Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Reporting Company | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 47,363,275 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 60,908 | $ 110,991 |
Federal funds sold and reverse repurchase agreements | 59,321 | 121,153 |
Interest-bearing deposits in financial institutions | 1,596,868 | 1,085,754 |
Cash and cash equivalents | 1,717,097 | 1,317,898 |
Investments: | ||
Available-for-sale debt securities, at fair value | 1,404,372 | 1,172,400 |
Equity securities, at fair value | 4,803 | 4,591 |
Federal Home Loan Bank stock, at cost | 29,411 | 31,232 |
Loans held for sale, at fair value | 821,529 | 899,173 |
Loans | 7,198,954 | 7,082,959 |
Less: allowance for credit losses | 144,663 | 170,389 |
Net loans | 7,054,291 | 6,912,570 |
Premises and equipment, net | 142,596 | 145,115 |
Other real estate owned, net | 11,986 | 12,111 |
Operating lease right-of-use assets | 45,423 | 49,537 |
Interest receivable | 42,083 | 43,603 |
Mortgage servicing rights, at fair value | 101,615 | 79,997 |
Goodwill | 242,561 | 242,561 |
Core deposit and other intangibles, net | 19,592 | 22,426 |
Other assets | 281,008 | 274,116 |
Total assets | 11,918,367 | 11,207,330 |
Deposits | ||
Noninterest-bearing | 2,484,982 | 2,274,103 |
Interest-bearing checking | 3,015,253 | 2,491,765 |
Money market and savings | 3,421,281 | 3,254,915 |
Customer time deposits | 1,241,540 | 1,375,695 |
Brokered and internet time deposits | 40,900 | 61,559 |
Total deposits | 10,203,956 | 9,458,037 |
Borrowings | 183,962 | 238,324 |
Operating lease liabilities | 50,396 | 55,187 |
Accrued expenses and other liabilities | 108,239 | 164,400 |
Total liabilities | 10,546,553 | 9,915,948 |
Commitments and contingencies (Note 9) | ||
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 47,360,950 and 47,220,743 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 47,361 | 47,222 |
Additional paid-in capital | 902,782 | 898,847 |
Retained earnings | 403,173 | 317,625 |
Accumulated other comprehensive income, net | 18,405 | 27,595 |
Total FB Financial Corporation common shareholders' equity | 1,371,721 | 1,291,289 |
Noncontrolling interest | 93 | 93 |
Total equity | 1,371,814 | 1,291,382 |
Total liabilities and shareholders' equity | $ 11,918,367 | $ 11,207,330 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Jun. 30, 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) | 47,360,950 | 47,220,743 |
Common stock, shares outstanding (in shares) | 47,360,950 | 47,220,743 |
Consolidated statements of inco
Consolidated statements of income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 89,861 | $ 61,092 | $ 179,273 | $ 124,846 |
Interest on securities | ||||
Taxable | 3,844 | 2,619 | 6,663 | 5,675 |
Tax-exempt | 1,933 | 1,590 | 3,889 | 3,023 |
Other | 691 | 306 | 1,289 | 1,737 |
Total interest income | 96,329 | 65,607 | 191,114 | 135,281 |
Interest expense: | ||||
Deposits | 7,919 | 9,309 | 17,745 | 21,477 |
Borrowings | 1,847 | 961 | 4,230 | 2,218 |
Total interest expense | 9,766 | 10,270 | 21,975 | 23,695 |
Net interest income | 86,563 | 55,337 | 169,139 | 111,586 |
Provision for credit losses | (12,885) | 24,039 | (24,517) | 52,003 |
Provision for credit losses on unfunded commitments | (954) | 1,882 | (3,176) | 3,483 |
Net interest income after provisions for credit losses | 100,402 | 29,416 | 196,832 | 56,100 |
Noninterest income: | ||||
Gain (loss) from securities, net | 144 | (28) | 227 | 35 |
(Loss) gain on sales or write-downs of other real estate owned | (23) | 86 | 473 | 137 |
Loss from other assets | (4) | (54) | (15) | (382) |
Other income | 3,038 | 2,487 | 5,180 | 5,262 |
Total noninterest income | 49,300 | 81,491 | 116,030 | 124,191 |
Noninterest expenses: | ||||
Salaries, commissions and employee benefits | 62,367 | 55,258 | 126,938 | 98,880 |
Occupancy and equipment expense | 5,356 | 4,096 | 11,205 | 8,274 |
Legal and professional fees | 2,090 | 1,952 | 4,524 | 3,510 |
Data processing | 2,542 | 2,782 | 4,861 | 5,235 |
Merger costs | 0 | 1,586 | 0 | 4,636 |
Amortization of core deposit and other intangibles | 1,394 | 1,205 | 2,834 | 2,408 |
Advertising | 3,559 | 2,591 | 5,812 | 4,980 |
Other expense | 15,652 | 11,109 | 31,484 | 21,215 |
Total noninterest expense | 92,960 | 80,579 | 187,658 | 149,138 |
Income before income taxes | 56,742 | 30,328 | 125,204 | 31,153 |
Income tax expense | 13,440 | 7,455 | 29,028 | 7,535 |
Net income applicable to FB Financial Corporation and noncontrolling interest | 43,302 | 22,873 | 96,176 | 23,618 |
Net income applicable to noncontrolling interest | 8 | 0 | 8 | 0 |
Net income applicable to FB Financial Corporation | $ 43,294 | $ 22,873 | $ 96,168 | $ 23,618 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.91 | $ 0.71 | $ 2.03 | $ 0.75 |
Diluted (in dollars per share) | $ 0.90 | $ 0.70 | $ 2 | $ 0.74 |
Mortgage banking income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 35,499 | $ 72,168 | $ 90,831 | $ 104,913 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 2,266 | 1,858 | 4,605 | 4,421 |
ATM and interchange fees | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 5,381 | 3,606 | 9,722 | 6,740 |
Investment services and trust income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 2,999 | $ 1,368 | $ 5,007 | $ 3,065 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 43,302 | $ 22,873 | $ 96,176 | $ 23,618 |
Other comprehensive income (loss), net of tax: | ||||
Net change in unrealized gain in available-for-sale securities, net of tax expenses (benefits) of $798, $429, $(2,654) and $4,704 | 2,286 | 1,209 | (9,562) | 13,303 |
Reclassification adjustment for gain on sale of securities included in net income, net of tax expenses of $2, $0, $4 and $0 | (6) | 0 | (11) | 0 |
Net change in unrealized loss in hedging activities, net of tax expenses (benefits) of $23, $(40), $135 and $(443) | 67 | (112) | 383 | (1,257) |
Reclassification adjustment for gain on hedging activities, net of tax expenses of $0, $52, $0 and $104 | 0 | (148) | 0 | (295) |
Total other comprehensive income (loss), net of tax | 2,347 | 949 | (9,190) | 11,751 |
Comprehensive income | 45,649 | 23,822 | 86,986 | 35,369 |
Comprehensive income applicable to noncontrolling interests | 8 | 0 | 8 | 0 |
Comprehensive income applicable to FB Financial Corporation | $ 45,641 | $ 23,822 | $ 86,978 | $ 35,369 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net tax expenses (benefits) on (loss) gain on available for sale securities | $ 798 | $ 429 | $ (2,654) | $ 4,704 |
Net tax expense on reclassification adjustment for gain on sale of securities included in net income | (2) | 0 | (4) | 0 |
Net tax expenses (benefits) recognized on gain (loss) on hedging activities | 23 | (40) | 135 | (443) |
Net tax expenses on reclassification adjustment for gain on hedging activities | $ 0 | $ 52 | $ 0 | $ 104 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Cumulative effect adjustment to adopt ASC 326 | Adjusted balance | Common stock | Common stockAdjusted balance | Additional paid-in capital | Additional paid-in capitalAdjusted balance | Retained earnings | Retained earningsCumulative effect adjustment to adopt ASC 326 | Retained earningsAdjusted balance | Accumulated other comprehensive income, net | Accumulated other comprehensive income, netAdjusted balance | Total common shareholders' equity | Total common shareholders' equityCumulative effect adjustment to adopt ASC 326 | 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 attributable to FB Financial Corporation and noncontrolling interest | 23,618 | 23,618 | 23,618 | ||||||||||||||
Other comprehensive income, net of taxes | 11,751 | 11,751 | 11,751 | ||||||||||||||
Common stock issued in connection with acquisition of the FNB Financial Corp., net of registration costs (See Note 2) | 34,847 | 955 | 33,892 | 34,847 | |||||||||||||
Stock based compensation expense | 4,233 | 11 | 4,222 | 4,233 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (1,162) | 89 | (1,251) | (1,162) | |||||||||||||
Shares issued under employee stock purchase program | 446 | 12 | 434 | 446 | |||||||||||||
Dividends declared | (5,828) | (5,828) | (5,828) | ||||||||||||||
Ending balance at Jun. 30, 2020 | 805,216 | 32,101 | 462,930 | 286,296 | 23,889 | 805,216 | 0 | ||||||||||
Beginning balance at Mar. 31, 2020 | 782,330 | 32,067 | 460,938 | 266,385 | 22,940 | 782,330 | 0 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 22,873 | 22,873 | 22,873 | ||||||||||||||
Other comprehensive income, net of taxes | 949 | 949 | 949 | ||||||||||||||
Stock based compensation expense | 2,350 | 6 | 2,344 | 2,350 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (324) | 28 | (352) | (324) | |||||||||||||
Dividends declared | (2,962) | (2,962) | (2,962) | ||||||||||||||
Ending balance at Jun. 30, 2020 | 805,216 | 32,101 | 462,930 | 286,296 | 23,889 | 805,216 | 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 attributable to FB Financial Corporation and noncontrolling interest | 96,176 | 96,168 | 96,168 | 8 | |||||||||||||
Other comprehensive income, net of taxes | (9,190) | (9,190) | (9,190) | ||||||||||||||
Stock based compensation expense | 5,181 | 5 | 5,176 | 5,181 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (1,940) | 112 | (2,052) | (1,940) | |||||||||||||
Shares issued under employee stock purchase program | 833 | 22 | 811 | 833 | |||||||||||||
Dividends declared | (10,620) | (10,620) | (10,620) | ||||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||||
Ending balance at Jun. 30, 2021 | 1,371,814 | 47,361 | 902,782 | 403,173 | 18,405 | 1,371,721 | 93 | ||||||||||
Beginning balance at Mar. 31, 2021 | 1,329,196 | 47,332 | 900,521 | 365,192 | 16,058 | 1,329,103 | 93 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income attributable to FB Financial Corporation and noncontrolling interest | 43,302 | 43,294 | 43,294 | 8 | |||||||||||||
Other comprehensive income, net of taxes | 2,347 | 2,347 | 2,347 | ||||||||||||||
Stock based compensation expense | 2,515 | 2 | 2,513 | 2,515 | |||||||||||||
Restricted stock units vested and distributed, net of shares withheld | (225) | 27 | (252) | (225) | |||||||||||||
Shares issued under employee stock purchase program | 0 | ||||||||||||||||
Dividends declared | (5,313) | (5,313) | (5,313) | ||||||||||||||
Noncontrolling interest distribution | (8) | (8) | |||||||||||||||
Ending balance at Jun. 30, 2021 | $ 1,371,814 | $ 47,361 | $ 902,782 | $ 403,173 | $ 18,405 | $ 1,371,721 | $ 93 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (USD per share) | $ 0.11 | $ 0.09 | $ 0.22 | $ 0.18 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||||
Net income | $ 43,302,000 | $ 22,873,000 | $ 96,176,000 | $ 23,618,000 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||||
Depreciation and amortization of fixed assets | 4,148,000 | 3,231,000 | |||
Amortization of core deposit and other intangibles | 2,834,000 | 2,408,000 | |||
Capitalization of mortgage servicing rights | (22,167,000) | (20,063,000) | |||
Net change in fair value of mortgage servicing rights | 13,150,000 | 14,340,000 | 549,000 | 35,076,000 | |
Stock-based compensation expense | 5,181,000 | 4,233,000 | |||
Provision for credit losses | (12,885,000) | 24,039,000 | (24,517,000) | 52,003,000 | |
Provision for credit losses on unfunded commitments | (954,000) | 1,882,000 | (3,176,000) | 3,483,000 | |
Provision for mortgage loan repurchases | (706,000) | 855,000 | (266,000) | 1,227,000 | |
Amortization (accretion) of premiums and discounts on acquired loans, net | 284,000 | (2,554,000) | |||
Accretion of discounts and amortization of premiums on securities, net | 4,390,000 | 2,077,000 | |||
Gain from securities, net | (144,000) | 28,000 | (227,000) | (35,000) | |
Originations of loans held for sale | (3,308,882,000) | (2,807,047,000) | |||
Proceeds from sale of loans held for sale | 3,355,152,000 | 2,739,933,000 | |||
Gain on sale and change in fair value of loans held for sale | (86,031,000) | (113,888,000) | |||
Net gain or write-downs of other real estate owned | 23,000 | (86,000) | (473,000) | (137,000) | |
Loss on other assets | 4,000 | 54,000 | 15,000 | 382,000 | |
Provision for deferred income taxes | 3,899,000 | (8,292,000) | 13,538,000 | (16,380,000) | |
Changes in: | |||||
Other assets and interest receivable | (14,488,000) | (102,382,000) | |||
Accrued expenses and other liabilities | (97,146,000) | 47,077,000 | |||
Net cash used in operating activities | (75,106,000) | (147,738,000) | |||
Activity in available-for-sale securities: | |||||
Maturities, prepayments and calls | 86,866,000 | 44,703,000 | 147,906,000 | 72,360,000 | |
Purchases | (354,762,000) | (59,984,000) | |||
Net change in loans | (4,146,000) | (196,303,000) | |||
Sales (purchases) of FHLB stock | 1,821,000 | (1,176,000) | |||
Purchases of premises and equipment | (1,168,000) | (4,827,000) | |||
Proceeds from the sale of other real estate owned | 2,166,000 | 2,708,000 | 4,661,000 | 4,150,000 | |
Net cash paid in business combinations | 0 | (4,227,000) | |||
Net cash used in investing activities | (205,688,000) | (190,007,000) | |||
Cash flows from financing activities: | |||||
Net increase in demand deposits | 900,733,000 | 891,237,000 | |||
Net decrease in time deposits | (154,814,000) | (82,909,000) | |||
Net increase in securities sold under agreements to repurchase | 857,000 | 5,795,000 | |||
Payment of subordinated debt | (40,000,000) | 0 | |||
Accretion of subordinated debt fair value premium and amortization of issuance costs, net | (176,000) | 0 | |||
(Payments on) proceeds from other borrowings | (15,000,000) | 15,000,000 | |||
Share based compensation withholding payments | (1,940,000) | (1,162,000) | |||
Net proceeds from sale of common stock under employee stock purchase program | 833,000 | 446,000 | |||
Dividends paid | (10,492,000) | (5,751,000) | |||
Noncontrolling interest distribution | (8,000) | 0 | |||
Net cash provided by financing activities | 679,993,000 | 822,656,000 | |||
Net change in cash and cash equivalents | 399,199,000 | 484,911,000 | |||
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 | 1,717,097,000 | 717,592,000 | 1,717,097,000 | 717,592,000 | 1,317,898,000 |
Supplemental cash flow information: | |||||
Interest paid | 24,611,000 | 23,081,000 | |||
Taxes paid | 45,335,000 | 1,590,000 | |||
Supplemental noncash disclosures: | |||||
Transfers from loans to other real estate owned | 3,201,000 | 641,000 | 4,596,000 | 1,006,000 | |
Transfers from premises and equipment to other real estate owned | 0 | 841,000 | |||
Loans provided for sales of other real estate owned | 203,000 | 0 | 533,000 | 0 | |
Transfers from loans to loans held for sale | 3,709,000 | 6,317,000 | |||
Transfers from loans held for sale to loans | 29,322,000 | 14,358,000 | |||
Stock consideration paid in business combination | 0 | 35,041,000 | |||
Trade date payable - securities | 41,722,000 | 5,431,000 | $ 0 | ||
Dividends declared not paid on restricted stock units | $ 128,000 | $ 77,000 | 128,000 | 77,000 | |
Decrease to retained earnings for adoption of new accounting standard | 0 | 25,018,000 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 670,000 | $ 806,000 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 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 June 30, 2021, the Bank had 81 full-service branches throughout Tennessee, 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 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 June 30, 2021, the Company continues to qualify as an emerging growth company as defined by the "Jumpstart Our Business Startups Act," however beginning on 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 most restrictions were lifted and vaccines became widely available during the first half of 2021, during the three months ended June 30, 2021, concern began building regarding the potential impact the new Delta variant of the virus may have on the global economy and the efficacy of available vaccines to protect against widespread infection. As such, 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 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 43,294 $ 22,873 $ 96,168 $ 23,618 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 43,294 $ 22,873 $ 96,168 $ 23,618 Weighted average basic shares outstanding 47,351,969 32,094,274 47,312,312 $ 31,676,004 Basic earnings per common share $ 0.91 $ 0.71 $ 2.03 $ 0.75 Diluted earnings per common share: Earnings available to common shareholders $ 43,294 $ 22,873 $ 96,168 $ 23,618 Weighted average basic shares outstanding 47,351,969 32,094,274 47,312,312 31,676,004 Weighted average diluted shares contingently issuable (1) 641,804 412,143 664,221 433,190 Weighted average diluted shares outstanding 47,993,773 32,506,417 47,976,533 32,109,194 Diluted earnings per common share $ 0.90 $ 0.70 $ 2.00 $ 0.74 (1) Excludes 164,472 and 250,776 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2021, respectively and 352,888 for three and six months ended June 30, 2020. Recently adopted accounting policies: The Company did not modify or adopt any new accounting policies during the three and six months ended June 30, 2021 that were not disclosed in the Company's 2020 audited consolidated financial statements included on Form 10-K, other than as described below. As previously disclosed, during the three months 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 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 June 30, 2021, there are none that are likely to impact the Company's financial statements or disclosures. |
Mergers and acquisitions
Mergers and acquisitions | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Mergers and acquisitions | Mergers and acquisitions: The following mergers and acquisitions were accounted for pursuant to Accounting Standards Codification 805, "Business Combinations". 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. 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 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 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. 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 or loans that Farmers National had classified as nonaccrual or troubled debt restructuring 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 and six months ended June 30, 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 June 30, Six Months Ended June 30, 2020 2020 Net interest income $ 84,610 $ 169,352 Total revenues $ 176,657 $ 310,254 Net income applicable to FB Financial Corporation $ 32,623 $ 32,149 |
Investment securities
Investment securities | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and December 31, 2020: June 30, 2021 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 $ 8,255 $ 1 $ (1) $ — $ 8,255 Mortgage-backed securities - residential 1,031,233 9,507 (5,737) — 1,035,003 Mortgage-backed securities - commercial 14,715 446 — — 15,161 Municipal securities 314,862 18,088 (67) — 332,883 U.S. Treasury securities 10,486 48 — — 10,534 Corporate securities 2,500 42 (6) — 2,536 Total $ 1,382,051 $ 28,132 $ (5,811) $ — $ 1,404,372 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 June 30, 2021 and December 31, 2020, total accrued interest receivable on debt securities was $4,630 and $4,540, respectively. As of June 30, 2021 and December 31, 2020, the Company had $4,803 and $4,591, in marketable equity securities recorded at fair value, respectively. Securities pledged at June 30, 2021 and December 31, 2020 had carrying amounts of $998,047 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 June 30, 2021 and December 31, 2020, there were no trade date receivables that related to sales settled after period end. At June 30, 2021 and December 31, 2020, there were $41,722 and $0 respectively, in trade date payables that related to purchases settled after period end. The amortized cost and fair value of debt securities by contractual maturity at June 30, 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. June 30, December 31, 2021 2020 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 18,861 $ 18,971 $ 35,486 $ 35,662 Due in one to five years 21,955 22,387 24,278 24,684 Due in five to ten years 44,248 45,746 40,038 41,332 Due in over ten years 251,039 267,104 257,721 275,798 336,103 354,208 357,523 377,476 Mortgage-backed securities - residential 1,031,233 1,035,003 760,099 773,336 Mortgage-backed securities - commercial 14,715 15,161 20,226 21,588 Total debt securities $ 1,382,051 $ 1,404,372 $ 1,137,848 $ 1,172,400 Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Proceeds from sales $ — $ — $ — $ — Proceeds from maturities, prepayments and calls 86,866 44,703 147,906 72,360 Gross realized gains 8 — 15 — Gross realized losses — — — — Additionally, net unrealized gains on equity securities of $136 and $212 were recognized in the three and six months ended June 30, 2021, respectively, and $28 net loss and $35 net gain were recognized in the three and six months ended June 30, 2020, respectively. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. government agency securities $ 1,250 $ (1) $ — $ — $ 1,250 $ (1) Mortgage-backed securities - residential 449,834 (5,737) — — 449,834 (5,737) Municipal securities 7,979 (67) — — 7,979 (67) Corporate securities 494 (6) — — 494 (6) Total $ 459,557 $ (5,811) $ — $ — $ 459,557 $ (5,811) 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 June 30, 2021 and December 31, 2020, the Company’s securities portfolio consisted of 508 and 514 securities, 32 and 16 of which were in an unrealized loss position, respectively. |
Loans and allowance for credit
