortgage servicing rights | (27,107) | (20,803) |
Goodwill | (11,912) | (11,301) |
Other | (10,140) | (9,653) |
Subtotal | (79,355) | (76,734) |
Net deferred tax assets | $ 10,811 | $ 16,396 |
Commitments and contingencies -
Commitments and contingencies - Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 2,662,948 | $ 2,787,594 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 2,613,370 | 2,719,996 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 49,578 | $ 67,598 |
Commitments and contingencies_2
Commitments and contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Floating interest rate loan commitments | $ 1,920,000 | $ 1,650,000 | |
Total principal amount of loans repurchased or indemnified | $ 708 | $ 2,799 |
Commitments and contingencies_3
Commitments and contingencies - Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 170,389 | $ 31,139 |
Balance at end of period | 157,954 | 89,141 |
Unfunded Commitments | ||
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | 16,378 | 0 |
Impact of CECL adoption on provision for credit losses on unfunded commitments | 0 | 2,947 |
Increase in provision for credit losses from unfunded commitments acquired in business combination | 0 | 70 |
Provision for credit losses on unfunded commitments | (2,222) | 1,601 |
Balance at end of period | $ 14,156 | $ 4,618 |
Commitments and contingencies_4
Commitments and contingencies - Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies [Roll Forward] | ||
Balance at beginning of period | $ 5,928 | $ 3,529 |
Provision for loan repurchases or indemnifications | 440 | 372 |
Losses on loans repurchased or indemnified | (84) | (72) |
Balance at end of period | $ 6,284 | $ 3,829 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2017USD ($)derivative | Mar. 31, 2021USD ($)derivative | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | |
Derivative [Line Items] | ||||
Notional amount | $ 100,000,000 | |||
Net liability position | $ 0 | $ 0 | ||
Cash collateral pledged on derivatives | $ 57,123,000 | 57,985,000 | ||
Minimum | ||||
Derivative [Line Items] | ||||
Period to lock interest rate on mortgage loan commitments | 45 days | |||
Maximum | ||||
Derivative [Line Items] | ||||
Period to lock interest rate on mortgage loan commitments | 90 days | |||
Subordinated debt | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | derivative | 2 | |||
Borrowings | $ 30,930,000 | |||
Interest rate swaps | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | derivative | 3 | |||
Interest rate swaps | Subordinated debt | ||||
Derivative [Line Items] | ||||
Notional amount | 30,000,000 | |||
Fair value of contract liability balances of interest rate swaps | $ 1,481,000 | $ 1,909,000 | ||
Interest rate swaps three years | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000,000 | |||
Derivative notional amount maturity period | 3 years | |||
Interest rate swaps four years | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000,000 | |||
Derivative notional amount maturity period | 4 years | |||
Interest rate swaps five years | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000,000 | |||
Derivative notional amount maturity period | 5 years | |||
Gain on canceled derivatives | $ 1,564,000 | |||
London Interbank Offered Rate (LIBOR) | Interest rate swaps | Subordinated debt | ||||
Derivative [Line Items] | ||||
Derivative variable interest rate | 2.08% |
Derivatives - Derivative Financ
Derivatives - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 31, 2017 |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 100,000 | ||
Not designated as hedging | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 3,733,274 | $ 3,532,227 | |
Asset | 65,203 | 68,938 | |
Liability | 29,271 | 46,333 | |
Not designated as hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 685,330 | 606,878 | |
Asset | 26,419 | 34,547 | |
Liability | 26,272 | 34,317 | |
Not designated as hedging | Forward commitments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,575,965 | 1,358,328 | |
Asset | 25,835 | 0 | |
Liability | 0 | 11,633 | |
Not designated as hedging | Interest rate-lock commitments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,058,779 | 1,191,621 | |
Asset | 12,949 | 34,391 | |
Liability | 0 | 0 | |
Not designated as hedging | Futures contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 413,200 | 375,400 | |
Asset | 0 | 0 | |
Liability | 2,999 | 383 | |
Designated as hedging | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 30,000 | 30,000 | |
Asset | 0 | 0 | |
Liability | $ 1,481 | $ 1,909 |
Derivatives - Gains (Losses) In
Derivatives - Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivatives, Fair Value [Line Items] | ||
Net tax benefit on reclassification adjustment for gain on hedging activities | $ 0 | $ 52 |
Amount of gain (loss) recognized in other comprehensive income | 316 | (1,145) |
Net tax (benefit) expense recognized on gain (loss) on hedging activities | (112) | 403 |
Not designated as hedging | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 5,484 | 4,916 |