Loans and allowance for credit losses | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans and allowance for credit losses | Loans and allowance for credit losses: Loans outstanding at June 30, 2021 and December 31, 2020, by class of financing receivable are as follows: June 30, December 31, 2021 2020 Commercial and industrial (1) $ 1,238,940 $ 1,346,122 Construction 1,145,165 1,222,220 Residential real estate: 1-to-4 family mortgage 1,126,623 1,089,270 Residential line of credit 401,343 408,211 Multi-family mortgage 363,600 175,676 Commercial real estate: Owner occupied 923,605 924,841 Non-owner occupied 1,675,214 1,598,979 Consumer and other 324,464 317,640 Gross loans 7,198,954 7,082,959 Less: Allowance for credit losses (144,663) (170,389) Net loans $ 7,054,291 $ 6,912,570 (1) Includes $57,406 and $212,645 of loans originated as part of the Paycheck Protection Program as of June 30, 2021 and December 31, 2020, respectively. 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 June 30, 2021 and December 31, 2020, $1,256,344 and $1,248,857, respectively, of qualifying residential mortgage loans (including loans held for sale) $1,542,531 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 June 30, 2021 and December 31, 2020, $2,290,661 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 June 30, 2021 and December 31, 2020, total accrued interest receivable on loans held for investment was $35,892 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 June 30, 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 Company performed qualitative evaluations within 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. The decrease in estimated required reserve during the three and six months ended June 30, 2021 was a result of improving macroeconomic variables incorporated into the Company's reasonable and supportable forecasts when compared to both March 31, 2021 and December 31, 2020. The following provide the changes in the allowance for credit losses by class of financing receivable for the three and six months ended June 30, 2021 and 2020: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2021 Beginning balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 Provision for credit losses (579) (5,784) 75 (2,558) 1,818 972 (7,323) 494 (12,885) Recoveries of loans previously charged-off 87 — 41 9 — 126 — 190 453 Loans charged off (360) — (16) (3) — — — (480) (859) Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Six Months Ended June 30, 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 (536) (25,610) 536 (3,815) 6,301 (281) (1,291) 179 (24,517) Recoveries of loans previously charged-off 216 — 65 15 — 139 — 385 820 Loans charged off (637) (29) (149) (18) — — — (1,196) (2,029) Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2020 Beginning balance - March 31, 2020 $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 Provision for loan losses (2,663) 12,624 (446) 595 2,171 (1,630) 12,984 404 24,039 Recoveries of loans previously charged-off 807 151 26 24 — 3 — 103 1,114 Loans charged off (147) (18) (123) (21) — — (545) (311) (1,165) Ending balance - June 30, 2020 $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Six Months Ended June 30, 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 (834) 23,578 1,218 2,580 3,615 1,408 18,919 1,519 52,003 Recoveries of loans previously charged-off 895 151 50 39 — 17 — 296 1,448 Loans charged off (1,381) (18) (365) (21) — (209) (545) (1,037) (3,576) Initial allowance on loans purchased with deteriorated credit quality 11 11 107 3 — 54 443 40 669 Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 The following tables provide the amount of the allowance for credit losses by class of financing receivable disaggregated by measurement methodology as of June 30, 2021 and December 31, 2020: June 30, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 105 $ 131 $ — $ 8 $ — $ 23 $ 676 $ — $ 943 Collectively evaluated for credit loss 13,073 31,151 18,063 6,467 12,976 4,015 29,020 9,985 124,750 Purchased credit deteriorated 613 1,556 1,609 241 499 669 13,160 623 18,970 Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 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 tables provide the amount of loans by class of financing receivable disaggregated by measurement methodology as of June 30, 2021, and December 31, 2020: June 30, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 15,159 $ 5,993 $ 894 $ 412 $ — $ 9,135 $ 7,207 $ 26 $ 38,826 Collectively evaluated for credit loss 1,176,960 1,097,065 1,038,746 384,698 354,021 822,532 1,368,161 311,481 6,553,664 Purchased credit deteriorated 46,821 42,107 86,983 16,233 9,579 91,938 299,846 12,957 606,464 Ending balance - June 30, 2021 $ 1,238,940 $ 1,145,165 $ 1,126,623 $ 401,343 $ 363,600 $ 923,605 $ 1,675,214 $ 324,464 $ 7,198,954 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 collateralized performing loans 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. Special Mention. Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. 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. Substandard loans 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 Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on 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 June 30, 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 June 30, 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 $ 93,229 $ 160,243 $ 162,002 $ 63,799 $ 48,206 $ 66,856 $ 584,470 $ 1,178,805 Special Mention 27 278 423 20 468 3,118 15,920 20,254 Classified 660 2,706 2,674 10,426 3,728 6,914 12,773 39,881 Total 93,916 163,227 165,099 74,245 52,402 76,888 613,163 1,238,940 Construction Pass 261,384 393,404 205,133 48,972 29,372 84,769 110,748 1,133,782 Special Mention — 160 — — 1,209 734 — 2,103 Classified — 32 2,199 3,967 124 2,757 201 9,280 Total 261,384 393,596 207,332 52,939 30,705 88,260 110,949 1,145,165 Residential real estate: 1-to-4 family mortgage Pass 203,719 241,270 152,228 126,627 130,028 246,202 — 1,100,074 Special Mention 44 1,145 1,201 606 328 2,752 — 6,076 Classified — 339 1,807 3,374 5,237 9,716 — 20,473 Total 203,763 242,754 155,236 130,607 135,593 258,670 — 1,126,623 Residential line of credit Pass — — — — — — 396,297 396,297 Special Mention — — — — — — 344 344 Classified — — — — — — 4,702 4,702 Total — — — — — — 401,343 401,343 Multi-family mortgage Pass 143,092 31,127 74,713 7,370 39,365 57,426 10,454 363,547 Special Mention — — — — — — — — Classified — — — — — 53 — 53 Total 143,092 31,127 74,713 7,370 39,365 57,479 10,454 363,600 Commercial real estate: Owner occupied Pass 64,153 138,004 187,870 89,391 90,172 256,949 58,761 885,300 Special Mention — — 1,335 3,649 1,464 5,749 288 12,485 Classified — — 3,123 2,634 4,157 14,146 1,760 25,820 Total 64,153 138,004 192,328 95,674 95,793 276,844 60,809 923,605 Non-owner occupied Pass 226,622 162,080 166,597 300,073 202,577 505,746 54,947 1,618,642 Special Mention — — — 3,500 — 8,278 — 11,778 Classified — — 4,136 24,616 1,542 14,455 45 44,794 Total 226,622 162,080 170,733 328,189 204,119 528,479 54,992 1,675,214 As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Consumer and other loans Pass 56,647 65,973 44,844 36,124 23,731 76,402 14,476 318,197 Special Mention 75 — 14 — 1 522 — 612 Classified 38 144 222 1,023 926 2,865 437 5,655 Total 56,760 66,117 45,080 37,147 24,658 79,789 14,913 324,464 Total Loans Pass 1,048,846 1,192,101 993,387 672,356 563,451 1,294,350 1,230,153 6,994,644 Special Mention 146 1,583 2,973 7,775 3,470 21,153 16,552 53,652 Classified 698 3,221 14,161 46,040 15,714 50,906 19,918 150,658 Total $ 1,049,690 $ 1,196,905 $ 1,010,521 $ 726,171 $ 582,635 $ 1,366,409 $ 1,266,623 $ 7,198,954 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 $ 339,074 $ 185,636 $ 70,549 $ 59,917 $ 37,573 $ 42,685 $ 540,960 $ 1,276,394 Special Mention 231 824 561 445 915 2,580 24,826 30,382 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 461,715 390,443 86,490 52,942 40,907 62,890 112,004 1,207,391 Special Mention 469 1,485 2,197 1,221 729 13 — 6,114 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 283,107 176,711 164,499 157,731 111,194 162,051 — 1,055,293 Special Mention 1,423 1,829 1,209 753 721 3,865 — 9,800 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 — — — — — — 400,206 400,206 Special Mention — — — — — — 2,653 2,653 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 Special Mention — — — — — — — — 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 140,904 179,500 97,577 94,659 76,539 224,108 53,451 866,738 Special Mention 967 1,356 4,251 16,173 6,101 2,466 230 31,544 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 166,962 229,442 342,640 221,149 290,163 272,184 38,820 1,561,360 Special Mention — 1,500 6,672 — 207 8,445 — 16,824 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 89,625 52,839 39,725 27,201 43,503 37,673 14,817 305,383 Special Mention 281 797 1,588 468 526 1,364 11 5,035 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 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 Total Loans Pass 1,510,393 1,228,017 813,323 660,160 628,209 836,930 1,171,352 6,848,384 Special Mention 3,371 7,791 16,478 19,060 9,199 18,733 27,720 102,352 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 represent an analysis of the aging by class of financing receivable as of June 30, 2021 and December 31, 2020: June 30, 2021 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 757 $ 104 $ 15,538 $ 1,222,541 $ 1,238,940 Construction 1,023 487 5,303 1,138,352 1,145,165 Residential real estate: 1-to-4 family mortgage 3,753 8,002 5,094 1,109,774 1,126,623 Residential line of credit 716 48 1,189 399,390 401,343 Multi-family mortgage — — 53 363,547 363,600 Commercial real estate: Owner occupied 1,100 — 8,074 914,431 923,605 Non-owner occupied 737 — 12,016 1,662,461 1,675,214 Consumer and other 2,660 457 3,162 318,185 324,464 Total $ 10,746 $ 9,098 $ 50,429 $ 7,128,681 $ 7,198,954 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 June 30, 2021 and December 31, 2020 by class of financing receivable. June 30, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 14,401 $ 1,137 $ 119 Construction 4,254 1,049 151 Residential real estate: 1-to-4 family mortgage 1,493 3,601 91 Residential line of credit 830 359 8 Multi-family mortgage — 53 8 Commercial real estate: Owner occupied 7,412 662 43 Non-owner occupied 6,418 5,598 736 Consumer and other — 3,162 162 Total $ 34,808 $ 15,621 $ 1,318 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 during the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Commercial and industrial $ 219 $ 17 $ 333 $ 169 Construction 16 6 30 33 Residential real estate: 1-to-4 family mortgage 67 6 85 13 Residential line of credit 27 — 45 1 Multi-family mortgage 1 — 2 — Commercial real estate: Owner occupied 101 43 232 64 Non-owner occupied 141 109 230 128 Consumer and other 55 24 55 24 Total $ 627 $ 205 $ 1,012 $ 432 Accrued interest receivable written off as an adjustment to interest income amounted to $132 and $162 for the three months ended June 30, 2021 and 2020, respectively, and $597 and $282 for the six months ended June 30, 2021 and 2020, respectively. Troubled debt restructurings As of June 30, 2021 and December 31, 2020, the Company had a recorded investment in TDRs of $42,678 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, $23,608 and $8,279 were classified as non-accrual loans as of June 30, 2021 and December 31, 2020, respectively. The Company has calculated $1,285 and $310 in allowances for credit losses on TDRs as of June 30, 2021 and December 31, 2020, respectively. Unfunded loan commitments related to these loans totaled $6,153 as of June 30, 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 June 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 4 $ 13,055 $ 13,055 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Residential real estate: 1-to-4 family mortgage 2 811 811 — Residential line of credit 1 11 11 — Total 11 $ 17,427 $ 17,427 $ — Six Months Ended June 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 5 $ 13,162 $ 13,162 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-to-4 family mortgage 2 811 811 — Residential line of credit 1 11 11 — Total 13 $ 29,531 $ 29,531 $ — Three Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 1 13 13 — Total 3 $ 1,954 $ 1,954 $ — Six Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-4 family mortgage 2 77 77 — Total 4 $ 2,018 $ 2,018 $ — 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 and six months ended June 30, 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 and six months ended June 30, 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. June 30, 2021 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ 696 $ 14,524 $ 1 Construction 5,993 — 131 Residential real estate: 1-to-4 family mortgage 1,615 — — Residential line of credit 1,241 — 8 Commercial real estate: Owner occupied 10,045 — 23 Non-owner occupied 11,624 — 676 Total $ 31,214 $ 14,524 $ 839 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 Commercial real estate: Owner occupied 3,391 — 30 Non-owner occupied 8,164 — 1,531 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 June 30, 2021 or December 31, 2020, in connection with Company's COVID-19 relief programs. These deferrals typically ranged from sixty June 30, 2021 December 31, 2020 % of Loans % of Loans Commercial and industrial $ 13 — % $ 7,118 0.5 % Construction — — % 1,918 0.2 % Residential real estate: 1-to-4 family mortgage 3,194 0.3 % 19,201 1.8 % Residential line of credit — — % 204 — % Multi-family mortgage — — % 3,305 1.9 % Commercial real estate: Owner occupied 871 0.1 % 19,815 2.1 % Non-owner occupied 69,587 4.2 % 139,590 8.7 % Consumer and other 217 0.1 % 11,366 3.6 % Total $ 73,882 1.0 % $ 202,517 2.9 % |
Other real estate owned
Other real estate owned | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 11,177 $ 17,072 $ 12,111 $ 18,939 Transfers from loans 3,201 641 4,596 1,006 Transfers to premises and equipment — — — (841) Proceeds from sale of other real estate (2,166) (2,708) (4,661) (4,150) Gain on sale of other real estate owned 272 170 1,100 345 Loans provided for sales of other real (203) — (533) — Write-downs and partial liquidations (295) (84) (627) (208) Balance at end of period $ 11,986 $ 15,091 $ 11,986 $ 15,091 Foreclosed residential real estate properties totaled $774 and $1,890 as of June 30, 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 $31 and $167 at June 30, 2021 and December 31, 2020, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | Leases: As of June 30, 2021, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 44 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 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 June 30, 2021 and December 31, 2020: June 30, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 45,423 $ 49,537 Finance leases Premises and equipment, net 1,533 1,588 Total right-of-use assets $ 46,956 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 50,396 $ 55,187 Finance leases Borrowings 1,555 1,598 Total lease liabilities $ 51,951 $ 56,785 Weighted average remaining lease term (in years) - operating 12.3 12.2 Weighted average remaining lease term (in years) - finance 13.9 14.4 Weighted average discount rate - operating 2.72 % 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 Six Months Ended June 30, June 30, Classification 2021 2020 2021 2020 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,171 $ 1,389 $ 4,110 $ 2,678 Short-term lease cost Occupancy and equipment 102 30 189 166 Variable lease cost Occupancy and equipment 241 160 476 298 Gain on lease modifications and Occupancy and equipment (787) — (787) — Finance lease costs: Interest on lease liabilities Interest expense on borrowings 8 — 14 — Amortization of right-of-use asset Occupancy and equipment 27 — 55 — Total lease cost $ 1,762 $ 1,579 $ 4,057 $ 3,142 During the three and six months ended June 30, 2021, the Company recorded a $787 gain on lease modifications and terminations on certain vacated locations that were consolidated as a result of acquisitions. 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 June 30, 2021 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2022 $ 7,734 $ 115 June 30, 2023 6,759 117 June 30, 2024 5,696 119 June 30, 2025 5,002 121 June 30, 2026 4,675 122 Thereafter 30,976 1,164 Total undiscounted future minimum lease payments 60,842 1,758 Less: imputed interest (10,446) (203) Lease liability $ 50,396 $ 1,555 |
Leases | Leases: As of June 30, 2021, the Company was the lessee in 58 operating leases and 1 finance lease of certain branch, mortgage and operations locations, of which 44 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 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 June 30, 2021 and December 31, 2020: June 30, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 45,423 $ 49,537 Finance leases Premises and equipment, net 1,533 1,588 Total right-of-use assets $ 46,956 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 50,396 $ 55,187 Finance leases Borrowings 1,555 1,598 Total lease liabilities $ 51,951 $ 56,785 Weighted average remaining lease term (in years) - operating 12.3 12.2 Weighted average remaining lease term (in years) - finance 13.9 14.4 Weighted average discount rate - operating 2.72 % 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 Six Months Ended June 30, June 30, Classification 2021 2020 2021 2020 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,171 $ 1,389 $ 4,110 $ 2,678 Short-term lease cost Occupancy and equipment 102 30 189 166 Variable lease cost Occupancy and equipment 241 160 476 298 Gain on lease modifications and Occupancy and equipment (787) — (787) — Finance lease costs: Interest on lease liabilities Interest expense on borrowings 8 — 14 — Amortization of right-of-use asset Occupancy and equipment 27 — 55 — Total lease cost $ 1,762 $ 1,579 $ 4,057 $ 3,142 During the three and six months ended June 30, 2021, the Company recorded a $787 gain on lease modifications and terminations on certain vacated locations that were consolidated as a result of acquisitions. 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 June 30, 2021 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2022 $ 7,734 $ 115 June 30, 2023 6,759 117 June 30, 2024 5,696 119 June 30, 2025 5,002 121 June 30, 2026 4,675 122 Thereafter 30,976 1,164 Total undiscounted future minimum lease payments 60,842 1,758 Less: imputed interest (10,446) (203) Lease liability $ 50,396 $ 1,555 |
Mortgage servicing rights
Mortgage servicing rights | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Carrying value at beginning of period $ 104,192 $ 62,581 $ 79,997 $ 75,521 Capitalization 10,573 12,267 22,167 20,063 Change in fair value: Due to pay-offs/pay-downs (7,865) (7,277) (17,186) (11,920) Due to change in valuation inputs or assumptions (5,285) (7,063) 16,637 (23,156) Carrying value at end of period $ 101,615 $ 60,508 $ 101,615 $ 60,508 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Servicing income: Servicing income $ 6,788 $ 5,113 $ 13,719 $ 10,131 Change in fair value of mortgage servicing rights (13,150) (14,340) (549) (35,076) Change in fair value of derivative hedging instruments 10,005 1,102 (7,859) 15,970 Servicing income 3,643 (8,125) 5,311 (8,975) Servicing expenses 2,693 1,992 5,225 3,393 Net servicing income (loss) (1) $ 950 $ (10,117) $ 86 $ (12,368) (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 June 30, 2021 and December 31, 2020 are as follows: June 30, December 31, 2021 2020 Unpaid principal balance $ 10,527,708 $ 9,787,657 Weighted-average prepayment speed (CPR) 11.07 % 14.07 % Estimated impact on fair value of a 10% increase $ (4,840) $ (4,493) Estimated impact on fair value of a 20% increase $ (9,311) $ (8,599) Discount rate 11.05 % 11.49 % Estimated impact on fair value of a 100 bp increase $ (3,981) $ (2,942) Estimated impact on fair value of a 200 bp increase $ (7,700) $ (5,674) Weighted-average coupon interest rate 3.35 % 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 June 30, 2021 and December 31, 2020, mortgage escrow deposits totaled to $166,126 and $147,957, respectively. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2021 2020 Current $ 9,541 $ 15,747 Deferred 3,899 (8,292) Total $ 13,440 $ 7,455 Six Months Ended June 30, 2021 2020 Current $ 15,490 $ 23,915 Deferred 13,538 (16,380) Total $ 29,028 $ 7,535 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 Federal taxes calculated at statutory rate $ 11,916 21.0 % $ 6,369 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,879 3.3 % 1,298 4.3 % (Benefit) expense from equity based compensation (124) (0.2) % 22 0.1 % Municipal interest income, net of interest disallowance (419) (0.7) % (310) (1.0) % Bank owned life insurance (82) (0.1) % (17) (0.1) % Merger and offering costs 127 0.2 % 32 0.1 % Section 162(m) limitation 21 — % — — % Other 122 0.2 % 61 0.2 % Income tax expense, as reported $ 13,440 23.7 % $ 7,455 24.6 % Six Months Ended June 30, 2021 2020 Federal taxes calculated at statutory rate $ 26,293 21.0 % $ 6,542 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 3,629 2.9 % 1,166 3.7 % (Benefit) expense from equity based compensation (345) (0.3) % 161 0.5 % Municipal interest income, net of interest disallowance (843) (0.7) % (574) (1.8) % Bank owned life insurance (166) (0.1) % (35) (0.1) % Merger and offering costs 127 0.1 % 163 0.5 % Section 162(m) limitation 248 0.2 % — — % Other 85 0.1 % 112 0.4 % Income tax expense, as reported $ 29,028 23.2 % $ 7,535 24.2 % 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, 2029. 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 June 30, 2021 and December 31, 2020, are as follows: June 30, December 31 2021 2020 Deferred tax assets: Allowance for credit losses $ 40,878 $ 48,409 Operating lease liabilities 13,067 14,496 Federal net operating loss 1,753 1,753 Deferred compensation 8,572 8,872 Unrealized loss on cash flow hedges 364 499 Other 19,817 19,101 Subtotal 84,451 93,130 Deferred tax liabilities: FHLB stock dividends $ (561) $ (561) Operating leases - right of use assets (11,831) (13,197) Depreciation (7,088) (7,491) Amortization of core deposit intangibles (349) (684) Unrealized gain on equity securities (3,877) (17) Unrealized gain on debt securities (5,987) (13,027) Mortgage servicing rights (26,435) (20,803) Goodwill (12,522) (11,301) Other (9,828) (9,653) Subtotal (78,478) (76,734) Net deferred tax assets $ 5,973 $ 16,396 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 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. June 30, December 31, 2021 2020 Commitments to extend credit, excluding interest rate lock commitments $ 2,529,697 $ 2,719,996 Letters of credit 68,792 67,598 Balance at end of period $ 2,598,489 $ 2,787,594 As of June 30, 2021 and December 31, 2020, loan commitments included above with floating interest rates totaled $1.82 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 14,156 $ 4,618 $ 16,378 $ — Impact of CECL adoption on provision for credit losses — — — 2,947 Increase in provision for credit losses from unfunded commitments acquired in business combination — — — 70 Provision for credit losses on unfunded commitments (954) 1,882 (3,176) 3,483 Balance at end of period $ 13,202 $ 6,500 $ 13,202 $ 6,500 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 $761 and $1,469 for the three and six months ended June 30, 2021, respectively and $1,568 and $4,367 for the three and six months ended June 30, 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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 6,284 $ 3,829 $ 5,928 $ 3,529 Provision for loan repurchases or indemnifications (706) 855 (266) 1,227 Losses on loans repurchased or indemnified (89) (83) (173) (155) Balance at end of period $ 5,489 $ 4,601 $ 5,489 $ 4,601 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 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. 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 June 30, 2021 and December 31, 2020, the fair value of these contracts resulted in liability balances of $1,391 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: June 30, 2021 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 650,268 $ 26,355 $ 26,168 Forward commitments 1,172,717 — 1,401 Interest rate-lock commitments 787,258 13,120 — Futures contracts 502,500 2,707 — Total $ 3,112,743 $ 42,182 $ 27,569 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 June 30, 2021 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,391 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 171 $ 9,541 $ (21,271) $ 30,003 Forward commitments (19,200) (13,993) 24,058 (40,450) Futures contracts 9,104 631 (7,228) 11,542 Total $ (9,925) $ (3,821) $ (4,441) $ 1,095 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $0, $52, $0, and $104 $ — $ 148 $ — $ 295 Loss included in interest expense on borrowings (143) (62) (280) (74) Total $ (143) $ 86 $ (280) $ 221 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Designated as hedging: Amount of gain (loss) recognized in other comprehensive income, net of tax $23, $(40), $135, and $(443) $ 67 $ (112) $ 383 $ (1,257) 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 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Gross amounts recognized $ 4,466 $ 3,863 $ 23,536 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 4,466 3,863 23,536 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 3,146 857 3,146 857 Less: financial collateral pledged — — 20,390 33,194 Net amounts $ 1,320 $ 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 June 30, 2021 and December 31, 2020, the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $66,557 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 | 6 Months Ended |
Jun. 30, 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 Company's 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. 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 - Collateral dependent loans are 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 June 30, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,717,097 $ 1,717,097 $ — $ — $ 1,717,097 Investment securities 1,409,175 — 1,409,175 — 1,409,175 Loans, net 7,054,291 — — 7,199,111 7,199,111 Loans held for sale 821,529 — 697,407 124,122 821,529 Interest receivable 42,083 72 6,119 35,892 42,083 Mortgage servicing rights 101,615 — — 101,615 101,615 Derivatives 42,182 — 42,182 — 42,182 Financial liabilities: Deposits: Without stated maturities $ 8,921,516 $ 8,921,516 $ — $ — $ 8,921,516 With stated maturities 1,282,440 — 1,292,720 — 1,292,720 Securities sold under agreement to repurchase and federal funds sold 33,056 33,056 — — 33,056 Subordinated debt 149,351 — — 153,631 153,631 Other borrowings 1,555 — 1,555 — 1,555 Interest payable 4,136 169 2,442 1,525 4,136 Derivatives 28,960 — 28,960 — 28,960 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 June 30, 2021 are presented in the following table: At June 30, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 8,255 $ — $ 8,255 Mortgage-backed securities - residential — 1,035,003 — 1,035,003 Mortgage-backed securities - commercial — 15,161 — 15,161 Municipal securities — 332,883 — 332,883 Treasury securities — 10,534 — 10,534 Corporate securities — 2,536 — 2,536 Equity securities — 4,803 — 4,803 Total securities $ — $ 1,409,175 $ — $ 1,409,175 Loans held for sale — 697,407 124,122 821,529 Mortgage servicing rights — — 101,615 101,615 Derivatives — 42,182 — 42,182 Financial Liabilities: Derivatives — 28,960 — 28,960 The balances and levels of the assets measured at fair value on a non-recurring basis at June 30, 2021 are presented in the following table: At June 30, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,927 $ 6,927 Collateral dependent loans: Commercial and industrial $ — $ — $ 15,220 $ 15,220 Construction — — 5,993 5,993 Residential real estate: 1-4 family mortgage — — 1,615 1,615 Residential line of credit — — 1,241 1,241 Commercial real estate: Owner occupied — — 10,045 10,045 Non-owner occupied — — 11,624 11,624 Total collateral dependent loans $ — $ — $ 45,738 $ 45,738 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 securities $ — $ 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 collateral dependent loans $ — $ — $ 18,560 $ 18,560 The following tables present information as of June 30, 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: As of June 30, 2021 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 45,738 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 6,927 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2020 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. Collateral dependent loans that are dependent on recovery through sale of equipment, such as farm equipment, automobiles and aircrafts are generally valued based on public source pricing or subscription services while more complex assets are valued through leveraging brokers who have expertise in the collateral involved. Fair value option The following table summarizes the Company's loans held for sale, at fair value, as of the dates presented: June 30, December 31, 2021 2020 Commercial and industrial $ 124,122 $ 215,403 Residential real estate: 1-4 family mortgage 697,407 683,770 Total loans held for sale $ 821,529 $ 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 gains (losses) of $9,730 and $(10,986) resulting from fair value changes of mortgage loans were recorded in income during the three and six months ended June 30, 2021, respectively, compared to net gains of $8,048 and $13,866 during the three and six months ended June 30, 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 June 30, 2021, and December 31, 2020, there were $120,880 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 June 30, 2021 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 197,490 $ (22,506) $ 174,984 Change in fair value: Pay-downs and pay-offs (52,226) — (52,226) Write-offs to discount (9,292) 9,292 — Changes in valuation included in other noninterest income — 1,364 1,364 Carrying value at end of period $ 135,972 $ (11,850) $ 124,122 Six Months Ended June 30, 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 (91,792) — (91,792) Write-offs to discount (11,299) 11,299 — Changes in valuation included in other noninterest income — 511 511 Carrying value at end of period $ 135,972 $ (11,850) $ 124,122 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 June 30, 2021 and December 31, 2020: June 30, 2021 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 697,407 $ 676,510 $ 20,897 Commercial loans held for sale measured at fair value 118,278 124,846 (6,568) Nonaccrual loans 5,844 11,126 (5,282) 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 | 6 Months Ended |
Jun. 30, 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, 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. As previously reported, on 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 $5,398 and $8,874 from the Banking segment to the Mortgage segment for the three and six months ended June 30, 2020, respectively. 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 three and six months ended June 30, 2021 and 2020 as follows: Three months ended June 30, 2021 Banking Mortgage Consolidated Net interest income $ 86,553 $ 10 $ 86,563 Provisions for credit losses (1) (13,839) — (13,839) Mortgage banking income (2) — 38,644 38,644 Change in fair value of mortgage servicing rights, net of hedging (2) — (3,145) (3,145) Other noninterest income 14,002 (201) 13,801 Depreciation and amortization 1,618 344 1,962 Amortization of intangibles 1,394 — 1,394 Other noninterest expense 55,182 34,422 89,604 Income before income taxes $ 56,200 $ 542 $ 56,742 Income tax expense 13,440 Net income applicable to FB Financial Corporation and noncontrolling interest 43,302 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 43,294 Total assets $ 10,908,107 $ 1,010,260 $ 11,918,367 Goodwill 242,561 — 242,561 (1) Included $(954) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three months ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 55,350 $ (13) $ 55,337 Provisions for credit losses (1) 25,921 — 25,921 Mortgage banking income (2) — 85,406 85,406 Change in fair value of mortgage servicing rights, net of hedging (2) — (13,238) (13,238) Other noninterest income 9,323 — 9,323 Depreciation and amortization 1,503 247 1,750 Amortization of intangibles 1,205 — 1,205 Other noninterest expense (3) 39,332 38,292 77,624 (Loss) income before income taxes $ (3,288) $ 33,616 $ 30,328 Income tax expense 7,455 Net income applicable to FB Financial Corporation and noncontrolling interest 22,873 Net income applicable to noncontrolling interest (4) — Net income applicable to FB Financial Corporation $ 22,873 Total assets $ 6,632,506 $ 623,030 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $1,882 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Included $1,586 of merger costs in the Banking Segment primarily related to the integration of Farmers National (4) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2021 Banking Mortgage Consolidated Net interest income $ 169,150 $ (11) $ 169,139 Provisions for credit losses (1) (27,693) — (27,693) Mortgage banking income (2) — 99,239 99,239 Change in fair value of mortgage servicing rights, net of hedging (2) — (8,408) (8,408) Other noninterest income 25,400 (201) 25,199 Depreciation and amortization 3,476 672 4,148 Amortization of intangibles 2,834 — 2,834 Other noninterest expense 107,619 73,057 180,676 Income before income taxes $ 108,314 $ 16,890 $ 125,204 Income tax expense 29,028 Net income applicable to FB Financial Corporation and noncontrolling interest 96,176 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 96,168 Total assets $ 10,908,107 $ 1,010,260 $ 11,918,367 Goodwill 242,561 — 242,561 (1) Included $(3,176) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 111,583 $ 3 $ 111,586 Provisions for credit losses (1) 55,486 — 55,486 Mortgage banking income (2) — 124,019 124,019 Change in fair value of mortgage servicing rights, net of hedging (2) — (19,106) (19,106) Other noninterest income 19,278 — 19,278 Depreciation and amortization 2,995 497 3,492 Amortization of intangibles 2,408 — 2,408 Other noninterest expense (3) 80,454 62,784 143,238 (Loss) income before income taxes $ (10,482) $ 41,635 $ 31,153 Income tax expense 7,535 Net income applicable to FB Financial Corporation and noncontrolling interest 23,618 Net income applicable to noncontrolling interest (4) — Net income applicable to FB Financial Corporation $ 23,618 Total assets $ 6,632,506 $ 623,030 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Includes $3,483 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $4,636 of merger costs in the Banking segment related to the Farmers National acquisition and the Franklin merger. (4) Banking segment includes noncontrolling interest. |
Minimum capital requirements
Minimum capital requirements | 6 Months Ended |
Jun. 30, 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 June 30, 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 Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,383,471 14.9 % $ 974,690 10.5 % N/A N/A FirstBank 1,317,759 14.2 % 971,072 10.5 % $ 924,831 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,177,609 12.7 % $ 789,034 8.5 % N/A N/A FirstBank 1,131,897 12.2 % 786,106 8.5 % $ 739,865 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,177,609 10.1 % $ 466,866 4.0 % N/A N/A FirstBank 1,131,897 9.7 % 465,961 4.0 % $ 582,451 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,147,609 12.4 % $ 649,793 7.0 % N/A N/A FirstBank 1,131,897 12.2 % 647,382 7.0 % $ 601,140 6.5 % Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2020 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 | 6 Months Ended |
Jun. 30, 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 the dates indicated: Six Months Ended June 30, 2021 2020 Restricted Stock Weighted Restricted Stock Weighted Balance at beginning of period 1,047,071 $ 26.06 826,263 $ 23.76 Granted 193,760 43.06 132,605 33.92 Vested (159,114) 32.63 (132,203) 32.52 Forfeited (29,639) 27.36 (14,826) 34.24 Balance at end of period 1,052,078 $ 27.73 811,839 $ 24.84 The total fair value of restricted stock units vested and released was $828 and $5,192 for the three and six months ended June 30, 2021, respectively, and $1,048 and $4,299 for the three and six months ended June 30, 2020, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $2,193 and $4,659 for the three and six months ended June 30, 2021, respectively, and $2,015 and $3,817 for the three and six months ended June 30, 2020, respectively. This included $142 and $299 paid to Company directors during the three and six months ended June 30, 2021, respectively, and $231 and $378 during the three and six months ended June 30, 2020, related to director grants and compensation elected to be settled in stock. As of June 30, 2021 and December 31, 2020, there was $16,091 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 June 30, 2021 and December 31, 2020, there were 2,158,408 and 2,240,434 shares available for issuance under the 2016-LTIP plan, respectively. At June 30, 2021 and December 31, 2020, there was $741 and $613, respectively, accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying restricted stock units. Performance Based Restricted Stock Units The following table summarizes information about the changes in performance stock units as of and for the six months ended June 30, 2021 and 2020. Six Months Ended June 30, 2021 2020 Performance Stock Weighted Performance Stock Weighted Balance at beginning of period (unvested) 53,147 $ 36.21 — $ — Granted 65,304 43.20 53,147 36.21 Vested — — — — Forfeited or expired (2,319) 36.73 — — Balance at end of period (unvested) 116,132 $ 40.13 53,147 $ 36.21 The Company awards performance-based restricted stock units 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 recorded compensation cost of $322 and $522 during the three and six months ended June 30, 2021 respectively, and $335 and $416 for the three and six months ended June 30, 2020, respectively. As of June 30, 2021, the Company determined the probability of meeting the performance criteria for each grant, and recorded compensation cost associated with a 140.0% (related to shares granted in 2020) and 102.5% (related to shares granted in 2021) vesting, when factoring in the conversion of PSUs to shares of common stock. As of June 30, 2021, maximum unrecognized compensation cost at 200% payout related to the unvested PSUs was $7,829, and the remaining performance period over which the cost could be recognized was 2.4 years. Employee Stock Purchase Plan: The Company maintains an employee stock purchase plan 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). There were no shares issued under ESPP during the three months ended June 30, 2021 and 2020, respectively. During the six months ended June 30, 2021 and 2020, there were 21,566 and 12,145 shares of common stock issued under the ESPP, respectively. As of June 30, 2021 and December 31, 2020, there were 2,357,440 and 2,379,006 shares available for issuance under the ESPP, respectively. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 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 1,687 Change in related party status (98) Repayments (4,933) Loans outstanding at June 30, 2021 $ 21,331 Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $20,465 and $23,059 at June 30, 2021 and December 31, 2020, respectively. (B) Deposits: The Bank held deposits from related parties totaling $303,900 and $245,084 as of June 30, 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 $21 and $53 in unamortized leasehold improvements related to these leases at June 30, 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 $132 and $260 for the three and six months ended June 30, 2021, respectively, and $128 and $256 for the three and six months ended June 30, 2020. (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 and six months ended June 30, 2021, the Company made payments of $21 and $32, respectively, and $58 and $91 during the three and six months ended June 30, 2020, respectively, under these agreements. (E) Registration rights agreement: |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 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 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 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 |
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 and six months ended June 30, 2021 that were not disclosed in the Company's 2020 audited consolidated financial statements included on Form 10-K, other than as described below. As previously disclosed, during the three months 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 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 June 30, 2021, there are none that are likely to impact the Company's financial statements or disclosures. |
Allowance for credit losses | Allowance for Credit Losses The Company estimated the allowance for credit losses under a current expected credit loss model as of June 30, 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. |
Credit Quality | 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 collateralized performing loans 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. Special Mention. Loans rated Special Mention are those that have potential weakness that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Management does not believe there will be a loss of principal or interest. These loans require intensive servicing and may possess more than normal credit risk. 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. Substandard loans 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 Substandard, with the added characteristic that the weakness or weaknesses make collection or liquidation in full, based on 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. |
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 Company's 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. 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. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Basic earnings per common share calculation: Net income applicable to FB Financial Corporation $ 43,294 $ 22,873 $ 96,168 $ 23,618 Dividends paid on and undistributed earnings allocated to participating securities — — — — Earnings available to common shareholders $ 43,294 $ 22,873 $ 96,168 $ 23,618 Weighted average basic shares outstanding 47,351,969 32,094,274 47,312,312 $ 31,676,004 Basic earnings per common share $ 0.91 $ 0.71 $ 2.03 $ 0.75 Diluted earnings per common share: Earnings available to common shareholders $ 43,294 $ 22,873 $ 96,168 $ 23,618 Weighted average basic shares outstanding 47,351,969 32,094,274 47,312,312 31,676,004 Weighted average diluted shares contingently issuable (1) 641,804 412,143 664,221 433,190 Weighted average diluted shares outstanding 47,993,773 32,506,417 47,976,533 32,109,194 Diluted earnings per common share $ 0.90 $ 0.70 $ 2.00 $ 0.74 (1) Excludes 164,472 and 250,776 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2021, respectively and 352,888 for three and six months ended June 30, 2020. |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) | 6 Months Ended |
Jun. 30, 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) | The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three and six months ended June 30, 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 June 30, Six Months Ended June 30, 2020 2020 Net interest income $ 84,610 $ 169,352 Total revenues $ 176,657 $ 310,254 Net income applicable to FB Financial Corporation $ 32,623 $ 32,149 |
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) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and December 31, 2020: June 30, 2021 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 $ 8,255 $ 1 $ (1) $ — $ 8,255 Mortgage-backed securities - residential 1,031,233 9,507 (5,737) — 1,035,003 Mortgage-backed securities - commercial 14,715 446 — — 15,161 Municipal securities 314,862 18,088 (67) — 332,883 U.S. Treasury securities 10,486 48 — — 10,534 Corporate securities 2,500 42 (6) — 2,536 Total $ 1,382,051 $ 28,132 $ (5,811) $ — $ 1,404,372 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. June 30, December 31, 2021 2020 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 18,861 $ 18,971 $ 35,486 $ 35,662 Due in one to five years 21,955 22,387 24,278 24,684 Due in five to ten years 44,248 45,746 40,038 41,332 Due in over ten years 251,039 267,104 257,721 275,798 336,103 354,208 357,523 377,476 Mortgage-backed securities - residential 1,031,233 1,035,003 760,099 773,336 Mortgage-backed securities - commercial 14,715 15,161 20,226 21,588 Total debt securities $ 1,382,051 $ 1,404,372 $ 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Proceeds from sales $ — $ — $ — $ — Proceeds from maturities, prepayments and calls 86,866 44,703 147,906 72,360 Gross realized gains 8 — 15 — 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 June 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2021 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. government agency securities $ 1,250 $ (1) $ — $ — $ 1,250 $ (1) Mortgage-backed securities - residential 449,834 (5,737) — — 449,834 (5,737) Municipal securities 7,979 (67) — — 7,979 (67) Corporate securities 494 (6) — — 494 (6) Total $ 459,557 $ (5,811) $ — $ — $ 459,557 $ (5,811) 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) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loans Outstanding by Class of Financing Receivable | Loans outstanding at June 30, 2021 and December 31, 2020, by class of financing receivable are as follows: June 30, December 31, 2021 2020 Commercial and industrial (1) $ 1,238,940 $ 1,346,122 Construction 1,145,165 1,222,220 Residential real estate: 1-to-4 family mortgage 1,126,623 1,089,270 Residential line of credit 401,343 408,211 Multi-family mortgage 363,600 175,676 Commercial real estate: Owner occupied 923,605 924,841 Non-owner occupied 1,675,214 1,598,979 Consumer and other 324,464 317,640 Gross loans 7,198,954 7,082,959 Less: Allowance for credit losses (144,663) (170,389) Net loans $ 7,054,291 $ 6,912,570 (1) Includes $57,406 and $212,645 of loans originated as part of the Paycheck Protection Program as of June 30, 2021 and December 31, 2020, respectively. 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 provide the changes in the allowance for credit losses by class of financing receivable for the three and six months ended June 30, 2021 and 2020: Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2021 Beginning balance - March 31, 2021 $ 14,643 $ 38,622 $ 19,572 $ 9,268 $ 11,657 $ 3,609 $ 50,179 $ 10,404 $ 157,954 Provision for credit losses (579) (5,784) 75 (2,558) 1,818 972 (7,323) 494 (12,885) Recoveries of loans previously charged-off 87 — 41 9 — 126 — 190 453 Loans charged off (360) — (16) (3) — — — (480) (859) Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Six Months Ended June 30, 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 (536) (25,610) 536 (3,815) 6,301 (281) (1,291) 179 (24,517) Recoveries of loans previously charged-off 216 — 65 15 — 139 — 385 820 Loans charged off (637) (29) (149) (18) — — — (1,196) (2,029) Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Three Months Ended June 30, 2020 Beginning balance - March 31, 2020 $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 Provision for loan losses (2,663) 12,624 (446) 595 2,171 (1,630) 12,984 404 24,039 Recoveries of loans previously charged-off 807 151 26 24 — 3 — 103 1,114 Loans charged off (147) (18) (123) (21) — — (545) (311) (1,165) Ending balance - June 30, 2020 $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Six Months Ended June 30, 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 (834) 23,578 1,218 2,580 3,615 1,408 18,919 1,519 52,003 Recoveries of loans previously charged-off 895 151 50 39 — 17 — 296 1,448 Loans charged off (1,381) (18) (365) (21) — (209) (545) (1,037) (3,576) Initial allowance on loans purchased with deteriorated credit quality 11 11 107 3 — 54 443 40 669 Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 |