Not designated as hedging | Interest rate-lock commitments | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (21,442) | 20,462 |
Not designated as hedging | Forward commitments | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | 43,258 | (26,457) |
Not designated as hedging | Futures contracts | Mortgage Banking Income | ||
Derivatives, Fair Value [Line Items] | ||
Gains (losses) on derivative financial instruments | (16,332) | 10,911 |
Designated as hedging | ||
Derivatives, Fair Value [Line Items] | ||
Total cash flow hedge gain (loss) and derivative excluded component increase (decrease) | (137) | 135 |
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 | 0 | 147 |
Loss included in interest expense on borrowings | $ (137) | $ (12) |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 5,901,000 | $ 3,863,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 5,901,000 | 3,863,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 5,360,000 | 857,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 541,000 | 3,006,000 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 21,416,000 | 34,051,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 21,416,000 | 34,051,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 5,360,000 | 857,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 16,056,000 | 33,194,000 |
Net amounts | $ 0 | $ 0 |
Fair value of financial instr_3
Fair value of financial instruments - Estimated Fair Values and Carrying Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Financial assets: | |||
Loans held for sale | $ 1,009,762 | $ 899,173 | |
Interest receivable | 44,393 | $ 43,603 | |
Carrying amount | |||
Financial assets: | |||
Cash and cash equivalents | 1,895,133 | 1,317,898 | |
Investment securities | 1,229,845 | 1,176,991 | |
Loans, net | 6,889,388 | 6,912,570 | |
Loans held for sale | 1,009,762 | 899,173 | |
Interest receivable | 44,393 | 43,603 | |
Mortgage servicing rights | 104,192 | 79,997 | |
Derivatives | 65,203 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,876,456 | 8,020,783 | |
Deposits, With stated maturities | 1,380,430 | 1,437,254 | |
Securities sold under agreement to repurchase and federal funds sold | 29,234 | 32,199 | |
Subordinated debt | 149,369 | 189,527 | |
Other borrowings | 1,576 | 16,598 | |
Interest payable | 4,187 | 6,772 | |
Derivatives | 30,752 | 48,242 | |
Aggregate fair value | |||
Financial assets: | |||
Cash and cash equivalents | 1,895,133 | 1,317,898 | |
Investment securities | 1,229,845 | 1,176,991 | |
Loans, net | 7,042,144 | 7,058,693 | |
Loans held for sale | 1,009,762 | 899,173 | |
Interest receivable | 44,393 | 43,603 | |
Mortgage servicing rights | 104,192 | 79,997 | |
Derivatives | 65,203 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,876,456 | 8,020,783 | |
Deposits, With stated maturities | 1,391,861 | 1,446,605 | |
Securities sold under agreement to repurchase and federal funds sold | 29,234 | 32,199 | |
Subordinated debt | 150,954 | 192,149 | |
Other borrowings | 1,576 | 16,598 | |
Interest payable | 4,187 | 6,772 | |
Derivatives | 30,752 | 48,242 | |
Aggregate fair value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 1,895,133 | 1,317,898 | |
Investment securities | 0 | 0 | |
Loans, net | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Interest receivable | 30 | 33 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 0 | 0 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,876,456 | 8,020,783 | |
Deposits, With stated maturities | 0 | 0 | |
Securities sold under agreement to repurchase and federal funds sold | 29,234 | 32,199 | |
Subordinated debt | 0 | 0 | |
Other borrowings | 0 | 0 | |
Interest payable | 246 | 327 | |
Derivatives | 0 | 0 | |
Aggregate fair value | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 1,229,845 | 1,176,991 | |
Loans, net | 0 | 0 | |
Loans held for sale | 834,779 | 683,770 | |
Interest receivable | 5,376 | 5,254 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 65,203 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 0 | 0 | |
Deposits, With stated maturities | 1,391,861 | 1,446,605 | |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Other borrowings | 1,576 | 16,598 | |
Interest payable | 3,110 | 4,210 | |
Derivatives | 30,752 | 48,242 | |
Aggregate fair value | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 0 | 0 | |
Loans, net | 7,042,144 | 7,058,693 | |
Loans held for sale | 174,983 | 215,403 | |
Interest receivable | 38,987 | 38,316 | |
Mortgage servicing rights | 104,192 | 79,997 | |
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 | |
Subordinated debt | 150,954 | 192,149 | |
Other borrowings | 0 | 0 | |
Interest payable | 831 | 2,235 | |
Derivatives | $ 0 | $ 0 |
Fair value of financial instr_4
Fair value of financial instruments - Balances and Levels of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Financial assets: | |||
Available-for-sale debt securities, at fair value | $ 1,225,178 | $ 1,172,400 | |
Equity securities, at fair value | 4,667 | 4,591 | |