Schedule of Allowance for Credit Losses by Class of Financing Receivable Disaggregated by Measurement Methodology | The following tables provide the amount of the allowance for credit losses by class of financing receivable disaggregated by measurement methodology as of June 30, 2021 and December 31, 2020: June 30, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Amount of allowance allocated to: Individually evaluated for credit loss $ 105 $ 131 $ — $ 8 $ — $ 23 $ 676 $ — $ 943 Collectively evaluated for credit loss 13,073 31,151 18,063 6,467 12,976 4,015 29,020 9,985 124,750 Purchased credit deteriorated 613 1,556 1,609 241 499 669 13,160 623 18,970 Ending balance - June 30, 2021 $ 13,791 $ 32,838 $ 19,672 $ 6,716 $ 13,475 $ 4,707 $ 42,856 $ 10,608 $ 144,663 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 tables provide the amount of loans by class of financing receivable disaggregated by measurement methodology as of June 30, 2021, and December 31, 2020: June 30, 2021 Commercial Construction 1-to-4 Residential Multi-family Commercial Commercial Consumer Total Loans, net of unearned income Individually evaluated for credit loss $ 15,159 $ 5,993 $ 894 $ 412 $ — $ 9,135 $ 7,207 $ 26 $ 38,826 Collectively evaluated for credit loss 1,176,960 1,097,065 1,038,746 384,698 354,021 822,532 1,368,161 311,481 6,553,664 Purchased credit deteriorated 46,821 42,107 86,983 16,233 9,579 91,938 299,846 12,957 606,464 Ending balance - June 30, 2021 $ 1,238,940 $ 1,145,165 $ 1,126,623 $ 401,343 $ 363,600 $ 923,605 $ 1,675,214 $ 324,464 $ 7,198,954 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 June 30, 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 June 30, 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 $ 93,229 $ 160,243 $ 162,002 $ 63,799 $ 48,206 $ 66,856 $ 584,470 $ 1,178,805 Special Mention 27 278 423 20 468 3,118 15,920 20,254 Classified 660 2,706 2,674 10,426 3,728 6,914 12,773 39,881 Total 93,916 163,227 165,099 74,245 52,402 76,888 613,163 1,238,940 Construction Pass 261,384 393,404 205,133 48,972 29,372 84,769 110,748 1,133,782 Special Mention — 160 — — 1,209 734 — 2,103 Classified — 32 2,199 3,967 124 2,757 201 9,280 Total 261,384 393,596 207,332 52,939 30,705 88,260 110,949 1,145,165 Residential real estate: 1-to-4 family mortgage Pass 203,719 241,270 152,228 126,627 130,028 246,202 — 1,100,074 Special Mention 44 1,145 1,201 606 328 2,752 — 6,076 Classified — 339 1,807 3,374 5,237 9,716 — 20,473 Total 203,763 242,754 155,236 130,607 135,593 258,670 — 1,126,623 Residential line of credit Pass — — — — — — 396,297 396,297 Special Mention — — — — — — 344 344 Classified — — — — — — 4,702 4,702 Total — — — — — — 401,343 401,343 Multi-family mortgage Pass 143,092 31,127 74,713 7,370 39,365 57,426 10,454 363,547 Special Mention — — — — — — — — Classified — — — — — 53 — 53 Total 143,092 31,127 74,713 7,370 39,365 57,479 10,454 363,600 Commercial real estate: Owner occupied Pass 64,153 138,004 187,870 89,391 90,172 256,949 58,761 885,300 Special Mention — — 1,335 3,649 1,464 5,749 288 12,485 Classified — — 3,123 2,634 4,157 14,146 1,760 25,820 Total 64,153 138,004 192,328 95,674 95,793 276,844 60,809 923,605 Non-owner occupied Pass 226,622 162,080 166,597 300,073 202,577 505,746 54,947 1,618,642 Special Mention — — — 3,500 — 8,278 — 11,778 Classified — — 4,136 24,616 1,542 14,455 45 44,794 Total 226,622 162,080 170,733 328,189 204,119 528,479 54,992 1,675,214 As of June 30, 2021 Term Loans Amortized Cost Basis by Origination Year 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Consumer and other loans Pass 56,647 65,973 44,844 36,124 23,731 76,402 14,476 318,197 Special Mention 75 — 14 — 1 522 — 612 Classified 38 144 222 1,023 926 2,865 437 5,655 Total 56,760 66,117 45,080 37,147 24,658 79,789 14,913 324,464 Total Loans Pass 1,048,846 1,192,101 993,387 672,356 563,451 1,294,350 1,230,153 6,994,644 Special Mention 146 1,583 2,973 7,775 3,470 21,153 16,552 53,652 Classified 698 3,221 14,161 46,040 15,714 50,906 19,918 150,658 Total $ 1,049,690 $ 1,196,905 $ 1,010,521 $ 726,171 $ 582,635 $ 1,366,409 $ 1,266,623 $ 7,198,954 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 $ 339,074 $ 185,636 $ 70,549 $ 59,917 $ 37,573 $ 42,685 $ 540,960 $ 1,276,394 Special Mention 231 824 561 445 915 2,580 24,826 30,382 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 461,715 390,443 86,490 52,942 40,907 62,890 112,004 1,207,391 Special Mention 469 1,485 2,197 1,221 729 13 — 6,114 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 283,107 176,711 164,499 157,731 111,194 162,051 — 1,055,293 Special Mention 1,423 1,829 1,209 753 721 3,865 — 9,800 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 — — — — — — 400,206 400,206 Special Mention — — — — — — 2,653 2,653 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 Special Mention — — — — — — — — 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 140,904 179,500 97,577 94,659 76,539 224,108 53,451 866,738 Special Mention 967 1,356 4,251 16,173 6,101 2,466 230 31,544 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 166,962 229,442 342,640 221,149 290,163 272,184 38,820 1,561,360 Special Mention — 1,500 6,672 — 207 8,445 — 16,824 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 89,625 52,839 39,725 27,201 43,503 37,673 14,817 305,383 Special Mention 281 797 1,588 468 526 1,364 11 5,035 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 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 Total Loans Pass 1,510,393 1,228,017 813,323 660,160 628,209 836,930 1,171,352 6,848,384 Special Mention 3,371 7,791 16,478 19,060 9,199 18,733 27,720 102,352 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 represent an analysis of the aging by class of financing receivable as of June 30, 2021 and December 31, 2020: June 30, 2021 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 757 $ 104 $ 15,538 $ 1,222,541 $ 1,238,940 Construction 1,023 487 5,303 1,138,352 1,145,165 Residential real estate: 1-to-4 family mortgage 3,753 8,002 5,094 1,109,774 1,126,623 Residential line of credit 716 48 1,189 399,390 401,343 Multi-family mortgage — — 53 363,547 363,600 Commercial real estate: Owner occupied 1,100 — 8,074 914,431 923,605 Non-owner occupied 737 — 12,016 1,662,461 1,675,214 Consumer and other 2,660 457 3,162 318,185 324,464 Total $ 10,746 $ 9,098 $ 50,429 $ 7,128,681 $ 7,198,954 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 June 30, 2021 and December 31, 2020 by class of financing receivable. June 30, 2021 Non-accrual Non-accrual Related Commercial and industrial $ 14,401 $ 1,137 $ 119 Construction 4,254 1,049 151 Residential real estate: 1-to-4 family mortgage 1,493 3,601 91 Residential line of credit 830 359 8 Multi-family mortgage — 53 8 Commercial real estate: Owner occupied 7,412 662 43 Non-owner occupied 6,418 5,598 736 Consumer and other — 3,162 162 Total $ 34,808 $ 15,621 $ 1,318 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 during the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Commercial and industrial $ 219 $ 17 $ 333 $ 169 Construction 16 6 30 33 Residential real estate: 1-to-4 family mortgage 67 6 85 13 Residential line of credit 27 — 45 1 Multi-family mortgage 1 — 2 — Commercial real estate: Owner occupied 101 43 232 64 Non-owner occupied 141 109 230 128 Consumer and other 55 24 55 24 Total $ 627 $ 205 $ 1,012 $ 432 |
Schedule of Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the periods indicated. Three Months Ended June 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 4 $ 13,055 $ 13,055 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Residential real estate: 1-to-4 family mortgage 2 811 811 — Residential line of credit 1 11 11 — Total 11 $ 17,427 $ 17,427 $ — Six Months Ended June 30, 2021 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 5 $ 13,162 $ 13,162 $ — Commercial real estate: Owner occupied 4 3,550 3,550 — Non-owner occupied 1 11,997 11,997 — Residential real estate: 1-to-4 family mortgage 2 811 811 — Residential line of credit 1 11 11 — Total 13 $ 29,531 $ 29,531 $ — Three Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 1 13 13 — Total 3 $ 1,954 $ 1,954 $ — Six Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-4 family mortgage 2 77 77 — Total 4 $ 2,018 $ 2,018 $ — |
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. June 30, 2021 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ 696 $ 14,524 $ 1 Construction 5,993 — 131 Residential real estate: 1-to-4 family mortgage 1,615 — — Residential line of credit 1,241 — 8 Commercial real estate: Owner occupied 10,045 — 23 Non-owner occupied 11,624 — 676 Total $ 31,214 $ 14,524 $ 839 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 Commercial real estate: Owner occupied 3,391 — 30 Non-owner occupied 8,164 — 1,531 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 June 30, 2021 or December 31, 2020, in connection with Company's COVID-19 relief programs. These deferrals typically ranged from sixty June 30, 2021 December 31, 2020 % of Loans % of Loans Commercial and industrial $ 13 — % $ 7,118 0.5 % Construction — — % 1,918 0.2 % Residential real estate: 1-to-4 family mortgage 3,194 0.3 % 19,201 1.8 % Residential line of credit — — % 204 — % Multi-family mortgage — — % 3,305 1.9 % Commercial real estate: Owner occupied 871 0.1 % 19,815 2.1 % Non-owner occupied 69,587 4.2 % 139,590 8.7 % Consumer and other 217 0.1 % 11,366 3.6 % Total $ 73,882 1.0 % $ 202,517 2.9 % |
Other real estate owned (Tables
Other real estate owned (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Schedule of Other Real Estate Owned | The following table summarizes the other real estate owned for the three and six months ended June 30, 2021 and 2020: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Balance at beginning of period $ 11,177 $ 17,072 $ 12,111 $ 18,939 Transfers from loans 3,201 641 4,596 1,006 Transfers to premises and equipment — — — (841) Proceeds from sale of other real estate (2,166) (2,708) (4,661) (4,150) Gain on sale of other real estate owned 272 170 1,100 345 Loans provided for sales of other real (203) — (533) — Write-downs and partial liquidations (295) (84) (627) (208) Balance at end of period $ 11,986 $ 15,091 $ 11,986 $ 15,091 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and December 31, 2020: June 30, December 31, Classification 2021 2020 Right-of-use assets: Operating leases Operating lease right-of-use assets $ 45,423 $ 49,537 Finance leases Premises and equipment, net 1,533 1,588 Total right-of-use assets $ 46,956 $ 51,125 Lease liabilities: Operating leases Operating lease liabilities $ 50,396 $ 55,187 Finance leases Borrowings 1,555 1,598 Total lease liabilities $ 51,951 $ 56,785 Weighted average remaining lease term (in years) - operating 12.3 12.2 Weighted average remaining lease term (in years) - finance 13.9 14.4 Weighted average discount rate - operating 2.72 % 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 Six Months Ended June 30, June 30, Classification 2021 2020 2021 2020 Operating lease costs: Amortization of right-of-use asset Occupancy and equipment $ 2,171 $ 1,389 $ 4,110 $ 2,678 Short-term lease cost Occupancy and equipment 102 30 189 166 Variable lease cost Occupancy and equipment 241 160 476 298 Gain on lease modifications and Occupancy and equipment (787) — (787) — Finance lease costs: Interest on lease liabilities Interest expense on borrowings 8 — 14 — Amortization of right-of-use asset Occupancy and equipment 27 — 55 — Total lease cost $ 1,762 $ 1,579 $ 4,057 $ 3,142 |
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 June 30, 2021 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2022 $ 7,734 $ 115 June 30, 2023 6,759 117 June 30, 2024 5,696 119 June 30, 2025 5,002 121 June 30, 2026 4,675 122 Thereafter 30,976 1,164 Total undiscounted future minimum lease payments 60,842 1,758 Less: imputed interest (10,446) (203) Lease liability $ 50,396 $ 1,555 |
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 June 30, 2021 is as follows: Operating Finance Leases Lease Lease payments due: June 30, 2022 $ 7,734 $ 115 June 30, 2023 6,759 117 June 30, 2024 5,696 119 June 30, 2025 5,002 121 June 30, 2026 4,675 122 Thereafter 30,976 1,164 Total undiscounted future minimum lease payments 60,842 1,758 Less: imputed interest (10,446) (203) Lease liability $ 50,396 $ 1,555 |
Mortgage servicing rights (Tabl
Mortgage servicing rights (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Carrying value at beginning of period $ 104,192 $ 62,581 $ 79,997 $ 75,521 Capitalization 10,573 12,267 22,167 20,063 Change in fair value: Due to pay-offs/pay-downs (7,865) (7,277) (17,186) (11,920) Due to change in valuation inputs or assumptions (5,285) (7,063) 16,637 (23,156) Carrying value at end of period $ 101,615 $ 60,508 $ 101,615 $ 60,508 |
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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Servicing income: Servicing income $ 6,788 $ 5,113 $ 13,719 $ 10,131 Change in fair value of mortgage servicing rights (13,150) (14,340) (549) (35,076) Change in fair value of derivative hedging instruments 10,005 1,102 (7,859) 15,970 Servicing income 3,643 (8,125) 5,311 (8,975) Servicing expenses 2,693 1,992 5,225 3,393 Net servicing income (loss) (1) $ 950 $ (10,117) $ 86 $ (12,368) (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 June 30, 2021 and December 31, 2020 are as follows: June 30, December 31, 2021 2020 Unpaid principal balance $ 10,527,708 $ 9,787,657 Weighted-average prepayment speed (CPR) 11.07 % 14.07 % Estimated impact on fair value of a 10% increase $ (4,840) $ (4,493) Estimated impact on fair value of a 20% increase $ (9,311) $ (8,599) Discount rate 11.05 % 11.49 % Estimated impact on fair value of a 100 bp increase $ (3,981) $ (2,942) Estimated impact on fair value of a 200 bp increase $ (7,700) $ (5,674) Weighted-average coupon interest rate 3.35 % 3.58 % Weighted-average servicing fee (basis points) 28 28 Weighted-average remaining maturity (in months) 329 328 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 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: Three Months Ended June 30, 2021 2020 Current $ 9,541 $ 15,747 Deferred 3,899 (8,292) Total $ 13,440 $ 7,455 Six Months Ended June 30, 2021 2020 Current $ 15,490 $ 23,915 Deferred 13,538 (16,380) Total $ 29,028 $ 7,535 |
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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, 2021 2020 Federal taxes calculated at statutory rate $ 11,916 21.0 % $ 6,369 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,879 3.3 % 1,298 4.3 % (Benefit) expense from equity based compensation (124) (0.2) % 22 0.1 % Municipal interest income, net of interest disallowance (419) (0.7) % (310) (1.0) % Bank owned life insurance (82) (0.1) % (17) (0.1) % Merger and offering costs 127 0.2 % 32 0.1 % Section 162(m) limitation 21 — % — — % Other 122 0.2 % 61 0.2 % Income tax expense, as reported $ 13,440 23.7 % $ 7,455 24.6 % Six Months Ended June 30, 2021 2020 Federal taxes calculated at statutory rate $ 26,293 21.0 % $ 6,542 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 3,629 2.9 % 1,166 3.7 % (Benefit) expense from equity based compensation (345) (0.3) % 161 0.5 % Municipal interest income, net of interest disallowance (843) (0.7) % (574) (1.8) % Bank owned life insurance (166) (0.1) % (35) (0.1) % Merger and offering costs 127 0.1 % 163 0.5 % Section 162(m) limitation 248 0.2 % — — % Other 85 0.1 % 112 0.4 % Income tax expense, as reported $ 29,028 23.2 % $ 7,535 24.2 % |
Schedule of Net Deferred Tax Assets | The components of the net deferred tax assets at June 30, 2021 and December 31, 2020, are as follows: June 30, December 31 2021 2020 Deferred tax assets: Allowance for credit losses $ 40,878 $ 48,409 Operating lease liabilities 13,067 14,496 Federal net operating loss 1,753 1,753 Deferred compensation 8,572 8,872 Unrealized loss on cash flow hedges 364 499 Other 19,817 19,101 Subtotal 84,451 93,130 Deferred tax liabilities: FHLB stock dividends $ (561) $ (561) Operating leases - right of use assets (11,831) (13,197) Depreciation (7,088) (7,491) Amortization of core deposit intangibles (349) (684) Unrealized gain on equity securities (3,877) (17) Unrealized gain on debt securities (5,987) (13,027) Mortgage servicing rights (26,435) (20,803) Goodwill (12,522) (11,301) Other (9,828) (9,653) Subtotal (78,478) (76,734) Net deferred tax assets $ 5,973 $ 16,396 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Financial Instruments with Off-Balance Sheet Credit Risk | June 30, December 31, 2021 2020 Commitments to extend credit, excluding interest rate lock commitments $ 2,529,697 $ 2,719,996 Letters of credit 68,792 67,598 Balance at end of period $ 2,598,489 $ 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 and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 14,156 $ 4,618 $ 16,378 $ — Impact of CECL adoption on provision for credit losses — — — 2,947 Increase in provision for credit losses from unfunded commitments acquired in business combination — — — 70 Provision for credit losses on unfunded commitments (954) 1,882 (3,176) 3,483 Balance at end of period $ 13,202 $ 6,500 $ 13,202 $ 6,500 |
Schedule of Activity in the Repurchase Reserve | The following table summarizes the activity in the repurchase reserve: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Balance at beginning of period $ 6,284 $ 3,829 $ 5,928 $ 3,529 Provision for loan repurchases or indemnifications (706) 855 (266) 1,227 Losses on loans repurchased or indemnified (89) (83) (173) (155) Balance at end of period $ 5,489 $ 4,601 $ 5,489 $ 4,601 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 2021 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 650,268 $ 26,355 $ 26,168 Forward commitments 1,172,717 — 1,401 Interest rate-lock commitments 787,258 13,120 — Futures contracts 502,500 2,707 — Total $ 3,112,743 $ 42,182 $ 27,569 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 June 30, 2021 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 1,391 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Not designated as hedging instruments (included in mortgage banking income): Interest rate lock commitments $ 171 $ 9,541 $ (21,271) $ 30,003 Forward commitments (19,200) (13,993) 24,058 (40,450) Futures contracts 9,104 631 (7,228) 11,542 Total $ (9,925) $ (3,821) $ (4,441) $ 1,095 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $0, $52, $0, and $104 $ — $ 148 $ — $ 295 Loss included in interest expense on borrowings (143) (62) (280) (74) Total $ (143) $ 86 $ (280) $ 221 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 June 30, Six Months Ended June 30, 2021 2020 2021 2020 Designated as hedging: Amount of gain (loss) recognized in other comprehensive income, net of tax $23, $(40), $135, and $(443) $ 67 $ (112) $ 383 $ (1,257) |
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 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Gross amounts recognized $ 4,466 $ 3,863 $ 23,536 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 4,466 3,863 23,536 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 3,146 857 3,146 857 Less: financial collateral pledged — — 20,390 33,194 Net amounts $ 1,320 $ 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 June 30, 2021 December 31, 2020 June 30, 2021 December 31, 2020 Gross amounts recognized $ 4,466 $ 3,863 $ 23,536 $ 34,051 Gross amounts offset in the consolidated balance sheets — — — — Net amounts presented in the consolidated balance sheets 4,466 3,863 23,536 34,051 Gross amounts not offset in the consolidated balance sheets Less: financial instruments 3,146 857 3,146 857 Less: financial collateral pledged — — 20,390 33,194 Net amounts $ 1,320 $ 3,006 $ — $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 1,717,097 $ 1,717,097 $ — $ — $ 1,717,097 Investment securities 1,409,175 — 1,409,175 — 1,409,175 Loans, net 7,054,291 — — 7,199,111 7,199,111 Loans held for sale 821,529 — 697,407 124,122 821,529 Interest receivable 42,083 72 6,119 35,892 42,083 Mortgage servicing rights 101,615 — — 101,615 101,615 Derivatives 42,182 — 42,182 — 42,182 Financial liabilities: Deposits: Without stated maturities $ 8,921,516 $ 8,921,516 $ — $ — $ 8,921,516 With stated maturities 1,282,440 — 1,292,720 — 1,292,720 Securities sold under agreement to repurchase and federal funds sold 33,056 33,056 — — 33,056 Subordinated debt 149,351 — — 153,631 153,631 Other borrowings 1,555 — 1,555 — 1,555 Interest payable 4,136 169 2,442 1,525 4,136 Derivatives 28,960 — 28,960 — 28,960 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 June 30, 2021 are presented in the following table: At June 30, 2021 Quoted prices Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 8,255 $ — $ 8,255 Mortgage-backed securities - residential — 1,035,003 — 1,035,003 Mortgage-backed securities - commercial — 15,161 — 15,161 Municipal securities — 332,883 — 332,883 Treasury securities — 10,534 — 10,534 Corporate securities — 2,536 — 2,536 Equity securities — 4,803 — 4,803 Total securities $ — $ 1,409,175 $ — $ 1,409,175 Loans held for sale — 697,407 124,122 821,529 Mortgage servicing rights — — 101,615 101,615 Derivatives — 42,182 — 42,182 Financial Liabilities: Derivatives — 28,960 — 28,960 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 securities $ — $ 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 June 30, 2021 are presented in the following table: At June 30, 2021 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 6,927 $ 6,927 Collateral dependent loans: Commercial and industrial $ — $ — $ 15,220 $ 15,220 Construction — — 5,993 5,993 Residential real estate: 1-4 family mortgage — — 1,615 1,615 Residential line of credit — — 1,241 1,241 Commercial real estate: Owner occupied — — 10,045 10,045 Non-owner occupied — — 11,624 11,624 Total collateral dependent loans $ — $ — $ 45,738 $ 45,738 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 collateral dependent loans $ — $ — $ 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 June 30, 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: As of June 30, 2021 Financial instrument Fair Value Valuation technique Significant Range of Collateral dependent loans $ 45,738 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 6,927 Appraised value of property less costs to sell Discount for costs to sell 0%-15% As of December 31, 2020 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: June 30, December 31, 2021 2020 Commercial and industrial $ 124,122 $ 215,403 Residential real estate: 1-4 family mortgage 697,407 683,770 Total loans held for sale $ 821,529 $ 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 June 30, 2021 Principal Balance Fair Value Discount Fair Value Carrying value at beginning of period $ 197,490 $ (22,506) $ 174,984 Change in fair value: Pay-downs and pay-offs (52,226) — (52,226) Write-offs to discount (9,292) 9,292 — Changes in valuation included in other noninterest income — 1,364 1,364 Carrying value at end of period $ 135,972 $ (11,850) $ 124,122 Six Months Ended June 30, 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 (91,792) — (91,792) Write-offs to discount (11,299) 11,299 — Changes in valuation included in other noninterest income — 511 511 Carrying value at end of period $ 135,972 $ (11,850) $ 124,122 |
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 June 30, 2021 and December 31, 2020: June 30, 2021 Aggregate Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 697,407 $ 676,510 $ 20,897 Commercial loans held for sale measured at fair value 118,278 124,846 (6,568) Nonaccrual loans 5,844 11,126 (5,282) 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) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provide segment financial information for three and six months ended June 30, 2021 and 2020 as follows: Three months ended June 30, 2021 Banking Mortgage Consolidated Net interest income $ 86,553 $ 10 $ 86,563 Provisions for credit losses (1) (13,839) — (13,839) Mortgage banking income (2) — 38,644 38,644 Change in fair value of mortgage servicing rights, net of hedging (2) — (3,145) (3,145) Other noninterest income 14,002 (201) 13,801 Depreciation and amortization 1,618 344 1,962 Amortization of intangibles 1,394 — 1,394 Other noninterest expense 55,182 34,422 89,604 Income before income taxes $ 56,200 $ 542 $ 56,742 Income tax expense 13,440 Net income applicable to FB Financial Corporation and noncontrolling interest 43,302 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 43,294 Total assets $ 10,908,107 $ 1,010,260 $ 11,918,367 Goodwill 242,561 — 242,561 (1) Included $(954) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Three months ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 55,350 $ (13) $ 55,337 Provisions for credit losses (1) 25,921 — 25,921 Mortgage banking income (2) — 85,406 85,406 Change in fair value of mortgage servicing rights, net of hedging (2) — (13,238) (13,238) Other noninterest income 9,323 — 9,323 Depreciation and amortization 1,503 247 1,750 Amortization of intangibles 1,205 — 1,205 Other noninterest expense (3) 39,332 38,292 77,624 (Loss) income before income taxes $ (3,288) $ 33,616 $ 30,328 Income tax expense 7,455 Net income applicable to FB Financial Corporation and noncontrolling interest 22,873 Net income applicable to noncontrolling interest (4) — Net income applicable to FB Financial Corporation $ 22,873 Total assets $ 6,632,506 $ 623,030 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $1,882 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Included $1,586 of merger costs in the Banking Segment primarily related to the integration of Farmers National (4) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2021 Banking Mortgage Consolidated Net interest income $ 169,150 $ (11) $ 169,139 Provisions for credit losses (1) (27,693) — (27,693) Mortgage banking income (2) — 99,239 99,239 Change in fair value of mortgage servicing rights, net of hedging (2) — (8,408) (8,408) Other noninterest income 25,400 (201) 25,199 Depreciation and amortization 3,476 672 4,148 Amortization of intangibles 2,834 — 2,834 Other noninterest expense 107,619 73,057 180,676 Income before income taxes $ 108,314 $ 16,890 $ 125,204 Income tax expense 29,028 Net income applicable to FB Financial Corporation and noncontrolling interest 96,176 Net income applicable to noncontrolling interest (3) 8 Net income applicable to FB Financial Corporation $ 96,168 Total assets $ 10,908,107 $ 1,010,260 $ 11,918,367 Goodwill 242,561 — 242,561 (1) Included $(3,176) in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Banking segment includes noncontrolling interest. Six Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 111,583 $ 3 $ 111,586 Provisions for credit losses (1) 55,486 — 55,486 Mortgage banking income (2) — 124,019 124,019 Change in fair value of mortgage servicing rights, net of hedging (2) — (19,106) (19,106) Other noninterest income 19,278 — 19,278 Depreciation and amortization 2,995 497 3,492 Amortization of intangibles 2,408 — 2,408 Other noninterest expense (3) 80,454 62,784 143,238 (Loss) income before income taxes $ (10,482) $ 41,635 $ 31,153 Income tax expense 7,535 Net income applicable to FB Financial Corporation and noncontrolling interest 23,618 Net income applicable to noncontrolling interest (4) — Net income applicable to FB Financial Corporation $ 23,618 Total assets $ 6,632,506 $ 623,030 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Includes $3,483 in provision for credit losses on unfunded commitments. (2) Change in fair value of mortgage servicing rights, net of hedging is included in mortgage banking income in the Company's consolidated statements of income. (3) Includes $4,636 of merger costs in the Banking segment related to the Farmers National acquisition and the Franklin merger. (4) Banking segment includes noncontrolling interest. |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 6 Months Ended |
Jun. 30, 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 Amount Ratio Amount Ratio Amount Ratio June 30, 2021 Total Capital (to risk-weighted assets) FB Financial Corporation $ 1,383,471 14.9 % $ 974,690 10.5 % N/A N/A FirstBank 1,317,759 14.2 % 971,072 10.5 % $ 924,831 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,177,609 12.7 % $ 789,034 8.5 % N/A N/A FirstBank 1,131,897 12.2 % 786,106 8.5 % $ 739,865 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 1,177,609 10.1 % $ 466,866 4.0 % N/A N/A FirstBank 1,131,897 9.7 % 465,961 4.0 % $ 582,451 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 1,147,609 12.4 % $ 649,793 7.0 % N/A N/A FirstBank 1,131,897 12.2 % 647,382 7.0 % $ 601,140 6.5 % Actual Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2020 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) | 6 Months Ended |
Jun. 30, 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 the dates indicated: Six Months Ended June 30, 2021 2020 Restricted Stock Weighted Restricted Stock Weighted Balance at beginning of period 1,047,071 $ 26.06 826,263 $ 23.76 Granted 193,760 43.06 132,605 33.92 Vested (159,114) 32.63 (132,203) 32.52 Forfeited (29,639) 27.36 (14,826) 34.24 Balance at end of period 1,052,078 $ 27.73 811,839 $ 24.84 |
Schedule of Changes in Performance Stock Units | The following table summarizes information about the changes in performance stock units as of and for the six months ended June 30, 2021 and 2020. Six Months Ended June 30, 2021 2020 Performance Stock Weighted Performance Stock Weighted Balance at beginning of period (unvested) 53,147 $ 36.21 — $ — Granted 65,304 43.20 53,147 36.21 Vested — — — — Forfeited or expired (2,319) 36.73 — — Balance at end of period (unvested) 116,132 $ 40.13 53,147 $ 36.21 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 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 1,687 Change in related party status (98) Repayments (4,933) Loans outstanding at June 30, 2021 $ 21,331 |
Basis of presentation - Narrati
Basis of presentation - Narrative (Details) | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Basic earnings per common share calculation: | ||||
Net income applicable to FB Financial Corporation | $ 43,294 | $ 22,873 | $ 96,168 | $ 23,618 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | 0 | 0 | 0 |
Earnings available to common shareholders | $ 43,294 | $ 22,873 | $ 96,168 | $ 23,618 |
Weighted average basic shares outstanding (in shares) | 47,351,969 | 32,094,274 | 47,312,312 | 31,676,004 |
Basic earnings per common share (in dollars per share) | $ 0.91 | $ 0.71 | $ 2.03 | $ 0.75 |
Diluted earnings per common share: | ||||
Earnings available to common shareholders | $ 43,294 | $ 22,873 | $ 96,168 | $ 23,618 |
Weighted average basic shares outstanding (in shares) | 47,351,969 | 32,094,274 | 47,312,312 | 31,676,004 |
Weighted average diluted shares contingently issuable (in shares) | 641,804 | 412,143 | 664,221 | 433,190 |
Weighted average diluted shares outstanding (in shares) | 47,993,773 | 32,506,417 | 47,976,533 | 32,109,194 |
Diluted (loss) earnings per common share (in dollars per share) | $ 0.90 | $ 0.70 | $ 2 | $ 0.74 |
Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Restricted stock units outstanding considered to be antidilutive (in shares) | 164,472 | 352,888 | 250,776 | 352,888 |
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 |
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 (in dollars per share) | $ / shares | $ 29.52 |
Purchase price | $ 477,830 |
Goodwill resulting from merger | $ 67,191 |
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 (in dollars 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 (in dollars 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 (in dollars 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 (in dollars 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 | Jun. 30, 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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Business Combination and Asset Acquisition [Abstract] | ||
Net interest income | $ 84,610 | $ 169,352 |
Total revenues | 176,657 | 310,254 |
Net income applicable to FB Financial Corporation | $ 32,623 | $ 32,149 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost and Fair Value of Securities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | $ 1,382,051,000 | $ 1,137,848,000 | |
Gross unrealized gains | 28,132,000 | 35,376,000 | |
Gross unrealized losses | (5,811,000) | (824,000) | |
Allowance for credit losses for investments | 0 | 0 | $ 0 |
Fair Value | 1,404,372,000 | 1,172,400,000 | |
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 8,255,000 | 2,000,000 | |
Gross unrealized gains | 1,000 | 3,000 | |
Gross unrealized losses | (1,000) | 0 | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 8,255,000 | 2,003,000 | |
Mortgage-backed securities - residential | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 1,031,233,000 | 760,099,000 | |
Gross unrealized gains | 9,507,000 | 14,040,000 | |
Gross unrealized losses | (5,737,000) | (803,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 1,035,003,000 | 773,336,000 | |
Mortgage-backed securities - commercial | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 14,715,000 | 20,226,000 | |
Gross unrealized gains | 446,000 | 1,362,000 | |
Gross unrealized losses | 0 | 0 | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 15,161,000 | 21,588,000 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 314,862,000 | 336,543,000 | |
Gross unrealized gains | 18,088,000 | 19,806,000 | |
Gross unrealized losses | (67,000) | (20,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 332,883,000 | 356,329,000 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 10,486,000 | 16,480,000 | |
Gross unrealized gains | 48,000 | 148,000 | |
Gross unrealized losses | 0 | 0 | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | 10,534,000 | 16,628,000 | |
Corporate securities | |||
Debt Securities, Available-for-sale [Abstract] | |||
Amortized cost | 2,500,000 | 2,500,000 | |
Gross unrealized gains | 42,000 | 17,000 | |
Gross unrealized losses | (6,000) | (1,000) | |
Allowance for credit losses for investments | 0 | 0 | |
Fair Value | $ 2,536,000 | $ 2,516,000 |
Investment securities - Narrati
Investment securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)security | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Accrued interest receivable | $ 42,083,000 | $ 42,083,000 | $ 43,603,000 | ||
Marketable securities at fair value | 4,803,000 | 4,803,000 | 4,591,000 | ||
Trade date receivable - securities | 0 | 0 | |||
Trade date payable - securities | 41,722,000 | $ 5,431,000 | 0 | ||
Net unrealized gains (losses) on equity securities | 136,000 | $ (28,000) | 212,000 | 35,000 | |
Allowance for credit losses for investments | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Number of securities in securities portfolio | security | 508 | 508 | 514 | ||
Number of securities in securities portfolio, unrealized loss position | security | 32 | 32 | 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 | 998,047,000 | $ 998,047,000 | $ 804,821,000 | ||
Debt Securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Accrued interest receivable | $ 4,630,000 | $ 4,630,000 | $ 4,540,000 |
Investment securities - Schedul
Investment securities - Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized cost | ||
Due in one year or less | $ 18,861 | $ 35,486 |
Due in one to five years | 21,955 | 24,278 |
Due in five to ten years | 44,248 | 40,038 |
Due in over ten years | 251,039 | 257,721 |
Amortized cost, sub-total | 336,103 | 357,523 |
Total debt securities | 1,382,051 | 1,137,848 |
Fair value | ||
Due in one year or less | 18,971 | 35,662 |
Due in one to five years | 22,387 | 24,684 |
Due in five to ten years | 45,746 | 41,332 |
Due in over ten years | 267,104 | 275,798 |
Fair value, sub-total | 354,208 | 377,476 |
Total debt securities | 1,404,372 | 1,172,400 |
Mortgage-backed securities - residential | ||
Amortized cost | ||
Mortgage-backed securities | 1,031,233 | 760,099 |
Total debt securities | 1,031,233 | 760,099 |
Fair value | ||
Mortgage-backed securities | 1,035,003 | 773,336 |
Total debt securities | 1,035,003 | 773,336 |
Mortgage-backed securities - commercial | ||
Amortized cost | ||
Mortgage-backed securities | 14,715 | 20,226 |
Total debt securities | 14,715 | 20,226 |
Fair value | ||
Mortgage-backed securities | 15,161 | 21,588 |
Total debt securities | $ 15,161 | $ 21,588 |
Investment securities - Summa_2
Investment securities - Summary of Sales and Other Dispositions of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 0 | $ 0 | $ 0 |
Proceeds from maturities, prepayments and calls | 86,866 | 44,703 | 147,906 | 72,360 |
Gross realized gains | 8 | 0 | 15 | 0 |
Gross realized losses | $ 0 | $ 0 | $ 0 | $ 0 |
Investment securities - Sched_2
Investment securities - Schedule of Gross Unrealized Losses on Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | $ 459,557 | $ 185,695 |
Unrealized Loss, Less than 12 months | (5,811) | (824) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 459,557 | 185,695 |
Unrealized Loss, Total | (5,811) | (824) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 1,250 | |
Unrealized Loss, Less than 12 months | (1) | |
Fair Value, 12 months or more | 0 | |
Unrealized Loss, 12 months or more | 0 | |
Fair Value, Total | 1,250 | |
Unrealized Loss, Total | (1) | |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 449,834 | 182,012 |
Unrealized Loss, Less than 12 months | (5,737) | (803) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 449,834 | 182,012 |
Unrealized Loss, Total | (5,737) | (803) |
Municipal securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 7,979 | 3,184 |
Unrealized Loss, Less than 12 months | (67) | (20) |
Fair Value, 12 months or more | 0 | 0 |
Unrealized Loss, 12 months or more | 0 | 0 |
Fair Value, Total | 7,979 | 3,184 |
Unrealized Loss, Total | (67) | (20) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Fair Value, Less than 12 months | 494 | 499 |
Unrealized Loss, Less than 12 months | (6) | (1) |
Fair Value, 12 months or more | 0 | |
Unrealized Loss, 12 months or more | 0 | |
Fair Value, Total | 494 | 499 |
Unrealized Loss, Total | $ (6) | $ (1) |
Loans and allowance for credi_3
Loans and allowance for credit losses - Loans Outstanding by Class of Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | $ 7,198,954 | $ 7,082,959 | ||||
Less: Allowance for credit losses | (144,663) | $ (157,954) | (170,389) | $ (113,129) | $ (89,141) | $ (31,139) |
Net loans | 7,054,291 | 6,912,570 | ||||
Paycheck Protection Program | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Loans originated as part of PPP program | 57,406 | 212,645 | ||||
Commercial and industrial | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,238,940 | 1,346,122 | ||||
Less: Allowance for credit losses | (13,791) | (14,643) | (14,748) | (8,878) | (10,881) | (4,805) |
Construction | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,145,165 | 1,222,220 | ||||
Less: Allowance for credit losses | (32,838) | (38,622) | (58,477) | (35,599) | (22,842) | (10,194) |
Residential real estate | 1-to-4 family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,126,623 | 1,089,270 | ||||
Less: Allowance for credit losses | (19,672) | (19,572) | (19,220) | (12,463) | (13,006) | (3,112) |
Residential real estate | Residential line of credit | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 401,343 | 408,211 | ||||
Less: Allowance for credit losses | (6,716) | (9,268) | (10,534) | (6,811) | (6,213) | (752) |
Residential real estate | Multi-family mortgage | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 363,600 | 175,676 | ||||
Less: Allowance for credit losses | (13,475) | (11,657) | (7,174) | (4,499) | (2,328) | (544) |
Commercial real estate | Owner occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 923,605 | 924,841 | ||||
Less: Allowance for credit losses | (4,707) | (3,609) | (4,849) | (7,420) | (9,047) | (4,109) |
Commercial real estate | Non-owner occupied | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 1,675,214 | 1,598,979 | ||||
Less: Allowance for credit losses | (42,856) | (50,179) | (44,147) | (30,444) | (18,005) | (4,621) |
Consumer and other | ||||||
Financing Receivable, Past Due [Line Items] | ||||||
Gross loans | 324,464 | 317,640 | ||||
Less: Allowance for credit losses | $ (10,608) | $ (10,404) | $ (11,240) | $ (7,015) | $ (6,819) | $ (3,002) |
Loans and allowance for credi_4
Loans and allowance for credit losses - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable, Past Due [Line Items] | |||||
Accrued interest receivable on loans | $ 35,892,000 | $ 35,892,000 | $ 38,316,000 | ||
Accrued interest receivable written off as an adjustment to interest income on non-accrual loans | 132,000 | $ 597,000 | 162,000 | $ 282,000 | |
Recorded investment in TDRs | 42,678,000 | 42,678,000 | 15,988,000 | ||
TDRs classified as non-accruals | 23,608,000 | 23,608,000 | 8,279,000 | ||
Allocation to specific reserves | 1,285,000 | 1,285,000 | 310,000 | ||
Commitment to lend additional amounts to troubled debt restructuring | 6,153,000 | 6,153,000 | 0 | ||
Payment default for loans modified as troubled debt restructurings | 0 | $ 0 | $ 0 | $ 0 | |
Payment deferral extension period | 60 days | ||||
Deferred loans that were transferred to normal payment status | 1,355,475,000 | $ 1,355,475,000 | 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 | 2,290,661,000 | $ 2,290,661,000 | 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 | 1,256,344,000 | 1,256,344,000 | 1,248,857,000 | ||
FHLB Cincinnati | Commercial Loan | |||||
Financing Receivable, Past Due [Line Items] | |||||
Pledge loans to the Federal Home Loan Bank securing advances | $ 1,542,531,000 | $ 1,542,531,000 | $ 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 157,954 | $ 89,141 | $ 170,389 | $ 31,139 |
Provision for credit losses | (12,885) | 24,039 | (24,517) | 52,003 |
Recoveries of loans previously charged-off | 453 | 1,114 | 820 | 1,448 |
Loans charged off | (859) | (1,165) | (2,029) | (3,576) |
Initial allowance on loans purchased with deteriorated credit quality | 669 | |||
Balance at end of period | 144,663 | 113,129 | 144,663 | 113,129 |
Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 18,945 | |||
Balance at end of period | 18,970 | 18,970 | ||
Impact of adopting ASC 326 | Non-purchased credit deteriorated loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 30,888 | |||
Impact of adopting ASC 326 | 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 | 14,643 | 10,881 | 14,748 | 4,805 |
Provision for credit losses | (579) | (2,663) | (536) | (834) |
Recoveries of loans previously charged-off | 87 | 807 | 216 | 895 |
Loans charged off | (360) | (147) | (637) | (1,381) |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |||
Balance at end of period | 13,791 | 8,878 | 13,791 | 8,878 |
Commercial and industrial | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 882 | |||
Balance at end of period | 613 | 613 | ||
Commercial and industrial | Impact of adopting ASC 326 | Non-purchased credit deteriorated loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 5,300 | |||
Commercial and industrial | Impact of adopting ASC 326 | 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 | 38,622 | 22,842 | 58,477 | 10,194 |
Provision for credit losses | (5,784) | 12,624 | (25,610) | 23,578 |
Recoveries of loans previously charged-off | 0 | 151 | 0 | 151 |
Loans charged off | 0 | (18) | (29) | (18) |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |||
Balance at end of period | 32,838 | 35,599 | 32,838 | 35,599 |
Construction | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 4,317 | |||
Balance at end of period | 1,556 | 1,556 | ||
Construction | Impact of adopting ASC 326 | Non-purchased credit deteriorated loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,533 | |||
Construction | Impact of adopting ASC 326 | 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 | 19,572 | 13,006 | 19,220 | 3,112 |
Provision for credit losses | 75 | (446) | 536 | 1,218 |
Recoveries of loans previously charged-off | 41 | 26 | 65 | 50 |
Loans charged off | (16) | (123) | (149) | (365) |
Initial allowance on loans purchased with deteriorated credit quality | 107 | |||
Balance at end of period | 19,672 | 12,463 | 19,672 | 12,463 |
Residential real estate | 1-to-4 family mortgage | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2,014 | |||
Balance at end of period | 1,609 | 1,609 | ||
Residential real estate | 1-to-4 family mortgage | Impact of adopting ASC 326 | 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 | Impact of adopting ASC 326 | 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 | 9,268 | 6,213 | 10,534 | 752 |
Provision for credit losses | (2,558) | 595 | (3,815) | 2,580 |
Recoveries of loans previously charged-off | 9 | 24 | 15 | 39 |
Loans charged off | (3) | (21) | (18) | (21) |
Initial allowance on loans purchased with deteriorated credit quality | 3 | |||
Balance at end of period | 6,716 | 6,811 | 6,716 | 6,811 |
Residential real estate | Residential line of credit | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 494 | |||
Balance at end of period | 241 | 241 | ||