Loans held for sale | 1,009,762 | $ 899,173 | |
Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 838,708 | 773,336 | |
Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 20,635 | 21,588 | |
Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 348,776 | 356,329 | |
Treasury securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 14,576 | 16,628 | |
Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,483 | 2,516 | |
Recurring Basis | |||
Financial assets: | |||
Equity securities, at fair value | 4,667 | 4,591 | |
Investment securities | 1,229,845 | 1,176,991 | |
Loans held for sale | 1,009,762 | 899,173 | |
Mortgage servicing rights | 104,192 | 79,997 | |
Derivatives | 65,203 | 68,938 | |
Financial liabilities: | |||
Derivatives | 30,752 | 48,242 | |
Recurring Basis | U.S. government agency securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,003 | ||
Recurring Basis | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 838,708 | 773,336 | |
Recurring Basis | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 20,635 | 21,588 | |
Recurring Basis | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 348,776 | ||
Recurring Basis | Municipals, tax-exempt | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 356,329 | ||
Recurring Basis | Treasury securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 14,576 | 16,628 | |
Recurring Basis | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,483 | 2,516 | |
Recurring Basis | 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 | |
Recurring Basis | 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 | ||
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | ||
Recurring Basis | 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 | ||
Recurring Basis | 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 | |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Significant other observable inputs (level 2) | |||
Financial assets: | |||
Equity securities, at fair value | 4,667 | 4,591 | |
Investment securities | 1,229,845 | 1,176,991 | |
Loans held for sale | 834,779 | 683,770 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 65,203 | 68,938 | |
Financial liabilities: | |||
Derivatives | 30,752 | 48,242 | |
Recurring Basis | Significant other observable inputs (level 2) | U.S. government agency securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,003 | ||
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 838,708 | 773,336 | |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 20,635 | 21,588 | |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 348,776 | ||
Recurring Basis | Significant other observable inputs (level 2) | Municipals, tax-exempt | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 356,329 | ||
Recurring Basis | Significant other observable inputs (level 2) | Treasury securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 14,576 | 16,628 | |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,483 | 2,516 | |
Recurring Basis | Significant unobservable inputs (level 3) | |||
Financial assets: | |||
Equity securities, at fair value | 0 | 0 | |
Investment securities | 0 | 0 | |
Loans held for sale | 174,983 | 215,403 | |
Mortgage servicing rights | 104,192 | 79,997 | |
Derivatives | 0 | 0 | |
Financial liabilities: | |||
Derivatives | 0 | 0 | |
Recurring Basis | Significant unobservable inputs (level 3) | U.S. government agency securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | ||
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Significant unobservable inputs (level 3) | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Significant unobservable inputs (level 3) | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | ||
Recurring Basis | Significant unobservable inputs (level 3) | Municipals, tax-exempt | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | ||
Recurring Basis | Significant unobservable inputs (level 3) | Treasury securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 0 | 0 | |
Recurring Basis | Significant unobservable inputs (level 3) | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | $ 0 | $ 0 |
Fair value of financial instr_5
Fair value of financial instruments - Balances and Levels of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Non-recurring Basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Other real estate owned | $ 3,870 | $ 6,662 |
Collateral dependent loans | 47,430 | 18,560 |
Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 13,219 | 1,728 |
Construction | ||
Financial assets: | ||
Collateral dependent loans | 5,513 | 3,877 |
Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 1,725 | 226 |
Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 1,256 | 1,174 |
Residential real estate | Multifamily | ||
Financial assets: | ||
Collateral dependent loans | 485 | |
Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 13,451 | 3,391 |
Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 11,781 | 8,164 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential real estate | Multifamily | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Residential real estate | Multifamily | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Significant other observable inputs (level 2) | Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant other observable inputs (level 2) | Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 3,870 | 6,662 |
Collateral dependent loans | 47,430 | 18,560 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 13,219 | 1,728 |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 5,513 | 3,877 |
Significant unobservable inputs (level 3) | Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 1,725 | 226 |
Significant unobservable inputs (level 3) | Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 1,256 | 1,174 |
Significant unobservable inputs (level 3) | Residential real estate | Multifamily | ||
Financial assets: | ||
Collateral dependent loans | 485 | |
Significant unobservable inputs (level 3) | Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 13,451 | 3,391 |
Significant unobservable inputs (level 3) | Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | $ 11,781 | $ 8,164 |
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) - Non-recurring Basis $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | $ 47,430 | $ 18,560 |
Other real estate owned | 3,870 | 6,662 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 47,430 | 18,560 |
Other real estate owned | $ 3,870 | $ 6,662 |
Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0 | 0 |
Other real estate owned, measurement input | 0 | 0 |
Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.30 | 0.30 |
Other real estate owned, measurement input | 0.15 | 0.15 |
Fair value of financial instr_7
Fair value of financial instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs | 100.00% | ||
Mortgage Loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Net (losses) gains from fair value changes of mortgage loans | $ (20,716) | $ 5,818 | |
GNMA | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Delinquent GNMA loans that had been previously sold | $ 143,100 | $ 151,184 |
Fair value of financial instr_8
Fair value of financial instruments - Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | $ 1,009,762 | $ 899,173 | |
Commercial and industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 174,983 | 215,403 | |
Residential real estate | 1-to-4 family mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 834,779 | $ 683,770 | |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 1,009,762 | $ 899,173 | |
Recurring Basis | Commercial and industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 174,983 | 215,403 | |
Recurring Basis | Residential real estate | 1-to-4 family mortgage | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | $ 834,779 | $ 683,770 |
Fair value of financial instr_9
Fair value of financial instruments - Changes in Fair Value Associated with Commercial Loans Held for Sale (Details) - Franklin Financial Network, Inc. - Commercial and industrial $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Carrying amount | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Carrying value at beginning of period | $ 239,063 |
Pay-downs and pay-offs | (39,566) |
Write-offs to discount | (2,007) |
Changes in valuation included in other noninterest income | 0 |
Carrying value at end of period | 197,490 |
Fair Value Discount | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Carrying value at beginning of period | (23,660) |
Pay-downs and pay-offs | 0 |
Write-offs to discount | 2,007 |
Changes in valuation included in other noninterest income | (853) |
Carrying value at end of period | (22,506) |
Aggregate fair value | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Carrying value at beginning of period | 215,403 |
Pay-downs and pay-offs | (39,566) |
Write-offs to discount | 0 |
Changes in valuation included in other noninterest income | (853) |
Carrying value at end of period | $ 174,984 |
Fair value of financial inst_10
Fair value of financial instruments - Differences Between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Aggregate fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 834,779 | $ 683,770 |
Past due loans of 90 days or more | 0 | 83 |
Nonaccrual loans | 12,779 | 6,406 |
Aggregate fair value | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 162,204 | 208,914 |
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 | 823,612 | 651,887 |
Past due loans of 90 days or more | 0 | 163 |
Nonaccrual loans | 24,788 | 12,033 |
Aggregate Unpaid Principal Balance | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 172,702 | 226,867 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 11,167 | 31,883 |
Past due loans of 90 days or more | 0 | (80) |
Nonaccrual loans | (12,009) | (5,627) |
Difference | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ (10,498) | $ (17,953) |
Segment reporting - Narrative (
Segment reporting - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segmentchannel | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of distinct reportable segments | segment | 2 | |