Residential real estate | Residential line of credit | Impact of adopting ASC 326 | 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 | Impact of adopting ASC 326 | 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 | 11,657 | 2,328 | 7,174 | 544 |
Provision for credit losses | 1,818 | 2,171 | 6,301 | 3,615 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 0 | |||
Balance at end of period | 13,475 | 4,499 | 13,475 | 4,499 |
Residential real estate | Multi-family mortgage | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 848 | |||
Balance at end of period | 499 | 499 | ||
Residential real estate | Multi-family mortgage | Impact of adopting ASC 326 | 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 | Impact of adopting ASC 326 | 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 | 3,609 | 9,047 | 4,849 | 4,109 |
Provision for credit losses | 972 | (1,630) | (281) | 1,408 |
Recoveries of loans previously charged-off | 126 | 3 | 139 | 17 |
Loans charged off | 0 | 0 | 0 | (209) |
Initial allowance on loans purchased with deteriorated credit quality | 54 | |||
Balance at end of period | 4,707 | 7,420 | 4,707 | 7,420 |
Commercial real estate | Owner occupied | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 757 | |||
Balance at end of period | 669 | 669 | ||
Commercial real estate | Owner occupied | Impact of adopting ASC 326 | 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 | Impact of adopting ASC 326 | 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 | 50,179 | 18,005 | 44,147 | 4,621 |
Provision for credit losses | (7,323) | 12,984 | (1,291) | 18,919 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | (545) | 0 | (545) |
Initial allowance on loans purchased with deteriorated credit quality | 443 | |||
Balance at end of period | 42,856 | 30,444 | 42,856 | 30,444 |
Commercial real estate | Non-owner occupied | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 8,910 | |||
Balance at end of period | 13,160 | 13,160 | ||
Commercial real estate | Non-owner occupied | Impact of adopting ASC 326 | 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 | Impact of adopting ASC 326 | 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 | 10,404 | 6,819 | 11,240 | 3,002 |
Provision for credit losses | 494 | 404 | 179 | 1,519 |
Recoveries of loans previously charged-off | 190 | 103 | 385 | 296 |
Loans charged off | (480) | (311) | (1,196) | (1,037) |
Initial allowance on loans purchased with deteriorated credit quality | 40 | |||
Balance at end of period | 10,608 | $ 7,015 | 10,608 | 7,015 |
Consumer and other | Purchased Credit Impaired loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 723 | |||
Balance at end of period | $ 623 | $ 623 | ||
Consumer and other | Impact of adopting ASC 326 | Non-purchased credit deteriorated loans | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,633 | |||
Consumer and other | Impact of adopting ASC 326 | 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 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | $ 943 | $ 2,039 | ||||
Collectively evaluated for credit loss | 124,750 | 149,405 | ||||
Total | 144,663 | $ 157,954 | 170,389 | $ 113,129 | $ 89,141 | $ 31,139 |
Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 18,970 | 18,945 | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 105 | 373 | ||||
Collectively evaluated for credit loss | 13,073 | 13,493 | ||||
Total | 13,791 | 14,643 | 14,748 | 8,878 | 10,881 | 4,805 |
Commercial and industrial | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 613 | 882 | ||||
Construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 131 | 95 | ||||
Collectively evaluated for credit loss | 31,151 | 54,065 | ||||
Total | 32,838 | 38,622 | 58,477 | 35,599 | 22,842 | 10,194 |
Construction | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,556 | 4,317 | ||||
Residential real estate | 1-to-4 family mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 18,063 | 17,206 | ||||
Total | 19,672 | 19,572 | 19,220 | 12,463 | 13,006 | 3,112 |
Residential real estate | 1-to-4 family mortgage | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 1,609 | 2,014 | ||||
Residential real estate | Residential line of credit | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 8 | 9 | ||||
Collectively evaluated for credit loss | 6,467 | 10,031 | ||||
Total | 6,716 | 9,268 | 10,534 | 6,811 | 6,213 | 752 |
Residential real estate | Residential line of credit | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 241 | 494 | ||||
Residential real estate | Multi-family mortgage | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 0 | 0 | ||||
Collectively evaluated for credit loss | 12,976 | 6,326 | ||||
Total | 13,475 | 11,657 | 7,174 | 4,499 | 2,328 | 544 |
Residential real estate | Multi-family mortgage | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 499 | 848 | ||||
Commercial real estate | Owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 23 | 30 | ||||
Collectively evaluated for credit loss | 4,015 | 4,062 | ||||
Total | 4,707 | 3,609 | 4,849 | 7,420 | 9,047 | 4,109 |
Commercial real estate | Owner occupied | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 669 | 757 | ||||
Commercial real estate | Non-owner occupied | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 676 | 1,531 | ||||
Collectively evaluated for credit loss | 29,020 | 33,706 | ||||
Total | 42,856 | 50,179 | 44,147 | 30,444 | 18,005 | 4,621 |
Commercial real estate | Non-owner occupied | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 13,160 | 8,910 | ||||
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Individually evaluated for credit loss | 0 | 1 | ||||
Collectively evaluated for credit loss | 9,985 | 10,516 | ||||
Total | 10,608 | $ 10,404 | 11,240 | $ 7,015 | $ 6,819 | $ 3,002 |
Consumer and other | Purchased Credit Impaired loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $ 623 | $ 723 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | $ 38,826 | $ 38,205 |
Collectively evaluated for credit loss | 6,553,664 | 6,329,868 |
Purchased credit deteriorated | 606,464 | 714,886 |
Total | 7,198,954 | 7,082,959 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 15,159 | 15,578 |
Collectively evaluated for credit loss | 1,176,960 | 1,270,058 |
Purchased credit deteriorated | 46,821 | 60,486 |
Total | 1,238,940 | 1,346,122 |
Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 5,993 | 4,851 |
Collectively evaluated for credit loss | 1,097,065 | 1,140,634 |
Purchased credit deteriorated | 42,107 | 76,735 |
Total | 1,145,165 | 1,222,220 |
Residential real estate | 1-to-4 family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 894 | 848 |
Collectively evaluated for credit loss | 1,038,746 | 987,142 |
Purchased credit deteriorated | 86,983 | 101,280 |
Total | 1,126,623 | 1,089,270 |
Residential real estate | Residential line of credit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 412 | 412 |
Collectively evaluated for credit loss | 384,698 | 387,250 |
Purchased credit deteriorated | 16,233 | 20,549 |
Total | 401,343 | 408,211 |
Residential real estate | Multi-family mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 0 | 0 |
Collectively evaluated for credit loss | 354,021 | 156,447 |
Purchased credit deteriorated | 9,579 | 19,229 |
Total | 363,600 | 175,676 |
Commercial real estate | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 9,135 | 7,846 |
Collectively evaluated for credit loss | 822,532 | 813,151 |
Purchased credit deteriorated | 91,938 | 103,844 |
Total | 923,605 | 924,841 |
Commercial real estate | Non-owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 7,207 | 8,631 |
Collectively evaluated for credit loss | 1,368,161 | 1,272,203 |
Purchased credit deteriorated | 299,846 | 318,145 |
Total | 1,675,214 | 1,598,979 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for credit loss | 26 | 39 |
Collectively evaluated for credit loss | 311,481 | 302,983 |
Purchased credit deteriorated | 12,957 | 14,618 |
Total | $ 324,464 | $ 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | $ 1,049,690 | $ 1,517,481 |
Before Current Fiscal Year | 1,196,905 | 1,246,239 |
Two Years before Current Fiscal Year | 1,010,521 | 853,371 |
Three Years before Current Fiscal Year | 726,171 | 696,494 |
Four Years before Current Fiscal Year | 582,635 | 648,821 |
Five Years before Current Fiscal Year | 1,366,409 | 900,082 |
Revolving Loans Amortized Cost Basis | 1,266,623 | 1,220,471 |
Total | 7,198,954 | 7,082,959 |
Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 1,048,846 | 1,510,393 |
Before Current Fiscal Year | 1,192,101 | 1,228,017 |
Two Years before Current Fiscal Year | 993,387 | 813,323 |
Three Years before Current Fiscal Year | 672,356 | 660,160 |
Four Years before Current Fiscal Year | 563,451 | 628,209 |
Five Years before Current Fiscal Year | 1,294,350 | 836,930 |
Revolving Loans Amortized Cost Basis | 1,230,153 | 1,171,352 |
Total | 6,994,644 | 6,848,384 |
Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 146 | 3,371 |
Before Current Fiscal Year | 1,583 | 7,791 |
Two Years before Current Fiscal Year | 2,973 | 16,478 |
Three Years before Current Fiscal Year | 7,775 | 19,060 |
Four Years before Current Fiscal Year | 3,470 | 9,199 |
Five Years before Current Fiscal Year | 21,153 | 18,733 |
Revolving Loans Amortized Cost Basis | 16,552 | 27,720 |
Total | 53,652 | 102,352 |
Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 698 | 3,717 |
Before Current Fiscal Year | 3,221 | 10,431 |
Two Years before Current Fiscal Year | 14,161 | 23,570 |
Three Years before Current Fiscal Year | 46,040 | 17,274 |
Four Years before Current Fiscal Year | 15,714 | 11,413 |
Five Years before Current Fiscal Year | 50,906 | 44,419 |
Revolving Loans Amortized Cost Basis | 19,918 | 21,399 |
Total | 150,658 | 132,223 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 93,916 | 341,806 |
Before Current Fiscal Year | 163,227 | 189,148 |
Two Years before Current Fiscal Year | 165,099 | 82,337 |
Three Years before Current Fiscal Year | 74,245 | 64,787 |
Four Years before Current Fiscal Year | 52,402 | 45,070 |
Five Years before Current Fiscal Year | 76,888 | 46,542 |
Revolving Loans Amortized Cost Basis | 613,163 | 576,432 |
Total | 1,238,940 | 1,346,122 |
Commercial and industrial | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 93,229 | 339,074 |
Before Current Fiscal Year | 160,243 | 185,636 |
Two Years before Current Fiscal Year | 162,002 | 70,549 |
Three Years before Current Fiscal Year | 63,799 | 59,917 |
Four Years before Current Fiscal Year | 48,206 | 37,573 |
Five Years before Current Fiscal Year | 66,856 | 42,685 |
Revolving Loans Amortized Cost Basis | 584,470 | 540,960 |
Total | 1,178,805 | 1,276,394 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 27 | 231 |
Before Current Fiscal Year | 278 | 824 |
Two Years before Current Fiscal Year | 423 | 561 |
Three Years before Current Fiscal Year | 20 | 445 |
Four Years before Current Fiscal Year | 468 | 915 |
Five Years before Current Fiscal Year | 3,118 | 2,580 |
Revolving Loans Amortized Cost Basis | 15,920 | 24,826 |
Total | 20,254 | 30,382 |
Commercial and industrial | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 660 | 2,501 |
Before Current Fiscal Year | 2,706 | 2,688 |
Two Years before Current Fiscal Year | 2,674 | 11,227 |
Three Years before Current Fiscal Year | 10,426 | 4,425 |
Four Years before Current Fiscal Year | 3,728 | 6,582 |
Five Years before Current Fiscal Year | 6,914 | 1,277 |
Revolving Loans Amortized Cost Basis | 12,773 | 10,646 |
Total | 39,881 | 39,346 |
Construction | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 261,384 | 462,757 |
Before Current Fiscal Year | 393,596 | 393,683 |
Two Years before Current Fiscal Year | 207,332 | 91,865 |
Three Years before Current Fiscal Year | 52,939 | 54,304 |
Four Years before Current Fiscal Year | 30,705 | 41,636 |
Five Years before Current Fiscal Year | 88,260 | 65,971 |
Revolving Loans Amortized Cost Basis | 110,949 | 112,004 |
Total | 1,145,165 | 1,222,220 |
Construction | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 261,384 | 461,715 |
Before Current Fiscal Year | 393,404 | 390,443 |
Two Years before Current Fiscal Year | 205,133 | 86,490 |
Three Years before Current Fiscal Year | 48,972 | 52,942 |
Four Years before Current Fiscal Year | 29,372 | 40,907 |
Five Years before Current Fiscal Year | 84,769 | 62,890 |
Revolving Loans Amortized Cost Basis | 110,748 | 112,004 |
Total | 1,133,782 | 1,207,391 |
Construction | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 469 |
Before Current Fiscal Year | 160 | 1,485 |
Two Years before Current Fiscal Year | 0 | 2,197 |
Three Years before Current Fiscal Year | 0 | 1,221 |
Four Years before Current Fiscal Year | 1,209 | 729 |
Five Years before Current Fiscal Year | 734 | 13 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 2,103 | 6,114 |
Construction | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 573 |
Before Current Fiscal Year | 32 | 1,755 |
Two Years before Current Fiscal Year | 2,199 | 3,178 |
Three Years before Current Fiscal Year | 3,967 | 141 |
Four Years before Current Fiscal Year | 124 | 0 |
Five Years before Current Fiscal Year | 2,757 | 3,068 |
Revolving Loans Amortized Cost Basis | 201 | 0 |
Total | 9,280 | 8,715 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 203,763 | 284,978 |
Before Current Fiscal Year | 242,754 | 179,968 |
Two Years before Current Fiscal Year | 155,236 | 169,514 |
Three Years before Current Fiscal Year | 130,607 | 163,957 |
Four Years before Current Fiscal Year | 135,593 | 115,537 |
Five Years before Current Fiscal Year | 258,670 | 175,316 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,126,623 | 1,089,270 |
Residential real estate | 1-to-4 family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 203,719 | 283,107 |
Before Current Fiscal Year | 241,270 | 176,711 |
Two Years before Current Fiscal Year | 152,228 | 164,499 |
Three Years before Current Fiscal Year | 126,627 | 157,731 |
Four Years before Current Fiscal Year | 130,028 | 111,194 |
Five Years before Current Fiscal Year | 246,202 | 162,051 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 1,100,074 | 1,055,293 |
Residential real estate | 1-to-4 family mortgage | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 44 | 1,423 |
Before Current Fiscal Year | 1,145 | 1,829 |
Two Years before Current Fiscal Year | 1,201 | 1,209 |
Three Years before Current Fiscal Year | 606 | 753 |
Four Years before Current Fiscal Year | 328 | 721 |
Five Years before Current Fiscal Year | 2,752 | 3,865 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 6,076 | 9,800 |
Residential real estate | 1-to-4 family mortgage | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 448 |
Before Current Fiscal Year | 339 | 1,428 |
Two Years before Current Fiscal Year | 1,807 | 3,806 |
Three Years before Current Fiscal Year | 3,374 | 5,473 |
Four Years before Current Fiscal Year | 5,237 | 3,622 |
Five Years before Current Fiscal Year | 9,716 | 9,400 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 20,473 | 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 | 401,343 | 408,211 |
Total | 401,343 | 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 | 396,297 | 400,206 |
Total | 396,297 | 400,206 |
Residential real estate | Residential line of credit | Special Mention | ||
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 | 344 | 2,653 |
Total | 344 | 2,653 |
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 | 4,702 | 5,352 |
Total | 4,702 | 5,352 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 143,092 | 29,006 |
Before Current Fiscal Year | 31,127 | 13,446 |
Two Years before Current Fiscal Year | 74,713 | 11,843 |
Three Years before Current Fiscal Year | 7,370 | 46,561 |
Four Years before Current Fiscal Year | 39,365 | 28,330 |
Five Years before Current Fiscal Year | 57,479 | 35,396 |
Revolving Loans Amortized Cost Basis | 10,454 | 11,094 |
Total | 363,600 | 175,676 |
Residential real estate | Multi-family mortgage | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 143,092 | 29,006 |
Before Current Fiscal Year | 31,127 | 13,446 |
Two Years before Current Fiscal Year | 74,713 | 11,843 |
Three Years before Current Fiscal Year | 7,370 | 46,561 |
Four Years before Current Fiscal Year | 39,365 | 28,330 |
Five Years before Current Fiscal Year | 57,426 | 35,339 |
Revolving Loans Amortized Cost Basis | 10,454 | 11,094 |
Total | 363,547 | 175,619 |
Residential real estate | Multi-family mortgage | Special Mention | ||
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 | 0 | 0 |
Total | 0 | 0 |
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 | 53 | 57 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 53 | 57 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 64,153 | 141,915 |
Before Current Fiscal Year | 138,004 | 182,641 |
Two Years before Current Fiscal Year | 192,328 | 104,251 |
Three Years before Current Fiscal Year | 95,674 | 116,906 |
Four Years before Current Fiscal Year | 95,793 | 82,914 |
Five Years before Current Fiscal Year | 276,844 | 237,800 |
Revolving Loans Amortized Cost Basis | 60,809 | 58,414 |
Total | 923,605 | 924,841 |
Commercial real estate | Owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 64,153 | 140,904 |
Before Current Fiscal Year | 138,004 | 179,500 |
Two Years before Current Fiscal Year | 187,870 | 97,577 |
Three Years before Current Fiscal Year | 89,391 | 94,659 |
Four Years before Current Fiscal Year | 90,172 | 76,539 |
Five Years before Current Fiscal Year | 256,949 | 224,108 |
Revolving Loans Amortized Cost Basis | 58,761 | 53,451 |
Total | 885,300 | 866,738 |
Commercial real estate | Owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 967 |
Before Current Fiscal Year | 0 | 1,356 |
Two Years before Current Fiscal Year | 1,335 | 4,251 |
Three Years before Current Fiscal Year | 3,649 | 16,173 |
Four Years before Current Fiscal Year | 1,464 | 6,101 |
Five Years before Current Fiscal Year | 5,749 | 2,466 |
Revolving Loans Amortized Cost Basis | 288 | 230 |
Total | 12,485 | 31,544 |
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 | 3,123 | 2,423 |
Three Years before Current Fiscal Year | 2,634 | 6,074 |
Four Years before Current Fiscal Year | 4,157 | 274 |
Five Years before Current Fiscal Year | 14,146 | 11,226 |
Revolving Loans Amortized Cost Basis | 1,760 | 4,733 |
Total | 25,820 | 26,559 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 226,622 | 166,962 |
Before Current Fiscal Year | 162,080 | 233,152 |
Two Years before Current Fiscal Year | 170,733 | 350,814 |
Three Years before Current Fiscal Year | 328,189 | 221,149 |
Four Years before Current Fiscal Year | 204,119 | 290,370 |
Five Years before Current Fiscal Year | 528,479 | 297,712 |
Revolving Loans Amortized Cost Basis | 54,992 | 38,820 |
Total | 1,675,214 | 1,598,979 |
Commercial real estate | Non-owner occupied | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 226,622 | 166,962 |
Before Current Fiscal Year | 162,080 | 229,442 |
Two Years before Current Fiscal Year | 166,597 | 342,640 |
Three Years before Current Fiscal Year | 300,073 | 221,149 |
Four Years before Current Fiscal Year | 202,577 | 290,163 |
Five Years before Current Fiscal Year | 505,746 | 272,184 |
Revolving Loans Amortized Cost Basis | 54,947 | 38,820 |
Total | 1,618,642 | 1,561,360 |
Commercial real estate | Non-owner occupied | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 0 | 0 |
Before Current Fiscal Year | 0 | 1,500 |
Two Years before Current Fiscal Year | 0 | 6,672 |
Three Years before Current Fiscal Year | 3,500 | 0 |
Four Years before Current Fiscal Year | 0 | 207 |
Five Years before Current Fiscal Year | 8,278 | 8,445 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Total | 11,778 | 16,824 |
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 | 4,136 | 1,502 |
Three Years before Current Fiscal Year | 24,616 | 0 |
Four Years before Current Fiscal Year | 1,542 | 0 |
Five Years before Current Fiscal Year | 14,455 | 17,083 |
Revolving Loans Amortized Cost Basis | 45 | 0 |
Total | 44,794 | 20,795 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 56,760 | 90,057 |
Before Current Fiscal Year | 66,117 | 54,201 |
Two Years before Current Fiscal Year | 45,080 | 42,747 |
Three Years before Current Fiscal Year | 37,147 | 28,830 |
Four Years before Current Fiscal Year | 24,658 | 44,964 |
Five Years before Current Fiscal Year | 79,789 | 41,345 |
Revolving Loans Amortized Cost Basis | 14,913 | 15,496 |
Total | 324,464 | 317,640 |
Consumer and other | Pass | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 56,647 | 89,625 |
Before Current Fiscal Year | 65,973 | 52,839 |
Two Years before Current Fiscal Year | 44,844 | 39,725 |
Three Years before Current Fiscal Year | 36,124 | 27,201 |
Four Years before Current Fiscal Year | 23,731 | 43,503 |
Five Years before Current Fiscal Year | 76,402 | 37,673 |
Revolving Loans Amortized Cost Basis | 14,476 | 14,817 |
Total | 318,197 | 305,383 |
Consumer and other | Special Mention | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 75 | 281 |
Before Current Fiscal Year | 0 | 797 |
Two Years before Current Fiscal Year | 14 | 1,588 |
Three Years before Current Fiscal Year | 0 | 468 |
Four Years before Current Fiscal Year | 1 | 526 |
Five Years before Current Fiscal Year | 522 | 1,364 |
Revolving Loans Amortized Cost Basis | 0 | 11 |
Total | 612 | 5,035 |
Consumer and other | Classified | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Current Fiscal Year | 38 | 151 |
Before Current Fiscal Year | 144 | 565 |
Two Years before Current Fiscal Year | 222 | 1,434 |
Three Years before Current Fiscal Year | 1,023 | 1,161 |
Four Years before Current Fiscal Year | 926 | 935 |
Five Years before Current Fiscal Year | 2,865 | 2,308 |
Revolving Loans Amortized Cost Basis | 437 | 668 |
Total | $ 5,655 | $ 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 7,198,954 | $ 7,082,959 |
90 days or more and accruing interest | 9,098 | 13,696 |
Non-accrual loans | 50,429 | 50,760 |
30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 10,746 | 26,995 |
Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,128,681 | 6,991,508 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,238,940 | 1,346,122 |
90 days or more and accruing interest | 104 | 330 |
Non-accrual loans | 15,538 | 16,005 |
Commercial and industrial | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 757 | 3,297 |
Commercial and industrial | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,222,541 | 1,326,490 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,145,165 | 1,222,220 |
90 days or more and accruing interest | 487 | 573 |
Non-accrual loans | 5,303 | 4,053 |
Construction | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,023 | 7,607 |
Construction | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,138,352 | 1,209,987 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,126,623 | 1,089,270 |
90 days or more and accruing interest | 8,002 | 10,470 |
Non-accrual loans | 5,094 | 5,923 |
Residential real estate | 1-to-4 family mortgage | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,753 | 7,058 |
Residential real estate | 1-to-4 family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,109,774 | 1,065,819 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 401,343 | 408,211 |
90 days or more and accruing interest | 48 | 239 |
Non-accrual loans | 1,189 | 1,757 |
Residential real estate | Residential line of credit | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 716 | 3,551 |
Residential real estate | Residential line of credit | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 399,390 | 402,664 |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 363,600 | 175,676 |
90 days or more and accruing interest | 0 | 57 |
Non-accrual loans | 53 | 0 |
Residential real estate | Multi-family mortgage | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Residential real estate | Multi-family mortgage | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 363,547 | 175,619 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 923,605 | 924,841 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 8,074 | 7,948 |
Commercial real estate | Owner occupied | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,100 | 98 |
Commercial real estate | Owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 914,431 | 916,795 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,675,214 | 1,598,979 |
90 days or more and accruing interest | 0 | 0 |
Non-accrual loans | 12,016 | 12,471 |
Commercial real estate | Non-owner occupied | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 737 | 915 |
Commercial real estate | Non-owner occupied | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,662,461 | 1,585,593 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 324,464 | 317,640 |
90 days or more and accruing interest | 457 | 2,027 |
Non-accrual loans | 3,162 | 2,603 |
Consumer and other | 30-89 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,660 | 4,469 |
Consumer and other | Loans current on payments and accruing interest | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 318,185 | $ 308,541 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | $ 34,808 | $ 32,661 |
Non-accrual with related allowance | 15,621 | 18,099 |
Related allowance | 1,318 | 2,550 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 14,401 | 13,960 |
Non-accrual with related allowance | 1,137 | 2,045 |
Related allowance | 119 | 383 |
Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 4,254 | 3,061 |
Non-accrual with related allowance | 1,049 | 992 |
Related allowance | 151 | 131 |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 1,493 | 3,048 |
Non-accrual with related allowance | 3,601 | 2,875 |
Related allowance | 91 | 84 |
Residential real estate | Residential line of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 830 | 854 |
Non-accrual with related allowance | 359 | 903 |
Related allowance | 8 | 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 | 53 | 0 |
Related allowance | 8 | 0 |
Commercial real estate | Owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 7,412 | 7,172 |
Non-accrual with related allowance | 662 | 776 |
Related allowance | 43 | 63 |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 6,418 | 4,566 |
Non-accrual with related allowance | 5,598 | 7,905 |
Related allowance | 736 | 1,711 |
Consumer and other | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual with no related allowance | 0 | 0 |
Non-accrual with related allowance | 3,162 | 2,603 |
Related allowance | $ 162 | $ 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | $ 627 | $ 205 | $ 1,012 | $ 432 |
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 219 | 17 | 333 | 169 |
Construction | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 16 | 6 | 30 | 33 |
Residential real estate | 1-to-4 family mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 67 | 6 | 85 | 13 |
Residential real estate | Residential line of credit | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 27 | 0 | 45 | 1 |
Residential real estate | Multi-family mortgage | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 1 | 0 | 2 | 0 |
Commercial real estate | Owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 101 | 43 | 232 | 64 |
Commercial real estate | Non-owner occupied | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | 141 | 109 | 230 | 128 |
Consumer and other | ||||
Financing Receivable, Impaired [Line Items] | ||||
Interest income recognized on non-accrual loans | $ 55 | $ 24 | $ 55 | $ 24 |
Loans and allowance for cred_12
Loans and allowance for credit losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 11 | 3 | 13 | 4 |
Pre-modification outstanding recorded investment | $ 17,427 | $ 1,954 | $ 29,531 | $ 2,018 |
Post-modification outstanding recorded investment | 17,427 | 1,954 | 29,531 | 2,018 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 4 | 1 | 5 | 1 |
Pre-modification outstanding recorded investment | $ 13,055 | $ 1,153 | $ 13,162 | $ 1,153 |
Post-modification outstanding recorded investment | 13,055 | 1,153 | 13,162 | 1,153 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate | Owner occupied | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 4 | 1 | 4 | 1 |
Pre-modification outstanding recorded investment | $ 3,550 | $ 788 | $ 3,550 | $ 788 |
Post-modification outstanding recorded investment | 3,550 | 788 | 3,550 | 788 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 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 | 2 | 1 | 2 | 2 |
Pre-modification outstanding recorded investment | $ 811 | $ 13 | $ 811 | $ 77 |
Post-modification outstanding recorded investment | 811 | 13 | 811 | 77 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 | $ 0 |
Residential real estate | Residential line of credit | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans | loan | 1 | 1 | ||
Pre-modification outstanding recorded investment | $ 11 | $ 11 | ||
Post-modification outstanding recorded investment | 11 | 11 | ||
Charge offs and specific reserves | $ 0 | $ 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 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | $ 144,663 | $ 157,954 | $ 170,389 | $ 113,129 | $ 89,141 | $ 31,139 |
Individually assessed allowance for credit loss | 943 | 2,039 | ||||
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 13,791 | 14,643 | 14,748 | 8,878 | 10,881 | 4,805 |
Individually assessed allowance for credit loss | 105 | 373 | ||||
Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 32,838 | 38,622 | 58,477 | 35,599 | 22,842 | 10,194 |
Individually assessed allowance for credit loss | 131 | 95 | ||||
Residential real estate | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 19,672 | 19,572 | 19,220 | 12,463 | 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 | 6,716 | 9,268 | 10,534 | 6,811 | 6,213 | 752 |
Individually assessed allowance for credit loss | 8 | 9 | ||||
Commercial real estate | Owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 4,707 | 3,609 | 4,849 | 7,420 | 9,047 | 4,109 |
Individually assessed allowance for credit loss | 23 | 30 | ||||
Commercial real estate | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 42,856 | $ 50,179 | 44,147 | $ 30,444 | $ 18,005 | $ 4,621 |
Individually assessed allowance for credit loss | 676 | 1,531 | ||||
Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 31,214 | 16,832 | ||||
Real Estate | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 696 | 0 | ||||
Real Estate | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 5,993 | 3,877 | ||||
Real Estate | Residential real estate | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,615 | 226 | ||||
Real Estate | Residential real estate | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 1,241 | 1,174 | ||||
Real Estate | Commercial real estate | Owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 10,045 | 3,391 | ||||
Real Estate | Commercial real estate | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 11,624 | 8,164 | ||||
Financial Assets and Equipment | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 14,524 | 1,728 | ||||
Financial Assets and Equipment | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Type of Collateral | 14,524 | 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 | 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 | ||||
Individually assessed allowance for credit loss | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 839 | 1,687 | ||||
Individually assessed allowance for credit loss | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 1 | 117 | ||||
Individually assessed allowance for credit loss | Construction | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 131 | 0 | ||||
Individually assessed allowance for credit loss | Residential real estate | 1-to-4 family mortgage | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 0 | 0 | ||||
Individually assessed allowance for credit loss | Residential real estate | Residential line of credit | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 8 | 9 | ||||
Individually assessed allowance for credit loss | Commercial real estate | Owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | 23 | 30 | ||||
Individually assessed allowance for credit loss | Commercial real estate | Non-owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually assessed allowance for credit loss | $ 676 | $ 1,531 |
Loans and allowance for cred_14
Loans and allowance for credit losses - Deferrals Program (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 73,882 | $ 202,517 |
% of Loans | 1.00% | 2.90% |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 13 | $ 7,118 |
% of Loans | 0.00% | 0.50% |
Construction | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 0 | $ 1,918 |
% of Loans | 0.00% | 0.20% |
Residential real estate | 1-to-4 family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 3,194 | $ 19,201 |
% of Loans | 0.30% | 1.80% |
Residential real estate | Residential line of credit | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 0 | $ 204 |
% of Loans | 0.00% | 0.00% |
Residential real estate | Multi-family mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 0 | $ 3,305 |
% of Loans | 0.00% | 1.90% |
Commercial real estate | Owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 871 | $ 19,815 |
% of Loans | 0.10% | 2.10% |
Commercial real estate | Non-owner occupied | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 69,587 | $ 139,590 |
% of Loans | 4.20% | 8.70% |
Consumer and other | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Outstanding loans balance | $ 217 | $ 11,366 |
% of Loans | 0.10% | 3.60% |
Other real estate owned - Summa
Other real estate owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 11,177 | $ 17,072 | $ 12,111 | $ 18,939 |
Transfers from loans | 3,201 | 641 | 4,596 | 1,006 |
Transfers to premises and equipment | 0 | 0 | 0 | (841) |
Proceeds from sale of other real estate owned | (2,166) | (2,708) | (4,661) | (4,150) |
Gain on sale of other real estate owned | 272 | 170 | 1,100 | 345 |
Loans provided for sales of other real estate owned | (203) | 0 | (533) | 0 |
Write-downs and partial liquidations | (295) | (84) | (627) | (208) |
Balance at end of period | $ 11,986 | $ 15,091 | $ 11,986 | $ 15,091 |
Other real estate owned - Narra
Other real estate owned - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Real Estate Properties [Line Items] | ||
Other real estate owned included excess land and facilities held for sale | $ 5,498 | $ 5,703 |
Residential Real Estate Properties | ||
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | 774 | 1,890 |
Total foreclosure proceedings in process | $ 31 | $ 167 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)branchlease_renewal_optionlease | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)branchlease_renewal_optionlease | Jun. 30, 2020USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||||||
Lessee, number of operating leases | lease | 58 | 58 | ||||
Lessee, number of finance leases | branch | 1 | 1 | ||||
Lessee, number of total operating leases, noncurrent | lease | 44 | 44 | ||||
Lessee, number of total finance leases, noncurrent | branch | 1 | 1 | ||||
Lessee, operating and finance lease, number of options to renew | lease_renewal_option | 1 | 1 | ||||
Operating lease right-of-use assets | $ 45,423 | $ 45,423 | $ 49,537 | |||
Operating lease liabilities | 50,396 | 50,396 | $ 55,187 | |||
Gain on lease modifications and terminations | $ 787 | $ 0 | $ 787 | $ 0 | ||
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating leases | $ 45,423 | $ 49,537 |
Finance leases | 1,533 | 1,588 |
Total right-of-use assets | 46,956 | 51,125 |
Operating leases | 50,396 | 55,187 |
Finance leases | 1,555 | 1,598 |
Total lease liabilities | $ 51,951 | $ 56,785 |
Weighted average remaining lease term (in years) - operating | 12 years 3 months 18 days | 12 years 2 months 12 days |
Weighted average remaining lease term (in years) - finance | 13 years 10 months 24 days | 14 years 4 months 24 days |
Weighted average discount rate - operating | 2.72% | 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Operating lease, amortization of right-of-use asset | $ 2,171 | $ 1,389 | $ 4,110 | $ 2,678 |
Operating lease, short-term lease cost | 102 | 30 | 189 | 166 |
Operating lease, variable lease cost | 241 | 160 | 476 | 298 |
Operating lease, gain on lease modifications and terminations | (787) | 0 | (787) | 0 |
Finance lease, interest on lease liabilities | 8 | 0 | 14 | 0 |
Finance lease, amortization of right-of-use asset | 27 | 0 | 55 | 0 |
Total lease cost | $ 1,762 | $ 1,579 | $ 4,057 | $ 3,142 |
Leases - Maturity Analysis of O
Leases - Maturity Analysis of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Operating Leases | ||
June 30, 2022 | $ 7,734 | |
June 30, 2023 | 6,759 | |
June 30, 2024 | 5,696 | |
June 30, 2025 | 5,002 | |
June 30, 2026 | 4,675 | |
Thereafter | 30,976 | |
Total undiscounted future minimum lease payments | 60,842 | |
Less: imputed interest | (10,446) | |
Operating leases | 50,396 | $ 55,187 |
Finance Lease | ||
June 30, 2022 | 115 | |
June 30, 2023 | 117 | |
June 30, 2024 | 119 | |
June 30, 2025 | 121 | |
June 30, 2026 | 122 | |
Thereafter | 1,164 | |
Total undiscounted future minimum lease payments | 1,758 | |
Less: imputed interest | (203) | |
Finance leases | $ 1,555 | $ 1,598 |
Mortgage servicing rights - Cha
Mortgage servicing rights - Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Carrying value at beginning of period | $ 104,192 | $ 62,581 | $ 79,997 | $ 75,521 |
Capitalization | 10,573 | 12,267 | 22,167 | 20,063 |
Change in fair value: | ||||
Due to pay-offs/pay-downs | (7,865) | (7,277) | (17,186) | (11,920) |
Due to change in valuation inputs or assumptions | (5,285) | (7,063) | 16,637 | (23,156) |
Carrying value at end of period | $ 101,615 | $ 60,508 | $ 101,615 | $ 60,508 |
Mortgage servicing rights - Ser
Mortgage servicing rights - Servicing Income and Expense Included in Mortgage Banking Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Servicing income: | ||||
Servicing income | $ 6,788 | $ 5,113 | $ 13,719 | $ 10,131 |
Change in fair value of mortgage servicing rights | (13,150) | (14,340) | (549) | (35,076) |
Change in fair value of derivative hedging instruments | 10,005 | 1,102 | (7,859) | 15,970 |
Servicing income | 3,643 | (8,125) | 5,311 | (8,975) |
Servicing expenses | 2,693 | 1,992 | 5,225 | 3,393 |
Net servicing income (loss) | $ 950 | $ (10,117) | $ 86 | $ (12,368) |
Mortgage servicing rights - Dat
Mortgage servicing rights - Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 10,527,708 | $ 9,787,657 |
Weighted-average prepayment speed (CPR) | 11.07% | 14.07% |
Estimated impact on fair value of a 10% increase | $ (4,840) | $ (4,493) |
Estimated impact on fair value of a 20% increase | $ (9,311) | $ (8,599) |
Discount rate | 11.05% | 11.49% |
Estimated impact on fair value of a 100 bp increase | $ (3,981) | $ (2,942) |
Estimated impact on fair value of a 200 bp increase | $ (7,700) | $ (5,674) |
Weighted-average coupon interest rate | 3.35% | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Transfers and Servicing of Financial Assets [Abstract] | ||
Mortgage escrow deposit | $ 166,126 | $ 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 9,541 | $ 15,747 | $ 15,490 | $ 23,915 |
Deferred | 3,899 | (8,292) | 13,538 | (16,380) |
Total | $ 13,440 | $ 7,455 | $ 29,028 | $ 7,535 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Federal taxes calculated at statutory rate, amount | $ 11,916 | $ 6,369 | $ 26,293 | $ 6,542 |
Amount increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 1,879 | 1,298 | 3,629 | 1,166 |
(Benefit) expense from equity based compensation | (124) | 22 | (345) | 161 |
Municipal interest income, net of interest disallowance | (419) | (310) | (843) | (574) |
Bank owned life insurance | (82) | (17) | (166) | (35) |
Merger and offering costs | 127 | 32 | 127 | 163 |
Section 162(m) limitation | 21 | 0 | 248 | 0 |
Other | 122 | 61 | 85 | 112 |
Total | $ 13,440 | $ 7,455 | $ 29,028 | $ 7,535 |
Federal taxes calculated at statutory rate, percent | 21.00% | 21.00% | 21.00% | 21.00% |
Percentage increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 3.30% | 4.30% | 2.90% | 3.70% |
(Benefit) expense from equity based compensation | (0.20%) | 0.10% | (0.30%) | 0.50% |
Municipal interest income, net of interest disallowance | (0.70%) | (1.00%) | (0.70%) | (1.80%) |
Bank owned life insurance | (0.10%) | (0.10%) | (0.10%) | (0.10%) |
Merger and offering costs | 0.20% | 0.10% | 0.10% | 0.50% |
Section 162(m) limitation | 0 | 0 | 0.002 | 0 |
Other | 0.20% | 0.20% | 0.10% | 0.40% |
Total | 23.70% | 24.60% | 23.20% | 24.20% |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for credit losses | $ 40,878 | $ 48,409 |
Operating lease liabilities | 13,067 | 14,496 |
Federal net operating loss | 1,753 | 1,753 |
Deferred compensation | 8,572 | 8,872 |
Unrealized loss on cash flow hedges | 364 | 499 |
Other | 19,817 | 19,101 |
Subtotal | 84,451 | 93,130 |
Deferred tax liabilities: | ||
FHLB stock dividends | (561) | (561) |
Operating leases - right of use assets | (11,831) | (13,197) |
Depreciation | (7,088) | (7,491) |
Amortization of core deposit intangibles | (349) | (684) |
Unrealized gain on equity securities | (3,877) | (17) |
Unrealized gain on debt securities | (5,987) | (13,027) |
Mortgage servicing rights | (26,435) | (20,803) |
Goodwill | (12,522) | (11,301) |
Other | (9,828) | (9,653) |
Subtotal | (78,478) | (76,734) |
Net deferred tax assets | $ 5,973 | $ 16,396 |
Commitments and contingencies -
Commitments and contingencies - Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 2,598,489 | $ 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 | 2,529,697 | 2,719,996 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 68,792 | $ 67,598 |
Commitments and contingencies_2
Commitments and contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Floating interest rate loan commitments | $ 1,820,000 | $ 1,650,000 | |||
Total principal amount of loans repurchased or indemnified | $ 761 | $ 1,568 | $ 1,469 | $ 4,367 |
Commitments and contingencies_3
Commitments and contingencies - Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 157,954 | $ 89,141 | $ 170,389 | $ 31,139 |
Balance at end of period | 144,663 | 113,129 | 144,663 | 113,129 |
Unfunded Commitments | ||||
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | 14,156 | 4,618 | 16,378 | 0 |
Impact of CECL adoption on provision for credit losses on unfunded commitments | 0 | 0 | 0 | 2,947 |
Increase in provision for credit losses from unfunded commitments acquired in business combination | 0 | 0 | 0 | 70 |
Provision for credit losses on unfunded commitments | (954) | 1,882 | (3,176) | 3,483 |
Balance at end of period | $ 13,202 | $ 6,500 | $ 13,202 | $ 6,500 |
Commitments and contingencies_4
Commitments and contingencies - Activity in the Repurchase Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 6,284 | $ 3,829 | $ 5,928 | $ 3,529 |
Provision for loan repurchases or indemnifications | (706) | 855 | (266) | 1,227 |
Losses on loans repurchased or indemnified | (89) | (83) | (173) | (155) |
Balance at end of period | $ 5,489 | $ 4,601 | $ 5,489 | $ 4,601 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Jul. 31, 2017USD ($)derivative | Jun. 30, 2021USD ($)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 | $ 66,557,000 | 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 of net liability balances of interest rate swaps | $ 1,391,000 | $ 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 | Jun. 30, 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 | $ 3,112,743 | $ 3,532,227 | |
Asset | 42,182 | 68,938 | |
Liability | 27,569 | 46,333 | |
Not designated as hedging | Interest rate contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 650,268 | 606,878 | |
Asset | 26,355 | 34,547 | |
Liability | 26,168 | 34,317 | |
Not designated as hedging | Forward commitments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,172,717 | 1,358,328 | |
Asset | 0 | 0 | |
Liability | 1,401 | 11,633 | |
Not designated as hedging | Interest rate-lock commitments | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 787,258 | 1,191,621 | |
Asset | 13,120 | 34,391 | |
Liability | 0 | 0 | |
Not designated as hedging | Futures contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 502,500 | 375,400 | |
Asset | 2,707 | 0 | |
Liability | 0 | 383 | |
Designated as hedging | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 30,000 | 30,000 | |
Asset | 0 | 0 | |
Liability | $ 1,391 | $ 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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivatives, Fair Value [Line Items] | ||||
Net tax expenses on reclassification adjustment for gain on hedging activities | $ 0 | $ 52 | $ 0 | $ 104 |
Net tax expenses (benefits) recognized on gain (loss) on hedging activities | 23 | (40) | 135 | (443) |
Amount of gain (loss) recognized in other comprehensive income | 67 | (112) | 383 | (1,257) |
Not designated as hedging | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (9,925) | (3,821) | (4,441) | 1,095 |
Not designated as hedging | Interest rate-lock commitments | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 171 | 9,541 | (21,271) | 30,003 |
Not designated as hedging | Forward commitments | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (19,200) | (13,993) | 24,058 | (40,450) |
Not designated as hedging | Futures contracts | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 9,104 | 631 | (7,228) | 11,542 |
Designated as hedging | ||||
Derivatives, Fair Value [Line Items] | ||||
Total | (143) | 86 | (280) | 221 |
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 | 148 | 0 | 295 |
Loss included in interest expense on borrowings | $ (143) | $ (62) | $ (280) | $ (74) |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Offsetting Derivative Assets | ||