Number of distinct delivery channels | channel | 2 | |
Total net contribution reclassification from segment realignment | $ 68,462 | $ 825 |
Warehouse line of credit interest rate | 3.25% | |
Mortgage | ||
Segment Reporting Information [Line Items] | ||
Total net contribution reclassification from segment realignment | 16,348 | $ 8,019 |
Interest paid | $ 5,400 | 2,375 |
Mortgage | Prime Interest Rate | ||
Segment Reporting Information [Line Items] | ||
Warehouse line of credit interest rate | 3.25% | |
Banking | ||
Segment Reporting Information [Line Items] | ||
Total net contribution reclassification from segment realignment | $ 52,114 | $ (7,194) |
Segment Realignment, Reclassification Adjustment | Mortgage | ||
Segment Reporting Information [Line Items] | ||
Total net contribution reclassification from segment realignment | 3,500 | |
Segment Realignment, Reclassification Adjustment | Banking | ||
Segment Reporting Information [Line Items] | ||
Total net contribution reclassification from segment realignment | $ (3,500) |
Segment reporting - Segment Fin
Segment reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Net interest income | $ 82,576 | $ 56,249 | |
Provision for credit losses | (13,854) | 29,565 | |
Mortgage banking income | 60,595 | 38,613 | |
Change in fair value of mortgage servicing rights, net of hedging | (5,263) | (5,868) | |
Other noninterest income | 11,398 | 9,955 | |
Depreciation and amortization | 2,056 | 1,612 | |
Amortization of intangibles | 1,440 | 1,203 | |
Other noninterest expense | 91,202 | 65,744 | |
Income before income taxes | 68,462 | 825 | |
Income tax expense | 15,588 | 80 | |
Net income applicable to FB Financial Corporation and noncontrolling interest | 52,874 | 745 | |
Net income applicable to noncontrolling interest | 0 | 0 | |
Net income applicable to FB Financial Corporation | 52,874 | 745 | |
Assets | 11,935,826 | 6,655,687 | $ 11,207,330 |
Goodwill | 242,561 | 174,859 | $ 242,561 |
(Reversal) provision for credit losses on unfunded commitments | (2,222) | 1,601 | |
Merger costs | 0 | 3,050 | |
Banking | |||
Segment Reporting Information [Line Items] | |||
Net interest income | 82,597 | 56,233 | |
Provision for credit losses | (13,854) | 29,565 | |
Mortgage banking income | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | |
Other noninterest income | 11,398 | 9,955 | |
Depreciation and amortization | 1,858 | 1,492 | |
Amortization of intangibles | 1,440 | 1,203 | |
Other noninterest expense | 52,437 | 41,122 | |
Income before income taxes | 52,114 | (7,194) | |
Assets | 10,787,955 | 6,122,217 | |
Goodwill | 242,561 | 174,859 | |
Merger costs | 3,050 | ||
Mortgage | |||
Segment Reporting Information [Line Items] | |||
Net interest income | (21) | 16 | |
Provision for credit losses | 0 | 0 | |
Mortgage banking income | 60,595 | 38,613 | |
Change in fair value of mortgage servicing rights, net of hedging | (5,263) | (5,868) | |
Other noninterest income | 0 | 0 | |
Depreciation and amortization | 198 | 120 | |
Amortization of intangibles | 0 | 0 | |
Other noninterest expense | 38,765 | 24,622 | |
Income before income taxes | 16,348 | 8,019 | |
Assets | 1,147,871 | 533,470 | |
Goodwill | $ 0 | $ 0 |
Minimum capital requirements (D
Minimum capital requirements (Details) $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,353,195 | $ 1,358,897 |
Actual, Ratio | 0.146 | 0.150 |
Minimum Capital adequacy with capital buffer, Amount | $ 972,054 | $ 952,736 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,138,657 | $ 1,090,364 |
Actual, Ratio | 0.123 | 0.120 |
Minimum Capital adequacy with capital buffer, Amount | $ 786,901 | $ 771,262 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,138,657 | $ 1,090,364 |
Actual, Ratio | 0.101 | 0.100 |
Minimum Capital adequacy with capital buffer, Amount | $ 450,971 | $ 435,064 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,108,657 | $ 1,060,364 |
Actual Ratio | 12.00% | 11.70% |
Minimum Capital adequacy with capital buffer, Amount | $ 648,036 | $ 635,157 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,316,420 | $ 1,353,279 |
Actual, Ratio | 0.142 | 0.149 |
Minimum Capital adequacy with capital buffer, Amount | $ 970,431 | $ 951,327 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 924,220 | $ 906,026 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,121,997 | $ 1,142,548 |
Actual, Ratio | 0.121 | 0.126 |
Minimum Capital adequacy with capital buffer, Amount | $ 785,587 | $ 770,122 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
To be well capitalized under prompt corrective action provisions Amount | $ 739,376 | $ 724,820 |
To be well capitalized under prompt corrective action provisions Ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,121,997 | $ 1,142,548 |
Actual, Ratio | 0.100 | 0.105 |
Minimum Capital adequacy with capital buffer, Amount | $ 450,889 | $ 435,279 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, Amount | $ 563,611 | $ 544,098 |
To be well capitalized under prompt corrective action provisions, Ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,121,997 | $ 1,142,548 |
Actual Ratio | 12.10% | 12.60% |
Minimum Capital adequacy with capital buffer, Amount | $ 646,954 | $ 634,218 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, Amount | $ 600,743 | $ 588,917 |
To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Stock-based compensation - Chan
Stock-based compensation - Changes in Restricted Stock Units (Details) - RSUs - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restricted Stock Units Outstanding | ||
Balance at beginning of period (in shares) | 1,047,071,000 | |
Granted (in shares) | 177,941,000 | |
Vested (in shares) | (126,011,000) | |
Forfeited (in shares) | (10,192,000) | |
Balance at end of period (in shares) | 1,088,809,000 | |
Weighted Average Grant Date Fair Value | ||
Balance at beginning of period (in USD per share) | $ 26.06 | |
Granted (USD per share) | 43.13 | $ 36.71 |
Vested (USD per share) | 34.63 | |
Forfeited (USD per share) | 27.72 | |
Balance at end of period (in USD per share) | $ 26.56 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 2,666 | $ 1,883 | |
Dividends declared not paid on restricted stock units | $ 38 | $ 28 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares reserved for issuance (in shares) | 2,357,440 | 2,397,040 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of restricted stock units vested and released | $ 4,364 | $ 4,533 | |
Weighted average grant date fair value price of restricted stock granted (in USD per share) | $ 43.13 | $ 36.71 | |
Compensation cost related to nonvested awards | $ 2,466 | $ 1,802 | |
Unrecognized compensation cost related to nonvested awards | $ 18,103 | $ 13,436 | |
Expected weighted-average period to be recognized | 2 years 8 months 12 days | 2 years 6 months | |
Dividends declared not paid on restricted stock units | $ 651 | $ 613 | |
Awards granted (in shares) | 177,941,000 | ||
Awards forfeited (in shares) | (10,192,000) | ||
RSUs | Independent Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation cost related to nonvested awards | $ 157 | 147 | |
RSUs | 2016-LTIP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 2,188,164 | 2,240,434 | |
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value price of restricted stock granted (in USD per share) | $ 43.20 | ||
Compensation cost related to nonvested awards | $ 200 | $ 81 | |
Unrecognized compensation cost related to nonvested awards | $ 5,895 | ||
Expected weighted-average period to be recognized | 2 years 6 months | ||
Awards granted (in shares) | 65,131 | ||
Award vesting, percentage | 150.00% | ||
Awards forfeited (in shares) | (485) | ||
PSUs | Executives and Other Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Criteria period | 3 years | ||
Vesting period | 3 years | ||
PSUs | Executives and Other Officers | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Core return threshold percentages | 0.00% | ||
PSUs | Executives and Other Officers | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Core return threshold percentages | 200.00% | ||
Employee Stock | ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for issuable (in shares) | 200,000 | ||
Purchase price percentage of subsequent offering periods | 95.00% | ||
Maximum number of shares per participant (in shares) | 725 | ||
Maximum worth of award per participant | $ 25 | ||
Shares issued under plan (in shares) | 21,566,000 | 12,145,000 |
Stock-based compensation - Ch_2
Stock-based compensation - Changes in Performance Stock Units (Details) - PSUs | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted Stock Units Outstanding | |
Balance at beginning of period (in shares) | shares | 53,147 |
Granted (in shares) | shares | 65,131 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | (485) |
Balance at end of period (in shares) | shares | 117,793 |
Weighted Average Grant Date Fair Value | |
Balance at beginning of period (in USD per share) | $ / shares | $ 36.21 |
Granted (USD per share) | $ / shares | 43.20 |
Vested (USD per share) | $ / shares | 0 |
Forfeited (USD per share) | $ / shares | 36.21 |
Balance at end of period (in USD per share) | $ / shares | $ 39.20 |
Related party transactions - Lo
Related party transactions - Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2021 | $ 24,675 |
New loans and advances | 901 |
Change in related party status | (98) |
Repayments | (2,724) |
Loans outstanding at March 31, 2021 | $ 22,754 |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 221,015 | $ 245,084 | |
Aviation Time Sharing Agreement | |||
Related Party Transaction [Line Items] | |||
Payments to related party | 11 | $ 33 | |
Certain Executive Officers, Certain Management and Directors and Their Associates | Unfunded Loan Commitment | |||
Related Party Transaction [Line Items] | |||
Unfunded commitments | 20,267 | 23,059 | |
Director | |||
Related Party Transaction [Line Items] | |||
Unamortized leasehold improvements | 45 | $ 53 | |
Operating lease expense | $ 128 | $ 128 |