Gross amounts recognized | $ 4,466,000 | $ 3,863,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 4,466,000 | 3,863,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 3,146,000 | 857,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 1,320,000 | 3,006,000 |
Offsetting Derivative Liabilities | ||
Gross amounts recognized | 23,536,000 | 34,051,000 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 23,536,000 | 34,051,000 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 3,146,000 | 857,000 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 20,390,000 | 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 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Financial assets: | |||
Net loans | $ 7,054,291 | $ 6,912,570 | |
Loans held for sale | 821,529 | $ 899,173 | |
Interest receivable | 42,083 | 43,603 | |
Carrying amount | |||
Financial assets: | |||
Cash and cash equivalents | 1,717,097 | 1,317,898 | |
Investment securities | 1,409,175 | 1,176,991 | |
Net loans | 7,054,291 | 6,912,570 | |
Loans held for sale | 821,529 | 899,173 | |
Interest receivable | 42,083 | 43,603 | |
Mortgage servicing rights | 101,615 | 79,997 | |
Derivatives | 42,182 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,921,516 | 8,020,783 | |
Deposits, With stated maturities | 1,282,440 | 1,437,254 | |
Securities sold under agreement to repurchase and federal funds sold | 33,056 | 32,199 | |
Subordinated debt | 149,351 | 189,527 | |
Other borrowings | 1,555 | 16,598 | |
Interest payable | 4,136 | 6,772 | |
Derivatives | 28,960 | 48,242 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 1,717,097 | 1,317,898 | |
Investment securities | 1,409,175 | 1,176,991 | |
Net loans | 7,199,111 | 7,058,693 | |
Loans held for sale | 821,529 | 899,173 | |
Interest receivable | 42,083 | 43,603 | |
Mortgage servicing rights | 101,615 | 79,997 | |
Derivatives | 42,182 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,921,516 | 8,020,783 | |
Deposits, With stated maturities | 1,292,720 | 1,446,605 | |
Securities sold under agreement to repurchase and federal funds sold | 33,056 | 32,199 | |
Subordinated debt | 153,631 | 192,149 | |
Other borrowings | 1,555 | 16,598 | |
Interest payable | 4,136 | 6,772 | |
Derivatives | 28,960 | 48,242 | |
Fair Value | Level 1 | |||
Financial assets: | |||
Cash and cash equivalents | 1,717,097 | 1,317,898 | |
Investment securities | 0 | 0 | |
Net loans | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Interest receivable | 72 | 33 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 0 | 0 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 8,921,516 | 8,020,783 | |
Deposits, With stated maturities | 0 | 0 | |
Securities sold under agreement to repurchase and federal funds sold | 33,056 | 32,199 | |
Subordinated debt | 0 | 0 | |
Other borrowings | 0 | 0 | |
Interest payable | 169 | 327 | |
Derivatives | 0 | 0 | |
Fair Value | Level 2 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 1,409,175 | 1,176,991 | |
Net loans | 0 | 0 | |
Loans held for sale | 697,407 | 683,770 | |
Interest receivable | 6,119 | 5,254 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 42,182 | 68,938 | |
Financial liabilities: | |||
Deposits, Without stated maturities | 0 | 0 | |
Deposits, With stated maturities | 1,292,720 | 1,446,605 | |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 | |
Subordinated debt | 0 | 0 | |
Other borrowings | 1,555 | 16,598 | |
Interest payable | 2,442 | 4,210 | |
Derivatives | 28,960 | 48,242 | |
Fair Value | Level 3 | |||
Financial assets: | |||
Cash and cash equivalents | 0 | 0 | |
Investment securities | 0 | 0 | |
Net loans | 7,199,111 | 7,058,693 | |
Loans held for sale | 124,122 | 215,403 | |
Interest receivable | 35,892 | 38,316 | |
Mortgage servicing rights | 101,615 | 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 | 153,631 | 192,149 | |
Other borrowings | 0 | 0 | |
Interest payable | 1,525 | 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 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Financial assets: | |||
Available-for-sale debt securities, at fair value | $ 1,404,372 | $ 1,172,400 | |
Equity securities, at fair value | 4,803 | 4,591 | |
Loans held for sale | 821,529 | $ 899,173 | |
Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 1,035,003 | 773,336 | |
Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 15,161 | 21,588 | |
Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 332,883 | 356,329 | |
Treasury securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 10,534 | 16,628 | |
Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,536 | 2,516 | |
Recurring Basis | |||
Financial assets: | |||
Equity securities, at fair value | 4,803 | 4,591 | |
Total securities | 1,409,175 | 1,176,991 | |
Loans held for sale | 821,529 | 899,173 | |
Mortgage servicing rights | 101,615 | 79,997 | |
Derivatives | 42,182 | 68,938 | |
Financial liabilities: | |||
Derivatives | 28,960 | 48,242 | |
Recurring Basis | U.S. government agency securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 8,255 | 2,003 | |
Recurring Basis | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 1,035,003 | 773,336 | |
Recurring Basis | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 15,161 | 21,588 | |
Recurring Basis | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 332,883 | ||
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 | 10,534 | 16,628 | |
Recurring Basis | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,536 | 2,516 | |
Recurring Basis | Quoted prices in active markets for identical assets (liabilities) (level 1) | |||
Financial assets: | |||
Equity securities, at fair value | 0 | 0 | |
Total 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 | 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 | 4,803 | 4,591 | |
Total securities | 1,409,175 | 1,176,991 | |
Loans held for sale | 697,407 | 683,770 | |
Mortgage servicing rights | 0 | 0 | |
Derivatives | 42,182 | 68,938 | |
Financial liabilities: | |||
Derivatives | 28,960 | 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 | 8,255 | 2,003 | |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - residential | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 1,035,003 | 773,336 | |
Recurring Basis | Significant other observable inputs (level 2) | Mortgage-backed securities - commercial | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 15,161 | 21,588 | |
Recurring Basis | Significant other observable inputs (level 2) | Municipal securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 332,883 | ||
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 | 10,534 | 16,628 | |
Recurring Basis | Significant other observable inputs (level 2) | Corporate securities | |||
Financial assets: | |||
Available-for-sale debt securities, at fair value | 2,536 | 2,516 | |
Recurring Basis | Significant unobservable inputs (level 3) | |||
Financial assets: | |||
Equity securities, at fair value | 0 | 0 | |
Total securities | 0 | 0 | |
Loans held for sale | 124,122 | 215,403 | |
Mortgage servicing rights | 101,615 | 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 | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Other real estate owned | $ 6,927 | $ 6,662 |
Collateral dependent loans | 45,738 | 18,560 |
Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 15,220 | 1,728 |
Construction | ||
Financial assets: | ||
Collateral dependent loans | 5,993 | 3,877 |
Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 1,615 | 226 |
Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 1,241 | 1,174 |
Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 10,045 | 3,391 |
Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 11,624 | 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) | 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) | 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 | 6,927 | 6,662 |
Collateral dependent loans | 45,738 | 18,560 |
Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 15,220 | 1,728 |
Significant unobservable inputs (level 3) | Construction | ||
Financial assets: | ||
Collateral dependent loans | 5,993 | 3,877 |
Significant unobservable inputs (level 3) | Residential real estate | 1-to-4 family mortgage | ||
Financial assets: | ||
Collateral dependent loans | 1,615 | 226 |
Significant unobservable inputs (level 3) | Residential real estate | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 1,241 | 1,174 |
Significant unobservable inputs (level 3) | Commercial real estate | Owner occupied | ||
Financial assets: | ||
Collateral dependent loans | 10,045 | 3,391 |
Significant unobservable inputs (level 3) | Commercial real estate | Non-owner occupied | ||
Financial assets: | ||
Collateral dependent loans | $ 11,624 | $ 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 | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | $ 45,738 | $ 18,560 |
Other real estate owned | 6,927 | 6,662 |
Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 45,738 | 18,560 |
Other real estate owned | $ 6,927 | $ 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 | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 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 gains (losses) from fair value changes of mortgage loans | $ 9,730 | $ 8,048 | $ (10,986) | $ 13,866 | |
GNMA | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Delinquent GNMA loans that had been previously sold | $ 120,880 | $ 120,880 | $ 151,184 |
Fair value of financial instr_8
Fair value of financial instruments - Loans Held for Sale at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | $ 821,529 | $ 899,173 | |
Commercial and industrial | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 124,122 | 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 | 697,407 | $ 683,770 | |
Recurring Basis | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total loans held for sale | 821,529 | $ 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 | 124,122 | 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 | $ 697,407 | $ 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 - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Carrying amount | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | $ 197,490 | $ 239,063 |
Pay-downs and pay-offs | (52,226) | (91,792) |
Write-offs to discount | (9,292) | (11,299) |
Changes in valuation included in other noninterest income | 0 | 0 |
Carrying value at end of period | 135,972 | 135,972 |
Fair Value Discount | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | (22,506) | (23,660) |
Pay-downs and pay-offs | 0 | 0 |
Write-offs to discount | 9,292 | 11,299 |
Changes in valuation included in other noninterest income | 1,364 | 511 |
Carrying value at end of period | (11,850) | (11,850) |
Fair Value | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Carrying value at beginning of period | 174,984 | 215,403 |
Pay-downs and pay-offs | (52,226) | (91,792) |
Write-offs to discount | 0 | 0 |
Changes in valuation included in other noninterest income | 1,364 | 511 |
Carrying value at end of period | $ 124,122 | $ 124,122 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 697,407 | $ 683,770 |
Nonaccrual loans | 5,844 | 6,406 |
Fair Value | Past due 90 days or more | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 83 | |
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 | 118,278 | 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 | 676,510 | 651,887 |
Nonaccrual loans | 11,126 | 12,033 |
Aggregate Unpaid Principal Balance | Past due 90 days or more | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 163 | |
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 | 124,846 | 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 | 20,897 | 31,883 |
Nonaccrual loans | (5,282) | (5,627) |
Difference | Past due 90 days or more | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | (80) | |
Difference | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ (6,568) | $ (17,953) |
Segment reporting - Narrative (
Segment reporting - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)channelsegment | Jun. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of distinct reportable segments | segment | 2 | |||
Number of distinct delivery channels | channel | 2 | |||
Total net contribution reclassification to (from) segment realignment | $ 56,742 | $ 30,328 | $ 125,204 | $ 31,153 |
Warehouse line of credit interest rate | 3.25% | 3.25% | ||
Mortgage | ||||
Segment Reporting Information [Line Items] | ||||
Total net contribution reclassification to (from) segment realignment | 542 | $ 33,616 | 16,890 | $ 41,635 |
Interest paid | $ 6,110 | 3,335 | $ 11,510 | 5,710 |
Mortgage | Prime Interest Rate | ||||
Segment Reporting Information [Line Items] | ||||
Warehouse line of credit interest rate | 3.25% | 3.25% | ||
Banking | ||||
Segment Reporting Information [Line Items] | ||||
Total net contribution reclassification to (from) segment realignment | $ 56,200 | (3,288) | $ 108,314 | (10,482) |
Segment Realignment, Reclassification Adjustment | Mortgage | ||||
Segment Reporting Information [Line Items] | ||||
Total net contribution reclassification to (from) segment realignment | 5,398 | 8,874 | ||
Segment Realignment, Reclassification Adjustment | Banking | ||||
Segment Reporting Information [Line Items] | ||||
Total net contribution reclassification to (from) segment realignment | $ (5,398) | $ (8,874) |
Segment reporting - Segment Fin
Segment reporting - Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 86,563 | $ 55,337 | $ 169,139 | $ 111,586 | |
Provision for credit losses | (13,839) | 25,921 | (27,693) | 55,486 | |
Mortgage banking income | 38,644 | 85,406 | 99,239 | 124,019 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,145) | (13,238) | (8,408) | (19,106) | |
Other noninterest income | 13,801 | 9,323 | 25,199 | 19,278 | |
Depreciation and amortization | 1,962 | 1,750 | 4,148 | 3,492 | |
Amortization of intangibles | 1,394 | 1,205 | 2,834 | 2,408 | |
Other noninterest expense | 89,604 | 77,624 | 180,676 | 143,238 | |
Income before income taxes | 56,742 | 30,328 | 125,204 | 31,153 | |
Income tax expense | 13,440 | 7,455 | 29,028 | 7,535 | |
Net income applicable to FB Financial Corporation and noncontrolling interest | 43,302 | 22,873 | 96,176 | 23,618 | |
Net income applicable to noncontrolling interest | 8 | 0 | 8 | 0 | |
Net income applicable to FB Financial Corporation | 43,294 | 22,873 | 96,168 | 23,618 | |
Assets | 11,918,367 | 7,255,536 | 11,918,367 | 7,255,536 | $ 11,207,330 |
Goodwill | 242,561 | 175,441 | 242,561 | 175,441 | $ 242,561 |
Provision (reversal) for credit losses on unfunded commitments | (954) | 1,882 | (3,176) | 3,483 | |
Merger costs | 0 | 1,586 | 0 | 4,636 | |
Banking | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 86,553 | 55,350 | 169,150 | 111,583 | |
Provision for credit losses | (13,839) | 25,921 | (27,693) | 55,486 | |
Mortgage banking income | 0 | 0 | 0 | 0 | |
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | 0 | 0 | |
Other noninterest income | 14,002 | 9,323 | 25,400 | 19,278 | |
Depreciation and amortization | 1,618 | 1,503 | 3,476 | 2,995 | |
Amortization of intangibles | 1,394 | 1,205 | 2,834 | 2,408 | |
Other noninterest expense | 55,182 | 39,332 | 107,619 | 80,454 | |
Income before income taxes | 56,200 | (3,288) | 108,314 | (10,482) | |
Assets | 10,908,107 | 6,632,506 | 10,908,107 | 6,632,506 | |
Goodwill | 242,561 | 175,441 | 242,561 | 175,441 | |
Banking | Farmers National | |||||
Segment Reporting Information [Line Items] | |||||
Merger costs | 1,586 | ||||
Banking | Franklin Financial Network, Inc. | |||||
Segment Reporting Information [Line Items] | |||||
Merger costs | 4,636 | ||||
Mortgage | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 10 | (13) | (11) | 3 | |
Provision for credit losses | 0 | 0 | 0 | 0 | |
Mortgage banking income | 38,644 | 85,406 | 99,239 | 124,019 | |
Change in fair value of mortgage servicing rights, net of hedging | (3,145) | (13,238) | (8,408) | (19,106) | |
Other noninterest income | (201) | 0 | (201) | 0 | |
Depreciation and amortization | 344 | 247 | 672 | 497 | |
Amortization of intangibles | 0 | 0 | 0 | 0 | |
Other noninterest expense | 34,422 | 38,292 | 73,057 | 62,784 | |
Income before income taxes | 542 | 33,616 | 16,890 | 41,635 | |
Assets | 1,010,260 | 623,030 | 1,010,260 | 623,030 | |
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum capital requirements (D
Minimum capital requirements (Details) $ in Thousands | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
FB Financial Corporation | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,383,471 | $ 1,358,897 |
Actual, Ratio | 0.149 | 0.150 |
Minimum Capital adequacy with capital buffer, Amount | $ 974,690 | $ 952,736 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,177,609 | $ 1,090,364 |
Actual, Ratio | 0.127 | 0.120 |
Minimum Capital adequacy with capital buffer, Amount | $ 789,034 | $ 771,262 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,177,609 | $ 1,090,364 |
Actual, Ratio | 0.101 | 0.100 |
Minimum Capital adequacy with capital buffer, Amount | $ 466,866 | $ 435,064 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,147,609 | $ 1,060,364 |
Actual Ratio | 12.40% | 11.70% |
Minimum Capital adequacy with capital buffer, Amount | $ 649,793 | $ 635,157 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
FirstBank | ||
Total Capital (to risk-weighted assets) | ||
Actual, Amount | $ 1,317,759 | $ 1,353,279 |
Actual, Ratio | 0.142 | 0.149 |
Minimum Capital adequacy with capital buffer, Amount | $ 971,072 | $ 951,327 |
Minimum Capital adequacy with capital buffer, Ratio | 0.105 | 0.105 |
To be well capitalized under prompt corrective action provisions, Amount | $ 924,831 | $ 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 | $ 1,131,897 | $ 1,142,548 |
Actual, Ratio | 0.122 | 0.126 |
Minimum Capital adequacy with capital buffer, Amount | $ 786,106 | $ 770,122 |
Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
To be well capitalized under prompt corrective action provisions Amount | $ 739,865 | $ 724,820 |
To be well capitalized under prompt corrective action provisions Ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets) | ||
Actual, Amount | $ 1,131,897 | $ 1,142,548 |
Actual, Ratio | 0.097 | 0.105 |
Minimum Capital adequacy with capital buffer, Amount | $ 465,961 | $ 435,279 |
Minimum Capital adequacy with capital buffer. Ratio | 0.040 | 0.040 |
To be well capitalized under prompt corrective action provisions, Amount | $ 582,451 | $ 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 | $ 1,131,897 | $ 1,142,548 |
Actual Ratio | 12.20% | 12.60% |
Minimum Capital adequacy with capital buffer, Amount | $ 647,382 | $ 634,218 |
Minimum Capital adequacy with capital buffer, Ratio | 0.070 | 0.070 |
To be well capitalized under prompt corrective action provisions, Amount | $ 601,140 | $ 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 | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units Outstanding | ||
Balance at beginning of period (in shares) | 1,047,071,000 | 826,263,000 |
Granted (in shares) | 193,760,000 | 132,605,000 |
Vested (in shares) | (159,114,000) | (132,203,000) |
Forfeited (in shares) | (29,639,000) | (14,826,000) |
Balance at end of period (in shares) | 1,052,078,000 | 811,839,000 |
Weighted Average Grant Date Fair Value | ||
Balance at beginning of period (in dollars per share) | $ 26.06 | $ 23.76 |
Granted (in dollars per share) | 43.06 | 33.92 |
Vested (in dollars per share) | 32.63 | 32.52 |
Forfeited (in dollars per share) | 27.36 | 34.24 |
Balance at end of period (in dollars per share) | $ 27.73 | $ 24.84 |
Stock-based compensation - Narr
Stock-based compensation - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 5,181 | $ 4,233 | |||
Dividends declared not paid on restricted stock units | $ 128 | $ 77 | $ 128 | 77 | |
ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares reserved for issuance (in shares) | 2,357,440 | 2,357,440 | 2,379,006 | ||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of restricted stock units vested and released | $ 828 | 1,048 | $ 5,192 | 4,299 | |
Compensation cost related to nonvested awards | 2,193 | 2,015 | 4,659 | 3,817 | |
Unrecognized compensation cost related to nonvested awards | 16,091 | $ 16,091 | $ 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 | 741 | $ 741 | $ 613 | ||
RSUs | Independent Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 142 | 231 | $ 299 | 378 | |
RSUs | 2016-LTIP Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for issuable (in shares) | 2,158,408 | 2,158,408 | 2,240,434 | ||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 322 | $ 335 | $ 522 | $ 416 | |
Unrecognized compensation cost related to nonvested awards | $ 7,829 | $ 7,829 | |||
Expected weighted-average period to be recognized | 2 years 4 months 24 days | ||||
Core return threshold percentages | 200.00% | ||||
Award vesting, percentage | 140.00% | 102.50% | |||
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 | 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) | 0 | 0 | 21,566,000 | 12,145,000 |
Stock-based compensation - Ch_2
Stock-based compensation - Changes in Performance Stock Units (Details) - PSUs - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units Outstanding | ||
Balance at beginning of period (in shares) | 53,147 | 0 |
Granted (in shares) | 65,304 | 53,147 |
Vested (in shares) | 0 | 0 |
Forfeited or expired (in shares) | (2,319) | 0 |
Balance at end of period (in shares) | 116,132 | 53,147 |
Weighted Average Grant Date Fair Value | ||
Balance at beginning of period (in dollars per share) | $ 36.21 | $ 0 |
Granted (in dollars per share) | 43.20 | 36.21 |
Vested (in dollars per share) | 0 | 0 |
Forfeited (in dollars per share) | 36.73 | 0 |
Balance at end of period (in dollars per share) | $ 40.13 | $ 36.21 |
Related party transactions - Lo
Related party transactions - Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding at January 1, 2021 | $ 24,675 |
New loans and advances | 1,687 |
Change in related party status | (98) |
Repayments | (4,933) |
Loans outstanding at June 30, 2021 | $ 21,331 |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Deposits from related parties | $ 303,900,000 | $ 303,900,000 | $ 245,084,000 | ||
Aviation Time Sharing Agreement | |||||
Related Party Transaction [Line Items] | |||||
Payments to related party | 21,000 | $ 58,000 | 32,000 | $ 91,000 | |
Certain Executive Officers, Certain Management and Directors and Their Associates | Unfunded Loan Commitment | |||||
Related Party Transaction [Line Items] | |||||
Unfunded commitments | 20,465,000 | 20,465,000 | 23,059,000 | ||
Director | |||||
Related Party Transaction [Line Items] | |||||
Unamortized leasehold improvements | 21,000 | 21,000 | $ 53,000 | ||
Operating lease expense | 132,000 | 128,000 | 260,000 | 256,000 | |
Former Majority Shareholder | Registration Right Agreement | |||||
Related Party Transaction [Line Items] | |||||
Share registration expenses | $ 605,000 | $ 0 | $ 605,000 | $ 0 |